10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended September 30, 2024

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to           

Commission file number 001-08359  

NEW JERSEY RESOURCES CORPORATION

(Exact name of registrant as specified in its charter)
New Jersey				22-2376465
(State or other jurisdiction of incorporation or organization)				(I.R.S. Employer Identification Number)
1415 Wyckoff Road,	Wall,	New Jersey	07719	(732)	938‑1000
(Address of principal executive offices)				(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12 (b) of the Act:
Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock ‑ $2.50 Par Value	NJR	New York Stock Exchange
Securities registered pursuant to Section 12 (g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ☒ Yes        ☐ No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. ☐ Yes        ☒ No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    ☒ Yes        ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    

    ☒ Yes        ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b‑2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.              ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by checkmark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.                           ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to § 240.10D-1(b).              ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     ☐ Yes       ☒ No

The aggregate market value of the registrant’s common stock held by non-affiliates was $4,220,553,504 based on the closing price of $42.91 per share on March 31, 2024, as reported on the New York Stock Exchange.

The number of shares outstanding of $2.50 par value common stock as of November 22, 2024 was 99,769,083.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s definitive Proxy Statement for the Annual Meeting of Shareowners (Proxy Statement) to be held on January 21, 2025, are incorporated by reference into Part I and Part III of this report.

New Jersey Resources Corporation

TABLE OF CONTENTS

			Page
Glossary of Terms			1
Information Concerning Forward-Looking Statements			3
PART I
	ITEM 1.	Business	4
		Organizational Structure	4
		Reporting Segments	5
		Natural Gas Distribution	7
		Clean Energy Ventures	10
		Energy Services	10
		Storage and Transportation	12
		Other Business Operations	13
		Home Services and Other	13
		Environment	13
		Human Capital Resources	13
		Information About our Executive Officers	15
	ITEM 1A.	Risk Factors	15
	ITEM 1B.	Unresolved Staff Comments	25
	ITEM 1C.	Cybersecurity	25
	ITEM 2.	Properties	27
	ITEM 3.	Legal Proceedings	28
	ITEM 4.	Mine Safety Disclosures	28
PART II
	ITEM 5.	Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	29
	ITEM 6.	[Reserved]	29
	ITEM 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
	ITEM 7A.	Quantitative and Qualitative Disclosures About Market Risk	58
	ITEM 8.	Financial Statements and Supplementary Data	61
		Management’s Report on Internal Control over Financial Reporting	61
		Report of Independent Registered Public Accounting Firm (PCAOB ID No. 34)	62
		Consolidated Financial Statements	65
		Notes to Consolidated Financial Statements	70
		Note 1. Nature of the Business	70
		Note 2. Summary of Significant Accounting Policies	70
		Note 3. Revenue	81
		Note 4. Regulation	85
		Note 5. Derivative Instruments	90
		Note 6. Fair Value	94
		Note 7. Investments in Equity Investees	96
		Note 8. Earnings Per Share	96
		Note 9. Debt	97
		Note 10. Stock-Based Compensation	100
		Note 11. Employee Benefit Plans	103
		Note 12. Income Taxes	108
		Note 13. Leases	110
		Note 14. Commitments and Contingent Liabilities	113
		Note 15. Reporting Segment and Other Operations Data	114
		Note 16. Related Party Transactions	116
		Note 17. Subsequent Event	117
	ITEM 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	118
	ITEM 9A.	Controls and Procedures	118
	ITEM 9B.	Other Information	118
PART III*
	ITEM 10.	Directors, Executive Officers and Corporate Governance	119
	ITEM 11.	Executive Compensation	119
	ITEM 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	119
	ITEM 13.	Certain Relationships and Related Transactions and Director Independence	119
	ITEM 14.	Principal Accountant Fees and Services	119
PART IV
	ITEM 15.	Exhibits and Financial Statement Schedules	120
		Index to Financial Statement Schedules	121
		Exhibit Index	123
		Signatures	130
* Portions of Item 10 and Items 11-14 are Incorporated by Reference from the Proxy Statement.

i

New Jersey Resources Corporation

GLOSSARY OF KEY TERMS                                                                                                                                                       

Adelphia	Adelphia Gateway, LLC
ADI	Administratively Determined Incentive
AFUDC	Allowance for Funds Used During Construction
AMA	Asset Management Agreement
ARO	Asset Retirement Obligation
ASC	Accounting Standards Codification
ASU	Accounting Standards Update
B	Billion
Bcf	Billion Cubic Feet
BGSS	Basic Gas Supply Service
BPU	New Jersey Board of Public Utilities
CEO	Chief Executive Officer
CIO	Chief Information Officer
CIP	Conservation Incentive Program
Clean Energy Ventures or CEV	Clean Energy Ventures segment
CME	Chicago Mercantile Exchange
CR&R	Commercial Realty & Resources Corp.
CSI	Competitive Solar Incentive
Degree-day	The measure of the variation in the weather based on the extent to which the average daily temperature falls below 65 degrees Fahrenheit
DEI	Diversity, equity and inclusion
DRP	NJR Direct Stock Purchase and Dividend Reinvestment Plan
Dths	Dekatherms
EDECA	Electric Discount and Energy Competition Act
EE	Energy Efficiency
EMP	New Jersey Energy Master Plan
Energy Services or ES	Energy Services segment
Exchange Act	Securities Exchange Act of 1934, as amended
FASB	Financial Accounting Standards Board
FCM	Futures Commission Merchant
FERC	Federal Energy Regulatory Commission
Financial Margin	A non-GAAP financial measure, which represents revenues earned from the sale of natural gas less costs of natural gas sold including any transportation and storage costs, and excludes certain operations and maintenance expense and depreciation and amortization, as well as any accounting impact from the change in the fair value of certain derivative instruments
Fitch	Fitch Ratings Company
FMB	First Mortgage Bond
GAAP	Generally Accepted Accounting Principles of the United States
GWRA	Global Warming Response Act of 2007
HCCTR	Health Care Cost Trend Rate
Home Services and Other or HSO	Home Services and Other Operations
ICE	Intercontinental Exchange
IIP	Infrastructure Investment Program
Inflation Reduction Act	Inflation Reduction Act of 2022
IRS	Internal Revenue Service
ISDA	The International Swaps and Derivatives Association
ITC	Federal Investment Tax Credit
LDCC	Leadership Development and Compensation Committee
Leaf River	Leaf River Energy Center LLC
LNG	Liquefied Natural Gas
M	Million
MGP	Manufactured Gas Plant
MMBtu	Million British Thermal Units
Moody’s	Moody’s Investors Service, Inc.
Mortgage Indenture	The Amended and Restated Indenture of Mortgage, Deed of Trust and Security Agreement between NJNG and U.S. Bank National Association dated as of September 1, 2014, as amended

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New Jersey Resources Corporation

GLOSSARY OF KEY TERMS (cont.)
MW	Megawatts
MWh	Megawatt Hour
NAESB	The North American Energy Standards Board
NAV	Net Asset Value
NFE	Net Financial Earnings
NJCEP	New Jersey’s Clean Energy Program
NJDEP	New Jersey Department of Environmental Protection
NJNG	New Jersey Natural Gas Company or our Natural Gas Distribution segment
NJNG Credit Facility	The $250M unsecured committed credit facility expiring in August 2029
NJR Credit Facility	The $575M unsecured committed credit facility expiring in August 2029
NJR or The Company	New Jersey Resources Company
NJR Retail	NJR Retail Company
NJRCEV	NJR Clean Energy Ventures Corporation
NJRES	NJR Energy Services Company, LLC
NJRHS	NJR Home Services Company
Non-GAAP	Not in accordance with GAAP
NPNS	Normal Purchase/Normal Sale
NYMEX	New York Mercantile Exchange
OCI	Other Comprehensive Income
O&M	Operations and Maintenance Expense
OPEB	Other Postemployment Benefit Plans
PBO	Projected Benefit Obligation
PennEast	PennEast Pipeline Company, LLC
PEP	Pension Equalization Plan
PIM	Pipeline Integrity Management
PPA	Power Purchase Agreement
RAC	Remediation Adjustment Clause
REC	Renewable Energy Certificate
Sarbanes-Oxley	Sarbanes-Oxley Act of 2002
SAVEGREEN	The SAVEGREEN Project®
Savings Plan	Employees’ Retirement Savings Plan
SBC	Societal Benefits Charge
SEC	Securities and Exchange Commission
Securities Act	Securities Act of 1933, as amended
SG&A	Selling, General and Administrative expenses
SREC	Solar Renewable Energy Certificate
S&P	Standard & Poor’s Financial Services, LLC
Steckman Ridge	Collectively, Steckman Ridge GP, LLC and Steckman Ridge, LP
Storage and Transportation or S&T	Storage and Transportation segment
TETCO	Texas Eastern Transmission
TREC	Transition Renewable Energy Certificate
Trustee	U.S. Bank National Association
TSR	Total Shareholder Return
U.S.	The United States of America
Union	International Brotherhood of Electrical Workers Local 1820
USF	Universal Service Fund
Utility Gross Margin	A non-GAAP financial measure, which represents operating revenues less natural gas purchases, sales tax, and regulatory rider expense, and excludes certain operations and maintenance expense and depreciation and amortization

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New Jersey Resources Corporation

INFORMATION CONCERNING FORWARD-LOOKING STATEMENTS                                                                           

Certain statements contained in this report, including, without limitation, statements as to management expectations, assumptions and beliefs presented in Part I, Item 1. Business and Item 3. Legal Proceedings, and in Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Item 7A. Quantitative and Qualitative Disclosures About Market Risk, and in the notes to the financial statements, are forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act and the Private Securities Litigation Reform Act of 1995. Forward-looking statements can also be identified by the use of forward-looking terminology such as “anticipate,” “estimate,” “may,” “could,” “might,” “intend,” “expect,” “believe,” “will,” “plan,” “should” or comparable terminology and are made based upon management’s current expectations, assumptions and beliefs as of this date concerning future developments and their potential effect on us. There can be no assurance that future developments will be in accordance with management’s expectations, assumptions or beliefs, or that the effect of future developments on us will be those anticipated by management.

We caution readers that the expectations, assumptions and beliefs that form the basis for forward-looking statements regarding customer growth, customer usage, qualifications for ITCs, RECs, future rate case proceedings, financial condition, results of operations, cash flows, capital requirements, future capital expenditures, market risk, effective tax rate, the gain on the sale of the CEV residential solar asset portfolio and other matters for fiscal 2025 and thereafter include many factors that are beyond our ability to control or estimate precisely, such as estimates of future market conditions, the behavior of other market participants and changes in the debt and equity capital markets. The factors that could cause actual results to differ materially from our expectations, assumptions and beliefs include, but are not limited to, those discussed in Part I, Item 1A. Risk Factors, as well as the following, which are neither presented in order of importance nor weighted:

•our ability to obtain governmental and regulatory approvals, permits, certificates, land-use rights, electric grid connection (in the case of clean energy projects) and/or financing for the construction, development and operation of our unregulated energy investments, pipeline transportation systems and NJNG and S&T infrastructure projects in a timely manner;

•our ability to address concerns over climate change and its impacts on business operations;

•risks associated with our investments in clean energy projects, including the availability of regulatory incentives and federal tax credits, the availability of viable projects, our eligibility for ITCs, the future market for RECs and electricity prices, our ability to complete construction of the projects and operational risks related to projects in service;

•risks associated with acquisitions and the related integration of acquired assets with our current operations;

•our ability to comply with current and future regulatory requirements;

•risks associated with our pipeline of projects and timely completion of such projects;

•commercial and wholesale credit risks, including the availability of creditworthy customers and counterparties, and liquidity in the wholesale energy trading market;

•volatility of natural gas and other commodity prices and their impact on NJNG customer usage, NJNG’s BGSS incentive programs, ES operations and our risk management efforts;

•the performance of our subsidiaries;

•access to adequate supplies of natural gas and dependence on third-party S&T facilities for natural gas supply;

•the level and rate at which NJNG’s costs are incurred and the extent to which they are approved for recovery from customers through the regulatory process, including through future base rate case filings;

•impacts of inflation, including the current inflationary environment, and increased natural gas costs;

•the impact of a disallowance of recovery of environmental-related expenditures and other regulatory changes;

•operating risks incidental to handling, storing, transporting and providing customers with natural gas;

•demographic changes in our service territory and their effect on our customer growth;

•changes in rating agency requirements and/or credit ratings and their effect on availability and cost of capital to the Company;

•the impact of events causing volatility in the equity and credit markets on our access to capital, including natural disasters, pandemic illness and other extreme events and risks, political and economic disruption and uncertainty related to Russia’s military invasion of Ukraine, the conflict in the Middle East, and the international community’s responses;

•risks of prolonged constriction of credit availability in the markets and our ability to secure short-term financing;

•our ability to comply with debt covenants;

•the results of legal or administrative proceedings with respect to claims, rates, environmental issues, natural gas cost prudence reviews and other matters;

•risks related to cyberattacks, including ransomware, terrorism and other malicious acts against, or failure of, information technology systems;

•the impact to the asset values and resulting higher costs and funding obligations of our pension and postemployment benefit plans as a result of potential downturns in the financial markets, including, but not limited to, inflationary pressures, recessionary pressures, or rising interest rates, and/or reductions in bond yields;

•accounting effects and other risks associated with hedging activities and use of derivatives contracts;

•our ability to optimize our physical assets;

•weather and economic conditions, including those changes in weather and weather patterns that could be attributable to climate change;

•the costs of compliance with present and future environmental laws, potential climate change-related legislation or any legislation resulting from the 2019 New Jersey EMP, as well as future executive orders and the outcomes of regulatory proceedings concerning natural gas;

•uncertainties related to litigation, regulatory, administrative or environmental proceedings;

•changes to tax laws and regulations, including our ability to optimize those changes brought about by the passage of the Inflation Reduction Act;

•any potential need to record a valuation allowance for our deferred tax assets;

•the delay or prevention of a favorable transaction due to changes in control provisions or laws;

•risks related to our employee workforce and succession planning;

•risks associated with the management of our joint ventures and partnerships; and

•risks associated with keeping pace with technological change.

Forward-looking statements made in this report apply only as of the date of this report. While we periodically reassess material trends and uncertainties affecting our results of operations and financial condition in connection with the preparation of management’s discussion and analysis of results of operations and financial condition contained in our Quarterly and Annual Reports on Form 10-Q and Form 10-K, respectively, we do not, by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events.

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New Jersey Resources Corporation

Part I

ITEM 1. BUSINESS                                                                                                                                                                         

ORGANIZATIONAL STRUCTURE

New Jersey Resources Corporation is a New Jersey corporation and a diversified energy services holding company whose principal business is the distribution of natural gas through a regulated utility, investing in and operating clean energy projects and natural gas storage and transportation assets, and providing other retail and wholesale energy services to customers. We are an exempt holding company under Section 1263 of the Energy Policy Act of 2005.

Our primary subsidiaries include the following:

New Jersey Natural Gas Company provides regulated natural gas utility service to residential and commercial customers throughout Burlington, Middlesex, Monmouth, Morris, Ocean and Sussex counties in New Jersey and participates in the off-system sales and capacity release markets. NJNG, a local natural gas distribution company, is regulated by the BPU and comprises the Company’s Natural Gas Distribution segment.

NJR Clean Energy Ventures Corporation includes the results of operations and assets related to the Company’s unregulated capital investments in clean energy projects, including commercial and residential solar projects. NJRCEV comprises the Company’s Clean Energy Ventures segment.

NJR Energy Services Company, LLC maintains and transacts around a portfolio of physical assets consisting of natural gas transportation and storage contracts in the U.S. NJRES also provides unregulated wholesale energy management services to other energy companies and natural gas producers. NJRES comprises our Energy Services segment.

NJR Midstream Holdings Corporation, which comprises the Storage and Transportation segment, invests in energy-related ventures through its subsidiaries: NJR Midstream Company, which includes our wholly-owned subsidiaries of Leaf River, located in southeastern Mississippi, and Adelphia, located in eastern Pennsylvania, which are subject to FERC regulation; and NJR Steckman Ridge Storage Company, which holds our 50% combined ownership interest in Steckman Ridge, located in Pennsylvania.

NJR Home Services Company provides heating, ventilation and cooling service, sales and installation of appliances, as well as solar installation projects, and is the primary contributor to Home Services and Other operations.

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New Jersey Resources Corporation

Part I

ITEM 1. BUSINESS (Continued)                                                                                                                                                    

REPORTING SEGMENTS

We operate within four reporting segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services and Storage and Transportation.

NJNG consists of regulated natural gas services, off-system sales, capacity and storage management operations. ES consists of unregulated wholesale and retail energy operations, as well as energy management services. CEV consists of capital investments in clean energy projects. S&T consists of operations and investments in the natural gas storage and transportation market, such as natural gas storage and transportation facilities.

Net income by reporting segment and other business operations for the fiscal years ended September 30, are as follows:

* HSO includes intercompany eliminations.

Asset composition by reporting segment and other business operations at September 30, are as follows:

2024 2023

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New Jersey Resources Corporation

Part I

ITEM 1. BUSINESS (Continued)                                                                                                                                                    

Management uses NFE, a non-GAAP financial measure, when evaluating its operating results. NFE is a measure of the earnings based on eliminating timing differences surrounding the recognition of certain gains or losses to effectively match the earnings effects of the economic hedges with the physical sale of natural gas and, therefore, eliminates the impact of volatility to GAAP earnings associated with the derivative instruments. To the extent we utilize forwards, futures or other derivatives to hedge natural gas transactions and forecasted SREC production, the resulting unrealized gains and losses are also eliminated from NFE. ES economically hedges its natural gas inventory with financial derivative instruments and calculates the related tax effect based on the statutory rate. NFE also excludes certain transactions associated with equity method investments, including impairment charges, which are non-cash charges, and return of capital in excess of the carrying value of our investment. These are considered unusual in nature and occur infrequently and are not indicative of the Company’s performance for its ongoing operations. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE.

Non-GAAP financial measures are not in accordance with, or an alternative to, GAAP, and should be considered in addition to, and not as a substitute for, the comparable GAAP measure. The following is a reconciliation of consolidated net income, the most directly comparable GAAP measure, to NFE for the fiscal years ended September 30:

(Thousands)	2024		2023		2022
Net income	$	289,775	$	264,724	$	274,922
Add:
Unrealized loss (gain) on derivative instruments and related transactions	19,574		(38,081)		(59,906)
Tax effect	(4,652)		9,050		14,248
Effects of economic hedging related to natural gas inventory (1)	(18,192)		34,699		19,939
Tax effect	4,323		(8,246)		(4,738)
Gain on equity method investment	—		(300)		(5,521)
Tax effect	—		(19)		1,377
NFE	$	290,828	$	261,827	$	240,321
Basic earnings per share	$	2.94	$	2.73	$	2.86
Add:
Unrealized loss (gain) on derivative instruments and related transactions	0.20		(0.39)		(0.62)
Tax effect	(0.05)		0.09		0.15
Effects of economic hedging related to natural gas inventory (1)	(0.18)		0.36		0.21
Tax effect	0.04		(0.09)		(0.05)
Gain on equity method investment	—		—		(0.06)
Tax effect	—		—		0.01
Basic NFE per share	$	2.95	$	2.70	$	2.50

(1)Effects of hedging natural gas inventory transactions where the economic impact is realized in a future period.

NFE by reporting segment and other business operations for the fiscal years ended September 30, are as follows:

* HSO includes intercompany eliminations.

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New Jersey Resources Corporation

Part I

ITEM 1. BUSINESS (Continued)                                                                                                                                                    

Natural Gas Distribution

General

NJNG consists of regulated utility operations that provide natural gas service to residential and commercial customers. NJNG’s service territory includes Burlington, Middlesex, Monmouth, Morris, Ocean and Sussex counties in New Jersey. It encompasses 1,538 square miles, covering 109 municipalities with an estimated population of 1.7M people. It is primarily suburban, highlighted by approximately 100 miles of New Jersey coastline. It is in close proximity to New York City, Philadelphia and the metropolitan areas of northern New Jersey, and is accessible through a network of major roadways and mass transportation.

NJNG’s business is subject to various risks, such as those associated with adverse economic conditions, which can negatively impact customer growth and operating and financing costs; fluctuations in commodity prices, which can impact customer usage; certain regulatory actions; and environmental remediation. It is often difficult to predict the impact of trends associated with these risks. NJNG employs strategies to pursue customer conversions from other fuel sources and monitor new construction markets through contact with developers, utilize incentive programs through BPU-approved mechanisms to reduce natural gas costs, pursue rate and other regulatory strategies designed to stabilize and decouple gross margin, and work actively with consultants and the NJDEP to manage expectations related to its obligations associated with its former MGP sites.

Operating Revenues/Throughput

For the fiscal years ended September 30, operating revenues and throughput by customer class for NJNG are as follows:

	2024			2023			2022
($ in thousands)	Operating Revenue		Bcf	Operating Revenue		Bcf	Operating Revenue		Bcf
Residential	$	642,352	44.5	$	643,756	43.4	$	598,433	45.5
Commercial and other	124,127		8.5	137,343		8.4	140,727		8.7
Firm transportation	86,138		11.7	79,537		12.1	80,915		13.0
Total residential and commercial	852,617		64.7	860,636		63.9	820,075		67.2
Interruptible/off-tariff agreements/other	9,950		25.8	9,996		29.5	9,740		32.4
Total system	862,567		90.5	870,632		93.4	829,815		99.6
BGSS incentive programs (1)	157,265		67.7	142,001		34.9	298,952		44.5
Total	$	1,019,832	158.2	$	1,012,633	128.3	$	1,128,767	144.1

(1)Does not include 17.3, 37.7 and 50.7 Bcf for the capacity release program and related amounts of approximately $0.8M, $0.9M and $0.7M, which are recorded as a reduction of natural gas purchases on the Consolidated Statements of Operations during fiscal 2024, 2023 and 2022, respectively.

In fiscal 2024, no single customer represented more than 10% of consolidated operating revenues.

Seasonality of Natural Gas Revenues

Therm sales are significantly affected by weather conditions, with customer demand being greatest during the winter months when natural gas is used for heating purposes. The relative measurement of the impact of weather is in Degree-days. Degree-day data is used to estimate amounts of energy required to maintain comfortable indoor temperature levels based on each day’s average temperature. Each degree of temperature below 65 degrees Fahrenheit is counted as one heating Degree-day. Normal heating Degree-days are based on a 20-year average, calculated based on three reference areas representative of NJNG’s service territory.

CIP, a mechanism authorized by the BPU, stabilizes NJNG’s Utility Gross Margin, regardless of variations in weather. In addition, CIP decouples the link between Utility Gross Margin and customer usage, allowing NJNG to promote energy conservation measures. Recovery of Utility Gross Margin is subject to additional conditions, including an earnings test, a revenue test and an evaluation of BGSS-related savings achieved over a 12-month period. The BPU approved the continuation of the CIP program with no expiration date.

Concurrent with its annual BGSS filing, NJNG files for an annual review of its CIP, at which time it can request rate changes, as appropriate. For additional information regarding CIP, including rate actions and impact to margin, see Note 4. Regulation in the accompanying Consolidated Financial Statements and Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations-Natural Gas Distribution.

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New Jersey Resources Corporation

Part I

ITEM 1. BUSINESS (Continued)                                                                                                                                                    

Natural Gas Supply

Firm Natural Gas Supplies

In fiscal 2024, NJNG purchased natural gas from approximately 56 suppliers under contracts ranging from one day to five months and purchased over 10% of its natural gas from two suppliers. NJNG believes the loss of either of these suppliers would not have a material adverse impact on its results of operations, financial position or cash flows, as an adequate number of alternative suppliers exist. NJNG believes that its supply strategy should adequately meet its expected firm load for the upcoming winter season.

Firm Transportation and Storage Capacity

NJNG maintains agreements for firm transportation and storage capacity with several interstate pipeline companies to take delivery of firm natural gas supplies, which ensures the ability to reliably service its customers. NJNG receives natural gas at 11 citygate stations located in Burlington, Middlesex, Morris and Passaic counties in New Jersey.

The pipeline companies that provide firm transportation service to NJNG’s citygate stations, the maximum daily deliverability of that capacity and the contract expiration dates are as follows:

Pipeline	Dths (1)	Expiration
Texas Eastern Transmission, LP	390,738	2025 to 2026
Algonquin Gas Transmission, LLC	12,000	2026
Columbia Gas Transmission, LLC	50,000	2027 to 2030
Tennessee Gas Pipeline Company, LLC	35,894	2028 to 2029
Transcontinental Gas Pipe Line Company, LLC	425,531	2025 to 2039
Total	914,163

(1)    Numbers are shown net of any capacity release contracted amounts.

Eastern Gas Transmission and Storage, Inc., Tennessee Gas Pipeline Company, LLC, Transcontinental Gas Pipe Line Company, LLC and Adelphia provide NJNG upstream firm contract transportation service and supply pipelines included in the table above.

In addition, NJNG has storage contracts that provide an additional 102,941 Dths of maximum daily deliverability to NJNG’s citygate stations from storage fields in its Northeast market area. The storage suppliers, the maximum daily deliverability of that storage capacity and the contract expiration dates are as follows:

Pipeline	Dths	Expiration
Texas Eastern Transmission, LP	94,557	2026
Transcontinental Gas Pipe Line Company, LLC	8,384	2028
Total	102,941

NJNG also has upstream storage contracts. The maximum daily deliverability and contract expiration dates are as follows:

Company	Dths	Expiration
Eastern Gas Transmission and Storage, Inc.	286,829	various dates from 2025 to 2027
Steckman Ridge	38,000	2025
Stagecoach Pipeline and Storage Company, LLC	47,065	2028
Total	371,894

NJNG utilizes its transportation contracts to transport natural gas to NJNG’s citygates from the Eastern Gas Transmission and Storage, Inc., Steckman Ridge and Stagecoach Pipeline & Storage Company LLC storage fields. NJNG has sufficient firm transportation, storage and supply capacity to fully meet its customer demand for natural gas within its service territory.

Citygate Supplies from ES

NJNG and ES had one AMA where NJNG released certain transportation and storage capacity to ES, which NJNG could have called upon if needed. This agreement expired on March 31, 2024 and was not renewed.

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New Jersey Resources Corporation

Part I

ITEM 1. BUSINESS (Continued)                                                                                                                                                    

Peaking Supply

To manage its winter peak day demand, NJNG maintains two LNG facilities with a combined deliverability of approximately 170,000 Dths/day, which represents approximately 17% of its estimated peak day sendout. NJNG’s liquefaction facility allows NJNG to convert natural gas into LNG to fill NJNG’s existing LNG storage tanks. See Item 2. Properties-Natural Gas Distribution for additional information regarding the LNG storage facilities.

Basic Gas Supply Service

BGSS is a BPU-approved clause designed to allow for the recovery of natural gas commodity costs on an annual basis. The clause requires all New Jersey natural gas utilities to make an annual filing by each June 1 for review of BGSS rates and to request a potential rate change effective the following October 1. The BGSS also allows each natural gas utility to provisionally increase residential and small commercial customer BGSS rates on December 1 and February 1 for up to a 5% increase to the average residential heat customer’s bill on a self-implementing basis with proper notice. Such increases are subject to subsequent BPU review and final approval.

In addition to making periodic rate adjustments to reflect changes in commodity prices, NJNG is also permitted to refund or credit back a portion of the commodity costs to customers when the natural gas commodity costs decrease in comparison to amounts projected or to amounts previously collected from customers. Decreases in the BGSS rate and BGSS refunds can be implemented with five days’ notice to the BPU. Rate changes, as well as other regulatory actions related to BGSS, are discussed further in Note 4. Regulation in the accompanying Consolidated Financial Statements.

Wholesale natural gas prices are, by their nature, volatile. NJNG mitigates the impact of volatile price changes on customers through the use of financial derivative instruments, which are part of its storage incentive program and its BGSS clause.

Future Natural Gas Supplies

NJNG expects to meet the natural gas requirements for existing and projected firm customers. If NJNG’s long-term natural gas requirements change, NJNG expects to renegotiate and restructure its contract portfolio to better match the changing needs of its customers and changing natural gas supply landscape.

Regulation and Rates

State

NJNG is subject to the jurisdiction of the BPU with respect to a wide range of matters such as base rates and regulatory rider rates, the issuance of securities, the safety and adequacy of service, the manner of keeping its accounts and records, the sufficiency of natural gas supply, pipeline safety, environmental issues, compliance with affiliate standards and the sale or encumbrance of its properties. See Note 4. Regulation in the accompanying Consolidated Financial Statements for additional information regarding NJNG’s rate proceedings.

Federal

FERC regulates rates charged by interstate pipeline companies for the transportation and storage of natural gas. This may affect NJNG’s agreements with several interstate pipeline companies for the purchase of such services. Costs associated with these services are currently recoverable through the BGSS.

Competition

Although its franchises are nonexclusive, NJNG is not currently subject to competition from other natural gas distribution utilities with regard to the transportation of natural gas in its service territory. Due to significant distances between NJNG’s current large industrial customers and the nearest interstate natural gas pipelines, as well as the availability of its transportation tariff, NJNG currently does not believe it has significant exposure to the risk that its distribution system will be bypassed. Competition does exist from suppliers of oil, electricity and propane. Natural gas prices are a function of market supply and demand. Although NJNG believes natural gas will remain competitive with alternative fuels, no assurance can be given in this regard.

The BPU, within the framework of the EDECA, fully opened NJNG’s residential markets to competition, including third-party suppliers, and restructured rates to segregate its BGSS and delivery (i.e., transportation) prices. New Jersey’s natural gas utilities must provide BGSS in the absence of a third-party supplier. On September 30, 2024, NJNG had 14,470 residential and 7,972 commercial and industrial customers utilizing the transportation service.

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New Jersey Resources Corporation

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ITEM 1. BUSINESS (Continued)                                                                                                                                                    

Clean Energy Ventures

CEV owns and operates clean energy projects, including commercial and residential solar installations located in six states, including New Jersey, Rhode Island, New York, Connecticut, Michigan and Indiana.

As of September 30, 2024, CEV has approximately 477 MW of solar capacity in service, including a combination of commercial and residential net-metered and commercial grid-connected commercial solar systems.

As part of its solar investment portfolio, CEV operates a residential and small commercial solar program, The Sunlight Advantage®, which provides qualifying homeowners and small business owners with the opportunity to have a solar system installed at their home or place of business with no installation or maintenance expenses. CEV owns, operates and maintains the system over the life of the lease in exchange for monthly lease payments. The program is operated by CEV using qualified contracting partners in addition to strategic suppliers for material standardization and sourcing.

On November 25, 2024, CEV completed the sale of its 91 MW residential solar asset portfolio. See Note 17. Subsequent Events for more information regarding the transaction.

CEV’s commercial solar projects are sourced through various channels and include both net-metered and grid-connected systems. Net-metered projects involve the sale of energy to a host and grid-connected systems into the wholesale energy markets. Project construction is competitively sourced through third parties. New Jersey has the tenth largest solar market in the U.S., according to the Solar Energy Industries Association®, with a large number of firms competing in all facets of the market including development, financing and construction.

Our solar systems located in New Jersey are registered and certified with the BPU’s Office of Clean Energy and qualified to produce RECs. One REC is created for every MWh of electricity produced by a solar generator. CEV sells SRECs generated to a variety of counterparties, including electric load-serving entities that serve electric customers in New Jersey and are required to comply with the solar carve-out of the Renewable Portfolio Standard, a regulation that requires the increased production of energy from renewable energy sources. Solar projects are also currently eligible for federal ITCs in the year that they are placed into service. In December 2019, the BPU established the TREC as the interim program successor to the SREC program. TRECs provide a fixed compensation base multiplied by an assigned project factor in order to determine their value. The project factor is determined by the type and location of the project, as defined. All TRECs generated are required to be purchased monthly by a TREC program administrator as appointed by the BPU.

In July 2021, the BPU approved the first portion of the solar successor program for net-metered projects under 5 MWs. The new program opened to new applications in August 2021. Incentives are structured as a 15-year fixed incentive ranging from $85 to $130/MWh depending on market segment, project siting and size. The second phase of the successor program, the CSI program, was established in December 2022. The CSI program was designed to encourage grid scale solar generation with a goal of incentivizing development of at least 300 MW of solar annually until 2026. Solicitations take place annually, and all projects that meet pre-qualification requirements will compete on price only. Dates for the next solicitation have yet to be announced.

CEV is subject to various risks including those associated with adverse federal and state legislation and regulatory policies, electric grid connection, supply chain and/or construction delays that can impact the timing or eligibility of tax incentives, technological changes and the future market of RECs. See Item 1A. Risk Factors for additional information regarding these risks.

Energy Services

ES consists of unregulated wholesale and retail natural gas operations and provides producer and asset management services to a diverse customer base across North America. ES has acquired contractual rights to natural gas transportation and storage assets it utilizes to implement its strategic and opportunistic market strategies. The rights to these assets were acquired in anticipation of delivering natural gas, performing asset management services for customers or identifying strategic opportunities that exist in or between the market areas that it serves. These opportunities are driven by price differentials between market locations and/or time periods. ES differentiates itself in the marketplace based on price, reliability and quality of service. Its competitors include wholesale marketing and trading companies, utilities, natural gas producers and financial institutions. ES’s portfolio of customers includes regulated natural gas distribution companies, industrial companies, electric generators, natural gas/liquids processors, retail aggregators, wholesale marketers and natural gas producers.

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ITEM 1. BUSINESS (Continued)                                                                                                                                                    

While focusing on maintaining a low-risk operating and counterparty credit profile, ES’s activities specifically consist of the following elements:

•Providing natural gas portfolio management services to nonaffiliated and our affiliated natural gas utility, electric generation facilities and natural gas producers;

•Managing strategies for new and existing natural gas transportation and storage assets to capture value from changes in price due to location or timing differences;

•Managing transactional logistics to minimize the cost of natural gas delivery to customers while maintaining security of supply. Transactions utilize the most optimal and advantageous natural gas supply transportation routing available within its contractual asset portfolio and various market areas; and

•Managing economic hedging programs that are designed to mitigate the impact of changes in market prices on Financial Margin generated on its natural gas transportation and storage commitments.

In an effort to deliver more predictable earnings contributions, reduce earnings volatility and monetize the value of its natural gas transportation portfolio, ES entered into a series of AMAs in December 2020 with an investment grade public utility to release pipeline capacity associated with certain natural gas transportation contracts. The AMAs include a series of initial and permanent releases, which commenced in November 2021. NJR received a total of approximately $260M in cash from fiscal 2022 through fiscal 2024 and will receive approximately $34M per year from fiscal 2025 through fiscal 2031 under the agreements.

During fiscal 2024, ES purchased more than 10% of its natural gas from one supplier. ES believes the loss of this supplier would not have a material adverse impact on its results of operations, financial position or cash flows, as an adequate number of alternative suppliers exist.

Transportation and Natural Gas Storage Transactions

ES focuses on creating value from the use of its physical assets, which are typically amassed through contractual rights to natural gas transportation and storage capacity. These assets become more valuable when favorable price changes occur that impact the value between or within market areas and across time periods. On a forward basis, ES may hedge these price differentials through the use of financial instruments. In addition, ES may seek to optimize these assets on a daily basis, as market conditions warrant, by evaluating natural gas supply and transportation availability within its portfolio. This enables ES to capture geographic pricing differences across various regions, as delivered natural gas prices may change favorably as a result of market conditions. ES may, for example, initiate positions when intrinsic Financial Margin is present, and then enhance that Financial Margin as prices change across regions or time periods.

ES also engages in park and loan transactions with storage and pipeline operators, where ES will either borrow (receive a loan of) natural gas with an obligation to repay the storage or pipeline operator at a later date or “park” natural gas with an obligation to withdraw at a later date. In these cases, ES evaluates the economics of the transaction to determine if it can capture pricing differentials in the marketplace and generate Financial Margin. ES evaluates deal attributes such as fixed fees and calendar-spread value from deal inception until volumes are scheduled to be returned and/or repaid, as well as the time value of money. If this evaluation demonstrates that Financial Margin exists, ES may enter into the transaction and hedge with natural gas futures contracts, thereby locking in Financial Margin.

ES maintains inventory balances to satisfy existing or anticipated sales of natural gas to its counterparties and/or to create additional value, as described above. During fiscal 2024 and 2023, ES managed and sold 125.3 Bcf and 150.4 Bcf of natural gas, respectively. In addition, as of September 30, 2024 and 2023, ES had 13.1 Bcf of natural gas in storage and 14.6 Bcf of natural gas in storage, respectively.

Weather/Seasonality

ES activities are typically seasonal in nature as a result of changes in the supply and demand for natural gas. Demand for natural gas is generally higher during the winter months when there may also be supply constraints; however, during periods of milder temperatures, demand can decrease. In addition, demand for natural gas can also be high during periods of extreme heat in the summer months, resulting from the need for additional natural gas supply for natural gas-fired electric generation facilities. Accordingly, ES can be subject to variations in earnings and working capital throughout the year as a result of changes in weather.

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New Jersey Resources Corporation

Part I

ITEM 1. BUSINESS (Continued)                                                                                                                                                    

Volatility

ES’s activities are also subject to price volatility or supply/demand dynamics within its North American wholesale markets, including in the Northeastern, Appalachian, Mid-Continent and Southeast regions. Changes in natural gas supply can affect capacity values and ES’s Financial Margin, which, as described below, is generated from the optimization of transportation and storage assets. With its focus on risk management, ES continues to diversify its revenue stream by identifying new growth opportunities in producer and asset management services. ES monitors changing market dynamics and strategically adjusts its portfolio of transportation and storage assets, which currently includes an average of approximately 16.5 Bcf of firm storage and 0.6 Bcf of firm transportation capacity.

Financial Margin

To economically hedge the commodity price risk associated with its existing and anticipated commitments for the purchase and sale of natural gas, ES enters into a variety of derivative instruments including, but not limited to, futures contracts, physical forward contracts, financial swaps and options. These derivative instruments are accounted for at fair value with changes in fair value recognized in earnings as they occur. ES views Financial Margin, a non-GAAP financial measure, as a key internal financial metric. For additional information regarding Financial Margin, see Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations-Energy Services.

Risk Management

In conducting its business, ES mitigates risk by following formal risk management guidelines, including transaction limits, segregation of duties and formal contract and credit review approval processes. ES continuously monitors and seeks to reduce the risk associated with its counterparty credit exposures. Our Risk Management Committee oversees compliance with these established guidelines.

Storage and Transportation

S&T includes investments in FERC-regulated interstate natural gas storage and transportation assets and comprises NJR Midstream Company, which owns and operates Leaf River, FERC-regulated Adelphia, and NJR Steckman Ridge Storage Company, which holds our 50% equity method investment in Steckman Ridge.

Leaf River

Leaf River is a salt dome cavern natural gas storage facility located in southeastern Mississippi. The facility consists of three salt caverns with a combined natural gas storage capacity of 32.2M Dth. A 40-mile, dual 24 inch pipeline header system provides interconnections with seven different pipelines: Tennessee Gas Pipeline, Destin Pipeline, Transcontinental Pipeline, Southern Natural Gas Pipeline, Midcontinent Express Pipeline, Gulf South Pipeline, and Venture Oil & Gas Pipeline, and serves as a bridge between the Northeast, Mid-Atlantic and Southeast markets. Leaf River provides reliable storage and balancing services to utilities, pipelines, marketers, and power markets in the Gulf and Southeast region.

Adelphia

Adelphia operates a FERC-regulated interstate natural gas transmission pipeline system in eastern Pennsylvania, providing firm and interruptible natural gas transportation service. The Adelphia pipeline system extends from Lower Mount Bethel Township in North Hampton County to Marcus Hook in Delaware County. Adelphia provides up to 850,000 Dths of natural gas to constrained energy markets in the greater Philadelphia region and serves customers from local distributors and producers to electric generators and wholesale marketers through its pipeline and storage assets.

Steckman Ridge

Steckman Ridge is a Delaware limited partnership, jointly owned and controlled by our subsidiaries and subsidiaries of Enbridge Inc., which built, owns and operates a natural gas storage facility with up to 12 Bcf of working natural gas capacity in Bedford County, Pennsylvania. The facility has direct access to the TETCO and Eastern Gas Transmission and Storage, Inc. pipelines and has access to the Northeast and Mid-Atlantic markets.

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Part I

ITEM 1. BUSINESS (Continued)                                                                                                                                                    

OTHER BUSINESS OPERATIONS

Home Services and Other

HSO operations consist primarily of the following unregulated affiliates:

•NJR Home Services, Inc., which provides heating, ventilation and cooling service, electrical and generator service and installations, sales and installation of appliances, as well as installation of solar equipment;

•NJR Plumbing Services, Inc., which provides plumbing repair and installation services;

•New Jersey Resources Corporation, a diversified energy services holding company;

•CR&R, which holds commercial real estate; and

•NJR Service Corporation, which provides shared administrative and financial services to the Company and all of its subsidiaries and affiliates.

ENVIRONMENT

We, along with our subsidiaries, are subject to legislation and regulation by federal, state and local authorities with respect to environmental matters. We believe that we are, in all material respects, in compliance with all applicable environmental laws and regulations.

NJNG is responsible for the environmental remediation of identified former MGP sites, which contain contaminated residues from former gas manufacturing operations that ceased at these sites by the mid-1950s and, in some cases, had been discontinued many years earlier. NJNG periodically, and at least annually, performs an environmental review of the former MGP sites, including a review of potential estimated liabilities related to the investigation and remedial action on these sites. Based on this review, NJNG has estimated that the total future expenditures to remediate and monitor the former MGP sites for which it is responsible will range from approximately $130.9M to $194.6M.

NJNG’s estimate of these liabilities is based upon known and measurable facts, existing technology and enacted laws and regulations in place when the review was completed in fiscal 2024. Where it is probable that costs will be incurred, and the information is sufficient to establish a range of possible liability, NJNG accrues the most likely amount in the range. If no point within the range is more likely than the other, it is NJNG’s policy to accrue the lower end of the range. As of September 30, 2024, NJNG recorded an MGP remediation liability and a corresponding regulatory asset of $161.7M on the Consolidated Balance Sheets, based on the most likely amount; however, actual costs may differ from these estimates.

HUMAN CAPITAL RESOURCES

Employee Overview

NJR fundamentally believes that its employees make the Company a unique, successful organization – in commitment, ingenuity, hard work and innovation. NJR employees fulfill the responsibilities that enable the Company to deliver natural gas service to its customers; to be a leader in clean energy investments; to grow its storage and transportation energy business; and to earn the loyalty of its retail home services customers. NJR also is committed to provide every appropriate resource to ensure its employees’ safety. Through initiatives that start at the top, NJR has invested time, energy and manpower to foster a culture in which safety is top-of-mind at all times and achieving safety goals is a shared priority for every NJR employee.

As of September 30, 2024, the Company and our subsidiaries employed 1,372 employees compared with 1,350 employees as of September 30, 2023. Of the total number of employees, NJNG had 510 and 509 and NJRHS had 118 and 117 Union or Represented employees as of September 30, 2024 and 2023, respectively. NJNG and NJRHS have collective bargaining agreements with the Union, which is affiliated with the American Federation of Labor and Congress of Industrial Organizations. NJNG and the Union agreed and ratified a contract on December 7, 2023, expiring in December 2026. The collective bargaining agreement between NJRHS and the Union was agreed and ratified on September 27, 2024, expiring in April 2029. The labor agreements cover wage increases and other benefits, including the defined benefit pension (which was closed to all employees hired on or after January 1, 2012, with the exception of certain rehires who are eligible to resume active participation), the postemployment benefit plan (which was closed to all employees hired on or after January 1, 2012) and the enhanced 401(k) retirement savings plan. We consider our relationship with employees, including those covered by collective bargaining agreements, to be in good standing.

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New Jersey Resources Corporation

Part I

ITEM 1. BUSINESS (Continued)                                                                                                                                                    

The Company depends on its key personnel to successfully operate its businesses, including its executive officers, senior corporate management and management at its operating units. NJR seeks to attract and retain its employees by offering competitive compensation packages including base and incentive compensation (and in certain instances share-based compensation and retention incentives), attractive benefits and opportunities for advancement and rewarding careers. NJR periodically reviews and adjusts, if needed, its employees’ total compensation (including salaries, annual cash incentive compensation, other cash and equity incentives and benefits) to ensure that it is competitive within the industry and is consistent with our level of performance. NJR has also implemented enterprise-wide talent development and succession planning programs designed to identify future talent for key positions. To promote a collaborative and rewarding work environment and support the communities we serve, NJR sponsors numerous charitable, philanthropic and social awareness programs.

Further, in order to take advantage of available opportunities and successfully implement our long-term strategy, NJR must be able to employ, train and retain the necessary skilled employees. As a result, NJR supports and utilizes various training and educational programs and has developed additional company-wide and project-specific employee training and educational programs. NJR continues key programs focused on employee safety, leadership development, work-life balance, talent management, health and wellness, DEI and employee engagement. Moreover, DEI and employee engagement are integral to NJR’s vision, strategy and business success. Fostering an environment that values DEI and ethics helps create an organization that is able to embrace, leverage and respect the differences of employees, customers and the communities where we live, work and serve. We are proud of the strides we have made in furthering our DEI strategy and increasing employee engagement. NJR is committed to this journey and knows our success makes us stronger as a company and community. Complementing our efforts are a DEI Council and our employee-led Business Resource Groups, cross-functional teams of employees whose core mission is to advance their own professional development and cultivate deeper connections with co-workers and communities.

NJR periodically evaluates employees and their productivity against future demand expectations and historical trends. NJR employees continue to maintain high levels of engagement, satisfaction and retention according to NJR’s most recent employee survey conducted in October 2023.

NJR Board of Directors’ Role in Human Capital Resource Management

NJR’s Board of Directors believes that human capital management is an important component of the Company’s continued growth and success, and is essential for our ability to attract, retain and develop talented and skilled employees. We pride ourselves on a culture that is innovative, talent- and team-focused and inclusive.

Management regularly reports to the LDCC of the Board of Directors on human capital management topics, including corporate culture, DEI, employee development, compensation and benefits. The LDCC maintains oversight of matters related to human capital management, including talent retention, development and succession planning, and the Board of Directors provides input on important decisions in each of these areas.

NJR conducts an annual employee survey, which is reviewed by the LDCC, designed to help the Company measure overall employee engagement. The feedback employees provide through the survey helps NJR evaluate the Company’s culture and the employee experience and monitor its current practices for potential areas of improvement.

Employee Benefits

The LDCC believes employee benefits are an essential component of the Company’s competitive total rewards package. These benefits are designed to attract and retain our employees and include medical, vision and dental insurance, short- and long-term disability insurance, accidental death and disability insurance, travel and accident insurance and our 401(k) Plan. As part of the 401(k) Plan, NJR has matched 85% of the first 6% of base compensation contributed by the employee into the 401(k) Plan, subject to the Internal Revenue Code and NJR’s 401(k) Plan limits. Beginning on March 6, 2024, NJR’s contribution changed to 100% of the first 3% and 80% of the next 3% of base compensation. Additionally, for employees who are not eligible to participate in the defined benefit plans, NJR annually contributes between 4% and 5% of base compensation, depending upon years of service, into the 401(k) Plan on their behalf.

AVAILABLE INFORMATION AND CORPORATE GOVERNANCE DOCUMENTS

The following reports and any amendments to those reports are available on our website at https://investor.njresources.com/financials/sec-filings as soon as reasonably possible after filing or furnishing them with the SEC:

•Annual reports on Form 10-K;

•Quarterly reports on Form 10-Q; and

•Current reports on Form 8-K.

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Part I

ITEM 1. BUSINESS (Continued)                                                                                                                                                    

The following documents are available on our website at https://investor.njresources.com/governance/governance-documents:

•NJR Code of Conduct;

•Amended and Restated Bylaws;

•Corporate Governance Guidelines;

•Wholesale Trading Code of Conduct;

•Dodd-Frank Compensation Recoupment Policy;

•Supplemental Clawback Policy;

•Insider Trading Policy;

•Charters of the following Board of Directors Committees: Audit, Nominating/Corporate Governance and Leadership Development and Compensation;

•Audit Complaint Procedure;

•Communicating with Non-Management Directors Procedure;

•Statement of Policy with Respect to Related Person Transactions; and

•Legal Procedure.

In Part III of this Form 10-K, we incorporate certain information by reference from our Proxy Statement for our 2024 Annual Meeting of Shareowners. We expect to file the Proxy Statement with the SEC on or about December 11, 2024. We will make it available on our website as soon as reasonably possible following the filing date. Please refer to the Proxy Statement when it is available.

A printed copy of each document is available free of charge to any shareowner who requests it by contacting the Corporate Secretary at New Jersey Resources Corporation, 1415 Wyckoff Road, Wall, New Jersey 07719.

INFORMATION ABOUT OUR EXECUTIVE OFFICERS

The Company’s Executive Officers and their age, position and business experience during the past five years are below.

Name	Age	Officer since	Business experience during last five years
Stephen D. Westhoven	56	2004	President and CEO (October 2019 - present) President and Chief Operating Office (October 2018 - September 2019)
Roberto Bel	51	2019	Senior Vice President and Chief Financial Officer (January 2022 - present) Vice President, Treasury and Investor Relations (April 2019 - December 2021)
Patrick J. Migliaccio	50	2013	Senior Vice President and Chief Operating Officer (January 2022 - present) Senior Vice President and Chief Financial Officer (January 2016 - December 2021)
Amy Cradic	53	2018	Senior Vice President and Chief Operating Officer of Nonutility Businesses, Strategy and External Affairs (March 2020 - present) Vice President, Corporate Strategy and External Affairs (January 2020 – February 2020) Vice President, Government Affairs and Policy (January 2018 – December 2019)
Richard Reich	49	2016	Senior Vice President and General Counsel (June 2022 - present) Senior Vice President, General Counsel and Corporate Secretary (September 2021 - June 2022) Corporate Secretary and Assistant General Counsel (January 2016 - September 2021)
Lori DelGiudice	49	2023	Senior Vice President, Human Resources (November 2022 - present) Vice President of Human Resources for Honeywell Advanced Materials (September 2017 - October 2022)
Jacqueline K. Shea	60	2016	Senior Vice President and CIO (January 2023 - present) Vice President and CIO (June 2016 - December 2022)
Stephen M. Skrocki	48	2023	Corporate Controller (Principal Accounting Officer) (January 2023 - present) Corporate Controller (January 2021 - December 2022) Assistant Corporate Controller (March 2017 - January 2021)

ITEM 1A. RISK FACTORS                                                                                                                                                           

When considering any investment in our securities, investors should consider the following risk factors, as well as the information contained under the caption “Information Concerning Forward-Looking Statements,” in analyzing our present and future business performance. While this list is not exhaustive, management also places no priority or likelihood based on their descriptions or order of presentation. Listed below, not necessarily in order of importance or probability of occurrence, are the most significant risk factors applicable to us. Unless indicated otherwise or the content requires otherwise, references below to “we,” “us,” and “our” should be read to refer to the Company and its subsidiaries and affiliates.

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ITEM 1A. RISK FACTORS (Continued)                                                                                                                                      

Risks Related to Our Business Operations

Our investments in solar energy projects are subject to substantial risks and uncertainties. There are risks associated with our ability to execute on our investment strategy of clean energy projects, which includes our ability to develop and manage such projects profitably. These include logistical risks and potential delays related to construction, permitting and regulatory approvals (including any approvals by the BPU required pursuant to solar energy legislation in the State of New Jersey, and similar approvals required by the other states where our solar projects are located); electric grid interconnection delays associated with the PJM Interconnection, LLC queue reform process; and the operational risk that the projects in service will not perform according to expectations due to equipment failure, suboptimal weather conditions or other economic factors beyond our control. All of the aforementioned risks could reduce the availability of viable solar energy projects for development. Furthermore, at the development or acquisition stage, our ability to predict actual performance results may be hindered or inaccurate and the projects may not perform as predicted.

In addition, our investments in solar energy projects are dependent, in part, upon current state regulatory incentives and federal tax credits in order for the projects to be economically viable. Our return on investment for these solar projects is based substantially on our eligibility for ITCs and the future market value of RECs that are traded in a competitive marketplace in the State of New Jersey. These projects face the risk that the current state regulatory programs and tax laws may expire or be adversely modified. A sustained decrease in the value of RECs could negatively impact the return on our investments and could impair our portfolio of solar assets.

Actions or limitations to address concerns over climate change, both globally and within our utilities' service areas, may affect our operations and financial performance. Legislative, regulatory and advocacy efforts at the local, state and national levels concerning climate change and other environmental issues could have significant impacts on our operations. The natural gas utility industry may be affected by proposals to curb greenhouse gas and other air emissions. Various regulatory and legislative proposals have been made to limit or further restrict byproducts of combustion, including byproducts resulting from the use of natural gas by our customers. In addition, regionally, a number of regulatory and legislative initiatives have been passed that are designed to limit greenhouse gas emissions and increase the use of renewable sources of energy, such as the ban of natural gas equipment in new construction in New York and elsewhere in the U.S. In addition, regulatory and legislative initiatives may restrict customers’ access to natural gas and/or require or limit natural gas infrastructure in buildings. Other initiatives may seek to promote social interests expressed as energy equity, environmental justice or similar frameworks. Any such legislation could direct and/or restrict the operation and raise the costs of our energy delivery infrastructure as well as the distribution of natural gas to our customers.

Uncertainties associated with our pipeline of projects could adversely affect our business, results of operations, financial condition and cash flows. Business development projects involve many risks. We are currently engaged in business development projects, including projects in various stages of development tied to decarbonization efforts. Timely completion of our projects is subject to certain risks, including those related to regulatory proceedings regarding permitting and adverse outcomes from legal challenges related to the projects’ authorizations from federal and state regulatory agencies. We could also experience issues such as: technological challenges; ineffective scalability; failure to achieve expected outcomes; unsuccessful business models; startup and construction delays; construction cost overruns; disputes with contractors; the inability to negotiate acceptable agreements such as rights-of-way, easements, construction, gas supply or other material contracts; changes in customer demand, perception or commitment; public opposition to projects; marketing risk and changes in market regulation, behavior or prices; market volatility or unavailability, including markets for RNG and its associated attributes or other environmental attributes; the inability to receive expected tax or regulatory treatment; and operating cost increases. Additionally, we may be unable to finance our business development projects at acceptable costs or within a scheduled time frame necessary for completing the project. Any of the foregoing risks, if realized, could result in business development efforts failing to produce expected financial results and the project investment becoming impaired, and such failure or impairment could have an adverse effect on our business, results of operations, financial condition and cash flows.

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New Jersey Resources Corporation

Part I

ITEM 1A. RISK FACTORS (Continued)                                                                                                                                      

ES’s earnings and cash flows are dependent upon optimization of its contractual assets. ES’s earnings and cash flows are based, in part, on its ability to optimize its portfolio of contractually based natural gas storage and pipeline assets. The optimization strategy involves utilizing its physical assets to take advantage of differences in natural gas prices between geographic locations and/or time periods. Any change among various pricing points could affect these differentials. In addition, significant increases in the supply of natural gas in ES’s market areas, including as a result of increased production along the Marcellus Shale, can reduce ES’s ability to take advantage of pricing fluctuations in the future. Changes in pricing dynamics and supply could have an adverse impact on ES’s optimization activities, earnings and cash flows. ES incurs fixed demand fees to acquire its contractual rights to transportation and storage assets. Should commodity prices at various locations or time periods change in such a way that ES is not able to recoup these costs from its customers, the cash flows and earnings at ES, and ultimately the Company, could be adversely impacted.

NJNG and ES rely on storage, transportation assets and suppliers, which they do not own or control, to deliver natural gas, which may affect their ability to deliver their products and services. NJNG and ES depend on natural gas pipelines and other transportation and storage facilities owned and operated by third parties to deliver natural gas to wholesale and retail markets and to provide retail energy services to customers. Their ability to provide natural gas for their present and projected sales will depend upon their suppliers’ ability to obtain and deliver additional supplies of natural gas, as well as NJNG’s ability to acquire supplies directly from new sources. Factors beyond the control of NJNG, its suppliers and the independent suppliers that have obligations to provide natural gas to certain NJNG customers may affect NJNG’s ability to deliver such supplies. These factors include other parties’ control over the drilling of new wells and the facilities to transport natural gas to NJNG’s citygate stations; development of additional interstate pipeline infrastructure; availability of supply sources; third-party pipelines or other midstream facilities interconnected to our gathering or transportation system, such as the TETCO or Transcontinental Pipeline, becoming partially or fully unavailable; competition for the acquisition of natural gas; priority allocations; impact of severe weather disruptions to natural gas supplies; and the regulatory and pricing policies of federal and state regulatory agencies. Energy deregulation legislation may increase competition among natural gas utilities and impact the quantities of natural gas requirements needed for sales service. ES also relies on a firm supply source to meet its energy management obligations to its customers. If supply, transportation or storage is disrupted, including for reasons of force majeure, the ability of NJNG and ES to sell and deliver their products and services may be hindered. As a result, they may be responsible for damages incurred by their customers, such as the additional cost of acquiring alternative supply at then-current market rates. Particularly for ES, these conditions could have a material impact on our financial condition, results of operations and cash flows.

Failure to attract and retain an appropriately qualified employee workforce could adversely affect operations. Our ability to implement our business strategy and serve our customers is dependent upon our continuing ability to attract and retain talented professionals and a technically skilled workforce, and being able to transfer the knowledge and expertise of our workforce to new employees as our aging employees retire. Failure to hire and adequately train replacement employees, including the transfer of significant internal historical knowledge and expertise to the new employees, or the future availability and cost of contract labor could adversely affect the ability to manage and operate our business. Disputes with the Union over terms and conditions of the collective bargaining agreements could result in instability in our labor relationship and work stoppages that could impair the timely delivery of natural gas and other services from our utility and Home Services business, which could strain relationships with customers and state regulators and cause a loss of revenues that could adversely affect our results of operations. Our collective bargaining agreements may also increase the cost of employing NJNG and Home Services workforce, affect our ability to continue offering market-based salaries and employee benefits, limit our flexibility in dealing with our workforce and limit our ability to change work rules and practices and implement other efficiency-related improvements to successfully compete in today’s challenging marketplace.

 Our success depends upon our ability to attract, effectively transition, motivate and retain key employees and identify and develop talent to succeed senior management. We depend on senior executive officers and other key personnel to develop, implement and execute on our overall business strategy. The inability to recruit and retain or effectively transition key personnel or the unexpected loss of key personnel may adversely affect our operations.

Page 17

New Jersey Resources Corporation

Part I

ITEM 1A. RISK FACTORS (Continued)                                                                                                                                      

We may be unable to obtain governmental approvals, property rights and/or financing for the construction, development and operation of our proposed energy investments and projects in a timely manner or at all. Construction, development and operation of energy investments, such as Leaf River and other natural gas storage facilities, NJNG infrastructure improvements, pipeline transportation systems, such as the Adelphia pipeline project, and solar energy projects, are subject to federal and state regulatory oversight and require certain property rights, such as easements and rights-of-way from public and private property owners, as well as regulatory approvals, including environmental and other permits and licenses for such facilities and systems. We or our joint venture partnerships may be unable to obtain, in a cost-efficient or timely manner, all such needed property rights, permits and licenses to construct and develop our energy facilities and systems. Successful financing of our energy investments requires participation by willing financial institutions and lenders, as well as acquisition of capital at reasonable interest rates. If we do not obtain the necessary regulatory approvals or property rights, or if we are unable to enter into contracts with counterparties at reasonable rates or obtain financing, our assets or equity method investments could be impaired. Such impairment could have a material adverse effect on our financial condition, results of operations and cash flows.

Weather and weather patterns, including normal seasonal and quarterly fluctuations of weather, as well as extreme weather events that, individually or in aggregate, may be associated with climate change, could adversely affect our ability to manage our operational requirements to serve our customers, and ultimately adversely affect our results of operations and liquidity. NJNG’s business is seasonal, and weather patterns can have a material impact on our financial performance. Demand for natural gas is often greater in the summer and winter months associated with cooling and heating. Because natural gas is heavily used for residential and commercial heating, the demand for this product depends heavily upon weather patterns throughout our market areas, and a significant amount of natural gas revenues are recognized in the first and second quarters related to the heating season. Accordingly, our operations have historically generated less revenue and income when weather conditions are milder in the winter and cooler in the summer. Unusually mild winters or cool summers could adversely affect our results of operations and financial position. In addition, exceptionally hot summer weather or unusually cold winter weather could add significantly to working capital needs to fund higher-than-normal supply purchases to meet customer demand for natural gas. While we believe the CIP mitigates the impact of weather variations on NJNG’s Utility Gross Margin, severe weather conditions may have an impact on the ability of suppliers and pipelines to deliver the natural gas to NJNG, which can negatively affect our earnings. The CIP does not mitigate the impact of severe weather conditions on our cash flows.

Future results at ES are subject to volatility in the natural gas market due to weather. Variations in weather may affect earnings and working capital needs throughout the year. During periods of milder temperatures, demand and volatility in the natural gas market may decrease, which can negatively impact ES’s earnings and cash flows.

Severe weather impacts, including, but not limited to, hurricanes, earthquakes, thunderstorms, high winds, microbursts, wildfires, tornadoes, blizzards and snow or ice storms, can disrupt energy generation, transmission and distribution. Extreme weather conditions, especially those of prolonged duration, create high energy demand on our own and/or other systems and increase the risk that we may be unable to reliably serve customers. Risk of losing gas supply during extreme weather carries significant consequences, as without our services our customers may be subjected to dire circumstances. Additionally, extreme weather conditions may cause the breakdown of or damage to equipment essential to the operation of our assets, and could also raise market prices as we buy short-term energy to serve our own system. To the extent the frequency of extreme weather events increases, this could increase our cost of providing service. In addition, we may not recover all costs related to mitigating these physical and financial risks.

There is also a concern that the physical risks of climate change could include changes in weather conditions, such as changes in the amount or type of precipitation and extreme weather events. Climate change and the costs that may be associated with its impacts have the potential to affect our business in many ways, including increasing the cost incurred in providing natural gas, impacting the demand for and consumption of natural gas (due to change in both costs and weather patterns) and affecting the economic health of the regions in which we operate.

We may be adversely impacted by natural disasters, pandemic illness, war or terrorist activities and other extreme events to which we may be unable to promptly respond. Local or national natural disasters, pandemic illness, actual or threatened acts of war or terrorist activities, including the political and economic disruption and uncertainty related to Russia’s military invasion of Ukraine and conflicts in the Middle East, catastrophic failure of the interstate pipeline system and other extreme events are a threat to our assets and operations. Companies in our industry that are located in our service territory may face a heightened risk due to exposure to acts of terrorism that could target or impact our natural gas distribution, transmission and storage facilities and disrupt our operations and ability to meet customer requirements. In addition, the threat of terrorist activities could lead to increased economic instability and volatility in the price of natural gas that could affect our operations. Natural disasters, political unrest or actual or threatened terrorist activities may also disrupt capital markets and our ability to raise capital or may impact our suppliers or our customers directly.

Page 18

New Jersey Resources Corporation

Part I

ITEM 1A. RISK FACTORS (Continued)                                                                                                                                      

A local disaster or pandemic illness could result in part of our workforce being unable to operate or maintain our infrastructure or perform other tasks necessary to conduct our business. In addition, these risks could result in loss of human life, significant damage to property, environmental damage, impairment of our operations and substantial loss to the Company. Such uncertain conditions may also impact the ability of certain customers to pay for services, which could affect the collectability and recognition of our revenues and adversely affect our financial results. Our regulators may not allow us to recover from our customers part or all of the increased cost related to the foregoing events, which could negatively affect our financial condition, results of operations and cash flows.

A slow or inadequate response to events that could cause business interruption may have an adverse impact on operations and earnings. We may be unable to obtain sufficient insurance (or such insurance may be costly) to cover all risks associated with local and national disasters, pandemic illness, terrorist activities, catastrophic failure of the interstate pipeline system and other events, which could increase the risk that an event adversely affects our financial condition, results of operations and cash flows.

Risks Related to Technologies

Cyberattacks, ransomware, terrorism, other malicious acts against, or failure of, information technology systems could adversely affect our business operations, financial condition and results of operations. We continue to place ever-greater reliance on technological tools that support our business operations and corporate functions, including tools that help us manage our natural gas distribution and energy trading operations and infrastructure. The failure of, or security breaches related to, these technologies could materially adversely affect our business operations, financial position, results of operations and cash flows.

We rely on information technology to manage our natural gas distribution and storage, energy trading and other corporate operations; maintain customer, employee, Company and vendor data; and prepare our financial statements and perform other critical business processes. This technology may fail due to cyberattack, physical disruption, design and implementation defects or human error. Disruption or failure of business operations and information technology systems could harm our facilities or otherwise adversely impact our ability to safely deliver natural gas to our customers, serve our customers effectively or manage our assets. Additionally, an attack on, or failure of, information technology systems could result in the unauthorized release of customer, employee or other confidential or sensitive data. Cyberattacks, ransomware, terrorism or other malicious acts could damage, destroy or disrupt these systems for an extended period of time. The energy sector, including natural gas utility companies, has become the subject of cyberattacks with increased frequency.

Additionally, the facilities and systems of clients, suppliers and third-party service providers could be vulnerable to the same cyber or terrorism risks as our facilities and systems, and such third-party systems may be interconnected to our systems both physically and technologically. Therefore, an event caused by cyberattacks, ransomware or other malicious acts at an interconnected third party could impact our business and facilities. Any failure or unexpected or unauthorized use of technology systems could result in the unavailability of such systems, and could result in a loss of operating revenues, an increase in operating expenses and costs to repair or replace damaged assets. Any of the above could also result in the loss or release of confidential customer and/or employee information or other proprietary data that could adversely affect our reputation and competitiveness, could result in costly litigation and could negatively impact our results of operations. These cyberattacks have become more common and sophisticated and, as such, we could be required to incur costs to strengthen our systems and respond to emerging concerns.

There is no guarantee that redundancies built into our networks and technology, or the procedures we have implemented to protect against cyberattacks and other unauthorized access to secured data, will guarantee protection against all failures of technology or security breaches. Furthermore, despite our efforts to investigate, improve and remediate the capability and performance of our information technology system, we may not be able to discover all weaknesses, breaches and vulnerabilities, and failure to do so may expose us to higher risk of data loss and adversely affect our business operations and results of operations.

Failure to keep pace with technological change may limit customer growth and have an adverse effect on our operations. Advances in technology and changes in laws or regulations are reducing the cost of alternative methods of producing and/or consuming energy. In addition, customers are increasingly expecting enhanced communications regarding their electric and natural gas services, which, in some cases, may involve additional investments in technology. Our future success will depend, in part, on our ability to anticipate and successfully adapt to technological changes and to offer services that meet customer demand. Failure to adapt to advances in technology and manage the related costs could make us less competitive and negatively impact our financial condition, results of operations and cash flows.

Page 19

New Jersey Resources Corporation

Part I

ITEM 1A. RISK FACTORS (Continued)                                                                                                                                      

Risks Related to Regulations and Litigation

We are subject to governmental regulation. Compliance with current and future regulatory requirements and procurement of necessary approvals, permits and certificates may result in substantial costs to us. We are subject to substantial regulation from federal, state and local authorities. We are required to comply with numerous laws and regulations and to obtain numerous authorizations, permits, approvals and certificates from governmental agencies. These agencies regulate various aspects of our business, including customer rates, services, construction and natural gas pipeline operations.

FERC has regulatory authority over some of our operations, including sales of natural gas in the wholesale and retail markets and the purchase and sale of interstate pipeline and storage capacity, including Steckman Ridge, Leaf River and Adelphia. Any Congressional legislation or agency regulation that would alter these or other similar statutory and regulatory structures in a way to significantly raise costs that could not be recovered in rates from customers, that would reduce the availability of supply or capacity or that would reduce our competitiveness could negatively impact our earnings. In addition, changes in and compliance with laws such as the Pipeline Safety, Regulatory Certainty and Job Creation Act of 2011 could increase federal regulatory oversight and administrative costs that may not be recovered in rates from customers, which could have an adverse effect on our earnings.

We cannot predict the impact of any future revisions or changes in interpretations of existing regulations or the adoption of new laws and applicable regulations. Changes in regulations or the imposition of additional regulations could influence our operating environment and may result in substantial costs to us.

Our regulated operations are subject to certain operating risks incidental to handling, storing, transporting and providing customers with natural gas. Our regulated operations are subject to all operating hazards and risks incidental to handling, storing, transporting and providing customers with natural gas, including our natural gas vehicle refueling stations and LNG facilities. These risks include catastrophic failure of the interstate pipeline system, explosions, pollution, release of toxic substances, fires, storms, safety issues and other adverse weather conditions and hazards, each of which could result in damage to or destruction of facilities or damage to persons and property. We could suffer substantial losses should any of these events occur. Although we maintain insurance coverage, insurance may not be sufficient to cover all material expenses related to these risks, and such insurance may be costly.

We are involved in legal or administrative proceedings before various courts and governmental bodies that could adversely affect our results of operations, cash flows and financial condition. In the ordinary conduct of business, we are involved in legal or administrative proceedings before various courts and governmental bodies with respect to general claims, rates, permitting, taxes, environmental issues, natural gas cost prudence reviews and other matters. Adverse decisions regarding these matters, to the extent they require us to make payments in excess of amounts provided for in our financial statements or are not covered by insurance or indemnity rights, could adversely affect our results of operations, cash flows and financial condition.

Our costs of compliance with present and future environmental laws are significant and could adversely affect our cash flows and profitability. Our operations are subject to federal, state and local environmental statutes, rules and regulations relating to air quality, water quality, waste management, natural resources and site remediation. Compliance with these laws and regulations may require us to expend financial resources to, among other things, conduct site remediation and perform environmental monitoring. If we fail to comply with applicable environmental laws and regulations, even if we are unable to do so due to factors beyond our control, we may be subject to civil liabilities or criminal penalties and may be required to incur expenditures to come into compliance. Additionally, any alleged violations of environmental laws and regulations may require us to expend resources in our defense against alleged violations.

Furthermore, the U.S. Congress has for some time been considering various forms of climate change legislation. In addition, in July 2019, the State of New Jersey amended the GWRA, which targets 80% reduction in greenhouse gas emissions below 2006 levels economy-wide by 2050. In January 2020, New Jersey released the EMP confirming its commitment to achieve 100% clean energy by 2050, and the GWRA mandate of reducing state greenhouse gas emissions. The EMP addressed New Jersey’s energy system, including electric generation, transportation and buildings, and their associated greenhouse gas emissions and related air pollutants. The EMP defines 100% clean energy by 2050 to mean 100% carbon-neutral electric generation and maximum electrification of the transportation and building sectors, which are the greatest carbon emission-producing sectors in the state, to meet or exceed the GWRA emissions reductions by 2050. Our goals, to reduce our New Jersey operational emissions by 60% from 2006 levels by 2030 and to achieve net-zero carbon emissions from our New Jersey operations by 2050, may require additional technological, legislative and regulatory developments, the impacts and costs of which may not be fully known at this time.

Page 20

New Jersey Resources Corporation

Part I

ITEM 1A. RISK FACTORS (Continued)                                                                                                                                      

While the EMP does not place a moratorium or end date on natural gas hook ups, further legislation or rulemaking that de-emphasizes the role of natural gas in providing clean, low-cost energy in the state of New Jersey could put upward pressure on natural gas prices and place customer growth targets at risk. Higher cost levels could impact the competitive position of natural gas and negatively affect our growth opportunities, cash flows and earnings.

In February 2023, the Governor of New Jersey issued two executive orders that established, or accelerated, previously established 2050 targets for clean-sourced electricity and electric heat pump adoption, with target dates of 2030 or 2035, as applicable. An additional executive order opened a proceeding to plan for the future of natural gas utilities in New Jersey. We are unable to predict the outcomes of these proceedings, but they could have a material impact on our business, results of operations and cash flows.

Risks related to regulation could affect the rates we are able to charge, various costs and our profitability. NJNG is subject to regulation by federal, state and local authorities. These authorities regulate many aspects of NJNG’s distribution and transmission operations, including construction and maintenance of facilities, operations, safety, tariff rates that NJNG can charge customers, rates of return, the authorized cost of capital, recovery of pipeline replacement, environmental remediation costs and relationships with its affiliates. NJNG’s ability to timely construct rate-based assets and obtain rate increases, including base rate increases, continue its BGSS incentive and CIP programs and maintain its currently authorized rates of return may be impacted by events, including regulatory or legislative actions. Additionally, in fiscal 2019, NJR began the process of transitioning away from its enterprise platform, which will no longer receive extended support after 2025. The first phase of IT enhancements and upgrades were placed into service in July 2020. The remaining phases of planned upgrades relate to work order and asset management and customer information systems and experience, which are expected to require significant capital investment. There can be no assurance that NJNG will be able to obtain rate increases and continue its BGSS incentive, CIP, RAC, or SAVEGREEN programs and IT upgrades and enhancements or continue to earn its currently authorized rates of return.

Adelphia is subject to regulation by FERC. FERC regulates many aspects of Adelphia’s transmission operations, including construction and maintenance of facilities, operations, safety tariff rates that Adelphia can charge customers, rates of return, the authorized cost of capital, recovery of pipeline replacement and relations with its affiliates. Adelphia’s ability to obtain rate increases and maintain its currently authorized rates of return may be impacted by events, including regulatory or legislative actions. There can be no assurance that Adelphia will be able to obtain rate increases or continue to earn its currently authorized rate of return.

Risks Related to Our Markets

Major changes in the supply and price of natural gas may affect financial results. While NJRES and NJNG expect to meet customers’ demand for natural gas for the foreseeable future, factors affecting suppliers and other third parties, including the inability to develop additional interstate pipeline infrastructure, lack of supply sources, increased competition, further deregulation, transportation costs, possible climate change legislation, energy efficiency mandates or changes in consumer behaviors, transportation availability and drilling for new natural gas resources, may impact the supply and price of natural gas. In addition, any significant disruption in the availability of supplies of natural gas could result in increased supply costs, higher prices for customers and potential supply disruptions to customers.

NJRES and NJNG actively hedge against the fluctuation in the price of natural gas by entering into forward and financial contracts with third parties. Should these third parties fail to perform, and regulators not allow the pass-through of expended funds to customers, it may result in a loss that could have a material impact on our financial condition, results of operations and cash flows.

Supply chain disruptions may adversely affect Company operations. The Company relies on third-party vendors and manufacturers to supply many of the materials necessary for its operations. Global logistics disruptions have impacted the flow of materials and restricted global trade flows. Manufacturers are competing for a limited supply of key commodities and logistical capacity, which has impacted lead times, pricing, supply and demand. Disruptions or delays in receiving materials; price increases from suppliers or manufacturers; or the inability to source needed materials, which has occurred and could reoccur, could adversely affect the Company’s results of operations, financial condition and cash flows.

Page 21

New Jersey Resources Corporation

Part I

ITEM 1A. RISK FACTORS (Continued)                                                                                                                                      

Changes in customer growth may affect earnings and cash flows. NJNG’s ability to increase its Utility Gross Margin is dependent upon the new construction housing market, as well as the conversion of customers to natural gas from other fuel sources. During periods of extended economic downturns, prolonged weakness in housing markets or slowdowns in the conversion market, there could be an adverse impact on NJNG’s Utility Gross Margin, earnings and cash flows. Furthermore, while our estimates regarding customer growth are based in part upon information from third parties, the estimates have not been verified by an independent source and are subject to the aforementioned risks and uncertainties, which could cause actual results to materially deviate from the estimates.

Our economic hedging activities that are designed to protect against commodity and financial market risks, including the use of derivative contracts in the normal course of our business, may cause fluctuations in reported financial results and financial losses that negatively impact results of operations and our stock price. We use derivatives, including futures, forwards, options, and swaps, to manage commodity and financial market risks. The timing of the recognition of gains or losses associated with our economic hedges in accordance with GAAP does not always coincide with the gains or losses on the items being hedged. The difference in accounting can result in volatility in reported results, even though the expected profit margin is essentially unchanged from the dates the transactions were consummated.

In addition, we could recognize financial losses on these contracts as a result of volatility in the market values of the underlying commodities or if a counterparty fails to perform under a contract. In the absence of actively quoted market prices and pricing information from external sources, the valuation of these financial instruments can involve management’s judgment or use of estimates. As a result, changes in the underlying assumptions or use of alternative valuation methods could adversely affect the value of the reported fair value of these contracts.

We are exposed to market risk and may incur losses in our wholesale business. Our transportation and storage portfolios consist of contracts to transport and store natural gas. The value of our transportation and storage portfolio could be negatively impacted if the value of these contracts changes in a direction or manner that we do not anticipate. In addition, upon expiration of these transportation and storage contracts, to the extent that they are renewed or replaced at less favorable terms, our results of operations and cash flows could be adversely affected.

Inflation and increased natural gas costs could adversely impact our customer base and customer collections and increase the Company’s level of indebtedness. Inflation has caused, and may continue to cause, increases in certain operating and capital costs. Our regulated businesses have a process in place to review the adequacy of their rates in relation to the increasing cost of providing service and the inherent regulatory lag in adjusting those rates. The ability to control expenses is an important factor that will influence future results.

Rapid increases in the price of purchased gas may cause the Company to experience a significant increase in short-term debt because it must pay suppliers for gas when it is purchased, which can be significantly in advance of when these costs may be recovered through the collection from customers and counterparties for gas delivered. Increases in purchased gas costs could also slow collection efforts as NJNG customers may be more likely to delay the payment of their gas bills, leading to higher-than-normal accounts receivable. This situation could also result in higher short-term debt levels and increased bad debt expense.

Risks Related to Acquisition and Investment Strategies

Any acquisitions that we may undertake involve risks and uncertainties. We may not realize the anticipated synergies, cost savings and growth opportunities as a result of these transactions. The integration of acquisitions requires significant time and resources. Investments of resources are required to support any acquisition, which could result in significant ongoing operating expenses, and we may experience challenges when combining separate business cultures, information technology systems and employees, and those challenges may divert senior management’s time and attention. If we fail to successfully integrate assets and liabilities through the entities which we acquire, we may not fully realize all of the growth opportunities, benefits expected from the transaction, cost savings and other synergies and, as a result, the fair value of assets acquired could be impaired. We assess long-lived assets, including intangible assets associated with acquisitions, for impairment whenever events or circumstances indicate that an asset’s carrying amount may not be recoverable. To the extent the value of long-lived assets becomes impaired, the impairment charges could have a material impact on our financial condition and results of operations.

The benefits that we expect to achieve from acquisitions will depend, in part, on our ability to realize anticipated growth opportunities and other synergies with our existing businesses. The success of these transactions will depend on our ability to integrate these transactions within our existing businesses in a timely and seamless manner. Even if we are able to complete an integration successfully, we may not fully realize all the growth opportunities, cost savings and other synergies that we expect.

Page 22

New Jersey Resources Corporation

Part I

ITEM 1A. RISK FACTORS (Continued)                                                                                                                                      

Investing through partnerships or joint ventures decreases our ability to manage risk. We have utilized joint ventures through partnerships for certain S&T investments. Although we currently have no specific plans to do so, we may acquire interests in other joint ventures or partnerships in the future. In these joint ventures or partnerships, we may not have the right or power to direct the management and policies of the joint ventures or partnerships, and other participants or investors may take action contrary to our instructions or requests and against our policies and objectives. In addition, the other participants may become bankrupt or have economic or other business interests or goals that are inconsistent with those of NJR and our subsidiaries and affiliates. Our financial condition, results of operations or cash flows could be harmed if a joint venture participant acts contrary to our interests.

Risks Related to Credit and Liquidity

NJR is a holding company and depends on its operating subsidiaries to meet its financial obligations. NJR is a holding company with no significant assets other than possible cash investments and the stock of its operating subsidiaries. We rely exclusively on dividends from our subsidiaries, on intercompany loans from our unregulated subsidiaries and on the repayments of principal and interest from intercompany loans and reimbursement of expenses from our subsidiaries for our cash flows. Our ability to pay dividends on our common stock and to pay principal and interest on our outstanding debt depends on the payment of dividends to us by our subsidiaries or the repayment of loans to us by our subsidiaries. The extent to which our subsidiaries are unable to pay dividends or repay funds to us may adversely affect our ability to pay dividends to holders of our common stock and principal and interest to holders of our debt.

Credit rating downgrades could increase financing costs, limit access to the financial markets and negatively affect NJR and its subsidiaries. Rating agencies Moody’s and Fitch currently rate NJNG’s debt as investment grade. If such ratings are downgraded below investment grade, borrowing costs could increase, as would the costs of maintaining certain contractual relationships and obtaining future financing. Even if ratings are downgraded without falling below investment grade, NJR and NJNG could face increased borrowing costs under their current and future credit facilities. Our ability to borrow and costs of borrowing have a direct impact on our subsidiaries’ ability to execute their operating strategies, particularly in the case of NJNG, which relies heavily upon capital expenditures financed by its credit facility.

If we suffer a reduction in our credit and borrowing capacity or in our ability to issue parental guarantees, the business prospects of ES, CEV and S&T, which rely on our creditworthiness, would be adversely affected. ES could possibly be required to comply with various margin or other credit enhancement obligations under its trading and marketing contracts, and it may be unable to continue to trade or be able to do so only on less favorable terms with certain counterparties. CEV could be required to seek alternative financing for its projects and may be unable to obtain such financing or able to do so only on less favorable terms.

Additionally, lower credit ratings could adversely affect relationships with NJNG’s state regulators, who may be unwilling to allow NJNG to pass along increased costs to its natural gas customers.

If we are unable to access the financial markets or there are adverse conditions in the equity or credit markets, including, but not limited to, inflationary pressures, recessionary pressures or rising interest rates, it could affect management’s ability to execute our business plans. We rely on access to both short-term and long-term credit markets as significant sources of liquidity for capital requirements not satisfied by our cash flow from operations. Any deterioration in our financial condition could hamper our ability to access the equity or credit markets or otherwise obtain debt financing on terms favorable to us or at all. In addition, because certain state regulatory approvals may be necessary for NJNG to incur debt, NJNG may be unable to access credit markets on a timely basis.

General economic factors beyond our control might create uncertainty that could increase our cost of capital or impair or eliminate our ability to access the debt, equity or credit markets, including our ability to draw on bank credit facilities. External events could also increase the cost of borrowing or adversely affect our ability to access the financial markets. Such external events could include the following:

•economic weakness and/or political instability in the U.S. or in the regions where we operate;

•political conditions, such as a shutdown of the U.S. federal government;

•financial difficulties of unrelated energy companies;

•capital market conditions generally;

•volatility in the equity markets;

•market prices for natural gas;

•the overall health of the natural gas utility industry; and

•fluctuations in interest rates and increased borrowing costs.

Page 23

New Jersey Resources Corporation

Part I

ITEM 1A. RISK FACTORS (Continued)                                                                                                                                      

Failure by NJR and/or NJNG to comply with debt covenants may impact our financial condition. Our long-term debt obligations contain financial covenants related to debt-to-capital ratios. These debt obligations also contain provisions that put limitations on our ability to finance future operations or capital needs or to expand or pursue certain business activities. For example, certain of these agreements contain provisions that, among other things, put limitations on our ability to make loans or investments, make material changes to the nature of our businesses, merge, consolidate or engage in asset sales, grant liens or make negative pledges. Furthermore, the debt obligations and our sale leaseback agreements contain covenants and other provisions requiring us to provide timely delivery of accurate financial statements prepared in accordance with GAAP. The failure to comply with any of these covenants could result in an event of default, which, if not cured or waived, could result in the acceleration of outstanding debt obligations and/or the inability to borrow under existing revolving credit facilities and term loans. We have relied, and continue to rely, upon short-term bank borrowings or commercial paper supported by our revolving credit facilities to finance the execution of a portion of our operating strategies. NJNG is dependent on these capital sources to purchase its natural gas supply and maintain its properties. The acceleration of our outstanding debt obligations and our inability to borrow under the existing revolving credit facilities would cause a material adverse change in NJR’s and NJNG’s financial condition.

Our ability to secure short-term financing is subject to conditions in the credit markets. A prolonged constriction of credit availability could affect management’s ability to execute our business plan. An inability to access capital may limit our ability to pursue improvements or acquisitions that we may otherwise rely on for both current operations and future growth. ES and NJNG execute derivative transactions with financial institutions as a part of their economic hedging strategy and could incur losses associated with the inability of a financial counterparty to meet or perform under its obligations as a result of adverse conditions in the credit markets or their ability to access capital or post collateral.

Risks Related to Tax and Accounting Matters

The cost of providing pension and postemployment health care benefits to employees and eligible former employees is subject to changes in pension fund values, interest rates and changing demographics and may have a material adverse effect on our financial results. We have two defined benefit pension plans and two OPEB plans for the benefit of eligible full-time employees and qualified retirees, which were closed to all employees hired on or after January 1, 2012. The cost of providing these benefits to eligible current and former employees is subject to changes in the market value of the pension and OPEB fund assets, changing discount rates and changing actuarial assumptions based upon demographics, including longer life expectancy of beneficiaries, an expected increase in the number of eligible former employees over the next five years, impacts from healthcare legislation and increases in health care costs.

Significant declines in equity markets and/or reductions in bond yields can have a material adverse effect on the funded status of our pension and OPEB plans. In these circumstances, we may be required to recognize increased pension and OPEB expenses and/or be required to make additional cash contributions into the plans.

The funded status of these plans, and the related cost reflected in our financial statements, are affected by various factors that are subject to an inherent degree of uncertainty. Under the Pension Protection Act of 2006, losses of asset values may necessitate increased funding of the plans in the future to meet minimum federal government requirements. A significant decrease in the asset values of these plans can result in funding obligations earlier than we had originally planned, which would have a negative impact on cash flows from operations, decrease our borrowing capacity and increase our interest expense.

Changes in tax laws, rates or adverse outcomes resulting from examinations by tax authorities may negatively affect our results of operations, net income, financial condition and cash flows. We are subject to taxation and audit by various taxing authorities at the federal, state and local levels. We cannot predict how our federal and state regulators will apply such tax changes in our future rates. While we believe we comply with all applicable tax laws, rules and regulations in the relevant jurisdictions, tax authorities may elect to audit us and determine that we owe additional taxes, which could result in a significant increase in our liabilities for taxes, interest and penalties in excess of our accrued liabilities.

New tax legislative initiatives may be proposed from time to time, such as proposals for comprehensive tax reform in the U.S., which may impact our effective tax rate and which could adversely affect our tax positions or tax liabilities. Any revaluation of our deferred tax attributes that may be required in the future could have a material adverse impact on our financial condition and results of operations.

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Part I

ITEM 1A. RISK FACTORS (Continued)                                                                                                                                      

Significant regulatory assets recorded by our regulated companies could be disallowed for recovery from customers in the future. NJNG records regulatory assets on its financial statements to reflect the ratemaking and regulatory decision-making authority of the BPU as allowed by GAAP. The creation of a regulatory asset allows for the deferral of costs, which, absent a mechanism to recover such costs from customers in rates approved by the BPU, would be charged to expense on its income statement in the period incurred. Primary regulatory assets that are subject to BPU approval include the recovery of BGSS and USF costs, remediation costs associated with NJNG’s MGP sites, CIP, NJCEP, economic stimulus plans, certain deferred income taxes and pension and OPEB. If there were to be a change in regulatory positions surrounding the collection of these deferred costs, there could be a material impact on NJNG’s existing tariff or a future base rate case, as well as our financial condition, results of operations and cash flows.

Adelphia records regulatory assets on its financial statements to reflect the ratemaking and regulatory decision-making authority of FERC as allowed by GAAP. The creation of a regulatory asset allows for the deferral of costs, which, absent a mechanism to recover such costs from customers in rates approved by FERC, would be recorded as a charge to earnings on its Statement of Operations in the period incurred. If there were to be a change in regulatory positions surrounding the collection of these deferred costs, there could be a material impact on Adelphia’s existing rates or a future rate case, as well as our financial condition, results of operations and cash flows.

Risks Related to Takeovers

Our restated certificate of incorporation, as amended, and amended and restated bylaws may delay or prevent a transaction that shareowners would view as favorable. Our restated certificate of incorporation, as amended, and amended and restated bylaws, as well as New Jersey law, contain provisions that could delay, defer or prevent an unsolicited change in control of NJR, which may negatively affect the market price of our common stock or the ability of stockholders to participate in a transaction in which they might otherwise receive a premium for their shares over the then-current market price. These provisions may also prevent changes in management. In addition, our Board is authorized to issue preferred stock without stockholder approval on such terms as our Board may determine. Our common shareowners will be subject to, and may be negatively affected by, the rights of any preferred stock that may be issued in the future. In addition, we are subject to the New Jersey Shareholders’ Protection Act, which could delay or prevent a change of control of NJR.

We may also be subject to actions or proposals from activist investors or others that may not be aligned with our long-term strategy or the interests of our other stockholders. This may interfere with our ability to execute our strategic plans, cause uncertainty with our regulators and make it more difficult to attract and retain qualified personnel. Moreover, our stock price could be subject to significant fluctuation or otherwise be adversely affected by the events, risks and uncertainties of any investor activism.

ITEM 1B. UNRESOLVED STAFF COMMENTS                                                                                                                       

None

ITEM 1C. CYBERSECURITY                                                                                                                                                       

Cybersecurity Risk Management and Strategy

The Company’s Enterprise Risk Assessment process, performed by management annually, is designed to identify significant risks relevant to the Company and to determine both their potential impacts and the rate at which the risk may manifest. Cybersecurity is among the top tier risks identified in our risk assessment. Risk mitigation efforts are embedded in the Company’s operating procedures, internal controls and information systems.

The Company periodically examines its cybersecurity measures, including information technology controls, information security maturity assessments and operating effectiveness. These assessments can be performed through third-party assessments, penetration tests or internal assessments. Assessment results are reported to the Audit Committee and the Board of Directors, and the Company may make modifications to its cybersecurity policies, standards, processes and practices as necessary based on the information provided by these assessments and reviews.

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New Jersey Resources Corporation

Part I

ITEM 1C. CYBERSECURITY (Continued)                                                                                                                                 

Key components of our cybersecurity risk management program include:

•risk assessments designed to help identify cybersecurity risks to our critical systems, information, services and broader technology environment;

•the use of external service providers with specific expertise, where appropriate, to assess, test or otherwise assist with aspects of our security processes;

•evaluating, and where appropriate, implementing effective, up-to-date technologies and processes to enhance our cybersecurity capabilities;

•mandatory cybersecurity awareness training for our employees, including incident response personnel and senior management, as well as periodic experiential learning through phishing simulations;

•risk assessments of third-party suppliers and incorporating cybersecurity contractual stipulations in our supplier contracts if deemed necessary;

•physical security around sensitive infrastructure and critical cyber systems; and

•intelligence sharing about emerging threats through collaboration with peer companies and government intelligence agencies.

Enterprise-wide, proactive cybersecurity risk mitigation is imperative to the Company. The Company’s cybersecurity efforts and programs align with the National Institute of Standards and Technology’s Cybersecurity Framework and meet or exceed the requirements set forth by the BPU. We also utilize the Cybersecurity Capability Maturity Model, or C2M2, from the U.S. Department of Energy to evaluate and improve our cybersecurity processes and programs for our critical infrastructure.

The information set forth under Part I, Item 1A. Risk Factors - Risks Related to Technologies of this Annual Report on Form 10-K is hereby incorporated by reference. As of September 30, 2024, our financial position, results of operations, cash flows or business strategy have not been materially affected by risks from cybersecurity threats. However, the Company cannot provide assurance that we will not be materially affected in the future by such risks or any future material incidents.

Cybersecurity Governance

Cybersecurity risk oversight is a responsibility of the Board of Directors. The Board of Directors, through the Audit Committee, provides oversight for matters related to the security of information technology systems and procedures, including data privacy and cybersecurity and related risks.

The Audit Committee oversees the Company’s security risk management practices, including overseeing the practices, procedures, and controls that management uses to identify, assess, respond to, remediate, and mitigate risks related to cybersecurity. Senior leadership, including the Senior Vice President and CIO, updates the Audit Committee and the Board of Directors at least quarterly regarding cybersecurity risks, strategies and policies.

The Company’s management is responsible for identifying, managing and mitigating cybersecurity risk and communicating cybersecurity risks facing the Company to the Audit Committee and Board of Directors.

As part of its cybersecurity risk management program, the Company leverages its cybersecurity organization, led by the Company’s Managing Director of Information Security, to design and implement cybersecurity controls and to assess and report on cybersecurity risks. Members of the cybersecurity organization hold relevant degrees or industry-recognized certifications in cybersecurity, with relevant work experience in various roles involving managing information security, developing cybersecurity strategy and implementing effective information and cybersecurity programs. The members of the cybersecurity organization are expected to keep their knowledge, skills and training current by participating in industry events and continuing education programs as applicable.

The Company also maintains an internal Cyber Resiliency Committee, which includes members of senior management from Information Technology, Cybersecurity, Enterprise Risk Management, Internal Audit, Corporate Communications, Legal, Finance and Corporate Physical Security. The Managing Director of Information Security chairs this committee, which is responsible for the following:

•establishing cybersecurity policies and standards that align with our corporate objectives and regulatory requirements;

•monitoring compliance with cybersecurity policies and standards across the organization;

•ensuring that cybersecurity strategies are integrated with the organization’s overall governance structure;

•reviewing and approving significant cybersecurity investments and initiatives;

•providing guidance on cybersecurity risk tolerance levels and ensuring that cybersecurity risks are communicated to the Audit Committee and Board of Directors; and

•facilitating cross-departmental collaboration to address cybersecurity challenges and responses.

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New Jersey Resources Corporation

Part I

ITEM 1C. CYBERSECURITY (Continued)                                                                                                                                 

Through this ongoing engagement with these internal teams and certain third-party service providers, our CIO and our Managing Director of Information Security monitor the prevention, detection, mitigation and remediation of cybersecurity threats and incidents and report on cybersecurity incidents. The Company has a notification process in our incident response plan that contains requirements for timely notification to senior management by the CIO and to the Board of Directors by the CEO for incidents that reach established thresholds as well as procedures for external reporting.

The Company’s Managing Director of Information Security has more than 25 years of cybersecurity experience throughout various industries, including the utility sector, and reports directly to the Company’s Senior Vice President and CIO. The Senior Vice President and CIO, who has over 30 years of work experience in the information technology field, is responsible for the Company’s information technology program and oversees the management and development of all business technology and security for the Company and its subsidiaries. The Senior Vice President and CIO is also responsible for compliance with applicable federal standards and critical infrastructure protection and reports to the Company’s President and CEO.

ITEM 2. PROPERTIES                                                                                                                                                                   

Natural Gas Distribution

As of September 30, 2024, NJNG owns approximately 7,425 miles of distribution main, 7,868 miles of service main and 244 miles of transmission main, and operates more than 600,000 meters. Mains are primarily located under public roads. Where mains are located under private property, NJNG has obtained easements from the owners of record.

Additionally, NJNG owns and operates two LNG storage plants in Stafford Township, Ocean County and Howell Township, Monmouth County. The two LNG plants have an aggregate estimated maximum capacity of approximately 170,000 Dths per day and 1 Bcf of total capacity. These facilities are used for peaking natural gas supply and for emergencies. NJNG’s Liquefaction facility is also located on the Howell Township property and allows NJNG to convert natural gas into LNG to fill NJNG’s existing LNG storage tanks. A Power-to-Gas System is also located at the LNG plant in Howell Township that uses solar power to produce hydrogen and then injects it into the natural gas system. It consists primarily of an electrolyzer unit, an electrical and instrumentation building and small hydrogen storage tank, along with other supporting systems.

NJNG owns five service centers located in Rockaway Township, Morris County; Atlantic Highlands and Wall Township, Monmouth County; and Lakewood and Stafford Township, Ocean County. These service centers house storerooms, garages, natural gas distribution and administrative offices. NJNG leases a customer service office in Asbury Park, Monmouth County. These customer service offices support customer contact, marketing, economic development and other functions. NJNG also owns its headquarters and customer service facilities in Wall Township, Monmouth County and a training facility in Howell Township, Monmouth County to support the technical training of its employees.

Substantially all of NJNG’s properties not expressly excepted or duly released are subject to the lien of the Mortgage Indenture as security for NJNG’s mortgage bonds, which totaled $1.6B as of September 30, 2024. In addition, under the terms of the Mortgage Indenture, NJNG had capacity to issue up to $1.4B of additional FMBs as of September 30, 2024.

Clean Energy Ventures

As of September 30, 2024, CEV has various solar contracts, including lease agreements and easements, allowing the installation, operation and maintenance of solar equipment and access to the various properties, including commercial and residential rooftops throughout the State of New Jersey. In addition to the lease agreements and easements, CEV owns solar projects with a total of 477 MW of capacity in Connecticut, Indiana, Michigan, New Jersey, New York, and Rhode Island, and 79.5 acres of land in Vineland, 14.4 acres of land in Upper Deerfield Township and 101.8 acres of land in Fairfield Township, Cumberland County, New Jersey. CEV also leases office space in Wall Township, New Jersey.

Energy Services

As of September 30, 2024, ES leases office space in Wall Township, New Jersey.

Storage and Transportation

As of September 30, 2024, Adelphia owns approximately 32.71 acres of land in Bucks County, 11.1 acres in Delaware County, 121.1 acres in Northampton County and 44.9 acres in Montgomery County, Pennsylvania and leases office space in Wall Township, New Jersey. Leaf River owns 3.5 acres of land in Clarke County, 158.5 acres in Jasper County, 36.5 acres and a 5,000 square foot building in Smith County, Mississippi and leases office space in Houston, Texas.

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New Jersey Resources Corporation

Part I

ITEM 2. PROPERTIES (Continued)                                                                                                                                             

All Other Business Operations

As of September 30, 2024, CR&R’s real estate portfolio consists of 23.1 acres of undeveloped land in Atlantic County, New Jersey. NJRHS leases service centers in Dover and Wall Township, New Jersey. NJR Service Corporation leased office space in Red Bank, New Jersey, which expired April 30, 2024.

ITEM 3. LEGAL PROCEEDINGS                                                                                                                        

Manufactured Gas Plant Remediation

NJNG is responsible for the remedial cleanup of certain former MGP sites, dating back to gas operations in the late 1800s and early 1900s, which contain contaminated residues from former gas manufacturing operations. NJNG is currently involved in administrative proceedings with the NJDEP, and participating in various studies and investigations by outside consultants, to determine the nature and extent of any such contaminated residues and to develop appropriate programs of remedial action, where warranted, under NJDEP regulations.

NJNG periodically, and at least annually, performs an environmental review of former MGP sites located in Atlantic Highlands, Berkeley, Long Branch, Manchester, Toms River, Freehold and Aberdeen, New Jersey, including a review of potential liability for investigation and remedial action. NJNG estimated at the time of the most recent review that total future expenditures at the former MGP sites for which it is responsible, including potential liabilities for natural resource damages that might be brought by the NJDEP for alleged injury to groundwater or other natural resources concerning these sites, will range from approximately $130.9M to $194.6M. NJNG’s estimate of these liabilities is based upon known facts, existing technology and enacted laws and regulations in place when the review was completed. Where it is probable that costs will be incurred, and the information is sufficient to establish a range of possible liability, NJNG accrues the most likely amount in the range. If no point within the range is more likely than the other, it is NJNG’s policy to accrue the lower end of the range. Accordingly, as of September 30, 2024, NJNG recorded a MGP remediation liability and a corresponding regulatory asset of approximately $161.7M on the Consolidated Balance Sheets based on the most likely amount. The actual costs to be incurred by NJNG are dependent upon several factors, including final determination of remedial action, changing technologies and governmental regulations, the ultimate ability of other responsible parties to pay and insurance recoveries, if any. NJNG recovers its remediation expenditures, including carrying costs, over rolling seven-year periods pursuant to a RAC approved by the BPU.

As of September 30, 2024, $77.5M of previously incurred remediation costs, net of recoveries from customers and insurance proceeds, are included in regulatory assets on the Consolidated Balance Sheets. NJNG will continue to seek recovery of MGP-related costs through the RAC. If any future regulatory position indicates that the recovery of such costs is not probable, the related non-recoverable costs would be charged to income in the period of such determination.

General

The foregoing statements about NJR’s litigation are based upon the Company’s judgments, assumptions and estimates and are necessarily subjective and uncertain. The Company is involved, and from time to time in the future may be involved, in a number of pending and threatened judicial, regulatory and arbitration proceedings at various stages relating to matters that arise in the ordinary course of business. In view of the inherent difficulty of predicting the outcome of litigation matters, particularly when such matters are in their early stages or where the claimants seek indeterminate damages, the Company cannot state with confidence what the eventual outcome of the pending litigation will be, what the timing of the ultimate resolution of these matters will be or what the eventual loss, fines or penalties related to each pending matter will be, if any. In accordance with applicable accounting guidance, NJR establishes accruals for litigation for those matters that present loss contingencies as to which it is both probable that a loss will be incurred, and the amount of such loss can be reasonably estimated. NJR also discloses contingent matters for which there is a reasonable possibility of a loss. Based upon currently available information, NJR believes that the results of litigation that are currently pending, taken together, will not have a materially adverse effect on the Company’s financial condition, results of operations or cash flows. The actual results of resolving the pending litigation matters may be substantially different from the amounts accrued.

ITEM 4. MINE SAFETY DISCLOSURES                                                                                                                                   

Not applicable

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Part II

ITEM 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND

ISSUER PURCHASES OF EQUITY SECURITIES                                                                                                                    

NJR’s Common Stock is traded on the New York Stock Exchange under the ticker symbol NJR. As of November 7, 2024, NJR had 81,251 holders of record of its common stock. Dividends are subject to declaration by the Board of Directors. In September 2024, the Board of Directors declared dividends payable October 1, 2024 of $0.45 per share of common stock to shareowners of record on September 23, 2024. We review our dividend policy on a regular basis. Although subject to any contractual or regulatory restrictions or other limitations on the payment of dividends, future dividends will be at the discretion of the Board of Directors and will depend upon earnings, financial condition and other factors.

Performance Graph

The performance graph and table below illustrates a five-year comparison of cumulative total returns based on an initial investment of $100 in our common stock, as compared with the S&P 500 Stock Index, the S&P 500 Utilities Industry Index and the customized peer company group listed below, referred to herein as the Peer Group. The Peer Group companies were selected based on similarities to the Company’s business model, size and other growth and business factors.

Cumulative Total Return	2019	2020	2021	2022	2023	2024
NJR	$100.00	$62.22	$83.03	$95.61	$103.75	$125.26
S&P 500 Utilities	$100.00	$95.03	$105.49	$111.38	$103.56	$146.87
S&P 500	$100.00	$115.15	$149.70	$126.54	$153.89	$209.83
Peer Group	$100.00	$76.86	$83.84	$93.64	$90.75	$118.98

The nine companies in the Peer Group are: Atmos Energy Corporation; Avista Corporation; Black Hills Corporation; National Fuel Gas Company; NiSource Inc.; Northwest Natural Holding Company; ONE Gas, Inc.; Southwest Gas Corporation; and Spire Inc. This performance graph and accompanying information shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or incorporated by reference into any of the Company’s filings under the Securities Act, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

In 1996, the Board of Directors authorized the Company to implement a share repurchase program, which has been expanded seven times since the inception of the program, authorizing a total of 19.5M shares of common stock for repurchase. The share repurchase plan allows us to purchase our outstanding shares on the open market or in negotiated transactions, based on market and other conditions. We are not required to purchase any specific number of shares and may discontinue or suspend the program at any time. The share repurchase plan will expire when we have repurchased all shares authorized for repurchase thereunder, unless it is terminated earlier by action of our Board of Directors or additional shares are authorized for repurchase. NJR had no repurchase activity for the quarter ended September 30, 2024.

ITEM 6. [RESERVED]

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS                                                                                                                                                                                 

CRITICAL ACCOUNTING ESTIMATES

We prepare our financial statements in accordance with GAAP. Application of these accounting principles requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingencies during the reporting period. We regularly evaluate our estimates, including those related to the calculation of the fair value of derivative instruments, acquisitions, regulatory assets, income taxes, pension and postemployment benefits other than pensions and contingencies related to environmental matters and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. In the normal course of business, estimated amounts are subsequently adjusted to actual results that may differ from estimates.

Regulatory Accounting

NJNG and Adelphia are subject to accounting requirements resulting from the effects of rate regulation. Specifically, NJNG and Adelphia record regulatory assets when it is considered probable that certain operating costs will be recoverable from customers in future periods and record regulatory liabilities when it is probable that future obligations to customers exist.

Regulatory decisions can have an impact on the recovery of costs, the rate of return earned on investment and the timing and amount of assets to be recovered by rates. For NJNG, the BPU’s regulation of rates is premised on the full recovery of prudently incurred costs and a reasonable rate of return on invested capital. Decisions to be made by the BPU in the future will impact the accounting for regulated operations, including decisions about the amount of allowable costs and return on invested capital included in rates and any refunds that may be required. If the BPU indicates that recovery of all or a portion of a regulatory asset is not probable or does not allow for recovery of and a reasonable return on investments in property, plant and equipment, a charge to income would be made in the period of such determination.

Environmental Costs

At the end of each fiscal year, NJNG, with the assistance of an independent consulting firm, updates the environmental review of its MGP sites, including its potential liability for investigation and remedial action. From this review, NJNG estimates expenditures necessary to remediate and monitor these MGP sites. NJNG’s estimate of these liabilities is developed from then-currently available facts, existing technology and current laws and regulations.

In accordance with accounting standards for contingencies, NJNG’s policy is to record a liability when it is probable that the cost will be incurred and can be reasonably estimated. NJNG will determine a range of liabilities and will record the most likely amount. If no point within the range is more likely than any other, NJNG will accrue the lower end of the range. Since we believe that recovery of these expenditures, as well as related litigation costs, is probable through the regulatory process, we record a regulatory asset corresponding to the related accrued liability. Accordingly, NJNG records an MGP remediation liability and a corresponding regulatory asset on the Consolidated Balance Sheets, which is based on the most likely amount.

The actual costs to be incurred by NJNG are dependent upon several factors, including final determination of remedial action, changing technologies and governmental regulations and the ultimate ability of other responsible parties to pay, as well as the potential impact of any litigation and any insurance recoveries. Previously incurred remediation costs, net of recoveries from customers and insurance proceeds received, are included in regulatory assets on the Consolidated Balance Sheets.

If there are changes in the regulatory position surrounding these costs, or should actual expenditures vary significantly from estimates in that these costs are disallowed for recovery by the BPU, such costs would be charged to income in the period of such determination. See the Legal Proceedings section in Note 14. Commitments and Contingent Liabilities for more details.

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Part II

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Postemployment Employee Benefits

Our costs of providing postemployment employee benefits are dependent upon numerous factors, including actual plan experience and assumptions of future experience. Postemployment employee benefit costs are affected by actual employee demographics including age, compensation levels and employment periods, the level of contributions made to the plans, changes in long-term interest rates and the return on plan assets. Changes made to the provisions of the plans or healthcare legislation may also impact current and future postemployment employee benefit costs. Postemployment employee benefit costs may also be significantly affected by changes in key actuarial assumptions, including anticipated rates of return on plan assets, changes in mortality tables, health care cost trends and discount rates used in determining the PBO. In determining the PBO and cost amounts, assumptions can change from period to period and could result in material changes to net postemployment employee benefit periodic costs and the related liability recognized.

The remeasurement of plan assets and obligations for a significant event should occur as of the date of the significant event. We may use a practical expedient to remeasure the plan assets and obligations as of the nearest calendar month-end date. When performing interim remeasurements, we obtain new asset values, roll forward the obligation to reflect population changes and review the appropriateness of all assumptions, regardless of the reason for performing the interim remeasurement.

Our postemployment employee benefit plan assets consist primarily of U.S. equity securities, international equity securities, fixed-income investments and other assets. Fluctuations in actual market returns, as well as changes in interest rates, may result in increased or decreased postemployment employee benefit costs in future periods. Postemployment employee benefit expenses are included in O&M and other income, net on the Consolidated Statements of Operations.

The following is a summary of a sensitivity analysis for each actuarial assumption as of and for the fiscal year ended September 30, 2024:

Pension Plans
Actuarial Assumptions	Increase/ (Decrease)		Estimated Increase/(Decrease) on PBO (Thousands)			Estimated Increase/(Decrease) to Expense (Thousands)
Discount rate	1.00	%		$	(34,015)		$	118
Discount rate	(1.00)	%		$	41,090		$	3,268
Rate of return on plan assets	1.00	%		n/a			$	(2,908)
Rate of return on plan assets	(1.00)	%		n/a			$	2,908

Other Postemployment Benefits
Actuarial Assumptions	Increase/ (Decrease)		Estimated Increase/(Decrease) on PBO (Thousands)			Estimated Increase/(Decrease) to Expense (Thousands)
Discount rate	1.00	%		$	(18,458)		$	(1,196)
Discount rate	(1.00)	%		$	22,102		$	1,585
Rate of return on plan assets	1.00	%		n/a			$	(1,078)
Rate of return on plan assets	(1.00)	%		n/a			$	1,078
Actuarial Assumptions	Increase/ (Decrease)		Estimated Increase/(Decrease) on PBO (Thousands)			Estimated Increase/(Decrease) to Expense (Thousands)
Health care cost trend rate	1.00	%		$	18,148		$	2,778
Health care cost trend rate	(1.00)	%		$	(15,535)		$	(2,159)

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Part II

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Acquisitions

The Company follows the guidance in ASC 805, Business Combinations, for determining the appropriate accounting treatment for acquisitions. ASU No. 2017-01, Clarifying the Definition of a Business, provides an initial fair value screen to determine if substantially all of the fair value of the assets acquired is concentrated in a single asset or group of similar assets. If the initial screening test is not met, the set is considered a business based on whether there are inputs and substantive processes in place. Based on the results of this analysis and conclusion on an acquisition’s classification of a business combination or an asset acquisition, the accounting treatment is derived.

If the acquisition is deemed to be a business, the acquisition method of accounting is applied. Identifiable assets acquired and liabilities assumed at the acquisition date are recorded at fair value. If the transaction is deemed to be an asset purchase, the cost accumulation and allocation model is used, whereby the assets and liabilities are recorded based on the purchase price and allocated to the individual assets and liabilities based on relative fair values.

The determination and allocation of fair values to the identifiable assets acquired and liabilities assumed are based on various assumptions and valuation methodologies requiring considerable management judgment. The most significant variables in these valuations are discount rates and the number of years on which to base the cash flow projections, as well as other assumptions and estimates used to determine the cash inflows and outflows. Management determines discount rates based on the risk inherent in the acquired assets and related cash flows. The valuation of an acquired business is based on available information at the acquisition date and assumptions that are believed to be reasonable. However, a change in facts and circumstances as of the acquisition date can result in subsequent adjustments during the measurement period, but no later than one year from the acquisition date.

Impairment of Long-lived Assets

Property, plant and equipment and finite-lived intangible assets are reviewed periodically for impairment when changes in facts and circumstances indicate that the carrying amount of an asset may not be fully recoverable in accordance with the appropriate accounting guidance. Factors that the Company analyzes in determining whether an impairment in its long-lived assets exists include determining if a significant decrease in the market price of a long-lived asset is present; a significant adverse change in the extent to which a long-lived asset is being used in its physical condition; legal proceedings or factors; significant business climate changes; accumulations of costs in significant excess of the amounts expected; a current-period operating or cash flow loss coupled with historical negative cash flows or expected future negative cash flows; and current expectations that more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its estimated useful life. When an impairment indicator is present, the Company determines if the carrying value of the asset is recoverable by comparing it to its expected undiscounted future cash flows. If the carrying value of the asset is greater than the expected undiscounted future cash flows, an impairment charge is recorded in an amount equal to the excess of the carrying value of the asset over its fair value.

Derivative Instruments

We record our derivative instruments held as assets and liabilities at fair value on the Consolidated Balance Sheets. In addition, since we choose not to designate any of our physical and financial natural gas commodity derivatives as accounting hedges, changes in the fair value of ES’s commodity derivatives are recognized in earnings, as they occur, as a component of operating revenues or natural gas purchases on the Consolidated Statements of Operations.

The fair value of derivative instruments is determined by reference to quoted market prices of listed exchange-traded contracts, published price quotations, pipeline tariff information or a combination of those items. ES’s portfolio is valued using the most current and reasonable market information. If the price underlying a physical commodity transaction does not represent a visible and liquid market, ES may utilize additional published pipeline tariff information and/or other services to determine an equivalent market price. As of September 30, 2024, the fair value of its derivative assets and liabilities reported on the Consolidated Balance Sheets that is based on such pricing is considered immaterial.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Should there be a significant change in the underlying market prices or pricing assumptions, ES may experience a significant impact on its financial position, results of operations and cash flows. Refer to Item 7A. Quantitative and Qualitative Disclosures About Market Risks for a sensitivity analysis related to the impact to derivative fair values resulting from changes in commodity prices. The valuation methods we use to determine fair values remained consistent for fiscal 2024, 2023 and 2022. We apply a discount to our derivative assets to factor in an adjustment associated with the credit risk of our physical natural gas counterparties and to our derivative liabilities to factor in an adjustment associated with our own credit risk. We determine this amount by using historical default probabilities corresponding to the appropriate S&P issuer ratings. Since the majority of our counterparties are rated investment grade, this results in an immaterial credit risk adjustment.

Gains and losses associated with derivatives utilized by NJNG to manage the price risk inherent in its natural gas purchasing activities are recoverable through its BGSS, subject to BPU approval. Accordingly, the offset to the change in fair value of these derivatives is recorded as either a regulatory asset or liability on the Consolidated Balance Sheets.

The Company hedges certain of its expected production of SRECs through forward and futures contracts. Upon physical delivery of SRECs to the counterparty, the Company recognizes SREC revenue as operating revenue on the Consolidated Statements of Operations.

We have not designated any derivatives as fair value or cash flow hedges as of September 30, 2024 and 2023.

Income Taxes

The determination of our provision for income taxes requires the use of estimates and the interpretation and application of tax laws. Judgment is required in assessing the deductibility and recoverability of certain tax benefits. We use the asset and liability method to determine and record deferred tax assets and liabilities, representing future tax benefits and taxes payable, which result from the differences in basis recorded in GAAP financial statements and amounts recorded in the income tax returns. The deferred tax assets and liabilities are recorded utilizing the statutorily enacted tax rates expected to be in effect at the time the assets are realized and/or the liabilities settled. An offsetting valuation allowance is recorded when it is more likely than not that some or all of the deferred income tax assets won’t be realized. Any significant changes to the estimates and judgments with respect to the interpretations, timing or deductibility could result in a material change to earnings and cash flows.

For state income tax and other taxes, estimates and judgments are required with respect to the apportionment among the various jurisdictions. In addition, we operate within multiple tax jurisdictions and are subject to audits in these jurisdictions. These audits can involve complex issues, which may require an extended period of time to resolve. We maintain a liability for the estimate of potential income tax exposure and, in our opinion, adequate provisions for income taxes have been made for all years reported. Any significant changes to the estimates and judgments with respect to the apportionment factor could result in a material change to earnings and cash flows.

Occasionally, the federal and state taxing authorities determine that it is necessary to make certain changes to the income tax laws. These changes may include but are not limited to changes in the tax rates and/or the treatment of certain items of income or expense. Accounting guidance requires that the Company reflect the effect of changes in tax laws or tax rates at the date of enactment. Additionally, the Company is required to re-measure its deferred tax assets and liabilities as of the date of enactment. For non-regulated entities, the effects of changes in tax laws or tax rates are required to be included in income from continuing operations for the period that includes the enactment date. For regulated entities, if as the result of an action by a regulator it is probable that the future increase or decrease in taxes payable for items such as changes in tax laws or rates will be recovered from or returned to customers through future rates, an asset or liability shall be recognized for that probable increase or decrease in future revenue. Accounting guidance also requires that regulatory liabilities and/or assets be considered a temporary difference for which a related deferred tax asset and/or liability shall be recognized.

Accounting guidance requires that we establish reserves for uncertain tax positions when it is more likely than not that the positions will not be sustained when challenged by taxing authorities. Any changes to the estimates and judgments with respect to the interpretations, timing or deductibility could result in a change to earnings and cash flows. Interest and penalties related to unrecognized tax benefits, if any, are recognized within income tax expense, and accrued interest and penalties are recognized within accrued taxes on the Consolidated Balance Sheets.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

To the extent that NJNG invests in property that qualifies for ITCs, the ITC is deferred and amortized to income over the life of the equipment in accordance with regulatory treatment. In general, for our unregulated subsidiaries, we record ITCs on the balance sheet as a contra-asset as a reduction to property, plant and equipment when the property is placed in service. The contra-asset is amortized on the Consolidated Statements of Operations as a reduction to depreciation expense over the useful lives of the related assets.

Changes to the federal statutes related to ITCs that have the effect of reducing or eliminating the credits could have a negative impact on earnings and cash flows.

Recently Issued Accounting Standards

Refer to Note 2. Summary of Significant Accounting Policies in the accompanying Consolidated Financial Statements for discussion of recently issued accounting standards.

MANAGEMENT’S OVERVIEW

Consolidated

NJR is a diversified energy services holding company providing retail natural gas service in New Jersey and wholesale natural gas and related energy services to customers in the U.S. In addition, we invest in clean energy projects and storage and transportation assets and provide various repair, sales and installation services. A more detailed description of our organizational structure can be found in Item 1. Business.

The following sections include a discussion of results for fiscal 2024 compared to fiscal 2023. The comparative results for fiscal 2023 with fiscal 2022 have been omitted from this Form 10-K, but may be found in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations on Form 10-K of our Annual Report for the fiscal year ended September 30, 2023, filed with the SEC on November 21, 2023.

Reporting Segments

We have four primary reporting segments as presented in the chart below:

In addition to our four reporting segments above, we have nonutility operations that either provide corporate support services or do not meet the criteria to be treated as a separate reporting segment. These operations, which comprise HSO, include appliance repair services, sales and installations at NJRHS and commercial real estate holdings at CR&R.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Operating Results

Net income (loss) and assets by reporting segment and other business operations for the fiscal years ended September 30, are as follows:

(Thousands)	2024				2023				2022
	Net Income		Assets		Net Income		Assets		Net Income		Assets
NJNG	$	133,400	$	4,789,835	$	131,414	$	4,414,829	$	140,124	$	4,030,686
CEV	33,662		1,157,573		44,458		1,128,577		39,403		1,015,065
ES	106,745		108,710		78,848		123,775		69,650		333,064
S&T	12,229		1,025,457		13,154		1,011,959		26,598		999,520
HSO	26		159,444		4,758		171,275		(781)		159,068
Intercompany (1)	3,713		(259,374)		(7,908)		(312,919)		(72)		(275,987)
Total	$	289,775	$	6,981,645	$	264,724	$	6,537,496	$	274,922	$	6,261,416

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

Consolidated net income increased approximately $25.1M during fiscal 2024, compared with fiscal 2023, due primarily to the following factors:

•$27.9M increase in earnings at ES primarily due to increased operating revenue related to the timing of permanent releases of certain capacity related to the AMAs, reduced by unrealized gains and losses on hedging transactions; partially offset by

•$10.8M decrease in earnings at CEV due to the reversal of a valuation allowance for certain deferred tax assets during fiscal 2023 that did not reoccur.

The primary drivers of the changes noted above are described in more detail in the individual reporting segment and other business operations discussions.

Consolidated assets increased approximately $444.1M as of September 30, 2024, compared with September 30, 2023, due primarily to the following factors:

•$301.7M increase in utility plant expenditures at NJNG; and

•$79.4M increase in nonutility plant and equipment, net at CEV and S&T.

Non-GAAP Financial Measures

Our management uses NFE, a non-GAAP financial measure, when evaluating our operating results. ES economically hedges its natural gas inventory with financial derivative instruments. NFE is a measure of the earnings based on eliminating timing differences surrounding the recognition of certain gains or losses, to effectively match the earnings effects of the economic hedges with the physical sale of natural gas and, therefore, eliminates the impact of volatility to GAAP earnings associated with the derivative instruments. To the extent we utilize forwards, futures or other derivatives to hedge forecasted SREC production, unrealized gains and losses are also eliminated from NFE. NFE also excludes certain transactions associated with equity method investments, including impairment charges, which are non-cash charges, and return of capital in excess of the carrying value of our investment. These are considered unusual in nature and occur infrequently such that they are not indicative of our performance for ongoing operations. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE.

Non-GAAP financial measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute for or a replacement of, the comparable GAAP measure and should be read in conjunction with those GAAP results.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Below is a reconciliation of consolidated net income, the most directly comparable GAAP measure, to NFE for the fiscal years ended September 30:

(Thousands, except per share data)	2024		2023		2022
Net income	$	289,775	$	264,724	$	274,922
Add:
Unrealized loss (gain) on derivative instruments and related transactions	19,574		(38,081)		(59,906)
Tax effect	(4,652)		9,050		14,248
Effects of economic hedging related to natural gas inventory (1)	(18,192)		34,699		19,939
Tax effect	4,323		(8,246)		(4,738)
Gain on equity method investment	—		(300)		(5,521)
Tax effect	—		(19)		1,377
Net financial earnings	$	290,828	$	261,827	$	240,321
Basic earnings per share	$	2.94	$	2.73	$	2.86
Add:
Unrealized loss (gain) on derivative instruments and related transactions	0.20		(0.39)		(0.62)
Tax effect	(0.05)		0.09		0.15
Effects of economic hedging related to natural gas inventory (1)	(0.18)		0.36		0.21
Tax effect	0.04		(0.09)		(0.05)
Gain on equity method investment	—		—		(0.06)
Tax effect	—		—		0.01
Basic NFE per share	$	2.95	$	2.70	$	2.50

(1)Effects of hedging natural gas inventory transactions where the economic impact is realized in a future period.

NFE by reporting segment and other business operations for the fiscal years ended September 30, discussed in more detail within the operating results sections of each reporting segment and other business operations, is summarized as follows:

(Thousands)	2024				2023				2022
NJNG	$	133,400	46	%	$	131,414	50	%	$	140,124	58	%
CEV	33,662		12		44,458		17		39,403		17
ES	111,515		38		68,517		26		39,121		16
S&T	12,229		4		12,835		5		22,454		9
HSO	26		—		4,758		2		(781)		—
Eliminations (1)	(4)		—		(155)		—		—		—
Total	$	290,828	100	%	$	261,827	100	%	$	240,321	100	%

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

Consolidated NFE increased approximately $29.0M during fiscal 2024, compared with fiscal 2023, due primarily to the following factors:

•$43.0M increase in earnings at ES as a result of higher operating revenues from AMAs, as previously discussed; partially offset by

•$10.8M decrease in earnings at CEV due to the reversal of a valuation allowance in fiscal year 2023 that did not reoccur as previously discussed.

Natural Gas Distribution

Overview

Natural Gas Distribution is comprised of NJNG, a natural gas utility that provides regulated natural gas service to residential and commercial customers throughout Burlington, Middlesex, Monmouth, Morris, Ocean and Sussex counties in New Jersey and also participates in the off-system sales and capacity release markets. The business is subject to various risks, which may include but are not limited to impacts to customer growth and customer usage, customer collections, the timing and costs of capital expenditures and construction of infrastructure projects, operating and financing costs, fluctuations in commodity prices and customer conservation efforts. In addition, NJNG may be subject to adverse economic conditions such as inflation and rising natural gas costs, certain regulatory actions, environmental remediation and severe weather conditions. It is often difficult to predict the impact of events or trends associated with these risks.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

NJNG’s business is seasonal by nature, as weather conditions directly influence the volume of natural gas delivered to customers on an annual basis. Specifically, customer demand substantially increases during the winter months when natural gas is used for heating purposes. As a result, NJNG generates most of its natural gas distribution revenues during the first and second fiscal quarters and is subject to variations in earnings and working capital during the fiscal year.

As a regulated company, NJNG is required to recognize the impact of regulatory decisions on its financial statements. See Note 4. Regulation in the accompanying Consolidated Financial Statements for a more detailed discussion of regulatory actions, including filings related to programs and associated expenditures, as well as rate requests related to recovery of capital investments and operating costs.

NJNG’s operations are managed with the goal of providing safe and reliable service, growing its customer base, diversifying its Utility Gross Margin, promoting clean energy programs and mitigating the risks discussed above.

Base Rate Case

On January 31, 2024, NJNG filed a base rate case with the BPU requesting a natural gas revenue increase of approximately $222.6M including a recovery of infrastructure investments, a change in the Company’s overall rate of return on rate base to 7.57% and a change in the return on common equity to 10.42%. On May 15, 2024, the filing was updated to reflect actual results through March 31, 2024, which reduced the requested increase to approximately $219.6M. On August 7, 2024, the filing was updated to reflect actual results through June 30, 2024, which modified the requested increase to approximately $219.9M. On November 21, 2024, the BPU issued an order adopting a stipulation of settlement approving a $157.0M increase to base rates, effective November 21, 2024. The increase includes an overall rate of return on rate base of 7.08%, return on common equity of 9.6%, a common equity ratio of 54.0% and a composite depreciation rate of 3.21%.

Infrastructure Projects

NJNG has significant annual capital expenditures associated with the management of its natural gas distribution and transmission system, including new utility plant expenditures associated with customer growth and its associated PIM and infrastructure programs. Below is a summary of NJNG’s capital expenditures, including accruals for fiscal 2024 and estimates of expected investments over the next fiscal year:

Estimated capital expenditures are reviewed on a regular basis and may vary based on the ongoing effects of regulatory oversight, environmental regulations, unforeseen events and the ability to access capital.

NJNG continues to implement BPU-approved infrastructure projects that are designed to enhance the reliability and integrity of NJNG’s natural gas distribution system.

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New Jersey Resources Corporation

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Infrastructure Investment Program

In October 2020, the BPU approved NJNG’s five-year IIP filing for $150.0M of transmission and distribution investments, effective November 1, 2020, which will be recovered through annual filings to adjust base rates.

In September 2023, the BPU approved NJNG’s annual IIP filing, which requested a rate increase for capital expenditures of $28.2M through June 30, 2023, which resulted in a $3.2M revenue increase, effective October 1, 2023.

On March 28, 2024, NJNG submitted its annual IIP filing to the BPU requesting a rate increase for capital expenditures of $43.5M through June 30, 2024. The filing was updated July 26, 2024, to reflect actual expenses of $41.2M. The BPU approved this filing on September 25, 2024, which resulted in a $4.7M revenue increase, effective October 1, 2024.

Customer Growth

In conducting NJNG’s business, management focuses on factors it believes may have significant influence on its future financial results. NJNG’s policy is to work with all stakeholders, including customers, regulators and policymakers, to achieve favorable results. These factors include the rate of NJNG’s customer growth in its service territory, which can be influenced by political and regulatory policies, the delivered cost of natural gas compared with competing fuels, interest rates and general economic and business conditions.

NJNG’s total customers as of September 30, include the following:

	2024	2023	2022
Firm customers
Residential	528,502	520,682	512,264
Commercial, industrial & other	31,927	31,725	31,227
Residential transport	14,470	15,457	17,316
Commercial transport	7,972	8,033	8,397
Total firm customers	582,871	575,897	569,204
Other	45	103	96
Total customers	582,916	576,000	569,300

During fiscal 2024, 2023 and 2022, NJNG added 8,079, 8,800 and 7,808 new customers, respectively. NJNG expects new customer additions, and those customers who added additional natural gas services to their premises, to contribute approximately $6.8M of incremental Utility Gross Margin on an annualized basis.

Energy Efficiency Programs

SAVEGREEN conducts home energy audits and provides various grants, incentives and financing alternatives designed to encourage the installation of high-efficiency heating and cooling equipment and other energy efficiency upgrades. Depending on the specific incentive or approval, NJNG recovers costs associated with the programs over a three- to 10-year period through a tariff rider mechanism. In March 2021, the BPU approved a three-year SAVEGREEN program consisting of approximately $126.1M of direct investment, $109.4M in financing options and approximately $23.4M in O&M.

In September 2023, the BPU approved an increase to the energy efficiency rate for the SAVEGREEN programs established from 2010 through the present, which increased annual recoveries by $9.0M, effective October 1, 2023.

On November 9, 2023, NJNG filed a letter of petition seeking BPU approval to extend NJNG’s current SAVEGREEN program through December 31, 2024, with an additional $76.9M in order to meet customer demand for this program, which was approved by the BPU on April 30, 2024.

On December 1, 2023, NJNG filed a petition seeking BPU approval of its 2024 SAVEGREEN program, which would support new energy efficiency, demand response and building decarbonization start-up programs for two-and-a-half-years from January 1, 2025 through June 30, 2027. The 2024 SAVEGREEN program filing, which totals $482.4M, includes $245.1M of direct investment, $217.2M in financing options and $20.1M in O&M. On October 30, 2024, the BPU approved a settlement consisting of $205.0M of direct investment, $160.5M in financing options and $20.1M in O&M, which totals $385.6M.

On May 31, 2024, NJNG submitted its annual EE filing with the BPU for the recovery of SAVEGREEN costs, proposing an increase in annual recoveries of approximately $5.6M, to be effective January 1, 2025, if approved.

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New Jersey Resources Corporation

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Loans amounted to approximately $37.5M and $23.3M and grants, rebates and related investments amounted to approximately $33.8M and $36.5M during the fiscal years ended September 30, 2024 and 2023, respectively. Program recoveries from customers during the fiscal years ended September 30, 2024 and 2023, were $28.6M and $26.3M, respectively. The recovery includes a weighted average cost of capital that ranges from 6.84% to 6.9%, with a return on equity of 9.6% to 9.75%.

Conservation Incentive Program/BGSS

The CIP facilitates normalizing NJNG’s Utility Gross Margin for variances due not only to weather but also other factors affecting customer usage, such as conservation and energy efficiency. Recovery of Utility Gross Margin for the non-weather variance through the CIP is limited to the amount of certain natural gas supply cost savings achieved and is subject to a variable margin revenue test. Additionally, recovery of the CIP Utility Gross Margin is subject to an annual earnings test. An annual review of the CIP must be filed by June 1, coincident with NJNG’s annual BGSS filing, during which NJNG can request rate changes to the CIP.

NJNG’s total utility firm gross margin includes the following adjustments related to the CIP mechanism:

(Thousands)	2024		2023		2022
Weather (1)	$	36,907	$	44,675	$	22,263
Usage	9,386		3,276		2,032
Total	$	46,293	$	47,951	$	24,295

(1)Compared with the 20-year average, weather was 11.3%, 13.4% and 8.3% warmer-than-normal during fiscal 2024, 2023 and 2022, respectively.

Recovery of Natural Gas Costs

NJNG’s cost of natural gas is passed through to our customers, without markup, by applying NJNG’s authorized BGSS rate to actual therms delivered. There is no Utility Gross Margin associated with BGSS costs; therefore, changes in such costs do not impact NJNG’s earnings. NJNG monitors its actual natural gas costs in comparison to its BGSS rates to manage its cash flows associated with its allowed recovery of natural gas costs, which is facilitated through BPU-approved deferred accounting and the BGSS pricing mechanism. Accordingly, NJNG occasionally adjusts its periodic BGSS rates or can issue credits or refunds, as appropriate, for its residential and small commercial customers when the commodity cost varies from the existing BGSS rate. BGSS rates for its large commercial customers are adjusted monthly based on NYMEX prices.

NJNG’s residential and commercial markets are currently open to competition, and its rates are segregated between BGSS (i.e., natural gas commodity) and delivery (i.e., transportation) components. NJNG earns Utility Gross Margin through the delivery of natural gas to its customers and, therefore, is not negatively affected by customers who use its transportation service and purchase natural gas from another supplier. Under an existing order from the BPU, BGSS can be provided by suppliers other than the state’s natural gas utilities; however, customers who purchase natural gas from another supplier continue to use NJNG for transportation service.

In April 2023, the BPU approved, on a final basis, NJNG’s February 2023 filing for a reduction to the BGSS rate, which reduced annual recoveries by approximately $29.9M, effective March 1, 2023. NJNG’s February 2023 filing also advised the BPU of a bill credit for residential and small commercial customers. Total bill credits given back to customers from March 2023 through May 2023, totaled approximately $32.4M.

On April 30, 2024, the BPU approved, on a final basis, NJNG's June 2023 annual filing, which included a decrease of approximately $38.6M to the annual revenues credited to BGSS, an annual decrease of approximately $7.4M related to its balancing charge and an increase of approximately $27.0M to CIP rates for residential and small business customers, effective October 1, 2023.

On September 25, 2024, the BPU approved, on a provisional basis, NJNG’s May 2024 annual filing, which included a decrease of approximately $31.0M to the annual revenues credited to BGSS, an annual increase of approximately $40.3M related to its balancing charge and a decrease of approximately $0.8M to CIP rates, effective October 1, 2024. The balancing charge rate includes the cost of balancing natural gas deliveries with customer usage for sales and transportation customers, and balancing charge revenues are credited to BGSS.

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New Jersey Resources Corporation

Part II

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

BGSS Incentive Programs

NJNG is eligible to receive financial incentives for reducing BGSS costs through a series of Utility Gross Margin-sharing programs that include off-system sales, capacity release and storage incentive programs. These programs are designed to encourage better utilization and hedging of NJNG’s natural gas supply and transportation and storage assets. Depending on the program, NJNG shares 80 or 85% of Utility Gross Margin generated by these programs with firm customers. Utility Gross Margin from incentive programs was $17.9M, $20.0M and $19.6M during the fiscal years ended September 30, 2024, 2023 and 2022, respectively.

Hedging

In order to provide relative price stability to its natural gas supply portfolio, NJNG employs a hedging strategy with the goal of having at least 75% of the Company’s projected winter periodic BGSS natural gas sales volumes hedged by each November 1 and at least 25% of the projected periodic BGSS natural gas sales hedged for the following April-through-March period. The hedging goal is typically achieved with gas in storage and the use of financial instruments to hedge storage injections. NJNG may also use various financial instruments including futures, swaps, options and weather-related products to hedge its future delivery obligations.

Commodity Prices

NJNG is affected by the price of natural gas, which can have a significant impact on our cash flows and short-term financing costs, the price of natural gas charged to our customers through the BGSS clause, our ability to collect accounts receivable, which impacts our bad debt expense, and our ability to maintain a competitive advantage over other energy sources. Natural gas commodity prices are shown in the graph below, which illustrates the daily natural gas prices(1) in the Northeast market region, also known as TETCO M-3.

(1) Data sourced from Standard & Poor’s Financial Services, LLC Global Platts.

The maximum price per MMBtu was $20.98, $32.46 and $17.69 and the minimum price was $0.89, $0.67 and $2.42 for the fiscal years ended September 30, 2024, 2023 and 2022, respectively. A more detailed discussion of the impacts of the price of natural gas on operating revenues, natural gas purchases and cash flows can be found in the Operating Results and Cash Flow sections of Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

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New Jersey Resources Corporation

Part II

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Societal Benefits Charge

NJNG’s qualifying customers are eligible for the USF program, which is administered by the New Jersey Department of Community Affairs, to help make energy bills more affordable.

In April 2023, the BPU approved on a final basis NJNG’s annual SBC filing, which included an increase to the RAC annual recoveries of approximately $3.7M and a decrease to the NJCEP annual recoveries of approximately $0.9M, effective May 1, 2023.

In September 2023, the BPU approved NJNG’s annual USF filing, which included an increase to the statewide USF rate of approximately $0.7M, effective October 1, 2023.

On March 20, 2024, the BPU approved NJNG’s annual SBC filing of RAC expenditures through June 30, 2023, which included an increase to the RAC annual recoveries of approximately $2.4M and an increase to the NJCEP annual recoveries of approximately $5.5M, effective April 1, 2024.

On June 28, 2024, NJNG submitted its annual USF filing to the BPU requesting an increase to the statewide USF rate. On September 25, 2024, the BPU approved the filing, which resulted in a $6.8M increase to annual recoveries, effective October 1, 2024.

On September 30, 2024, NJNG submitted its annual SBC filing to the BPU requesting approval of RAC expenditures through June 2024, which included an increase to the RAC annual recoveries of approximately $2.4M and an increase to the NJCEP annual recoveries of approximately $1.6M, which would be effective April 1, 2025.

Environmental Remediation

NJNG is responsible for the environmental remediation of former MGP sites, which contain contaminated residues from former gas manufacturing operations that ceased operating at these sites by the mid-1950s and, in some cases, had been discontinued many years earlier. Actual MGP remediation costs may vary from management’s estimates due to the developing nature of remediation requirements, regulatory decisions by the NJDEP and related litigation. NJNG reviews these costs periodically, and at least annually, and adjusts its liability and corresponding regulatory asset as necessary to reflect its expected future remediation obligation. Accordingly, NJNG recognized a regulatory asset and an obligation of $161.7M as of September 30, 2024, a decrease of $7.8M compared with the prior fiscal period. See Note 14. Commitments and Contingent Liabilities for a more detailed description of MGP expenditures.

Other regulatory filings and a more detailed discussion of the filings in this section can be found in Note 4. Regulation in the accompanying Consolidated Financial Statements.

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New Jersey Resources Corporation

Part II

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Operating Results

NJNG’s operating results for the fiscal years ended September 30, are as follows:

(Thousands)	2024		2023		2022
Operating revenues (1)	$	1,019,832	$	1,012,633	$	1,128,767
Operating expenses
Natural gas purchases (2) (3)	414,635		425,457		557,232
Operation and maintenance	225,260		226,780		198,546
Regulatory rider expense (4)	60,327		50,542		59,437
Depreciation and amortization	112,492		102,326		94,579
Total operating expenses	812,714		805,105		909,794
Operating income	207,118		207,528		218,973
Other income, net	20,363		13,546		7,686
Interest expense, net of capitalized interest	62,288		56,595		46,394
Income tax provision	31,793		33,065		40,141
Net income	$	133,400	$	131,414	$	140,124

(1)Includes nonutility revenue of approximately $1.4M, $1.3M and $1.4M for fiscal 2024, 2023 and 2022, respectively, for lease agreements with various NJR subsidiaries leasing office space from NJNG at the Company’s headquarters, which are eliminated in consolidation.

(2)Includes the purchased cost of the natural gas, fees paid to pipelines and storage facilities, adjustments as a result of BGSS incentive programs and hedging transactions. These expenses are passed through to customers and are offset by corresponding revenues.

(3)Includes related party transactions of approximately $9.3M for fiscal 2024, 2023 and 2022, a portion of which is eliminated in consolidation.

(4)Consists of expenses associated with state-mandated programs, the RAC and energy efficiency programs, which are calculated on a per-therm basis. These expenses are passed through to customers and are offset by corresponding revenues.

Operating Revenues and Natural Gas Purchases

Operating revenues increased 0.7% during fiscal 2024 compared with fiscal 2023. Natural gas purchases decreased 2.5% during fiscal 2024 compared with fiscal 2023. The factors contributing to the increases and decreases in operating revenues and natural gas purchases during fiscal 2024 are as follows:

	2024 v. 2023
(Thousands)	Operating revenues		Natural gas purchases
BGSS incentives	$	15,264	$	17,408
Bill credits	31,581		31,581
Firm sales	17,255		6,470
Average BGSS rates	(64,786)		(64,786)
CIP adjustments	(1,658)		—
Riders and other (1)	9,543		(1,495)
Total increase (decrease)	$	7,199	$	(10,822)

(1)Riders and other includes changes in rider rates, including those related to Energy Efficiency, NJCEP and other programs, which is offset in regulatory rider expense.

Non-GAAP Financial Measures

Management uses Utility Gross Margin, a non-GAAP financial measure, when evaluating the operating results of NJNG. NJNG’s Utility Gross Margin is defined as operating revenues less natural gas purchases, sales tax and regulatory rider expenses. This measure differs from gross margin as presented on a GAAP basis, as it excludes certain operations and maintenance expense and depreciation and amortization. Utility Gross Margin may also not be comparable to the definition of gross margin used by others in the natural gas distribution business and other industries. Management believes that Utility Gross Margin provides a meaningful basis for evaluating utility operations since natural gas costs, sales tax and regulatory rider expenses are included in operating revenues and passed through to customers and, therefore, have no effect on Utility Gross Margin. Non-GAAP financial measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute for, the comparable GAAP measure.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Utility Gross Margin

A reconciliation of gross margin, the closest GAAP financial measure to NJNG’s Utility Gross Margin for the fiscal years ended September 30, is as follows:

(Thousands)	2024		2023		2022
Operating revenues	$	1,019,832	$	1,012,633	$	1,128,767
Less:
Natural gas purchases	414,635		425,457		557,232
Operation and maintenance (1)	113,984		115,292		93,164
Regulatory rider expense	60,327		50,542		59,437
Depreciation and amortization	112,492		102,326		94,579
Gross margin	318,394		319,016		324,355
Add:
Operation and maintenance (1)	113,984		115,292		93,164
Depreciation and amortization	112,492		102,326		94,579
Utility Gross Margin	$	544,870	$	536,634	$	512,098

(1)Excludes SG&A of approximately $111.3M, $111.5M and $102.8M for the fiscal years 2024, 2023 and 2022, respectively.

Utility Gross Margin consists of three components:

•Utility firm gross margin generated from only the delivery component of either a sales tariff or a transportation tariff from residential and commercial customers who receive natural gas service from NJNG;

•BGSS incentive programs, where revenues generated or savings achieved from BPU-approved off-system sales, capacity release or storage incentive programs are shared between customers and NJNG; and

•Utility Gross Margin generated from off-tariff customers, as well as interruptible customers.

The following provides more information on the components of Utility Gross Margin and associated throughput (Bcf) of natural gas delivered to customers:

	2024			2023			2022
($ in thousands)	Margin		Bcf	Margin		Bcf	Margin		Bcf
Utility Gross Margin/Throughput
Residential	$	369,522	44.5	$	360,138	43.4	341,167		45.5
Commercial, industrial and other	78,033		8.5	76,550		8.4	77,629		8.7
Firm transportation	75,641		11.7	76,114		12.1	69,933		13.0
Total utility firm gross margin/throughput	523,196		64.7	512,802		63.9	488,729		67.2
BGSS incentive programs	17,876		85.0	20,020		72.6	19,587		95.2
Interruptible/off-tariff agreements	3,798		25.8	3,812		29.5	3,782		32.4
Total Utility Gross Margin/Throughput	$	544,870	175.5	$	536,634	166.0	$	512,098	194.8

Utility Firm Gross Margin

Utility firm gross margin increased approximately $10.4M during fiscal 2024 compared with fiscal 2023, due primarily to an increase in customers.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

BGSS Incentive Programs

The factors contributing to the change in Utility Gross Margin generated by BGSS incentive programs are as follows:

(Thousands)	2024 v. 2023
Storage		$	(1,454)
Capacity release		(139)
Off-system sales		(551)
Total decrease		$	(2,144)

The decrease in BGSS incentive programs was due primarily to decreased margins from storage incentives along with lower off-system sales margin due to less market volatility and lower capacity release volumes.

Net Income

Net income increased approximately $2.0M during fiscal 2024, compared with fiscal 2023, due primarily to the following factors:

•$8.2M increase in Utility Gross Margin, as previously discussed;

•$6.8M increase in other income, net resulting from the remeasurement of the Company's other postretirement benefits; and

•$1.5M decrease in O&M due to lower consulting fees; partially offset by

•$10.2M increase in depreciation expense as a result of additional utility plant being placed into service; and

•$5.7M increase in interest expense due to higher outstanding long-term debt.

Clean Energy Ventures

Overview

CEV actively pursues opportunities in the renewable energy markets, which includes the development, construction and operation of net-metered and grid-connected commercial solar projects. In addition, CEV enters into various long-term agreements, including PPAs, to supply energy from commercial solar projects.

Capital expenditures related to clean energy projects are subject to change due to a variety of factors that may affect our ability to commence operations at these projects on a timely basis or at all, including logistics associated with the start-up of commercial solar projects, such as timing of construction schedules, the permitting and regulatory process, any delays related to electric grid interconnection, economic trends, unforeseen events and the ability to access capital or allocation of capital to other investments or business opportunities. CEV is also subject to various risks, which may include our ability to identify and develop commercial solar asset investments, impacts to our supply chain and our ability to source materials for construction.

The primary contributors toward the value of qualifying clean energy projects are tax incentives, RECs and electricity sales. Changes in the federal statutes related to the ITC and/or relevant state legislation and regulatory policies affecting the market for solar renewable energy credits could significantly affect future results.

Solar projects placed in service and related expenditures for the fiscal years ended September 30, are as follows:

($ in Thousands)	2024				2023				2022
Placed in service	Projects	MW	Costs		Projects	MW	Costs		Projects	MW	Costs
Grid-connected (1)	—	—	$	—	5	42.0	$	106,558	3	14.0	$	31,411
Net-metered:
Commercial (1) (2)	2	5.1	18,931		5	36.1	50,610		2	1.0	2,440
Sunlight Advantage®	282	3.4	10,660		339	4.1	12,677		360	3.9	11,544
Total placed in service	284	8.5	$	29,591	349	82.2	$	169,845	365	18.9	$	45,395

(1)Includes projects subject to sale leaseback arrangements.

(2)Fiscal 2023 includes two operational commercial solar projects acquired in July 2023, totaling 20.7 MW.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

As of September 30, 2024, CEV has approximately 477 MW of solar capacity in service. Projects that were placed in service through December 31, 2019, qualified for a 30% federal ITC. The credit declined to 26% for property under construction during 2020 through the end of 2022. In August 2022, the federal ITC was restored to 30% through the end of 2032. There are additional opportunities to increase the credit amount for certain facilities that are placed in service after December 31, 2022, based upon the type of project and location.

CEV may enter into transactions to sell certain of its commercial solar assets concurrent with agreements to lease the assets back over a period of five to seven years. The Company will continue to operate the solar assets and is responsible for related expenses and entitled to retain the revenue generated from RECs and energy sales. ITCs and other tax attributes associated with these solar projects transfer to the buyer if applicable; however, the lease payments are structured so that CEV is compensated for the transfer of the related tax incentives. Accordingly, for solar projects financed under sale leasebacks for which the assets were sold during the first five years of in-service life, CEV recognizes the equivalent value of the ITC in other income on the Consolidated Statements of Operations over the respective five-year ITC recapture periods, starting with the second year of the lease. During fiscal 2024, 2023 and 2022, CEV received proceeds of $64.7M, $167.8M and $24.1M, respectively, in connection with the sale leaseback of commercial solar assets.

As part of its solar investment portfolio, CEV operates a residential and small commercial solar program, The Sunlight Advantage®, which provides qualifying homeowners and small business owners with the opportunity to have a solar system installed at their home or place of business with no installation or maintenance expenses. CEV owns, operates and maintains the system over the life of the lease in exchange for monthly lease payments. The program is operated by CEV using qualified contracting partners in addition to strategic suppliers for material standardization and sourcing.

On November 25, 2024, CEV completed the sale of its 91 MW residential solar portfolio, and related assets and liabilities included in The Sunlight Advantage® program to a third party for a total purchase price of $132.5M.

For solar installations placed in-service in New Jersey prior to April 30, 2020, each MWh of electricity produced creates an SREC that represents the renewable energy attribute of the solar-electricity generated that can be sold to third parties, predominantly load-serving entities that are required to comply with the solar requirements under New Jersey’s renewable portfolio standard.

Following the close of the SREC market in New Jersey, the BPU established the TREC as the successor program to the SREC program. TRECs provide a fixed compensation base multiplied by an assigned project factor in order to determine their value. The project factor is determined by the type and location of the project, as defined. All TRECs generated are required to be purchased monthly by a TREC program administrator as appointed by the BPU.

In July 2021, the BPU established a new successor solar incentive program. This ADI Program provides administratively set incentives for net metered projects of 5 MW or less. RECs generated through the production of electricity under this program are known as SREC IIs.

In December 2022, the BPU established the CSI program, which provides incentives to larger solar facilities. It is open to qualifying grid supply solar facilities, non-residential net metered solar installations with a capacity greater than 5 MW and eligible grid supply solar facilities installed in combination with energy storage. Pricing is determined based on a competitive bid solicitation process.

REC activity consisted of the following:

	Inventory balance as of October 1,	RECs		Inventory balance as of September 30,	Average
		Generated	Delivered		Sale Price
2024
SRECs	144,138	402,056	(419,266)	126,928		$197
TRECs (1)	10,120	93,913	(92,796)	11,237		$141
SREC IIs (1)	6,013	19,087	(20,078)	5,022		$90
2023
SRECs	116,005	422,039	(393,906)	144,138		$202
TRECs	10,759	80,520	(81,159)	10,120		$144
SREC IIs	247	10,260	(4,494)	6,013		$90

(1)TREC and SREC II inventory balances are due primarily to the timing of generation and when RECs are delivered to the state administrator.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

CEV hedges its expected SREC production through the use of forward sales contracts. The following table reflects the hedged percentage of our projected inventory of SRECs related to CEV’s in-service commercial and residential assets at September 30, 2024:

Energy Year (1)	Percent of SRECs Hedged
2025	90%
2026	89%
2027	51%
2028	39%

(1)Energy years are compliance periods for New Jersey’s renewable portfolio standard that run from June 1 to May 31.

There are no direct costs associated with the production of RECs by our solar assets. All related costs are included as a component of O&M on the Consolidated Statements of Operations, including such expenses as facility maintenance and broker fees.

Operating Results

CEV’s financial results for the fiscal years ended September 30, are summarized as follows:

(Thousands)	2024		2023		2022
Operating revenues	$	130,563	$	124,131	$	128,280
Operating expenses
Operation and maintenance	44,042		40,089		40,706
Depreciation and amortization	27,869		25,320		21,396
Total operating expenses	71,911		65,409		62,102
Operating income	58,652		58,722		66,178
Other income, net	14,961		6,622		6,554
Interest expense, net	28,545		28,569		21,968
Income tax provision (benefit)	11,406		(7,683)		11,361
Net income	$	33,662	$	44,458	$	39,403

Net income decreased approximately $10.8M during fiscal 2024, compared with fiscal 2023, due primarily to the following factors:

•$19.1M increase in income tax expense due primarily to the reversal of a valuation allowance for certain deferred tax assets during fiscal 2023 that did not reoccur; and

•$4.0M increase in O&M due to higher project maintenance expenses and lease expenses; partially offset by

•$8.3M increase in other income, net due primarily to the recognition of ITCs associated with solar sale leaseback financing transactions; and

•$6.4M increase in operating revenues due to higher SREC, TREC and electricity sales.

Energy Services

Overview

ES markets and sells natural gas to wholesale and retail customers and manages natural gas transportation and storage assets throughout major market areas across North America. ES maintains a strategic portfolio of natural gas transportation and storage contracts that it utilizes in conjunction with its market expertise to provide service and value to its customers. Availability of these transportation and storage contracts allows ES to generate market opportunities by capturing price differentials over specific time horizons and between geographic market locations.

ES also provides management of transportation and storage assets for natural gas producers and regulated utilities. These management transactions typically involve the release of producer/utility-owned storage and/or transportation capacity in combination with an obligation to purchase and/or deliver physical natural gas. In addition to the contractual purchase and/or sale of physical natural gas, ES generates or pays fee-based margin in exchange for its active management and may provide the producer and/or utility with additional margin based on actual results.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

In conjunction with the active management of these contracts, ES generates Financial Margin by identifying market opportunities and simultaneously entering into natural gas purchase/sale, storage or transportation contracts and financial derivative contracts. In cases where storage is utilized to fulfill these contracts, these forecast sales and/or purchases are economically hedged through the use of financial derivative contracts. The financial derivative contracts consist primarily of exchange-traded futures, options and swap contracts, and are frequently used to lock in anticipated transactional cash flows and to help manage volatility in natural gas market prices. Generally, when its transportation and storage contracts are exposed to periods of increased market volatility, ES is able to implement strategies that allow it to capture margin by improving the respective time or geographic spreads on a forward basis.

ES accounts for its physical commodity contracts and its financial derivative instruments at fair value on the Consolidated Balance Sheets. Changes in the fair value of physical commodity contracts and financial derivative instruments are included in earnings as a component of operating revenues or natural gas purchases on the Consolidated Statements of Operations. Volatility in reported net income at ES can occur over periods of time due to changes in the fair value of derivatives, as well as timing differences related to certain transactions. Unrealized gains and losses can fluctuate as a result of changes in the price of natural gas and SRECs from the original transaction price. Volatility in earnings can also occur as a result of timing differences between the settlement of financial derivatives and the sale of the underlying physical commodity. For example, when a financial instrument settles and the physical natural gas is injected into inventory, the realized gains and losses associated with the financial instrument are recognized in earnings. However, the gains and losses associated with the physical natural gas are not recognized in earnings until the natural gas inventory is withdrawn from storage and sold, at which time ES realizes the entire margin on the transaction.

During December 2020, ES entered into a series of AMAs with an investment grade public utility to release pipeline capacity associated with certain natural gas transportation contracts. The utility provides certain asset management services, and ES may deliver natural gas to the utility in exchange for aggregate net proceeds of approximately $500M, payable through November 1, 2030. The AMAs include a series of initial and permanent releases, which commenced in November 2021. NJR received a total of approximately $260M in cash from fiscal 2022 through fiscal 2024 and will receive approximately $34M per year from fiscal 2025 through fiscal 2031 under the agreements. During fiscal 2024 and 2023, ES recognized $137.2M and $48.5M, respectively, of operating revenue related to the AMAs on the Consolidated Statements of Operations. Amounts received in excess of revenue, totaling $22.3M and $58.7M as of September 30, 2024 and 2023, respectively, are included in deferred revenue on the Consolidated Balance Sheets.

Operating Results

ES’s financial results for the fiscal years ended September 30, are summarized as follows:

(Thousands)	2024		2023		2022
Operating revenues (1)	$	485,391	$	691,616	$	1,529,272
Operating expenses
Natural gas purchases (including demand charges (2)(3))	305,938		558,932		1,394,405
Operation and maintenance	24,969		19,351		39,080
Depreciation and amortization	205		221		148
Total operating expenses	331,112		578,504		1,433,633
Operating income	154,279		113,112		95,639
Other income, net	1,030		1,479		512
Interest expense, net	15,233		11,400		4,725
Income tax provision	33,331		24,343		21,776
Net income	$	106,745	$	78,848	$	69,650

(1)Includes related party transactions of approximately $(4.9)M, $10.2M and $0.1M for fiscal 2024, 2023 and 2022, respectively, which are eliminated in consolidation.

(2)Costs associated with pipeline and storage capacity are expensed over the term of the related contracts, which generally varies from less than one year to 10 years.

(3)Includes related party transactions of approximately $1.2M, $0.9M and $1.0M for fiscal 2024, 2023 and 2022, respectively, a portion of which is eliminated in consolidation.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

ES’s portfolio of financial derivative instruments is composed of:

(in Bcf)	2024	2023	2022
Net short futures and swaps contracts	7.7	6.9	0.7

During fiscal 2024, 2023 and 2022 the net short position resulted in unrealized gains (losses) of $3.1M, $16.2M and $(8.5)M, respectively.

Operating revenues decreased approximately $206.2M and natural gas purchases decreased approximately $253.0M during fiscal 2024, compared with fiscal 2023, due primarily to a 36.0% decrease in natural gas prices, partially offset by increased operating revenue related to the timing of permanent releases of certain capacity related to the AMAs.

Future results at ES are contingent upon natural gas market price volatility driven by variations in both the supply and demand balances caused by weather and other factors. As a result, variations in weather patterns in the key market areas served may affect earnings during the fiscal year. Changes in market fundamentals, such as an increase in supply and decrease in demand due to warmer temperatures and reduced volatility, can negatively impact ES’s earnings. See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Natural Gas Distribution for TETCO M-3 Daily Prices, which illustrates the daily natural gas prices in the Northeast market region.

Net income increased approximately $27.9M during fiscal 2024, compared with fiscal 2023, due primarily to the following factors:

•$253.0M decrease in natural gas purchases, as previously discussed; partially offset by

•$206.2M decrease in operating revenues, as previously discussed;

•$9.0M increase in income tax expense related to higher operating income;

•$5.6M increase in O&M due to higher employee-related expenses and a reduction in the reserve for bad debt in the prior year; and

•$3.8M increase in interest expense due to increased borrowings and higher interest rates.

Non-GAAP Financial Measures

Management uses Financial Margin and NFE, non-GAAP financial measures, when evaluating the operating results of ES. Financial Margin and NFE are based on removing timing differences associated with certain derivative instruments. Management views these measures as representative of the overall expected economic result and uses these measures to compare ES’s results against established benchmarks and earnings targets, as these measures eliminate the impact of volatility on GAAP earnings as a result of timing differences associated with the settlement of derivative instruments. To the extent that there are unanticipated impacts from changes in the market value related to the effectiveness of economic hedges, ES’s actual non-GAAP results can differ from the results anticipated at the outset of the transaction. Non-GAAP financial measures are not in accordance with, or an alternative to, GAAP and should be considered in addition to, and not as a substitute for, the comparable GAAP measure.

When ES reconciles the most directly comparable GAAP measure to both Financial Margin and NFE, the current period unrealized gains and losses on derivatives are excluded as a reconciling item. Financial Margin and NFE also exclude the effects of economic hedging of the value of our natural gas in storage and, therefore, only include realized gains and losses related to natural gas withdrawn from storage, effectively matching the full earnings effects of the derivatives with realized margins on the related physical natural gas flows. To the extent we utilize forwards, futures or other derivatives to hedge natural gas transactions and forecasted SREC production, the resulting unrealized gains and losses are also eliminated from NFE. Financial Margin differs from gross margin as defined on a GAAP basis, as it excludes certain operations and maintenance expense and depreciation and amortization as well as the effects of derivatives, as discussed above.

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Part II

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Financial Margin

A reconciliation of gross margin, the closest GAAP financial measure, to ES’s Financial Margin is as follows:

(Thousands)	2024		2023		2022
Operating revenues (1)	$	485,391	$	691,616	$	1,529,272
Less:
Natural gas purchases	305,938		558,932		1,394,405
Operation and maintenance (2)	23,189		20,199		23,709
Depreciation and amortization	205		221		148
Gross margin	156,059		112,264		111,010
Add:
Operation and maintenance (2)	23,189		20,199		23,709
Depreciation and amortization	205		221		148
Unrealized loss (gain) on derivative instruments and related transactions	24,449		(48,251)		(60,000)
Effects of economic hedging related to natural gas inventory (3)	(18,192)		34,699		19,939
Financial Margin	$	185,710	$	119,132	$	94,806

(1)Includes unrealized (gains) losses related to intercompany transactions between NJNG and ES that have been eliminated in consolidation of approximately $(4.9)M, $7.8M and $0.1M for fiscal 2024, 2023 and 2022, respectively.

(2)Excludes SG&A of approximately $1.8M, $(0.8)M and $15.4M for fiscal 2024, 2023 and 2022, respectively.

(3)Effects of hedging natural gas inventory transactions where the economic impact is realized in a future period.

Financial Margin increased approximately $66.6M during fiscal 2024, compared with fiscal 2023, due primarily to increased operating revenue related to the AMAs, as previously discussed, partially offset by higher natural gas price volatility in fiscal 2023 as a result of cold weather in regions where ES had contracted rights to transportation and storage assets.

Net Financial Earnings

A reconciliation of ES’s net income, the most directly comparable GAAP financial measure to NFE, is as follows for the fiscal years ended September 30:

(Thousands)	2024		2023		2022
Net income	$	106,745	$	78,848	$	69,650
Add:
Unrealized loss (gain) on derivative instruments and related transactions	24,449		(48,251)		(60,000)
Tax effect (1)	(5,810)		11,467		14,270
Effects of economic hedging related to natural gas inventory	(18,192)		34,699		19,939
Tax effect	4,323		(8,246)		(4,738)
Net financial earnings	$	111,515	$	68,517	$	39,121

(1)Includes taxes related to intercompany transactions between NJNG and ES that have been eliminated in consolidation of approximately $1.2M and $(2.4)M for fiscal 2024 and 2023, respectively. Taxes that were eliminated in consolidation during fiscal 2022 were immaterial.

NFE increased approximately $43.0M during fiscal 2024, compared with fiscal 2023, due primarily to higher Financial Margin, as previously discussed.

Future results are subject to the ability of ES to expand its wholesale sales and service activities and are contingent upon many other factors, including an adequate number of appropriate and credit-qualified counterparties in an active and liquid natural marketplace; volatility in the natural gas market due to weather or other fundamental market factors impacting supply and/or demand; transportation, storage and/or other market arbitrage opportunities; sufficient liquidity in the overall energy trading market; and continued access to liquidity in the capital markets.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Storage and Transportation

Overview

S&T invests in natural gas assets, such as natural gas transportation and storage facilities. We believe that acquiring, owning and developing these storage and transportation assets, which operate under a tariff structure that has either cost- or market-based rates, can provide us organic growth opportunities. S&T is subject to various risks, including the construction, development and operation of our transportation and storage assets, as well as our ability to obtain necessary governmental, environmental and regulatory approvals, property rights and financing at reasonable costs for the construction, operation and maintenance of our assets.

S&T is comprised of Leaf River, a 32.2M Dth salt dome natural gas storage facility that operates under market-based rates, and Adelphia, a FERC-regulated interstate pipeline in southeastern Pennsylvania that operates under cost-of-service rates but can enter into negotiated rates with counterparties. The northern portion of the pipeline was operational upon acquisition, and currently serves two natural gas generation facilities.The southern zone of the pipeline became fully operational in September 2022.

On September 30, 2024, Adelphia filed a Section 4 rate case with the FERC seeking approval to revise its transportation cost-of-service rates to reflect investments made in its pipeline system, as well as the ongoing costs of operating and maintaining the system. Adelphia anticipates that FERC will allow it to place the rates into effect during the second half of 2025, subject to refund and the outcome of a hearing to be established by FERC.

S&T has a 50% ownership interest in Steckman Ridge, a storage facility located in western Pennsylvania that operates under market-based rates. As of September 30, 2024, our investment in Steckman Ridge was $101.7M.

S&T also had a 20% interest in PennEast, a partnership whose purpose was to construct and operate a 120-mile natural gas pipeline that would have extended from northeast Pennsylvania to western New Jersey. During fiscal 2021, we evaluated our equity investment in PennEast for impairment and determined that it was other-than-temporarily impaired. In December 2021, the PennEast project ceased further development.

During fiscal 2022, the PennEast board of managers approved cash distributions to members of the partnership following the sale of certain project-related assets and refunds of interconnection fees received from interstate pipelines. The return of capital received by the Company, which totaled $11.0M, reduced the remaining carrying value of its equity method investment in PennEast to zero, with the excess recorded in equity in earnings (loss) of affiliates in the Consolidated Statements of Operations. The Company received additional return of capital of $0.3M during fiscal 2023, which is recognized in equity in earnings of affiliates in the Consolidated Statements of Operations.

Operating Results

The financial results of S&T for the fiscal years ended September 30, are summarized as follows:

(Thousands)	2024		2023		2022
Operating revenues (1)	$	96,209	$	92,859	$	67,735
Operating expenses
Natural gas purchases	1,028		1,601		2,702
Operation and maintenance	43,083		34,648		30,568
Depreciation and amortization	24,900		24,185		12,302
Total operating expenses	69,011		60,434		45,572
Operating income	27,198		32,425		22,163
Other income, net	10,207		6,850		8,546
Interest expense, net	23,441		25,803		12,097
Income tax provision	4,551		3,444		1,879
Equity in earnings of affiliates	2,816		3,126		9,865
Net income	$	12,229	$	13,154	$	26,598

(1)Includes related party transactions of approximately $1.4M, $4.2M and $2.4M for the fiscal years ended September 30, 2024, 2023 and 2022, respectively, which are eliminated in consolidation.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Net income decreased approximately $0.9M during fiscal 2024, compared with fiscal 2023, due primarily to the following factors:

•$8.4M increase in O&M due to increased employee-related expenses and consulting fees; partially offset by

•$3.4M increase in operating revenues due to higher fixed price contract revenue for Adelphia; and

•$3.4M increase in other income due to increased interest income from the outstanding loan with Steckman Ridge, as a result of higher interest rates.

Non-GAAP Financial Measures

Management uses NFE, a non-GAAP financial measure, when evaluating the operating results of S&T. Certain transactions associated with equity method investments and their impact, including impairment charges, which are non-cash charges, and the return of capital in excess of the carrying value of our investment, are excluded for NFE purposes. The details of such adjustments can be found in the table below. Non-GAAP financial measures are not in accordance with, or an alternative to, GAAP, and should be considered in addition to, and not as a substitute for, the comparable GAAP measure.

A reconciliation of S&T’s net income, the most directly comparable GAAP financial measure to NFE, is as follows:

(Thousands)	2024		2023		2022
Net income	$	12,229	$	13,154	$	26,598
Add:
Gain on equity method investment	—		(300)		(5,521)
Tax effect	—		(19)		1,377
Net financial earnings	$	12,229	$	12,835	$	22,454

NFE decreased $0.6M during fiscal 2024, compared with fiscal 2023, due to lower net income, as previously discussed.

Home Services and Other

Overview

The financial results of HSO consist primarily of the operating results of NJRHS. NJRHS provides service, sales and installation of appliances to service contract customers and has been focused on growing its installation business and expanding its service contract customer base. HSO also includes organizational expenses incurred at NJR.

Operating Results

The condensed financial results of HSO for the fiscal years ended September 30, are summarized as follows:

(Thousands)	2024		2023		2022
Operating revenues	$	62,635	$	57,638	$	56,182
Income before income taxes	$	2,692	$	3,281	$	278
Income tax provision (benefit)	2,666		(1,477)		1,059
Net income (loss)	$	26	$	4,758	$	(781)

Net income decreased approximately $4.7M during fiscal 2024, compared with fiscal 2023, due primarily to the following factors:

•$4.6M increase in O&M due to increased employee-related and contractor expenses; and

•$4.1M increase in income tax expense due to a tax benefit in fiscal 2023 that did not reoccur; partially offset by

•$5.0M increase in operating revenues due to higher installation and service contract revenue at NJRHS.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Liquidity and Capital Resources

Our objective is to maintain an efficient consolidated capital structure that reflects the different characteristics of each reporting segment and other business operations and provides adequate financial flexibility for accessing capital markets as required. Our consolidated capital structure as of September 30, was as follows:

	2024		2023
Common stock equity	39	%	39	%
Long-term debt	52		54
Short-term debt	9		7
Total	100	%	100	%

Common Stock Equity

We satisfy our external common equity requirements, if any, through issuances of our common stock, including the proceeds from stock issuances under our DRP. The DRP allows us, at our option, to use treasury shares or newly issued shares to raise capital. NJR raised approximately $14.7M and $15.0M of equity through the DRP during fiscal 2024 and 2023, respectively. We also raised approximately $59.7M and $42.8M of equity by issuing approximately 1,380,000 and 948,000 shares through the waiver discount feature of the DRP during fiscal 2024 and 2023, respectively.

In 1996, the Board of Directors authorized us to implement a share repurchase program, which was expanded seven times since the inception of the program, authorizing a total of 19.5M shares of common stock for repurchase. Since inception, we repurchased a total of approximately 17.8M of those shares and may repurchase an additional 1.7M shares under the approved program. There were no shares repurchased during fiscal 2024 and 2023.

Debt

NJR and its unregulated subsidiaries generally rely on cash flows generated from operating activities and the utilization of committed credit facilities to provide liquidity to meet working capital and short-term debt financing requirements. NJNG also relies on the issuance of commercial paper for short-term funding. NJR and NJNG, as borrowers, periodically access the capital markets to fund long-life assets through the issuance of long-term debt securities.

We believe that our existing borrowing availability, equity proceeds and cash flows from operations will be sufficient to satisfy our working capital, capital expenditures and dividend requirements for at least the next 12 months. NJR, NJNG, CEV, S&T and ES currently anticipate that each of their financing requirements for the next 12 months will be met primarily through the issuance of short- and long-term debt, and meter or solar asset sale leasebacks.

We believe that as of September 30, 2024, NJR and NJNG were, and currently are, in compliance with all existing debt covenants, both financial and non-financial.

Short-Term Debt

We use our short-term borrowings primarily to finance ES’s short-term liquidity needs, share repurchases and, on an initial basis, CEV’s investments. ES’s use of high-volume storage facilities and anticipated pipeline park and loan arrangements, combined with related economic hedging activities in the volatile wholesale natural gas market, create significant short-term cash requirements.

As of September 30, 2024, NJR had a revolving credit facility totaling $575M, with $326.0M available under the facility.

NJNG satisfies its debt needs by issuing short-term and long-term debt based on its financial profile. The seasonal nature of NJNG’s operations creates large short-term cash requirements, primarily to finance natural gas purchases and customer accounts receivable. NJNG obtains working capital for these requirements and for the temporary financing of construction and MGP remediation expenditures and energy tax payments, based on its financial profile, through the issuance of commercial paper supported by the NJNG Credit Facility or through short-term bank loans under the NJNG Credit Facility.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

NJNG’s commercial paper is sold through several commercial banks under an issuing and paying agency agreement and is supported by the $250M NJNG Credit Facility. As of September 30, 2024, there was $194.2M available under the NJNG Credit Facility, including amounts allocated to the backstop under the commercial paper program and the issuance of letters of credit.

Short-term borrowings for the twelve months ended September 30, 2024, were as follows:

(Thousands)
NJR
Notes Payable to banks:
Balance at end of period	$	236,700
Weighted average interest rate at end of period	6.23		%
Average balance for the period	$	216,996
Weighted average interest rate for average balance	6.53		%
Month end maximum for the period	$	301,550
NJNG
Commercial Paper and Notes Payable to banks:
Balance at end of period	$	55,100
Weighted average interest rate at end of period	4.98		%
Average balance for the period	$	52,868
Weighted average interest rate for average balance	5.46		%
Month end maximum for the period	$	106,700

Due to the seasonal nature of natural gas prices and demand, and because inventory levels are built up during its natural gas injection season (April through October), NJR and NJNG’s short-term borrowings tend to peak in the November through January time frame.

NJR

On August 7, 2024, NJR entered into a second amendment to NJR’s Second Amended and Restated Credit Agreement, which reduced the NJR Credit Facility from $650M to $575M and extended the maturity date of the facility to August 7, 2029, pursuant to NJR’s option to extend the maturity date under the NJR Second Amended and Restated Credit Agreement, and permits NJR to request that the maturity date be extended up to two times for an additional period of one year each. The NJR Credit Facility includes an accordion feature, which allows NJR, in the absence of a default or event of default, to increase from time to time, with the existing or new lenders, the revolving credit commitments under the NJR Credit Facility in increments of at least $50M with the total revolving credit commitments not exceeding $750M. The NJR Credit Facility also permits the borrowing of revolving loans and swingline loans, as well as a $75M sublimit for the issuance of letters of credit. Certain of NJR’s unregulated subsidiaries have guaranteed all of NJR’s obligations under the NJR Credit Facility. The credit facility is used primarily to finance its share repurchases, to satisfy ES’s short-term liquidity needs and to finance, on an initial basis, unregulated investments.

As of September 30, 2024, NJR had eleven letters of credit outstanding totaling $12.3M, which reduced the amount available under the NJR Credit Facility by the same amount. NJR does not anticipate that these letters of credit will be drawn upon by the counterparties.

Based on its average borrowings during fiscal 2024, NJR’s average interest rate was 6.53%, resulting in interest expense of approximately $14.4M. Based on average borrowings of $217.0M during the period, a 100 basis point change in the underlying average interest rate would have caused a change in interest expense of approximately $2.2M during fiscal 2024.

Neither NJNG nor its assets are obligated or pledged to support the NJR Credit Facility.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

NJNG

On August 7, 2024, NJNG entered into a second amendment to NJNG’s Second Amended and Restated Credit Agreement governing a $250M NJNG Credit Facility, which extended the maturity date of the facility to August 7, 2029, pursuant to NJNG’s option to extend the maturity date under the NJNG Second Amended and Restated Credit Agreement, and permits NJNG to request that the maturity date be extended up to two times for an additional period of one year each. The NJNG Credit Facility includes an accordion feature, which would allow NJNG, in the absence of a default or event of default, to increase from time to time, with the existing or new lenders, the revolving credit commitments under the NJNG Credit Facility in increments of at least $50M with total revolving credit commitments not exceeding $350M. The NJNG Credit Facility also permits the borrowing of revolving loans and swingline loans, as well as a $30M sublimit for the issuance of letters of credit.

As of September 30, 2024, NJNG had two letters of credit outstanding for $0.7M, which reduced the amount available under the NJNG Credit Facility by the same amount. NJNG does not anticipate that these letters of credit will be drawn upon by the counterparties.

Based on its average borrowings during fiscal 2024, NJNG’s average interest rate was 5.46%, resulting in interest expense of $2.9M. Based on average borrowings of $52.9M during the period, a 100 basis point change in the underlying average interest rate would have caused a change in interest expense of approximately $0.6M during fiscal 2024.

Short-Term Debt Covenants

Borrowings under the NJR Credit Facility, term loan credit agreement and NJNG Credit Facility are conditioned upon compliance with a maximum leverage ratio (consolidated total indebtedness to consolidated total capitalization as defined in the applicable agreements) of not more than .70 to 1.00 for NJR and .65 to 1.00 for NJNG. These revolving credit facilities and term loan credit agreement contain customary representations and warranties for transactions of this type. They also contain customary events of default and certain covenants that will limit NJR’s or NJNG’s ability, beyond agreed upon thresholds, to, among other things:

•incur additional debt;

•incur liens and encumbrances;

•make dispositions of assets;

•enter into transactions with affiliates; and

•merge, consolidate, transfer, sell or lease all or substantially all of the borrowers’ or guarantors’ assets.

These covenants are subject to a number of exceptions and qualifications set forth in the applicable agreements.

Default Provisions

The agreements governing our long-term and short-term debt obligations include provisions that, if not complied with, could require early payment or similar actions. Default events include, but are not limited to, the following:

•defaults for non-payment;

•defaults for breach of representations and warranties;

•defaults for insolvency;

•defaults for non-performance of covenants;

•cross-defaults to other debt obligations of the borrower; and

•guarantor defaults.

The occurrence of an event of default under these agreements could result in all loans and other obligations of the borrower becoming immediately due and payable and the termination of the credit facilities or term loan.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Long-Term Debt

NJR

As of September 30, 2024, NJR had the following outstanding:

•$100M of 3.48% senior notes due November 7, 2024;

•$100M of 3.54% senior notes due August 18, 2026;

•$110M of 4.38% senior notes due June 23, 2027;

•$100M of 3.96% senior notes due June 8, 2028;

•$150M of 3.29% senior notes due July 17, 2029;

•$130M of 3.60% senior notes due July 23, 2032;

•$130M of 3.50% senior notes due July 23, 2030;

•$120M of 3.13% senior notes due September 1, 2031;

•$80M of 3.25% senior notes due September 1, 2033;

•$50M of 3.64% senior notes due September 19, 2034; and

•$50M of 6.14% senior notes due December 15, 2032.

On November 7, 2024, NJR entered into a Note Purchase Agreement under which NJR issued $100M senior notes at a fixed interest rate of 5.55%, maturing in 2034.

Neither NJNG nor its assets are obligated or pledged to support NJR’s long-term debt.

NJNG

As of September 30, 2024, NJNG’s long-term debt consisted of approximately $1.6B in fixed-rate debt issuances secured by the Mortgage Indenture, with maturities ranging from 2025 to 2061, and approximately $31.6M in sale leasebacks of natural gas meters with various maturities ranging from 2025 to 2030.

In September 2023, NJNG entered into a Note Purchase Agreement for $100M aggregate principal amount of its senior notes consisting of $50M of 5.56% senior notes due September 28, 2033, which closed on September 28, 2023, and $50M of 5.85% senior notes due October 30, 2053, which closed on October 30, 2023.

On June 26, 2024, NJNG entered into a Note Purchase Agreement for $200M aggregate principal amount of its senior notes consisting of $125M of 5.82% senior notes due June 26, 2054, which closed on June 26, 2024, and $75M of 5.49% senior notes due September 30, 2034, which closed on September 30, 2024.

Senior notes are secured by an equal principal amount of NJNG’s FMBs issued under NJNG’s Mortgage Indenture.

NJR is not obligated directly nor contingently with respect to NJNG’s fixed-rate debt issuances.

Long-Term Debt Covenants and Default Provisions

The NJR and NJNG long-term debt instruments contain customary representations and warranties for transactions of their type. They also contain customary events of default and certain covenants that will limit NJR or NJNG’s ability beyond agreed upon thresholds to, among other things:

•incur additional debt (including a covenant that limits the amount of consolidated total debt of the borrower at the end of a fiscal quarter to 70% for NJR and 65% for NJNG of the consolidated total capitalization of the borrower, as those terms are defined in the applicable agreements, and a covenant limiting priority debt to 20% of the borrower’s consolidated total capitalization, as those terms are defined in the applicable agreements);

•incur liens and encumbrances;

•make loans and investments;

•make dispositions of assets;

•make dividends or restricted payments;

•enter into transactions with affiliates; and

•merge, consolidate, transfer, sell or lease substantially all of the borrower’s assets.

The aforementioned covenants are subject to a number of exceptions and qualifications set forth in the applicable note purchase agreements.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

In addition, the FMBs issued by NJNG under the Mortgage Indenture are subject to certain default provisions. Events of Default, as defined in the Mortgage Indenture, consist mainly of:

•failure for 30 days to pay interest when due;

•failure to pay principal or premium when due and payable;

•failure to make sinking fund payments when due;

•failure to comply with any other covenants of the Mortgage Indenture after 30 days’ written notice from the Trustee;

•failure to pay or provide for judgments in excess of $30M in aggregate amount within 60 days of the entry thereof; or

•certain events that are or could be the basis of a bankruptcy, reorganization, insolvency or receivership proceeding.

Upon the occurrence and continuance of such an Event of Default, the Mortgage Indenture, subject to any provisions of law applicable thereto, provides that the Trustee may take possession and conduct the business of NJNG, may sell the trust estate or proceed to foreclose the lien of the Mortgage Indenture. The interest rate on defaulted principal and interest, to the extent permitted by law, on the FMBs issued under the Mortgage Indenture is the rate stated in the applicable supplement or, if no such rate is stated, 6% per annum.

Sale Leaseback

NJNG

NJNG received approximately $8.8M, $8.4M and $17.3M in fiscal 2024, 2023 and 2022, respectively, in connection with the sale leaseback of its natural gas meters. NJNG utilizes sale leaseback arrangements as a financing mechanism to fund certain of its capital expenditures related to natural gas meters, whereby the physical asset is sold concurrent with an agreement to lease the asset back. These agreements include options to repurchase the assets sold or renew the lease at the end of the term. As NJNG retains control of the natural gas meters, these arrangements do not qualify as a sale. NJNG uses the financing method to account for the transactions. NJNG continues to evaluate this sale leaseback program based on current market conditions. Natural gas meters are excluded from the lien on NJNG property under the Mortgage Indenture.

CEV

CEV enters into transactions to sell the commercial solar assets concurrent with agreements to lease the assets back over a period of five to seven years. The Company has concluded that these arrangements do not qualify as a sale for accounting purposes, as the Company retains control of the underlying assets, and are therefore treated as financing obligations, which are typically secured by the renewable energy facility asset and its future cash flows from RECs and energy sales. ITCs and other tax benefits associated with these solar projects are transferred to the buyer, if applicable; however, the lease payments are structured so that CEV is compensated for the transfer of the related tax incentives. CEV continues to operate the solar assets, including related expenses, and retain the revenue generated from RECs and energy sales, and has the option to renew the lease or repurchase the assets sold at the end of the lease term. During fiscal 2024, 2023 and 2022, CEV received proceeds of approximately $64.7M, $167.8M and $24.1M, respectively, in connection with the sale leaseback of commercial solar projects. The proceeds received were recognized as a financing obligation on the Consolidated Balance Sheets.

Contractual Obligations and Capital Expenditures

As of September 30, 2024, there were NJR guarantees covering approximately $174.3M of natural gas purchases and ES demand fee commitments and thirteen outstanding letters of credit totaling approximately $13.0M, as previously mentioned, not yet reflected in accounts payable on the Consolidated Balance Sheets.

Estimated capital expenditures are reviewed on a regular basis and may vary based on the ongoing effects of regulatory constraints, environmental regulations, unforeseen events and the ability to access capital.

NJNG’s total capital expenditures spent or accrued during fiscal 2024 were approximately $431.8M. During fiscal 2025 capital expenditures are projected to be between $365M and $415M. NJNG expects to fund its obligations with a combination of cash flows from operations, cash on hand, issuance of commercial paper, available capacity under its revolving credit facility and the issuance of long-term debt. As of September 30, 2024, NJNG’s future MGP expenditures are estimated to be approximately $161.7M. For a more detailed description of MGP expenditures, see Note 14. Commitments and Contingent Liabilities in the accompanying Consolidated Financial Statements.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

During fiscal 2024, S&T had capital expenditures spent or accrued for the Adelphia project totaling approximately $6.6M, and capital expenditures spent or accrued for Leaf River totaling approximately $39.0M. During fiscal 2025, we expect expenditures related to the Adelphia project to be between $5M and $15M and expenditures related to Leaf River to be between $15M and $20M.

During fiscal 2024, total capital expenditures spent or accrued related to the purchase and installation of solar equipment were approximately $95.8M. CEV’s expenditures include clean energy projects that support our goal to promote renewable energy. Accordingly, CEV enters into agreements to install solar equipment for commercial projects. We estimate solar-related capital expenditures during fiscal 2025 to be between $160M and $265M.

Capital expenditures related to clean energy projects are subject to change due to a variety of factors that may affect our ability to commence operations at these projects on a timely basis or at all, including sourcing projects that meet our investment criteria, logistics associated with the start-up of commercial solar projects, such as timing of construction schedules, the permitting and regulatory process, any delays related to electric grid interconnection, economic trends or unforeseen events and the ability to access capital or allocation of capital to other investments or business opportunities.

ES does not currently anticipate any significant capital expenditures during fiscal 2025 and 2026.

During December 2020, ES entered into a series of AMAs with an investment grade public utility to release pipeline capacity associated with certain natural gas transportation contracts. The utility provides certain asset management services, and ES may deliver natural gas to the utility in exchange for aggregate net proceeds of approximately $500M, payable through November 1, 2030. The AMAs include a series of initial and permanent releases which commenced in November 2021. NJR received a total of approximately $260M in cash from fiscal 2022 through fiscal 2024 and will receive $34M per year from fiscal 2025 through fiscal 2031 under the agreements. During fiscal 2024 and 2023, ES recognized approximately $137.2M and $48.5M, respectively, of operating revenue related to the AMAs on the Consolidated Statements of Operations. Amounts received in excess of revenue, totaling approximately $22.3M and $58.7M as of September 30, 2024 and 2023, respectively, are included in deferred revenue on the Consolidated Balance Sheets.

Cash Flows

Operating Activities

Cash flows from operating activities during fiscal 2024 totaled approximately $427.4M compared with approximately $479.0M during fiscal 2023. Operating cash flows are primarily affected by variations in working capital, which can be impacted by several factors, including:

•seasonality of our business;

•fluctuations in wholesale natural gas prices and other energy prices, including changes in derivative asset and liability values;

•timing of storage injections and withdrawals;

•deferral and recovery of natural gas costs;

•changes in contractual assets utilized to optimize margins related to natural gas transactions;

•broker margin requirements;

•impact of unusual weather patterns on our wholesale business;

•timing of the collections of receivables and payments of current liabilities;

•volumes of natural gas purchased and sold; and

•timing of SREC deliveries.

The decrease of approximately $51.6M in cash flows from operating activities during fiscal 2024, compared with fiscal 2023, was due primarily to the changes in the mix of working capital components, partially offset by timing of cash received from certain ES AMAs.

Investing Activities

Cash flows used in investing activities totaled approximately $569.1M during fiscal 2024, compared with approximately $538.6M during fiscal 2023. The increase of approximately $30.5M was due primarily to increased utility plant expenditures.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS (Continued)                                                                                                                                                             

Financing Activities

Financing cash flows generally are seasonal in nature and are impacted by the volatility in pricing in the natural gas and other energy markets. NJNG’s inventory levels are built up during its natural gas injection season (April through October) and reduced during withdrawal season (November through March) in response to the supply requirements of its customers. Changes in financing cash flows can also be impacted by natural gas management and marketing activities at ES and clean energy investments at CEV.

Cash flows from financing activities totaled approximately $141.8M during fiscal 2024, compared with approximately $59.7M during fiscal 2023. The increase of approximately $82.1M is due primarily to reduced net short-term debt payments of approximately $61.6M, along with a payment of a $150M term loan in the prior year that did not occur in the current year, and an increase of approximately $16.9M from the waiver discount issuance of common stock, partially offset by a decrease in solar sale leaseback proceeds of approximately $103.1M and a $70.0M payment of long-term debt.

Credit Ratings

The table below summarizes NJNG’s credit ratings as of September 30, 2024, issued by two rating entities, Moody’s and Fitch:

	Moody’s	Fitch
Corporate Rating	N/A	A-
Commercial Paper	P-2	F-2
Senior Secured	A1	A+
Ratings Outlook	Stable	Stable

The Moody’s ratings and outlook were reaffirmed on July 3, 2024. The Fitch ratings and outlook were reaffirmed on April 15, 2024. NJNG’s Moody’s and Fitch ratings are investment-grade ratings. NJR is not rated by Moody’s or Fitch.

Although NJNG is not party to any lending agreements that would accelerate the maturity date of any obligation caused by a failure to maintain any specific credit rating, if such ratings are downgraded below investment grade, borrowing costs could increase, as would the costs of maintaining certain contractual relationships, and future financing and our access to capital markets would be reduced. Even if ratings are downgraded without falling below investment grade, NJR and NJNG could face increased borrowing costs under their credit facilities. A rating set forth above is not a recommendation to buy, sell or hold NJR’s or NJNG’s securities and may be subject to revision or withdrawal at any time. Each rating set forth above should be evaluated independently of any other rating.

The timing and mix of any external financings will target a common equity ratio that is consistent with maintaining NJNG’s current short-term and long-term credit ratings.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                          

Financial Risk Management

Commodity Market Risks

Natural gas is a nationally traded commodity. Its prices are determined effectively by the NYMEX, ICE and over-the-counter markets. The prices on the NYMEX, CME, ICE and over-the-counter markets generally reflect the national balance of natural gas supply and demand, but are also significantly influenced from time to time by other events.

Our regulated and unregulated businesses are subject to market risk due to fluctuations in the price of natural gas. To economically hedge against such fluctuations, we have entered into forwards, futures, options and swap agreements. To manage these derivative instruments, we have well-defined risk management policies and procedures that include daily monitoring of volumetric limits and monetary guidelines. Our natural gas businesses are conducted through two of our operating subsidiaries. NJNG is a regulated utility that uses futures, options and swaps to provide relative price stability, and its recovery of natural gas costs is governed by the BPU. ES uses futures, options, swaps and physical contracts to economically hedge purchases and sales of natural gas.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK (Continued)                    

The following table reflects the changes in the fair market value of financial derivatives related to natural gas purchases and sales:

	Balance			Increase			Less			Balance
(Thousands)	September 30, 2023			(Decrease) in Fair Market Value			Amounts Settled			September 30, 2024
NJNG		$	6,090		$	(13,199)		$	(7,107)		$	(2)
ES		16,178			26,911			39,954			3,135
Total		$	22,268		$	13,712		$	32,847		$	3,133

There were no changes in methods of valuations during the fiscal year ended September 30, 2024.

The following is a summary of fair market value of financial derivatives as of September 30, 2024, by method of valuation and by maturity for each fiscal year period:

(Thousands)	2025		2026		2027 - 2029			After 2029			Total Fair Value
Price based on ICE	$	3,786	$	(325)		$	(328)		$	—		$	3,133

The following is a summary of financial derivatives by type as of September 30, 2024:

		Volume Bcf	Price per MMBtu	Amounts included in Derivatives (Thousands)
NJNG	Futures	31.9	$2.57 - $3.58		$	(2)
ES	Futures	(7.7)	$1.69 - $4.22		3,135
Total					$	3,133

The following table reflects the changes in the fair market value of physical commodity contracts:

	Balance			Increase		Less		Balance
(Thousands)	September 30, 2023			(Decrease) in Fair Market Value		Amounts Settled		September 30, 2024
NJNG - Prices based on other external data		$	(445)		(2,201)		(2,088)		$	(558)
ES - Prices based on other external data		(13,616)			5,666		4,767		(12,717)
Total		$	(14,061)		3,465		2,679		$	(13,275)

Our market price risk is predominately linked with changes in the price of natural gas at the Henry Hub, the delivery point for the NYMEX natural gas futures contracts. Based on price sensitivity analysis, an illustrative 10% movement in the natural gas futures contract price, for example, increases (decreases) the reported derivative fair value of all open, unadjusted Henry Hub natural gas futures and fixed price swap positions by approximately $3.1M. This analysis does not include potential changes to reported credit adjustments embedded in the $3.0M reported fair value.

Derivative Fair Value Sensitivity Analysis
(Thousands)	Henry Hub Futures and Fixed Price Swaps
Percent increase in NYMEX natural gas futures prices	0%		5%		10%		15%		20%
Estimated change in derivative fair value	$	—	$	(1,562)	$	(3,124)	$	(4,686)	$	(6,248)
Ending derivative fair value	$	2,993	$	1,431	$	(131)	$	(1,693)	$	(3,255)
Percent decrease in NYMEX natural gas futures prices	0%		(5)%		(10)%		(15)%		(20)%
Estimated change in derivative fair value	$	—	$	1,562	$	3,124	$	4,686	$	6,248
Ending derivative fair value	$	2,993	$	4,555	$	6,117	$	7,679	$	9,241

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK (Continued)                    

Wholesale Credit Risk

The following is a summary of gross and net credit exposures, grouped by investment and non-investment grade counterparties, as of September 30, 2024. Gross credit exposure for ES is defined as the unrealized fair value of derivative and energy trading contracts, plus any outstanding wholesale receivable for the value of natural gas or power delivered and/or financial derivative commodity contract that has settled for which payment has not yet been received. Gross credit exposure for S&T is defined as demand and estimated usage fees for contracted services and/or market value of loan balances for which payment has not yet been received. Net credit exposure is defined as gross credit exposure reduced by collateral received from counterparties and/or payables, where netting agreements exist. The amounts presented below exclude accounts receivable for NJNG retail natural gas sales and services.

ES’s, CEV’s and S&T’s counterparty credit exposure as of September 30, 2024, is as follows:

(Thousands)	Gross Credit Exposure			Net Credit Exposure
Investment grade		$	91,509		$	88,779
Noninvestment grade		7,033			1,319
Internally-rated investment grade		16,032			14,813
Internally-rated noninvestment grade		17,366			11,904
Total		$	131,940		$	116,815

NJNG’s counterparty credit exposure as of September 30, 2024, is as follows:

(Thousands)	Gross Credit Exposure			Net Credit Exposure
Investment grade		$	5,894		$	5,715
Noninvestment grade		310			—
Internally-rated investment grade		136			30
Internally-rated noninvestment grade		9			1
Total		$	6,349		$	5,746

Due to the inherent volatility in the market price for natural gas, electricity and RECs, the market value of contractual positions with individual counterparties could exceed established credit limits or collateral provided by those counterparties. If a counterparty failed to perform the obligations under its contract (for example, failed to make payment for natural gas received), we could sustain a loss. This loss would comprise the loss on natural gas delivered but not paid for and/or the cost of replacing natural gas not delivered or received at a price that exceeds the original contract price. Any such loss could have a material impact on our financial condition, results of operations or cash flows.

Effects of Interest Rate Fluctuations

We are also exposed to changes in interest rates on our debt hedges and variable rate debt. We do not believe an immediate 10% increase or decrease in interest rates would have a material effect on our operating results or cash flows.

Information regarding NJR’s interest rate risk can be found in the Liquidity and Capital Resources - Debt section of Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Effects of Inflation

Any change in price levels has an effect on operating results due to the capital-intensive and regulated nature of our utility subsidiary. The Company’s operations are sensitive to increases in the rate of inflation because of its operational and capital spending requirements in both its regulated and non-regulated businesses. We attempt to minimize the effects of inflation through cost control, productivity improvements and regulatory actions, when appropriate. See Item 1A. Risk Factors for additional information related to the impact of recent increases in inflation rates.

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Part II

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA                                                                              

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Management of New Jersey Resources Corporation is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act. The Company’s internal control over financial reporting is a process designed to provide reasonable assurance to the Company’s Management and Board of Directors regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP and includes policies and procedures that:

•pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;

•provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and

•provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.

Under the supervision and with the participation of the Company’s management, including its principal executive officer and principal financial officer, management conducted an evaluation of the effectiveness of the Company’s internal control over financial reporting as of September 30, 2024. In making this assessment, management used the criteria for effective internal control over financial reporting described in the Internal Control-Integrated Framework (2013) set forth by the Committee of Sponsoring Organizations of the Treadway Commission. Based on the assessment, management concluded that, as of September 30, 2024, the Company’s internal control over financial reporting was effective to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP.

The conclusion of the Company’s principal executive officer and principal financial officer is based on the recognition that there are inherent limitations in all systems of internal control over financial reporting. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements, errors or fraud. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The Company’s independent registered public accounting firm, Deloitte & Touche LLP, has issued its report on the effectiveness of the Company’s internal control over financial reporting as of September 30, 2024, which appears herein.

November 26, 2024

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareowners and the Board of Directors of New Jersey Resources Corporation

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of New Jersey Resources Corporation and subsidiaries (the “Company”) as of September 30, 2024 and 2023, the related consolidated statements of operations, comprehensive income, common stock equity, and cash flows, for each of the three years in the period ended September 30, 2024, and the related notes and the financial statement schedule listed in the Index at Item 15 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of September 30, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended September 30, 2024, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of September 30, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated November 26, 2024, expressed an unqualified opinion on the Company’s internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Regulation — Impact of Rate-Regulation on the Financial Statements — Refer to Notes 2 and 4 to the financial statements

Critical Audit Matter Description

New Jersey Natural Gas Company (“NJNG”), a subsidiary of the Company, is a regulated gas distribution company that serves customers in central and northern New Jersey. NJNG is subject to regulation by the New Jersey Board of Public Utilities (the “BPU”), which has jurisdiction with respect to the rates of gas distribution companies in New Jersey. Management has determined NJNG meets the requirements under accounting principles generally accepted in the United States of America to prepare its financial statements in accordance with ASC 980, Regulated Operations.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

NJNG is subject to cost-based regulation; therefore, it is permitted to recover authorized operating expenses and earn a reasonable return on its utility capital investments based on the BPU’s approval. The impact of the ratemaking process and decisions authorized by the BPU allows NJNG to capitalize or defer certain costs that are expected to be recovered from its customers as regulatory assets, and to recognize certain obligations representing amounts that are probable future expenditures as regulatory liabilities in accordance with accounting guidance applicable to regulated operations. Regulatory decisions can have an impact on the recovery of costs, the rate of return earned on investment, and the timing and amount of assets to be recovered by rates. Decisions to be made by the BPU in the future will impact the accounting for regulated operations, including decisions about the amount of allowable costs and return on invested capital included in rates and any refunds that may be required.

Accounting for the economics of rate-regulation impacts multiple financial statement line items and disclosures, such as regulated property, plant, and equipment, regulatory assets and liabilities, operating revenues and depreciation expense. While NJNG expects to recover costs from customers through regulated rates, there is a risk that the BPU will not approve full recovery of such costs or full recovery of all amounts invested in the utility business and a reasonable return on that investment. We identified the impact of rate-regulation as a critical audit matter due to the significant judgments made by management to support its assertions about the impact of regulatory orders on the financial statements, including assessing the probability of both recovery in rates of incurred costs, and refunds to customers. Given that management’s accounting judgments are based on assumptions about the outcome of future decisions by the BPU, auditing these judgments requires specialized knowledge of accounting for rate regulation and the rate setting process due to its inherent complexities.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the uncertainty around the impact of regulatory orders on the financial statements, including the probability of both recovery in rates of incurred costs, and refunds to customers, included the following, among others:

•We tested the effectiveness of controls over the relevant regulatory account balances and disclosures, including management’s controls over the monitoring and evaluation of regulatory developments that may affect the probability of recovering costs in future rates or of a future reduction in rates due to refunds to customers.

•We read relevant regulatory orders issued by the BPU for NJNG and other public utilities in New Jersey, regulatory statutes, interpretations, procedural memorandums, filings made by intervenors, and other publicly available information to assess the probability of recovery in future rates or of a future reduction in rates based on precedence of the BPU’s treatment of similar costs under similar circumstances. We also obtained and read the November 21, 2024 BPU order adopting the stipulation of settlement for NJNG’s January 2024 base rate case. We evaluated the external information and compared that to management’s assertions regarding the probability of recovery or refund of regulatory asset and liability balances for completeness.

•We obtained an analysis from management regarding the probability of recovery for regulatory assets or refund or future reduction in rates for regulatory liabilities in order to assess management’s assertion that amounts are probable of recovery or a future reduction in rates.

•We evaluated the Company’s disclosures related to the impacts of rate regulation, including the balances recorded and regulatory developments.

/s/ Deloitte & Touche LLP

Morristown, New Jersey

November 26, 2024

We have served as the Company’s auditor since 1951.

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Part II

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareowners and the Board of Directors of New Jersey Resources Corporation

Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting of New Jersey Resources Corporation and subsidiaries (the “Company”) as of September 30, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of September 30, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended September 30, 2024, of the Company and our report dated November 26, 2024, expressed an unqualified opinion on those financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Deloitte & Touche LLP

Morristown, New Jersey

November 26, 2024

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Part II

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

CONSOLIDATED STATEMENTS OF OPERATIONS

(Thousands, except per share data)
Fiscal years ended September 30,	2024		2023		2022
OPERATING REVENUES
Utility	$	1,018,482	$	1,011,284	$	1,127,417
Nonutility	778,057		951,710		1,778,562
Total operating revenues	1,796,539		1,962,994		2,905,979
OPERATING EXPENSES
Natural gas purchases:
Utility	405,332		416,158		547,901
Nonutility	304,426		555,579		1,393,656
Related parties	7,147		7,206		7,395
Operation and maintenance	394,636		373,568		361,866
Regulatory rider expenses	60,327		50,542		59,437
Depreciation and amortization	166,567		152,941		129,249
Total operating expenses	1,338,435		1,555,994		2,499,504
OPERATING INCOME	458,104		407,000		406,475
Other income, net	41,553		26,083		22,295
Interest expense, net of capitalized interest	130,275		123,014		85,830
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES	369,382		310,069		342,940
Income tax provision	84,906		49,275		76,195
Equity in earnings of affiliates	5,299		3,930		8,177
NET INCOME	$	289,775	$	264,724	$	274,922
EARNINGS PER COMMON SHARE
Basic	$2.94		$2.73		$2.86
Diluted	$2.92		$2.71		$2.85
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic	98,634		97,028		96,100
Diluted	99,289		97,627		96,488

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Thousands)
Fiscal years ended September 30,	2024		2023		2022
Net income	$	289,775	$	264,724	$	274,922
Other comprehensive income (loss), net of tax
Reclassifications of losses to net income on derivatives designated as hedging instruments, net of tax of $(317), $(317) and $(317), respectively	1,054		1,053		1,054
Adjustment to postemployment benefit obligation, net of tax of $(706), $1,873 and $(8,657), respectively	2,384		(6,186)		28,648
Other comprehensive income (loss), net of tax	3,438		(5,133)		29,702
Comprehensive income	$	293,213	$	259,591	$	304,624

See Notes to Consolidated Financial Statements

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Part II

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Thousands)
Fiscal years ended September 30,	2024		2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	289,775	$	264,724	$	274,922
Adjustments to reconcile net income to cash flows from operating activities
Unrealized loss (gain) on derivative instruments	19,574		(38,081)		(59,906)
Depreciation and amortization	166,567		152,941		129,249
Amortization of acquired wholesale energy contracts	125		2,271		2,561
Allowance for equity used during construction	(6,874)		(7,137)		(11,243)
Allowance for doubtful accounts	1,229		1,570		2,401
Non-cash lease expense	4,674		3,708		4,850
Deferred income taxes	85,735		30,462		81,659
Equivalent value of ITCs recognized on equipment financing	(15,328)		(6,986)		(7,542)
Manufactured gas plant remediation costs	(23,451)		(9,571)		(17,538)
Cost of removal - asset retirement obligations	(1,727)		(1,526)		(1,289)
Contributions to postemployment benefit plans	(2,659)		(4,706)		(6,785)
Taxes related to stock-based compensation	(1,219)		(588)		(144)
Changes in:
Components of working capital	(61,058)		61,525		(77,687)
Other noncurrent assets and liabilities	(27,956)		30,387		9,972
Cash flows from operating activities	427,407		478,993		323,480
CASH FLOWS USED IN INVESTING ACTIVITIES
Expenditures for:
Utility plant	(372,019)		(350,304)		(259,081)
Solar equipment	(104,287)		(107,303)		(146,676)
Storage and transportation and other	(46,628)		(42,757)		(153,378)
Cost of removal	(48,385)		(40,555)		(39,293)
Distribution from equity investees in excess of equity in earnings	2,246		2,294		2,336
Investments in equity investees, net of return of capital	—		—		5,479
Cash flows used in investing activities	(569,073)		(538,625)		(590,613)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term debt	250,000		225,000		360,000
Payments of long-term debt	(125,066)		(71,934)		(68,343)
Proceeds from term loan	—		—		150,000
Payments of term loan	—		(150,000)		—
Proceeds from (payments of) short-term debt, net	39,700		(21,850)		(103,350)
Proceeds from sale leaseback transactions - solar	64,694		167,790		24,071
Proceeds from sale leaseback transactions - natural gas meters	8,814		8,441		17,300
Payments of common stock dividends	(165,063)		(150,973)		(127,704)
Proceeds from waiver discount issuance of common stock	59,730		42,807		—
Proceeds from issuance of common stock - DRP	14,676		14,993		14,745
Tax withholding payments related to net settled stock compensation	(5,724)		(4,577)		(4,177)
Cash flows from financing activities	141,761		59,697		262,542
Change in cash, cash equivalents and restricted cash	95		65		(4,591)
Cash, cash equivalents and restricted cash at beginning of period	1,517		1,452		6,043
Cash, cash equivalents and restricted cash at end of period	$	1,612	$	1,517	$	1,452
CHANGES IN COMPONENTS OF WORKING CAPITAL
Receivables	$	(12,744)	$	112,628	$	(16,658)
Inventories	(11,086)		67,445		(80,801)
Recovery of natural gas costs	734		(14,427)		1,037
Natural gas purchases payable	6,238		(183,772)		66,352
Natural gas purchases payable - related parties	16		8		(10)
Deferred revenue	(39,832)		934		33,802
Accounts payable and other	15,640		7,537		(34,259)
Prepaid expenses	(2,013)		(1,169)		(406)
Prepaid and accrued taxes	(23,517)		16,415		(1,516)
Restricted broker margin accounts	19,535		46,364		(51,165)
Customers’ credit balances and deposits	(6,315)		11,664		660
Other current assets and liabilities	(7,714)		(2,102)		5,277
Total	$	(61,058)	$	61,525	$	(77,687)
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
Cash paid for:
Interest (net of amounts capitalized)	$	120,239	$	108,194	$	84,375
Income taxes	$	21,313	$	4,282	$	4,252
Accrued capital expenditures	$	22,535	$	25,867	$	34,674
See Notes to Consolidated Financial Statements

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Part II

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

CONSOLIDATED BALANCE SHEETS

ASSETS

(Thousands)
September 30,	2024		2023
PROPERTY, PLANT AND EQUIPMENT
Utility plant, at cost	$	4,221,395	$	3,843,037
Construction work in progress	233,295		237,428
Nonutility plant and equipment, at cost	1,834,956		1,767,306
Construction work in progress	206,869		142,768
Total property, plant and equipment	6,496,515		5,990,539
Accumulated depreciation and amortization, utility plant	(786,594)		(714,087)
Accumulated depreciation and amortization, nonutility plant and equipment	(306,698)		(254,397)
Property, plant and equipment, net	5,403,223		5,022,055
CURRENT ASSETS
Cash and cash equivalents	1,017		954
Customer accounts receivable:
Billed	105,531		97,540
Unbilled revenues	20,094		19,100
Allowance for doubtful accounts	(8,506)		(11,036)
Regulatory assets	73,070		73,587
Natural gas in storage, at average cost	199,125		199,501
Materials and supplies, at average cost	38,484		27,022
Prepaid expenses	11,754		9,741
Prepaid taxes	67,066		43,046
Derivatives, at fair value	6,813		30,755
Restricted broker margin accounts	13,243		20,796
Other current assets	26,904		21,071
Total current assets	554,595		532,077
NONCURRENT ASSETS
Investments in equity method investees	101,744		104,134
Regulatory assets	609,192		584,830
Operating lease assets	184,485		175,740
Derivatives, at fair value	806		1,564
Software costs	10,522		8,375
Deferred income taxes	20,751		28,383
Postemployment employee benefit assets	24,660		18,684
Other noncurrent assets	71,667		61,654
Total noncurrent assets	1,023,827		983,364
Total assets	$	6,981,645	$	6,537,496

See Notes to Consolidated Financial Statements

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Part II

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

CAPITALIZATION AND LIABILITIES

(Thousands, except share data)
September 30,	2024		2023
CAPITALIZATION
Common stock, $2.50 par value; authorized 150,000,000 shares; outstanding shares September 30, 2024 — 99,461,448; September 30, 2023 — 97,584,455	$	248,159	$	243,458
Premium on common stock	633,811		558,654
Accumulated other comprehensive loss, net of tax	(6,521)		(9,959)
Treasury stock at cost and other; shares September 30, 2024 — 16,302; September 30, 2023 — 13,041	26,220		20,748
Retained earnings	1,298,774		1,177,834
Common stock equity	2,200,443		1,990,735
Long-term debt	2,879,464		2,768,017
Total capitalization	5,079,907		4,758,752
CURRENT LIABILITIES
Current maturities of long-term debt	189,006		116,155
Short-term debt	291,800		252,100
Natural gas purchases payable	57,515		51,277
Natural gas purchases payable to related parties	875		859
Deferred revenue	21,572		61,404
Accounts payable and other	169,232		151,790
Dividends payable	44,752		40,981
Accrued taxes	10,593		10,090
Regulatory liabilities	32,981		32,287
New Jersey Clean Energy Program	18,491		15,804
Derivatives, at fair value	6,271		16,145
Restricted broker margin accounts	1,146		8,029
Operating lease liabilities	4,945		4,772
Customers’ credit balances and deposits	38,595		44,910
Total current liabilities	887,774		806,603
NONCURRENT LIABILITIES
Deferred income taxes	358,783		285,427
Deferred investment tax credits	2,156		2,434
Deferred revenue	3,095		659
Derivatives, at fair value	11,490		7,967
Manufactured gas plant remediation	161,650		169,390
Postemployment employee benefit liabilities	64,609		102,528
Regulatory liabilities	175,847		180,458
Operating lease liabilities	159,303		148,023
Asset retirement obligations	66,698		61,993
Other noncurrent liabilities	10,333		13,262
Total noncurrent liabilities	1,013,964		972,141
Commitments and contingent liabilities (Note 14)
Total capitalization and liabilities	$	6,981,645	$	6,537,496

See Notes to Consolidated Financial Statements

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Part II

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY

(Thousands)	Number of Shares	Common Stock		Premium on Common Stock		Accumulated Other Comprehensive (Loss) Income			Treasury Stock And Other		Retained Earnings		Total
Balance as of September 30, 2021	95,710	$	240,644	$	502,584		$	(34,528)	$	(12,448)	$	934,610	$	1,630,862
Net income	—	—		—			—		—		274,922		274,922
Other comprehensive income	—	—		—			29,702		—		—		29,702
Common stock issued:
Incentive compensation plan	193	481		8,665			—		—		—		9,146
Dividend reinvestment plan (1)	355	491		8,450			—		5,800		—		14,741
Cash dividend declared ($1.4775 per share)	—	—		—			—		—		(142,004)		(142,004)
Treasury stock and other	(8)	—		(2)			—		(157)		—		(159)
Balance as of September 30, 2022	96,250	241,616		519,697			(4,826)		(6,805)		1,067,528		1,817,210
Net income	—	—		—			—		—		264,724		264,724
Other comprehensive loss	—	—		—			(5,133)		—		—		(5,133)
Common stock issued:
Incentive compensation plan	136	339		4,829			—		—		—		5,168
Dividend reinvestment plan (1)	258	205		6,069			—		8,760		—		15,034
Waiver discount	948	1,298		28,059			—		13,450		—		42,807
Cash dividend declared ($1.59 per share)	—	—		—			—		—		(154,418)		(154,418)
Treasury stock and other	(8)	—		—			—		5,343		—		5,343
Balance as of September 30, 2023	97,584	243,458		558,654			(9,959)		20,748		1,177,834		1,990,735
Net income	—	—		—			—		—		289,775		289,775
Other comprehensive income	—	—		—			3,438		—		—		3,438
Common stock issued:
Incentive compensation plan	154	385		5,099			—		—		—		5,484
Dividend reinvestment plan	346	864		13,780			—		—		—		14,644
Waiver discount	1,380	3,452		56,278			—		—		—		59,730
Cash dividend declared ($1.71 per share)	—	—		—			—		—		(168,835)		(168,835)
Treasury stock and other	(3)	—		—			—		5,472		—		5,472
Balance as of September 30, 2024	99,461	$	248,159	$	633,811		$	(6,521)	$	26,220	$	1,298,774	$	2,200,443

(1)Certain shares sold through the DRP issued from treasury stock are at average cost, which may differ from the actual market price paid.

See Notes to Consolidated Financial Statements

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New Jersey Resources Corporation

Part II

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

1. NATURE OF THE BUSINESS

The Company provides regulated natural gas distribution services, transmission and storage services and operates certain unregulated businesses primarily through the following:

NJNG provides natural gas utility service to residential and commercial customers throughout Burlington, Middlesex, Monmouth, Morris, Ocean and Sussex counties in New Jersey and is subject to rate regulation by the BPU. NJNG comprises the Natural Gas Distribution segment.

NJRCEV, the Company’s clean energy subsidiary, comprises the CEV segment and owns and operates clean energy projects, including commercial and residential solar installations located in New Jersey, Rhode Island, New York, Connecticut, Michigan and Indiana.

On November 25, 2024, CEV completed the sale of its 91 MW residential solar portfolio, and related assets and liabilities included in The Sunlight Advantage® program to a third party for a total purchase price of $132.5M. See Note 17. Subsequent Events for more information regarding the transaction.

NJRES comprises the ES segment. ES maintains and transacts around a portfolio of natural gas transportation and storage capacity contracts and provides physical wholesale energy, retail energy and energy management services in the U.S.

NJR Midstream Holdings Corporation, which comprises the S&T segment, invests in energy-related ventures through its subsidiaries. The Company operates natural gas storage and transmission assets through the wholly-owned subsidiaries of Leaf River and Adelphia and is subject to rate regulation by FERC. The Company holds a 50% combined ownership interest in Steckman Ridge, located in Pennsylvania, which is accounted for under the equity method of accounting.

NJR Retail Holdings Corporation has one principal subsidiary: NJRHS, which provides heating, central air conditioning, standby generators, solar and other indoor and outdoor comfort products to residential homes throughout New Jersey. NJRHS is included in HSO.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated.

Other financial investments or contractual interests that lack the characteristics of a voting interest entity, which are commonly referred to as variable interest entities, are evaluated by the Company to determine if the entity has the power to direct business activities and, therefore, would be considered a controlling interest that the Company would have to consolidate. Based on those evaluations, NJR has determined that it does not have any investments in variable interest entities as of September 30, 2024, 2023 and 2022.

Investments in entities over which the Company does not have a controlling financial interest are accounted for under the equity method.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires the Company to make estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingencies during the reporting period. On a quarterly basis, or more frequently whenever events or changes in circumstances indicate a need, the Company evaluates its estimates, including those related to the calculation of equity method investments, lease liabilities, unbilled revenues, allowance for doubtful accounts, provisions for depreciation and amortization, long-lived assets, regulatory assets and liabilities, income taxes, pensions and other postemployment benefits, contingencies related to environmental matters and litigation and the fair value of derivative instruments and debt. AROs are evaluated periodically as required. The Company’s estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources.

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New Jersey Resources Corporation

Part II

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

The Company has legal, regulatory and environmental proceedings during the normal course of business that can result in loss contingencies. When evaluating the potential for a loss, the Company will establish a reserve if a loss is probable and can be reasonably estimated, in which case it is the Company’s policy to accrue the full amount of such estimates. Where the information is sufficient only to establish a range of probable liability, and no point within the range is more likely than any other, it is the Company’s policy to accrue the lower end of the range. In the normal course of business, estimated amounts are subsequently adjusted to actual results that may differ from estimates.

Revenues

Revenues from the sale of natural gas to NJNG customers are recognized in the period that natural gas is delivered and consumed by customers, including an estimate for unbilled revenue. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the month. At the end of each month, the amount of natural gas delivered to each customer after the last meter reading through the end of the respective accounting period is estimated, and recognizes unbilled revenues related to these amounts. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects, unaccounted-for natural gas and the most current tariff rates.

CEV recognizes revenue when SRECs are transferred to counterparties. SRECs are physically delivered through the transfer of certificates as per contractual settlement schedules. The SREC program officially closed to new qualified solar projects in April 2020.

In December 2019, the BPU established the TREC as the successor to the SREC program. TRECs provide a fixed compensation base multiplied by an assigned project factor in order to determine their value. The project factor is determined by the type and location of the project, as defined.

In July 2021, the BPU established a new successor solar incentive program, or SREC IIs. The ADI Program provides administratively set incentives for net metered projects of 5 MW or less. RECs generated through the production of electricity under this program are known as SREC IIs.

TRECs and SREC IIs generated are required to be purchased monthly by a REC program administrator as appointed by the BPU. Revenue for TRECs and SREC IIs are recognized upon generation and are transferred monthly based upon metered solar electricity activity.

Revenues for ES are recognized when the natural gas is physically delivered to the customer. In addition, changes in the fair value of derivatives that economically hedge the forecasted sales of the natural gas are recognized in operating revenues as they occur. ES also recognizes changes in the fair value of SREC derivative contracts as a component of operating revenues.

During December 2020, ES entered into a series of AMAs with an investment grade public utility to release pipeline capacity associated with certain natural gas transportation contracts, which commenced in November 2021. The AMAs include a series of temporary and permanent releases, and revenue under these agreements is recognized as the performance obligations are satisfied. For temporary releases of pipeline capacity, revenue is recognized on a straight-line basis over the agreed-upon term. For permanent releases of pipeline capacity, which represent a transfer of contractual rights for such capacity, revenue is recognized upon the transfer of the underlying contractual rights. ES recognized $137.2M and $48.5M of operating revenue related to the AMAs on the Consolidated Statements of Operations during fiscal 2024 and 2023, respectively. Amounts received in excess of revenue recognized totaling $22.3M and $58.7M are included in deferred revenue on the Consolidated Balance Sheets as of September 30, 2024 and 2023, respectively.

S&T generates revenues from firm storage contracts and transportation contracts, related usage fees and hub services for the use of storage space, injections and withdrawals from their natural gas storage facility and the delivery of natural gas to customers. Demand fees are recognized as revenue over the term of the related agreement while usage fees and hub services revenues are recognized as services are performed.

Revenues from all other activities are recorded in the period during which products or services are delivered and accepted by customers, or over the related contractual term. See Note 3. Revenue for further information.

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New Jersey Resources Corporation

Part II

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

Natural Gas Purchases

NJNG’s tariff includes a component for BGSS, which is designed to allow it to recover the cost of natural gas through rates charged to its customers and is typically revised on an annual basis. As part of computing its BGSS rate, NJNG projects its cost of natural gas, net of supplier refunds, the impact of hedging activities and cost savings created by BGSS incentive programs. NJNG subsequently recovers or credits the difference, if any, of actual costs compared with those included in current rates. Any underrecoveries or overrecoveries are either credited to customers or deferred and, subject to BPU approval, reflected in the BGSS rates in subsequent years.

Natural gas purchases at ES are composed of natural gas costs to be paid upon completion of a variety of transactions, as well as realized gains and losses from settled derivative instruments and unrealized gains and losses on the change in fair value of derivative instruments that have not yet settled. Changes in the fair value of derivatives that economically hedge the forecasted purchases of natural gas are recognized in natural gas purchases as they occur.

Demand Fees

For the purpose of securing storage and pipeline capacity in support of their respective businesses, ES and NJNG enter into storage and pipeline capacity contracts, which require the payment of associated demand fees and charges that allow them access to a high priority of service in order to maintain the ability to access storage or pipeline capacity during a fixed time period, which generally ranges from one to 10 years. Many of these demand fees and charges are based on tariff rates as established and regulated by FERC. These charges represent commitments to pay storage providers and pipeline companies for the priority right to transport and/or store natural gas utilizing their respective assets.

The following table summarizes the demand charges, which are net of capacity releases, and are included as a component of natural gas purchases on the Consolidated Statements of Operations for the fiscal years ended September 30:

(Millions)	2024		2023		2022
ES	$	72.6	$	74.6	$	95.4
NJNG	200.4		183.4		170.3
Total	$	273.0	$	258.0	$	265.7

ES expenses demand charges over the term of the service being provided.

NJNG’s costs associated with demand charges are included in its weighted average cost of natural gas. The demand charges are expensed based on NJNG’s BGSS sales and recovered as part of the natural gas commodity component of its BGSS tariff.

Operations and Maintenance Expenses

O&M includes salaries and benefits, materials and supplies, usage of vehicles, tools and equipment, payments to contractors, utility plant maintenance, amortization of software costs for unregulated entities, customer service, professional fees and other outside services, insurance expense, accretion of cost of removal for future retirements of utility assets and other administrative expenses, and are expensed as incurred.

Stock-Based Compensation

Stock-based compensation represents costs related to stock-based awards granted to employees and members of NJR’s Board of Directors. NJR recognizes stock-based compensation based upon the estimated fair value of awards. The recognition period for these costs begins at either the applicable service inception date or grant date and continues throughout the requisite service period. The related compensation cost is recognized as O&M on the Consolidated Statements of Operations. See Note 10. Stock-Based Compensation for further information.

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New Jersey Resources Corporation

Part II

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

Income Taxes

The Company computes income taxes using the asset and liability method, whereby deferred income taxes are generally determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. See Note 12. Income Taxes. In addition, the Company evaluates its tax positions to determine the appropriate accounting and recognition of future obligations associated with unrecognized tax benefits.

NJR evaluates its tax positions to determine the appropriate accounting and recognition of potential future obligations associated with unrecognized tax benefits. A tax benefit claimed, or expected to be claimed, on a tax return may be recognized if it is more likely than not that the position will be upheld upon examination by the applicable taxing authority. Interest and penalties related to unrecognized tax benefits, if any, are recognized within income tax expense and accrued interest, and penalties are recognized within other noncurrent liabilities on the Consolidated Balance Sheets.

To the extent that NJNG invests in property that qualifies for ITCs, the ITC is deferred and amortized to income over the life of the equipment in accordance with regulatory treatment. ITCs at the unregulated subsidiaries of NJR are recorded on the balance sheet as a reduction to property, plant and equipment when the property is placed in service, and recognized in earnings as a reduction of depreciation expense over the useful lives of the related assets.

Investments in Equity Investees

The Company accounts for its investment in Steckman Ridge using the equity method of accounting where it is not the primary beneficiary, as defined under ASC 810, Consolidation; its respective ownership interests are 50% or less and/or it has significant influence over operating and management decisions. The Company’s share of earnings is recognized as equity in earnings of affiliates on the Consolidated Statements of Operations.

Equity method investments are reviewed for impairment when changes in facts and circumstances indicate that the current fair value may be less than the asset’s carrying amount. If the Company determines the decline in the value of its equity method investment is other than temporary, an impairment charge is recorded in an amount equal to the excess of the carrying value of the asset over its fair value. See Note 7. Investments in Equity Investees for more information regarding impairments.

Property, Plant and Equipment

Property, plant and equipment is stated at original cost. Costs include direct labor, materials and third-party construction contractor costs, capitalized interest and certain indirect costs related to equipment and employees engaged in construction. Utility plant and nonutility plant for Adelphia also includes AFUDC. Upon retirement, the cost of depreciable property, plus removal costs less salvage, is charged to accumulated depreciation with no gain or loss recorded.

Depreciation is computed on a straight-line basis over the useful life of the assets for the Company’s nonutility entities, and using rates based on the estimated average lives of the various classes of depreciable property for NJNG. The composite rate of depreciation used for NJNG was 2.69% of average depreciable property in fiscal 2024, 2.68% in fiscal 2023 and 2.66% in fiscal 2022. The Company recorded $166.6M, $152.9M and $129.2M in depreciation expense during fiscal 2024, 2023 and 2022, respectively.

Property, plant and equipment was comprised of the following as of September 30:

(Thousands)	Estimated
Property Classifications	Useful Lives	2024		2023
Distribution facilities	11 to 54 years	$	3,436,308	$	3,063,111
Transmission facilities	28 to 42 years	656,098		650,817
Storage facilities	27 to 86 years	86,329		85,603
Solar property	15 to 35 years	885,518		864,838
Storage and transportation property	5 to 50 years	929,850		884,647
All other property	5 to 40 years	62,248		61,327
Construction work in progress		440,164		380,196
Total property, plant and equipment		6,496,515		5,990,539
Accumulated depreciation and amortization		(1,093,292)		(968,484)
Property, plant and equipment, net		$	5,403,223	$	5,022,055

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New Jersey Resources Corporation

Part II

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

Within storage and transportation property, base gas is required to maintain the necessary pressure and to allow for efficient operation of the Leaf River storage facility. The base gas is determined to be recoverable and is considered part of the facility and thus presented as a component in property, plant and equipment. This natural gas is not depreciated, as it is expected to be recovered and sold. As of September 30, 2024 and 2023, the base gas had a cost basis of $21.4M and $20.9M, respectively.

Capitalized and Deferred Interest

NJNG’s base rates include the ability to recover AFUDC on its construction work in progress. For all NJNG construction projects, an incremental cost of equity is recoverable during periods when NJNG’s short-term debt balances are lower than its construction work in progress. For more information on AFUDC treatment with respect to certain accelerated infrastructure projects, see Note 4. Regulation - Infrastructure Programs. Capitalized amounts associated with the debt and equity components of NJNG’s AFUDC are recorded in utility plant on the Consolidated Balance Sheets. Corresponding amounts for the debt component are recognized in interest expense and in other income for the equity component on the Consolidated Statements of Operations.

Adelphia’s base rates include the ability to recover AFUDC on its construction work in progress. Capitalized amounts associated with Adelphia’s AFUDC are recorded in nonutility plant on the Consolidated Balance Sheets. Corresponding amounts for the debt component are recognized in interest expense and in other income for the equity component on the Consolidated Statements of Operations.

Capitalized and deferred interest include the following for the fiscal years ended September 30:

($ in thousands)	2024						2023						2022
AFUDC:	NJNG			Adelphia			NJNG			Adelphia			NJNG			Adelphia
Debt	$	4,729		$	64		$	3,546		$	90		$	1,648		$	4,019
Equity	6,761			113			6,979			158			4,169			7,074
Total	$	11,490		$	177		$	10,525		$	248		$	5,817		$	11,093
Weighted average interest rate	6.48		%	8.28		%	6.41		%	8.28		%	4.91		%	8.28		%

Pursuant to a BPU order, NJNG is permitted to recover carrying costs on uncollected balances related to SBC program costs, which include NJCEP, RAC and USF expenditures. The NJCEP and RAC interest rates change each September based on the August 31 seven-year constant maturity treasury rate plus 60 basis points. The SBC rate was 4.33%, 4.79% and 3.85% for the fiscal years ended September 30, 2024, 2023 and 2022, respectively. Accordingly, other income included $2.6M, $1.8M and $0.9M in the fiscal years ended September 30, 2024, 2023 and 2022, respectively.

CEV capitalizes interest on the allocation of the costs of debt borrowed for the financing of solar investments. Capitalized amounts are included in nonutility plant and equipment on the Consolidated Balance Sheets. Corresponding amounts are recognized in interest expense on the Consolidated Statements of Operations.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on deposit and temporary investments with maturities of three months or less, and excludes restricted cash related to escrow balances for utility plant projects at NJNG, which are recorded in other noncurrent assets on the Consolidated Balance Sheets.

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Consolidated Balance Sheets to the total amounts in the Consolidated Statements of Cash Flows, as of September 30:

(Thousands)	2024		2023		2022
Balance Sheet
Cash and cash equivalents	$	1,017	$	954	$	1,107
Restricted cash in other noncurrent assets	$	595	$	563	$	345
Statements of Cash Flow
Cash, cash equivalents and restricted cash	$	1,612	$	1,517	$	1,452

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New Jersey Resources Corporation

Part II

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

Allowance for Doubtful Accounts

The Company segregates financial assets, primarily trade receivables and unbilled revenues due in one year or less, into portfolio segments based on shared risk characteristics, such as geographical location and regulatory environment, for evaluation of expected credit losses. Historical and current information, such as average write-offs, are applied to each portfolio segment to estimate the allowance for losses on uncollectible receivables. Additionally, the allowance for losses on uncollectible receivables is adjusted for reasonable and supportable forecasts of future economic conditions, which can include changing weather, commodity prices, regulations and macroeconomic factors, such as unemployment rates, among others.

Loans Receivable

NJNG currently provides loans, with terms ranging from three to 10 years, to customers that elect to purchase and install certain energy-efficient equipment in accordance with its BPU-approved SAVEGREEN program. The loans are recognized at fair value on the Consolidated Balance Sheets. The Company has $18.1M and $15.1M recorded in other current assets and $53.6M and $39.0M in other noncurrent assets as of September 30, 2024 and 2023, respectively, on the Consolidated Balance Sheets, related to the loans. The Company regularly evaluates the credit quality and collection profile of its customers. If NJNG determines a loan is impaired, the basis of the loan would be subject to regulatory review for recovery. As of September 30, 2024 and 2023, the Company has not recorded any impairments for SAVEGREEN loans.

Regulatory Assets & Liabilities

Under cost-based regulation, regulated utility enterprises generally are permitted to recover their operating expenses and earn a reasonable rate of return on their utility investment.

NJNG is subject to accounting requirements resulting from the effects of rate regulation by the BPU. Accordingly, NJNG capitalizes or defers certain costs that are expected to be recovered from its customers as regulatory assets and recognizes certain obligations representing probable future expenditures as regulatory liabilities on the Consolidated Balance Sheets. See Note 4. Regulation for a more detailed description of NJNG’s regulatory assets and liabilities.

Adelphia capitalizes or defers certain costs that are expected to be recovered from its customers as regulatory assets and recognizes certain obligations representing probable future expenditures as regulatory liabilities on the Consolidated Balance Sheets. See Note 4. Regulation for a more detailed description of Adelphia’s regulatory assets and liabilities.

Natural Gas in Storage

Natural gas in storage is reflected at average cost on the Consolidated Balance Sheets and represents natural gas and LNG that will be utilized in the ordinary course of business. The following table summarizes natural gas in storage, at average cost by company, as of September 30:

	2024				2023
($ in thousands)	Natural Gas in Storage			Bcf	Natural Gas in Storage			Bcf
NJNG		$	177,655	30.8		$	175,025	29.1
ES		21,378		13.1		24,476		14.6
S&T		92		—		—		—
Total		$	199,125	43.9		$	199,501	43.7

Derivative Instruments

The Company accounts for its financial instruments, such as futures, options and interest rate contracts, as well as its physical commodity contracts related to the purchase and sale of natural gas at ES, as derivatives, and therefore recognizes them at fair value on the Consolidated Balance Sheets. The Company’s unregulated subsidiaries record changes in the fair value of their financial commodity derivatives in natural gas purchases and changes in the fair value of their physical forward contracts in natural gas purchases or operating revenues, as appropriate, on the Consolidated Statements of Operations. Ineffective portions of the cash flow hedges are recognized immediately in earnings. Cash flows from derivative financial instruments are included in cash flows from operating activities on the Consolidated Statements of Cash Flows.

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New Jersey Resources Corporation

Part II

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

ASC 815, Derivatives and Hedging, also provides for a NPNS scope exception for qualifying physical commodity contracts for which physical delivery is probable and the quantities delivered are expected to be used or sold over a reasonable period of time in the normal course of business. The Company prospectively applies this normal scope exception on a case-by-case basis to physical commodity contracts at NJNG and PPAs at CEV. When applied, it does not account for these contracts until the contract settles and the related underlying natural gas or power is delivered. Gains and/or losses on NJNG’s derivatives used to economically hedge its regulated natural gas supply obligations, as well as its exposure to interest rate variability, are recoverable through its BGSS, a component of its tariff. Accordingly, the offset to the change in fair value of these derivatives is recorded as a regulatory asset or liability on the Consolidated Balance Sheets. See Note 5. Derivative Instruments for additional details regarding natural gas trading and hedging activities.

Fair values of exchange-traded instruments, including futures and swaps, are based on unadjusted, quoted prices in active markets. The Company’s non-exchange-traded financial instruments, over-the-counter physical commodity contracts at ES and interest rate contracts are valued using observable, quoted prices for similar or identical assets when available. In establishing the fair value of contracts for which a quoted basis price is not available at the measurement date, management utilizes available market data and pricing models to estimate fair values. Fair values are subject to change in the near term and reflect management’s best estimate based on a variety of factors. Estimating fair values of instruments that do not have quoted market prices requires management’s judgment in determining amounts that could reasonably be expected to be received from, or paid to, a third party in settlement of the instruments. These amounts could be materially different from amounts that might be realized in an actual sale transaction.

During fiscal 2020, the Company entered into treasury lock transactions to fix the benchmark treasury rate associated with debt issuances for NJNG and NJR that occurred during the fiscal year. Settlement of the NJNG treasury locks resulted in a loss, which was recorded as a component of regulatory assets on the Consolidated Balance Sheets and will be amortized in earnings over the term of the debt as a component of interest expense on the Consolidated Statements of Operations. NJR designated its treasury lock contracts as cash flow hedges; therefore, changes in fair value of the effective portion of the hedges were recorded in OCI. Settlement of the treasury locks resulted in a loss, which was recorded within OCI and is amortized into earnings over the term of the associated debt as a component of interest expense on the Consolidated Statements of Operations.

Software Costs

The Company capitalizes certain costs, such as software design and configuration, coding, testing and installation, that are incurred to purchase or create and implement computer software for internal use. Capitalized costs include external costs of materials and services utilized in developing or obtaining internal-use software and payroll and payroll-related costs for employees who are directly associated with and devote time to the internal-use software project. Maintenance costs are expensed as incurred. Upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Amortization is recorded on the straight-line basis over the estimated useful lives.

The following table presents the software costs included in the Consolidated Financial Statements, as of September 30:

(Thousands)	2024		2023
Balance Sheets
Utility plant, at cost	$	133,158	$	51,282
Construction work in progress	$	26,659	$	55,012
Nonutility plant and equipment, at cost	$	344	$	344
Accumulated depreciation and amortization, utility plant	$	(13,632)	$	(7,480)
Accumulated depreciation and amortization, nonutility plant and equipment	$	(48)	$	(36)
Software costs	$	10,522	$	8,375
Statements of Operations
Operation and maintenance	$	13,087	$	14,299
Depreciation and amortization	$	6,164	$	4,130

Long-lived Assets

The Company reviews the recoverability of long-lived assets and finite-lived intangible assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable, such as significant adverse changes in regulation, business climate or market conditions, including prolonged periods of adverse commodity and capacity prices. If there are changes indicating that the carrying value of such assets may not be recoverable, an undiscounted cash flows test is performed. If the sum of the expected future undiscounted cash flows is less than the carrying amount of the asset, an impairment loss is recognized by reducing the recorded value of the asset to its fair value.

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New Jersey Resources Corporation

Part II

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

Factors that the Company analyzes in determining whether an impairment in its long-lived assets exists include: a significant decrease in the market price of a long-lived asset; a significant adverse change in the extent in which a long-lived asset is being used in its physical condition; legal proceedings or other contributing factors; significant business climate changes; accumulations of costs in significant excess of the amounts expected; a current-period operating or cash flow loss combined with a history of such events; and current expectations that more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its estimated useful life. During fiscal 2024 and 2023, there were no events or circumstances that indicated that the carrying value of long-lived assets or finite-lived intangibles was not recoverable.

Debt Issuance Costs

Debt issuance costs are capitalized and amortized as interest expense on a basis which approximates the effective interest method over the term of the related debt. Debt issuance costs are presented as a direct deduction from the carrying amount of the related debt. See Note 9. Debt for the total unamortized debt issuance costs that are recorded as a reduction to long-term debt on the Consolidated Balance Sheets.

Sale Leasebacks

NJNG utilizes sale leaseback arrangements as a financing mechanism to fund certain of its capital expenditures related to natural gas meters, whereby the physical asset is sold concurrent with an agreement to lease the asset back. These agreements include options to renew the lease or repurchase the asset at the end of the term. As NJNG retains control of the natural gas meters, these arrangements do not qualify as a sale. Proceeds from sale leaseback transactions are accounted for as financing arrangements and are included in long-term debt on the Consolidated Balance Sheets.

In addition, for certain of its commercial solar energy projects, the Company enters into lease agreements that provide for the sale of commercial solar energy assets to third parties and the concurrent leaseback of the assets. For sale leaseback transactions where the Company has concluded that the arrangement does not qualify as a sale as the Company retains control of the underlying assets, the Company uses the financing method to account for the transaction. Under the financing method, the Company recognizes the proceeds received from the buyer-lessor that constitute a payment to acquire the solar energy asset as a financing arrangement, which is recorded as a component of debt on the Consolidated Balance Sheets.

The Company continues to operate its solar assets and is responsible for related expenses and entitled to retain the revenue generated from RECs and energy sales. ITCs and other tax attributes associated with these solar projects transfer to the buyer; however, the payments are structured so that CEV is compensated for the transfer of the related tax attributes. Accordingly, CEV recognizes the equivalent value of the tax attributes in other income on the Consolidated Statements of Operations over the respective five-year ITC recapture periods, starting with the second year of the lease.

See Note 9. Debt for more details regarding sale leaseback transactions recorded as financing arrangements.

Environmental Contingencies 

Loss contingencies are recorded as liabilities when it is probable a liability has been incurred and the amount of the loss is reasonably estimable in accordance with accounting standards for contingencies. Estimating probable losses requires an analysis of uncertainties that often depend upon judgments about potential actions by third parties. Accruals for loss contingencies are recorded based on an analysis of potential results.

With respect to environmental liabilities and related costs, NJNG periodically, and at least annually, performs an environmental review of MGP sites, including a review of potential liability for investigation and remedial action. NJNG’s estimate of these liabilities is based upon known facts, existing technology and enacted laws and regulations in place when the review was completed. Where it is probable that costs will be incurred, and the information is sufficient to establish a range of possible liability, NJNG accrues the most likely amount in the range. If no point within the range is more likely than the other, it is NJNG’s policy to accrue the lower end of the range. The actual costs to be incurred by NJNG are dependent upon several factors, including final determination of remedial action, changing technologies and governmental regulations, the ultimate ability of other responsible parties to pay and any insurance recoveries. NJNG will continue to seek recovery of MGP-related costs through the RAC. If any future regulatory position indicates that the recovery of such costs is not probable, the related non-recoverable costs would be charged to income in the period of such determination. See Note 14. Commitments and Contingent Liabilities for more details.

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New Jersey Resources Corporation

Part II

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

Pension and Postemployment Plans

The Company has two noncontributory defined pension plans covering eligible employees, including officers. Benefits are based on each employee’s years of service and compensation. The Company’s funding policy is to contribute annually to these plans at least the minimum amount required under the Employee Retirement Income Security Act, as amended, and not more than can be deducted for federal income tax purposes. Plan assets consist of equity securities, fixed-income securities and short-term investments.

The Company also provides two primarily noncontributory medical and life insurance plans for eligible retirees and dependents. Medical benefits, which make up the largest component of the plans, are based upon an age and years-of-service vesting schedule and other plan provisions. Funding of these benefits is made primarily into Voluntary Employee Beneficiary Association trust funds. See Note 11. Employee Benefit Plans for a more detailed description of the Company’s pension and postemployment plans.

Asset Retirement Obligations

The Company recognizes AROs related to the costs associated with cutting and capping NJNG’s main and service natural gas distribution mains, which is required by New Jersey law when taking such natural gas distribution mains out of service. The Company also recognizes AROs associated with CEV’s solar assets when there are decommissioning provisions in lease agreements that require removal of the asset at the end of the lease term.

AROs are initially recognized when the legal obligation to retire an asset has been incurred and a reasonable estimate of fair value can be made. The discounted fair value is recognized as an ARO liability with a corresponding amount capitalized as part of the carrying cost of the underlying asset. The obligation is subsequently accreted to the future value of the expected retirement cost, and the corresponding asset retirement cost is depreciated over the life of the related asset. Accretion expense associated with CEV’s AROs are recognized as a component of operations and maintenance expense on the Consolidated Statements of Operations. Accretion amounts associated with NJNG’s AROs are recognized as part of its depreciation expense, and the corresponding regulatory asset and liability will be shown gross on the Consolidated Balance Sheets.

Estimating future removal costs requires management to make significant judgments because most of the removal obligations span long time frames and removal may be conditioned upon future events. Asset removal technologies are also constantly changing, which makes it difficult to estimate removal costs. Accordingly, inherent in the estimate of AROs are various assumptions including the ultimate settlement date, expected cash outflows, inflation rates, credit-adjusted risk-free rates and consideration of potential outcomes where settlement of the AROs can be conditioned upon events. In the latter case, the Company develops possible retirement scenarios and assigns probabilities based on management’s reasonable judgment and knowledge of industry practice. Accordingly, AROs are subject to change. The following is an analysis of the change in the Company’s ARO for the fiscal years ended September 30:

(Thousands)	Balance at October 1		Accretion	Additions	Change in assumptions	Retirements	Balance at period end
2024
NJNG	$	55,285	3,039	152	2,925	(1,727)	$	59,674
NJRCEV	$	6,708	236	79	—	—	$	7,023
2023
NJNG	$	49,874	2,693	155	4,089	(1,526)	$	55,285
NJRCEV	$	5,161	213	1,334	—	—	$	6,708

Accretion for the next five years, for the fiscal years ended September 30, is estimated to be as follows:

(Thousands)	2025		2026	2027	2028	2029	Total
Estimated Accretion	$	3,403	3,573	3,751	3,948	4,165	$	18,840

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

Accumulated Other Comprehensive Income

The following table presents the changes in the components of accumulated other comprehensive income, net of related tax effects:

(Thousands)	Cash Flow Hedges		Postemployment Benefit Obligation			Total
Balance as of September 30, 2022	$	(8,322)	$	3,496		$	(4,826)
Other comprehensive income, net of tax
Other comprehensive income, before reclassifications, net of tax of $0, $1,922 and $1,922, respectively	—		(6,350)			(6,350)
Amounts reclassified from accumulated other comprehensive income, net of tax of $(317), $(49) and $(366), respectively	1,053		164		(1)	1,217
Net current-period other comprehensive income, net of tax of $(317), $1,873 and $1,556, respectively	1,053		(6,186)			(5,133)
Balance as of September 30, 2023	$	(7,269)	$	(2,690)		$	(9,959)
Other comprehensive income, net of tax
Other comprehensive income, before reclassifications, net of tax of $0, $(1,002) and $(1,002), respectively	—		3,360			3,360
Amounts reclassified from accumulated other comprehensive income, net of tax of $(317), $296 and $(21), respectively	1,054		(976)		(1)	78
Net current-period other comprehensive income, net of tax of $(317), $(706) and $(1,023), respectively	1,054		2,384			3,438
Balance as of September 30, 2024	$	(6,215)	$	(306)		$	(6,521)

(1)Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Consolidated Statements of Operations. For more details, see Note 11. Employee Benefit Plans.

Reclassification

Certain prior period amounts have been reclassified to conform to the current period presentation. Intangible assets, net previously classified in its own category on the Consolidated Balance Sheets has been reclassified into other noncurrent assets. Other noncurrent assets and other noncurrent liabilities previously classified in their own categories on the Consolidated Statements of Cash Flow have been combined into one category.

Recently Adopted Updates to the Accounting Standards Codification

Business Combinations

In October 2021, the FASB issued ASU No. 2021-08, an amendment to ASC 805, Business Combinations, which requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The guidance was effective for the Company beginning October 1, 2023, and was applied on a prospective basis to new acquisitions following the date of adoption. As the Company has not executed a transaction that would qualify as a business combination, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption.

Derivatives and Hedging

In March 2022, the FASB issued ASU No. 2022-01, an amendment to ASC 815, Derivatives and Hedging, which addresses fair value hedge accounting of interest rate risk for portfolios of financial assets. This update further clarifies guidance previously released in ASU No. 2017-12, which established the ”last-of-layer” method, and this update renames that method as the “portfolio layer” method. The guidance was effective for the Company beginning October 1, 2023. As the Company does not currently apply hedge accounting to any of its risk management activities, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

Financial Instruments

In March 2022, the FASB issued ASU No. 2022-02, an amendment to ASC 326, Financial Instruments-Credit Losses, which eliminates the accounting guidance for creditors in troubled debt restructuring. It also aligns conflicting disclosure requirement guidance in ASC 326 by requiring disclosure of current-period gross write-offs by year of origination. The amendment also adds new disclosures for creditors with loan refinancing and restructuring for borrowers experiencing financial difficulty. The guidance was effective for the Company beginning October 1, 2023. Since the Company has not experienced a troubled debt restructuring, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption.

Other Recent Updates to the Accounting Standards Codification

Fair Value Measurement

In June 2022, the FASB issued ASU No. 2022-03, an amendment to ASC 820, Fair Value Measurement. The amendment clarifies the fair value principles when measuring the fair value of an equity security subject to a contractual sale restriction. The guidance became effective for the Company on October 1, 2024, and the Company elected to apply it on a prospective basis. At this time, the Company does not have equity securities subject to contractual sale restrictions, and therefore this amendment would only impact the Company if, in the future, it entered into such transactions.

Leases

In March 2023, the FASB issued ASU No. 2023-01, an amendment to ASC 842, Leases, which applies to arrangements between related parties under common control. This update requires that all entities with common control arrangements classify and account for these leases on the same basis as an arrangement with an unrelated party. If the lessee in these types of arrangements continues to control the use of the underlying asset through a lease, the leasehold improvements are to be amortized over the improvements’ useful life to the common control group, regardless of the lease term. The guidance became effective for the Company on October 1, 2024, and the Company elected to apply it on a prospective basis. At this time, the Company does not have leases that are impacted by this amendment, and therefore it would only impact the Company if, in the future, it entered into applicable transactions.

Business Combinations

In August 2023, the FASB issued ASU No. 2023-05, an amendment to ASC 805, Business Combinations, which addresses how a joint venture should recognize contributions received upon its formation. Joint ventures must account for initial assets and liabilities received at fair value on the date the joint venture is formed. The guidance is effective for the Company for joint ventures formed beginning January 1, 2025, and the Company can elect to apply it either prospectively or retrospectively back to a joint venture’s formation date provided adequate information is available. Early adoption is permitted. This amendment would only impact the Company upon adoption if, in the future, it entered into an applicable transaction.

Segment Reporting

In November 2023, the FASB issued ASU No. 2023-07, an amendment to ASC 280, Segment Reporting, which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The update requires entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker and included within segment profit and loss, and it enhances interim disclosure requirements to conform with annual requirements. This update became effective for the Company on October 1, 2024, for the first annual period and will become effective on October 1, 2025, for the interim periods. It will be applied retrospectively to all periods presented and the Company is currently evaluating the amendment to understand the impacts on its future disclosures.

Income Taxes

In December 2023, the FASB issued ASU No. 2023-09, an amendment to ASC 740, Income Taxes, which requires disaggregated information about a reporting entity’s effective tax rate reconciliation and income taxes paid. It will provide investors more detailed income tax disclosures that would be useful in making capital allocation decisions. The guidance is effective for the Company on October 1, 2025, and can be applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the amendment to understand the impacts on its financial position, results of operations, cash flows and disclosures upon adoption.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU No. 2024-03, an amendment to ASC 220, Income Statement Reporting, which requires more detailed information about specified categories of expenses included in certain captions presented on the face of the income statement. This update becomes effective for the Company on October 1, 2027, for the first annual period and on October 1, 2028, for the interim periods. The Company can elect to apply it either prospectively or retrospectively to all periods presented, with early adoption permitted. The Company is currently evaluating the amendment to understand the impacts on its disclosures upon adoption.

3. REVENUE

Revenue is recognized when a performance obligation is satisfied by transferring control of a product or service to a customer. Revenue is measured based on consideration specified in a contract with a customer using the output method of progress. The Company elected to apply the invoice practical expedient for recognizing revenue, whereby the amounts invoiced to customers represent the value to the customer and the Company’s performance completion as of the invoice date. Therefore the Company does not disclose related unsatisfied performance obligations. The Company also elected the practical expedient to exclude from the transaction price all sales taxes that are assessed by a governmental authority and therefore presents sales tax net in operating revenues on the Consolidated Statements of Operations.

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 Obligation	Description
NJNG	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 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.
CEV	Commercial solar electricity	CEV 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.
CEV	Residential solar electricity	CEV 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.
CEV	Renewable energy certificates	Certain CEV projects generate TRECs and SREC IIs under the established ADI Program. A TREC or SREC II is created for every MWh of electricity produced by a solar generator. The performance obligation of CEV is to generate electricity. TRECs and SREC IIs under the ADI Program are purchased monthly by a REC Administrator. Revenue is recognized upon generation.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

Revenue Recognized Over Time (continued):
Segment/ Operations	Performance Obligation	Description
ES	Natural gas services	The performance obligation of ES is to provide the customer transportation, storage and asset management services on an as-needed basis. ES 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. ES 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.
S&T	Natural gas services	The performance obligation of S&T is to provide the customer with storage and transportation services. S&T 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.
HSO	Service contracts	Home Services enters into service contracts with homeowners to provide maintenance and replacement 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:
ES	Natural gas services	For a permanent release of pipeline capacity, the performance obligation of ES 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.
S&T	Natural gas services	The performance obligation of S&T is to provide the customer with storage and transportation services. S&T 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.
HSO	Installations	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.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during fiscal 2024, 2023 and 2022 are as follows:

(Thousands)	NJNG		CEV		ES	S&T	HSO	Total
2024
Natural gas utility sales (1)	$	861,882	—		—	—	—	$	861,882
Natural gas services	—		—		164,165	96,209	—	260,374
Service contracts	—		—		—	—	36,231	36,231
Installations and maintenance	—		—		—	—	26,404	26,404
Renewable energy certificates	—		15,111		—	—	—	15,111
Electricity sales	—		32,913		—	—	—	32,913
Eliminations (2)	(1,350)		—		—	(1,358)	(258)	(2,966)
Revenues from contracts with customers	860,532		48,024		164,165	94,851	62,377	1,229,949
Alternative revenue programs (3)	1,087		—		—	—	—	1,087
Derivative instruments	156,863		82,539	(4)	321,226	—	—	560,628
Eliminations (2)	—		—		4,875	—	—	4,875
Revenues out of scope	157,950		82,539		326,101	—	—	566,590
Total operating revenues	$	1,018,482	130,563		490,266	94,851	62,377	$	1,796,539
2023
Natural gas utility sales (1)	$	845,392	—		—	—	—	$	845,392
Natural gas services	—		—		76,975	92,859	—	169,834
Service contracts	—		—		—	—	35,210	35,210
Installations and maintenance	—		—		—	—	22,428	22,428
Renewable energy certificates	—		12,636		—	—	—	12,636
Electricity sales	—		31,733		—	—	—	31,733
Eliminations (2)	(1,349)		—		—	(4,159)	(205)	(5,713)
Revenues from contracts with customers	844,043		44,369		76,975	88,700	57,433	1,111,520
Alternative revenue programs (3)	27,257		—		—	—	—	27,257
Derivative instruments	139,984		79,762	(4)	614,641	—	—	834,387
Eliminations (2)	—		—		(10,170)	—	—	(10,170)
Revenues out of scope	167,241		79,762		604,471	—	—	851,474
Total operating revenues	$	1,011,284	124,131		681,446	88,700	57,433	$	1,962,994
2022
Natural gas utility sales	$	951,626	—		—	—	—	951,626
Natural gas services	—		—		83,801	67,735	—	151,536
Service contracts	—		—		—	—	33,932	33,932
Installations and maintenance	—		—		—	—	22,250	22,250
Renewable energy certificates	—		5,487		—	—	—	5,487
Electricity sales	—		38,317		—	—	—	38,317
Eliminations (2)	(1,350)		—		—	(2,449)	(364)	(4,163)
Revenues from contracts with customers	950,276		43,804		83,801	65,286	55,818	1,198,985
Alternative revenue programs (3)	11,259		—		—	—	—	11,259
Derivative instruments	165,882		84,476	(4)	1,445,471	—	—	1,695,829
Eliminations (2)	—		—		(94)	—	—	(94)
Revenues out of scope	177,141		84,476		1,445,377	—	—	1,706,994
Total operating revenues	$	1,127,417	128,280		1,529,178	65,286	55,818	2,905,979

(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.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

Disaggregated revenues from contracts with customers by customer type and by reporting segment and other business operations during the fiscal years ended September 30, are as follows:

(Thousands)	NJNG		CEV	ES	S&T	HSO	Total
2024
Residential	$	641,606	13,960	—	—	62,219	$	717,785
Commercial and industrial	123,727		34,064	164,165	94,851	158	416,965
Firm transportation	86,600		—	—	—	—	86,600
Interruptible, off-tariff and other	8,599		—	—	—	—	8,599
Revenues out of scope	157,950		82,539	326,101	—	—	566,590
Total operating revenues	$	1,018,482	130,563	490,266	94,851	62,377	$	1,796,539
2023
Residential	$	621,663	13,668	—	—	57,091	$	692,422
Commercial and industrial	136,011		30,701	76,975	88,700	342	332,729
Firm transportation	77,722		—	—	—	—	77,722
Interruptible, off-tariff and other	8,647		—	—	—	—	8,647
Revenues out of scope	167,241		79,762	604,471	—	—	851,474
Total operating revenues	$	1,011,284	124,131	681,446	88,700	57,433	$	1,962,994
2022
Residential	$	586,678	12,579	—	—	55,629	$	654,886
Commercial and industrial	265,970		31,225	83,801	65,286	189	446,471
Firm transportation	92,531		—	—	—	—	92,531
Interruptible, off-tariff and other	5,097		—	—	—	—	5,097
Revenues out of scope	177,141		84,476	1,445,377	—	—	1,706,994
Total operating revenues	$	1,127,417	128,280	1,529,178	65,286	55,818	$	2,905,979

Customer Accounts Receivable/Credit Balances and Deposits

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 Consolidated Balance Sheets are as follows:

	Customer Accounts Receivable				Customers’Credit
(Thousands)	Billed		Unbilled		Balances and Deposits
Balance as of September 30, 2022	$	222,297	$	13,769	$	33,246
(Decrease) increase	(124,757)		5,331		11,664
Balance as of September 30, 2023	97,540		19,100		44,910
Increase (decrease)	7,991		994		(6,315)
Balance as of September 30, 2024	$	105,531	$	20,094	$	38,595

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

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 Consolidated Balance Sheets as of September 30:

(Thousands)	NJNG		CEV	ES	S&T	HSO	Total
2024
Customer accounts receivable
Billed	$	51,613	8,441	34,002	8,598	2,877	$	105,531
Unbilled	11,839		8,255	—	—	—	20,094
Customers’ credit balances and deposits	(38,572)		—	—	(23)	—	(38,595)
Total	$	24,880	16,696	34,002	8,575	2,877	$	87,030
2023
Customer accounts receivable
Billed	$	55,234	9,962	23,716	6,577	2,051	$	97,540
Unbilled	10,784		8,316	—	—	—	19,100
Customers’ credit balances and deposits	(44,898)		—	—	(12)	—	(44,910)
Total	$	21,120	18,278	23,716	6,565	2,051	$	71,730

4. REGULATION

The EDECA is the legal framework for New Jersey’s public utility and wholesale energy landscape. NJNG is required, pursuant to a written order by the BPU under EDECA, to open its residential markets to competition from third-party natural gas suppliers. Customers can choose the supplier of their natural gas commodity in NJNG’s service territory.

As required by EDECA, NJNG’s rates are segregated into two primary components: the commodity portion, which represents the wholesale cost of natural gas, including the cost for interstate pipeline capacity to transport the natural gas to NJNG’s service territory; and the delivery portion, which represents the transportation of the commodity portion through NJNG’s natural gas distribution system to the end-use customer. NJNG does not earn Utility Gross Margin on the commodity portion of its natural gas sales. NJNG earns Utility Gross Margin through the delivery of natural gas to its customers, regardless of whether it or a third-party supplier provides the wholesale natural gas commodity.

Under EDECA, the BPU is required to audit the state’s energy utilities every two years. The primary purpose of the audit is to ensure that utilities and their affiliates offering unregulated retail services do not have an unfair competitive advantage over nonaffiliated providers of similar retail services. A combined competitive services and management audit of NJNG commenced in November 2022. The audit is still in progress.

NJNG is subject to cost-based regulation; therefore, it is permitted to recover authorized operating expenses and earn a reasonable return on its utility capital investments based on the BPU’s approval. The impact of the ratemaking process and decisions authorized by the BPU allows NJNG to capitalize or defer certain costs that are expected to be recovered from its customers as regulatory assets, and to recognize certain obligations representing amounts that are probable future expenditures as regulatory liabilities in accordance with accounting guidance applicable to regulated operations.

NJNG’s recovery of costs is facilitated through its base rates, BGSS and other regulatory tariff riders. NJNG is required to make filings to the BPU for review of its BGSS, CIP and other programs and related rates. Annual rate changes are typically requested to be effective at the beginning of the following fiscal year. The current base rates include a weighted average cost of capital of 6.84% and a return on common equity of 9.6%. All rate and program changes are subject to proper notification and BPU review and approval. In addition, NJNG is permitted to implement certain BGSS rate changes on a provisional basis with proper notification to the BPU.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

Regulatory assets and liabilities included on the Consolidated Balance Sheets for NJNG are comprised of the following, as of September 30:

(Thousands)	2024		2023
Regulatory assets-current
New Jersey Clean Energy Program	$	18,491	$	15,804
Conservation Incentive Program	51,442		50,356
Derivatives at fair value, net	1,363		6,017
Other current regulatory assets	1,774		1,410
Total current regulatory assets	$	73,070	$	73,587
Regulatory assets-noncurrent
Environmental remediation costs:
Expended, net of recoveries	$	77,475	$	66,298
Liability for future expenditures	161,650		169,390
Deferred income taxes	42,595		41,667
SAVEGREEN	107,796		83,589
Postemployment and other benefit costs	23,772		55,274
Cost of removal	130,885		112,362
Other noncurrent regulatory assets	59,924		51,019
Total noncurrent regulatory assets	$	604,097	$	579,599
Regulatory liability-current
Overrecovered natural gas costs	$	32,457	$	30,637
Total current regulatory liabilities	$	32,457	$	30,637
Regulatory liabilities-noncurrent
Tax Act impact (1)	$	175,328	$	180,347
Derivatives at fair value, net	404		—
Other noncurrent regulatory liabilities	115		111
Total noncurrent regulatory liabilities	$	175,847	$	180,458

(1)Reflects the re-measurement and subsequent amortization of NJNG’s net deferred tax liabilities as a result of the change in federal tax rates enacted in the Tax Act. The Tax Act is an Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018, previously known as The Tax Cuts and Jobs Act of 2017.

Other noncurrent regulatory assets include deferred pandemic costs of approximately $3.9M as of both September 30, 2024 and 2023, primarily related to a portion of bad debt associated with customer accounts receivable resulting from the impacts of the novel coronavirus disease pandemic. These costs are eligible for future regulatory recovery and are included in the base rate case filed on January 31, 2024.

Regulatory assets and liabilities included on the Consolidated Balance Sheets for Adelphia are comprised of the following, as of September 30:

(Thousands)	2024		2023
Total noncurrent regulatory assets	$	5,095	$	5,231
Total current regulatory liabilities	$	524	$	1,650

The assets are comprised primarily of the tax benefit associated with the equity component of AFUDC and the liability consists primarily of scheduling penalties. Recovery of regulatory assets is subject to FERC approval.

New Jersey Clean Energy Program

The NJCEP is a statewide program that encourages energy efficiency and renewable energy. Funding amounts are determined by the BPU’s Office of Clean Energy and all New Jersey utilities are required to share in the annual funding obligation. The current NJCEP program is for the State of New Jersey’s fiscal year ending June 2025. NJNG recovers the costs associated with its portion of the NJCEP obligation through its NJCEP rider, with interest.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

Conservation Incentive Program

The CIP permits NJNG to recover Utility Gross Margin variations related to customer usage resulting from customer conservation efforts and mitigates the impact of weather on its margin. Such Utility Gross Margin variations are recovered in the year following the end of the CIP usage year, without interest, and are subject to additional conditions, including an earnings test, a revenue test and an evaluation of BGSS-related savings. This program has no expiration date.

Derivatives

Derivatives are utilized by NJNG to manage the price risk associated with its natural gas purchasing activities and to participate in certain BGSS incentive programs. The gains and losses associated with NJNG’s derivatives are recoverable through its BGSS, as noted above, without interest. See Note 5. Derivative Instruments.

Environmental Remediation Costs

NJNG is responsible for the cleanup of certain former gas manufacturing facilities. Actual expenditures are recovered from customers, with interest, over seven-year rolling periods, through a RAC rate rider. Recovery for NJNG’s estimated future liability will be requested and/or recovered when actual expenditures are incurred. See Note 14. Commitments and Contingent Liabilities.

Deferred Income Taxes

Upon adoption of a 1993 provision of ASC 740, Income Taxes, NJNG recognized a transition adjustment and corresponding regulatory asset representing the difference between NJNG’s existing deferred tax amounts compared with the deferred tax amounts calculated in accordance with the change in method prescribed by ASC 740. NJNG recovers the regulatory asset associated with these tax impacts through future base rates, without interest.

SAVEGREEN

NJNG administers certain programs that supplement the state’s NJCEP and that allow NJNG to promote clean energy to its residential and commercial customers, as described further below. NJNG will recover related expenditures and a weighted average cost of capital on the unamortized balance through a tariff rider, with interest, as approved by the BPU, over a three- to 10-year period depending upon the specific program incentive.

Postemployment and Other Benefit Costs

Postemployment and Other Benefit Costs represents NJNG’s underfunded postemployment benefit obligations. See Note 11. Employee Benefit Plans.

Cost of Removal

NJNG accrues and collects for cost of removal in base rates on its utility property, without interest. These costs are recorded in accumulated depreciation for regulatory reporting purposes, and actual costs of removal, without interest, will be recovered in subsequent rates, pursuant to the BPU order. Consistent with GAAP, amounts recorded within accumulated depreciation for regulatory accounting purposes are reclassified out of accumulated depreciation to either a regulatory asset or a regulatory liability depending on whether actual cost of removal is still subject to collection or amounts overcollected will be refunded back to customers.

Other Regulatory Assets

Other regulatory assets consist primarily of deferred costs associated with certain components of NJNG’s SBC, as discussed further in the regulatory proceedings section. NJNG’s related costs to maintain the operational integrity of its distribution and transmission main are recoverable, without interest, subject to BPU review and approval.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

Overrecovered Natural Gas Costs

NJNG recovers its cost of natural gas through the BGSS rate component of its customers’ bills. NJNG’s cost of natural gas includes the purchased cost of the natural gas commodity, fees paid to pipelines and storage facilities, adjustments as a result of BGSS incentive programs and hedging transactions. Overrecovered natural gas costs represent a regulatory liability that generally occurs when NJNG’s BGSS rates are higher than actual costs and result in returns to customers, including interest when applicable, in accordance with NJNG’s approved BGSS tariff. Conversely, underrecovered natural gas costs generally occur during periods when NJNG’s BGSS rates are lower than actual costs, in which case NJNG records a regulatory asset and requests amounts to be recovered from customers in the future.

The following is a description of certain regulatory proceedings during fiscal 2023 and 2024:

On January 31, 2024, NJNG filed a base rate case with the BPU requesting a natural gas revenue increase of approximately $222.6M including a recovery of infrastructure investments, a change in the Company’s overall rate of return on rate base to 7.57% and a change in the return on common equity to 10.42%. On May 15, 2024, the filing was updated to reflect actual results through March 31, 2024, which reduced the requested increase to approximately $219.6M. On August 7, 2024, the filing was updated to reflect actual results through June 30, 2024, which modified the requested increase to approximately $219.9M. On November 21, 2024, the BPU issued an order adopting a stipulation of settlement approving a $157.0M increase to base rates, effective November 21, 2024. The increase includes an overall rate of return on rate base of 7.08%, return on common equity of 9.60%, a common equity ratio of 54.0% and a depreciation rate of 3.21%.

BGSS and CIP

BGSS rates are normally revised on an annual basis. In addition, to manage the fluctuations in wholesale natural gas costs, NJNG has the ability to make two interim filings during each fiscal year to increase residential and small commercial customer BGSS rates on a self-implementing and provisional basis. NJNG is also permitted to refund or credit back a portion of the commodity costs to customers at any time given five days’ notice when the natural gas commodity costs decrease in comparison to amounts projected or to amounts previously collected from customers. Concurrent with the annual BGSS filing, NJNG files for an annual review of its CIP. NJNG’s annual BGSS and CIP filings are summarized as follows:

•In February 2023, NJNG advised the BPU of a bill credit and a reduction to the BGSS rate for residential and small commercial customers, which reduced recoveries by approximately $29.9M, effective March 1, 2023, and was approved on a final basis by the BPU on April 12, 2023. Bill credits provided to customers from March 2023 through May 2023 totaled approximately $32.4M.

•2023 BGSS/CIP filing — On April 30, 2024, the BPU approved on a final basis NJNG’s annual filing, which included a decrease of approximately $38.6M to the annual revenues credited to BGSS, an annual decrease of approximately $7.4M related to its balancing charge and an increase of approximately $27.0M to CIP rates for residential and small business customers, effective October 1, 2023.

•2024 BGSS/CIP filing — On May 31, 2024, NJNG filed its annual petition to modify its BGSS rates for residential and small business customers, the balancing charge and CIP rates. On September 25, 2024, the BPU approved, on a provisional basis, a decrease of approximately $31.0M to the annual revenues credited to BGSS, an annual increase of approximately $40.3M related to its balancing charge and a decrease of approximately $0.8M to CIP rates, effective October 1, 2024.

BGSS Incentive Programs

NJNG is eligible to receive financial incentives for reducing BGSS costs through a series of Utility Gross Margin-sharing programs that include off-system sales, capacity release and storage incentive programs. The Company is permitted to annually propose a process to evaluate and discuss alternative incentive programs, should performance of the existing incentives or market conditions warrant re-evaluation.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

Energy Efficiency Programs

SAVEGREEN conducts home energy audits and provides various grants, incentives and financing alternatives, which are designed to encourage the installation of high efficiency heating and cooling equipment and other upgrades to promote energy efficiency to its residential and commercial customers while stimulating state and local economies through the creation of jobs. Depending on the specific initiative or approval, NJNG recovers costs associated with the programs over a three- to 10-year period through a tariff rider mechanism. In March 2021, the BPU approved a three-year SAVEGREEN program that included approximately $126.1M of direct investment, approximately $109.4M in financing options and approximately $23.4M in O&M.

SAVEGREEN investments and costs are filed with the BPU on an annual basis. NJNG’s annual EE filings are summarized as follows:

•2023 EE filing — In June 2023, NJNG submitted its annual EE filing with the BPU for the recovery of SAVEGREEN costs, proposing an increase in annual recoveries of approximately $10.7M. In September 2023, the BPU approved an increase to the EE rate increasing annual recoveries by approximately $9.0M based on updated information since the initial filing, effective October 1, 2023.

•On November 9, 2023, NJNG filed a letter petition seeking BPU approval to extend NJNG’s current SAVEGREEN program through December 31, 2024, with an additional $76.9M in order to meet customer demand for this program, which was approved by the BPU on April 30, 2024.

•On December 1, 2023, NJNG filed a petition seeking BPU approval of its 2024 SAVEGREEN program, which would support new energy efficiency, demand response and building decarbonization start-up programs from January 1, 2025 through June 30, 2027. The 2024 SAVEGREEN program includes approximately $245.1M of direct investment, approximately $217.2M in financing options and approximately $20.1M in O&M. On October 30, 2024, the BPU approved a settlement consisting of $205.0M of direct investment, $160.5M in financing options and $20.1M in O&M, which totals $385.6M.

•2024 EE filing — On May 31, 2024, NJNG submitted its annual EE filing with the BPU for the recovery of SAVEGREEN costs, proposing an increase in annual recoveries of approximately $5.6M, to be effective January 1, 2025, if approved.

Societal Benefits Charge

The SBC is comprised of three primary riders that allow NJNG to recover costs associated with USF, which is a permanent statewide program for all natural gas and electric utilities for the benefit of income-eligible customers, MGP remediation and the NJCEP. NJNG has submitted the following filings to the BPU, which include a report of program expenditures incurred each program year:

•2023 USF filing — In June 2023, NJNG submitted its annual USF filing to the BPU requesting an increase to the statewide USF rate, which will result in an approximately $0.7M increase to annual recoveries. The BPU approved this matter in September 2023, effective October 1, 2023.

•2023 SBC filing — In September 2023, NJNG submitted its annual SBC filing to the BPU requesting approval of RAC expenditures through June 2023, which included an increase to the RAC annual recoveries of approximately $2.4M and an increase to the NJCEP annual recoveries of approximately $5.5M, effective April 1, 2024. On March 20, 2024, the BPU approved NJNG's annual SBC filing.

•2024 USF filing — On June 28, 2024, NJNG submitted its annual USF filing to the BPU requesting an increase to the statewide USF rate, which resulted in an approximately $6.8M increase to annual recoveries. On September 25, 2024, the BPU approved this filing, effective October 1, 2024.

•2024 SBC filing — On September 30, 2024, NJNG submitted its annual SBC filing to the BPU requesting approval of RAC expenditures through June 2024, which included an increase to the RAC annual recoveries of approximately $2.4M and an increase to the NJCEP annual recoveries of approximately $1.6M, which would be effective April 1, 2025.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

Infrastructure Programs

NJNG has significant annual capital expenditures associated with the management of its natural gas distribution and transmission system, including new utility plant for customer growth and its associated PIM and infrastructure programs. NJNG continues to implement BPU-approved infrastructure projects that are designed to enhance the reliability of NJNG’s natural gas distribution system.

Infrastructure Investment Program

In February 2019, NJNG filed a petition with the BPU seeking authority to implement a five-year IIP. The IIP consists of two components, transmission and distribution investments and information technology replacement and enhancements. The total investment for the IIP is approximately $507.0M. Upon approval from the BPU, investments are being recovered through annual filings to adjust base rates. In October 2020, the BPU approved the Company’s transmission and distribution component of the IIP for $150.0M over five years, effective November 1, 2020. The recovery of information technology replacement and enhancements that was included in the original IIP filing will be included as part of base rate filings as projects are placed in service.

•2023 IIP filing — In March 2023, NJNG submitted its annual IIP filing to the BPU requesting a rate increase for estimated capital expenditures of approximately $31.4M through June 30, 2023. This filing was updated in July 2023, with actual expenses of approximately $28.2M through June 30, 2023. The BPU approved this filing in September 2023, which resulted in an approximately $3.2M revenue increase, effective October 1, 2023.

•2024 IIP filing — On March 28, 2024, NJNG submitted its annual IIP filing to the BPU requesting a rate increase for capital expenditures of approximately $43.5M through June 30, 2024. The filing was updated July 26, 2024, to reflect actual expenses of approximately $41.2M through June 30, 2024. The BPU approved this filing on September 25, 2024, which resulted in an approximately $4.7M revenue increase, effective October 1, 2024.

5. DERIVATIVE INSTRUMENTS

The Company is subject primarily to commodity price risk due to fluctuations in the market price of natural gas, SRECs and electricity. To manage this risk, the Company enters into a variety of derivative instruments including, but not limited to, futures contracts, physical forward contracts, financial options and swaps to economically hedge the commodity price risk associated with its existing and anticipated commitments to purchase and sell natural gas, SRECs and electricity. In addition, the Company is exposed to foreign currency and interest rate risk and may utilize foreign currency derivatives to hedge Canadian dollar-denominated natural gas purchases and/or sales and interest rate derivatives to reduce exposure to fluctuations in interest rates. All of these types of contracts are accounted for as derivatives, unless the Company elects NPNS, which is done on a contract-by-contract election. Accordingly, all of the financial and certain of the Company’s physical derivative instruments are recorded at fair value on the Consolidated Balance Sheets. For a more detailed discussion of the Company’s fair value measurement policies and level disclosures associated with the Company’s derivative instruments, see Note 6. Fair Value.

Energy Services

ES chooses not to designate its financial commodity and physical forward commodity derivatives as accounting hedges or to elect NPNS. The changes in the fair value of these derivatives are recorded as a component of natural gas purchases or operating revenues, as appropriate for ES, on the Consolidated Statements of Operations as unrealized gains or losses. For ES at settlement, realized gains and losses on all financial derivative instruments are recognized as a component of natural gas purchases, and realized gains and losses on all physical derivatives follow the presentation of the related unrealized gains and losses as a component of either natural gas purchases or operating revenues.

As a result of ES entering into transactions to borrow natural gas, commonly referred to as “park and loans,” an embedded derivative is recognized relating to differences between the fair value of the amount borrowed and the fair value of the amount that will ultimately be repaid, based on changes in the forward price for natural gas prices at the borrowed location over the contract term. This embedded derivative is accounted for as a forward sale in the month in which the repayment of the borrowed natural gas is expected to occur and is considered a derivative transaction that is recorded at fair value on the Consolidated Balance Sheets, with changes in value recognized in current-period earnings.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

Expected production of SRECs is hedged through the use of forward and futures contracts. All contracts require the Company to physically deliver SRECs through the transfer of certificates as per contractual settlement schedules. ES recognizes changes in the fair value of these derivatives as a component of operating revenues. Upon settlement of the contract, the related revenue is recognized when the SREC is transferred to the counterparty.

Natural Gas Distribution

Changes in fair value of NJNG’s financial commodity derivatives are recorded as a component of regulatory assets or liabilities on the Consolidated Balance Sheets. The Company elects NPNS accounting treatment on all physical commodity contracts that NJNG entered into on or before December 31, 2015, and accounts for these contracts on an accrual basis. Accordingly, physical natural gas purchases are recognized in regulatory assets or liabilities on the Consolidated Balance Sheets when the contract settles and the natural gas is delivered. The average cost of natural gas is charged to expense in the current period earnings based on the BGSS factor times the therm sales. NJNG no longer elects NPNS accounting treatment on a portfolio basis. However, since NPNS is a contract-by-contract election, where it makes sense to do so, NJNG can and may elect to treat certain contracts as normal. Because NJNG recovers these amounts through future BGSS rates as increases or decreases to the cost of natural gas in NJNG’s tariff for natural gas service, the changes in fair value of these contracts are deferred as a component of regulatory assets or liabilities on the Consolidated Balance Sheets.

Clean Energy Ventures

The Company elects NPNS accounting treatment on PPA contracts executed by CEV that meet the definition of a derivative and accounts for the contract on an accrual basis. Accordingly, electricity sales are recognized in revenues throughout the term of the PPA as electricity is delivered. NPNS is a contract-by-contract election and where it makes sense to do so, the Company can and may elect to treat certain contracts as normal.

Fair Value of Derivatives

The following table presents the fair value of the Company’s derivative assets and liabilities recognized on the Consolidated Balance Sheets as of September 30:

		Derivatives at Fair Value
			2024					2023
(Thousands)	Balance Sheet Location		Assets		Liabilities			Assets		Liabilities
Derivatives not designated as hedging instruments:
NJNG:
Physical commodity contracts	Derivatives - current		$	21		$	579	$	43		$	488
Financial commodity contracts	Derivatives - current		—			2		6,110			20
ES:
Physical commodity contracts	Derivatives - current		1,660			4,346		6,209			12,757
	Derivatives - noncurrent		727			10,758		802			7,870
Financial commodity contracts	Derivatives - current		5,132			1,344		18,393			2,880
	Derivatives - noncurrent		79			732		762			97
Total fair value of derivatives			$	7,619		$	17,761	$	32,319		$	24,112

Offsetting of Derivatives

The Company transacts under master netting arrangements or equivalent agreements that allow it to offset derivative assets and liabilities with the same counterparty. However, the Company’s policy is to present its derivative assets and liabilities on a gross basis at the contract level unit of account on the Consolidated Balance Sheets.

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Part II

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

The following table summarizes the reported gross amounts, the amounts that the Company has the right to offset but elects not to, financial collateral and the net amounts the Company could present on the Consolidated Balance Sheets but elects not to.

	Asset Derivatives						Liability Derivatives
(Thousands)	Fair Value (1)		Amounts Offset (2)	Collateral Received/Pledged (3)	Net Value (4)		Fair Value (1)		Amounts Offset (2)	Collateral Received/Pledged (3)	Net Value (4)
As of September 30, 2024
ES Contracts
Physical commodity	$	2,387	(535)	—	$	1,852	$	15,104	(535)	(5,551)	$	9,018
Financial commodity	5,211		(2,076)	(1,170)	1,965		2,076		(2,076)	—	—
Total ES	$	7,598	(2,611)	(1,170)	$	3,817	$	17,180	(2,611)	(5,551)	$	9,018
NJNG Contracts
Physical commodity	$	21	(13)	—	$	8	$	579	(13)	—	$	566
Financial commodity	—		—	—	—		2		—	(2)	—
Total NJNG	$	21	(13)	—	$	8	$	581	(13)	(2)	$	566
As of September 30, 2023
ES Contracts
Physical commodity	$	7,011	(1,236)	—	$	5,775	$	20,627	(1,236)	(9,728)	$	9,663
Financial commodity	19,155		(2,977)	(16,178)	—		2,977		(2,977)	—	—
Total ES	$	26,166	(4,213)	(16,178)	$	5,775	$	23,604	(4,213)	(9,728)	$	9,663
NJNG Contracts
Physical commodity	$	43	(3)	—	$	40	$	488	(3)	—	$	485
Financial commodity	6,110		(20)	—	6,090		20		(20)	—	—
Total NJNG	$	6,153	(23)	—	$	6,130	$	508	(23)	—	$	485

(1)Derivative assets and liabilities are presented on a gross basis on the Consolidated Balance Sheets, as the Company does not elect balance sheet offsetting under ASC 210-20.

(2)Includes transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting.

(3)Financial collateral includes cash balances at FCMs, as well as cash received from or pledged to other counterparties.

(4)Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20.

ES utilizes financial derivatives to economically hedge the gross margin associated with the purchase of physical natural gas to be used for storage injection and its subsequent sale at a later date. The gains or (losses) on the financial transactions that are economic hedges of the cost of the purchased natural gas are recognized prior to the gains or (losses) on the physical transaction, which are recognized in earnings when the natural gas is delivered. Therefore, mismatches between the timing of the recognition of realized gains or (losses) on the financial derivative instruments and gains or (losses) associated with the actual sale of the natural gas that is being economically hedged, along with fair value changes in derivative instruments, create volatility in the results of ES, although the Company’s intended economic results relating to the entire transaction are unaffected.

The following table presents the effect of derivative instruments recognized on the Consolidated Statements of Operations as of September 30:

(Thousands)	Location of gain (loss) recognized in income on derivatives	Amount of gain (loss) recognized in income on derivatives
Derivatives not designated as hedging instruments:		2024		2023		2022
ES:
Physical commodity contracts	Operating revenues	$	12,070	$	33,610	$	(8,569)
Physical commodity contracts	Natural gas purchases	(2,391)		(6,846)		3,580
Financial commodity contracts	Natural gas purchases	11,722		80,406		14,403
Foreign currency contracts	Natural gas purchases	—		—		(14)
Total unrealized and realized gain		$	21,401	$	107,170	$	9,400

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

NJNG’s derivative contracts are part of the Company’s risk management activities that relate to its natural gas purchases and BGSS incentive programs. At settlement, the resulting gains and/or losses are payable to or recoverable from utility customers and are deferred in regulatory assets or liabilities resulting in no impact to earnings.

The following table reflects the gains and/or (losses) associated with NJNG’s derivative instruments as of September 30:

(Thousands)	2024		2023		2022
NJNG:
Physical commodity contracts	$	(5,215)	$	(34,241)	$	7,116
Financial commodity contracts	11,064		(50,130)		32,868
Total unrealized and realized gain (loss)	$	5,849	$	(84,371)	$	39,984

NJNG and ES had the following outstanding long (short) derivatives as of September 30:

	Natural Gas Distribution		Energy Services
Volumes (Bcf)	Futures	Physical Commodity	Futures	Physical Commodity
2024	31.9	10.9	(7.7)	2.8
2023	32.1	12.1	(6.9)	0.2

Not included in the above table are 1.2M and 1.3M SRECs that were open as of September 30, 2024 and 2023, respectively.

Broker Margin

Futures exchanges have contract-specific margin requirements that require the posting of cash or cash equivalents relating to traded contracts. Margin requirements consist of initial margin that is posted upon the initiation of a position, maintenance margin that is usually expressed as a percent of initial margin and variation margin that fluctuates based on the daily marked-to-market relative to maintenance margin requirements. The Company maintains separate broker margin accounts for NJNG and ES.

The balances as of September 30, by reporting segment, are as follows:

(Thousands)	Balance Sheet Location	2024		2023
NJNG	Restricted broker margin accounts - current assets	$	4,975	$	5,915
ES	Restricted broker margin accounts - current assets	$	8,268	$	14,881
	Restricted broker margin accounts - current liabilities	$	1,146	$	8,029

Wholesale Credit Risk

NJNG, ES, CEV and S&T are exposed to credit risk as a result of their sales/wholesale marketing activities. As a result of the inherent volatility in the prices of natural gas commodities, derivatives and SRECs, the market value of contractual positions with individual counterparties could exceed established credit limits or collateral provided by those counterparties. If a counterparty fails to perform the obligations under its contract, then the Company could sustain a loss.

The Company monitors and manages the credit risk of its wholesale operations through credit policies and procedures that management believes reduce overall credit risk. These policies include a review and evaluation of current and prospective counterparties’ financial statements and/or credit ratings, daily monitoring of counterparties’ credit limits and exposure, daily communication with traders regarding credit status and the use of credit mitigation measures, such as collateral requirements and netting agreements. Examples of collateral include letters of credit and cash received for either prepayment or margin deposit. Collateral may be requested due to the Company’s election not to extend credit or because exposure exceeds defined thresholds. Most of the Company’s wholesale marketing contracts contain standard netting provisions. These contracts include those governed by ISDA and the NAESB. The netting provisions refer to payment netting, whereby receivables and payables with the same counterparty are offset and the resulting net amount is paid to the party to which it is due.

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Part II

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

Internally-rated exposure applies to counterparties that are not rated by Fitch or Moody’s. In these cases, the counterparty’s or guarantor’s financial statements are reviewed, and similar methodologies and ratios used by Fitch and/or Moody’s are applied to arrive at a substitute rating. Gross credit exposure is defined as the unrealized fair value of physical and financial derivative commodity contracts, plus any outstanding wholesale receivable for the value of natural gas delivered and/or financial derivative commodity contract that has settled for which payment has not yet been received.

The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of September 30, 2024. The amounts presented below have not been reduced by any collateral received or netting and exclude accounts receivable for NJNG retail natural gas sales and services and CEV residential solar installations.

(Thousands)	Gross Credit Exposure
Investment grade		$	97,403
Noninvestment grade		7,343
Internally-rated investment grade		16,168
Internally-rated noninvestment grade		17,375
Total		$	138,289

Conversely, certain of NJNG’s and ES’s derivative instruments are linked to agreements containing provisions that would require cash collateral payments from the Company if certain events occur. These provisions vary based upon the terms in individual counterparty agreements and can result in cash payments if NJNG’s credit rating were to fall below its current level. Specifically, most, but not all, of these additional payments will be triggered if NJNG’s debt is downgraded by the major credit agencies, regardless of investment grade status. In addition, some of these agreements include threshold amounts that would result in additional collateral payments if the values of derivative liabilities were to exceed the maximum values provided for in relevant counterparty agreements. Other provisions include payment features that are not specifically linked to ratings, but are based on certain financial metrics.

Collateral amounts associated with any of these conditions are determined based on a sliding scale and are contingent upon the degree to which the Company’s credit rating and/or financial metrics deteriorate, and the extent to which liability amounts exceed applicable threshold limits. Derivative instruments with credit-risk-related contingent features that were in a liability position for which collateral is required were immaterial as of both September 30, 2024 and 2023. These amounts differ from the respective net derivative liabilities reflected on the Consolidated Balance Sheets because the agreements also include clauses, commonly known as “Rights of Offset,” that would permit the Company to offset its derivative assets against its derivative liabilities for determining additional collateral to be posted, as previously discussed.

6. FAIR VALUE

Fair Value of Assets and Liabilities

The fair value of cash and cash equivalents, accounts receivable, current loans receivable, accounts payable, commercial paper and borrowings under revolving credit facilities are estimated to equal their carrying amounts due to the short maturity of those instruments. Noncurrent loans receivable are recorded based on what the Company expects to receive, which approximates fair value, in other noncurrent assets on the Consolidated Balance Sheets. The Company regularly evaluates the credit quality and collection profile of its customers to approximate fair value.

As of September 30, the estimated fair value of long-term debt, including current maturities, excluding natural gas meter sale leasebacks, debt issuance costs and solar asset sale leasebacks, is as follows (1):

(Thousands)	2024		2023
NJNG
Carrying value (1)	$	1,647,845	$	1,467,845
Fair market value	$	1,439,849	$	1,097,088
NJR
Carrying value (1)	$	1,120,000	$	1,120,000
Fair market value	$	1,085,955	$	1,009,448

(1)See Note 9. Debt for a reconciliation to long-term and short-term debt.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

The Company enters into sale leaseback transactions for certain commercial solar assets and natural gas meters. These transactions are recorded within long-term debt on the Consolidated Balance Sheets. The carrying value of solar sale leasebacks was approximately $283.0M and $278.4M and the estimated fair value was approximately $290.4M and $268.1M as of September 30, 2024 and 2023, respectively. The carrying value of the natural gas meter sale leasebacks was approximately $31.6M and $31.4M and the estimated fair value of certain natural gas meter sale leasebacks amounted to approximately $26.7M and $20.9M as of September 30, 2024 and 2023, respectively.

The Company utilizes a discounted cash flow method to determine the fair value of its debt. Inputs include observable municipal and corporate yields, as appropriate, for the maturity of the specific debt instrument and the Company’s credit rating. As of September 30, 2024 and 2023, the Company discloses its debt within Level 2 of the fair value hierarchy.

Fair Value Hierarchy

The Company applies fair value measurement guidance to its financial assets and liabilities, as appropriate, which include financial derivatives and physical commodity contracts qualifying as derivatives, investments in equity securities and other financial assets and liabilities. In addition, authoritative accounting literature prescribes the use of a fair value hierarchy that prioritizes the inputs-to-valuation techniques used to measure fair value based on the source of the data used to develop the price inputs. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to inputs that are based on unobservable market data and includes the following:

Fair Value Hierarchy	Description of Fair Value Level	Fair Value Technique
Level 1	Unadjusted quoted prices for identical assets or liabilities in active markets	The Company’s Level 1 assets and liabilities include exchange-traded natural gas futures and options contracts, listed equities and money market funds. Exchange-traded futures and options contracts include all energy contracts traded on the NYMEX, CME and ICE that the Company refers to internally as basis swaps, fixed swaps, futures and financial options that are cleared through an FCM.
Level 2	Other significant observable inputs, such as interest rates or price data, including both commodity and basis pricing that is observed either directly or indirectly from publications or pricing services	The Company’s Level 2 assets and liabilities include over-the-counter physical forward commodity contracts and swap contracts, SREC forward sales or derivatives that are initially valued using observable quotes and are subsequently adjusted to include time value, credit risk or estimated transport pricing components for which no basis price is available. Level 2 financial derivatives consist of transactions with non-FCM counterparties (basis swaps, fixed swaps and/or options). Inputs are verifiable and do not require significant management judgment. For some physical commodity contracts, the Company utilizes transportation tariff rates that are publicly available and that it considers to be observable inputs that are equivalent to market data received from an independent source. There are no significant judgments or adjustments applied to the transportation tariff inputs and no market perspective is required. Even if the transportation tariff input were considered to be a “model,” it would still be considered to be a Level 2 input as the data is: •widely accepted and public; •non-proprietary and sourced from an independent third party; and •observable and published. These additional adjustments are generally not considered to be significant to the ultimate recognized values.
Level 3	Inputs derived from a significant amount of unobservable market data	These include the Company’s best estimate of fair value and are derived primarily through the use of internal valuation methodologies.

Financial derivative portfolios of NJNG and ES consist mainly of futures, options and swaps. The Company primarily uses the market approach, and its policy is to use actively quoted market prices when available. The principal market for its derivative transactions is the natural gas wholesale market; therefore, the primary sources for its price inputs are CME, NYMEX and ICE. ES uses Platts and Natural Gas Exchange for Canadian delivery points. However, ES also engages in transactions that result in transporting natural gas to delivery points for which there is no actively quoted market price. In most instances, the transportation cost to the final delivery location is not significant to the overall valuation. If required, ES’s policy is to use the best information available to determine fair value based on internal pricing models, which would include estimates extrapolated from broker quotes or other pricing services.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

The Company also has other financial assets that include listed equities, mutual funds and money market funds for which there are active exchange quotes available. When the Company determines fair values, measurements are adjusted, as needed, for credit risk associated with its counterparties, as well as its own credit risk. The Company determines these adjustments by using historical default probabilities that correspond to the applicable S&P issuer ratings, while also taking into consideration collateral and netting arrangements that serve to mitigate risk.

Assets and liabilities measured at fair value on a recurring basis are summarized as follows:

	Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs
(Thousands)	(Level 1)			(Level 2)			(Level 3)			Total
As of September 30, 2024
Assets
Physical commodity contracts		$	—		$	2,408		$	—	$	2,408
Financial commodity contracts		5,211			—			—		5,211
Money market funds		62			—			—		62
Other		2,671			—			—		2,671
Total assets at fair value		$	7,944		$	2,408		$	—	$	10,352
Liabilities
Physical commodity contracts		$	—		$	15,683		$	—	$	15,683
Financial commodity contracts		2,078			—			—		2,078
Total liabilities at fair value		$	2,078		$	15,683		$	—	$	17,761
As of September 30, 2023
Assets
Physical commodity contracts		$	—		$	7,054		$	—	$	7,054
Financial commodity contracts		25,265			—			—		25,265
Money market funds		145			—			—		145
Other		2,641			—			—		2,641
Total assets at fair value		$	28,051		$	7,054		$	—	$	35,105
Liabilities
Physical commodity contracts		$	—		$	21,115		$	—	$	21,115
Financial commodity contracts		2,997			—			—		2,997
Total liabilities at fair value		$	2,997		$	21,115		$	—	$	24,112

7. INVESTMENTS IN EQUITY INVESTEES

Steckman Ridge

The Company holds a 50% equity method investment in Steckman Ridge, a jointly owned and controlled natural gas storage facility located in Bedford County, Pennsylvania. The Company’s investment in Steckman Ridge was $101.7M and $104.1M as of September 30, 2024 and 2023, respectively, which includes loans with a total outstanding principal balance of $70.4M for both September 30, 2024 and 2023. On October 1, 2023, the Company entered into an Amended and Restated Loan Agreement with Steckman Ridge to extend the existing loan agreement and moved from London Interbank Offered Rate to Secured Overnight Financing Rate. These loans accrue interest at a variable rate that resets quarterly and are now due October 1, 2027.

NJNG and ES have entered into storage and park and loan agreements with Steckman Ridge. See Note 16. Related Party Transactions for more information on these intercompany transactions.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

8. EARNINGS PER SHARE

The following table presents the calculation of the Company’s basic and diluted earnings per share for the fiscal years ended September 30:

(Thousands, except per share amounts)	2024		2023		2022
Net income, as reported	$	289,775	$	264,724	$	274,922
Basic earnings per share
Weighted average shares of common stock outstanding-basic	98,634		97,028		96,100
Basic earnings per common share	$2.94		$2.73		$2.86
Diluted earnings per share
Weighted average shares of common stock outstanding-basic	98,634		97,028		96,100
Incremental shares (1)	655		599		388
Weighted average shares of common stock outstanding-diluted	99,289		97,627		96,488
Diluted earnings per common share	$2.92		$2.71		$2.85

(1)Incremental shares consist primarily of unvested stock awards and performance units, which are calculated using the treasury stock method.

9. DEBT

NJNG and NJR finance working capital requirements and capital expenditures through various short-term debt and long-term financing arrangements, including a commercial paper program and committed unsecured credit facilities.

Long-term Debt

The following table presents the long-term debt of the Company as of September 30:

(Thousands)			2024	2023
NJNG
First mortgage bonds:		Maturity date:
Series OO	3.00%	August 1, 2041	46,500	46,500
Series PP	3.15%	April 15, 2028	50,000	50,000
Series QQ	3.58%	March 13, 2024	—	70,000
Series RR	4.61%	March 13, 2044	55,000	55,000
Series SS	2.82%	April 15, 2025	50,000	50,000
Series TT	3.66%	April 15, 2045	100,000	100,000
Series UU	3.63%	June 21, 2046	125,000	125,000
Series VV	4.01%	May 11, 2048	125,000	125,000
Series WW	3.50%	April 1, 2042	10,300	10,300
Series XX	3.38%	April 1, 2038	10,500	10,500
Series YY	2.45%	April 1, 2059	15,000	15,000
Series ZZ	3.76%	July 17, 2049	100,000	100,000
Series AAA	3.86%	July 17, 2059	85,000	85,000
Series BBB	2.75%	August 1, 2039	9,545	9,545
Series CCC	3.00%	August 1, 2043	41,000	41,000
Series DDD	3.13%	June 30, 2050	50,000	50,000
Series EEE	3.13%	July 23, 2050	50,000	50,000
Series FFF	3.33%	July 23, 2060	25,000	25,000
Series GGG	2.87%	September 1, 2050	25,000	25,000
Series HHH	2.97%	September 1, 2060	50,000	50,000
Series III	2.97%	October 30, 2051	50,000	50,000
Series JJJ	3.07%	October 28, 2061	50,000	50,000
Series LLL	4.37%	May 27, 2037	50,000	50,000
Series MMM	4.71%	May 27, 2052	50,000	50,000
Series NNN	5.47%	October 24, 2052	125,000	125,000
Series OOO	5.56%	September 28, 2033	50,000	50,000
Series PPP	5.85%	October 30, 2053	50,000	—
Series QQQ	5.82%	June 26, 2054	125,000	—
Series RRR	5.49%	September 30, 2034	75,000	—
Meter financing obligation		Various dates	31,574	31,352
Less: Debt issuance costs			(10,899)	(9,770)
Less: Current maturities of long-term debt			(58,649)	(78,477)
Total NJNG long-term debt			1,609,871	1,410,950

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

NJR			2024		2023
First mortgage bonds:		Maturity date:
Unsecured senior notes	3.48%	November 7, 2024	100,000		100,000
Unsecured senior notes	3.54%	August 18, 2026	100,000		100,000
Unsecured senior notes	3.96%	June 8, 2028	100,000		100,000
Unsecured senior notes	3.29%	July 17, 2029	150,000		150,000
Unsecured senior notes	3.50%	July 23, 2030	130,000		130,000
Unsecured senior notes	3.60%	July 23, 2032	130,000		130,000
Unsecured senior notes	3.13%	September 1, 2031	120,000		120,000
Unsecured senior notes	3.25%	September 1, 2033	80,000		80,000
Unsecured senior notes	4.38%	June 23, 2027	110,000		110,000
Unsecured senior notes	3.64%	September 19, 2034	50,000		50,000
Unsecured senior notes	6.14%	December 15, 2032	50,000		50,000
Less: Debt issuance costs			(3,011)		(3,656)
Less: Current maturities of long-term debt			(100,000)		—
Total NJR long-term debt			1,016,989		1,116,344
CEV
Solar asset financing obligation		Various dates	282,962		278,401
Less: Current maturities of long-term debt			(30,358)		(37,678)
Total CEV long-term debt			252,604		240,723
Total long-term debt			$	2,879,464	$	2,768,017

Annual long-term debt redemption requirements, excluding meter financing obligations, debt issuance costs and solar asset financing obligations, as of September 30, are as follows:

(Thousands)	2025		2026		2027		2028		2029		Thereafter
NJR	$	100,000	$	100,000	$	110,000	$	100,000	$	150,000	$	560,000
NJNG	$	50,000	$	—	$	—	$	50,000	$	—	$	1,547,845

NJR

On November 7, 2024, NJR entered into a Note Purchase Agreement under which NJR issued $100M senior notes at a fixed interest rate of 5.55%, maturing in 2034.

NJNG

First Mortgage Bonds

NJNG and Trustee entered into the Mortgage Indenture, dated September 1, 2014, which secures all the outstanding FMBs issued by NJNG. The Mortgage Indenture provides a direct first mortgage lien upon substantially all the operating properties and franchises of NJNG (other than excepted property, such as cash on hand, choses-in-action, securities, rent, natural gas meters and certain materials, supplies, appliances and vehicles), subject only to certain permitted encumbrances. The Mortgage Indenture contains provisions subjecting after-acquired property (other than excepted property and subject to pre-existing liens, if any, at the time of acquisition) to the lien thereof.

NJNG’s Mortgage Indenture does not restrict NJNG’s ability to pay dividends. New Jersey Administrative Code 14:4-4.7 states that a public utility cannot issue dividends without regulatory approval if its equity-to-total-capitalization ratio falls below 30%. As of September 30, 2024, NJNG’s equity-to-total-capitalization ratio is 53.4% and NJNG has the capacity to issue up to $1.4B of FMB under the terms of the Mortgage Indenture.

In September 2023, NJNG entered into a Note Purchase Agreement for $100M aggregate principal amount of its senior notes consisting of $50M of 5.56% senior notes due September 28, 2033, which closed on September 28, 2023, and $50M of 5.85% senior notes due October 30, 2053, which closed on October 30, 2023.

On June 26, 2024, NJNG entered into a Note Purchase Agreement for $200M aggregate principal amount of its senior notes consisting of $125M of 5.82% senior notes due June 26, 2054, which closed on June 26, 2024, and $75M of 5.49% senior notes due September 30, 2034, which closed on September 30, 2024.

The senior notes are secured by an equal principal amount of NJNG’s FMBs issued under NJNG’s Mortgage Indenture.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

Sale Leasebacks

NJNG received approximately $8.8M and $8.4M during fiscal 2024 and 2023, respectively, in connection with the sale leaseback of its natural gas meters, with terms ranging from six to 10 years. NJNG records the sale leaseback as a financing obligation for accounting purposes that is paid over the term of the arrangement and has the option to purchase the meters back at fair value upon expiration of the lease.

Contractual commitments for meter sale leaseback arrangements, which represent the most likely outcome of cash payments, as of the fiscal years ended September 30, are as follows:

(Thousands)	2025		2026	2027	2028	2029	Thereafter	Subtotal
Future payments	$	9,665	7,906	5,579	6,211	3,171	1,852	$	34,384
Less: Interest component								(2,810)
Total								$	31,574

Clean Energy Ventures

CEV enters into transactions to sell the commercial solar assets concurrent with agreements to lease the assets back over a period of five to seven years. These transactions are treated as financing obligations for accounting purposes and are typically secured by the renewable energy facility asset and its future cash flows from RECs and energy sales. ITCs and other tax benefits associated with these solar projects are transferred to the buyer, if applicable; however, the lease payments are structured so that CEV is compensated for the transfer of the related tax incentives. CEV continues to operate the solar assets, including related expenses, and retain the revenue generated from RECs and energy sales, and has the option to repurchase the assets sold or renew the lease at the end of the lease term. CEV received proceeds of approximately $64.7M and $167.8M during fiscal 2024 and 2023, respectively, in connection with the sale leaseback of commercial solar assets. The proceeds received were recognized as a financing obligation on the Consolidated Balance Sheets.

Contractual commitments for the solar sale leaseback arrangements, which represent the most likely outcome of cash payments, as of the fiscal years ended September 30, are as follows:

(Thousands)	2025		2026	2027	2028	2029	Thereafter	Subtotal
Future payments	$	57,184	20,396	22,907	34,293	81,586	32,610	$	248,976
Less: Interest component								(43,234)
Total								$	205,742

Credit Facilities and Short-term Debt

The following table summarizes NJR’s credit facility and NJNG’s commercial paper program and credit facility as of September 30:

				At end of period
(Thousands)	As of date	Total borrowing capacity		Loans outstanding		Weighted average interest rate			Remaining borrowing capacity				Expiration dates
NJR bank revolving credit facility (1)
2024		$	575,000	$	236,700		6.23	%		$	325,951	(2)	August 2029
2023		$	650,000	$	217,300		6.53	%		$	426,967	(2)	September 2027
NJNG bank revolving credit facility (3)
2024		$	250,000	$	55,100		4.98	%		$	194,169	(4)	August 2029
2023		$	250,000	$	34,800		5.48	%		$	214,469	(4)	September 2027

(1)Committed credit facility, which requires commitment fees of 0.10% on the unused amount.

(2)Letters of credit outstanding total approximately $12.3M and $5.7M as of September 30, 2024 and 2023, respectively, which reduces the amount available by the same amount.

(3)Committed credit facility, which requires commitment fees of 0.075% on the unused amount.

(4)Letters of credit outstanding total approximately $0.7M at both September 30, 2024 and 2023, which reduces the amount available by the same amount.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

Amounts available under credit facilities are reduced by bank or commercial paper borrowings, as applicable, and any outstanding letters of credit. Neither NJNG nor the results of its operations are obligated or pledged to support the NJR Credit Facility.

NJR

On August 7, 2024, NJR entered into a second amendment to NJR’s Second Amended and Restated Credit Agreement, which reduced the NJR Credit Facility from $650M to $575M and extended the maturity date to August 7, 2029, pursuant to NJR’s option to extend the maturity date under the NJR Second Amended and Restated Credit Agreement, and permits NJR to request that the maturity date be extended up to two times for an additional period of one year each. The NJR Credit Facility includes an accordion feature, which allows NJR, in the absence of a default or event of default, to increase from time to time, with the existing or new lenders, the revolving credit commitments under the NJR Credit Facility in increments of at least $50M, with the total revolving credit commitments not exceeding $750M. The NJR Credit Facility also permits the borrowing of revolving loans and swingline loans, as well as a $75M sublimit for the issuance of letters of credit. Certain of NJR’s unregulated subsidiaries have guaranteed all of NJR’s obligations under the NJR Credit Facility. The credit facility is used primarily to finance its share repurchases, to satisfy ES’s short-term liquidity needs and to finance, on an initial basis, unregulated investments.

As of September 30, 2024, NJR had eleven letters of credit outstanding totaling $12.3M, which reduced the amount available under the NJR Credit Facility by the same amount. NJR does not anticipate that these letters of credit will be drawn upon by the counterparties, and they will be renewed as necessary.

Neither NJNG nor the results of its operations are obligated or pledged to support the NJR credit or debt shelf facilities.

NJNG

On August 7, 2024, NJNG entered into a second amendment to NJNG’s Second Amended and Restated Credit Agreement governing a $250M NJNG Credit Facility, which extended the maturity date of the facility to August 7, 2029, pursuant to NJNG’s option to extend the maturity date under the NJNG Second Amended and Restated Credit Agreement, and permits NJNG to request that the maturity date be extended up to two times for an additional period of one year each. The NJNG Credit Facility includes an accordion feature, which allows NJNG, in the absence of a default or event of default, to increase from time to time, with the existing or new lenders, the revolving credit commitments under the NJNG Credit Facility in increments of at least $50M with the total revolving credit commitments not exceeding $350M. The NJNG Credit Facility also permits the borrowing of revolving loans and swingline loans, as well as a $30M sublimit for the issuance of letters of credit.

As of September 30, 2024, NJNG has two letters of credit outstanding for $0.7M, which reduced the amount available under the NJNG Credit Facility by the same amount. NJNG does not anticipate that these letters of credit will be drawn upon by the counterparties.

10. STOCK-BASED COMPENSATION

NJR issues shares out of its 2017 Stock Award and Incentive Plan, in the form of performance share units, restricted stock units, deferred retention stock units and unrestricted common stock to non-employee directors. As of September 30, 2024, 2,620,389 shares remain available for future issuance.

The following table summarizes all stock-based compensation expense recognized during the following fiscal years:

(Thousands)	2024		2023		2022
Stock-based compensation expense:
Performance share awards	$	5,437	$	4,882	$	4,131
Restricted and non-restricted stock	3,958		3,647		3,189
Deferred retention stock	6,633		6,187		7,507
Compensation expense included in operation and maintenance expense	16,028		14,716		14,827
Income tax benefit (1)	(3,898)		(3,563)		(3,624)
Total, net of tax	$	12,130	$	11,153	$	11,203

(1)Excludes additional tax expense related to delivered shares of $1.2M, $0.6M and $0.1M as of September 30, 2024, 2023 and 2022, respectively.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

Performance Share Units

In fiscal 2024, the Company granted to certain officers 54,693 performance shares, which are market condition awards that vest on September 30, 2026, subject to the Company meeting certain conditions. In fiscal 2024, the Company also granted to certain officers 88,107 performance shares, of which 50,504 vest on September 30, 2026, and 37,603 vest annually over a three-year period beginning in September 2024, both of which are subject to the Company meeting certain performance conditions.

In fiscal 2023, the Company granted to certain officers 39,614 performance shares, which are market condition awards that vest on September 30, 2025, subject to the Company meeting certain conditions. In fiscal 2023, the Company also granted to certain officers 73,047 performance shares, of which 42,449 vest on September 30, 2025, and 30,598 vest annually over a three-year period beginning in September 2023, both of which are subject to the Company meeting certain performance conditions.

In fiscal 2022, the Company granted to certain officers 44,965 performance shares, which are market condition awards that vested on September 30, 2024, subject to the Company meeting certain conditions. In fiscal 2022, the Company also granted to certain officers 73,561 performance shares, of which 44,596 vested on September 30, 2024, and 28,965 vest annually over a three-year period beginning in September 2022, both of which were subject to the Company meeting certain performance conditions. The vesting of these awards are shown in the table below.

There is approximately $6.0M of deferred compensation related to unvested performance shares that is expected to be recognized over the weighted average period of 1.7 years.

The following table summarizes the performance share activity under the stock award and incentive plans for the past three fiscal years:

	Shares (1)	Weighted Average Grant Date Fair Value		Total Fair Value of Vested Shares (in Thousands)
Non-vested and outstanding at September 30, 2021	166,091		$36.08		—
Granted	118,526		$38.84		—
Vested (2)	(76,708)		$39.57		$	2,765
Cancelled/forfeited	(15,788)		$37.33		—
Non-vested and outstanding at September 30, 2022	192,121		$36.29		—
Granted	112,661		$46.00		—
Vested (3)	(105,197)		$35.07		$	4,126
Cancelled/forfeited	(9,330)		$38.64		—
Non-vested and outstanding at September 30, 2023	190,255		$42.60		—
Granted	142,800		$42.55		—
Vested (4)	(112,183)		$39.91		$	5,271
Cancelled/forfeited	(1,913)		$43.83		—
Non-vested and outstanding at September 30, 2024	218,959		$43.93		—

(1)The number of common shares issued related to certain performance shares may range from zero to 150% of the number of shares shown in the table above based on the Company’s achievement of performance goals.

(2)As certified by the Company’s Leadership and Compensation Committee on November 9, 2022, the number of common shares earned related to TSR performance was 112% or 30,472 shares, the number of common shares earned related to NFE performance was 105% or 26,282 shares, and the number of common shares earned related to Performance Based Restricted Stock was 100% or 28,965 shares. Each award earned excludes accumulated dividends. The number represented on this line is the target number of 100%.

(3)As certified by the Company’s Leadership and Compensation Committee on November 15, 2023, the number of common shares earned related to TSR performance was 150% or 59,192 shares, the number of common shares earned related to NFE performance was 150% or 55,832 shares, and the number of common shares earned related to Performance Based Restricted Stock was 100% or 30,598 shares. Each award earned excludes accumulated dividends. The number represented on this line is the target number of 100%.

(4)As certified by the Company’s Leadership and Compensation Committee on November 6, 2024, the number of common shares earned related to TSR performance was 150% or 60,092 shares, the number of common shares earned related to NFE performance was 124% or 49,269 shares, and the number of common shares earned related to Performance Based Restricted Stock was 100% or 37,603 shares. Each award earned excludes accumulated dividends. The number represented on this line is the target number of 100%.

The Company measures compensation expense related to performance shares based on the fair value of these awards at their date of grant. In accordance with ASC 718, Compensation - Stock Compensation, compensation expense for market condition grants are recognized for awards granted, and are not adjusted based on actual achievement of the performance goals. The Company estimated the fair value of these grants on the date of grant using a lattice model. Performance condition grants are initially fair valued at the Company’s stock price on the grant date and are subsequently adjusted for actual achievement of the performance goals.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

Restricted Stock Units

The Company granted 67,522, 64,080 and 54,826 shares of restricted stock during fiscal 2024, 2023 and 2022, respectively. The shares vest annually over a three-year period beginning in October of the fiscal year in which they were granted. On April 25, 2024, the Company also granted an additional 3,465 shares of restricted stock that vest annually over a three-year period beginning in April of the fiscal year in which they were granted. There is approximately $1.7M of deferred compensation related to unvested restricted stock shares that is expected to be recognized over the weighted average period of 1.8 years.

The following table summarizes the restricted stock activity under the stock award and incentive plans for the past three fiscal years:

	Shares	Weighted Average Grant Date Fair Value		Total Fair Value of Vested Shares (in Thousands)
Non-vested and outstanding at September 30, 2021	101,621		$36.87		—
Granted	54,826		$38.84		—
Vested	(47,867)		$39.01		$	1,824
Cancelled/forfeited	(10,756)		$37.06		—
Non-vested and outstanding at September 30, 2022	97,824		$36.90		—
Granted	64,080		$46.00		—
Vested	(48,312)		$40.30		$	1,910
Cancelled/forfeited	(4,716)		$38.77		—
Non-vested and outstanding at September 30, 2023	108,876		$41.55		—
Granted	70,987		$42.59		—
Vested	(53,393)		$39.74		$	2,256
Cancelled/forfeited	(970)		$44.52		—
Non-vested and outstanding at September 30, 2024	125,500		$42.89		—

Deferred Retention Stock Units

Deferred retention stock awards are granted upon approval by the Board of Directors, which generally occurs subsequent to the fiscal year end. Deferred retention stock awards vest immediately when granted, with shares delivered at a future date in accordance with the terms of the underlying agreements. The expense for these awards is recognized in the fiscal year in which services are rendered. The following table summarizes the deferred retention stock award under the stock award and incentive plans for the past three fiscal years:

	Shares	Weighted Average Grant Date Fair Value		Total Fair Value of Vested Shares (in Thousands)
Outstanding at September 30, 2021	208,856		$46.28		—
Granted/Vested	192,728		$38.95		—
Delivered	(163,499)		$47.95		$	6,167
Forfeited	(6,818)		$40.33		—
Outstanding at September 30, 2022	231,267		$39.16		—
Granted/Vested	134,941		$45.85		—
Delivered	(38,115)		$40.67		$	1,517
Outstanding at September 30, 2023	328,093		$41.74		—
Granted/Vested	155,188		$42.55		—
Delivered	(5,089)		$35.86		$	213
Forfeited	(235)		$42.55		—
Outstanding at September 30, 2024	477,957		$42.07		—

Non-Employee Director Stock

Non-employee director compensation includes an annual equity retainer that is awarded at the time of the Company’s annual meeting of shareowners. The shares vest upon the earlier of the first anniversary of the grant date or the date of the Company’s next annual meeting of shareowners following the grant date and are amortized to expense over a 12-month period.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

The following summarizes non-employee director share awards for the past three fiscal years:

	2024	2023	2022
Shares granted	29,996	24,044	30,908
Weighted average grant date fair value	$41.67	$49.58	$39.09

11. EMPLOYEE BENEFIT PLANS

Pension and Other Postemployment Benefit Plans

The Company has two trusteed, noncontributory defined benefit retirement plans covering eligible regular represented and non-represented employees with more than one year of service. Defined benefit plan benefits are based on years of service and average compensation during the highest 60 consecutive months of employment. The Company also provides postemployment medical and life insurance benefits to employees who meet certain eligibility requirements.

All represented employees of NJRHS hired on or after October 1, 2000, non-represented employees hired on or after October 1, 2009 and NJNG represented employees hired on or after January 1, 2012 are covered by an enhanced defined contribution plan instead of the defined benefit plan. Participation in the postemployment medical and life insurance plan was also frozen to new employees as of the same dates, with the exception of new NJRHS represented employees, for which benefits were frozen beginning April 3, 2012.

The Company maintains an unfunded nonqualified PEP that was established to provide employees with the full level of benefits as stated in the qualified plan without reductions due to various limitations imposed by the provisions of federal income tax laws and regulations. There are no plan assets in the nonqualified plan due to the nature of the plan.

The Company’s funding policy for its pension plans is to contribute at least the minimum amount required by the Employee Retirement Income Security Act of 1974, as amended. In fiscal 2024 and 2023, the Company had no minimum funding requirements and did not make any discretionary contributions to the pension plans. The Company does not expect to be required to make additional contributions to fund the pension plans during the next fiscal year based on current actuarial assumptions; however, funding requirements are uncertain and can depend significantly on changes in actuarial assumptions, returns on plan assets and changes in the demographics of eligible employees and covered dependents.

There are no federal requirements to pre-fund OPEB benefits. However, the Company is required to fund certain amounts due to regulatory agreements with the BPU. The Company contributed $7.8M and $4.2M in fiscal 2024 and 2023, respectively, and estimates that it will contribute between $5M and $10M over each of the next five years. Additional contributions may be required based on market conditions and changes to assumptions.

In January 2024, the Company announced changes to its postretirement medical benefits plan. Beginning on January 1, 2025, the Company will replace the existing retiree medical coverage for certain eligible employees age 65 and older and their Medicare-eligible dependents with an employer-funded Health Reimbursement Arrangement. Medicare-eligible participants may use the Health Reimbursement Arrangement toward the purchase of supplemental insurance coverage and for other qualified medical expenses. The liability associated with postretirement medical benefits was remeasured as of January 1, 2024. The change in post-retirement medical benefits is being amortized into earnings over approximately eight years, the average remaining service to retirement for all plan participants.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

The following summarizes the changes in the funded status of the plans and the related liabilities recognized on the Consolidated Balance Sheets as of September 30:

	Pension (1)				OPEB
(Thousands)	2024		2023		2024		2023
Change in Benefit Obligation
Benefit obligation at beginning of year	$	290,321	$	290,823	$	203,406	$	173,217
Service cost	4,976		5,402		1,406		2,471
Interest cost	16,240		15,174		8,327		9,146
Plan amendments	—		—		(79,881)		—
Plan participants’ contributions (2)	27		32		703		552
Actuarial loss (gain)	36,863		(7,057)		54,518		25,363
Benefits paid, net of retiree subsidies received	(14,895)		(14,053)		(6,679)		(7,343)
Benefit obligation at end of year	$	333,532	$	290,321	$	181,800	$	203,406
Change in plan assets
Fair value of plan assets at beginning of year	$	298,361	$	284,347	$	106,783	$	99,736
Actual return on plan assets	58,682		27,456		21,249		9,826
Employer contributions	535		579		7,846		4,192
Benefits paid, net of plan participants’ contributions (2)	(14,868)		(14,021)		(6,157)		(6,971)
Fair value of plan assets at end of year	$	342,710	$	298,361	$	129,721	$	106,783
Funded status	$	9,178	$	8,040	$	(52,079)	$	(96,623)
Amounts recognized on Consolidated Balance Sheets
Postemployment employee benefit asset
Noncurrent	$	21,104	$	18,684	$	3,556	$	—
Postemployment employee benefit liability
Current	$	(552)	$	(538)	$	(2,400)	$	(4,201)
Noncurrent	(11,374)		(10,106)		(53,235)		(92,422)
Total	$	9,178	$	8,040	$	(52,079)	$	(96,623)

(1)Includes the Company’s PEP.

(2)Contributions made by employees hired prior to July 1, 1998, that were eligible to elect an additional participant contribution to enhance their benefits, were immaterial during the periods.

The Company recognizes a liability for its underfunded benefit plans as required by ASC 715, Compensation - Retirement Benefits. The Company records the offset to regulatory assets for the portion of liability relating to NJNG and to accumulated OCI for the portion of the liability related to its unregulated operations. The increase in actuarial loss during fiscal 2024 compared with fiscal 2023 for both pension and OPEB was due primarily to the decrease in the discount rate.

The following table summarizes the amounts recognized in regulatory assets and accumulated OCI as of September 30:

	Regulatory Assets				Accumulated Other Comprehensive Income (Loss)
(Thousands)	Pension		OPEB		Pension		OPEB
Balance at September 30, 2022	$	35,321	$	20,110	$	5,003	$	(6,822)
Amounts arising during the period:
Net actuarial (gain) loss	(10,493)		9,936		(4,048)		12,320
Amounts amortized to net periodic costs:
Net actuarial (loss)	(87)		—		(213)		—
Prior service (cost)	(103)		—		—		—
Balance at September 30, 2023	$	24,638	$	30,046	$	742	$	5,498
Amounts arising during the period:
Net actuarial (gain) loss	(2,407)		27,108		934		14,080
Prior service (credit)	—		(60,504)		—		(19,376)
Amounts amortized to net periodic costs:
Net actuarial gain (loss)	2		(3,098)		(119)		(1,164)
Prior service (cost) credit	(61)		7,458		—		2,555
Balance at September 30, 2024	$	22,172	$	1,010	$	1,557	$	1,593

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

The amounts in regulatory assets and accumulated OCI not yet recognized as components of net periodic benefit cost as of September 30 are:

	Regulatory Assets								Accumulated Other Comprehensive Income (Loss)
	Pension				OPEB				Pension				OPEB
(Thousands)	2024		2023		2024		2023		2024		2023		2024		2023
Net actuarial loss	$	22,172	$	24,577	$	54,056	$	30,046	$	1,557	$	742	$	18,414	$	5,498
Prior service cost (credit)	—		61		(53,046)		—		—		—		(16,821)		—
Total	$	22,172	$	24,638	$	1,010	$	30,046	$	1,557	$	742	$	1,593	$	5,498

To the extent the unrecognized amounts in accumulated OCI or regulatory assets exceed 10% of the greater of the benefit obligation or the fair value of plan assets, an amortized amount over the average expected future working lifetime of the active plan participants is recognized.

The projected benefit and accumulated benefit obligations and the fair value of plan assets as of September 30, are as follows:

	Pension
(Thousands)	2024		2023
Projected benefit obligation	$	333,532	$	290,321
Accumulated benefit obligation	$	306,850	$	267,794
Fair value of plan assets	$	342,710	$	298,361

The components of the net periodic cost for pension benefits, including the Company’s PEP, and OPEB costs (principally health care and life insurance) for employees and covered dependents for fiscal years ended September 30, are as follows:

	Pension						OPEB
(Thousands)	2024		2023		2022		2024		2023		2022
Service cost	$	4,976	$	5,402	$	8,291	$	1,406	$	2,471	$	4,305
Interest cost	16,240		15,174		9,632		8,327		9,146		6,355
Expected return on plan assets	(20,346)		(19,972)		(21,275)		(7,920)		(6,721)		(7,575)
Recognized actuarial loss	117		300		8,745		4,262		—		5,684
Prior service cost (credit) amortization	61		103		101		(10,013)		—		(144)
Net periodic benefit cost recognized as expense	$	1,048	$	1,007	$	5,494	$	(3,938)	$	4,896	$	8,625

Assumptions

The weighted average assumptions used to determine the Company’s benefit costs during the fiscal years below and obligations as of September 30, are as follows:

	Pension									OPEB
	2024			2023			2022			2024			2023			2022
Benefit costs:
Discount rate	5.89/5.87%		(1)	5.50/5.50%		(1)	3.10/3.07%		(1)	5.97/5.94%		(1)	5.51/5.51%		(1)	3.24/3.17%		(1)
Expected asset return	7.00	%		7.00	%		6.75	%		7.00	%		7.00	%		6.75	%
Compensation increase	3.00/3.50%		(1)	3.00/3.50%		(1)	3.00/3.50%		(1)	3.00/3.50%		(1)	3.00/3.50%		(1)	3.00/3.50%		(1)
Obligations:
Discount rate	5.01/4.99%		(1)	5.89/5.87%		(1)	5.50/5.50%		(1)	4.97/4.98%		(1)	5.97/5.94%		(1)	5.51/5.51%		(1)
Compensation increase	3.00/3.50%		(1)	3.00/3.50%		(1)	3.00/3.50%		(1)	3.00/3.50%		(1)	3.00/3.50%		(1)	3.00/3.50%		(1)

(1)Percentages for represented and non-represented plans, respectively.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

When measuring its PBO, the Company uses an aggregate discount rate at which its obligation could be effectively settled. The Company determines a single weighted average discount rate based on a yield curve comprised of rates of return on a population of high quality debt issuances (AA- or better) whose cash flows (via coupons or maturities) match the timing and amount of its expected future benefit payments. The Company measures its service and interest costs using a disaggregated, or spot rate, approach. The Company applies the duration-specific spot rates from the full yield curve, as of the measurement date, to each year’s future benefit payments, which aligns the timing of the plans’ separate future cash flows to the corresponding spot rates on the yield curve.

Information relating to the assumed HCCTR used to determine expected OPEB benefits as of September 30, is as follows:

($ in thousands)	2024	2023	2022
HCCTR	8.8%	7.4%	6.6%
Ultimate HCCTR	4.5%	4.5%	4.5%
Year ultimate HCCTR reached	2032	2032	2027

The Company’s investment objective is a long-term real rate of return on assets before permissible expenses that is approximately 5% greater than the assumed rate of inflation, as measured by the consumer price index. The expected long-term rate of return is based on the asset categories in which the Company invests and the current expectations and historical performance for these categories.

The mix and targeted allocation of the pension and OPEB plans’ assets are as follows:

	2025		Assets at
	Target		September 30,
Asset Allocation	Allocation		2024		2023
U.S. equity securities	29	%	29	%	34	%
International equity securities	16		16		16
Fixed income	39		38		31
Collective investment trusts at NAV	16		17		19
Total	100	%	100	%	100	%

The Company uses mortality assumptions published by the Society of Actuaries for its pension and other postemployment benefit obligations, which reflects life expectancies in the U.S. The Company used projection scale MP-2021 and the Pri-2012 mortality study as of September 30, 2024 and 2023.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the following fiscal years:

(Thousands)	2025		2026		2027		2028		2029		2030 - 2034
Pension	$	16,273	$	17,378	$	18,452	$	19,423	$	20,493	$	115,709
OPEB	$	8,397	$	9,300	$	10,138	$	10,925	$	11,703	$	65,473

The Company’s OPEB plans provide prescription drug benefits that are actuarially equivalent to those provided by Medicare Part D. Therefore, under the Medicare Prescription Drug, Improvement and Modernization Act of 2003, the Company qualifies for federal subsidies. Estimated subsidy payments for fiscal 2024 and 2025 are immaterial and zero thereafter.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

Pension and OPEB assets held in the master trust, measured at fair value, are summarized as follows:

	Pension				OPEB
(Thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Total
As of September 30, 2024
Assets
Money market funds	$	—	$	—	$	24	$	24
Registered Investment Companies:
Equity Funds:
Large Cap Index	76,897		76,897		38,040		38,040
Extended Market Index	16,665		16,665		7,977		7,977
International Stock	50,549		50,549		22,730		22,730
Fixed Income Funds:
Emerging Markets	13,354		13,354		5,358		5,358
Core Fixed Income	—		—		28,765		28,765
High Yield Bond Fund	16,704		16,704		9,195		9,195
Long Duration Fund	106,656		106,656		—		—
Total assets in the fair value hierarchy	$	280,825	280,825		$	112,089	112,089
Investments measured at net asset value
Collective investment trusts			61,885				17,632
Total assets at fair value			$	342,710			$	129,721
As of September 30, 2023
Assets
Registered Investment Companies:
Equity Funds:
Large Cap Index	$	81,171	$	81,171	$	30,884	$	30,884
Extended Market Index	17,256		17,256		6,444		6,444
International Stock	48,557		48,557		17,966		17,966
Fixed Income Funds:
Emerging Markets	11,471		11,471		4,306		4,306
Core Fixed Income	—		—		22,241		22,241
High Yield Bond Fund	20,685		20,685		7,651		7,651
Long Duration Fund	58,484		58,484		—		—
Total assets in the fair value hierarchy	$	237,624	237,624		$	89,492	89,492
Investments measured at net asset value
Collective investment trusts			60,737				17,291
Total assets at fair value			$	298,361			$	106,783

The Plan had no Level 2 or Level 3 fair value measurements during fiscal 2024 and 2023, and there have been no changes

in valuation methodologies as of September 30, 2024. The Plan held assets that are valued using NAV as a practical expedient, which are excluded from the fair value hierarchy. The following is a description of the valuation methodologies used for assets measured at fair value:

Asset Types	Description of the Valuation Methodologies
Money Market funds	Represents bank balances and money market funds that are valued based on the NAV of shares held at year end.
Registered Investment Companies	Equity and fixed income funds valued at the NAV of shares held by the plan at year end as reported on the active market on which the individual securities are traded.
Collective investment trusts	The NAV for collective investment trusts is provided by the Trustee and is used as a practical expedient to estimate fair value. The NAV is based on the value of the underlying assets owned by the fund less liabilities.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

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New Jersey Resources Corporation

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

Defined Contribution Plan

The Company offers a Savings Plan to eligible employees. The Company matched 85% of participants’ contributions up to 6% of base compensation. Beginning on March 6, 2024, the Company’s contribution changed to 100% of the first 3% and 80% of the next 3% of base compensation. Represented NJRHS employees, non-represented employees hired on or after October 1, 2009, and NJNG represented employees hired on or after January 1, 2012, are eligible for an employer special contribution of between 4.0% and 5.0% of base compensation, depending on years of service, into the Savings Plan on their behalf. The amount expensed and contributed for the matching provision of the Savings Plan was $6.8M in fiscal 2024, $5.9M in fiscal 2023 and $5.5M in fiscal 2022. The amount contributed for the employer special contribution of the Savings Plan was $3.6M in fiscal 2024, $2.1M in fiscal 2023 and $2.4M in fiscal 2022.

12. INCOME TAXES

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

(Thousands)	2024		2023		2022
Current:
Federal	$	691	$	13,393	$	4,238
State	(682)		7,716		2,104
Deferred:
Federal	66,623		36,825		55,968
State	18,531		(8,381)		14,185
Investment/production tax credits	(257)		(278)		(300)
Income tax provision	$	84,906	$	49,275	$	76,195

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

(Thousands)	2024		2023
Deferred tax assets
Investment tax credits (1)	$	192,238	$	191,948
State net operating losses	38,762		39,612
Deferred revenue	14,107		8,205
Fair value of derivatives	5,397		5,386
Impairment of equity method investment	14,004		14,004
Postemployment benefits	855		6,502
Incentive compensation	10,142		8,949
Amortization of intangibles	6,248		6,308
Overrecovered natural gas costs	9,072		8,564
Allowance for doubtful accounts	3,744		4,485
Other	7,226		7,636
Total deferred tax assets	301,795		301,599
Less: Valuation allowance	(5,621)		(5,747)
Total deferred tax assets net of valuation allowance	$	296,174	$	295,852
Deferred tax liabilities
Property-related items	$	(563,403)	$	(487,294)
Remediation costs	(21,656)		(18,532)
Investments in equity investees	(28,704)		(28,325)
Conservation incentive program	(14,379)		(14,075)
Other	(6,065)		(4,670)
Total deferred tax liabilities	$	(634,207)	$	(552,896)
Total net deferred tax liabilities	$	(338,033)	$	(257,044)

(1)Includes approximately $0.7M for NJNG for both fiscal 2024 and 2023, which is being amortized over the life of the related assets.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

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)	2024			2023			2022
Statutory income tax expense	$	78,683		$	65,940		$	73,735
Change resulting from:
Investment/production tax credits	(257)			(278)			(300)
Cost of removal of assets placed in service prior to 1981	(5,644)			(4,758)			(3,533)
AFUDC equity	(1,444)			(1,499)			(2,361)
State income taxes, net of federal benefit	14,517			13,293			13,072
Valuation allowance	(126)			(16,494)			(1,372)
Tax Act - utility excess deferred income taxes amortized	(3,573)			(3,573)			(3,573)
Other	2,750			(3,356)			527
Income tax provision	$	84,906		$	49,275		$	76,195
Effective income tax rate	22.7		%	15.7		%	21.7		%

The Company and one or more of its subsidiaries files or expects to file income and/or franchise tax returns in the U.S. federal jurisdiction and in the states of Colorado, Connecticut, Delaware, Florida, Georgia, Indiana, Louisiana, Maryland, Michigan, Mississippi, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Texas, Virginia and West Virginia. The Company neither files in, nor believes it has a filing requirement in, any foreign jurisdictions.

The Company’s U.S. federal income tax returns through fiscal 2020 have either been reviewed by the IRS, or the related statute of limitations has expired and all matters have been settled. U.S. federal income tax returns for periods subsequent to fiscal 2020 are open to examination by the IRS. For all periods subsequent to those ended September 30, 2020, the Company’s state income tax returns are statutorily open to examination in all applicable states with the exception of Colorado and Texas.

In March 2024, the State of New Jersey commenced an examination of the Company’s Corporate Business Tax return for NJR and certain subsidiaries for the fiscal periods ended September 30, 2019 through September 30, 2022.

NJR evaluates its tax positions to determine the appropriate accounting and recognition of potential future obligations associated with uncertain tax positions. A tax benefit claimed, or expected to be claimed, on a tax return may be recognized only if it is more likely than not that the tax position will be upheld upon examination by the applicable taxing authority and is measured based on the largest tax benefit that is more than 50% likely to be realized. Interest and penalties related to unrecognized tax benefits, if any, are recognized within income tax expense, and accrued interest and penalties are recognized within other noncurrent liabilities on the Consolidated Balance Sheets.

Inflation Reduction Act

In August 2022, the President of the U.S. signed the Inflation Reduction Act, which contains provisions addressing inflation, clean energy, healthcare and taxes beginning in 2023. The Inflation Reduction Act imposes a 15% minimum tax rate on corporations with higher than $1B of annual income, along with a 1% excise tax on corporate stock repurchases. The Inflation Reduction Act raised the ITC from 26% to 30% through the end of 2032, dropping to 26% for property under construction before the end of 2033 and to 22% for property under construction before the end of 2034. The ITC expires starting in 2035 unless it is renewed. There are additional opportunities to increase the credit amount for certain facilities that are placed in service after December 31, 2022. The credit amount can be increased by 10% if certain domestic content requirements are satisfied or if the facility is located in an energy community, such as a brownfield site. ITCs are also expanded to include stand-alone energy storage projects without being integrated into a solar facility, allowing solar to claim production tax credits that are a production-based credit extending for 10 years following the placed-in-service date of the facility, and introducing the concept of transferability of tax credits, providing an additional option to monetize such credits.

The Company evaluated the impacts of the Inflation Reduction Act on its financial position, results of operations and cash flows, noting the corporate alternative minimum tax does not impact the Company as the applicable income thresholds have not been met. Upon the repurchase of common stock through the Company’s share repurchase program, the Company would be subject to the 1% excise tax.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

Other Tax Items

As of September 30, 2024 and 2023, the Company has tax credit carryforwards of approximately $191.6M and $191.2M, respectively, which each have a life of 20 years. The Company expects to utilize this entire carryforward prior to expiration, which would begin in fiscal 2036.

The impairment of the equity method investment in PennEast created net capital loss attributes totaling approximately $56.6M, which could only be utilized to offset capital gains income and carried back three years and forward five years prior to expiration. During the fourth quarter of fiscal 2023, the Company determined that the tax losses created by the impairment may qualify as an ordinary loss, rather than a capital loss. As of September 30, 2024 and 2023, the Company had a valuation allowance of approximately $5.1M and $5.0M, respectively.

As of September 30, 2024, the Company evaluated certain tax benefits recorded in the Consolidated Financial Statements and concluded that a portion of the tax benefits are uncertain at this time. As a result, the Company recorded a reserve for uncertain tax benefits. The reserve for uncertain tax benefits is as follows:

(Thousands)	2024		2023
Balance at October 1,	$	4,978	$	—
Additions based on tax positions related to the current fiscal period	15		4,978
Balance at September 30,	$	4,993	$	4,978

As of September 30, 2024 and 2023, there are $5.0M of unrecognized tax benefits that if recognized would affect the annual effective tax rate. The tax benefits relate to fiscal tax years open to examination by the IRS and the state of Pennsylvania and may be subject to subsequent adjustment.

As of September 30, 2024 and 2023, the Company has state income tax net operating losses of approximately $634.7M and $631.2M, respectively. These state net operating losses have varying carry-forward periods dictated by the state in which they were incurred; these state carry-forward periods range from seven to 20 years, with the majority expiring after 2037. The Company expects to utilize this entire carryforward, other than as described below.

As of September 30, 2022, the Company had a valuation allowance of approximately $17.2M related to the recognition of state net operating loss carryforwards. As of September 30, 2023, it was determined that the realization of certain deferred tax assets was more likely than not, and thus the associated valuation allowance of approximately $15.8M was no longer required. Reversal of the valuation allowance resulted in a corresponding income tax benefit on the Consolidated Statement of Operations. As of September 30, 2024, the remaining valuation allowance of approximately $0.6M related primarily to other state income tax attributes which the Company could not conclude were realizable on a more-likely-than-not basis.

The Consolidated Appropriations Act extended the 30% ITC for solar property that is under construction on or before December 31, 2019. Projects placed in service after December 31, 2019, may also qualify for a 30% federal ITC if 5% or more of the total costs of a solar property are incurred before the end of the applicable year and there are continuous efforts to advance toward completion of the project, based on the IRS guidance around ITC safe harbor determination. The credit declined to 26% for property under construction before the end of 2020. The Consolidated Appropriations Act of 2021 extended the 26% tax credit for property under construction during 2021 and 2022. The Inflation Reduction Act raised the ITC from 26% to 30% through the end of 2032, as previously stated.

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Part II

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

13. LEASES

Lessee Accounting

The Company determines if an arrangement is a lease at inception based on whether the Company has the right to control the use of an identified asset, the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset. After the criteria are satisfied, the Company accounts for these arrangements as leases in accordance with ASC 842, Leases. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term, including payments at commencement that depend on an index or rate. Most leases in which the Company is the lessee do not have a readily determinable implicit rate, so an incremental borrowing rate, based on the information available at the lease commencement date, is utilized to determine the present value of lease payments. When a secured borrowing rate is not readily available, unsecured borrowing rates are adjusted for the effects of collateral to determine the incremental borrowing rate. The Company uses the implicit rate for agreements in which it is a lessor. The Company has not entered into any material agreements in which it is a lessor. Lease expense and lease income are recognized on a straight-line basis over the lease term for operating leases.

The Company’s lease agreements primarily consist of commercial solar land leases, storage and capacity leases, equipment and real property, including land and office facilities, office equipment and the sale leaseback of certain natural gas meters.

Certain leases contain escalation provisions for inflation metrics. The storage leases contain a variable payment component that relates to the change in the inflation metrics that are not known past the current payment period. The variable components of these lease payments are excluded from the lease payments that are used to determine the related right-of-use lease asset and liability. The variable portion of these leases are recognized as leasing expenses when they are incurred. The capacity lease payments are fully variable and based on the amount of natural gas stored in the storage caverns.

Generally, the Company’s solar land lease terms are between 20 and 50 years and may include multiple options to extend the terms for an additional five to 20 years. The Company’s office leases vary in duration, ranging from two to 11 years, and may or may not include extension or early purchase options. The Company’s meter lease terms are between six and 10 years with purchase options available prior to the end of the term. Equipment leases, including general office equipment, also vary in duration, with an average term of nine years. The Company’s storage and capacity leases have assumed terms of 50 years to coincide with the expected useful lives of the cavern assets with which the leases are associated. The Company’s lease terms may include options to extend, purchase the leased asset or terminate a lease, and they are included in the lease liability calculation when it is reasonably certain that those options will be exercised. The Company has elected an accounting policy that exempts leases with an original term of one year or less from the recognition requirements of ASC 842, Leases.

The Company has lease agreements with lease and non-lease components and has elected the practical expedient to combine lease and non-lease components for certain classes of leases, such as office buildings, solar land leases and office equipment. Variable payments are not considered material to the Company. The Company’s lease agreements do not contain any material residual value guarantees, material restrictions or material covenants. In July 2021, NJNG entered into 16-year lease agreements, as Lessor, with various NJR subsidiaries, as Lessees, for office space at the Company’s headquarters in Wall, New Jersey, the effects of which are eliminated in consolidation.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

The following table presents the Company’s lease costs included in the Consolidated Statements of Operations for the fiscal year ended September 30:

(Thousands)	Income Statement Location	2024		2023		2022
Operating lease cost (1)	Operation and maintenance	$	10,368	$	9,336	$	9,702
Finance lease cost
Amortization of right-of-use assets	Depreciation and amortization	2,160		2,105		$	1,769
Interest on lease liabilities	Interest expense, net of capitalized interest	914		1,084		612
Total finance lease cost		$	3,074	$	3,189	2,381
Short-term lease cost	Operation and maintenance	—		—		34
Variable lease cost	Operation and maintenance	1,099		1,128		781
Total lease cost		$	14,541	$	13,653	$	12,898

(1)Net of capitalized costs.

The following table presents supplemental cash flow information related to leases for the fiscal year ended September 30:

(Thousands)	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	7,932	$	8,942	$	7,417
Operating cash flows for finance leases	$	914	$	1,084	$	831
Financing cash flows for finance leases	$	7,792	$	7,379	$	7,145

Assets obtained or modified through operating lease liabilities totaled approximately $14.1M and $13.2M during fiscal 2024 and 2023, respectively. Assets obtained or modified through other leases, including those which are finance leases and financing transactions for accounting purposes, totaled $8.4M during fiscal 2023. There were no assets obtained or modified through finance leases during fiscal 2024.

The following table presents the balance and classifications of the Company’s right of use assets and lease liabilities included in the Consolidated Balance Sheets for the fiscal year ended September 30:

(Thousands)	Balance Sheet Location	2024		2023
Assets
Noncurrent
Operating lease assets	Operating lease assets	$	184,485	$	175,740
Finance lease assets	Utility plant	26,088		28,248
Total lease assets		$	210,573	$	203,988
Liabilities
Current
Operating lease liabilities	Operating lease liabilities	$	4,945	$	4,772
Finance lease liabilities	Current maturities of long-term debt	7,534		8,477
Noncurrent
Operating lease liabilities	Operating lease liabilities	159,303		148,023
Finance lease liabilities	Long-term debt	16,026		22,875
Total lease liabilities		$	187,808	$	184,147

For operating lease assets and liabilities, the weighted average remaining lease term was 28.6 years and 29.2 years and the weighted average discount rate used in the valuation over the remaining lease term was 3.8% and 3.5% as of September 30, 2024 and 2023, respectively.

For finance lease assets and liabilities, the weighted average remaining lease term was 3.0 years and 3.3 years and the weighted average discount rate used in the valuation over the remaining lease term was 3.4% and 2.7% as of September 30, 2024 and 2023, respectively.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

The following table presents the Company’s maturities of lease liabilities as of September 30, 2024:

(Thousands)	Operating		Finance
2025	$	8,408	$	8,169
2026	8,852		6,411
2027	8,834		4,083
2028	8,925		4,715
2029	8,994		1,676
Thereafter	233,942		—
Total future payments	277,955		25,054
Less: interest	(113,707)		(1,494)
Total liability	$	164,248	$	23,560

14. COMMITMENTS AND CONTINGENT LIABILITIES

Cash Commitments

NJNG has entered into long-term contracts, expiring at various dates through July 2039, for the supply, transportation and storage of natural gas. These contracts include annual fixed charges of approximately $252.8M at current contract rates and volumes, which are recoverable through BGSS.

For the purpose of securing storage and pipeline capacity, ES enters into storage and pipeline capacity contracts, which require the payment of certain demand charges by ES to maintain the ability to access such natural gas storage or pipeline capacity, during a fixed time period, which generally ranges from one to 10 years. Demand charges are established by interstate storage and pipeline operators and are regulated by FERC. These demand charges represent commitments to pay storage providers or pipeline companies for the right to store and/or transport natural gas utilizing their respective assets.

Commitments as of September 30, 2024, for natural gas purchases and future demand fees for the next five fiscal year periods, are as follows:

(Thousands)	2025		2026		2027		2028		2029		Thereafter
ES:
Natural gas purchases	$	42,427	$	1,155	$	—	$	—	$	—	$	—
Storage demand fees	16,453		11,857		5,452		3,500		2,712		4,068
Pipeline demand fees	47,950		40,197		29,543		21,493		11,005		47,686
Sub-total ES	$	106,830	$	53,209	$	34,995	$	24,993	$	13,717	$	51,754
NJNG:
Natural gas purchases	$	23,392	$	—	$	—	$	—	$	—	$	—
Storage demand fees	38,214		22,678		11,207		4,900		—		—
Pipeline demand fees	214,625		161,954		141,818		126,080		124,498		955,035
Sub-total NJNG	$	276,231	$	184,632	$	153,025	$	130,980	$	124,498	$	955,035
Total	$	383,061	$	237,841	$	188,020	$	155,973	$	138,215	$	1,006,789

Certain pipeline demand fees totaling approximately $4.0M per year, for which ES is the responsible party, are being paid for by the counterparty to a capacity release transaction beginning November 1, 2021 for a period of 10 years.

As of September 30, 2024, the Company’s future minimum lease payments under various operating leases will not be more than $9.0M annually for the next five years and $233.9M in the aggregate for all years thereafter.

Guarantees

As of September 30, 2024, there were NJR guarantees covering approximately $174.3M of ES’s natural gas purchases and demand fee commitments not yet reflected in accounts payable on the Consolidated Balance Sheets.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

Legal Proceedings

Manufactured Gas Plant Remediation

NJNG is responsible for the remedial cleanup of certain former MGP sites, dating back to gas operations in the late 1800s and early 1900s, which contain contaminated residues from former gas manufacturing operations. NJNG is currently involved in administrative proceedings with the NJDEP, and is participating in various studies and investigations by outside consultants, to determine the nature and extent of any such contaminated residues and to develop appropriate programs of remedial action, where warranted, under NJDEP regulations.

NJNG periodically, and at least annually, performs an environmental review of former MGP sites located in Atlantic Highlands, Berkeley, Long Branch, Manchester, Toms River, Freehold and Aberdeen, New Jersey, including a review of potential liability for investigation and remedial action. NJNG estimated at the time of the most recent review that total future expenditures at the former MGP sites for which it is responsible, including potential liabilities for natural resource damages that might be brought by the NJDEP for alleged injury to groundwater or other natural resources concerning these sites, will range from approximately $130.9M to $194.6M. NJNG’s estimate of these liabilities is based upon known facts, existing technology and enacted laws and regulations in place when the review was completed. Where it is probable that costs will be incurred, and the information is sufficient to establish a range of possible liability, NJNG accrues the most likely amount in the range. If no point within the range is more likely than the other, it is NJNG’s policy to accrue the lower end of the range. Accordingly, as of September 30, 2024, NJNG recorded a MGP remediation liability and a corresponding regulatory asset of approximately $161.7M on the Consolidated Balance Sheets based on the most likely amount. The actual costs to be incurred by NJNG are dependent upon several factors, including final determination of remedial action, changing technologies and governmental regulations, the ultimate ability of other responsible parties to pay and insurance recoveries, if any.

NJNG recovers its remediation expenditures, including carrying costs, over rolling seven-year periods pursuant to a RAC approved by the BPU. As of September 30, 2024, $77.5M of previously incurred remediation costs, net of recoveries from customers and insurance proceeds, are included in regulatory assets on the Consolidated Balance Sheets. NJNG will continue to seek recovery of MGP-related costs through the RAC. If any future regulatory position indicates that the recovery of such costs is not probable, the related non-recoverable costs would be charged to income in the period of such determination.

General

The Company is involved, and from time to time in the future may be involved, in a number of pending and threatened judicial, regulatory and arbitration proceedings relating to matters that arise in the ordinary course of business. In view of the inherent difficulty of predicting the outcome of litigation matters, particularly when such matters are in their early stages or where the claimants seek indeterminate damages, the Company cannot state with confidence what the eventual outcome of the pending litigation will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss, fines or penalties related to each pending matter will be, if any. In accordance with applicable accounting guidance, the Company establishes accruals for litigation for those matters that present loss contingencies as to which it is both probable that a loss will be incurred and the amount of such loss can be reasonably estimated. The Company also discloses contingent matters for which there is a reasonable possibility of a loss. Based upon currently available information, the Company believes that the results of litigation that are currently pending, taken together, will not have a materially adverse effect on the Company’s financial condition, results of operations or cash flows. The actual results of resolving the pending litigation matters may be substantially different than the amounts accrued.

The foregoing statements about the Company’s litigation are based upon the Company’s judgments, assumptions and estimates and are necessarily subjective and uncertain. The Company has a number of threatened and pending litigation matters at various stages.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

15. REPORTING SEGMENT AND OTHER OPERATIONS DATA

The Company organizes its businesses based on a combination of factors, including its products and its regulatory environment. As a result, the Company manages its businesses through the following reporting segments and other business operations: NJNG consists of regulated energy and off-system, capacity and storage management operations; CEV consists of capital investments in clean energy projects; ES consists of unregulated wholesale and retail energy operations; S&T consists of the Company’s investments in natural gas transportation and storage facilities; the HSO business operations consist of heating, cooling and water appliance sales, installations and services, other investments and general corporate activities.

Information related to the Company’s various reporting segments and other business operations, as of September 30, is detailed below:

	Segments
(Thousands)	NJNG		CEV	ES		S&T	Subtotal		HSO	Elims	Total
2024
Operating revenues
External customers	$	1,018,482	130,563	490,266	(1)	94,851	$	1,734,162	62,377	—	$	1,796,539
Intercompany	$	1,350	—	(4,875)		1,358	$	(2,167)	258	1,909	$	—
Depreciation and amortization	$	112,492	27,869	205	(2)	24,900	$	165,466	1,101	—	$	166,567
Interest income (3)	$	2,448	—	452		10,172	$	13,072	1,423	(5,826)	$	8,669
Interest expense, net of capitalized interest	$	62,288	28,545	15,233		23,441	$	129,507	768	—	$	130,275
Income tax provision	$	31,793	11,406	33,331		4,551	$	81,081	2,666	1,159	$	84,906
Equity in earnings of affiliates	$	—	—	—		2,816	$	2,816	—	2,483	$	5,299
Net financial earnings	$	133,400	33,662	111,515		12,229	$	290,806	26	(4)	$	290,828
Capital expenditures	$	419,453	104,287	—		45,338	$	569,078	2,241	—	$	571,319
2023
Operating revenues
External customers	$	1,011,284	124,131	681,446	(1)	88,700	$	1,905,561	57,433	—	$	1,962,994
Intercompany	$	1,349	—	10,170		4,159	$	15,678	205	(15,883)	$	—
Depreciation and amortization	$	102,326	25,320	221	(2)	24,185	$	152,052	889	—	$	152,941
Interest income (3)	$	1,713	—	1,119		6,957	$	9,789	2,977	(3,847)	$	8,919
Interest expense, net of capitalized interest	$	56,595	28,569	11,400		25,803	$	122,367	647	—	$	123,014
Income tax provision (benefit)	$	33,065	(7,683)	24,343		3,444	$	53,169	(1,477)	(2,417)	$	49,275
Equity in earnings of affiliates	$	—	—	—		3,126	$	3,126	—	804	$	3,930
Net financial earnings	$	131,414	44,458	68,517		12,835	$	257,224	4,758	(155)	$	261,827
Capital expenditures	$	390,394	107,303	—		40,916	$	538,613	2,306	—	$	540,919
2022
Operating revenues
External customers	$	1,127,417	128,280	1,529,178	(1)	65,286	$	2,850,161	55,818	—	$	2,905,979
Intercompany	$	1,350	—	94		2,449	$	3,893	364	(4,257)	$	—
Depreciation and amortization	$	94,579	21,396	148	(2)	12,302	$	128,425	824	—	$	129,249
Interest income (3)	$	895	—	16		2,110	$	3,021	944	(1,249)	$	2,716
Interest expense, net of capitalized interest	$	46,394	21,968	4,725		12,097	$	85,184	646	—	$	85,830
Income tax provision	$	40,141	11,361	21,776		1,879	$	75,157	1,059	(21)	$	76,195
Equity in loss of affiliates	$	—	—	—		9,865	$	9,865	—	(1,688)	$	8,177
Net financial earnings	$	140,124	39,403	39,121		22,454	$	241,102	(781)	—	$	240,321
Capital expenditures	$	298,374	146,676	—		151,988	$	597,038	1,390	—	$	598,428
Return of capital from equity investees	$	—	—	—		(5,479)	$	(5,479)	—	—	$	(5,479)

(1)Includes sales to Canada for ES, which were $8.4M and $2.4M during the fiscal years ended September 30, 2023 and 2022, respectively. There were no sales to Canada for ES during the fiscal year ended September 30, 2024.

(2)The amortization of acquired wholesale energy contracts is excluded above and is included in natural gas purchases - nonutility on the Consolidated Statements of Operations.

(3)Included in other income, net on the Consolidated Statements of Operations.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

The Company’s assets at end of period for the various reporting segments and other business operations, as of September 30, are detailed below:

	Segments								Intercompany
(Thousands)	NJNG		CEV	ES	S&T	Subtotal		HSO	Assets (1)	Total
2024	$	4,789,835	1,157,573	108,710	1,025,457	$	7,081,575	159,444	(259,374)	$	6,981,645
2023	$	4,414,829	1,128,577	123,775	1,011,959	$	6,679,140	171,275	(312,919)	$	6,537,496
2022	$	4,030,686	1,015,065	333,064	999,520	$	6,378,335	159,068	(275,987)	$	6,261,416

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

The CEO, who uses NFE as a measure of profit or loss in measuring the results of the Company’s reporting segments and other business operations, is the chief operating decision maker of the Company. A reconciliation of consolidated NFE to consolidated net income, as of September 30, is as follows:

(Thousands)	2024		2023		2022
Net financial earnings	$	290,828	$	261,827	$	240,321
Less:
Unrealized loss (gain) on derivative instruments and related transactions	19,574		(38,081)		(59,906)
Tax effect	(4,652)		9,050		14,248
Effects of economic hedging related to natural gas inventory	(18,192)		34,699		19,939
Tax effect	4,323		(8,246)		(4,738)
Gain on equity method investment	—		(300)		(5,521)
Tax effect	—		(19)		1,377
Net income	$	289,775	$	264,724	$	274,922

The Company uses derivative instruments as economic hedges of purchases and sales of physical natural gas inventory. For GAAP purposes, these derivatives are recorded at fair value and related changes in fair value are included in reported earnings. Revenues and cost of natural gas related to physical natural gas flow are recognized when the natural gas is delivered to customers. Consequently, there is a mismatch in the timing of earnings recognition between the economic hedges and physical natural gas flows. Timing differences occur in two ways:

•unrealized gains and losses on derivatives are recognized in reported earnings in periods prior to physical natural gas inventory flows; and

•unrealized gains and losses of prior periods are reclassified as realized gains and losses when derivatives are settled in the same period as physical natural gas inventory movements occur.

NFE is a measure of the earnings based on eliminating these timing differences, to effectively match the earnings effects of the economic hedges with the physical sale of natural gas, SRECs and foreign currency contracts. Consequently, to reconcile between net income and NFE, current-period unrealized gains and losses on the derivatives are excluded from NFE as a reconciling item. Realized derivative gains and losses are also included in current-period net income. However, NFE includes only realized gains and losses related to natural gas sold out of inventory, effectively matching the full earnings effects of the derivatives with realized margins on physical natural gas flows. NFE also excludes certain transactions associated with equity method investments, including impairment charges, which are non-cash charges, and return of capital in excess of the carrying value of our investment. These are considered unusual in nature and occur infrequently such that they are not indicative of the Company’s performance for its ongoing operations. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE.

16. RELATED PARTY TRANSACTIONS

In April 2020, NJNG entered into a five-year agreement for 3 Bcf of firm storage capacity with Steckman Ridge, which expires on March 31, 2025. Under the terms of the agreement, NJNG incurs demand fees, at market rates, of approximately $9.3M annually, a portion of which is eliminated in consolidation. These fees are recoverable through NJNG’s BGSS mechanism and are included as a component of regulatory assets.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA (Continued)                                                        

ES may periodically enter into storage or park and loan agreements with its affiliated FERC-jurisdictional natural gas storage facility, Steckman Ridge. As of September 30, 2024, ES entered into transactions with Steckman Ridge for varying terms, all of which expire by March 31, 2027.

Demand fees, net of eliminations, associated with Steckman Ridge during the fiscal years ended September 30, were as follows:

(Thousands)	2024		2023		2022
NJNG	$	6,319	$	6,549	$	6,663
ES	828		657		732
Total	$	7,147	$	7,206	$	7,395

The following table summarizes demand fees payable to Steckman Ridge as of September 30:

(Thousands)	2024		2023
NJNG	$	775	$	775
ES	100		84
Total	$	875	$	859

NJNG and ES enter into various AMAs, the effects of which are eliminated in consolidation. Under the terms of these AMAs, NJNG releases certain transportation and storage contracts to ES. NJNG and ES had one AMA, which expired on March 31, 2024, and was not renewed.

NJNG entered into two transportation agreements with Adelphia, each for committed capacity of 130,000 Dths per day. The first is for five years in Zone South with an expiration date of August 8, 2027, and the second is for 15 years in Zone North, with an expiration date of October 31, 2038.

ES had a five-year agreement for 3 Bcf of firm storage capacity with Leaf River, the effects of which were eliminated in consolidation. The agreement expired on March 31, 2024, and was not renewed.

NJNG and CEV entered into a 15-year sublease and PPA related to an onsite solar array and the related energy output at the Company’s headquarters in Wall, New Jersey, with an expiration date of March 1, 2036, the effects of which are immaterial to the consolidated financial statements.

NJNG entered into 16-year lease agreements, as Lessor, with various NJR subsidiaries, as Lessees, for office space at the Company’s headquarters in Wall, New Jersey, with an expiration date of July 1, 2037, the effects of which are eliminated in consolidation.

NJNG and CEV entered into a 20-year sublease and PPA related to an onsite solar array and the related energy output at the Company’s LNG plant in Howell, New Jersey, with an expiration date of June 1, 2042, the effects of which are immaterial to the consolidated financial statements.

The intercompany profits for certain transactions between NJNG and ES and NJNG and Adelphia are not eliminated in accordance with ASC 980, Regulated Operations.

17. SUBSEQUENT EVENT

On November 25, 2024, CEV completed the sale of its residential solar portfolio and related assets and liabilities included in The Sunlight Advantage® program to a third party for a total purchase price of $132.5M. The transaction is expected to generate a pre-tax gain of approximately $45M to $60M, which will be recognized in the Consolidated Statements of Operations in the first quarter of fiscal 2025.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL

DISCLOSURE                                                                                                                                                                                   

None

ITEM 9A. CONTROLS AND PROCEDURES                                                                                                                             

Disclosure Controls and Procedures

Under the supervision and with the participation of the Company’s management, including the principal executive officer and principal financial officer, the Company conducted an evaluation of the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), as of the end of the period covered by this report. Based on this evaluation, the Company’s principal executive officer and principal financial officer concluded that, as of end of the period covered by this report, the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Management’s Annual Report on Internal Control over Financial Reporting

The report of management required under this Item 9A is contained in Item 8 of this Form 10-K under the caption Management’s Report on Internal Control over Financial Reporting.

Attestation Report of Registered Public Accounting Firm

The attestation report required under this Item 9A is contained in Item 8 of this Form 10-K under the caption Report of Independent Registered Public Accounting Firm.

Changes in Internal Control over Financial Reporting

We periodically review our internal controls over financial reporting as part of our efforts to ensure compliance with the requirements of Section 404 of the Sarbanes-Oxley Act of 2002. In addition, we routinely review our system of internal controls over financial reporting to identify potential changes to our processes and systems that may improve controls and increase efficiency, while ensuring that we maintain an effective internal controls environment. There were no changes in our internal controls over financial reporting that occurred during the quarter ended September 30, 2024, that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

ITEM 9B. OTHER INFORMATION                                                                                                                                            

During the three months ended September 30, 2024, no director or officer (as defined by Rule 16a-1(f) of the Exchange Act) of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

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Part III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE                                         

Information required by this item, including information concerning the Board of Directors of the Company, the members of the Company’s Audit Committee, the Company’s Audit Committee Financial Expert, compliance with Section 16(a) of the Exchange Act and shareowner proposals, is incorporated by reference to the Company’s Proxy Statement for the 2025 Annual Meeting of Shareowners, which will be filed with the SEC pursuant to Regulation 14A within 120 days after September 30, 2024. The information regarding executive officers is included in this report as Item 1 under the caption Information About our Executive Officers and incorporated herein by reference.

The Board of Directors has adopted the Code of Conduct, a code for all directors, officers and employees, as required by the New York Stock Exchange rules, and governing the CEO and senior financial officers, in compliance with Sarbanes-Oxley and SEC regulations. Copies of the Code of Conduct are available on the Company’s website at http://investor.njresources.com under the caption Corporate Governance. A printed copy of the Code of Conduct is available free of charge to any shareowner who requests it by contacting the Corporate Secretary at 1415 Wyckoff Road, Wall, New Jersey 07719. The Company will disclose any amendments to, or waivers from, a provision of the Code of Conduct that applies to the principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions that relate to any element of the Code of Conduct as defined in Item 406 of Regulation S-K by posting such information on the Company’s website.

ITEM 11. EXECUTIVE COMPENSATION                                                                                                                               

Information required by this Item is incorporated by reference from the Registrant’s Proxy Statement.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND

RELATED STOCKHOLDER MATTERS                                                                                                                                    

Information required by this Item is incorporated by reference from the Registrant’s Proxy Statement.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE      

Information required by this Item is incorporated by reference from the Registrant’s Proxy Statement.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES                                                                                             

Information required by this Item is incorporated by reference from the Registrant’s Proxy Statement.

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ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES                                                                                  

(a) 1. Financial Statements.
All Financial Statements of the Registrant are filed as part of this report and included in Item 8 of Part II of this Form 10-K.
(a) 2. Financial Statement Schedules-See Index to Financial Statement Schedules in Item 8.
(a) 3. Exhibits-See Exhibit Index on page	123.

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INDEX TO FINANCIAL STATEMENT SCHEDULES                                                                                                              

	Page
Schedule II - Valuation and qualifying accounts and reserves for each of the three years in the period ended September 30, 2024	122

Schedules other than those listed above are omitted because they are either not required or are not applicable, or the required information is shown in the financial statements or notes thereto.

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SCHEDULE II

VALUATION AND QUALIFYING ACCOUNTS

YEARS ENDED SEPTEMBER 30, 2024, 2023 and 2022

(Thousands)			ADDITIONS/ (DEDUCTIONS), NET TO EXPENSE
CLASSIFICATION	BEGINNING BALANCE				OTHER		ENDING BALANCE
2024
Valuation allowance for deferred tax assets	$	5,747	(126)		—		$	5,621
Allowance for doubtful accounts	$	11,036	1,229		(3,759)	(2)	$	8,506
2023
Valuation allowance for deferred tax assets	$	22,241	(16,494)	(1)	—		$	5,747
Allowance for doubtful accounts	$	19,379	1,570		(9,913)	(2)	$	11,036
2022
Valuation allowance for deferred tax assets	$	23,613	(1,372)		—		$	22,241
Allowance for doubtful accounts	$	24,652	2,401		(7,674)	(2)	$	19,379

(1)Includes valuation allowance release. See Note 12. Income Taxes for more details.

(2)Uncollectible accounts written off, less recoveries and adjustments.

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EXHIBIT INDEX

Exhibit Number	Exhibit Description
3.1	Restated Certificate of Incorporation of New Jersey Resources Corporation, as amended through March 3, 2015 (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K, as filed on January 23, 2014, and Exhibit 3.1 to the Current Report on Form 8-K, as filed on March 3, 2015)
3.2	Bylaws of New Jersey Resources Corporation, as amended and restated on July 11, 2024 (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K, as filed on July 15, 2024)
4.1	Description of Common Stock (incorporated by reference to Exhibit 4.1 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2019, as filed on November 22, 2019)
4.2	Specimen Common Stock Certificate (incorporated by reference to Exhibit 4.1 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2013, as filed on November 25, 2013)
4.3	Amended and Restated Indenture of Mortgage, Deed of Trust and Security Agreement, dated as of September 1, 2014, between NJNG and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 99.3 to the Current Report on Form 8-K, as filed on September 30, 2014)
4.3(a)	36th Supplemental Indenture dated as of September 1, 2014, between NJNG and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 99.2 to the Current Report on Form 8-K, as filed on September 30, 2014)
4.3(b)	First Supplemental Indenture dated as of April 1, 2015 between NJNG and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.2 to the Quarterly Report on Form 10-Q, as filed on May 7, 2015)
4.3(c)	Second Supplemental Indenture dated as of June 1, 2016, between New Jersey Natural Gas Company and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.2 to Form 8-K as filed on June 22, 2016)
4.3(d)	Third Supplemental Indenture, dated as of May 1, 2018, by and between New Jersey Natural Gas Company and U.S. Bank National Association (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, as filed on May 11, 2018)
4.3(e)	Fourth Supplemental Indenture, dated as of April 1, 2019, between NJNG and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.4 to the Quarterly Report on Form 10-Q, as filed on May 3, 2019)
4.3(f)	Fifth Supplemental Indenture, dated as of July 1, 2019, by and between New Jersey Natural Gas Company and the Purchasers party thereto (incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K, as filed on July 17, 2019)
4.3(g)	Sixth Supplemental Indenture, dated as of August 1, 2019, between NJNG and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.3(g) to the Annual Report on Form 10-K for the fiscal year ended September 30, 2019, as filed on November 22, 2019)
4.3(h)	Seventh Supplemental Indenture, dated as of June 1, 2020, between NJNG and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on July 2, 2020)
4.3(i)	Eighth Supplemental Indenture, dated as of July 1, 2020, between NJNG and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on July 23, 2020)
4.3(j)	Ninth Supplemental Indenture, dated as of August 1, 2020, between NJNG and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K, as filed on September 2, 2020)
4.3(k)	Tenth Supplemental Indenture, dated as of October 1, 2021, by and between New Jersey Natural Gas Company and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, as filed on November 3, 2021)
4.3(l)	Eleventh Supplemental Indenture, dated as of May 1, 2022, by and between New Jersey Natural Gas Company and U.S. Bank Trust Company, National Association, as Trustee (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, as filed on June 1, 2022)
4.3(m)	Twelfth Supplemental Indenture, dated as of October 1, 2022, by and between New Jersey Natural Gas Company and U.S. Bank Trust Company, National Association, as Trustee (incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K, as filed on October 28, 2022)

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Exhibit Number	Exhibit Description
4.3(n)	Thirteenth Supplemental Indenture, dated as of September 1, 2023, by and between New Jersey Natural Gas Company and U.S. Bank Trust Company, National Association, as Trustee (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, as filed on October 2, 2023)
4.3(o)	Fourteenth Supplemental Indenture, dated as of October 1, 2023, by and between New Jersey Natural Gas Company and U.S. Bank Trust Company, National Association, as Trustee (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on October 31, 2023)
4.3(p)	Fifteenth Supplemental Indenture, dated as of June 1, 2024, by and between New Jersey Natural Gas Company and U.S. Bank Trust Company, National Association, as Trustee (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, as filed on July 1, 2024)
4.3(q)	Sixteenth Supplemental Indenture, dated as of September 1, 2024, by and between New Jersey Natural Gas Company and U.S. Bank Trust Company, National Association, as Trustee (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on October 2, 2024)
4.4	$75,000,000 Shelf Note Purchase Agreement, dated as of June 30, 2011, between New Jersey Resources Corporation and Prudential Investment Management, Inc. (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K as filed on July 6, 2011)
4.4(a)	First Amendment to Shelf Note Purchase Agreement dated as of June 30, 2011, dated as of July 25, 2014, between New Jersey Resources Corporation, Prudential Investment Management, Inc., each Guarantor signatory thereto, and each Noteholder party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K as filed on November 12, 2014)
4.4(b)	Second Amendment to Shelf Note Purchase Agreement dated as of June 30, 2011, dated as of September 28, 2015, between New Jersey Resources Corporation and Prudential Investment Management, Inc., each Guarantor signatory thereto, and each Noteholder party thereto (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K as filed on October 2, 2015)
4.4(c)	Third Amendment to the Shelf Note Purchase Agreement dated as of June 30, 2011, dated as of November 1, 2021 among New Jersey Resources Corporation, PGIM, Inc. (formerly Prudential Investment Management, Inc.), each Guarantor signatory thereto, and each Noteholder party thereto (incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K, as filed on November 3, 2021)
4.4(d)	Fourth Amendment to the Shelf Note Purchase Agreement dated as of June 30, 2011, dated as of September 16, 2022, among New Jersey Resources Corporation, PGIM, Inc. (formerly Prudential Investment Management, Inc.), each Guarantor signatory thereto, and each Noteholder party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K as filed on September 20, 2022)
4.5	$125,000,000 Note Purchase Agreement, dated as of February 7, 2014, by and among New Jersey Natural Gas Company and the Purchasers party thereto (incorporated by reference to Exhibit 4.5 to the Quarterly Report on Form 10-Q, as filed on May 7, 2014)
4.6	Loan Agreement dated as of August 1, 2011, between New Jersey Economic Development Authority and New Jersey Natural Gas Company (incorporated by reference to Exhibit 4.10 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2011, as filed on November 23, 2011)
4.7	First Amendment to the Loan Agreement, dated as of August 1, 2019, between NJNG and New Jersey Economic Development Authority (incorporated by reference to Exhibit 4.7 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2019, as filed on November 22, 2019)
4.8	First Supplemental Indenture, dated as of August 1, 2019, between NJNG and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.8 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2019, as filed on November 22, 2019)
4.9	$50,000,000 Note Purchase Agreement, dated as of February 8, 2013, by and among New Jersey Natural Gas Company and the Purchasers party thereto (incorporated by reference to Exhibit 4.12 to the Quarterly Report on Form 10-Q, as filed on May 3, 2013)
4.10	$150,000,000 Note Purchase Agreement, dated as of February 12, 2015, by and among New Jersey Natural Gas Company and the Purchasers party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on February 17, 2015)

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Exhibit Number	Exhibit Description
4.11	Note Purchase Agreement, dated as of March 22, 2016, among New Jersey Resources Corporation and each of the Purchasers listed in Schedule A thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on March 25, 2016)
4.12	$125,000,000 Note Purchase Agreement, dated as of June 21, 2016, by and among New Jersey Natural Gas Company and the Purchasers party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on June 22, 2016)
4.13	$125,000,000 Note Purchase Agreement, dated as of May 11, 2018, by and among New Jersey Natural Gas Company and the Purchasers party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on May 11, 2018)
4.14	$100,000,000 Note Purchase Agreement, dated as of June 8, 2018, by and among New Jersey Resources Corporation and the Purchasers party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on June 8, 2018)
4.15	Amended and Restated Indenture, dated as of April 1, 2019, between NJNG and New Jersey Economic Development Authority and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.1 to the Quarterly Report on Form 10-Q, as filed on May 3, 2019)
4.16	Second Amendment to the Loan Agreement, dated as of April 1, 2019, between NJNG and New Jersey Economic Development Authority (incorporated by reference to Exhibit 4.2 to the Quarterly Report on Form 10-Q, as filed on May 3, 2019)
4.17	Amended and Restated Continuing Disclosure Undertaking, dated as of April 18, 2019, by New Jersey Natural Gas Company (incorporated by reference to Exhibit 4.3 to the Quarterly Report on Form 10-Q, as filed on May 3, 2019)
4.18	$150,000,000 Note Purchase Agreement, dated as of July 17, 2019, by and among New Jersey Resources Corporation and the Purchasers party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on July 17, 2019)
4.19	$185,000,000 Note Purchase Agreement, dated as of July 17, 2019, by and among New Jersey Natural Gas Company and the Purchasers party thereto (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, as filed on July 17, 2019)
4.20	Amended and Restated Continuing Disclosure Undertaking, dated as of August 22, 2019, by New Jersey Natural Gas Company (incorporated by reference to Exhibit 4.20 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2019, as filed on November 22, 2019)
4.21	$260,000,000 Note Purchase Agreement, dated as of May 14, 2020, by and among New Jersey Resources Corporation and the Purchasers party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on May 18, 2020)

4.22	$125,000,000 Note Purchase Agreement, dated as of May 14, 2020, by and among New Jersey Natural Gas Company and the Purchasers party thereto (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, as filed on May 18, 2020)
4.23	$200,000,000 Note Purchase Agreement, dated as of September 1, 2020, by and among New Jersey Resources Corporation and the Purchasers party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on September 2, 2020)
4.24	$75,000,000 Note Purchase Agreement, dated as of September 1, 2020, by and among New Jersey Natural Gas Company and the Purchasers party thereto (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, as filed on September 2, 2020)
4.25	$100,000,000 Note Purchase Agreement, dated as of October 28, 2021, by and among New Jersey Natural Gas Company and the Purchasers party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on November 3, 2021)
4.26	First Amendment to the Note Purchase Agreement dated as of March 22, 2016, dated as of November 1, 2021 among New Jersey Resources Corporation, each Guarantor signatory thereto, and each Noteholder party thereto (incorporated by reference to Exhibit 4.4 to the Current Report on Form 8-K, as filed on November 3, 2021)

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Exhibit Number	Exhibit Description
4.27	First Amendment to the Note Purchase Agreement dated as of June 8, 2018, dated as of November 1, 2021 among New Jersey Resources Corporation, each Guarantor signatory thereto, and each Noteholder party thereto (incorporated by reference to Exhibit 4.5 to the Current Report on Form 8-K, as filed on November 3, 2021)
4.28	First Amendment to the Note Purchase Agreement dated as of July 17, 2019, dated as of November 1, 2021 among New Jersey Resources Corporation, each Guarantor signatory thereto, and each Noteholder party thereto (incorporated by reference to Exhibit 4.6 to the Current Report on Form 8-K, as filed on November 3, 2021)
4.29	First Amendment to the Note Purchase Agreement dated as of May 14, 2020, dated as of November 1, 2021 among New Jersey Resources Corporation, each Guarantor signatory thereto, and each Noteholder party thereto (incorporated by reference to Exhibit 4.7 to the Current Report on Form 8-K, as filed on November 3, 2021)
4.30	First Amendment to the Note Purchase Agreement dated as of September 1, 2020, dated as of November 1, 2021 among New Jersey Resources Corporation, each Guarantor signatory thereto, and each Noteholder party thereto (incorporated by reference to Exhibit 4.8 to the Current Report on Form 8-K, as filed on November 3, 2021)
4.31	$100,000,000 Note Purchase Agreement, dated as of May 27, 2022, by and among New Jersey Natural Gas Company and the Purchasers party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on June 1, 2022)
4.32	$110,000,000 Note Purchase Agreement, dated as of June 23, 2022, by and among New Jersey Resources Corporation and the Purchasers party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on June 27, 2022)
4.33	$125,000,000 Note Purchase Agreement, dated as of October 24, 2022, by and among New Jersey Natural Gas Company and the Purchasers party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on October 28, 2022)
4.34	$50,000,000 Note Purchase Agreement, dated as of October 24, 2022, by and among New Jersey Resources Corporation and the Purchasers party thereto (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, as filed on October 28, 2022)
4.35	$100,000,000 Note Purchase Agreement, dated as of September 28, 2023, by and among New Jersey Natural Gas Company and the Purchasers party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on October 2, 2023)
4.36	$200,000,000 Note Purchase Agreement, dated June 26, 2024, by and among New Jersey Natural Gas Company and the Purchasers party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on July 1, 2024)
4.37	$100,000,000 Note Purchase Agreement, dated November 7, 2024, by and among New Jersey Resources Corporation and the Purchasers party thereto (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, as filed on November 12, 2024)
10.1*	Form of Amended and Restated Supplemental Executive Retirement Plan Agreement between the Company and Named Executive Officer (incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as filed on November 30, 2020)
10.1(a)*	Schedule of Supplemental Executive Retirement Plan Agreements for named executive officers (incorporated by reference to Exhibit 10.1(a) to the Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as filed on November 30, 2020)
10.2	Service Agreement for Rate Schedule SS-1 by and between NJNG and Texas Eastern Transmission Company, dated as of June 21, 1995 (incorporated by reference to Exhibit 10-5B to the Annual Report on Form 10-K for the fiscal year ended September 30, 1996, as filed on December 30, 1996)
10.3+*	Summary of 2024 Non-Employee Director Compensation Plan
10.4*	The Company’s 2017 Stock Award and Incentive Plan (incorporated by reference to Appendix A to the Proxy Statement for the 2017 Annual Meeting as filed on December 15, 2016)
10.5*	New Jersey Resources Savings Equalization Plan (as amended and restated as of November 16, 2020) (incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as filed on November 30, 2020)

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Exhibit Number	Exhibit Description
10.6*	New Jersey Resources Pension Equalization Plan (as amended and restated as of November 16, 2020) (incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as filed on November 30, 2020)
10.7*	New Jersey Resources Corporation Officers’ Deferred Compensation Plan (as amended and restated on November 16, 2020) (incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as filed on November 30, 2020)
10.8*	Amended and Restated New Jersey Resources Corporation Directors’ Deferred Compensation Plan (amended and restated as of November 16, 2020) (incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as filed on November 30, 2020)
10.9*	Form of Amended and Restated Employment Continuation Agreement between New Jersey Resources Corporation and named executive officer (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, as filed on November 18, 2019)
10.9(a)*	Schedule of Employee Continuation Agreements (incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as filed on November 30, 2020)
10.9(b)*	Form of Amended and Restated Employment Continuation Agreement for officers of NJR Energy Services Company dated as of November 12, 2019 (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K, as filed on November 18, 2019)
10.10*	Limited Liability Company Agreement of Steckman Ridge GP, LLC, dated as of March 2, 2007 (incorporated by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q, as filed on May 3, 2007)
10.11*	Limited Partnership Agreement of Steckman Ridge, LP dated as of March 2, 2007 (incorporated by reference to Exhibit 10.2 to the Quarterly Report on Form 10-Q, as filed on May 3, 2007)
10.12*	New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Restricted Stock Units Agreement Fiscal Year 2020 (incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as filed on November 30, 2020)
10.13*	New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance Share Units Agreement - Total Shareholder Return Fiscal Year 2020 (incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as filed on November 30, 2020)
10.14*	New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance Share Units Agreement - NFE Fiscal Year 2020 (incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as filed on November 30, 2020)
10.15*	New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance-Based Restricted Stock Unit Agreement Fiscal Year 2020 (incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as filed on November 30, 2020)
10.16*	New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Deferred Retention Stock Award Agreement Fiscal Year 2020 (incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2020, as filed on November 30, 2020)
10.17*	2017 Stock Award and Incentive Plan Form of Director Restricted Stock Units Agreement (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K, as filed on January 23, 2020)
10.18*	New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Restricted Stock Units Agreement Fiscal Year 2021 (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K, as filed on November 13, 2020)
10.19*	New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance Share Units Agreement - Total Shareholder Return Fiscal Year 2021 (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, as filed on November 13, 2020)
10.20*	New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance Share Units Agreement - NFE Fiscal Year 2021 (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K, as filed on November 13, 2020)
10.21*	New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance-Based Restricted Stock Unit Agreement Fiscal Year 2021 (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K, as filed on November 13, 2020)

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Exhibit Number	Exhibit Description
10.22*	New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Restricted Stock Units Agreement Fiscal Year 2022 (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K, as filed on November 15, 2021)
10.23*	New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance Share Units Agreement - Total Shareholder Return Fiscal Year 2022 (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, as filed on November 15, 2021)
10.24*	New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance Share Units Agreement - NFE Fiscal Year 2022 (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K, as filed on November 15, 2021)
10.25*	New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance-Based Restricted Stock Unit Agreement Fiscal Year 2022 (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K, as filed on November 15, 2021)
10.26*	Incentive Award Agreement, by and between New Jersey Resources Corporation and Timothy F. Shea, dated as of January 26, 2022 (incorporated by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q, as filed on February 3, 2022)
10.27*	New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Restricted Stock Units Agreement Fiscal Year 2023 (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K, as filed on November 17, 2022)
10.28*	New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance Share Units Agreement - Total Shareholder Return Fiscal Year 2023 (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, as filed on November 17, 2022)
10.29*	New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance Share Units Agreement - NFE Fiscal Year 2023 (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K, as filed on November 17, 2022)
10.30*	New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance-Based Restricted Stock Units Agreement Fiscal Year 2023 (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K, as filed on November 17, 2022)
10.31*	New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Restricted Stock Units Agreement Fiscal Year 2024 (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K, as filed on November 21, 2023)
10.32*	New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance Share Units Agreement - Total Shareholder Return Fiscal Year 2024 (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, as filed on November 21, 2023)
10.33*	New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance Share Units Agreement - NFE Fiscal Year 2024 (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K, as filed on November 21, 2023)
10.34*	New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Restricted Stock Units Agreement Fiscal Year 2024 (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K, as filed on November 21, 2023)
10.35*	New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Restricted Stock Units Agreement Fiscal Year 2025 (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K, as filed on November 12, 2024)
10.36*	New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance Share Units Agreement - Total Shareholder Return Fiscal Year 2025 (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, as filed on November 12, 2024)
10.37*	New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Performance Share Units Agreement - NFE Fiscal Year 2025 (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K, as filed on November 12, 2024)
10.38*	New Jersey Resources Corporation 2017 Stock Award and Incentive Plan Restricted Stock Units Agreement Fiscal Year 2025 (incorporated by reference to Exhibit 10.4 to the Current Report on Form 8-K, as filed on November 12, 2024)

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Exhibit Number	Exhibit Description
10.39*	$500,000,000 Second Amended and Restated Credit Agreement, dated as of September 2, 2021, by and among New Jersey Resources Corporation, the guarantors thereto, the lenders party thereto, PNC Bank, National Association, as Administrative Agent, JPMorgan Chase Bank, N.A., Wells Fargo Bank, National Association and Mizuho Bank, Ltd., as Syndication Agents, and U.S. Bank National Association, Bank of America, N.A., TD Bank, N.A. and The Bank of Nova Scotia, as Documentation Agents (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, as filed on September 9, 2021)
10.40*	$250,000,000 Second Amended and Restated Credit Agreement dated as of September 2, 2021, by and among New Jersey Natural Gas Company, the lenders party thereto, PNC Bank, National Association, as Administrative Agent, JPMorgan Chase Bank, N.A., Wells Fargo Bank, National Association and Mizuho Bank, Ltd., as Syndication Agents, and U.S. Bank National Association, Bank of America, N.A., TD Bank, N.A., and The Bank of Nova Scotia, as Documentation Agents (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K, as filed on September 9, 2021)
10.41*	First Amendment to Second Amended and Restated Credit Agreement, dated as of August 30, 2022, by and among NJR, the guarantors thereto, the lenders party thereto and PNC Bank, National Association, as Administrative Agent (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, as filed on September 6, 2022)
10.42*	First Amendment to Second Amended and Restated Credit Agreement dated as of August 30, 2022, by and among NJNG, the lenders party thereto and PNC Bank, National Association, as Administrative Agent (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K, as filed on September 6, 2022)
10.43*	Second Amendment to Second Amended and Restated Credit Agreement, dated as of August 7, 2024, NJR, the guarantors thereto, the lenders party thereto and PNC Bank, National Association, as Administrative Agent (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, as filed on August 9, 2024)
10.44*	Second Amendment to Second Amended and Restated Credit Agreement dated as of August 7, 2024, by and among NJNG, the lenders party thereto and PNC Bank, National Association, as Administrative Agent (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K, as filed on August 9, 2024)
10.45+**	Asset Purchase Agreement, between NJR Clean Energy Ventures II Corporation and Spruce Power 5, LLC, dated as of November 25, 2024
19.1+	Insider Trading Policy
21.1+	Subsidiaries of the Registrant
23.1+	Consent of Independent Registered Public Accounting Firm
31.1+	Certification of the Chief Executive Officer pursuant to section 302 of the Sarbanes-Oxley Act
31.2+	Certification of the Chief Financial Officer pursuant to section 302 of the Sarbanes-Oxley Act
32.1+ †	Certification of the Chief Executive Officer pursuant to section 906 of the Sarbanes-Oxley Act
32.2+ †	Certification of the Chief Financial Officer pursuant to section 906 of the Sarbanes-Oxley Act
97	Dodd-Frank Clawback Policy (incorporated by reference to Exhibit 97 to the Annual Report on Form 10-K for the fiscal year ended September 30, 2023, as filed on November 21, 2023)
101+	Interactive Data File {Annual Report on Form 10-K, for the fiscal year ended September 30, 2024, furnished in iXBRL (Inline eXtensible Business Reporting Language)}
104+	Cover Page Interactive Data File included in Exhibit 101

________________________________

+    Filed herewith.

*    Denotes compensatory plans or arrangements or management contracts.

**    Schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K. NJR agrees to furnish the omitted schedules supplementally to the SEC upon request by the SEC.

†    This certificate accompanies this report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed by NJR for purposes of Section 18 or any other provision of the Exchange Act.

Page 129

New Jersey Resources Corporation

Part IV

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		NEW JERSEY RESOURCES CORPORATION
		(Registrant)
Date:	November 26, 2024	By:/s/ Stephen M. Skrocki
		Stephen M. Skrocki
		Corporate Controller (Principal Accounting Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant in the capacities and on the dates indicated:

November 26, 2024	/s/ Stephen D. Westhoven	November 26, 2024	/s/ Roberto Bel
	Stephen D. Westhoven President and Chief Executive Officer Director (Principal Executive Officer)		Roberto Bel Senior Vice President and Chief Financial Officer (Principal Financial Officer)
November 26, 2024	/s/ Stephen M. Skrocki	November 26, 2024	/s/ Peter C. Harvey
	Stephen M. Skrocki Corporate Controller (Principal Accounting Officer)		Peter C. Harvey Director
November 26, 2024	/s/ Donald L. Correll	November 26, 2024	/s/ Jane M. Kenny
	Donald L. Correll Chairman		Jane M. Kenny Director
November 26, 2024	/s/ Gregory E. Aliff	November 26, 2024	/s/ Thomas C. O’Connor
	Gregory E. Aliff Director		Thomas C. O’Connor Director
November 26, 2024	/s/ James H. DeGraffenreidt, Jr.	November 26, 2024	/s/ Michael O’Sullivan
	James H. DeGraffenreidt, Jr. Director		Michael O’Sullivan Director
November 26, 2024	/s/ M. Susan Hardwick	November 26, 2024	/s/ Sharon C. Taylor
	M. Susan Hardwick Director		Sharon C. Taylor Director

Page 130

EX-10.3

Exhibit 10.3

Summary of Non-Employee Director Compensation Effective January 2024

Annual Retainer for NJR Board:
Annual Cash Retainer Fee1	$89,000
Annual Restricted Stock Unit (“RSU”) Retainer (in common stock equivalent)2	$130,000
Non-Executive Chair – Additional Annual Cash Retainer1	$50,000
Non-Executive Chair – Additional RSU Retainer2	$50,000
Annual Retainer for Committee Members1:
Audit Committee	$13,000
Leadership Development and Compensation Committee	$7,000
Nominating/Corporate Governance Committee	$7,000
Additional Annual Retainer for Committee Chairs1:
Audit Committee	$15,000
Leadership Development and Compensation Committee	$15,000
Nominating/Corporate Governance Committee	$15,000
New Jersey Natural Gas Company (“NJNG”) Board Retainers1:
Annual Retainer – NJNG Board Member	$9,000
Additional Annual Retainer – NJNG Board Chair*	$15,000

In the event of extraordinary circumstances resulting in an excessive number of Board or Committee meetings beyond the typical number of meetings of a Board or Committee in a given year, the Board retains discretion to pay an additional per meeting fee of $1,500 to each attending non-employee director that is a member of such Board or Committee.

1    Cash Retainers will be paid in two equal semi-annual installments as soon as practicable after the annual meeting of shareowners and the July Board of Directors meetings.

2    Grants of the annual equity retainer in the form of restricted stock units (RSUs) will be made at the time of the annual meeting of shareowners. The number of RSUs will be based upon the closing price of a share of the Company’s common stock on the date of the grant. The RSUs will accrue dividends and will vest on the earlier of (i) the first anniversary of the grant date or (ii) the date of the following annual meeting of shareowners. The RSUs will be prorated through a director's termination date if a director leaves the Board before the RSUs have vested. Upon vesting, the RSUs and accrued dividends will be converted into shares of NJR common stock. The cash and equity retainers are pro-rated for directors who serve only a portion of the year.

*    This additional retainer will only be paid if the Chair of the New Jersey Natural Gas Company Board is a different person than the Chair of the New Jersey Resources Corporation Board.

EX-10.45

Execution

ASSET PURCHASE AGREEMENT

BY AND BETWEEN

NJR CLEAN ENERGY VENTURES II CORPORATION,

AS SELLER,

AND

SPRUCE POWER 5, LLC,

AS BUYER,

DATED AS OF NOVEMBER 22, 2024

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TABLE OF CONTENTS

Page

Section 1.1.Definitions    1

ARTICLE 2 PURCHASE AND SALE    11

Section 2.1.Purchase and Sale of the Acquired Assets and Assumption of the Assumed Liabilities    11

Section 2.2.Closing of the Transactions    16

Section 2.3.Payment of Purchase Price at the Closing    16

Section 2.4.Post-Closing Purchase Price True-Up    16

Section 2.5.Allocation of Final Purchase Price    17

Section 2.6.Assignment of Acquired Assets.    18

Section 2.7.Leaseback    19

Section 2.8.Withholding    19

ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF SELLER    19

Section 3.1.Organization and Qualification.    19

Section 3.2.Authority    19

Section 3.3.No Undisclosed Liabilities    20

Section 3.4.Consents and Approvals; No Violations.    20

Section 3.5.Material Contracts.    20

Section 3.6.Absence of Changes    21

Section 3.7.Litigation    22

Section 3.8.Permits; Compliance with Applicable Law.    22

Section 3.9.Regulatory Status    23

Section 3.10.Projects.    23

Section 3.11.Environmental Matters    24

Section 3.12.Insurance.    24

Section 3.13.Tax Matters.    24

Section 3.14.Brokers    26

Section 3.15.Real and Personal Property; Title to and Sufficiency of Acquired Assets.    26

Section 3.16.Transactions with Affiliates    26

Section 3.17.Third Party Use of Databases    26

Section 3.18.Business Accounts Receivable    26

Section 3.19.Inventory    27

Section 3.20.Solar Assets    27

Section 3.21.Certain Payments    29

Section 3.22.No Other Representations    29

Section 3.23.Limited Guaranty    29

Section 3.24.EXCLUSIVITY OF REPRESENTATIONS AND WARRANTIES    29

ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF BUYER    30

Section 4.1.Organization    30

Section 4.2.Authority    30

Section 4.3.Consents and Approvals; No Violations.    30

Section 4.4.Litigation    31

Section 4.5.Brokers    31

Section 4.6.Solvency    31

Section 4.7.No Other Representations    31

Section 4.8.Investigation    31

Section 4.9.EXCLUSIVITY OF REPRESENTATIONS AND WARRANTIES    32

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TABLE OF CONTENTS
(continued)

Page

ARTICLE 5 COVENANTS    32

Section 5.1.Public Announcements    32

Section 5.2.Post-Closing Access to Records; Retention of Records.    33

Section 5.3.Use of Names    33

Section 5.4.Tax Matters.    34

Section 5.5.Further Assurances    36

Section 5.6.Cooperation in Litigation    36

Section 5.7.Standstill    37

Section 5.8.Post-Closing Payments    37

Section 5.9.Post-Closing Purchase and Sale of SRECs    37

Section 5.10.Post-Closing Sale of Additional Projects    38

Section 5.11.Delivery of Abbreviated Audited Financial Statements    39

ARTICLE 6 CLOSING DELIVERABLES    39

Section 6.1.Seller Closing Deliverables    39

Section 6.2.Buyer Closing Deliverables    40

ARTICLE 7 SURVIVAL OF REPRESENTATIONS, WARRANTIES AND COVENANTS; INDEMNIFICATION    40

Section 7.1.Survival.    40

Section 7.2.Indemnification by Seller    41

Section 7.3.Indemnification by Buyer    41

Section 7.4.Limitations on Rights of Indemnification.    41

Section 7.5.No Limitation on Claims for Fraud    42

Section 7.6.Indemnification Procedures.    43

Section 7.7.Insurance Proceeds    44

Section 7.8.No Duplication    45

Section 7.9.Exclusivity of Remedy    45

Section 7.10.Adjustments to Purchase Price    45

ARTICLE 8 MISCELLANEOUS    45

Section 8.1.Fees and Expenses    45

Section 8.2.Entire Agreement; Assignment    45

Section 8.3.Amendment; Waiver    45

Section 8.4.Notices    46

Section 8.5.Governing Law    46

Section 8.6.Construction; Interpretation    46

Section 8.7.Parties in Interest    47

Section 8.8.Severability    48

Section 8.9.Counterparts; Electronic Transmission    48

Section 8.10.WAIVER OF JURY TRIAL    48

Section 8.11.Jurisdiction and Venue    48

Section 8.12.Specific Performance; Remedies    48

Section 8.13.Waiver of Conflicts    49

Section 8.14.Time of Essence    49

Section 8.15.No Successor Liability    49

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TABLE OF CONTENTS
(continued)

Page

SCHEDULES

I	—	Disclosure Schedule
EXHIBITS
A	—	Assignment and Assumption Agreement
B	—	Bill of Sale
C	—	Limited Guaranty
D	—	Project Leaseback Agreement
E	—	Solar Renewable Energy Certificates Agreement
F	—	Transition Services Agreement
G	—	Maintenance Services Agreement

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ASSET PURCHASE AGREEMENT

This ASSET PURCHASE AGREEMENT (this “Agreement”), dated as of November 22, 2024 (the “Closing Date”), is made by and between (i) NJR Clean Energy Ventures II Corporation, a New Jersey corporation (“Seller”), and (ii) Spruce Power 5, LLC, a Delaware limited liability company (“Buyer”). Seller and Buyer shall be referred to herein from time to time collectively as the “Parties” and each individually as a “Party”. Capitalized terms used but not otherwise defined herein have the meanings set forth in Section 1.1.

WHEREAS, Seller is engaged in the Business;

WHEREAS, New Jersey Resources Corporation, a New Jersey corporation (“NJRC”), indirectly owns all of the issued and outstanding equity interests of Seller and, as an inducement to Buyer to enter into this Agreement, has entered into the Limited Guaranty;

WHEREAS, Seller owns and operates the residential solar Projects known as the Sunlight Advantage residential lease portfolio (“Sunlight Advantage”);

WHEREAS, Seller wishes to sell and assign to Buyer, and Buyer wishes to purchase and accept from Seller, the Acquired Assets (which relate to Sunlight Advantage), upon the terms and subject to the conditions set forth in this Agreement;

WHEREAS, Seller desires that Buyer assume, and Buyer has agreed to assume, the Assumed Liabilities (which relate to Sunlight Advantage), upon the terms and subject to the conditions set forth in this Agreement;

WHEREAS, Seller, in order to avoid recapture of investment credit claimed in connection with Sunlight Advantage, desires to lease back from Buyer, and Buyer desires to lease to Seller, certain of those the Acquired Assets in compliance with Treasury Regulation Section 1.47-3(g); and

WHEREAS, immediately following the Closing, Buyer will sell the Acquired Assets to Spruce Power 5 Borrower 2024, LLC, a Delaware limited liability company (“Borrower”).

NOW, THEREFORE, in consideration of the premises and the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

ARTICLE 1
CERTAIN DEFINITIONS

Section 1.1.Definitions. As used in this Agreement, the following terms have the respective meanings set forth below.

“Acquired Assets” has the meaning set forth in Section 2.1(a).

“Affiliate” means, with respect to any Person, any other Person who directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such Person. The term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by Contract or otherwise, and the terms “controlled” and “controlling” have meanings correlative thereto.

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“Agreement” has the meaning set forth in the introductory paragraph to this Agreement.

“Allocation Methodology” has the meaning set forth in Section 2.5.

“Ancillary Documents” means the Assignment and Assumption Agreement, the Bill of Sale, the Project Leaseback Agreement, the Solar Renewable Energy Certificates Agreement, the Maintenance Services Agreement, and the Transition Services Agreement.

“Assigned Contracts” has the meaning set forth in Section 2.1(a)(x).

“Assignment and Assumption Agreement” means the Assignment and Assumption Agreement, effecting the assignment to and assumption by Buyer of the Acquired Assets and the Assumed Liabilities, in the form set forth on Exhibit A attached hereto.

“Assumed Liabilities” has the meaning set forth in Section 2.1(c).

“Base Purchase Price” means $132,500,000.

“Bill of Sale” means the Bill of Sale, transferring the Tangible Personal Property to Buyer, in the form set forth on Exhibit B attached hereto.

“Books and Records” has the meaning set forth in Section 2.1(a)(ix).

“Borrower” has the meaning set forth in the recitals of this Agreement.

“Business” means residential solar business of Seller, as conducted as of the Closing Date, known as Sunlight Advantage. For the avoidance of doubt, “Business” does not include Seller’s business line for commercial solar projects.

“Business Cash Inflows” has the meaning set forth in Section 2.4(a)(i).

“Business Cash Outflows” has the meaning set forth in Section 2.4(a)(i).

“Business Day” means a day, other than a Saturday, Sunday or federal holiday, on which commercial banks in each of New York City and Denver, Colorado are open for the general transaction of business.

“Business Permits” has the meaning set forth in Section 3.8(a).

“Business Products” means all products and services offered or ready and available to be offered by Seller in connection with the Business as of Closing, including all residential solar leases, the associated equipment, and related transferrable assets.

“Business Marks” means all registered and unregistered trademarks, service marks, trade names, brand names, logos, trade dress, design rights and other similar designations of source, sponsorship, association or origin, together with all goodwill associated with each of the foregoing.

“Business Software” means Software owned by Seller for use primarily in the Business.

“Buyer” has the meaning set forth in the introductory paragraph to this Agreement.

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“Buyer Indemnitees” has the meaning set forth in Section 7.2.

“Cash” means cash of Seller, whether reflected in the bank accounts of Seller or otherwise (including deposits in transit to Seller), and cash equivalents of Seller, in each case specifically related to the Business.

“Closing” has the meaning set forth in Section 2.2.

“Closing Date” has the meaning set forth in the introductory paragraph to this Agreement.

“Code” means the U.S. Internal Revenue Code of 1986, as amended.

“Commercial Agreements” means customary commercial agreements not primarily related to Taxes that contain agreements or arrangements relating to the apportionment, sharing, assignment or allocation of Taxes (such as (i) the Assigned Contracts, (ii) the Ancillary Documents, and (iii) financing agreements with Tax gross-up obligations or leases with Tax escalation provisions).

“Confidentiality Agreement” means the mutual nondisclosure agreement, dated as of August 8, 2022, by and between Buyer and Seller or one of its Affiliates.

“Consent” has the meaning set forth in Section 2.6(b).

“Contract” means any contract, obligation, understanding, undertaking, arrangement, commitment, lease, license, sublicense, purchase order, bid, mortgage, indenture, loan, note, bond, instrument, waiver, release, guaranty, promise or other agreement, in each case, whether written or oral.

“Copyrights” means all copyrights and all other rights with respect to works of authorship, and all copyright registrations thereof and applications therefor and renewals, extensions and reversions thereof, and all other rights corresponding thereto throughout the world (including all moral and economic rights, however denominated).

“Customer” means, for each Project, the customer on whose property the Project is located and that is purchasing and using the electrical energy produced by such Project pursuant to a Customer Agreement.

“Customer Agreement” means, with respect to a Project, the “Customer Agreement” between the owner of the applicable PV System and the applicable Customer, as amended.

“Customer Trigger Right” means, in respect of a Customer, the right of such Customer to terminate its Customer Agreement or exercise any other remedy provided under applicable law or regulation upon the occurrence of an event of default (howsoever defined) by the owner of the applicable PV System under its Customer Agreement.

“Defaulted Solar Asset” means, with respect to a Solar Asset, if the related Customer (a) is more than 120 days past due on any portion of a contractual payment due under the related Customer Agreement or (b) has exercised a Customer Trigger Right.

“Deficit” has the meaning set forth in Section 2.4(a)(i).

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“Disclosure Schedule” means the disclosure schedule delivered by Seller concurrently with the execution and delivery of this Agreement and attached hereto as Schedule I.

“Dispute Notice” has the meaning set forth in Section 2.4(a)(ii).

“Dispute Resolution Firm” means Pannell Kerr Forster of Texas, P.C. or, if Pannell Kerr Forster of Texas, P.C. is unable to serve, another impartial nationally recognized firm of independent certified public accountants mutually appointed by Buyer and Seller.

“Electronic Transmission” means a form of communication that (i) does not directly involve the physical transmission of paper, (ii) creates a record that may be retained, retrieved, and reviewed by the recipient, and (iii) may be directly reproduced in paper form by the recipient through an automated process.

“Energy Year” or “EY” means the period of SREC generation from June 1st through May 31st of the reporting year.

“Environmental Laws” means all Laws relating to pollution or protection of the environment (including ambient air, surface water, groundwater, land, or surface or subsurface strata) including Laws relating to emissions, discharges, releases or threatened releases of pollutants, contaminants, chemicals, petroleum, or industrial, toxic or hazardous substances or wastes into the environment and Laws relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of any of the foregoing including the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601 et. seq., the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et. seq., and the rules and regulations promulgated under any of the foregoing, all as amended and supplemented from time to time, and together with any successors thereto.

“Exchange Act” means the United States Securities Exchange Act of 1934, as amended.

“Exchange Act Affiliates” means “affiliates” as defined in Rule 12b-2 under the Exchange Act.

“Excluded Assets” has the meaning set forth in Section 2.1(a)(i).

“Excluded Contracts” has the meaning set forth in Section 2.1(b)(i).

“Excluded Liabilities” has the meaning set forth in Section 2.1(d).

“Excluded Taxes” means any Liability for the following Taxes: (i) any and all Taxes related to the Business or the Acquired Assets for any Pre-Closing Tax Period (determined in accordance with Section 5.4(e) with respect to a Straddle Period), (ii) any and all Taxes of Seller, including (a) Taxes of another Person other than the Seller for which Seller is liable under Treasury Regulations section 1.1502-6 (or any similar provision of state, local, or foreign law), as a transferee or successor, by Contract (other than Commercial Agreements) or otherwise by operation of Law for any taxable period, and (b) Taxes that becomes a liability of Buyer under any common law doctrine of transferee or successor liability, by Contract (other than Commercial Agreements) or otherwise by operation of Law, and (iii) Transfer Taxes for which Seller is responsible pursuant to Section 5.4(a); provided, however, that Excluded Taxes shall not include the Taxes that are the responsibility of Buyer pursuant to Section 5.4(a) or Section 5.4(e) of this Agreement or any Ancillary Documents.

“Final Purchase Price True Up Statement” has the meaning set forth in Section 2.4(a).

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“Final Purchase Price Allocation” has the meaning set forth in Section 2.5.

“Financial Statements” has the meaning set forth in Section 5.11.

“Fraud” with respect to any Person, means the common law fraud (and not a constructive fraud, equitable fraud, promissory fraud, negligent misrepresentation or omission, or any form of fraud premised on recklessness or negligence) by such Person with respect to the making of the representations and warranties set forth in ARTICLE 3 or ARTICLE 4 of this Agreement.

“Fundamental Representations” means, collectively, the representations and warranties of Seller set forth in Section 3.1 (Organization and Qualification), Section 3.2 (Authority), Section 3.13 (Tax Matters), Section 3.14 (Brokers), and Section 3.16 (Transactions with Affiliates).

“GAAP” means United States generally accepted accounting principles as in effect as of the Closing Date.

“GATS” means the Generation Attribute Tracking System administered by PJM Environmental Information Services.

“GATS Account” means the account established by a party that registers with GATS for purposes of transacting business through GATS.

“Governing Documents” means the legal document(s) by which any Person (other than an individual) establishes its legal existence or which govern its internal affairs. For example, the “Governing Documents” of a corporation are its certificate of incorporation and by-laws, the “Governing Documents” of a limited partnership are its limited partnership agreement and certificate of limited partnership and the “Governing Documents” of a limited liability company are its operating agreement and certificate of formation.

“Governmental Entity” means any United States or foreign (i) nation, state, commonwealth, province, territory, county, municipality, district or other jurisdiction of any nature, (ii) federal, state, local, municipal or other government, (iii) governmental or quasi-governmental entity of any nature (including any governmental agency, branch, division, department, authority, office, bureau, board, directorate, commission, instrumentality, official, or entity and any court or other tribunal) or (iv) body exercising or entitled to exercise any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power of any nature, including any arbitrator or arbitral tribunal (private or public).

“HSR Act” shall mean the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations promulgated thereunder.

“Indemnitor” has the meaning set forth in Section 7.6(a).

“Indemnitee” has the meaning set forth in Section 7.6(a).

“Indemnification Claim” means any claim in respect for indemnification pursuant to this Agreement in respect of which an Indemnitee has incurred, suffered or sustained Losses.

“Installer” has the meaning set forth in Section 5.10(b).

“Insurance Policies” has the meaning set forth in Section 3.12(a).

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“Intellectual Property Registrations” means issuances and registrations with a governmental authority or internet domain name registrar for Intellectual Property Rights.

“Intellectual Property Rights” means any intellectual property or similar proprietary rights in any jurisdiction throughout the world, including all (i) Patents; (ii) Copyrights; (iii) trade secrets and confidential know-how; (iv) Trademarks, internet domain names and Social Media Accounts, and all registrations, applications and renewals thereof, and all goodwill associated with any of the foregoing; and (v) Software.

“Interests” has the meaning set forth in Section 2.6(b).

“ITC” means the solar investment tax credit, as set forth and established under 26 U.S.C.A. § 48.

“Inventory” means all inventories of the Business and Business Products wherever located, including inventory in transit, raw materials, works in process and finished goods, together with any packaging inventory and displays.

“Knowledge” or “Seller’s Knowledge” means, with respect to a particular fact, that any of Garrett Lerner or Robert Pohlman (i) is actually aware of such fact or (ii) a prudent person, in the same position at a company and with the same responsibilities as such individual, would be expected to have knowledge of such fact after a reasonable inquiry of such individual’s direct reports.

“Law” means any U.S. or foreign federal, national, state, municipal or local law (including common law), statute, ordinance, regulation, Order, rule, constitution, code or treaty, or similar requirement of any Governmental Entity.

“Leaseback Project” means each electric generating project that is being leased back to Seller, as listed on Section 2.7 of the Disclosure Schedules.

“Liabilities”means any obligation or liability of any kind, whether known or unknown, asserted or unasserted, absolute or contingent, accrued or unaccrued, secured or unsecured, liquidated or unliquidated or due or to become due.

“Lien” means any lien (statutory or otherwise), mortgage, pledge, charge, claim, security interest, encumbrance, option, title defect, encroachment, easement, right of occupation, assessment, restriction on transfer or other encumbrance of any nature whatsoever, whether consensual, statutory or otherwise, related to capital stock, property or assets.

“Limited Guaranty” has the meaning set forth in Section 3.23.

“Loss” means all claims, losses, liabilities and damages whatsoever, interest, penalties and costs and expenses, including reasonable attorneys’, accountants’ and expert witnesses’ fees, and reasonable costs and expenses of investigation and amounts paid in settlement, court costs, and other expenses of litigation, including in respect of enforcement of its indemnity rights hereunder; provided, however, that “Loss” shall exclude (i) punitive, speculative, or exemplary damages, except to the extent that such Losses have been awarded to a third party and are payable by the Indemnitee as a result of a breach of this Agreement by the Indemnitor, and (ii) consequential damages, except to the extent that such Losses were reasonably foreseeable.

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“Maintenance Services Agreement” means that certain Maintenance Services Agreement, dated as of the Closing Date, by and between Seller and Spruce Power, in the form set forth on Exhibit G attached hereto.

“Manufacturer Warranties” means any warranty given by a manufacturer of any part or component of a PV System.

“Material Adverse Effect” means an event, occurrence, effect or change that, individually or in the aggregate, results in a material adverse effect upon (i) the Business, the Acquired Assets, the Assumed Liabilities, the financial condition or the results of operations of the Business, taken as a whole, or (ii) the ability of Seller to perform its obligations under this Agreement and the Ancillary Documents or consummate the Transactions, except if it arises from or is related to any of the following (either alone or combination): (A) conditions affecting the United States economy or any foreign economy generally; (B) any national or international political or social conditions, including the engagement or cessation by the United States in hostilities, whether or not pursuant to the declaration of a national emergency or war, or the occurrence of any military or terrorist attack upon the United States, or any of its territories, possessions, or diplomatic or consular offices or upon any military installation, equipment or personnel of the United States; (C) changes to financial, banking, or securities markets (including any disruption thereof and any decline in the price of any security or any market index); (D) changes in GAAP; (E) changes in any laws, rules, regulations, orders, or other binding directives issued by any Governmental Entity; (F) any change that is generally applicable to the industries or markets in which Seller operates; (G) the public announcement of the Transactions contemplated by this Agreement (including any communication by Buyer or any of its Affiliates regarding its plans or intentions with respect to the Business, and including the impact thereof on relationships with customers, suppliers, distributors, partners, employees, chairs, groups, members, licensees, or others having relationships with Seller); (H) any failure by Seller to meet any internal or published projections, forecasts, or revenue or earnings predictions for any period ending on or after the Closing Date (provided that the facts or occurrences giving rise to or contributing to such failure may be taken into account in determining whether there has been a Material Adverse Effect); (I) the taking of any action contemplated by this Agreement or the Ancillary Documents, including the completion of the Transactions contemplated hereby and thereby; or (J) any “act of God,” including weather, natural disasters, earthquakes, epidemics, pandemics and disease outbreaks (including COVID-19), or any material worsening of such conditions threatened or existing as of the Closing Date; provided that the exceptions in the foregoing clauses (A), (B), (C), (D), (E), (F), and (J) of this definition shall apply only to the extent that such event, occurrence, effect or change referred to in any such exception has a disproportionate impact on the Business in relation to other Persons in the businesses, markets, industries or the geographies in which the Business operates.

“Material Contracts” has the meaning set forth in Section 3.5(a).

“Most Recent Balance Sheet” means the unaudited balance sheet of the Business as of September 30, 2024.

“NJRC” has the meaning set forth in the recitals of this Agreement.

“NJRES” means NJR Energy Services Company, LLC, an Affiliate of Seller.

“NJRES’ SA GATS Account” has the meaning set forth in Section 5.9(d).

“Parties” has the meaning set forth in the introductory paragraph to this Agreement.

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“Patents” means any domestic or foreign patents, registered design, utility models and applications, drafts and disclosures relating thereto (and any patents or utility models that issue as a result of such applications, drafts and disclosures) and any reissues, divisions, divisionals, continuations, continuations-in-part, provisionals, renewals, extensions, substitutions, reexaminations or invention registrations related to such patents, utility models and applications.

“Permits” has the meaning set forth in Section 3.8(a).

“Permitted Liens” means (i) mechanic’s, materialmen’s, carriers’, repairers’ and other Liens arising or incurred in the ordinary course of business for amounts that are not delinquent or are being contested in good faith by appropriate proceedings, (ii) Liens for Taxes, assessments or other governmental charges or levies that are not yet delinquent or that are being contested in good faith by appropriate proceedings and for which appropriate reserves have been set aside, the amount of which has been established in accordance with GAAP, (iii) Liens granted to any lender at the Closing in connection with any financing by Buyer of the transactions contemplated hereby, (iv) zoning, building codes and other land use laws regulating the use or occupancy of real property or the activities conducted thereon which are imposed by any Governmental Entity having jurisdiction over such real property and which are not violated by the current use or occupancy of such real property or the operation of the Business, (v) Liens described on Section 1.1(a) of the Disclosure Schedules, and (vi) pledges, deposits or other Liens made in the ordinary course of business consistent with past practice securing the performance of bids, trade contracts, leases or obligations or a like nature.

“Person” means an individual, partnership, corporation, limited liability company, joint stock company, unincorporated organization or association, trust, joint venture, association, entity, or other form of business organization or any Governmental Entity whatsoever.

“Post-Closing Tax Period” means any taxable period beginning on or after the day after the Closing Date and, for any Straddle Period, the portion of such Straddle Period beginning on or after the day after the Closing Date.

“Pre-Closing Tax Period” means any taxable period ending on or before the Closing Date and, for any Straddle Period, the portion of such Straddle Period up to and including the Closing Date.

“Proceeding” has the meaning set forth in Section 3.7.

“Project” means each electric generating project, including the related Solar Assets and related rights and obligations of the applicable parties thereto, listed on Section 2.1(a) of the Disclosure Schedules.

“Project Contracts” means, with respect to each Project, the applicable Contract set forth on Section 3.10 of the Disclosure Schedules.

“Project Leaseback Agreement” means the Project Leaseback Agreement, by and between Buyer and Seller, substantially in the form set forth on Exhibit D attached hereto and by this reference made a part hereof as though fully set forth herein, which corresponds to the respective Leaseback Projects being leased back to Seller, as set forth on Section 2.7 of the Disclosure Schedules, and will have a lease end date based on each Leaseback Project’s respective individual ITC recapture period.

“PTO” means, with respect to a PV System, the receipt of permission to operate from the related local utility in writing or in such other form as is customarily given by the related local utility.

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“Public Counterparty” has the meaning set forth in Section 5.7.

“Purchase Price” means the Base Purchase Price as adjusted pursuant to Section 2.4.

“Purchase Price True Up” means an amount, which may be positive or negative, equal to the Business Cash Inflows minus the Business Cash Outflows during the Purchase Price True Up Period.

“Purchase Price True Up Period” has the meaning set forth in Section 2.4(a)(i).

“Purchase Price True Up Statement” has the meaning set forth in Section 2.4(a)(i).

“PV System” means, with respect to a Solar Asset, a photovoltaic system, including solar photovoltaic panels, inverters, racking systems, wiring and other electrical devices, as applicable, conduits, weatherproof housings, hardware, remote performance monitoring equipment, connectors, meters, disconnects and over current devices (including any replacement or additional parts included from time to time).

“RECs” means renewable energy certificates, including SRECs, TRECs, SREC-IIs and any credits, certificates, green tags, allowances, offsets, entitlements or similar environmental or green energy attributes (such as those for greenhouse gas reduction or the generation of power from renewable resources) created by a Governmental Entity, an independent certification board, or a group generally recognized in the electric power industry, and generated by or associated with a Project or the operation thereof.

“Representatives” has the meaning set forth in Section 2.4(a)(ii).

“Retained Interest” has the meaning set forth in Section 2.6(b).

“Review Period” has the meaning set forth in Section 2.4(a)(ii).

“Schedule of Solar Assets” has the meaning set forth in Section 3.20.

“Section 5.10 Schedule of Additional Projects” has the meaning set forth in Section 5.10(a).

“Securities” has the meaning set forth in Section 5.7.

“Seller” has the meaning set forth in the introductory paragraph to this Agreement.

“Seller Indemnitees” has the meaning set forth in Section 7.3.

“Social Media Accounts” means any and all accounts, profiles, pages, feeds, registrations and other presences on or in connection with any (a) social media or social networking website or online service, (b) blog or microblog, (c) mobile application, (d) photo, video or other content-sharing website, (e) virtual game world or virtual social world, (f) rating and review website, (g) wiki or similar collaborative content website or (h) message board, bulletin board, or similar forum.

“Software” means any and all (a) computer programs, firmware, software (whether in source code, object code or other form), models, algorithms, methodologies and implementations thereof, (b) development tools, descriptions and flow charts, (c) data, metadata, databases and compilations of data, whether machine readable or otherwise and (d) programmers’ annotations, notes, documentation,

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product user manuals, training materials and other work product used to design, plan, organize, maintain, support or develop any of the foregoing, irrespective of the media on which it is recorded.

“Solar Assets” means (i) each PV System installed on a residential property, (ii) all related real property rights, Permits, and Manufacturer Warranties (in each case, to the extent transferable), (iii) all rights and remedies of the Seller under the related Customer Agreement, and (iv) all documentation related to such PV System and the Customer Agreement.

“Solar Asset Information” means with respect to each Solar Asset: (i) Seller Customer Agreement reference number, (ii) address, (iii) system size, (iv) total installation cost, (v) specific yield, (vi) LTM/estimated production, (vii) panel, (viii) inverter, (ix) Customer Agreement form version number, (x) incentive type, (xi) channel partner, (xii) interconnection approval date, (xiii) term length, (xiv) Customer Agreement end date, (xv) monthly price, (xvi) utility company, and (xvii) percent of electric provided by solar.

“Solar Renewable Energy Certificates” or “SREC” means a New Jersey Solar Renewable Energy Certificate issued by the PJM EIS GATS for qualifying generation.

“Solar Renewable Energy Certificates II” or “SREC-II” or “SREC 2” means a New Jersey Solar Renewable Energy Certificate II or 2 issued by the PJM EIS GATS for qualifying generation.

“Solar Renewable Energy Certificates Agreement” that certain Solar Renewable Energy Certificates Agreement dated as of the Closing Date, by and between Borrower and NJRES, in the form set forth on Exhibit E attached hereto.

“Spruce Power” means Solar Service Experts, LLC, d/b/a Spruce Power, a Delaware limited liability company.

“Straddle Period” means a taxable period that begins on or prior to, and ends after the Closing Date.

“Subsidiary” shall mean, with respect to any Person, any corporation, entity or other organization whether incorporated or unincorporated, of which (a) such first Person directly or indirectly owns or controls at least a majority of the securities or other interests having by their terms ordinary voting power to elect a majority of the board of directors or others performing similar functions or (b) such first Person is the general partner or managing member.

“Sunlight Advantage” has the meaning set forth in the recitals of this Agreement.

“Surplus” has the meaning set forth in Section 2.4(a)(i).

“Tangible Personal Property” has the meaning set forth in Section 2.1(a)(iii).

“Tax” means any federal, state, local, or non-U.S. income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, escheat or unclaimed property, customs, duties, capital stock, franchise, profits, withholding, social security (or similar), unemployment, disability, real property, personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, or other tax of any kind whatsoever, whether computed on a separate or consolidated, unitary or combined basis or in any other manner, including any interest, penalty, or addition thereto, whether disputed or not.

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“Tax Return” means any return, report, information return, declaration, claim for refund or other document (including any schedule or related or supporting information) filed or required to be filed to any Governmental Entity (or furnished or required to be furnished to any Person) with respect to Taxes, including amendments thereto.

“Terminated Solar Asset” means a Solar Asset for which the related PV System has experienced an event of loss and has not been repaired, restored, replaced or rebuilt to substantially the same condition as it existed immediately prior to the event of loss within 180 days of such event of loss.

“Third-Party Claim” has the meaning set forth in Section 7.6(b).

“Trademarks” means all unregistered and registered trademarks and service marks, trademark and service mark applications, common law trademarks and service marks, trade dress and logos, trade names, business names, corporate names, product names and other source or business identifiers and the goodwill associated with any of the foregoing and any renewals and extensions of any of the foregoing, as permitted in the jurisdiction where any such unregistered or registered trademarks are being used.

“Transactions” means the transactions contemplated by this Agreement and the Ancillary Documents.

“Transfer Taxes” has the meaning set forth in Section 5.4(a).

“Transition Services Agreement” means that certain Transition Services Agreement dated as of the Closing Date, by and between Spruce Power and Seller, in the form set forth on Exhibit F attached hereto.

“Transition Renewable Energy Certificates” or “TREC” means a New Jersey Transition Renewable Energy Certificate issued by the PJM EIS GATS for qualifying generation.

“UCC” means the Uniform Commercial Code as from time to time in effect in any applicable jurisdiction.

“Use” has the meaning set forth in Section 3.17.

“Warranty Rights” has the meaning set forth in Section 2.1(a)(xii).

ARTICLE 2
PURCHASE AND SALE

Section 2.1.Purchase and Sale of the Acquired Assets and Assumption of the Assumed Liabilities.

(a)Acquired Assets. Upon the terms and subject to the conditions set forth in this Agreement, at the Closing, Seller will sell, convey, assign, transfer and deliver to Buyer, and Buyer shall purchase from Seller, all of Seller’s right, title and interest in and to all of the assets set forth below, including all of the Projects (collectively, the “Acquired Assets”):

(i)all trade and other notes and accounts receivable that are, with respect to each of the aforementioned items, specifically related to the Business, in each case only to the extent relating to the period after September 30, 2024, provided, however, that any such trade and

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other notes and accounts receivable that are, with respect to each of the aforementioned items, specifically related to the Business and received by Buyer after the termination of the Transition Services Agreement shall belong to Buyer;

(ii)all Inventory and supplies that are, with respect to each of the aforementioned items, owned, used or held for use primarily in connection with the Business, including all inventory that is set forth on Section 2.1(a)(ii) of the Disclosure Schedules attached hereto;

(iii)all equipment, machinery, tools, and other components of residential solar systems, including PV Systems, and other tangible personal property of Seller that are, with respect to each of the aforementioned items, used primarily in the Business, including the items set forth on Section 2.1(a)(iii) of the Disclosure Schedules (the “Tangible Personal Property”);

(iv)all email accounts set forth on Section 2.1(a)(iv) of the Disclosure Schedules, including email address names that are used primarily in the Business and all email messages associated with such email accounts;

(v)all Permits, to the extent transferable, which are held by Seller and required specifically for the conduct of the Business as currently conducted or for the ownership and use of the Acquired Assets and not required for Seller to conduct any of its operations that are being retained;

(vi)all rights to any Proceeding of any nature available to or being pursued by Seller, to the extent related primarily to the Business, the other Acquired Assets or the Assumed Liabilities, whether arising by way of counterclaim or otherwise, in each case only to the extent relating to Assumed Liabilities or relating to the period after September 30, 2024;

(vii)all prepaid items and expenses (other than prepaid insurance premiums), credits, advance payments, claims, security, refunds, rights of recovery, rights of set-off, rights of recoupment, deposits, charges, sums and fees that are, with respect to each of the aforementioned items, primarily related to the Business;

(viii)all of Seller’s rights under warranties (including installer warranties), indemnities and all similar rights against third parties to the extent, with respect to each of the aforementioned items, related primarily to any of the other Acquired Assets or the Assumed Liabilities;

(ix)all lists, records and other information pertaining to suppliers and customers, all lists, records and other information pertaining to accounts, referral sources, all drawings, plats, specifications, reports, studies, plans, books, ledgers, files, documents, correspondence and business and accounting materials, all advertising, marketing and promotional materials, and all other printed or written materials, in each case owned, maintained or in the custody or control of Seller that, with respect to each of the aforementioned items, relate primarily to the Business, the Acquired Assets or the Assumed Liabilities, and in each case whether or not evidenced in writing, electronic data or otherwise (the “Books and Records”);

(x)all Contracts existing or used primarily in connection with the Business to which Seller or any of its Subsidiaries is a party that are (1) Material Contracts, (2) Project Contracts, (3) set forth on Section 2.1(a)(x) of the Disclosure Schedules, (4) Customer

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Agreements, or (5) expressly referenced in other subsections of this Section 2.1(a) to the extent, with respect to each of the aforementioned items, used primarily in connection with the Business (collectively, the “Assigned Contracts” it being understood that Assigned Contracts shall in no event include Excluded Contracts);

(xi)all SRECs generated by the Projects on and after October 1, 2024 and all TRECs and SREC-IIs generated on and after October 1, 2024; and

(xii)all of Seller’s right, title, benefit and interest in and to the warranties and indemnities under the Installer Agreement associated with each additional Project sold by Seller to Buyer under Section 5.10 (“Warranty Rights”), including Seller’s right to receive the benefits of and to make claims under the Warranty Rights, subject, in each instance, to the limitations, conditions, exclusion of liabilities and disclaimers described in such Installer Agreement.

(b)Excluded Assets. Seller shall retain all assets other than the Acquired Assets, and, notwithstanding Section 2.1(a), the Acquired Assets shall not include any of the following assets of Seller or its Affiliates, all of which shall remain the exclusive property of Seller and its Affiliates, free and clear of any claim of Buyer (collectively, the “Excluded Assets”):

(i)all Cash of Seller;

(ii)all bank accounts of Seller;

(iii)all Contracts (the “Excluded Contracts”) other than (A) the Assigned Contracts and (B) the Contracts set forth in Section 2.1(b)(i) of the Disclosure Schedules;

(iv)the corporate charter, qualifications to conduct business as a foreign corporation, arrangements with registered agents relating to foreign qualifications, taxpayer and other identification numbers, seals, minute books, stock transfer books, blank stock certificates, books of account or other records having to do with the corporate organization, maintenance and existence of Seller and its Affiliates, including personal information of its employees and contractors;

(v)all insurance policies and rights thereunder, including returns of charges or premiums under retrospective rating plans;

(vi)the assets, properties and rights specifically set forth on Section 2.1(b)(vi) of the Disclosure Schedules;

(vii)intercompany receivables, intercompany debts and other obligations due to Seller from any of its Affiliates (whether recorded or unrecorded);

(viii)those assets of Seller and Seller’s Affiliates that may be used, but are not used primarily, in the operation of or in connection with, the Business, including (A) software and systems, including the email system but excluding the email assets specified in Section 2.1(a)(iv), (B) Contracts to which any Affiliate of Seller is a party (other than the Assigned Contracts), and (C) administrative and financial services provided to the Business by Seller and its Affiliates, including financial, tax, accounting, legal, administrative, management, risk management, employee benefits and other human resources, information technology, paper purchasing,

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production, website hosting, digital apps and video distribution, advertising operations and programmatic support, consumer marketing and other support services;

(ix)all Business Marks, Intellectual Property Registrations, and Intellectual Property Rights, including Software, Trademarks, Copyrights, and Social Media Accounts, of Seller or its Affiliates and all goodwill associated with any of the foregoing;

(x)all interests of Seller and its Affiliates in and to (i) all furniture and leasehold improvements in any facility, including those used by the Business, (ii) all furniture, fixtures, vehicles, office equipment, and supplies, and (iii) all routers, hubs, switches, file servers and other network and telecommunications equipment and computer hardware;

(xi)all interests of Seller and its Affiliates in and to their telephone numbers and facsimile numbers, including those used or held for use in connection with the Business, and all listings pertaining to Seller in all directories or similar publications relating to internet domain names;

(xii)all interests of Seller and its Affiliates in and to post office boxes;

(xiii)all claims, rights, benefits and interests arising under or resulting from any Excluded Asset or Excluded Liability;

(xiv)without limiting Section 5.4(e), any rights to Tax refunds, Tax credits or similar Tax benefits, including those related to the Business or the Acquired Assets for any Pre-Closing Tax Period;

(xv)subject to Section 5.4(f), any records (including accounting records and Tax Returns and related records and workpapers) related to Taxes paid or payable by Seller or any of its Affiliates, and all financial and Tax records and related workpapers relating to the Business that form part of Seller’s or any of its Affiliates’ general ledger;

(xvi)Seller’s and each of Seller’s Affiliates’ proprietary or confidential business information, records or policies, including those which relate generally to their businesses and are not used primarily in connection with the Business, such as strategic plans, marketing strategies and accounting procedures;

(xvii)all capital stock or other equity interests in any Subsidiary of Seller or its Affiliates or in any other entity that are owned beneficially or of record by any of them;

(xviii)all legal advice and related communications and records delivered to Seller or its Affiliates at any time regardless of whether such advice or communications concerned the Business;

(xix)all records prepared in connection with the sale of the Business, including analyses relating to the Business;

(xx)all communications with respect to, relating to, arising from or in connection with the Transactions among Greenberg Traurig, LLP, Seller and its Affiliates, and any of their respective Representatives, and the attorney-client privilege, the expectation of client

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confidence, and all other rights to any evidentiary privilege belong to such Persons with respect to such communications;

(xxi)all goodwill and all other intangible property not specifically identified in Section 2.1(a);

(xxii)all rights and privileges of Seller and its Affiliates set forth in or otherwise implied by this Agreement, each Ancillary Document and any agreement, certificate, instrument or other document executed and delivered by Seller or Buyer in connection with the transactions contemplated hereby; and

(xxiii)all SRECs generated by the Projects before October 1, 2024 and all TRECs and SREC-IIs generated before October 1, 2024.

(c)Assumed Liabilities. From and after the Closing, without any further responsibility or liability of, or recourse to, Seller, any of its Affiliates, or any of their respective directors, shareholders, officers, employees, agents, consultants, representatives, successors or assigns, Buyer shall absolutely and irrevocably assume and be liable and solely responsible for only the following Liabilities of Seller, solely to the extent that they relate exclusively to the Business or the Acquired Assets (collectively, the “Assumed Liabilities”):

(i)all ordinary course accounts payable specifically related to the Business, only to the extent relating to the period after September 30, 2024, and excluding milestone payments under installer Contracts;

(ii)all Liabilities in respect of the Assigned Contracts arising after the Closing Date, other than Liabilities relating to performance of a warranty or other obligation under such Assigned Contract that arose prior to the Closing and is set forth on Section 2.1(c)(ii) of the Disclosure Schedules;

(iii)all Liabilities for (A) Taxes that relate to the Business or ownership of the Acquired Assets for a Post-Closing Tax Period (determined in accordance with Section 5.4(e) with respect to a Straddle Period) and (B) the share of Transfer Taxes for which Buyer is responsible pursuant to Section 5.4(a); and

(iv)those Liabilities of Seller set forth on Section 2.1(c)(iv) of the Disclosure Schedules.

(d)Excluded Liabilities. Buyer is not assuming, shall not assume, shall not be deemed to have assumed and shall not be responsible to pay, perform or discharge, and Seller shall pay, perform and otherwise discharge, any and all Liabilities of Seller or its Affiliates other than the Assumed Liabilities (the “Excluded Liabilities”). Without limiting the foregoing, the Excluded Liabilities shall include the following:

(i)all Liabilities of Seller arising or incurred in connection with the negotiation, preparation, investigation and performance of this Agreement, the Ancillary Documents and the Transactions including fees and expenses of counsel, accountants, consultants, advisers and others;

(ii)all Liabilities for Excluded Taxes;

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(iii)all Liabilities relating to or arising from the Excluded Assets;

(iv)all Liabilities in respect of any Proceeding that is pending on the Closing Date or any Proceeding outside of the ordinary course of business that is commenced after the Closing Date, which arises out of, relates to, or is otherwise in respect of the operation of the Business or the Acquired Assets on or prior to the Closing Date;

(v)all Liabilities of Seller for any present or former employees (including all Liabilities associated with any severance for such employees), officers, directors, retirees, independent contractors or consultants of Seller, including any Liabilities associated with any claims for wages or other benefits, bonuses, accrued vacation, workers’ compensation, severance, retention, termination or other payments, harassment, discrimination, or wrongful discharge;

(vi)all Liabilities of Seller under this Agreement or any other Ancillary Document, including any obligation or liability arising out of a breach of any representation, warranty or covenant made by Seller under or pursuant to this Agreement or any other Ancillary Document;

(vii)all milestone payments under installer Contracts; and

(viii)all Liabilities for indebtedness of Seller other than indebtedness owed or arising after the Closing pursuant to Assumed Liabilities, subject, however, to the application of Section 2.1(d)(vi).

Section 2.2.Closing of the Transactions. The closing of the purchase and sale of the Acquired Assets hereunder (the “Closing”) will occur via the electronic transmittal of executed documents on the Closing Date. The Parties shall use their reasonable efforts to complete the Closing remotely via the exchange of documents and signatures and electronic means of communication to avoid the need for a physical Closing. If a physical Closing is necessary, the Closing will be considered to take place at the offices of offices of Greenberg Traurig, LLP, 500 Campus Drive, Suite 400, Florham Park, NJ 07932.

Section 2.3.Payment of Purchase Price at the Closing. At the Closing, Buyer will pay the Base Purchase Price to Seller by wire transfer of immediately available funds to an account specified by Seller in writing at least three Business Days prior to the Closing.

Section 2.4.Post-Closing Purchase Price True-Up.

(a)Purchase Price True Up.

(i)Within 60 days following the Closing Date, Seller shall prepare and deliver (or cause to be prepared and delivered) to Buyer a statement with reasonable detail and supporting documentation (the “Purchase Price True Up Statement”) setting forth: (A) the aggregate amount of cash and outstanding deposits received by Seller derived from the ordinary-course operations of the Business consistent with Seller’s past practice, including the revenue generated from the Acquired Assets, TRECs and SREC-IIs (“Business Cash Inflows”) during the period beginning on October 1, 2024 and continuing through the Closing Date (such period, the “Purchase Price True Up Period”), (B) the aggregate amount of cash paid by Seller in respect of operating expenses of the Business from the arising from the ordinary-course operations of the Business consistent with Seller’s past practice, but excluding any milestone payments made under

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installer Contracts (“Business Cash Outflows”), during the Purchase Price True Up Period, and (C) the Purchase Price True Up. If the Purchase Price True Up is negative (i.e., the amount of Business Cash Outflows exceeds the amount of Business Cash Inflows during the Purchase Price True Up Period), then there is a deficit (a “Deficit”). If the Purchase Price True Up is positive (i.e., the amount of Business Cash Inflows exceeds the amount of Business Cash Outflows during the Purchase Price True Up Period), then there is a surplus (a “Surplus”).

(ii)Within 30 days after receipt by Seller of the Purchase Price True Up Statement (the “Review Period”), Buyer may deliver to Seller a written notice (the “Dispute Notice”) either (i) advising Seller that Buyer agrees with and accepts Seller’s calculation of the Purchase Price True Up or (ii) setting forth, with reasonable supporting documentation, what Buyer believes is the correct calculation of the Purchase Price True Up. During the Review Period: (A) Buyer and its consultants, advisors, and other representatives (“Representatives”) shall be granted access during business hours to the books, records, and accounting work papers of Seller to conduct Buyer’s review, and Seller shall use commercially reasonable efforts to respond promptly, in good faith, and as fully and accurately as is reasonably possible to inquiries from Buyer and Buyer’s Representatives related to such review and (B) Buyer and Buyer’s Representatives shall have the right to request and obtain any and all additional supporting documentation from Seller or a meeting or meetings with Representatives of Seller to discuss its calculations and determinations as set forth in the Purchase Price True Up Statement, and Seller shall use commercially reasonable efforts to comply promptly with any and all such requests.

(iii)In the event of that Buyer delivers a Dispute Notice, the Parties agree to negotiate in good faith to resolve any such dispute within 30 days after delivery of the Dispute Notice. If Buyer has submitted a Dispute Notice, and the Parties cannot resolve such dispute regarding the calculation of the Purchase Price True Up within 30 days after delivery of the Dispute Notice, such dispute shall be submitted for resolution to the Dispute Resolution Firm. The Dispute Resolution Firm shall act as an expert and not an arbitrator and shall be instructed to make its determination within 30 days after its engagement as to the determination of the Purchase Price True Up. In resolving any disputed items, the Dispute Resolution Firm may not assign a value greater than the greatest value for such item claimed by either Party in the Purchase Price True Up Statement or the Dispute Notice, as applicable, or less than the smallest value for such item claimed by either Party in the Purchase Price True Up Statement or the Dispute Notice, as applicable. Each of Buyer and Seller shall have the opportunity to present its claimed value and related reasoning and calculations to the Dispute Resolution Firm, but neither Party shall engage in any substantive ex parte communications with the Dispute Resolution Firm. The Dispute Resolution Firm’s determination shall be based solely on presentations by Buyer and Seller (i.e., not an independent review) and on the defined terms in this Agreement that are relevant to the calculation of the disputed item. The determination of the Dispute Resolution Firm shall be binding on all Parties (and not reviewable by any court or through arbitration or otherwise), absent manifest error. The fees for the Dispute Resolution Firm shall be borne by Seller and Buyer respectively in relative proportion based upon the determination of the Dispute Resolution Firm. Notwithstanding any other provision to the contrary in this Agreement (including, for the avoidance of doubt, ARTICLE 7), the process outlined in this Section 2.4(a) shall be the sole and exclusive means of resolving any disputes or claims concerning the calculation of the Purchase Price True Up.

(b)Purchase Price True Up Payment. Within 15 days following the finalization of the calculation of the Purchase Price True Up, if any, in accordance with Section 2.4(a):

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(i)if there is a Surplus, then Seller shall deliver to Buyer, by wire transfer of immediately available funds to an account designated in writing by Buyer, an amount equal to the Surplus; or

(ii)if there is a Deficit, then Buyer shall deliver to Seller, by wire transfer of immediately available funds to an account designated in writing by Seller, an amount equal to the absolute value of the Deficit.

Section 2.5.Allocation of Final Purchase Price. No later than 120 days after the Closing Date, Buyer shall deliver or cause to be delivered to Seller a proposed allocation of the Purchase Price (and other amounts treated, for U.S. federal income Tax purposes and applicable state, local, and foreign Tax purposes, as consideration paid by Buyer to Seller pursuant to this Agreement) among the Acquired Assets, which allocation shall be determined in a manner consistent with Section 1060 of the Code and the Treasury Regulations promulgated thereunder and the methodologies provided in Section 2.5 of the Disclosure Schedules (the “Allocation Methodology”). The Parties shall cooperate in good faith to resolve any disputed items with respect to such proposed allocation and, if the Parties cannot resolve such disputed items following such cooperation, the Parties shall engage the Dispute Resolution Firm to determine the final resolution with respect to such disputed items. The Dispute Resolution Firm shall act as an expert and not an arbitrator and shall promptly resolved the disputed items in a manner consistent with the principles set forth in the Allocation Methodology. All fees and expenses of the Dispute Resolution Firm shall be borne equally by the Parties. The allocation as agreed by the Parties or as determined by the Dispute Resolution Firm, as the case may be (the “Final Purchase Price Allocation”), shall be conclusive and binding on the Parties hereto for U.S. federal, state, local and non-U.S. Tax purposes as provided herein, and all Parties and their respective Affiliates agree to file all Tax Returns, including IRS Form 8594 and any reports required to be filed under Section 1060 of the Code consistent with the Final Purchase Price Allocation, and none of the Parties or their respective Affiliates will take any Tax position (whether in Tax Returns, before any Governmental Entity charged with the collection of income Tax, or in any judicial proceeding) that is inconsistent with the Final Purchase Price Allocation, unless required to do so by applicable Law.

Section 2.6.Assignment of Acquired Assets.

(a)Seller and Buyer shall each use commercially reasonable efforts to obtain (and shall use commercially reasonable efforts to cooperate with each other in obtaining) any consents or approvals required from third parties to assign, convey or transfer the Acquired Assets in connection with the consummation of the transactions contemplated by this Agreement and release Seller from any guarantees or similar obligations.

(b)Notwithstanding anything to the contrary in this Agreement, to the extent that any sale, transfer, conveyance or assignment or attempted sale, transfer, conveyance or assignment of any Assigned Contract or other Acquired Asset to be sold, transferred, conveyed or assigned to Buyer, or any claim, right or benefit arising thereunder or resulting therefrom (collectively, the “Interests”), would constitute a breach thereunder or with respect thereto, or such Interest is not capable of being sold, transferred, conveyed or assigned without any action, approval, consent or authorization (“Consent”) which has not been obtained by (or does not remain in full force and effect at) the Closing, this Agreement shall not constitute a sale, transfer, conveyance or assignment thereof, or an attempted sale, transfer, conveyance or assignment thereof, unless and until such Interest (a “Retained Interest”) can be sold, transferred, conveyed and assigned without such a breach or such Consent is obtained, at which time such Retained Interest shall be deemed to be sold, transferred, conveyed and assigned for no additional

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consideration and without any further action on the part of Buyer or Seller and shall cease to be a Retained Interest; provided, however, that the representations contained in this Agreement applicable to such Interest shall apply to such Interest as if such Interest was transferred at the Closing.

(c)To the extent any of the Consents necessary to sell, transfer, convey or assign any Interest has not been obtained (or does not remain in full force and effect) as of the Closing, Seller shall be responsible for obtaining any such Consents and Seller and Buyer shall, while such Interest remains a Retained Interest, use their reasonable efforts to (i) cooperate in any reasonable and lawful arrangements designed to provide the benefits of such Retained Interest to Buyer and (ii) continue to hold and operate such Retained Interest in all material respects in the ordinary course of business consistent with past practice and taking into account the Transactions. To the extent that Buyer is provided all of the material benefits of any Retained Interest pursuant to this Section 2.6, Buyer shall, if so permitted with respect to such Retained Interest, as agent or subcontractor for Seller, pay, perform and discharge for the benefit of Seller and the other Persons that are parties thereto all of the Liabilities of Seller thereunder that, but for the lack of the Consent needed to assign such Liabilities to Buyer, would be Assumed Liabilities from and after the Closing Date. To the extent permitted under applicable Law, Seller shall, at Buyer’s expense, hold in trust for and pay to Buyer, promptly upon receipt thereof, all income, proceeds and other monies received by Seller to the extent related to any Retained Interest in connection with the arrangements under this Section 2.6.

Section 2.7.Leaseback. As a material part of the consideration to the Parties for entering into this Agreement, the Parties have agreed that Seller and Buyer will, at the Closing, enter into the Project Leaseback Agreement for each of the Leaseback Projects that are being leased back to Seller, as listed on Section 2.7 of the Disclosure Schedules.

Section 2.8.Withholding. Buyer shall be entitled to deduct and withhold from any cash amounts payable pursuant to this Agreement such amounts as Buyer may be required to deduct and withhold with respect to the making of such payment under United States federal, state or local Tax Laws; provided, however, that if Seller timely delivers valid documentation which obviates the need for such withholding (including a duly executed IRS Form W-9 with respect to backup withholding or withholding under Section 1445 of the Code), then Buyer shall not be entitled to deduct and withhold any corresponding amounts otherwise payable to Seller hereunder. Buyer shall provide Seller with written notice as soon as reasonably practicable upon becoming aware that any such deduction or withholding is required (but such notice shall be at least five Business Days prior to any such withholding or deduction), and the Parties shall use commercially reasonable efforts to reduce or eliminate such withholding or deduction. To the extent that such amounts are withheld and paid over to the appropriate Tax authority by Buyer, such withheld amounts shall be treated for all purposes of this Agreement as having been paid to the person in respect of which such deduction and withholding were made.

ARTICLE 3
REPRESENTATIONS AND WARRANTIES OF SELLER

Except as set forth in the corresponding section of the Disclosure Schedules, Seller hereby represents and warrants to Buyer as of the Closing Date (except with respect to representations and warranties expressly stated to relate to a specific date, in which case such representations and warranties are, were or will be true and correct as of such date):

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Section 3.1.Organization and Qualification.

(a)Seller is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of formation. Seller has the requisite corporate power and authority to own, lease and operate its properties, rights and assets and to carry on the Business as conducted immediately prior to the Closing.

(b)Seller is duly qualified or licensed to transact business and is in good standing in each jurisdiction in which the property, rights and assets owned, leased or operated by it, or the nature of the Business conducted by it, makes such qualification or licensing necessary, except in such jurisdictions where the failure to be so duly qualified or licensed and in good standing would not reasonably be expected to have a Material Adverse Effect.

Section 3.2.Authority. Seller has the requisite power and authority to execute and deliver this Agreement and each Ancillary Document to which it is a party and to perform its obligations hereunder and thereunder. The execution and delivery of this Agreement by Seller and the performance of its obligations hereunder have been (and the execution and delivery of each of the Ancillary Documents to which Seller is a party and the performance of its obligations thereunder will be) duly authorized by all necessary action on the part of Seller. This Agreement has been (and the execution and delivery of each of the Ancillary Documents to which Seller is a party will be) duly executed and delivered by Seller, and constitute valid, legal and binding agreements of Seller (assuming that this Agreement has been and such Ancillary Documents will be duly and validly authorized, executed and delivered by each of the other parties thereto), enforceable against Seller in accordance with their terms, except (i) to the extent that enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting the enforcement of creditors’ rights generally and (ii) that the availability of equitable remedies, including, specific performance, is subject to the discretion of the court before which any proceeding thereof may be brought.

Section 3.3.No Undisclosed Liabilities. Seller has no material Liabilities with respect to the Business which would be required to be disclosed on a balance sheet prepared in accordance with GAAP or in the notes thereto and would be Assumed Liabilities other than (i) Liabilities which have arisen prior to the date of the Most Recent Balance Sheet in the ordinary course of business consistent with past practice and are reflected on the Financial Statements, (ii) Liabilities which have arisen after the date of the Most Recent Balance Sheet in the ordinary course of business consistent with past practice or which are related to the future performance of any Assigned Contract (none of which results from or arises out of any breach of contract, breach of warranty, tort, infringement or violation of Law) and (iii) Liabilities set forth on Section 3.3 of the Disclosure Schedules.

Section 3.4.Consents and Approvals; No Violations.

(a)Except as set forth on Section 3.4 of the Disclosure Schedules, assuming the truth and accuracy of the representations and warranties of Buyer set forth in ARTICLE 4, no notices to, filings with, or authorizations, consents or approvals of any Person or Governmental Entity are required to be obtained by Seller in connection with the execution, delivery or performance by Seller of this Agreement or the Ancillary Documents to which Seller is a party or the consummation by Seller of the Transactions applicable to it.

(b)Neither the execution, delivery or performance by Seller of this Agreement or the Ancillary Documents to which Seller is a party nor the consummation by Seller of the Transactions

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applicable to it (i) conflict with or result in any breach of any provision of Seller’s Governing Documents, (ii) except as set forth on Section 3.4 of the Disclosure Schedules, result in a violation or breach of, conflict with, give rise to or create any right or obligation under or constitute (with or without due notice or lapse of time or both) a default (or give rise to any right of termination, cancellation, acceleration or modification) or the loss of a benefit under any of the terms, conditions or provisions of any Material Contract or Permit included in the Acquired Assets to which Seller is a party or by which the Business or any Acquired Asset is bound, (iii) violate in any material respect any Order or Law to which Seller, the Business or the Acquired Assets are subject, or (iv) except as contemplated by this Agreement or with respect to Permitted Liens, result in the creation of any material Lien upon any of the Acquired Assets.

Section 3.5.Material Contracts.

(a)Section 3.5(a) of the Disclosure Schedules sets forth each of the following Contracts in effect as of the Closing Date (x) by which any of the Acquired Assets are bound or (y) to which Seller is a party (including as an assignee) or which it is bound, in each case in connection with the Business or the Acquired Assets (collectively, the “Material Contracts”):

(i)all agreements (or group of related agreements with respect to a single transaction or series of related transactions) that involve future payments, performance of services or delivery of goods or materials of any amount or value reasonably expected to exceed $75,000 in any future 12-month period;

(ii)all security agreements, purchase money agreements, conditional sales contracts, capital leases or other similar agreements created or assumed by, or permitted to be created by written document made or accepted by, Seller and any other Contract, in each case granting a Lien on any Acquired Asset;

(iii)all written agreements with a Governmental Entity (excluding routine correspondence and exchanges), including any Contracts that are settlements, conciliations, or similar agreements, that impose any monetary or other obligations upon Seller after the Closing Date;

(iv)all franchise, distributorship, partnership or joint venture agreements or other agreements involving a sharing of profits and losses by Seller with any other Person;

(v)all agreements for the acquisition or sale of substantially all of the assets or any of the outstanding voting equity securities of any Person or any business and each agreement relating to a merger or consolidation with any Person (other than this Agreement);

(vi)all agreements under which Seller is a lessee of or holds or operates tangible property owned by any other Person, except for any agreement under which the aggregate rental payments would not reasonably be expected to exceed $75,000 in any future 12-month period;

(vii)all agreements under which Seller is a lessor of or permits any Person to hold or operate any tangible property owned or controlled by Seller, except for any agreement under which the aggregate rental payments would not reasonably be expected to exceed $25,000 in any future 12-month period, including Customer Agreements;

(viii)all Customer Agreements;

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(ix)all Assigned Contracts that contain material, express, contractual restrictions on the right of Seller to compete in any material line of the Business; and

(x)all agreements that relate to a settlement, release, compromise or waiver of any material rights, claims, obligations, duties or Liabilities that relate primarily to the Business.

(b)Each Material Contract that is an Acquired Asset (i) is in full force and effect and (ii) is the valid and binding obligation of Seller, enforceable in accordance with its terms against Seller and, to Seller’s Knowledge, against the other parties thereto (in each case, subject to proper authorization and execution of such Material Contract by the other party thereto and any applicable bankruptcy, insolvency, reorganization, moratorium or other Laws affecting generally the enforcement of creditors’ rights and subject to general principles of equity). Except as set forth on Section 3.5(b) of the Disclosure Schedules, (A) neither Seller, nor to Seller’s Knowledge, any other party thereto is in material breach of or material default under any Material Contract that is an Acquired Asset, and to Seller’s Knowledge, no party thereto has given to any other party thereto written notice alleging that such a material breach or material default occurred, (B) no event has occurred that (with or without the passage of time or giving of notice) would constitute a material breach or material default of, or permit any early termination, modification, acceleration or cancellation of, a Material Contract that is an Acquired Asset or of any material right or obligation thereunder, (C) Seller has not waived any material right under any Material Contract that is an Acquired Asset and (D) no party to a Material Contract that is an Acquired Asset has terminated or canceled such Material Contract or any material right or obligation thereunder or communicated to Seller in writing such party’s intent to do so. Except as set forth on Section 3.5(b) of the Disclosure Schedules, correct and complete copies of the Material Contracts that are Acquired Assets, including all material amendments thereto, in the possession of Seller have been made available to Buyer.

Section 3.6.Absence of Changes. Except as set forth on Section 3.6 of the Disclosure Schedules, since January 1, 2024, through the Closing Date, Seller and its Affiliates have operated the Business in the ordinary course of business consistent with past practice, and in connection with the Business:

(a)neither Seller nor any Affiliate of Seller has sold, leased, transferred, licensed or assigned any Acquired Asset, excluding any Inventory sold in the ordinary course of business consistent with past practice;

(b)neither Seller nor any Affiliate of Seller has experienced any damage, destruction or loss (whether or not covered by insurance) to any Acquired Assets, individually or in the aggregate, in excess of $150,000;

(c)neither Seller nor any Affiliate of Seller has canceled, compromised, waived or released any rights constituting Acquired Assets or claim or any payment owed to it, in any case, involving more than $50,000 in the aggregate;

(d)neither Seller nor any Affiliate of Seller has modified, changed or terminated any Material Contract;

(e)neither Seller nor any Affiliate of Seller has adopted a plan or agreement of complete or partial liquidation, dissolution, merger, consolidation, restructuring, recapitalization, or other material reorganization;

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(f)neither Seller nor any Affiliate of Seller has made any material capital expenditures that would constitute an Assumed Liability;

(g)neither Seller nor any Affiliate of Seller has (i) changed any of its practices or procedures with respect to the collection of accounts receivable or the payment of accounts payable; (ii) delayed or postponed the payment of any material accounts payable or other material liabilities of Seller with respect to the Business; or (iii) accelerated the collection of material notes or material accounts receivable of Seller with respect to the Business in advance of the dates when the same would have been collected in the ordinary course of business; and

(h)neither Seller nor any Affiliate of Seller has agreed or committed to any of the foregoing.

Section 3.7.Litigation. Except as set forth on Section 3.7 of the Disclosure Schedules, there are no judgments, decrees, lawsuits, actions, claims, arbitrations, injunctions or other legal proceedings (excluding routine correspondence with regulators) (each, a “Proceeding”) pending or, to Seller’s Knowledge, threatened, against Seller or any of its Affiliates, whether at law or in equity, whether civil, administrative or criminal in nature or by or before any arbitrator or Governmental Entity, relating to the Business, the Acquired Assets or the Assumed Liabilities. Except as set forth on Section 3.7 of the Disclosure Schedules, neither Seller nor any of its Affiliates is identified as a party that is subject to any restriction or limitation on its operation of the Business under any judgment, order, decree, settlement or injunction of any Governmental Entity.

Section 3.8.Permits; Compliance with Applicable Law.

(a)Seller and its Affiliates have all permits, licenses, approvals, certificates and other authorizations of and from, and have made all declarations and filings with, all Governmental Entities (collectively, the “Permits”) required to be held by it under existing Laws for the operation and ownership of the Projects and the Business as they are currently constructed and operated and for the sale of electric energy therefrom (collectively, the “Business Permits”), except to the extent that failure to obtain any Business Permit would not reasonably be expected to be material to the applicable Project (or the Business), and all Business Permits are in full force and effect; provided that no representation is made with respect to Permits that may be required to be obtained by Buyer with respect to its ownership of the Acquired Assets. All Business Permits are listed in Section 3.8(a) of the Disclosure Schedules and copies of all Business Permits have been provided to Buyer except, in each case, for any Business Permit the absence of which would not reasonably be expected to be material to Seller, its Affiliates, or a Project. To Seller’s Knowledge, no event has occurred that would reasonably be expected to result in any material adverse modification, revocation or termination of any Business Permit. Section 3.8(a) of the Disclosure Schedules lists all (i) Business Permits that cannot be transferred pursuant to applicable Law and (ii) all notices and consents required to be obtained for the valid and effective transfer or continuation of all Permits included in the Acquired Assets pursuant to Section 2.1(a)(v).

(b)Except as set forth on Section 3.8(b) of the Disclosure Schedules, (i) Seller and its Affiliates are in compliance in all material respects with all Laws applicable to the conduct of the Business as currently conducted or the ownership and use of the Acquired Assets, including those relating to maintaining Permits required of Seller and its Affiliates to conduct the Business as currently conducted and, to Seller’s Knowledge, no facts or circumstances exist which will cause Seller or any of its Affiliates to violate or fail to comply in any material respect with any such Laws, as in effect as of the Closing Date, in the future (as Seller currently operates) and (ii) no notice has been received by Seller or any of its

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Affiliates from any Governmental Entity, alleging that Seller or any of its Affiliates is not in compliance in any material respect with any Law applicable to the conduct of the Business as currently conducted or the ownership and use of the Acquired Assets. Except as listed in Section 3.8(b) of the Disclosure Schedules, neither Seller nor any of its Affiliates is subject to any investigation or other proceeding by a Governmental Entity with respect to violations of any Laws applicable to the Business or the ownership and use of the Acquired Assets nor is there, to Seller’s Knowledge, any basis for any such investigation or proceeding.

Section 3.9.Regulatory Status. Each Project listed in Section 2.1(a) of the Disclosure Schedules is interconnected directly to the Customer under the Project’s respective Customer Agreement.

Section 3.10.Projects.

(a)Section 3.10 of the Disclosure Schedules contains a true, complete and correct list of the following Contracts relating to the Projects to which Seller or any of its Affiliates is a party or any of the Acquired Assets are bound, in each case, only to the extent that such Contract is in effect or, if not in effect, has any obligations following the Closing, except as would not reasonably be expected to be material to Seller or its Affiliates (collectively the “Project Contracts”):

(i)any Contract for the design, engineering, construction, installation or procurement of a Project (or any material portion or equipment thereof) and all associated warranties (including equipment warranties);

(ii)any operation and maintenance agreement, asset management agreement, data acquisition systems services agreement, or similar agreement or Contract relating to Seller, its Affiliates, or a Project;

(iii)all Contracts for the interconnection of a Project with the local electric distribution system;

(iv)all Customer Agreements; and

(v)any Contract for the sale or transfer of energy or RECs produced by a Project (whether in the form of electricity sales, sale or transfer of bill credits, or otherwise).

(b)Except as set forth on Section 3.10 of the Disclosure Schedules, each of the Project Contracts is, to Seller’s Knowledge, binding on the parties thereto and is in full force and effect. Except as set forth on Section 3.10 of the Disclosure Schedules, neither Seller, nor any of Seller’s Affiliates, nor (to Seller’s Knowledge) any counterparty thereto, is in material breach of such Project Contract and no event or circumstance has occurred and is continuing that with the giving of notice or the passage of time or both would be reasonably expected to give rise to a material breach.

Section 3.11.Environmental Matters. Seller’s and its Affiliates’ operation of the Business and the Acquired Assets is and has been in compliance in all material respects with all Environmental Laws, including with respect to all permits, licenses and other authorizations required pursuant to Environmental Laws. Neither Seller nor any Affiliate of Seller has received, with respect to the Business or the Acquired Assets, any notice of any violation of, or Liability under, any Environmental Law, nor does Seller or any Affiliate of Seller have any unresolved Liability under any Environmental Law, except for such notices or Liabilities that would not reasonably be expected to have a Material Adverse Effect. Seller has furnished to Buyer copies of all environmental audits, assessments and reports and all other

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material environmental documents relating to the Business or the Acquired Assets, in each case which are in the possession, custody or control of Seller or any Affiliate of Seller.

Section 3.12.Insurance.

(a)Section 3.12(a) of the Disclosure Schedules contains a list of (i) all policies of fire, liability, workers’ compensation, director & officer liability, property, casualty and other forms of insurance owned or held by Seller or its Affiliates covering the Business or the Acquired Assets as of the Closing Date (collectively, the “Insurance Policies”), including the insurer, policy name, the scope (including an indication of whether the coverage is a claims made, occurrence or other basis) and the date through which coverage is scheduled to continue pursuant to the terms thereof, and (ii) with respect to the Business, the Acquired Assets and the Assumed Liabilities, all pending claims under the Insurance Policies. All of the Insurance Policies will remain in the name of Seller or its Affiliates after Closing, and neither Seller nor any of its Affiliates shall have any obligation to transfer, maintain, own or hold any of the Insurance Policies.

(b)Except as set forth on Section 3.12(b) of the Disclosure Schedules, (i) neither Seller nor any Affiliate of Seller has made any claim related to the Business, the Acquired Assets or the Assumed Liabilities under any of the Insurance Policies during the two-year period prior to the Closing Date with respect to which an insurer has, in a written notice to Seller or an Affiliate of Seller, questioned, denied or disputed or otherwise reserved its rights with respect to coverage, and (ii) no insurer has threatened to cancel any of the Insurance Policies or provided any written notice of any material increase of premiums with respect to, or cancellation or non-renewal of, any of the Insurance Policies.

Section 3.13.Tax Matters.

(a)Except as set forth on Section 3.13(a) of the Disclosure Schedules, Seller represents with respect to the Business and the Acquired Assets:

(i)Seller and its Affiliates have filed all Tax Returns required to be filed by it or with respect to the Business and the Acquired Assets and all such Tax Returns are true, correct and complete in all material respects and were prepared in substantial compliance with applicable Law;

(ii)Seller and its Affiliates have paid in full all Taxes due and payable by it or with respect to the Business or the Acquired Assets (whether or not shown on any Tax Return) to the appropriate Tax authority;

(iii)Neither Seller nor its Affiliates have consented to extend the time, and are not the beneficiary of any extension of time, in which any Tax may be assessed or collected by any taxing authority with respect to the Business and the Acquired Assets other than automatic extensions of time to file Tax Returns obtained in the ordinary course of business;

(iv)no claim has ever been made by an authority in a jurisdiction where Seller or any of its Affiliates does not file Tax Returns that it is or may be subject to taxation by that jurisdiction with respect to the Business and the Acquired Assets;

(v)with respect to sales made with respect to the Business and the Acquired Assets, Seller and its Affiliates (i) have properly collected and remitted sales, use, gross receipts, and other excise Taxes or (ii) have properly received and retained any appropriate Tax exemption

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certificates and other documentation for such sales that qualify such sales as exempt from such Taxes;

(vi)there is no dispute, audit, investigation, written request for information, assessment, deficiency, examination, claim or other similar proceeding concerning any Tax liability of Seller or any of Seller’s Affiliates with respect to the Business and the Acquired Assets either claimed by any authority in writing that has not been resolved or finally settled;

(vii)the Acquired Assets do not include any stock or other ownership interests in any corporations, partnerships, joint ventures, limited liability companies, business trusts, or other entities;

(viii)there are no Liens for Taxes (other than Permitted Liens) upon the Business or the Acquired Assets;

(ix)Seller is not a “foreign person” as that term is used in Treasury Regulations Section 1.1445-2;

(x)Neither Seller nor any of its Affiliates has any Liability for the Taxes of any Person (other than Seller, or any of its Affiliates, as the case may be) as a transferee or successor, by Contract (other than Commercial Agreements) or otherwise by operation of Law; and

(xi)Seller and its Affiliates have deducted and withheld and paid all Taxes to the appropriate Governmental Entity that were required to have been deducted or withheld and paid in connection with amounts paid or owing to any employee, independent contractor, creditor, equityholder, or other third party or its activities, properties or employees, and all Forms W-2 and 1099 (or other applicable information reporting forms) required with respect thereto have been properly completed and timely filed.

(b)Nothing in this Section 3.13 or otherwise in this Agreement shall be construed (i) as a representation or warranty with respect to the amount, availability and/or utilization of any net operating loss, capital loss, Tax credits, Tax basis or other Tax asset or attribute of the Acquired Assets, Business, or Seller or any of its Affiliates or (ii) other than with respect to Section 3.13(a)(x),to apply to any in any taxable period (or portion thereof) beginning after the Closing Date or any Tax position that Buyer or its Affiliates may take in respect of any taxable period (or portion thereof).

Section 3.14.Brokers. Except as set forth on Section 3.14 of the Disclosure Schedules, no broker, finder, financial advisor or investment banker is entitled to any broker’s, finder’s, financial advisors, investment banker’s fee or commission or similar payment in connection with the Transactions based upon arrangements made by or on behalf of Seller or its Affiliates.

Section 3.15.Real and Personal Property; Title to and Sufficiency of Acquired Assets.

(a)Neither Seller nor any Affiliate of Seller has real property or leased real property related to the Business, in each case, included in the Acquired Assets;

(b)Except as disclosed on Section 3.15(b) of the Disclosure Schedules,

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(i)Seller has good and valid title to all Tangible Personal Property and to the Trademarks, in each case to the extent included in the Acquired Assets;

(ii)Seller has good and valid title to, or a valid and enforceable license or other right to use, all of the other Acquired Assets; and

(iii)the Acquired Assets are owned by Seller free and clear of all Liens (other than Permitted Liens).

(c)Except for the Excluded Assets or as disclosed on Section 3.15(c) of the Disclosure Schedules, the Acquired Assets constitute all of the properties, assets and rights necessary to operate the Business in substantially the same manner as conducted on the Closing Date, except for those services and assets offered or to be provided pursuant to the Transition Services Agreement and other Ancillary Documents and other arrangements between Buyer, on the one hand, and Seller and its Affiliates, on the other hand.

(d)The Tangible Personal Property is in good operating condition and repair (ordinary wear and tear excepted) and is adequate for the uses to which it is being put immediately prior to the Closing.

Section 3.16.Transactions with Affiliates. Except as set forth on Section 3.16 of the Disclosure Schedules and except for amounts due under normal arrangements applicable to all employees generally as to compensation or reimbursement of ordinary business expenses, to Seller’s Knowledge, no director, officer, employee or Affiliate of Seller (i) owns, leases, licenses or has an interest in, directly or indirectly, in whole or in part, any Acquired Asset or (ii) is a party to any Assigned Contract, in either circumstance, other than as a Customer pursuant to a Customer Agreement that is substantially in the form of a Customer Agreement attached to Section 3.20(l) of the Disclosure Schedules.

Section 3.17.Third Party Use of Databases. Except as set forth on Section 3.17 of the Disclosure Schedules, neither Seller nor any Affiliate of Seller has sold, assigned, leased or otherwise transferred to, or permitted the use by, or disclosed to (or authorized, permitted or suffered to incur any such sale, assignment, lease, transfer, use or disclosure) (a “Use”) any third party, any list of past or present customers of the Business except in the ordinary course of business and on terms consistent with prior practice.

Section 3.18.Business Accounts Receivable. Except as set forth on Section 3.18 of the Disclosure Schedules, all of the Business Accounts Receivable of Seller (a) represent bona fide arm’s length sales in the ordinary course of business consistent with past practice, (b) to Seller’s Knowledge are valid and genuine for the aggregate amount thereof, subject to normal and customary trade discounts, less any reserves for doubtful accounts and newsstand return reserves recorded on the Financial Statements, (c) to Seller’s Knowledge constitute valid claims of Seller, free and clear of all Liens, and (d) are not subject to any valid claims of set-off or other defense or counterclaims. Except as set forth on Section 3.18 of the Disclosure Schedules, since the date of the Most Recent Balance Sheet, there have not been any write-offs as uncollectible of any Business Accounts Receivable of Seller.

Section 3.19.Inventory. Except as set forth on Section 3.19 of the Disclosure Schedules, all Inventory reflected in the Most Recent Balance Sheet is the property of Seller, free and clear of any Liens (other than Permitted Liens), has not been pledged as collateral, is not held on consignment from others and conforms in all material respects to all standards applicable to each item of Inventory or its use or sale imposed by Governmental Entities.

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Section 3.20.Solar Assets.

(a)Section 3.20(a) of the Disclosure Schedules (“Schedule of Solar Assets”) is a complete and correct list of all Solar Asset Information.

(b)Except as set forth on Section 3.20(b) of the Disclosure Schedules, the terms of the related Customer Agreement have not been amended, waived, extended, or modified in any respect, other than in writing that has been provided to Buyer.

(c)Except as set forth on Section 3.20(c) of the Disclosure Schedules, the related Customer Agreement is not, to Seller’s Knowledge, a Defaulted Solar Asset or a Terminated Solar Asset. To Seller’s Knowledge, the Customer associated with such Customer Agreement is not a Customer for any other Customer Agreement that was originated, acquired and/or serviced by Seller or any Affiliate that would meet the definition of Defaulted Solar Asset.

(d)Except as set forth on Section 3.20(d) of the Disclosure Schedules, a minimum of one payment due under the related Customer Agreement has been made prior to the Closing Date.

(e)Except as set forth on Section 3.20(e) of the Disclosure Schedules, the related PV System has not been turned off, and remains off as of the Closing Date, due to a Customer delinquency under the Customer Agreement.

(f)Except as set forth on Section 3.20(f) of the Disclosure Schedules, no Customer has notified Seller of any Affiliate thereof of any material existing defects in such Customer’s PV System which have an adverse impact on the operation of such PV System and are not in the process of being investigated, addressed or repaired by Seller or any Affiliate thereof.

(g)Except as set forth on Section 3.20(g) of the Disclosure Schedules, the related Customer Agreement has not been satisfied, subordinated, or rescinded and no lawsuit is pending with respect to such related Customer Agreement.

(h)Except as set forth on Section 3.20(h) of the Disclosure Schedules, there are, to Seller’s Knowledge, no unpaid fees owed to third parties relating to the origination of the related Customer Agreement and installation of the related PV System.

(i)Except as set forth on Section 3.20(i) of the Disclosure Schedules, the related PV System has achieved PTO.

(j)Except as set forth on Section 3.20(j) of the Disclosure Schedules, the Customer is not, to Seller’s Knowledge, a debtor in a bankruptcy case. To Seller’s Knowledge, Customer has not commenced any litigation or asserted any claim in writing challenging the validity or enforceability of the related Customer Agreement.

(k)Except as set forth on Section 3.20(k) of the Disclosure Schedules, Seller has legal and equitable title to the related PV Systems free and clear of all liens and encumbrances, except for Permitted Liens.

(l)Except as set forth on Section 3.20(l) of the Disclosure Schedules, the related Customer Agreement is substantially in the form of a Customer Agreement attached to Section 3.20(l) of the Disclosure Schedules.

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(m)Except as set forth on Section 3.20(m) of the Disclosure Schedules, all Manufacturer Warranties relating to the related Customer Agreement and the related PV System are in full force and effect and can be enforced by the owner of the PV System in accordance with their terms, except with respect to those Manufacturer Warranties that are no longer being honored by the relevant manufacturer with respect to all customers generally, and except as such enforceability may be limited by applicable bankruptcy, reorganization, insolvency, moratorium, fraudulent conveyance or other laws affecting creditors’ rights generally, now or hereafter in effect and except as such enforceability may be limited by general principles of equity (whether considered at law or in equity).

(n)Except as set forth on Section 3.20(n) of the Disclosure Schedules, the related Customer Agreement and any amendments or modifications were created in paper form or an electronic form and Seller has possession and control of the “authoritative copy” (as contemplated by Section 9-105 of the UCC), of such Customer Agreement.

(o)Neither Seller nor any Affiliate thereof has filed a protective UCC fixture filing in respect of the related PV System.

(p)Seller has obtained each consent necessary to assign the related Customer Agreement, if and to the extent required thereby.

(q)The origination of the related Customer Agreement and installation of the related PV Systems was in compliance in all material respects with the applicable Laws, including applicable consumer protection Laws, at the time such Customer Agreement was originated and such PV System was installed, as applicable.

(r)The related PV System was installed on a residential home or building located in the State of New Jersey and, to the Seller’s Knowledge, one or more of the Consumers under the related Customer Agreement was the owner of the real property on which the PV System is installed at the time such Customer Agreement became effective.

(s)For all related Customer Agreements with an origination date of January 1, 2014 or after, as of the origination date of the related Customer Agreement, the related Customer had a FICO score of at least 625.

(t)The related PV System was installed for the related Customer by an installer in compliance with the written design/installation procedures of Seller or its Affiliates.

(u)The related Customer has accepted the related PV System.

(v)The Solar Photovoltaic Panels and Inverters with respect to the related PV System were manufactured or assembled by a vendor set forth on the approved vendor list of Seller or its Affiliates at the time of installation thereof.

Section 3.21.Certain Payments. Except as set forth on Section 3.21 of the Disclosure Schedules, neither Seller nor any director, officer, agent, employee or Affiliate thereof, or any other Person associated with or acting for or on behalf of Seller, any of Seller’s Affiliates, or the Business, has directly or indirectly (a) made any contribution, gift, bribe, rebate, payoff, influence payment, kickback or other payment to any Person, private or public (i) to obtain favorable treatment in securing business, (ii) to pay for favorable treatment for securing business or favorable disposition of a Governmental Entity, (iii) to obtain special concessions or for special concessions already obtained, for or in respect of Seller or

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any Affiliate of Seller, (b) violated (i) the Foreign Corrupt Practices Act of 1977, as amended, or (ii) any applicable state or local anti-bribery statutes or ordinance or (c) established or maintained any fund or asset that has not been recorded in the Books and Records. Except as set forth on Section 3.21 of the Disclosure Schedules, no proceeding is pending, or to Seller’s Knowledge, threatened alleging factors or circumstances that, if found to be true, would constitute a breach of this Section 3.21.

Section 3.22.No Other Representations. Seller acknowledges that, other than as set forth in ARTICLE 4 of this Agreement, neither Buyer nor any of its directors, officers, employees, Affiliates, stockholders, agents or representatives makes or has made any representation or warranty, either express or implied, as to the accuracy or completeness of any of the information provided to Seller or any of its agents, representatives, lenders or Affiliates and, other than to the extent included or reflected in the specific representations and warranties expressly set forth in ARTICLE 4 of this Agreement, the Ancillary Documents and the certificates and other instruments delivered pursuant hereto, no statement contained in any materials provided to Seller relating to the matters described above other than as set forth in ARTICLE 4 of this Agreement shall be deemed to be relied upon by Seller in executing, delivering and performing this Agreement. In entering into this Agreement, except as expressly provided herein, Seller has relied solely upon its independent investigation and analysis of Buyer and Seller acknowledges and agrees that it has not been induced by and has not relied upon any representations, warranties or statements, whether express or implied, made by Buyer or any other Person that are not expressly set forth in ARTICLE 4 of this Agreement, whether or not such representations, warranties or statements were made in writing or orally.

Section 3.23.Limited Guaranty. Attached hereto as Exhibit C is a true, correct and complete copy of the limited guaranty (the “Limited Guaranty”) delivered by NJRC to Buyer concurrently with the execution of this Agreement with respect to certain obligations of Seller under this Agreement as specified therein. The Limited Guaranty is in full force and effect, has not been amended or modified, and constitutes a valid, binding and enforceable obligation of NJRC in favor of Buyer in accordance with its terms, except (i) to the extent that enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting the enforcement of creditors’ rights generally and (ii) that the availability of equitable remedies, including, specific performance, is subject to the discretion of the court before which any proceeding thereof may be brought. There is no breach or default under the Limited Guaranty by NJRC, and no event has occurred, which, with or without notice, lapse of time or both, would constitute a default on the part of NJRC under such Limited Guaranty.

Section 3.24.EXCLUSIVITY OF REPRESENTATIONS AND WARRANTIES. NOTWITHSTANDING THE DELIVERY OR DISCLOSURE TO BUYER OR ITS OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR REPRESENTATIVES OF ANY DOCUMENTATION OR OTHER INFORMATION (INCLUDING ANY FINANCIAL PROJECTIONS OR OTHER SUPPLEMENTAL DATA), EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS ARTICLE 3, SELLER EXPRESSLY DISCLAIMS ANY OTHER REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE, EXPRESS OR IMPLIED, AS TO THE BUSINESS OR THE ACQUIRED ASSETS AND BUYER SHALL SOLELY RELY ON THE REPRESENTATIONS AND WARRANTIES OF SELLER SET FORTH IN THIS ARTICLE 3.

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ARTICLE 4
REPRESENTATIONS AND WARRANTIES OF BUYER

Buyer hereby represents and warrants to Seller as of the Closing Date (except with respect to representations and warranties expressly stated to relate to a specific date, in which case such representations and warranties are, were or will be true and correct as of such date):

Section 4.1.Organization. Buyer is a limited liability company, duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite power and authority to carry on its businesses as now being conducted, except where the failure to have such power or authority would not prevent or materially delay the consummation of the Transactions. Buyer has delivered to Seller copies of its respective Governing Documents as amended and as in effect as of the Closing Date.

Section 4.2.Authority. Buyer has all necessary power and authority to execute and deliver this Agreement and each Ancillary Document to which Buyer is a party and to perform its obligations hereunder and thereunder. The execution and delivery of this Agreement and the performance of its obligations hereunder have been (and the execution and delivery of each of the Ancillary Document to which Buyer is a party and the performance of its obligations thereunder will be) duly authorized by all necessary action on the part of Buyer and no other proceeding (including by its equityholders) on the part of Buyer is necessary to authorize this Agreement and the Ancillary Documents to which Buyer is a party or to consummate the Transactions. No vote of Buyer’s equityholders is required to approve this Agreement or the Ancillary Documents to which Buyer is a party, or for Buyer to consummate the Transactions. This Agreement has been (and the Ancillary Documents to which Buyer is a party will be) duly executed and delivered by Buyer, and constitute a valid, legal and binding agreements of Buyer (assuming that this Agreement has been and the Ancillary Documents to which Buyer is a party will be duly authorized, executed and delivered by each of the other parties thereto), enforceable against Buyer in accordance with their terms, except (i) to the extent that enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting the enforcement of creditors’ rights generally and (ii) that the availability of equitable remedies, including specific performance, is subject to the discretion of the court before which any proceeding thereof may be brought.

Section 4.3.Consents and Approvals; No Violations.

(a)Assuming the truth and accuracy of Seller’s representations and warranties contained in Section 3.4, other than any authorizations, notices or filings required under the HSR Act, no notices to, filings with, or authorizations, consents or approvals of any Person or Governmental Entity are required to be obtained by Buyer in connection with the execution, delivery or performance by Buyer of this Agreement or the Ancillary Documents to which Buyer is a party or the consummation by Buyer of the Transactions.

(b)Neither the execution, delivery or performance by Buyer of this Agreement and the Ancillary Documents to which Buyer is a party nor the consummation by Buyer of the Transactions will (i) conflict with or result in any breach of any provision of Buyer’s Governing Documents, (ii) result in a violation or breach of, conflict with, give rise to or create any right or obligation under or constitute (with or without due notice or lapse of time or both) a default (or give rise to any right of termination, cancellation, acceleration or modification) or the loss of a benefit under any of the terms, conditions or provisions of any material agreement to which Buyer is a party or by which any asset of Buyer is bound,

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or (iii) violate, in any material respect, any Order or Law applicable to Buyer or any of Buyer’s Affiliates or any of their respective properties or assets.

Section 4.4.Litigation. There are no Proceedings pending or threatened against Buyer or any of its Affiliates that challenge, or may have the effect of preventing, delaying, making illegal, or otherwise interfering with, the ability of Buyer to enter into this Agreement or any Ancillary Document or consummate the Transactions. None of Buyer or any of its Affiliates is subject to any Order that challenges, or may have the effect of preventing, delaying, making illegal, or otherwise interfering with, the ability of Buyer to enter into this Agreement or any Ancillary Document or consummate the Transactions.

Section 4.5.Brokers. No broker, finder, financial advisor or investment banker is entitled to any brokerage, finder’s, financial advisor’s or investment banker’s fee or commission or similar payment in connection with the Transactions based upon arrangements made by and on behalf of Buyer or any of its Affiliates.

Section 4.6.Solvency. Immediately after giving effect to the transactions contemplated by this Agreement, Buyer will not (a) be insolvent (either because its financial condition is such that the sum of its debts is greater than the fair value of its assets or because the fair salable value of its assets is less than the amount required to pay its probable liability on its existing debts as they mature), (b) have unreasonably small capital with which to engage in its business or (c) have incurred debts beyond its ability to pay as they become due.

Section 4.7.No Other Representations. Buyer acknowledges that, other than as set forth in ARTICLE 3 of this Agreement, neither Seller nor any of its directors, officers, employees, Affiliates, stockholders, agents or representatives makes or has made any representation or warranty, either express or implied, (x) as to the accuracy or completeness of any of the information provided to Buyer or any of its agents, representatives, lenders or Affiliates or (y) with respect to any projections, forecasts, estimates, plans or budgets of future revenues, expenses or expenditures, future results of operations, future cash flows or future financial condition of the Business provided to Buyer or any of its agents, representatives, lenders or Affiliates, and, other than to the extent included or reflected in the specific representations and warranties expressly set forth in ARTICLE 3 of this Agreement, the Ancillary Documents and the certificates and other instruments delivered pursuant hereto, no statement contained in any materials provided to Buyer relating to the matters described in clause (x) and (y) above other than as set forth in ARTICLE 3 of this Agreement shall be deemed to be relied upon by Buyer in executing, delivering and performing this Agreement. In entering into this Agreement, except as expressly provided herein, Buyer has relied solely upon its independent investigation and analysis of the Business and Buyer acknowledges and agrees that it has not been induced by and has not relied upon any representations, warranties or statements, whether express or implied, made by Seller or any other Person that are not expressly set forth in ARTICLE 3 of this Agreement, whether or not such representations, warranties or statements were made in writing or orally.

Section 4.8.Investigation. Seller has provided Buyer with such access to the facilities, books, records and personnel of the Company as Buyer has deemed necessary and appropriate in order for Buyer to investigate to its satisfaction the Business, the Acquired Assets, and the Assumed Liabilities sufficiently to make an informed investment decision to purchase the Acquired Assets, assume the Assumed Liabilities, and enter into this Agreement. Buyer agrees to purchase the Acquired Assets and assume the Assumed Liabilities on the Closing Date based upon its own investigation, examination and determination with respect thereto as to all matters and without reliance upon any express or implied

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representations or warranties of any nature made by or on behalf of or imputed to Seller, except as expressly set forth in this Agreement or the Ancillary Documents. In connection with Buyer’s investigation of the Business, Buyer may have received, or may receive, from Seller and/or their representatives or Affiliates certain estimates, projections and other forecasts for the Business, and certain business plans and budget information. Buyer acknowledges that (a) there are uncertainties inherent in attempting to make such estimates, projections, forecasts, plans and budgets, (b) Buyer is familiar with such uncertainties, (c) Buyer is taking full responsibility for making its own evaluation of the adequacy and accuracy of all estimates, projections, forecasts, plans and budgets so furnished to it (including the reasonableness of the assumptions underlying such estimates, projections, forecasts, plans and budgets), (d) Buyer shall have no claim against any Person with respect to such estimates, projections, forecasts, business plans and budget information, and (e) Buyer will not assert any claim against Seller or any of its representatives or Affiliates, or hold Seller or any such representatives or Affiliates liable, with respect to such estimates, projections, forecasts, business plans and budget information, except with respect to the representations and warranties expressly set forth in ARTICLE 3 of this Agreement.

Section 4.9.EXCLUSIVITY OF REPRESENTATIONS AND WARRANTIES. NOTWITHSTANDING THE DELIVERY OR DISCLOSURE TO SELLER OR ITS OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR REPRESENTATIVES OF ANY DOCUMENTATION OR OTHER INFORMATION (INCLUDING ANY FINANCIAL PROJECTIONS OR OTHER SUPPLEMENTAL DATA), EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS ARTICLE 4, BUYER EXPRESSLY DISCLAIMS ANY OTHER REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE, EXPRESS OR IMPLIED AND SELLER SHALL SOLELY RELY ON THE REPRESENTATIONS AND WARRANTIES OF BUYER SET FORTH IN THIS ARTICLE 4.

ARTICLE 5
COVENANTS

Section 5.1.Public Announcements. Buyer and Seller shall consult with each other and seek one another’s prior written consent (such consent not to be unreasonably withheld delayed or conditioned) before issuing any press release, or otherwise making any public statements, with respect to the Transactions, and shall not issue any such press release or make any such public statement prior to such consultation and consent; provided, however, that each Party may make, without the other Party’s consent, (a) any such announcement which it in good faith believes, based on advice of counsel, is necessary or advisable in connection with any requirement of Law, it being understood and agreed that each Party shall provide the other Party with copies of any such announcement in advance of such issuance and an opportunity to comment (the content of which such Party making such announcement will in good faith attempt to incorporate), (b) internal announcements to its respective employees, and (c) announcements to direct and indirect owners and investors; provided, further, that Buyer and its Affiliates may disclose the Transactions to its or their actual and potential financing sources, in each case, in Buyer’s or such Affiliate’s ordinary course of business and to the extent such information is subject to customary confidentiality obligations not less restrictive than those set forth in the Confidentiality Agreement. Notwithstanding the immediately preceding sentence, (i) Seller and Buyer (and their respective Affiliates) may make any disclosures required for financial reporting purposes and to the extent included in public releases or announcements made by Seller, Buyer or their respective Affiliates in accordance with the public filing practices of Seller, Buyer or their respective Affiliates or otherwise as required by any listing agreement with any applicable national or regional securities exchange or market, securities Laws (including the Exchange Act), or any other applicable Law; (ii) nothing contained or implied herein shall preclude any Party from releasing any information in connection with enforcing its

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rights under this Agreement or the Ancillary Documents or in connection with the preparation and filing such Party’s Tax Returns; and (iii) a Party and its representatives may make customary “tombstone” or similar announcements concerning the Transactions that do not include the amount of consideration involved hereunder (or any other financial metric such as proceeds, rate of return, or return multiples).

Section 5.2.Post-Closing Access to Records; Retention of Records.

(a)For a period of three years after the Closing Date, during normal business hours and upon reasonable notice, Buyer will promptly provide Seller and its Affiliates and agents reasonable access, at the sole cost and expense of Seller, to its properties, books, records, information, data, employees, and auditors with respect to the Business or the Acquired Assets to the extent relating to (i) any period ending on or before the Closing Date or any matter occurring before the Closing or (ii) the preparation of insurance claims, financial statements, or regulatory or reporting requirements of Seller, or any of its Affiliates, or the defense of any Third-Party Claim, but specifically excluding any Proceeding in which Buyer, any of its Affiliates, or any of their respective successors, on the one hand, and Seller, any of its Affiliates, or any of their respective successors or heirs, on the other hand, are adverse; provided that, except as required by Law, legal process or any listing agreement with or the listing rules of a national securities exchange or trading market, Seller will hold, and will direct its agents to hold, in confidence all confidential or proprietary information to which it has had access to pursuant to this Section 5.2; provided, further, that such access shall not unreasonably interfere with Buyer’s business or operations and Buyer shall not be required to disclose information subject to any attorney-client privilege, work-product doctrine or other applicable privilege or conflict with any confidentiality obligations to which Buyer is bound or any Law applicable to Buyer.

(b)Following the Closing, to the extent included in the Acquired Assets, for a period of three years after the Closing Date (or such longer period as may be required by Law), Buyer shall retain complete and correct originals or copies of the books and records and other information and data of the Business and related operations with respect to pre-Closing periods. If Buyer or any of its Affiliates shall desire to dispose of any of such books and records prior to the expiration of such three-year period in accordance with the record retention policies of Buyer or such Affiliate then in effect, Buyer shall, prior to such disposal, give Seller reasonable prior notice to enable Seller, at Seller’s expense, to segregate and remove such books and records as Seller may select, subject to destruction of correspondence and other similar documents in the ordinary course, in accordance with customary retention policies and applicable Law.

(c)Notwithstanding anything to the contrary contained in this Agreement, for a period of three years after the Closing Date (or such longer period as may be required by Law), Seller shall maintain and provide Buyer and its representatives reasonable access to, those records of Seller and its respective Affiliates insofar as they relate to the Acquired Assets that relate to periods prior to the consummation of the Closing, during normal business hours and upon reasonable notice. If Seller or any of its Affiliates shall desire to dispose of any of such books and records prior to the expiration of such three-year period in accordance with the record retention policies of Seller or such Affiliate then in effect, Seller shall, prior to such disposal, give Buyer reasonable prior notice to enable Buyer, at Buyer’s expense, to segregate and remove such books and records as Buyer may select, subject to destruction of correspondence and other similar documents in the ordinary course, in accordance with customary retention policies and applicable Law.

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Section 5.3.Use of Names.

(a)Except as may be needed by Seller with respect to the post-Closing sale of additional Projects under Section 5.10, as soon as reasonably practicable after the Closing, but no later than 120 days after the Closing, Seller shall, and shall cause its Affiliates to, immediately cease all use of any Business Marks or any Trademarks that are specific to the Business and the continued use of which would be reasonably likely to cause consumers to believe Seller and its Affiliates own and operate the Business after the Closing; accordingly, Seller shall take any commercially reasonable steps necessary to ensure any links between the Business and Seller and its Affiliates are removed, except (i) as permitted by the Transition Services Agreement or any other Ancillary Document or where Buyer has otherwise granted its prior written consent to such use, (ii) to the extent necessary in the good faith performance of any Ancillary Document, including the Transition Services Agreement, or (iii) where included in public releases or announcements made by Seller or its Affiliates in accordance with the public filing practices of Seller or its Affiliates or otherwise as required by any listing agreement with any applicable national or regional securities exchange or market, securities Laws or any other applicable Law.

(b)As soon as reasonably practicable after the Closing, but no later than 120 days after the Closing, Buyer shall cease all use of all of Seller’s and its Affiliates’ Trademarks and all Trademarks that are specific to Seller or any of its Affiliates and the continued use of which would be reasonably likely to cause consumers to believe Seller or its Affiliates are involved in the ownership or operation the Business after the Closing; accordingly, Buyer shall take any commercially reasonable steps necessary to ensure any links between the Business and Seller and its Affiliates are removed, except (i) as permitted by the Transition Services Agreement or any other Ancillary Document or where Seller and its respective Affiliates have otherwise granted prior written consent to such use, (ii) to the extent necessary in the good faith performance of any Ancillary Document, including the Transition Services Agreement, or (iii) where included in public releases or announcements made by Buyer or its Affiliates in accordance with the public filing practices of Buyer or its Affiliates or otherwise as required by any listing agreement with any applicable national or regional securities exchange or market, securities Laws or any other applicable Law.

Section 5.4.Tax Matters.

(a)Transfer Taxes. All property transfer or gains tax, stamp tax, stock transfer tax, bulk sales or other similar Tax imposed with respect to the purchase and sale of the Acquired Assets and assumption of the Assumed Liabilities pursuant to this Agreement (collectively, “Transfer Taxes”), and any penalties or interest or tax return preparation or filing expenses with respect to the Transfer Taxes, will be borne 50% by Buyer and 50% by Seller. The Party required to do so under applicable Law shall prepare and file all Tax Returns for any Transfer Tax and shall remit the Transfer Tax shown as due on each such Tax Return (subject to reimbursement from the other Party for its share of such Transfer Taxes). Such filing Party shall permit the other Party a reasonable amount of time to review and comment on each such Tax Return before filing and shall make such revisions as are reasonably requested by Buyer. Buyer shall otherwise cooperate with Seller in filing all necessary Tax Returns and other documentation with respect to Transfer Taxes.

(b)Tax Contests.

(i)If any Governmental Entity or third-party notifies Buyer or Seller of the existence of (i) any audit, litigation or other proceeding relating to Taxes with respect to the Business or the Acquired Assets for any taxable period ending on or before the Closing Date or

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Straddle Period or (ii) a deficiency in the payment of any Taxes with respect to the Business or the Acquired Assets for any taxable period ending on or before the Closing Date or Straddle Period (each, a “Tax Claim”), or (iii) any pending or threatened Tax audit or assessment challenging the Final Purchase Price Allocation, the Buyer or Seller, as applicable, shall give notice to the other party within fifteen (15) days after receipt of written notice of the Tax Claim or challenge to the Final Purchase Price Allocation.

(ii)Notwithstanding anything to the contrary in this Agreement, Seller and its Affiliates shall have sole control over any audit, litigation or other proceeding relating to Taxes or Tax Returns of Seller or any of its Affiliates which would not reasonably be expected to result in an indemnification obligation of Seller pursuant to ARTICLE 7 (a “Seller Tax Claim”). The conduct of any audit, litigation, other Proceeding or response to a deficiency notice relating to the ITC shall be governed solely by the terms of the Project Leaseback Agreement.

(iii)For Tax Claims which are not Seller Tax Claims:

(A)Seller, at its sole cost and expense, shall control any such Tax Claim (including the settlement or resolution thereof) relating to taxable periods ending on or before the Closing Date. Seller shall (i) control the conduct of such Tax Claim in good faith; (ii) keep Buyer reasonably informed regarding the status of such Tax Claim; (iii) promptly deliver to Buyer, for Buyer’s review and comment, any correspondence to be filed with the Governmental Entity with respect to such Tax Claim; (iv) promptly deliver to Buyer copies of any correspondence received by Seller from a Governmental Entity with respect to such Tax Claim; (v) allow Buyer, at Buyer’s sole cost and expense, to participate in such Tax Claim; and (vi) obtain the prior written consent of Buyer (which consent shall not be unreasonably withheld, conditioned or delayed) before entering into any settlement of such Tax Claim or ceasing to defend such Tax Claim if the resolution of such Tax Claim reasonably could be expected to increase the Tax liability of the Buyer for Tax periods ending on or after the Closing Date. If Buyer elects to participate in such Tax Claim at its own expense, Seller shall take such commercially reasonable actions as are requested in writing by Buyer and reasonably necessary for Buyer to participate in such Tax Claim, provided, however, that such actions shall not require Seller to incur any additional third-party costs or expenses.

(B)Buyer, at its sole cost and expense, shall control any such Tax Claim relating to a Straddle Period. Buyer shall (i) control the conduct of such Tax Claim in good faith; (ii) keep Seller reasonably informed regarding the status of such Tax Claim (including any requests to extend any applicable statutes of limitations); (iii) promptly deliver to Seller, for Seller’s review and comment, any correspondence to be filed with the Governmental Entity with respect to such Tax Claim; (iv) promptly deliver to Seller copies of any correspondence received by Buyer from a Governmental Entity with respect to such Tax Claim; (v) allow Seller, at Seller’s sole cost and expense, to participate in such Tax Claim; and (vi) obtain the prior written consent of Seller (which consent shall not be unreasonably withheld, conditioned, or delayed) before entering into any settlement of such Tax Claim or ceasing to defend such Tax Claim to the extent the resolution of such Tax Claim reasonably could be expected to increase the Tax liability of Seller or its Affiliates or to be the subject of an indemnification obligation of Seller under this Agreement. If Seller elects to participate in such Tax Claim at its own expense, Buyer shall take such commercially reasonable actions as are requested in writing by Seller and reasonably necessary for Seller to participate in such Tax Claim, provided, however, that such actions shall not require Buyer to incur any additional third-party costs or expenses.

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(iv)To the extent of any conflict between Section 7.6 and this Section 5.4(b), the provisions of this Section 5.4(b) shall control.

(c)Cooperation. Each of Buyer and Seller shall cooperate fully, as and to the extent reasonably requested by the other, in connection with the filing of tax returns and any proceeding with respect to Taxes. Such cooperation shall include the retention and (upon request therefor) the provision of records and information reasonably relevant to any such proceeding and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder. Buyer and Seller agree to (i) retain all books and records with respect to Tax matters pertinent to the Business and the Acquired Assets relating to any taxable period beginning on or before the Closing Date until expiration of the statute of limitations of the respective taxable periods plus 90 days, and to abide by all record retention agreements entered into with any Tax authority, and (ii) use commercially reasonable efforts to give the other Party reasonable written notice prior to destroying or discarding any such books and records.

(d)Bulk Sales Laws. Each Party hereto waives compliance by the other Parties with the provisions of any bulk sales, bulk transfer or similar laws of any jurisdiction that may otherwise be applicable with respect to the sale of any or all of the Acquired Assets; provided, however, that any Losses or Taxes relating to such noncompliance shall be treated as an Excluded Tax.

(e)Apportionment of Taxes. For all purposes under this Agreement, (i) all real property Taxes, personal property Taxes and other ad valorem Taxes and similar ad valorem obligations levied with respect to the Businesses or the Acquired Assets for a Straddle Period shall be apportioned between Seller and Buyer as of the Closing based on the number of days of such taxable period ending on and including the Closing Date and the number of days of such taxable period after the Closing Date and (ii) all other Taxes levied with respect to the Businesses or the Acquired Assets for a Straddle Period shall be apportioned between Seller and Buyer as though the taxable year terminated, and based on a closing of the books, at the end of the Closing Date. Seller shall be liable for the proportionate amount of such Taxes that is attributable to the Pre-Closing Tax Period, and Buyer shall be liable for the proportionate amount of such Taxes that is attributable to the Post-Closing Tax Period. Upon receipt after Closing of any bill for real or personal property and other ad valorem Taxes and similar ad valorem obligations relating to the Businesses or the Acquired Assets for a Straddle Period, Seller and Buyer, as applicable, shall present a statement to the other setting forth the amount of reimbursement to which each is entitled under this Section 5.4(e) together with such supporting evidence as is reasonably necessary to calculate the proration amount. The proration amount shall be paid by the Party owing it to the other Party within 20 days after delivery of such statement. In the event that either Seller or Buyer shall make any other payment for which it is entitled to reimbursement under this Section 5.4(e), the other Party shall make such reimbursement promptly but in no event later than 20 days after the presentation of a statement setting forth the amount of reimbursement to which the presenting Party is entitled along with such supporting evidence as is reasonably necessary to calculate the amount of reimbursement. If any amount of such Straddle Period real or personal property and other ad valorem Taxes and similar ad valorem obligations relating to the Businesses or the Acquired Assets are refunded, such refund shall be shared by Buyer and Seller in the manner described above in clause (i).

(f)Seller Consolidated Group. Notwithstanding anything herein to the contrary, neither Buyer nor any Affiliate thereof shall have any right to access or review any income Tax Return or income Tax work papers of Seller or any Affiliate of Seller (including any income Tax Return of any consolidated, combined, affiliated or unitary group that includes Seller, and any pro forma income Tax Return used to create any such Tax Return).

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Section 5.5.Further Assurances. From time to time following the Closing, the Parties shall, and shall cause their respective Affiliates, officers, directors, agents, employees and other representatives to, execute, acknowledge and deliver all such further conveyances, notices, assumptions, releases and acquittances and such other instruments, and shall take such further actions, as may be reasonably necessary or appropriate to assure fully to Buyer and its successors or assigns, all of the properties, rights, titles, interests, estates, remedies, powers and privileges intended to be conveyed to Buyer under this Agreement and the Ancillary Documents and to assure fully to Seller and its respective successors and assigns, the assumption of the Liabilities intended to be assumed by Buyer under this Agreement and the Ancillary Documents, and to otherwise make effective the Transactions.

Section 5.6.Cooperation in Litigation. Buyer and Seller shall (and shall cause their respective Affiliates to) reasonably cooperate with each other at the requesting Party’s expense in the prosecution or defense of any Proceeding arising from or related to the operation of the Business and involving one or more third parties. The Party requesting such cooperation shall pay the reasonable out-of-pocket expenses (excluding internal costs) incurred in providing such cooperation (including reasonable legal fees and disbursements) by the Party providing such cooperation and by its Affiliates and its and their officers, members, directors, employees and agents.

Section 5.7.Standstill. Without Buyer’s or Seller’s consent, as applicable, Seller and Buyer, respectively, shall not, and shall cause their respective Exchange Act Affiliates not to, for a period of two years from the date of this Agreement: (a) purchase or otherwise acquire, or offer, seek, propose, or agree to acquire, ownership (including beneficial ownership as defined in Rule 13d-3 under the Exchange Act) of any (i) securities of the other Party or any of its Exchange Act Affiliates, as applicable (a “Public Counterparty”), or (ii) direct or indirect rights or options to acquire any such securities described in Section 5.7(a)(i) or any securities convertible into any such securities described in Section 5.7(a)(i) (collectively, the securities described in Section 5.7(a)(i) and Section 5.7(a)(ii) are “Securities”); (b) seek or propose, alone or in concert with others, to control or influence in any manner the management, the board of directors or the policies of the Public Counterparty, including a proposal pursuant to Rule 14a-8; (c) make, or in any way participate, directly or indirectly, in any “solicitation” of “proxies” (as such terms are used in the proxy rules under the Exchange Act and the regulations thereunder) to vote, or seek to advise or influence any Person with respect to the voting of any voting securities of a Public Counterparty; (d) make any proposal or any statement regarding any proposal, whether written or oral, to the board of directors of a Public Counterparty or any director or officer of a Public Counterparty or otherwise make any public announcement or proposal whatsoever with respect to any other transaction or proposed transaction between the Parties, any of a Public Counterparty’s security holders, or any of their respective Exchange Act Affiliates, including any acquisition, tender or exchange offer, merger, sale of assets or securities, or other business combination, unless (i) the Public Counterparty’s board of directors or its designated representatives have requested in advance the submission of such a proposal, (ii) such proposal is directed to the Public Counterparty’s board of directors or its designated representatives, and (iii) any public announcement with respect to such proposal is approved in advance by the Public Counterparty’s board of directors; or (e) providing financing (including guarantees), in whole or in part, to any Person with respect to the matters in clauses (a)-(d) above of this Section 5.7.

Section 5.8.Post-Closing Payments. From and after the Closing Date, but subject to the terms of applicable Ancillary Documents, in the event that any payments with respect to the Business are made to a bank account included in the Excluded Assets or otherwise received by Seller or any of its Affiliates, Seller agrees that any such payments received by Seller will be received by Seller in trust for the benefit of Buyer, and Seller will transfer or deliver, or cause to be transferred and delivered to Buyer,

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promptly after the receipt thereof, in accordance with the instructions provided by Buyer, any such payment with respect to the Business.

Section 5.9.Post-Closing Purchase and Sale of SRECs. From and after Closing, but subject to the terms of the Solar Renewable Energy Certificates Agreement (and in case of any conflict, the terms of the Solar Renewable Energy Certificates Agreement shall govern):

(a)Seller shall (or shall cause NJRES to) promptly transfer back to Buyer (or its assignee) any SRECs generated by the Projects in EY2025 and delivered to NJRES’ SA GATS Account in excess of the 45,000 SRECs sold under the Solar Renewable Energy Certificates Agreement.

(b)Seller shall (or shall cause NJRES to) promptly transfer back to Buyer (or its assignee) any SRECs generated by the Projects in EY2026 and delivered to NJRES’ SA GATS Account in excess of the 60,000 SRECs sold under the Solar Renewable Energy Certificates Agreement.

(c)While the Projects are associated with NJRES’ SA GATS Account, Seller shall (and shall cause NJRES to) grant Buyer (and its assignee) the necessary permissions with PJM EIS to view the activity in NJRES’ SA GATS Account.

(d)NJRES shall establish a new GATS Account, or designate an existing NJRES GATS Account and transfer to another GATS Account any generating units in addition to the Projects that are currently associated with the designated GATS Account (in either case, such new or designated GATS Account shall be referred to as “NJRES’ SA GATS Account”), such that the Projects are the only generating units associated with the NJRES’ SA GATS Account.

Section 5.10.Post-Closing Sale of Additional Projects. From and after Closing, Seller shall sell, convey, assign, transfer and deliver to Buyer, and Buyer shall purchase and accept from Seller, all of Seller’s right, title and interest in certain additional electric generating projects, as follows:

(a)At and after Closing, Seller will send and deliver to Buyer a list of “Customer Agreements” between Seller and additional Customers with respect to which the related electric generating unit (i) was not listed as a Project on Section 2.1(a) of the Disclosure Schedules because it had not achieved PTO by October 28, 2024, but has since achieved PTO; or (ii) has not achieved PTO. Seller may amend the list up until and including forty-five (45) days after the Closing Date, at which time the list shall be deemed final (the “Section 5.10 Schedule of Additional Projects”).

(b)The Section 5.10 Schedule of Additional Projects may not include any Customer Agreements presented by Seller’s installation channel partners (each an “Installer”) in partially executed form by the Customer, to Seller for countersignature, more than thirty (30) days after the Closing Date.

(c)Seller shall promptly notify Buyer in writing after an electric generating unit associated with a Customer Agreement listed on the Section 5.10 Schedule of Additional Projects achieves PTO and upon such notice such electric generating unit shall be deemed in all respects a “PV System”, “Project” and “Solar Asset” under this Agreement, sold, conveyed, assigned, transferred and delivered to Buyer as of the PTO date, and the Schedule of Solar Assets and Section 2.1(a) of the Disclosure Schedules (with respect to Projects) shall be deemed amended to include such additional Project(s).

(d)With respect to each additional Project that is sold and transferred under this Section 5.10, except as set forth in the corresponding section of the Disclosure Schedules, Seller hereby

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repeats mutatis mutandis to Buyer as of the PTO date those representations and warranties contained in this Agreement that are applicable to a “Customer”, “Customer Agreement”, “Project”, “Solar Asset”, and “PV System”.

(e)Each additional Project sold under this Section 5.10 shall be in all respects a “Leaseback Project”, included under the Project Leaseback Agreement, and Section 2.7 of the Disclosure Schedules shall be deemed amended to include such additional Leaseback Project.

(f)Buyer shall pay to Seller $2,410 per kW or portion thereof of the installed capacity of each additional Project sold and delivered to Buyer in excess of 210 kW under this Section 5.10. Seller shall invoice Buyer for payments no more than once monthly. For the avoidance of doubt, Buyer shall not pay Seller any additional amounts for the first 210 kW of incremental capacity sold and delivered to Buyer by Seller.

(g)In the event that Seller sells less than 210kW of installed capacity of additional Projects to Buyer pursuant to this Section 5.10, Seller shall pay to Buyer an amount in cash, by wire transfer of immediately available funds to an account specified by Buyer, equal to (i) (A) 210kW minus (B) the actual amount of installed capacity of additional Projects sold to Buyer pursuant to this Section 5.10multiplied by (ii) $2,410.

(h)For avoidance of doubt, prior to Seller’s sale and delivery of a completed additional Project to Buyer under this Section 5.10, Seller shall be responsible for all costs and expenses related to the development and construction of the Project, including paying its Installers.

Section 5.11.Delivery of Abbreviated Audited Financial Statements. No later than seventy (70) days following the Closing Date, Seller shall deliver to Buyer (a) the abbreviated audited financial statements of operations of the Business, subject to adjustments, for the twelve-month periods ending on September 30, 2023 and September 30, 2024, and (ii) the abbreviated audited financial balance sheets, subject to adjustments, for the Business as of September 30, 2023 and September 30, 2024 (collectively, the “Financial Statements”). The Financial Statements will (i) have been prepared in accordance with Seller’s accounting policies in effect from time to time and (ii) fairly present, in all material respects, the financial position of the Business as of the dates thereof and the results of operations for the periods then ended. The Books and Records will form the basis for the Financial Statements.

ARTICLE 6
CLOSING DELIVERABLES

Section 6.1.Seller Closing Deliverables. At the Closing, Seller shall deliver, or cause to be delivered, to Buyer the following:

(a)a certified copy of the resolutions of the board of directors, managers or other governing body of Seller authorizing the execution and delivery of the Agreement and the consummation of the Transactions;

(b)a duly completed and executed IRS Form W-9 from Seller (or, if Seller is a disregarded entity, the entity that is treated as owning Seller’s assets for federal income Tax purposes);

(c)a copy of the Assignment and Assumption Agreement duly executed by Seller;

(d)a copy of the Bill of Sale duly executed by Seller;

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(e)a copy of the Project Leaseback Agreement duly executed by Seller;

(f)a copy of the Solar Renewable Energy Certificates Agreement duly executed by NJRES;

(g)a copy of the Transition Services Agreement duly executed by Seller;

(h)evidence reasonably satisfactory to Buyer that (i) all lease agreements, and all security interests, indebtedness or Liens (other than Permitted Liens) created or granted on any Acquired Asset shall have been irrevocably discharged, released or terminated (including by the filing of uniform commercial code termination statements), (ii) all of the Acquired Assets owned by Seller as “lessor” have been irrevocably transferred to Seller, as of the Closing Date, free and clear of all Liens other than Permitted Liens; and (iii) any and all intercompany loans have been irrevocably discharged in full;

(i)evidence reasonably satisfactory to Buyer that the Project Contracts to which Seller or an Affiliate thereof is a party have been terminated or assigned to Buyer or a Subsidiary, as applicable;

(j)the Limited Guaranty duly executed by NJRC;

(k)documentation reasonably satisfactory to Buyer that all Acquired Assets have been assigned to Seller by NJR Clean Energy Ventures Corporation, an Affiliate of Seller;

(l)a duly completed and executed New Jersey Division of Taxation Form ST-4 Sales Tax Exempt Use Certificate; and

(m)such other documents, instruments and certificates as Buyer may reasonably request and are reasonably necessary to consummate the Transactions contemplated by this Agreement.

Section 6.2.Buyer Closing Deliverables. At the Closing, Buyer shall:

(a)pay to Seller the Base Purchase Price pursuant to Section 2.3;

(b)deliver to Seller:

(i)a certified copy of the resolutions of the board of directors, managers or other governing body of Buyer authorizing the execution and delivery of the Agreement and the consummation of the Transactions;

(ii)a copy of the Assignment and Assumption Agreement duly executed by Buyer;

(iii)a copy of the Bill of Sale duly executed by Buyer;

(iv)a copy of the Project Leaseback Agreement duly executed by Buyer;

(v)a copy of the Solar Renewable Energy Certificates Agreement duly executed by Borrower;

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(vi)a copy of the Transition Services Agreement duly executed by Spruce Power;

(vii)a duly completed and executed (A) New Jersey Division of Taxation Form ST-3 Sales Tax Resale Certificate and (B) New Jersey Division of Taxation Form ST-4 Sales Tax Exempt Use Certificate; and

(viii)such other documents, instruments and certificates as Seller may reasonably request and are reasonably necessary to consummate the Transactions contemplated by this Agreement.

ARTICLE 7
SURVIVAL OF REPRESENTATIONS, WARRANTIES AND COVENANTS; INDEMNIFICATION

Section 7.1.Survival.

(a)The Fundamental Representations shall survive the Closing and continue in full force and effect thereafter until 6:00 p.m., New York City time, on the date that is 60 days after the expiration of the applicable statute of limitations (as extended).

(b)Except as provided in Section 7.1(a) above, the representations and warranties contained in ARTICLE 3 and ARTICLE 4 of this Agreement shall survive the Closing and continue in full force and effect thereafter until the date that is 18 months following the Closing Date.

(c)Indemnification Claims pursuant to Section 7.2(c) or Section 7.3(c) shall survive the Closing and continue in full force and effect thereafter until 6:00 p.m., New York City time, on the date that is the six years following the Closing Date.

(d)All covenants and agreements contained herein will survive the Closing until fully performed in accordance with their terms or for their stated term, as applicable.

(e)No Indemnification Claim may be asserted against any Party under Section 7.2 or Section 7.3 unless written notice describing such Indemnification Claim has been given to such Party in accordance with Section 7.6 on or prior to the date on which the representation, warranty, covenant or agreement on which such Indemnification Claim is based ceases to survive as set forth in this Section 7.1. Notwithstanding anything to the contrary, if written notice of an Indemnification Claim has been given to the Indemnitor in accordance with Section 7.6 prior to the expiration of the applicable survival period set forth in this Section 7.1 for the representation, warranty, covenant or agreement, then the applicable Indemnification Claim shall not thereafter be barred by the expiration of the relevant representation, warranty, covenant or agreement and such Indemnification Claim shall survive until finally resolved.

(f)Notwithstanding anything to the contrary, Indemnification Claims based on Fraud shall survive the Closing hereunder and continue in full force and effect until 6:00 p.m., New York City time, on the date that is the six yearsfollowing the Closing Date.

Section 7.2.Indemnification by Seller. From and after the Closing and subject to the limitations set forth in Section 7.4, Seller (and with respect to the Solar Renewable Energy Certificates Agreement, NJRES) shall indemnify, defend and hold harmless Buyer and its Affiliates and their respective successors and permitted assigns, officers, employees, directors, equityholders, members,

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managers and partners (collectively, the “Buyer Indemnitees”) against Losses, incurred by the Buyer Indemnitees as a result of, arising out of, in connection with or relating to any and all of the following:

(a)any breach of any representation or warranty of Seller contained in this Agreement or of NJRES contained in the Solar Renewable Energy Certificates Agreement;

(b)any breach of any covenant or agreement of Seller contained in this Agreement or of NJRES contained in the Solar Renewable Energy Certificates Agreement; and

(c)any Excluded Liability, including, for the avoidance of doubt, any Excluded Taxes.

Section 7.3.Indemnification by Buyer. From and after the Closing and subject to the limitations set forth in Section 7.4, Buyer shall indemnify, defend and hold harmless Seller, its Affiliates and their respective successors and permitted assigns, officers, employees, directors, equityholders, members, managers and partners (collectively, the “Seller Indemnitees”) against all Losses incurred by the Seller Indemnitees as a result of, arising out of, in connection with or relating to any and all of the following:

(a)any breach of any representation or warranty of Buyer contained in this Agreement or the Solar Renewable Energy Certificates Agreement;

(b)any breach of any covenant or agreement of Buyer contained in this Agreement or the Solar Renewable Energy Certificates Agreement; and

(c)the Assumed Liabilities.

Section 7.4.Limitations on Rights of Indemnification.

(a)Seller shall not be required to indemnify the Buyer Indemnitees pursuant to Section 7.2(a) unless and until the aggregate amount of Losses incurred by the Buyer Indemnitees thereunder exceeds $750,000 (the “Basket Amount”), in which event the Buyer Indemnitees shall be entitled to recover only Losses in excess of the Basket Amount (subject to the other applicable provisions of this Agreement); provided, however, that the Basket Amount shall not apply to Indemnification Claims for Losses incurred, suffered or sustained by any Buyer Indemnitee as a result of, arising out of, in connection with or relating to any breach or inaccuracy of the Fundamental Representations.

(b)The maximum liability of Seller to the Buyer Indemnitees pursuant to Section 7.2(a) shall not exceed $15,000,000 (the “Basic Cap”), except with respect to Indemnification Claims for Losses incurred, suffered or sustained by any Buyer Indemnitee as a result of, arising out of, in connection with or relating to any breach or inaccuracy of the Fundamental Representations.

(c)The maximum liability of Seller to the Buyer Indemnitees pursuant to Section 7.2 shall not exceed an amount equal to the Purchase Price, except with respect to Indemnification Claims for Losses incurred, suffered or sustained by any Buyer Indemnitee pursuant to Section 7.2(c).

(d)Buyer shall not be required to indemnify the Seller Indemnitees under Section 7.3(a) unless and until the aggregate amount of all such Losses incurred by the Seller Indemnitees thereunder exceeds the Basket Amount, in which event the Seller Indemnitees shall be entitled to recover all Losses from the first dollar of Loss.

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(e)The maximum liability of Buyer to the Seller Indemnitees pursuant to Section 7.3(a) shall not exceed the Basic Cap.

(f)The maximum liability of Buyer to the Seller Indemnitees pursuant to Section 7.3 shall not exceed an amount equal to the Purchase Price, except with respect to Indemnification Claims for Losses incurred, suffered or sustained by any Seller Indemnitee based on Section 7.3(c).

(g)Notwithstanding anything to the contrary herein, there shall be no maximum liability with respect to (i) Indemnification Claims brought by Buyer Indemnitees pursuant to Section 7.2(c) or (ii) Indemnification Claims brought by Seller Indemnitees pursuant to Section 7.3(c).

(h)Solely for calculating the amount of any Losses arising out of or resulting from any breach of any representation or warranty of Seller contained in this Agreement, but not for the purpose of determining whether such breach has occurred, the references to “material,” “in all material respects,” “Material Adverse Effect” or other materiality qualifications (or correlative terms), including as expressed in accounting concepts, shall be disregarded; provided that, for all purposes under this Agreement, the representations and warranties of the parties contained in this Agreement shall be read to include such terms and phrases as used in that portion of any representation or warranty that requires Seller to provide lists in the Disclosure Schedules.

(i)No right of indemnification under this ARTICLE 7 shall be limited by reason of any investigation or audit conducted before or after the Closing or the knowledge of any Party of any breach of representation, warranty, covenant or agreement by another Party at any time, or the decision of any Party to complete the Closing. Notwithstanding anything to the contrary herein, Buyer shall have the right, irrespective of any knowledge or investigation of Buyer, its Affiliates, agents or representatives, to rely fully on the representations, warranties, covenants and agreements of Seller contained herein.

Section 7.5.No Limitation on Claims for Fraud. Notwithstanding anything herein to the contrary, nothing contained in this Agreement shall constitute a waiver of any Indemnification Claim based on Fraud, and, except as set forth in Section 7.1(f), any Indemnification Claims based on Fraud shall not be subject to any limitations contained in this Agreement.

Section 7.6.Indemnification Procedures.

(a)Any Party entitled to indemnification under this Agreement (each, an “Indemnitee”) shall promptly (i) notify or cause to be notified the Party required to provide indemnification under this Agreement (the “Indemnitor”) and (ii) deliver or cause to be delivered to the Indemnitor a written notice describing in reasonable detail (to the extent known but, at a minimum, with sufficient detail so as to provide the Indemnitor with actual notice of the underlying issue) the nature of the Indemnification Claim and, if available, a reasonable estimate of the amount of Losses reasonably expected to arise from such Indemnification Claim. Failure to notify the Indemnitor in accordance with this Section 7.6(a) shall not relieve the Indemnitor of any liability that it may have to the Indemnitee, except to the extent the defense of such Indemnification Claim is materially prejudiced by the Indemnitee’s failure to give or cause to be given such notice. With respect to an Indemnification Claim that is not a Third-Party Claim, the Indemnitor shall notify the Indemnitee within 30 days following its receipt of such notice if the Indemnitor disputes its liability to the Indemnitee under this ARTICLE 7, and if the Indemnitor does not so notify the Indemnitee, the Indemnitor shall be deemed to have rejected such claim, in which case the Indemnitee shall have the right to seek any and all available remedies in respect thereof on the terms and subject to the provisions of this Agreement.

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(b)If any third party notifies a Party of a matter (a “Third-Party Claim”) which may give rise to an Indemnification Claim, then the Indemnitee shall (i) notify or cause to be notified the Indemnitor and (ii) deliver or cause to be delivered to the Indemnitor a written notice describing in reasonable detail (to the extent known) the nature of the Third-Party Claim and, if available, a reasonable estimate of the amount of Losses reasonably expected to arise from such Third-Party Claim. Failure to notify the Indemnitor in accordance with this Section 7.6(b) shall not relieve the Indemnitor of any liability that it may have to the Indemnitee, except to the extent the defense of such Third-Party Claim is materially prejudiced by the Indemnitee’s failure to give or cause to be given such notice.

(c)Each Indemnitor shall have the right to participate in, or by giving written notice to each Indemnitee, to assume the defense of any Third-Party Claim at each Indemnitor’s expense and by each Indemnitor’s own counsel reasonably acceptable to the Indemnitees, and the Indemnitees shall cooperate in good faith in such defense; provided that the following conditions must be satisfied: (i) the Indemnitors shall have confirmed in writing, within 30 days after receiving notice of such Third-Party Claim, that they are assuming such defense and the Indemnitors will irrevocably and unconditionally indemnify (subject to Section 7.4) each Indemnitee against any Losses that may result from the Third-Party Claim; (ii) the Indemnitees shall not have given the Indemnitors written notice that they have determined, in the exercise of their reasonable discretion based on advice of counsel, that a conflict of interest between the Indemnitees and the Indemnitors exists and such conflict of interest cannot be waived; (iii) the Third-Party Claim does not involve claims for injunctive or equitable relief, relate to or arise in connection with a criminal proceeding, allege violations of Law, or allege fraud; and (iv) the Indemnitors demonstrate to the Indemnitees’ reasonable satisfaction that, as of such time, the Indemnitors have sufficient financial resources to defend such Third-Party Claim.

(d)If the Indemnitors elect to assume the defense of a Third-Party Claim in accordance with Section 7.6(c), then (i) the Indemnitees may retain separate co-counsel of their choice and otherwise participate in such contest or defense of the Third-Party Claim, which, subject to clause (ii) of this Section 7.6(d), shall be at the Indemnitees’ sole cost and expense; (ii) the Indemnitees shall be entitled to participate with counsel of its own choice, at such Indemnitors’ cost and expense, if the Indemnitees’ legal counsel reasonably determines that representation of both Parties by the same counsel creates an actual conflict of interest, or that such a conflict of interest is likely to arise, under applicable Law or applicable standards of professional conduct for attorneys; (iii) the Indemnitees will not consent to the entry of any judgment on or enter into any settlement with respect to the Third-Party Claim without such Indemnitors’ prior written consent (not to be unreasonably withheld, conditioned or delayed); and (iv) such Indemnitors will not consent to the entry of any judgment on or enter into any settlement with respect to the Third-Party Claim without the Indemnitees’ prior written consent (not to be unreasonably withheld, conditioned or delayed; provided that, for the avoidance of doubt, the Indemnitees may withhold their consent if the settlement of the Third-Party Claim (1) is not entirely indemnifiable by the Indemnitor pursuant to this ARTICLE 7; (2) does not include as an unconditional term thereof a full release of the Indemnitees; (3) imposes any injunctive relief or other restrictions of any kind or nature on any Indemnitee or any admission of wrongdoing by any Indemnitee; or (4) is, in the Indemnitees’ good faith judgment, likely to establish a precedential custom or practice adverse to any Indemnitee or their businesses.

(e)If any condition in Section 7.6(c) is or becomes unsatisfied, then the Indemnitees shall provide prompt written notice to such Indemnitors setting forth in reasonable detail the unsatisfied condition. If such condition is curable and has not been cured by such Indemnitor within 30 days, or if such condition is not capable of being cured, then the Indemnitees may, in good faith and with the advice of legal counsel, assume the defense of and consent to the entry of any judgment on or enter into any

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settlement with respect to the Third-Party Claim with such Indemnitors’ prior written consent (not to be unreasonably withheld, conditioned or delayed). In the event the Indemnitors previously agreed in writing to indemnify the Indemnitees for the Losses associated with such Third-Party Claim, then such Indemnitors will reimburse the Indemnitees promptly and periodically for all costs and expenses (including reasonable attorneys’ fees and expenses) of contesting, defending against and settling the Third-Party Claim. In the event that any Indemnitor elects to not assume the defense of a Third-Party Claim in accordance with Section 7.6(c), such Indemnitor will nevertheless remain responsible for indemnifying the Indemnitees, in accordance with and subject to this ARTICLE 7, for Losses that the Indemnitees suffer resulting from or relating to such Third-Party Claim.

(f)Each Indemnitor shall make available to the applicable Indemnitee any documents and materials in its possession or control that may be necessary to the defense of a Third-Party Claim.

(g)To the extent of any conflict between Section 5.4(b) and this Section 7.6, the provisions of Section 5.4(b) shall control.

Section 7.7.Insurance Proceeds.

(a)The amount of an Indemnitee’s indemnified Losses will be offset by the amount of any insurance proceeds actually recovered from insurers with respect to such Losses; provided that the amount of any such offset will be reduced by the costs of such Indemnitee in pursuing such insurance proceeds (including any deductible) and the amount of any increase to the insurance premiums of such Indemnitee to the extent resulting from such recovery.

(b)If an Indemnitee receives mitigating insurance proceeds for any indemnified Losses after an indemnification payment is made in respect of such Losses, then the Indemnitee will promptly pay to the Indemnitors an amount equal to the mitigating portion of such insurance proceeds, in each case when and to the extent that such insurance proceeds are actually received, less the reasonable costs of such Indemnitee in pursuing such insurance proceeds (including any deductible) and the amount of any increase to the insurance premiums of such Indemnitee to the extent resulting from such recovery. In no event will an Indemnitee be obligated to remit to any Indemnitor any offsetting payment under this Section 7.7(b) in excess of the amount previously paid by such Indemnitor to the Indemnitee in respect of the underlying indemnified Losses.

(c)This Section 7.7 notwithstanding, an Indemnitee may submit and pursue indemnity claims in accordance with this ARTICLE 7, and the Indemnitors will be obligated to indemnify an Indemnitee, before such Indemnitee has realized any available recovery from insurers.

Section 7.8.No Duplication. Any Loss for which indemnification is sought pursuant to this ARTICLE 7 shall be determined without duplication of recovery by reason of the same set of facts giving rise to such Loss constituting a breach of more than one representation, warranty, covenant or agreement.

Section 7.9.Exclusivity of Remedy. Subject to Section 2.4 and Section 8.12, the Parties acknowledge and agree that their sole and exclusive remedy with respect to any and all claims for any breach of any representation, warranty, covenant, agreement or obligation set forth herein or otherwise relating to the subject matter of this Agreement (other than, for the avoidance of doubt, any claims based on Fraud) shall be pursuant to the indemnification provisions set forth in this ARTICLE 7.

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Section 7.10.Adjustments to Purchase Price. All indemnification payments under this ARTICLE 7 shall be treated as adjustments to the Purchase Price for Tax purposes, except as otherwise provided by Law.

ARTICLE 8
MISCELLANEOUS

Section 8.1.Fees and Expenses. Except as otherwise expressly set forth in this Agreement, all fees and expenses incurred in connection with this Agreement and the Transactions, including the fees and disbursements of counsel, financial advisors and accountants, shall be paid by the Party incurring such fees or expenses; provided, however, that each of Buyer and Seller shall be responsible for 50% of the filing fees with respect to the filing made pursuant to the HSR Act.

Section 8.2.Entire Agreement; Assignment. This Agreement and the Ancillary Documents (a) constitute the entire agreement among the Parties with respect to the subject matter hereof and thereof and supersede all other prior agreements and understandings, both written and oral, among the Parties with respect to the subject matter hereof and thereof and (b) shall not be assigned by any Party (whether by operation of law or otherwise), without the prior written consent of the other Party; provided, however, that (i) Buyer may assign its rights hereunder to any Affiliate so long as the assigning party remains liable for such Affiliate’s obligations hereunder, to a lender for collateral purposes or to a future owner of Buyer without requiring the consent of any other Party hereto, and (ii) Seller may, without the prior written consent of any other Party, assign all or any portion of its rights under this Agreement to any Affiliate, except that no such assignment shall relieve the assigning party from the performance of its obligations hereunder. Any attempted assignment of this Agreement not in accordance with the terms of this Section 8.2 shall be void.

Section 8.3.Amendment; Waiver. This Agreement may be amended or modified only by a written agreement executed and delivered by each of the Parties. This Agreement may not be modified or amended except as provided in the immediately preceding sentence and any purported amendment by any Party or Parties effected in a manner which does not comply with this Section 8.3 shall be void. No waiver by any Party of any provision of this Agreement or any default, misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, shall be valid unless the same shall be in writing and signed by the Party making such waiver, nor shall such waiver be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any such prior or subsequent default, misrepresentation, or breach of warranty or covenant. No failure on the part of any Party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof.

Section 8.4.Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in person, by email (to the Email address provided by the relevant Party), by overnight courier, or by registered or certified mail (postage prepaid, return receipt requested) to the other Parties as follows:

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To Seller:

NJR Clean Energy Ventures II Corporation

1415 Wyckoff Road

Wall Township, NJ 07719

Attention: Bill Scharfenberg & John A. Soltesz III

Email: WScharfenberg@NJResources.com & JSoltesz@NJResources.com

with a copy (which shall not constitute notice) to:

Greenberg Traurig, LLP

500 Campus Drive, Suite 400

Florham Park, NJ 07932

Attention: Seth E. Zuckerman & Steven E. Bartz

Email: zuckermans@gtlaw.com & bartzs@gtlaw.com

To Buyer:

Spruce Power

2000 S. Colorado Blvd., Suite 2-825

Denver, CO 80222

Attention: Jon Norling

Email: legal@sprucepower.com

with a copy (which shall not constitute notice) to:

Troutman Pepper Hamilton Sanders LLP

Two California Plaza
250 South Grand Avenue, Suite 3400
Los Angeles, CA 90071
Attention: John J. Leonti, James M. Hipolit & Andrew S. Thurmond

Email: john.leonti@troutman.com; james.hipolit@troutman.com; &

    andrew.thurmond@troutman.com

or to such other address as the Party to whom notice is given may have previously furnished to the others in writing in the manner set forth above.

Section 8.5.Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New Jersey, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New Jersey or any other jurisdiction) that would cause the application of the law of any jurisdiction other than the State of New Jersey.

Section 8.6.Construction; Interpretation. The term “this Agreement” means this Asset Purchase Agreement together with the schedules and exhibits hereto (including the Disclosure Schedules), as the same may from time to time be amended, modified, supplemented or restated in accordance with the terms hereof. The headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement. Unless otherwise indicated to the contrary herein by the context or use thereof: (a) the words, “herein,” “hereto,” “hereof” and words of similar import refer to this Agreement as a whole, including the schedules and exhibits (including the Disclosure Schedules), and not to any particular section, subsection, paragraph,

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subparagraph or clause contained in this Agreement; (b) masculine gender shall also include the feminine and neutral genders, and vice versa; (c) words importing the singular shall also include the plural, and vice versa; (d) the words “include,” “includes” or “including” shall be deemed to be followed by the words “without limitation”; (e) references to “$” or “dollar” or “US$” shall be references to United States dollars; and (f) the word “or” has the inclusive meaning represented by the phrase “and/or.” Unless the context otherwise requires, references herein: (x) to Articles, Sections, Disclosure Schedules, and Exhibits mean the Articles and Sections of, and Disclosure Schedules and Exhibits attached to, this Agreement; (y) to an agreement, instrument, or other document means such agreement, instrument, or other document as amended, supplemented, and modified from time to time to the extent permitted by the provisions thereof; and (z) to a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. When calculating the period of time before which, within which, or following which any act is to be done or step taken pursuant to this Agreement, the date that is the reference date in calculating such period shall be excluded. If the last day of such period is a non-Business Day, the period in question shall end on the next succeeding Business Day. The Exhibits and Schedules (including the Disclosure Schedules) to this Agreement are hereby incorporated and made a part hereof and are an integral part of this Agreement. Matters reflected in the Disclosure Schedules are not necessarily limited to matters required by this Agreement to be reflected in this Disclosure Schedules and such disclosure does not imply that such information is material (or establish or set any standard of materiality) or that such information is responsive to the representations or warranties, and no such information will otherwise broaden the scope of any representation, warranty, or covenant of any Party contained in this Agreement. Any matter set forth in any section of the Disclosure Schedules shall be deemed to be referred to and incorporated in any other section of the Disclosure Schedules to which it is specifically referenced or cross-referenced, and also in all other sections of the Disclosure Schedules to which such matter’s application or relevance is reasonably apparent on its face from the text of the disclosure in the Disclosure Schedules. All references in the Disclosure Schedules to the enforceability of agreements with third parties, the existence or non-existence of third-party rights, the existence or absence of breaches or defaults by third parties or similar matters or statements are intended only to allocate rights and risks between Buyer and Seller and are not intended to be admissions against interests, give rise to any inference or proof of accuracy, be admissible against any Party to this Agreement by any Person who is not a party to this Agreement or give rise to any claim or benefit to any Person who is not a party to this Agreement. In addition, the disclosure of any matter in the Disclosure Schedules is not to be deemed an admission that such matter actually constitutes non-compliance with or a violation of any Law, Permit or Contract or other topic to which such disclosure is applicable. Any capitalized terms used in any Schedule (including the Disclosure Schedules) or Exhibit to this Agreement but not otherwise defined therein shall be defined as set forth in this Agreement. The Parties hereto have participated jointly in the negotiation and drafting of this Agreement and, in the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as jointly drafted by the Parties hereto, no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any provision of this Agreement, and all provisions of this Agreement shall be construed according to their fair meaning and not strictly for or against any Party.

Section 8.7.Parties in Interest. This Agreement shall be binding upon and inure solely to the benefit of each Party and such Party’s heirs, executors, personal representatives, trustees, beneficiaries, successors and permitted assigns and, except as provided in ARTICLE 7, nothing in this Agreement, express or implied, is intended to or shall confer upon any other Person any rights, benefits or remedies of any nature whatsoever under or by reason of this Agreement.

Section 8.8.Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future Laws effective during the term hereof, such provision shall be fully

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severable and this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision never comprised a part hereof; and the remaining provisions hereof shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom. Furthermore, in lieu of such illegal, invalid or unenforceable provision, there shall be added automatically as part of this Agreement, a provision as similar in its terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable.

Section 8.9.Counterparts; Electronic Transmission. This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which together will be deemed to be one and the same agreement. A signed copy of this Agreement delivered by email or other means of Electronic Transmission shall be deemed to have the same legal effect as delivery of an original signature of this Agreement.

Section 8.10.WAIVER OF JURY TRIAL. EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION (I) ARISING UNDER THIS AGREEMENT OR (II) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES IN RESPECT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS RELATED HERETO, IN EACH CASE, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY, OR OTHERWISE. EACH PARTY HEREBY FURTHER AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT THE PARTIES MAY FILE A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

Section 8.11.Jurisdiction and Venue. Each of the Parties (a) submits to the exclusive jurisdiction of the Superior Court of the State of New Jersey and any federal court located in the State of New Jersey, or, if neither of such courts has jurisdiction, any state court of the State of New Jersey having jurisdiction, in any action or proceeding arising out of or relating to this Agreement, (b) agrees that all claims in respect of such action or proceeding may be heard and determined in any such court and (c) agrees not to bring any action or proceeding arising out of or relating to this Agreement in any other court. Each of the Parties waives any defense of inconvenient forum to the maintenance of any action or proceeding so brought and waives any bond, surety or other security that might be required of any other Party with respect thereto. Each Party agrees that service of summons and complaint or any other process that might be served in any action or proceeding may be made on such Party by sending or delivering a copy of the process to the Party to be served at the address of the Party and in the manner provided for the giving of notices in Section 8.4. Nothing in this Section 8.11, however, shall affect the right of any Party to serve legal process in any other manner permitted by Law. Each Party agrees that a final, non-appealable judgment in any action or proceeding so brought shall be conclusive and may be enforced by suit on the judgment or in any other manner provided by Law.

Section 8.12.Specific Performance; Remedies. The Parties agree that irreparable damage for which monetary damages or other legal remedies would not be an adequate remedy would occur in the event that the Parties do not perform their respective obligations under the provisions of this Agreement in accordance with their specific terms or otherwise breach such provisions. Accordingly, the Parties acknowledge and hereby agree that in the event of any breach or threatened breach by any Party of its covenants or obligations set forth in this Agreement, the other Parties will be entitled to seek an injunction or injunctions to prevent or restrain breaches or threatened breaches of this Agreement by such Party, and

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to seek to specifically enforce the terms and provisions of this Agreement to prevent breaches or threatened breaches of, or to enforce compliance with, the covenants and obligations of such Party under this Agreement, in addition to any other remedy to which the other Parties are entitled at Law or in equity. Subject to the limitations set forth in this Section 8.12, each Party hereby agrees not to raise any objections to the availability of the ability to seek the equitable remedy of specific performance or injunctive relief to prevent or restrain breaches or threatened breaches of this Agreement by such Party. Each Party hereby waives (a) any defenses in any Proceeding for specific performance, including the defense that a remedy at Law would be adequate, and (b) any requirement under any Law to post a bond or other security as a prerequisite to obtaining equitable relief. In the event that a Party prevails in any Proceeding commenced to enforce the terms of this Section 8.12, all fees, costs and expenses, including reasonable attorneys’ fees and court costs, incurred by such Party in such Proceeding will be reimbursed by the Party for whom enforcement was sought.

Section 8.13.Waiver of Conflicts. Recognizing that Greenberg Traurig, LLP has acted as legal counsel to Seller and its Affiliates prior to the Closing, and that Greenberg Traurig, LLP may act as legal counsel to Seller and its Affiliates after the Closing, Buyer hereby waives, on its own behalf and on behalf of its Affiliates (and agrees to cause its Affiliates to waive), any conflicts that may arise in connection with Greenberg Traurig, LLP representing Seller and its Affiliates after the Closing as such representation may relate to the Transactions. In addition, all communications involving attorney-client confidences between Seller or any of its Affiliates and Greenberg Traurig, LLP in the course of the negotiation, documentation and consummation of the transactions contemplated hereby shall be deemed to be attorney-client confidences that belong solely to Seller and its Affiliates and shall not be Books and Records. Accordingly, Buyer shall not have access to any such communications, or to the files of Greenberg Traurig, LLP relating to such engagement, whether or not the Closing shall have occurred. Without limiting the generality of the foregoing, upon and after the Closing, (a) Seller and its Affiliates shall be the sole holders of the attorney-client privilege with respect to such engagement and (b) to the extent that files of Greenberg Traurig, LLP in respect of such engagement constitute property of the client, only Seller and its Affiliates shall hold such property rights.

Section 8.14.Time of Essence. With regard to all dates and time periods set forth or referred to in this Agreement, time is of the essence.

Section 8.15.No Successor Liability. It is expressly understood that the Parties intend that Buyer shall not be considered a successor to Seller or any Affiliate of Seller by reason of any theory of Law or equity, and that Buyer shall have no liability for any liability of Seller or any Affiliate of Seller except as otherwise provided in this Agreement.

* * * * *

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IN WITNESS WHEREOF, the undersigned have caused this Asset Purchase Agreement to be duly executed on its behalf as of the Closing Date.

SELLER:

NJR CLEAN ENERGY VENTURES II CORPORATION

By:    /s/ Robert Pohlman     

Name: Robert Pohlman

Title: Vice President

BUYER:

SPRUCE POWER 5, LLC

By:    /s/ Joel Pettit    

Name: Joel Pettit

Title: Vice President, Corporate Development

[Signature Page to Asset Purchase Agreement]

165530988v21

Schedule I

Disclosure Schedules

Schedule I

165530988v21

Exhibit A

Assignment and Assumption Agreement

(See attached.)

Exhibit A

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Exhibit B

Bill of Sale

(See attached.)

Exhibit B

165530988v21

Exhibit C

Limited Guaranty

(See attached.)

Exhibit C

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Exhibit D

Project Leaseback Agreement

(See attached.)

Exhibit D

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Exhibit E

Solar Renewable Energy Certificates Agreement

(See attached.)

Exhibit E

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Exhibit F

Transition Services Agreement

(See attached.)

Exhibit F

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Exhibit G

Maintenance Services Agreement

(See attached.)

Exhibit G

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EX-19.1

Exhibit 19.1

NEW JERSEY RESOURCES CORPORATION

POLICY REGARDING THE PURCHASE AND SALE OF NEW JERSEY RESOURCES CORPORATION SECURITIES

Revision Date: May 10, 2017

In order to assure that directors, officers and employees of NJR and its subsidiaries (collectively referred to as the “Company”) do not violate legal prohibitions on “insider trading” of NJR securities, this policy has been established.

In accordance with the following requirements, it is the policy of the Company that no director, officer or employee should unlawfully use or profit from non-public information about the Company.

A.General Requirements

1.Federal and state securities laws generally impose upon insiders – corporate officers, directors and employees and other fiduciaries – possessing material non-public information a “disclose or abstain” rule. This means that the insider must abstain from trading in the Company’s securities unless the information has been publicly disclosed and sufficient time has elapsed for the information to be “absorbed” by the investing public.

Since insiders are not generally in a position to act on their own to disclose material non-public information without violating their fiduciary duty of confidentiality to the Company and causing the Company substantial harm, the “disclose or abstain” rule should be regarded as imposing an obligation not to trade in Company securities at any time when one is in possession of material non-public information.

2.“Material non-public information” is generally considered to be information, positive or negative, not available to the general public that would be expected to affect the decision of a reasonable investor contemplating whether to purchase, sell or hold Company securities. Information is also material if it could reasonably be expected to have a substantial effect on the market price of the Company’s securities. Information may be material for this purpose even if it would not alone determine the investor’s decision. Whether particular information is “material” at a particular time may involve complex factual and legal analysis, and an. individual should consider as material any information that would be important enough to affect a decision to buy or sell Company securities.

Examples of non-public information which is normally considered to be material includes information related to stock splits and other actions relating to capital structure, possible acquisitions, business combinations or asset sales, major management changes, dividend rate changes, the proposed issue or repurchase of Company securities, information concerning earnings or similar financial information, new major contracts and the commencement of or significant developments in litigation or ratemaking proceedings, as well as other important corporate developments. Such information continues to be “non-public” information until disclosed to the general public.

3.Any director, officer or employee who is in possession of material non-public information is an “insider.” This includes not only directors and officers, but also non-management employees and persons outside the Company, such as spouses, friends, brokers, etc., who may have acquired the “inside” information directly or through tips.

4.In order to assure that directors, officers, employees and other insiders do not violate the legal prohibition on “insider trading,” the following procedures have been established. These procedures should not, however, be viewed as exhaustive, and anyone who is uncertain as to whether a proposed transaction in Company securities would violate these insider trading procedures should consult with the General Counsel before engaging in it. All directors, officers and all others who have regular contact with the Board of Directors of the Company should consult with the General Counsel before engaging in any transactions in Company securities.

B.Specific Requirements

1.Directors, officers and employees shall maintain as confidential and shall not disclose material non-public information to any third party (including members of their families), except as part of an official Company disclosure such as a news release or a required filing with the Securities and Exchange Commission or other federal or state governmental agency.

2.In order to ensure adequate dissemination of financial information to the general public prior to trading, directors, officers, members of the Reporting Committee (the “RC”) and other insiders, in addition to being subject to all of the other limitations in this policy, may only engage in transactions in Company securities during the period commencing on the third business day after public release of annual or quarterly financial information of NJR and ending on the fifth business day before the end of the fiscal quarter (the “Trading Window”). The General Counsel may also require persons in addition to directors, officers and the RC to comply with the restrictions of this paragraph and may determine that no transactions shall take place during all of or a part of the Trading Window. Affected persons shall be notified of any such requirement or determination by the General Counsel.

3.Insiders shall not engage in transactions of NJR securities while in possession of material non-public information. If, at any time during the open Trading Window, a director, officer, member of the RC or other employee of the Company becomes aware of material non-public information, he or she shall immediately notify the General Counsel and further shall refrain from engaging in transaction in Company securities. Such persons may resume transactions in Company securities 48 business hours after the inside information has been publicly disclosed unless they are otherwise prohibited from doing so under this Policy.

4.This Policy shall not prohibit directors, officers or members of the RC (or others who may be subject to restrictions under this Policy) from engaging in the following transactions outside of the Trading Window (“Permissible Transactions”):

•Transactions made under a trading plan adopted pursuant to Securities and Exchange Commission Rule 10b-5(-1)(c) (17 C.F.R. §240.10b5-1(c)) and approved in advance and in writing by the Company’s Legal Department (“10b5-1 Plan”).

•Granting Bona fide gifts of Company stock.

•Exercising options and holding all the shares, (i.e., other than a cashless exercise or any other market sale for the purpose of generating cash needed to pay the exercise price of an option).

•Acquiring shares of Company stock through the dividend reinvestment features of the Company’s Automatic Dividend Reinvestment Plan (DRP), including purchases of shares resulting from a periodic contribution of money to the DRP pursuant to the election made at the time of enrollment in the DRP (voluntary purchases of Company stock resulting from optional cash payments to the DRP and new elections to participate in the plan or increase the amount of cash contributed by payroll deduction to the DRP are not Permissible Transactions).

•Acquiring shares of Company stock through other similar non-discretionary, regular investment programs of the Company such as the Directors’ Deferral Plan or Executive Compensation Deferral Plan.

•Acquiring shares through the Employees’ Retirement Savings Plan (“401(k) Plan”) as a result of periodic contributions to the 401k Plan pursuant to a payroll deduction election. However, the following are not permissible transactions when the Trading Window is closed: Elections made under the 401(k) Plan to (a) increase or decrease the percentage of periodic contributions that will be allocated to the Company stock fund, (b) make an intra-plan transfer of an existing account balance into or out of the Company stock fund, (c) to borrow money against a 401(k) Plan account if the loan will result in a liquidation of some or all of the Company stock fund balance or (d) to pre-pay a plan loan if the prepayment will result in allocation of loan proceeds to the Company stock fund.

A director, officer or employee who has entered into a 10b5-1 Plan must report to the General Counsel (i) all transactions made pursuant to the 10b5-1 Plan and (ii) the completion or termination of the 10b5-1 Plan.

5.No director, officer or member of or subject matter expert to the Benefits Administration Committee of the Company may engage in transactions in any Company securities during any period when all employees are prohibited from engaging in transactions in the 401(k) Plan. Each person subject to this prohibition will be advised in writing prior to the start of any prohibited period.

6.Any questions concerning the interpretation of the foregoing rules, including whether particular information is material or has been publicly disclosed, should be referred to the General Counsel prior to engaging in a transaction in Company securities.

C.Hedging and Other Prohibited Insider Transactions

Directors, officers and employees of NJR and its subsidiaries are prohibited from engaging in short-term and other speculative transactions in NJR’s securities. Specifically, directors, officers and other employees shall not engage in any of the following transactions:1

1 The list of prohibited transactions below is illustrative only and does not include every kind of short-term or other speculative transaction that violates this policy.

1.Short Sales. Short sales of NJR securities demonstrate an expectation on the part of the seller that the securities will decline in value and therefore signal to the market that the seller has no confidence in the Company or its short-term prospects. In addition, short sales may reduce the seller’s incentive to improve the Company’s performance. For these reasons, short sales of NJR securities are prohibited. In addition, Section 16(c) of the Securities Exchange Act of 1934 prohibits officers and directors from engaging in short sales involving their company’s stock.

2.Publicly Traded Options. Publicly traded options generally are instruments in the form of options (puts, calls, etc.) used for hedging and similar transactions that are publicly traded, and do not include the options to buy NJR stock issued by NJR to its directors, officers and employees. A transaction in publicly traded options is, in effect, a bet on the short-term movement of a company’s stock and therefore creates the appearance that the director or employee is trading based on inside information. Transactions in these options also may focus the director’s, officer’s or employee’s attention on short-term performance at the expense of the Company’s long-term objectives. Accordingly, transactions in puts, calls or other derivative securities involving NJR securities, on an exchange or in any other organized market, are prohibited.

3.Hedging Transactions. Certain forms of hedging or monetization transactions (such as zero-cost collars, forward-sale contracts, equity swaps and exchange funds) allow a holder to lock in much of the value of his or her stock holdings, often in exchange for all or part of the potential for upside appreciation in the stock. These transactions allow the director, officer or employee to continue to own the covered securities, but without the full risks and rewards of ownership. When that occurs, the director, officer or employee may no longer have the same objectives as NJR’s other stockholders. For these reasons, hedging or monetization transactions involving NJR securities are prohibited.

4.Margin Accounts. Securities held in a margin account may be sold by the broker without the customer’s consent if the customer fails to meet a margin call. Because a margin sale may occur at a time when the customer is aware of material, non-public information or otherwise is not permitted to trade in NJR securities (based on Section 16 of the Exchange Act that prohibits “short-swing” trading by insiders or otherwise), directors, officers and other employees are prohibited from holding NJR securities in a margin account.

D.Pledges

Directors, officers and certain employees, as designated by the General Counsel, are prohibited from pledging Company securities. If an employee (other than an officer) is prohibited from pledging NJR securities, the General Counsel shall inform the employee accordingly.

EX-21.1

NEW JERSEY RESOURCES CORPORATION

EXHIBIT 21.1

SUBSIDIARIES OF THE REGISTRANT

SUBSIDIARY					STATE OF INCORPORATION
New Jersey Natural Gas Company						New Jersey
NJR Service Corporation						New Jersey
NJR Clean Energy Ventures Corporation						New Jersey
	Subsidiary:
	NJR Energy Services Company, LLC					New Jersey
	NJR Clean Energy Ventures II Corporation					New Jersey
		Subsidiaries:
		Bernards Solar, LLC (Limited Liability Company)				New Jersey
		NJR Clean Energy Ventures III Corporation				New Jersey
		Subsidiaries:
			AR Solar, LLC (Limited Liability Company)			New York
			Canal Road Solar Partners, LLC (Limited Liability Company)			Delaware
			Canoe Brook Solar Partners, LLC (Limited Liability Company)			Delaware
			CleanLight Energy, LLC (Limited Liability Company)			Delaware
			CP East Hampton Solar I, LLC (Limited Liability Company)			Connecticut
			CP East Hampton Solar II, LLC (Limited Liability Company)			Connecticut
			Greenville Road Solar, LLC (Limited Liability Company)			Rhode Island
			Howard Lane Solar, LLC (Limited Liability Company)			Rhode Island
			Kokomo Solar 1, LLC (Limited Liability Company)			Delaware
			LSE Hercules, LLC (Limited Liability Company)			Connecticut
			LSE Pyxis, LLC (Limited Liability Company)			Connecticut
			Maybrook Solar, LLC (Limited Liability Company)			New York
			NHV Solar, LLC (Limited Liability Company)			New Jersey
			NJ Oak Solar, LLC (Limited Liability Company)			Delaware
			Spartan PV 1, LLC (Limited Liability Company)			Delaware
NJR Energy Investments Corporation						New Jersey
	Subsidiary:
	NJR Midstream Holdings Corporation					New Jersey
		Subsidiaries:
		NJR Midstream Company (formerly NJR Pipeline Company)				New Jersey
			Subsidiaries:
			Adelphia Gateway, LLC (Limited Liability Company)			Delaware
			Leaf River Energy Center LLC (Limited Liability Company)			Delaware
				Subsidiary:
				LR Finance LLC (Limited Liability Company)		Delaware
		NJR Storage Holdings Company				Delaware
			Subsidiary:
			NJR Steckman Ridge Storage Company			Delaware
NJR Retail Holdings Corporation						New Jersey
	Subsidiaries:
	Commercial Realty and Resources Corp					New Jersey
	Phoenix Fuel Management Company					New Jersey
	NJR Home Services Company					New Jersey
		Subsidiary:
		NJR Plumbing Services, Inc				New Jersey
	NJR Retail Company					New Jersey

EX-23.1

EXHIBIT 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in Registration Statement Nos. 333-268606 and 333-282327 on Form S-3 and Registration Statement Nos. 333-164572 and 333-215728 on Form S-8 of our reports dated November 26, 2024, relating to the consolidated financial statements of New Jersey Resources Corporation and subsidiaries and the effectiveness of New Jersey Resources Corporation and subsidiaries’ internal control over financial reporting appearing in this Annual Report on Form 10-K for the year ended September 30, 2024.

/s/ Deloitte & Touche LLP

Morristown, New Jersey

November 26, 2024

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

 I, Stephen D. Westhoven, certify that:

1)I have reviewed this report on Form 10-K of New Jersey Resources Corporation;

2)Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3)Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4)The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5)The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	November 26, 2024	By:	/s/ Stephen D. Westhoven
			Stephen D. Westhoven
			President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

 I, Roberto F. Bel, certify that:

1)I have reviewed this report on Form 10-K of New Jersey Resources Corporation;

2)Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3)Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4)The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5)The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	November 26, 2024	By:	/s/ Roberto F. Bel
			Roberto F. Bel
			Senior Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, Stephen D. Westhoven hereby certifies as follows:

(a)I am the Chief Executive Officer of New Jersey Resources Corporation (the "Company");

(b)To the best of my knowledge, this annual report on Form 10-K for the fiscal year ended September 30, 2024, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(c)To the best of my knowledge, based upon a review of this report, the information contained in this periodic report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	November 26, 2024	By:	/s/ Stephen D. Westhoven
			Stephen D. Westhoven
			President and Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, Roberto F. Bel hereby certifies as follows:

(a)I am the Chief Financial Officer of New Jersey Resources Corporation (the "Company");

(b)To the best of my knowledge, this annual report on Form 10-K for the fiscal year ended September 30, 2024, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(c)To the best of my knowledge, based upon a review of this report, the information contained in this periodic report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	November 26, 2024	By:	/s/ Roberto F. Bel
			Roberto F. Bel
			Senior Vice President and Chief Financial Officer

XML

Cover Page - USD ($)

12 Months Ended

Sep. 30, 2024

Nov. 22, 2024

Mar. 31, 2024

Cover [Abstract]

Document Type

10-K

Document Annual Report

true

Document Period End Date

Sep. 30, 2024

Current Fiscal Year End Date

--09-30

Document Transition Report

false

Entity File Number

001-08359

Entity Registrant Name

NEW JERSEY RESOURCES CORPORATION

Entity Incorporation, State or Country Code

NJ

Entity Tax Identification Number

22-2376465

Entity Address, Address Line One

1415 Wyckoff Road,

Entity Address, City or Town

Wall,

Entity Address, State or Province

NJ

Entity Address, Postal Zip Code

07719

City Area Code

(732)

Local Phone Number

938‑1000

Title of 12(b) Security

Common Stock ‑ $2.50 Par Value

Trading Symbol

NJR

Security Exchange Name

NYSE

Entity Well-known Seasoned Issuer

Yes

Entity Voluntary Filers

No

Entity Current Reporting Status

Yes

Entity Interactive Data Current

Yes

Entity Filer Category

Large Accelerated Filer

Entity Small Business

false

Entity Emerging Growth Company

false

ICFR Auditor Attestation Flag

true

Document Financial Statement Error Correction [Flag]

false

Entity Shell Company

false

Entity Public Float

$ 4,220,553,504

Entity Common Stock, Shares Outstanding

99,769,083

Documents Incorporated by Reference

Portions of the registrant’s definitive Proxy Statement for the Annual Meeting of Shareowners (Proxy Statement) to be held on January 21, 2025, are incorporated by reference into Part I and Part III of this report.

Entity Central Index Key

0000356309

Document Fiscal Year Focus

2024

Document Fiscal Period Focus

FY

Amendment Flag

false

XML

Audit Information	12 Months Ended
	Sep. 30, 2024
Audit Information [Abstract]
Auditor Firm ID	34
Auditor Name	Deloitte & Touche LLP
Auditor Location	Morristown, New Jersey

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
OPERATING REVENUES
Utility	$ 1,018,482	$ 1,011,284	$ 1,127,417
Nonutility	778,057	951,710	1,778,562
Total operating revenues	1,796,539	1,962,994	2,905,979
Natural gas purchases:
Related parties	7,147	7,206	7,395
Operation and maintenance	394,636	373,568	361,866
Regulatory rider expenses	60,327	50,542	59,437
Depreciation and amortization	166,567	152,941	129,249
Total operating expenses	1,338,435	1,555,994	2,499,504
OPERATING INCOME	458,104	407,000	406,475
Other income, net	41,553	26,083	22,295
Interest expense, net of capitalized interest	130,275	123,014	85,830
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES	369,382	310,069	342,940
Income tax provision	84,906	49,275	76,195
Equity in earnings of affiliates	5,299	3,930	8,177
NET INCOME	$ 289,775	$ 264,724	$ 274,922
EARNINGS PER COMMON SHARE
Basic (usd per share)	$ 2.94	$ 2.73	$ 2.86
Diluted (usd per share)	$ 2.92	$ 2.71	$ 2.85
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic (in shares)	98,634	97,028	96,100
Diluted (in shares)	99,289	97,627	96,488
Utility
Natural gas purchases:
Gas purchases - Utility and Nonutility	$ 405,332	$ 416,158	$ 547,901
Nonutility
Natural gas purchases:
Gas purchases - Utility and Nonutility	$ 304,426	$ 555,579	$ 1,393,656

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 289,775	$ 264,724	$ 274,922
Other comprehensive income (loss), net of tax
Reclassifications of losses to net income on derivatives designated as hedging instruments, net of tax of $(317), $(317) and $(317), respectively	1,054	1,053	1,054
Adjustment to postemployment benefit obligation, net of tax of $(706), $1,873 and $(8,657), respectively	2,384	(6,186)	28,648
Other comprehensive income (loss), net of tax	3,438	(5,133)	29,702
Comprehensive income	$ 293,213	$ 259,591	$ 304,624

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Tax on reclassifications of losses to net income on derivatives	$ (317)	$ (317)	$ (317)
Tax on adjustment to postemployment benefit obligation	$ (706)	$ 1,873	$ (8,657)

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 289,775	$ 264,724	$ 274,922
Adjustments to reconcile net income to cash flows from operating activities
Unrealized loss (gain) on derivative instruments	19,574	(38,081)	(59,906)
Depreciation and amortization	166,567	152,941	129,249
Amortization of acquired wholesale energy contracts	125	2,271	2,561
Allowance for equity used during construction	(6,874)	(7,137)	(11,243)
Allowance for doubtful accounts	1,229	1,570	2,401
Non-cash lease expense	4,674	3,708	4,850
Deferred income taxes	85,735	30,462	81,659
Equivalent value of ITCs recognized on equipment financing	(15,328)	(6,986)	(7,542)
Manufactured gas plant remediation costs	(23,451)	(9,571)	(17,538)
Cost of removal - asset retirement obligations	(1,727)	(1,526)	(1,289)
Contributions to postemployment benefit plans	(2,659)	(4,706)	(6,785)
Taxes related to stock-based compensation	(1,219)	(588)	(144)
Changes in:
Components of working capital	(61,058)	61,525	(77,687)
Other noncurrent assets and liabilities	(27,956)	30,387	9,972
Cash flows from operating activities	427,407	478,993	323,480
Expenditures for:
Cost of removal	(48,385)	(40,555)	(39,293)
Distribution from equity investees in excess of equity in earnings	2,246	2,294	2,336
Investments in equity investees, net of return of capital	0	0	5,479
Cash flows used in investing activities	(569,073)	(538,625)	(590,613)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term debt	250,000	225,000	360,000
Payments of long-term debt	(125,066)	(71,934)	(68,343)
Proceeds from term loan	0	0	150,000
Payments of term loan	0	(150,000)	0
Proceeds from (payments of) short-term debt, net	39,700	(21,850)	(103,350)
Proceeds from sale leaseback transactions - solar	64,694	167,790	24,071
Proceeds from sale leaseback transactions - natural gas meters	8,814	8,441	17,300
Payments of common stock dividends	(165,063)	(150,973)	(127,704)
Proceeds from waiver discount issuance of common stock	59,730	42,807	0
Proceeds from issuance of common stock - DRP	14,676	14,993	14,745
Tax withholding payments related to net settled stock compensation	(5,724)	(4,577)	(4,177)
Cash flows from financing activities	141,761	59,697	262,542
Change in cash, cash equivalents and restricted cash	95	65	(4,591)
Cash, cash equivalents and restricted cash at beginning of period	1,517	1,452	6,043
Cash, cash equivalents and restricted cash at end of period	1,612	1,517	1,452
CHANGES IN COMPONENTS OF WORKING CAPITAL
Receivables	(12,744)	112,628	(16,658)
Inventories	(11,086)	67,445	(80,801)
Recovery of natural gas costs	734	(14,427)	1,037
Natural gas purchases payable	6,238	(183,772)	66,352
Natural gas purchases payable - related parties	16	8	(10)
Deferred revenue	(39,832)	934	33,802
Accounts payable and other	15,640	7,537	(34,259)
Prepaid expenses	(2,013)	(1,169)	(406)
Prepaid and accrued taxes	(23,517)	16,415	(1,516)
Restricted broker margin accounts	19,535	46,364	(51,165)
Customers’ credit balances and deposits	(6,315)	11,664	660
Other current assets and liabilities	(7,714)	(2,102)	5,277
Total	(61,058)	61,525	(77,687)
Cash paid for:
Interest (net of amounts capitalized)	120,239	108,194	84,375
Income taxes	21,313	4,282	4,252
Accrued capital expenditures	22,535	25,867	34,674
Utility plant
Expenditures for:
Payments to acquire PP&E	(372,019)	(350,304)	(259,081)
Solar equipment
Expenditures for:
Payments to acquire PP&E	(104,287)	(107,303)	(146,676)
Storage and transportation and other
Expenditures for:
Payments to acquire PP&E	$ (46,628)	$ (42,757)	$ (153,378)

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023
PROPERTY, PLANT AND EQUIPMENT
Utility plant, at cost	$ 4,221,395	$ 3,843,037
Construction work in progress	233,295	237,428
Nonutility plant and equipment, at cost	1,834,956	1,767,306
Construction work in progress	206,869	142,768
Total property, plant and equipment	6,496,515	5,990,539
Accumulated depreciation and amortization, utility plant	(786,594)	(714,087)
Accumulated depreciation and amortization, nonutility plant and equipment	(306,698)	(254,397)
Property, plant and equipment, net	5,403,223	5,022,055
CURRENT ASSETS
Cash and cash equivalents	1,017	954
Customer accounts receivable:
Billed	105,531	97,540
Unbilled revenues	20,094	19,100
Allowance for doubtful accounts	(8,506)	(11,036)
Regulatory assets	73,070	73,587
Natural gas in storage, at average cost	199,125	199,501
Materials and supplies, at average cost	38,484	27,022
Prepaid expenses	11,754	9,741
Prepaid taxes	67,066	43,046
Derivatives, at fair value	6,813	30,755
Restricted broker margin accounts	13,243	20,796
Other current assets	26,904	21,071
Total current assets	554,595	532,077
NONCURRENT ASSETS
Investments in equity method investees	101,744	104,134
Regulatory assets	609,192	584,830
Operating lease assets	184,485	175,740
Derivatives, at fair value	806	1,564
Software costs	10,522	8,375
Deferred income taxes	20,751	28,383
Postemployment employee benefit assets	24,660	18,684
Other noncurrent assets	71,667	61,654
Total noncurrent assets	1,023,827	983,364
Total assets	6,981,645	6,537,496
CAPITALIZATION
Common stock, $2.50 par value; authorized 150,000,000 shares; outstanding shares September 30, 2024 — 99,461,448; September 30, 2023 — 97,584,455	248,159	243,458
Premium on common stock	633,811	558,654
Accumulated other comprehensive loss, net of tax	(6,521)	(9,959)
Treasury stock at cost and other; shares September 30, 2024 — 16,302; September 30, 2023 — 13,041	26,220	20,748
Retained earnings	1,298,774	1,177,834
Common stock equity	2,200,443	1,990,735
Long-term debt	2,879,464	2,768,017
Total capitalization	5,079,907	4,758,752
CURRENT LIABILITIES
Current maturities of long-term debt	189,006	116,155
Short-term debt	291,800	252,100
Natural gas purchases payable	57,515	51,277
Deferred revenue	21,572	61,404
Accounts payable and other	169,232	151,790
Dividends payable	44,752	40,981
Accrued taxes	10,593	10,090
Regulatory liabilities	32,981	32,287
New Jersey Clean Energy Program	18,491	15,804
Derivatives, at fair value	6,271	16,145
Restricted broker margin accounts	1,146	8,029
Operating lease liabilities	4,945	4,772
Customers’ credit balances and deposits	38,595	44,910
Total current liabilities	887,774	806,603
NONCURRENT LIABILITIES
Deferred income taxes	358,783	285,427
Deferred investment tax credits	2,156	2,434
Deferred revenue	3,095	659
Derivatives, at fair value	11,490	7,967
Manufactured gas plant remediation	161,650	169,390
Postemployment employee benefit liabilities	64,609	102,528
Regulatory liabilities	175,847	180,458
Operating lease liabilities	159,303	148,023
Asset retirement obligations	66,698	61,993
Other noncurrent liabilities	10,333	13,262
Total noncurrent liabilities	1,013,964	972,141
Commitments and contingent liabilities (Note 14)
Total capitalization and liabilities	6,981,645	6,537,496
Related Party
CURRENT LIABILITIES
Natural gas purchases payable to related parties	$ 875	$ 859

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2024	Sep. 30, 2023
Statement of Financial Position [Abstract]
Common stock, par value (usd per share)	$ 2.50	$ 2.50
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares outstanding (in shares)	99,461,448	97,584,455
Treasury stock at cost and other, shares (in shares)	16,302	13,041

XML

CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY - USD ($) $ in Thousands		Total	Common Stock	Premium on Common Stock	Accumulated Other Comprehensive (Loss) Income	Treasury Stock And Other	Retained Earnings
Balance as of beginning of period (in shares) at Sep. 30, 2021			95,710,000
Balance as of beginning of period at Sep. 30, 2021		$ 1,630,862	$ 240,644	$ 502,584	$ (34,528)	$ (12,448)	$ 934,610
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		274,922					274,922
Other comprehensive income (loss)		29,702			29,702
Common stock issued:
Incentive compensation plan (in shares)			193,000
Incentive compensation plan		9,146	$ 481	8,665
Dividend reinvestment plan (in shares)	[1]		355,000
Dividend reinvestment plan	[1]	14,741	$ 491	8,450		5,800
Cash dividend declared		(142,004)					(142,004)
Treasury stock and other (in shares)			(8,000)
Treasury stock and other		(159)		(2)		(157)
Balance as of end of period (in shares) at Sep. 30, 2022			96,250,000
Balance as of end of period at Sep. 30, 2022		1,817,210	$ 241,616	519,697	(4,826)	(6,805)	1,067,528
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		264,724					264,724
Other comprehensive income (loss)		(5,133)			(5,133)
Common stock issued:
Incentive compensation plan (in shares)			136,000
Incentive compensation plan		5,168	$ 339	4,829
Dividend reinvestment plan (in shares)	[1]		258,000
Dividend reinvestment plan	[1]	15,034	$ 205	6,069		8,760
Waiver discount (in shares)			948,000
Waiver discount		42,807	$ 1,298	28,059		13,450
Cash dividend declared		(154,418)					(154,418)
Treasury stock and other (in shares)			(8,000)
Treasury stock and other		$ 5,343				5,343
Balance as of end of period (in shares) at Sep. 30, 2023		97,584,455	97,584,000
Balance as of end of period at Sep. 30, 2023		$ 1,990,735	$ 243,458	558,654	(9,959)	20,748	1,177,834
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		289,775					289,775
Other comprehensive income (loss)		3,438			3,438
Common stock issued:
Incentive compensation plan (in shares)			154,000
Incentive compensation plan		5,484	$ 385	5,099
Dividend reinvestment plan (in shares)	[1]		346,000
Dividend reinvestment plan	[1]	14,644	$ 864	13,780
Waiver discount (in shares)			1,380,000
Waiver discount		59,730	$ 3,452	56,278
Cash dividend declared		(168,835)					(168,835)
Treasury stock and other (in shares)			(3,000)
Treasury stock and other		$ 5,472				5,472
Balance as of end of period (in shares) at Sep. 30, 2024		99,461,448	99,461,000
Balance as of end of period at Sep. 30, 2024		$ 2,200,443	$ 248,159	$ 633,811	$ (6,521)	$ 26,220	$ 1,298,774

[1] Certain shares sold through the DRP issued from treasury stock are at average cost, which may differ from the actual market price paid.

XML

CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Statement of Stockholders' Equity [Abstract]
Cash dividend declared per share (usd per share)	$ 1.71	$ 1.59	$ 1.4775

XML

NATURE OF THE BUSINESS

12 Months Ended

Sep. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NATURE OF THE BUSINESS

1. NATURE OF THE BUSINESS

The Company provides regulated natural gas distribution services, transmission and storage services and operates certain unregulated businesses primarily through the following:

NJNG provides natural gas utility service to residential and commercial customers throughout Burlington, Middlesex, Monmouth, Morris, Ocean and Sussex counties in New Jersey and is subject to rate regulation by the BPU. NJNG comprises the Natural Gas Distribution segment.

NJRCEV, the Company’s clean energy subsidiary, comprises the CEV segment and owns and operates clean energy projects, including commercial and residential solar installations located in New Jersey, Rhode Island, New York, Connecticut, Michigan and Indiana.

On November 25, 2024, CEV completed the sale of its 91 MW residential solar portfolio, and related assets and liabilities included in The Sunlight Advantage® program to a third party for a total purchase price of $132.5M. See Note 17. Subsequent Events for more information regarding the transaction.

NJRES comprises the ES segment. ES maintains and transacts around a portfolio of natural gas transportation and storage capacity contracts and provides physical wholesale energy, retail energy and energy management services in the U.S.

NJR Midstream Holdings Corporation, which comprises the S&T segment, invests in energy-related ventures through its subsidiaries. The Company operates natural gas storage and transmission assets through the wholly-owned subsidiaries of Leaf River and Adelphia and is subject to rate regulation by FERC. The Company holds a 50% combined ownership interest in Steckman Ridge, located in Pennsylvania, which is accounted for under the equity method of accounting.

NJR Retail Holdings Corporation has one principal subsidiary: NJRHS, which provides heating, central air conditioning, standby generators, solar and other indoor and outdoor comfort products to residential homes throughout New Jersey. NJRHS is included in HSO.

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated.

Other financial investments or contractual interests that lack the characteristics of a voting interest entity, which are commonly referred to as variable interest entities, are evaluated by the Company to determine if the entity has the power to direct business activities and, therefore, would be considered a controlling interest that the Company would have to consolidate. Based on those evaluations, NJR has determined that it does not have any investments in variable interest entities as of September 30, 2024, 2023 and 2022.

Investments in entities over which the Company does not have a controlling financial interest are accounted for under the equity method.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires the Company to make estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingencies during the reporting period. On a quarterly basis, or more frequently whenever events or changes in circumstances indicate a need, the Company evaluates its estimates, including those related to the calculation of equity method investments, lease liabilities, unbilled revenues, allowance for doubtful accounts, provisions for depreciation and amortization, long-lived assets, regulatory assets and liabilities, income taxes, pensions and other postemployment benefits, contingencies related to environmental matters and litigation and the fair value of derivative instruments and debt. AROs are evaluated periodically as required. The Company’s estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources.

The Company has legal, regulatory and environmental proceedings during the normal course of business that can result in loss contingencies. When evaluating the potential for a loss, the Company will establish a reserve if a loss is probable and can be reasonably estimated, in which case it is the Company’s policy to accrue the full amount of such estimates. Where the information is sufficient only to establish a range of probable liability, and no point within the range is more likely than any other, it is the Company’s policy to accrue the lower end of the range. In the normal course of business, estimated amounts are subsequently adjusted to actual results that may differ from estimates.

Revenues

Revenues from the sale of natural gas to NJNG customers are recognized in the period that natural gas is delivered and consumed by customers, including an estimate for unbilled revenue. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the month. At the end of each month, the amount of natural gas delivered to each customer after the last meter reading through the end of the respective accounting period is estimated, and recognizes unbilled revenues related to these amounts. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects, unaccounted-for natural gas and the most current tariff rates.

CEV recognizes revenue when SRECs are transferred to counterparties. SRECs are physically delivered through the transfer of certificates as per contractual settlement schedules. The SREC program officially closed to new qualified solar projects in April 2020.

In December 2019, the BPU established the TREC as the successor to the SREC program. TRECs provide a fixed compensation base multiplied by an assigned project factor in order to determine their value. The project factor is determined by the type and location of the project, as defined.

In July 2021, the BPU established a new successor solar incentive program, or SREC IIs. The ADI Program provides administratively set incentives for net metered projects of 5 MW or less. RECs generated through the production of electricity under this program are known as SREC IIs.

TRECs and SREC IIs generated are required to be purchased monthly by a REC program administrator as appointed by the BPU. Revenue for TRECs and SREC IIs are recognized upon generation and are transferred monthly based upon metered solar electricity activity.

Revenues for ES are recognized when the natural gas is physically delivered to the customer. In addition, changes in the fair value of derivatives that economically hedge the forecasted sales of the natural gas are recognized in operating revenues as they occur. ES also recognizes changes in the fair value of SREC derivative contracts as a component of operating revenues.

During December 2020, ES entered into a series of AMAs with an investment grade public utility to release pipeline capacity associated with certain natural gas transportation contracts, which commenced in November 2021. The AMAs include a series of temporary and permanent releases, and revenue under these agreements is recognized as the performance obligations are satisfied. For temporary releases of pipeline capacity, revenue is recognized on a straight-line basis over the agreed-upon term. For permanent releases of pipeline capacity, which represent a transfer of contractual rights for such capacity, revenue is recognized upon the transfer of the underlying contractual rights. ES recognized $137.2M and $48.5M of operating revenue related to the AMAs on the Consolidated Statements of Operations during fiscal 2024 and 2023, respectively. Amounts received in excess of revenue recognized totaling $22.3M and $58.7M are included in deferred revenue on the Consolidated Balance Sheets as of September 30, 2024 and 2023, respectively.

S&T generates revenues from firm storage contracts and transportation contracts, related usage fees and hub services for the use of storage space, injections and withdrawals from their natural gas storage facility and the delivery of natural gas to customers. Demand fees are recognized as revenue over the term of the related agreement while usage fees and hub services revenues are recognized as services are performed.

Revenues from all other activities are recorded in the period during which products or services are delivered and accepted by customers, or over the related contractual term. See Note 3. Revenue for further information.

Natural Gas Purchases

NJNG’s tariff includes a component for BGSS, which is designed to allow it to recover the cost of natural gas through rates charged to its customers and is typically revised on an annual basis. As part of computing its BGSS rate, NJNG projects its cost of natural gas, net of supplier refunds, the impact of hedging activities and cost savings created by BGSS incentive programs. NJNG subsequently recovers or credits the difference, if any, of actual costs compared with those included in current rates. Any underrecoveries or overrecoveries are either credited to customers or deferred and, subject to BPU approval, reflected in the BGSS rates in subsequent years.

Natural gas purchases at ES are composed of natural gas costs to be paid upon completion of a variety of transactions, as well as realized gains and losses from settled derivative instruments and unrealized gains and losses on the change in fair value of derivative instruments that have not yet settled. Changes in the fair value of derivatives that economically hedge the forecasted purchases of natural gas are recognized in natural gas purchases as they occur.

Demand Fees

For the purpose of securing storage and pipeline capacity in support of their respective businesses, ES and NJNG enter into storage and pipeline capacity contracts, which require the payment of associated demand fees and charges that allow them access to a high priority of service in order to maintain the ability to access storage or pipeline capacity during a fixed time period, which generally ranges from one to 10 years. Many of these demand fees and charges are based on tariff rates as established and regulated by FERC. These charges represent commitments to pay storage providers and pipeline companies for the priority right to transport and/or store natural gas utilizing their respective assets.

The following table summarizes the demand charges, which are net of capacity releases, and are included as a component of natural gas purchases on the Consolidated Statements of Operations for the fiscal years ended September 30:

(Millions)	2024		2023		2022
ES	$	72.6	$	74.6	$	95.4
NJNG	200.4		183.4		170.3
Total	$	273.0	$	258.0	$	265.7

ES expenses demand charges over the term of the service being provided.

NJNG’s costs associated with demand charges are included in its weighted average cost of natural gas. The demand charges are expensed based on NJNG’s BGSS sales and recovered as part of the natural gas commodity component of its BGSS tariff.

Operations and Maintenance Expenses

O&M includes salaries and benefits, materials and supplies, usage of vehicles, tools and equipment, payments to contractors, utility plant maintenance, amortization of software costs for unregulated entities, customer service, professional fees and other outside services, insurance expense, accretion of cost of removal for future retirements of utility assets and other administrative expenses, and are expensed as incurred.

Stock-Based Compensation

Stock-based compensation represents costs related to stock-based awards granted to employees and members of NJR’s Board of Directors. NJR recognizes stock-based compensation based upon the estimated fair value of awards. The recognition period for these costs begins at either the applicable service inception date or grant date and continues throughout the requisite service period. The related compensation cost is recognized as O&M on the Consolidated Statements of Operations. See Note 10. Stock-Based Compensation for further information.

Income Taxes

The Company computes income taxes using the asset and liability method, whereby deferred income taxes are generally determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. See Note 12. Income Taxes. In addition, the Company evaluates its tax positions to determine the appropriate accounting and recognition of future obligations associated with unrecognized tax benefits.

NJR evaluates its tax positions to determine the appropriate accounting and recognition of potential future obligations associated with unrecognized tax benefits. A tax benefit claimed, or expected to be claimed, on a tax return may be recognized if it is more likely than not that the position will be upheld upon examination by the applicable taxing authority. Interest and penalties related to unrecognized tax benefits, if any, are recognized within income tax expense and accrued interest, and penalties are recognized within other noncurrent liabilities on the Consolidated Balance Sheets.

To the extent that NJNG invests in property that qualifies for ITCs, the ITC is deferred and amortized to income over the life of the equipment in accordance with regulatory treatment. ITCs at the unregulated subsidiaries of NJR are recorded on the balance sheet as a reduction to property, plant and equipment when the property is placed in service, and recognized in earnings as a reduction of depreciation expense over the useful lives of the related assets.

Investments in Equity Investees

The Company accounts for its investment in Steckman Ridge using the equity method of accounting where it is not the primary beneficiary, as defined under ASC 810, Consolidation; its respective ownership interests are 50% or less and/or it has significant influence over operating and management decisions. The Company’s share of earnings is recognized as equity in earnings of affiliates on the Consolidated Statements of Operations.

Equity method investments are reviewed for impairment when changes in facts and circumstances indicate that the current fair value may be less than the asset’s carrying amount. If the Company determines the decline in the value of its equity method investment is other than temporary, an impairment charge is recorded in an amount equal to the excess of the carrying value of the asset over its fair value. See Note 7. Investments in Equity Investees for more information regarding impairments.

Property, Plant and Equipment

Property, plant and equipment is stated at original cost. Costs include direct labor, materials and third-party construction contractor costs, capitalized interest and certain indirect costs related to equipment and employees engaged in construction. Utility plant and nonutility plant for Adelphia also includes AFUDC. Upon retirement, the cost of depreciable property, plus removal costs less salvage, is charged to accumulated depreciation with no gain or loss recorded.

Depreciation is computed on a straight-line basis over the useful life of the assets for the Company’s nonutility entities, and using rates based on the estimated average lives of the various classes of depreciable property for NJNG. The composite rate of depreciation used for NJNG was 2.69% of average depreciable property in fiscal 2024, 2.68% in fiscal 2023 and 2.66% in fiscal 2022. The Company recorded $166.6M, $152.9M and $129.2M in depreciation expense during fiscal 2024, 2023 and 2022, respectively.

Property, plant and equipment was comprised of the following as of September 30:

(Thousands)	Estimated
Property Classifications	Useful Lives	2024		2023
Distribution facilities	11 to 54 years	$	3,436,308	$	3,063,111
Transmission facilities	28 to 42 years	656,098		650,817
Storage facilities	27 to 86 years	86,329		85,603
Solar property	15 to 35 years	885,518		864,838
Storage and transportation property	5 to 50 years	929,850		884,647
All other property	5 to 40 years	62,248		61,327
Construction work in progress		440,164		380,196
Total property, plant and equipment		6,496,515		5,990,539
Accumulated depreciation and amortization		(1,093,292)		(968,484)
Property, plant and equipment, net		$	5,403,223	$	5,022,055

Within storage and transportation property, base gas is required to maintain the necessary pressure and to allow for efficient operation of the Leaf River storage facility. The base gas is determined to be recoverable and is considered part of the facility and thus presented as a component in property, plant and equipment. This natural gas is not depreciated, as it is expected to be recovered and sold. As of September 30, 2024 and 2023, the base gas had a cost basis of $21.4M and $20.9M, respectively.

Capitalized and Deferred Interest

NJNG’s base rates include the ability to recover AFUDC on its construction work in progress. For all NJNG construction projects, an incremental cost of equity is recoverable during periods when NJNG’s short-term debt balances are lower than its construction work in progress. For more information on AFUDC treatment with respect to certain accelerated infrastructure projects, see Note 4. Regulation - Infrastructure Programs. Capitalized amounts associated with the debt and equity components of NJNG’s AFUDC are recorded in utility plant on the Consolidated Balance Sheets. Corresponding amounts for the debt component are recognized in interest expense and in other income for the equity component on the Consolidated Statements of Operations.

Adelphia’s base rates include the ability to recover AFUDC on its construction work in progress. Capitalized amounts associated with Adelphia’s AFUDC are recorded in nonutility plant on the Consolidated Balance Sheets. Corresponding amounts for the debt component are recognized in interest expense and in other income for the equity component on the Consolidated Statements of Operations.

Capitalized and deferred interest include the following for the fiscal years ended September 30:

($ in thousands)	2024						2023						2022
AFUDC:	NJNG			Adelphia			NJNG			Adelphia			NJNG			Adelphia
Debt	$	4,729		$	64		$	3,546		$	90		$	1,648		$	4,019
Equity	6,761			113			6,979			158			4,169			7,074
Total	$	11,490		$	177		$	10,525		$	248		$	5,817		$	11,093
Weighted average interest rate	6.48		%	8.28		%	6.41		%	8.28		%	4.91		%	8.28		%

Pursuant to a BPU order, NJNG is permitted to recover carrying costs on uncollected balances related to SBC program costs, which include NJCEP, RAC and USF expenditures. The NJCEP and RAC interest rates change each September based on the August 31 seven-year constant maturity treasury rate plus 60 basis points. The SBC rate was 4.33%, 4.79% and 3.85% for the fiscal years ended September 30, 2024, 2023 and 2022, respectively. Accordingly, other income included $2.6M, $1.8M and $0.9M in the fiscal years ended September 30, 2024, 2023 and 2022, respectively.

CEV capitalizes interest on the allocation of the costs of debt borrowed for the financing of solar investments. Capitalized amounts are included in nonutility plant and equipment on the Consolidated Balance Sheets. Corresponding amounts are recognized in interest expense on the Consolidated Statements of Operations.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on deposit and temporary investments with maturities of three months or less, and excludes restricted cash related to escrow balances for utility plant projects at NJNG, which are recorded in other noncurrent assets on the Consolidated Balance Sheets.

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Consolidated Balance Sheets to the total amounts in the Consolidated Statements of Cash Flows, as of September 30:

(Thousands)	2024		2023		2022
Balance Sheet
Cash and cash equivalents	$	1,017	$	954	$	1,107
Restricted cash in other noncurrent assets	$	595	$	563	$	345
Statements of Cash Flow
Cash, cash equivalents and restricted cash	$	1,612	$	1,517	$	1,452

Allowance for Doubtful Accounts

The Company segregates financial assets, primarily trade receivables and unbilled revenues due in one year or less, into portfolio segments based on shared risk characteristics, such as geographical location and regulatory environment, for evaluation of expected credit losses. Historical and current information, such as average write-offs, are applied to each portfolio segment to estimate the allowance for losses on uncollectible receivables. Additionally, the allowance for losses on uncollectible receivables is adjusted for reasonable and supportable forecasts of future economic conditions, which can include changing weather, commodity prices, regulations and macroeconomic factors, such as unemployment rates, among others.

Loans Receivable

NJNG currently provides loans, with terms ranging from three to 10 years, to customers that elect to purchase and install certain energy-efficient equipment in accordance with its BPU-approved SAVEGREEN program. The loans are recognized at fair value on the Consolidated Balance Sheets. The Company has $18.1M and $15.1M recorded in other current assets and $53.6M and $39.0M in other noncurrent assets as of September 30, 2024 and 2023, respectively, on the Consolidated Balance Sheets, related to the loans. The Company regularly evaluates the credit quality and collection profile of its customers. If NJNG determines a loan is impaired, the basis of the loan would be subject to regulatory review for recovery. As of September 30, 2024 and 2023, the Company has not recorded any impairments for SAVEGREEN loans.

Regulatory Assets & Liabilities

Under cost-based regulation, regulated utility enterprises generally are permitted to recover their operating expenses and earn a reasonable rate of return on their utility investment.

NJNG is subject to accounting requirements resulting from the effects of rate regulation by the BPU. Accordingly, NJNG capitalizes or defers certain costs that are expected to be recovered from its customers as regulatory assets and recognizes certain obligations representing probable future expenditures as regulatory liabilities on the Consolidated Balance Sheets. See Note 4. Regulation for a more detailed description of NJNG’s regulatory assets and liabilities.

Adelphia capitalizes or defers certain costs that are expected to be recovered from its customers as regulatory assets and recognizes certain obligations representing probable future expenditures as regulatory liabilities on the Consolidated Balance Sheets. See Note 4. Regulation for a more detailed description of Adelphia’s regulatory assets and liabilities.

Natural Gas in Storage

Natural gas in storage is reflected at average cost on the Consolidated Balance Sheets and represents natural gas and LNG that will be utilized in the ordinary course of business. The following table summarizes natural gas in storage, at average cost by company, as of September 30:

	2024				2023
($ in thousands)	Natural Gas in Storage			Bcf	Natural Gas in Storage			Bcf
NJNG		$	177,655	30.8		$	175,025	29.1
ES		21,378		13.1		24,476		14.6
S&T		92		—		—		—
Total		$	199,125	43.9		$	199,501	43.7

Derivative Instruments

The Company accounts for its financial instruments, such as futures, options and interest rate contracts, as well as its physical commodity contracts related to the purchase and sale of natural gas at ES, as derivatives, and therefore recognizes them at fair value on the Consolidated Balance Sheets. The Company’s unregulated subsidiaries record changes in the fair value of their financial commodity derivatives in natural gas purchases and changes in the fair value of their physical forward contracts in natural gas purchases or operating revenues, as appropriate, on the Consolidated Statements of Operations. Ineffective portions of the cash flow hedges are recognized immediately in earnings. Cash flows from derivative financial instruments are included in cash flows from operating activities on the Consolidated Statements of Cash Flows.

ASC 815, Derivatives and Hedging, also provides for a NPNS scope exception for qualifying physical commodity contracts for which physical delivery is probable and the quantities delivered are expected to be used or sold over a reasonable period of time in the normal course of business. The Company prospectively applies this normal scope exception on a case-by-case basis to physical commodity contracts at NJNG and PPAs at CEV. When applied, it does not account for these contracts until the contract settles and the related underlying natural gas or power is delivered. Gains and/or losses on NJNG’s derivatives used to economically hedge its regulated natural gas supply obligations, as well as its exposure to interest rate variability, are recoverable through its BGSS, a component of its tariff. Accordingly, the offset to the change in fair value of these derivatives is recorded as a regulatory asset or liability on the Consolidated Balance Sheets. See Note 5. Derivative Instruments for additional details regarding natural gas trading and hedging activities.

Fair values of exchange-traded instruments, including futures and swaps, are based on unadjusted, quoted prices in active markets. The Company’s non-exchange-traded financial instruments, over-the-counter physical commodity contracts at ES and interest rate contracts are valued using observable, quoted prices for similar or identical assets when available. In establishing the fair value of contracts for which a quoted basis price is not available at the measurement date, management utilizes available market data and pricing models to estimate fair values. Fair values are subject to change in the near term and reflect management’s best estimate based on a variety of factors. Estimating fair values of instruments that do not have quoted market prices requires management’s judgment in determining amounts that could reasonably be expected to be received from, or paid to, a third party in settlement of the instruments. These amounts could be materially different from amounts that might be realized in an actual sale transaction.

During fiscal 2020, the Company entered into treasury lock transactions to fix the benchmark treasury rate associated with debt issuances for NJNG and NJR that occurred during the fiscal year. Settlement of the NJNG treasury locks resulted in a loss, which was recorded as a component of regulatory assets on the Consolidated Balance Sheets and will be amortized in earnings over the term of the debt as a component of interest expense on the Consolidated Statements of Operations. NJR designated its treasury lock contracts as cash flow hedges; therefore, changes in fair value of the effective portion of the hedges were recorded in OCI. Settlement of the treasury locks resulted in a loss, which was recorded within OCI and is amortized into earnings over the term of the associated debt as a component of interest expense on the Consolidated Statements of Operations.

Software Costs

The Company capitalizes certain costs, such as software design and configuration, coding, testing and installation, that are incurred to purchase or create and implement computer software for internal use. Capitalized costs include external costs of materials and services utilized in developing or obtaining internal-use software and payroll and payroll-related costs for employees who are directly associated with and devote time to the internal-use software project. Maintenance costs are expensed as incurred. Upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Amortization is recorded on the straight-line basis over the estimated useful lives.

The following table presents the software costs included in the Consolidated Financial Statements, as of September 30:

(Thousands)	2024		2023
Balance Sheets
Utility plant, at cost	$	133,158	$	51,282
Construction work in progress	$	26,659	$	55,012
Nonutility plant and equipment, at cost	$	344	$	344
Accumulated depreciation and amortization, utility plant	$	(13,632)	$	(7,480)
Accumulated depreciation and amortization, nonutility plant and equipment	$	(48)	$	(36)
Software costs	$	10,522	$	8,375
Statements of Operations
Operation and maintenance	$	13,087	$	14,299
Depreciation and amortization	$	6,164	$	4,130

Long-lived Assets

The Company reviews the recoverability of long-lived assets and finite-lived intangible assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable, such as significant adverse changes in regulation, business climate or market conditions, including prolonged periods of adverse commodity and capacity prices. If there are changes indicating that the carrying value of such assets may not be recoverable, an undiscounted cash flows test is performed. If the sum of the expected future undiscounted cash flows is less than the carrying amount of the asset, an impairment loss is recognized by reducing the recorded value of the asset to its fair value.

Factors that the Company analyzes in determining whether an impairment in its long-lived assets exists include: a significant decrease in the market price of a long-lived asset; a significant adverse change in the extent in which a long-lived asset is being used in its physical condition; legal proceedings or other contributing factors; significant business climate changes; accumulations of costs in significant excess of the amounts expected; a current-period operating or cash flow loss combined with a history of such events; and current expectations that more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its estimated useful life. During fiscal 2024 and 2023, there were no events or circumstances that indicated that the carrying value of long-lived assets or finite-lived intangibles was not recoverable.

Debt Issuance Costs

Debt issuance costs are capitalized and amortized as interest expense on a basis which approximates the effective interest method over the term of the related debt. Debt issuance costs are presented as a direct deduction from the carrying amount of the related debt. See Note 9. Debt for the total unamortized debt issuance costs that are recorded as a reduction to long-term debt on the Consolidated Balance Sheets.

Sale Leasebacks

NJNG utilizes sale leaseback arrangements as a financing mechanism to fund certain of its capital expenditures related to natural gas meters, whereby the physical asset is sold concurrent with an agreement to lease the asset back. These agreements include options to renew the lease or repurchase the asset at the end of the term. As NJNG retains control of the natural gas meters, these arrangements do not qualify as a sale. Proceeds from sale leaseback transactions are accounted for as financing arrangements and are included in long-term debt on the Consolidated Balance Sheets.

In addition, for certain of its commercial solar energy projects, the Company enters into lease agreements that provide for the sale of commercial solar energy assets to third parties and the concurrent leaseback of the assets. For sale leaseback transactions where the Company has concluded that the arrangement does not qualify as a sale as the Company retains control of the underlying assets, the Company uses the financing method to account for the transaction. Under the financing method, the Company recognizes the proceeds received from the buyer-lessor that constitute a payment to acquire the solar energy asset as a financing arrangement, which is recorded as a component of debt on the Consolidated Balance Sheets.

The Company continues to operate its solar assets and is responsible for related expenses and entitled to retain the revenue generated from RECs and energy sales. ITCs and other tax attributes associated with these solar projects transfer to the buyer; however, the payments are structured so that CEV is compensated for the transfer of the related tax attributes. Accordingly, CEV recognizes the equivalent value of the tax attributes in other income on the Consolidated Statements of Operations over the respective five-year ITC recapture periods, starting with the second year of the lease.

See Note 9. Debt for more details regarding sale leaseback transactions recorded as financing arrangements.

Environmental Contingencies 

Loss contingencies are recorded as liabilities when it is probable a liability has been incurred and the amount of the loss is reasonably estimable in accordance with accounting standards for contingencies. Estimating probable losses requires an analysis of uncertainties that often depend upon judgments about potential actions by third parties. Accruals for loss contingencies are recorded based on an analysis of potential results.

With respect to environmental liabilities and related costs, NJNG periodically, and at least annually, performs an environmental review of MGP sites, including a review of potential liability for investigation and remedial action. NJNG’s estimate of these liabilities is based upon known facts, existing technology and enacted laws and regulations in place when the review was completed. Where it is probable that costs will be incurred, and the information is sufficient to establish a range of possible liability, NJNG accrues the most likely amount in the range. If no point within the range is more likely than the other, it is NJNG’s policy to accrue the lower end of the range. The actual costs to be incurred by NJNG are dependent upon several factors, including final determination of remedial action, changing technologies and governmental regulations, the ultimate ability of other responsible parties to pay and any insurance recoveries. NJNG will continue to seek recovery of MGP-related costs through the RAC. If any future regulatory position indicates that the recovery of such costs is not probable, the related non-recoverable costs would be charged to income in the period of such determination. See Note 14. Commitments and Contingent Liabilities for more details.

Pension and Postemployment Plans

The Company has two noncontributory defined pension plans covering eligible employees, including officers. Benefits are based on each employee’s years of service and compensation. The Company’s funding policy is to contribute annually to these plans at least the minimum amount required under the Employee Retirement Income Security Act, as amended, and not more than can be deducted for federal income tax purposes. Plan assets consist of equity securities, fixed-income securities and short-term investments.

The Company also provides two primarily noncontributory medical and life insurance plans for eligible retirees and dependents. Medical benefits, which make up the largest component of the plans, are based upon an age and years-of-service vesting schedule and other plan provisions. Funding of these benefits is made primarily into Voluntary Employee Beneficiary Association trust funds. See Note 11. Employee Benefit Plans for a more detailed description of the Company’s pension and postemployment plans.

Asset Retirement Obligations

The Company recognizes AROs related to the costs associated with cutting and capping NJNG’s main and service natural gas distribution mains, which is required by New Jersey law when taking such natural gas distribution mains out of service. The Company also recognizes AROs associated with CEV’s solar assets when there are decommissioning provisions in lease agreements that require removal of the asset at the end of the lease term.

AROs are initially recognized when the legal obligation to retire an asset has been incurred and a reasonable estimate of fair value can be made. The discounted fair value is recognized as an ARO liability with a corresponding amount capitalized as part of the carrying cost of the underlying asset. The obligation is subsequently accreted to the future value of the expected retirement cost, and the corresponding asset retirement cost is depreciated over the life of the related asset. Accretion expense associated with CEV’s AROs are recognized as a component of operations and maintenance expense on the Consolidated Statements of Operations. Accretion amounts associated with NJNG’s AROs are recognized as part of its depreciation expense, and the corresponding regulatory asset and liability will be shown gross on the Consolidated Balance Sheets.

Estimating future removal costs requires management to make significant judgments because most of the removal obligations span long time frames and removal may be conditioned upon future events. Asset removal technologies are also constantly changing, which makes it difficult to estimate removal costs. Accordingly, inherent in the estimate of AROs are various assumptions including the ultimate settlement date, expected cash outflows, inflation rates, credit-adjusted risk-free rates and consideration of potential outcomes where settlement of the AROs can be conditioned upon events. In the latter case, the Company develops possible retirement scenarios and assigns probabilities based on management’s reasonable judgment and knowledge of industry practice. Accordingly, AROs are subject to change. The following is an analysis of the change in the Company’s ARO for the fiscal years ended September 30:

(Thousands)	Balance at October 1		Accretion	Additions	Change in assumptions	Retirements	Balance at period end
2024
NJNG	$	55,285	3,039	152	2,925	(1,727)	$	59,674
NJRCEV	$	6,708	236	79	—	—	$	7,023
2023
NJNG	$	49,874	2,693	155	4,089	(1,526)	$	55,285
NJRCEV	$	5,161	213	1,334	—	—	$	6,708

Accretion for the next five years, for the fiscal years ended September 30, is estimated to be as follows:

(Thousands)	2025		2026	2027	2028	2029	Total
Estimated Accretion	$	3,403	3,573	3,751	3,948	4,165	$	18,840

Accumulated Other Comprehensive Income

The following table presents the changes in the components of accumulated other comprehensive income, net of related tax effects:

(Thousands)	Cash Flow Hedges		Postemployment Benefit Obligation			Total
Balance as of September 30, 2022	$	(8,322)	$	3,496		$	(4,826)
Other comprehensive income, net of tax
Other comprehensive income, before reclassifications, net of tax of $0, $1,922 and $1,922, respectively	—		(6,350)			(6,350)
Amounts reclassified from accumulated other comprehensive income, net of tax of $(317), $(49) and $(366), respectively	1,053		164		(1)	1,217
Net current-period other comprehensive income, net of tax of $(317), $1,873 and $1,556, respectively	1,053		(6,186)			(5,133)
Balance as of September 30, 2023	$	(7,269)	$	(2,690)		$	(9,959)
Other comprehensive income, net of tax
Other comprehensive income, before reclassifications, net of tax of $0, $(1,002) and $(1,002), respectively	—		3,360			3,360
Amounts reclassified from accumulated other comprehensive income, net of tax of $(317), $296 and $(21), respectively	1,054		(976)		(1)	78
Net current-period other comprehensive income, net of tax of $(317), $(706) and $(1,023), respectively	1,054		2,384			3,438
Balance as of September 30, 2024	$	(6,215)	$	(306)		$	(6,521)

(1)Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Consolidated Statements of Operations. For more details, see Note 11. Employee Benefit Plans.

Reclassification

Certain prior period amounts have been reclassified to conform to the current period presentation. Intangible assets, net previously classified in its own category on the Consolidated Balance Sheets has been reclassified into other noncurrent assets. Other noncurrent assets and other noncurrent liabilities previously classified in their own categories on the Consolidated Statements of Cash Flow have been combined into one category.

Recently Adopted Updates to the Accounting Standards Codification

Business Combinations

In October 2021, the FASB issued ASU No. 2021-08, an amendment to ASC 805, Business Combinations, which requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The guidance was effective for the Company beginning October 1, 2023, and was applied on a prospective basis to new acquisitions following the date of adoption. As the Company has not executed a transaction that would qualify as a business combination, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption.

Derivatives and Hedging

In March 2022, the FASB issued ASU No. 2022-01, an amendment to ASC 815, Derivatives and Hedging, which addresses fair value hedge accounting of interest rate risk for portfolios of financial assets. This update further clarifies guidance previously released in ASU No. 2017-12, which established the ”last-of-layer” method, and this update renames that method as the “portfolio layer” method. The guidance was effective for the Company beginning October 1, 2023. As the Company does not currently apply hedge accounting to any of its risk management activities, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption.

Financial Instruments

In March 2022, the FASB issued ASU No. 2022-02, an amendment to ASC 326, Financial Instruments-Credit Losses, which eliminates the accounting guidance for creditors in troubled debt restructuring. It also aligns conflicting disclosure requirement guidance in ASC 326 by requiring disclosure of current-period gross write-offs by year of origination. The amendment also adds new disclosures for creditors with loan refinancing and restructuring for borrowers experiencing financial difficulty. The guidance was effective for the Company beginning October 1, 2023. Since the Company has not experienced a troubled debt restructuring, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption.

Other Recent Updates to the Accounting Standards Codification

Fair Value Measurement

In June 2022, the FASB issued ASU No. 2022-03, an amendment to ASC 820, Fair Value Measurement. The amendment clarifies the fair value principles when measuring the fair value of an equity security subject to a contractual sale restriction. The guidance became effective for the Company on October 1, 2024, and the Company elected to apply it on a prospective basis. At this time, the Company does not have equity securities subject to contractual sale restrictions, and therefore this amendment would only impact the Company if, in the future, it entered into such transactions.

Leases

In March 2023, the FASB issued ASU No. 2023-01, an amendment to ASC 842, Leases, which applies to arrangements between related parties under common control. This update requires that all entities with common control arrangements classify and account for these leases on the same basis as an arrangement with an unrelated party. If the lessee in these types of arrangements continues to control the use of the underlying asset through a lease, the leasehold improvements are to be amortized over the improvements’ useful life to the common control group, regardless of the lease term. The guidance became effective for the Company on October 1, 2024, and the Company elected to apply it on a prospective basis. At this time, the Company does not have leases that are impacted by this amendment, and therefore it would only impact the Company if, in the future, it entered into applicable transactions.

Business Combinations

In August 2023, the FASB issued ASU No. 2023-05, an amendment to ASC 805, Business Combinations, which addresses how a joint venture should recognize contributions received upon its formation. Joint ventures must account for initial assets and liabilities received at fair value on the date the joint venture is formed. The guidance is effective for the Company for joint ventures formed beginning January 1, 2025, and the Company can elect to apply it either prospectively or retrospectively back to a joint venture’s formation date provided adequate information is available. Early adoption is permitted. This amendment would only impact the Company upon adoption if, in the future, it entered into an applicable transaction.

Segment Reporting

In November 2023, the FASB issued ASU No. 2023-07, an amendment to ASC 280, Segment Reporting, which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The update requires entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker and included within segment profit and loss, and it enhances interim disclosure requirements to conform with annual requirements. This update became effective for the Company on October 1, 2024, for the first annual period and will become effective on October 1, 2025, for the interim periods. It will be applied retrospectively to all periods presented and the Company is currently evaluating the amendment to understand the impacts on its future disclosures.

Income Taxes

In December 2023, the FASB issued ASU No. 2023-09, an amendment to ASC 740, Income Taxes, which requires disaggregated information about a reporting entity’s effective tax rate reconciliation and income taxes paid. It will provide investors more detailed income tax disclosures that would be useful in making capital allocation decisions. The guidance is effective for the Company on October 1, 2025, and can be applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the amendment to understand the impacts on its financial position, results of operations, cash flows and disclosures upon adoption.

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU No. 2024-03, an amendment to ASC 220, Income Statement Reporting, which requires more detailed information about specified categories of expenses included in certain captions presented on the face of the income statement. This update becomes effective for the Company on October 1, 2027, for the first annual period and on October 1, 2028, for the interim periods. The Company can elect to apply it either prospectively or retrospectively to all periods presented, with early adoption permitted. The Company is currently evaluating the amendment to understand the impacts on its disclosures upon adoption.

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REVENUE

12 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

REVENUE

3. REVENUE

Revenue is recognized when a performance obligation is satisfied by transferring control of a product or service to a customer. Revenue is measured based on consideration specified in a contract with a customer using the output method of progress. The Company elected to apply the invoice practical expedient for recognizing revenue, whereby the amounts invoiced to customers represent the value to the customer and the Company’s performance completion as of the invoice date. Therefore the Company does not disclose related unsatisfied performance obligations. The Company also elected the practical expedient to exclude from the transaction price all sales taxes that are assessed by a governmental authority and therefore presents sales tax net in operating revenues on the Consolidated Statements of Operations.

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 Obligation	Description
NJNG	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 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.
CEV	Commercial solar electricity	CEV 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.
CEV	Residential solar electricity	CEV 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.
CEV	Renewable energy certificates	Certain CEV projects generate TRECs and SREC IIs under the established ADI Program. A TREC or SREC II is created for every MWh of electricity produced by a solar generator. The performance obligation of CEV is to generate electricity. TRECs and SREC IIs under the ADI Program are purchased monthly by a REC Administrator. Revenue is recognized upon generation.

Revenue Recognized Over Time (continued):
Segment/ Operations	Performance Obligation	Description
ES	Natural gas services	The performance obligation of ES is to provide the customer transportation, storage and asset management services on an as-needed basis. ES 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. ES 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.
S&T	Natural gas services	The performance obligation of S&T is to provide the customer with storage and transportation services. S&T 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.
HSO	Service contracts	Home Services enters into service contracts with homeowners to provide maintenance and replacement 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:
ES	Natural gas services	For a permanent release of pipeline capacity, the performance obligation of ES 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.
S&T	Natural gas services	The performance obligation of S&T is to provide the customer with storage and transportation services. S&T 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.
HSO	Installations	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.

Disaggregated revenues from contracts with customers by product line and by reporting segment and other business operations during fiscal 2024, 2023 and 2022 are as follows:

(Thousands)	NJNG		CEV		ES	S&T	HSO	Total
2024
Natural gas utility sales (1)	$	861,882	—		—	—	—	$	861,882
Natural gas services	—		—		164,165	96,209	—	260,374
Service contracts	—		—		—	—	36,231	36,231
Installations and maintenance	—		—		—	—	26,404	26,404
Renewable energy certificates	—		15,111		—	—	—	15,111
Electricity sales	—		32,913		—	—	—	32,913
Eliminations (2)	(1,350)		—		—	(1,358)	(258)	(2,966)
Revenues from contracts with customers	860,532		48,024		164,165	94,851	62,377	1,229,949
Alternative revenue programs (3)	1,087		—		—	—	—	1,087
Derivative instruments	156,863		82,539	(4)	321,226	—	—	560,628
Eliminations (2)	—		—		4,875	—	—	4,875
Revenues out of scope	157,950		82,539		326,101	—	—	566,590
Total operating revenues	$	1,018,482	130,563		490,266	94,851	62,377	$	1,796,539
2023
Natural gas utility sales (1)	$	845,392	—		—	—	—	$	845,392
Natural gas services	—		—		76,975	92,859	—	169,834
Service contracts	—		—		—	—	35,210	35,210
Installations and maintenance	—		—		—	—	22,428	22,428
Renewable energy certificates	—		12,636		—	—	—	12,636
Electricity sales	—		31,733		—	—	—	31,733
Eliminations (2)	(1,349)		—		—	(4,159)	(205)	(5,713)
Revenues from contracts with customers	844,043		44,369		76,975	88,700	57,433	1,111,520
Alternative revenue programs (3)	27,257		—		—	—	—	27,257
Derivative instruments	139,984		79,762	(4)	614,641	—	—	834,387
Eliminations (2)	—		—		(10,170)	—	—	(10,170)
Revenues out of scope	167,241		79,762		604,471	—	—	851,474
Total operating revenues	$	1,011,284	124,131		681,446	88,700	57,433	$	1,962,994
2022
Natural gas utility sales	$	951,626	—		—	—	—	951,626
Natural gas services	—		—		83,801	67,735	—	151,536
Service contracts	—		—		—	—	33,932	33,932
Installations and maintenance	—		—		—	—	22,250	22,250
Renewable energy certificates	—		5,487		—	—	—	5,487
Electricity sales	—		38,317		—	—	—	38,317
Eliminations (2)	(1,350)		—		—	(2,449)	(364)	(4,163)
Revenues from contracts with customers	950,276		43,804		83,801	65,286	55,818	1,198,985
Alternative revenue programs (3)	11,259		—		—	—	—	11,259
Derivative instruments	165,882		84,476	(4)	1,445,471	—	—	1,695,829
Eliminations (2)	—		—		(94)	—	—	(94)
Revenues out of scope	177,141		84,476		1,445,377	—	—	1,706,994
Total operating revenues	$	1,127,417	128,280		1,529,178	65,286	55,818	2,905,979

(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 fiscal years ended September 30, are as follows:

(Thousands)	NJNG		CEV	ES	S&T	HSO	Total
2024
Residential	$	641,606	13,960	—	—	62,219	$	717,785
Commercial and industrial	123,727		34,064	164,165	94,851	158	416,965
Firm transportation	86,600		—	—	—	—	86,600
Interruptible, off-tariff and other	8,599		—	—	—	—	8,599
Revenues out of scope	157,950		82,539	326,101	—	—	566,590
Total operating revenues	$	1,018,482	130,563	490,266	94,851	62,377	$	1,796,539
2023
Residential	$	621,663	13,668	—	—	57,091	$	692,422
Commercial and industrial	136,011		30,701	76,975	88,700	342	332,729
Firm transportation	77,722		—	—	—	—	77,722
Interruptible, off-tariff and other	8,647		—	—	—	—	8,647
Revenues out of scope	167,241		79,762	604,471	—	—	851,474
Total operating revenues	$	1,011,284	124,131	681,446	88,700	57,433	$	1,962,994
2022
Residential	$	586,678	12,579	—	—	55,629	$	654,886
Commercial and industrial	265,970		31,225	83,801	65,286	189	446,471
Firm transportation	92,531		—	—	—	—	92,531
Interruptible, off-tariff and other	5,097		—	—	—	—	5,097
Revenues out of scope	177,141		84,476	1,445,377	—	—	1,706,994
Total operating revenues	$	1,127,417	128,280	1,529,178	65,286	55,818	$	2,905,979

Customer Accounts Receivable/Credit Balances and Deposits

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 Consolidated Balance Sheets are as follows:

	Customer Accounts Receivable				Customers’Credit
(Thousands)	Billed		Unbilled		Balances and Deposits
Balance as of September 30, 2022	$	222,297	$	13,769	$	33,246
(Decrease) increase	(124,757)		5,331		11,664
Balance as of September 30, 2023	97,540		19,100		44,910
Increase (decrease)	7,991		994		(6,315)
Balance as of September 30, 2024	$	105,531	$	20,094	$	38,595

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 Consolidated Balance Sheets as of September 30:

(Thousands)	NJNG		CEV	ES	S&T	HSO	Total
2024
Customer accounts receivable
Billed	$	51,613	8,441	34,002	8,598	2,877	$	105,531
Unbilled	11,839		8,255	—	—	—	20,094
Customers’ credit balances and deposits	(38,572)		—	—	(23)	—	(38,595)
Total	$	24,880	16,696	34,002	8,575	2,877	$	87,030
2023
Customer accounts receivable
Billed	$	55,234	9,962	23,716	6,577	2,051	$	97,540
Unbilled	10,784		8,316	—	—	—	19,100
Customers’ credit balances and deposits	(44,898)		—	—	(12)	—	(44,910)
Total	$	21,120	18,278	23,716	6,565	2,051	$	71,730

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REGULATION

12 Months Ended

Sep. 30, 2024

Regulated Operations [Abstract]

REGULATION

4. REGULATION

The EDECA is the legal framework for New Jersey’s public utility and wholesale energy landscape. NJNG is required, pursuant to a written order by the BPU under EDECA, to open its residential markets to competition from third-party natural gas suppliers. Customers can choose the supplier of their natural gas commodity in NJNG’s service territory.

As required by EDECA, NJNG’s rates are segregated into two primary components: the commodity portion, which represents the wholesale cost of natural gas, including the cost for interstate pipeline capacity to transport the natural gas to NJNG’s service territory; and the delivery portion, which represents the transportation of the commodity portion through NJNG’s natural gas distribution system to the end-use customer. NJNG does not earn Utility Gross Margin on the commodity portion of its natural gas sales. NJNG earns Utility Gross Margin through the delivery of natural gas to its customers, regardless of whether it or a third-party supplier provides the wholesale natural gas commodity.

Under EDECA, the BPU is required to audit the state’s energy utilities every two years. The primary purpose of the audit is to ensure that utilities and their affiliates offering unregulated retail services do not have an unfair competitive advantage over nonaffiliated providers of similar retail services. A combined competitive services and management audit of NJNG commenced in November 2022. The audit is still in progress.

NJNG is subject to cost-based regulation; therefore, it is permitted to recover authorized operating expenses and earn a reasonable return on its utility capital investments based on the BPU’s approval. The impact of the ratemaking process and decisions authorized by the BPU allows NJNG to capitalize or defer certain costs that are expected to be recovered from its customers as regulatory assets, and to recognize certain obligations representing amounts that are probable future expenditures as regulatory liabilities in accordance with accounting guidance applicable to regulated operations.

NJNG’s recovery of costs is facilitated through its base rates, BGSS and other regulatory tariff riders. NJNG is required to make filings to the BPU for review of its BGSS, CIP and other programs and related rates. Annual rate changes are typically requested to be effective at the beginning of the following fiscal year. The current base rates include a weighted average cost of capital of 6.84% and a return on common equity of 9.6%. All rate and program changes are subject to proper notification and BPU review and approval. In addition, NJNG is permitted to implement certain BGSS rate changes on a provisional basis with proper notification to the BPU.

Regulatory assets and liabilities included on the Consolidated Balance Sheets for NJNG are comprised of the following, as of September 30:

(Thousands)	2024		2023
Regulatory assets-current
New Jersey Clean Energy Program	$	18,491	$	15,804
Conservation Incentive Program	51,442		50,356
Derivatives at fair value, net	1,363		6,017
Other current regulatory assets	1,774		1,410
Total current regulatory assets	$	73,070	$	73,587
Regulatory assets-noncurrent
Environmental remediation costs:
Expended, net of recoveries	$	77,475	$	66,298
Liability for future expenditures	161,650		169,390
Deferred income taxes	42,595		41,667
SAVEGREEN	107,796		83,589
Postemployment and other benefit costs	23,772		55,274
Cost of removal	130,885		112,362
Other noncurrent regulatory assets	59,924		51,019
Total noncurrent regulatory assets	$	604,097	$	579,599
Regulatory liability-current
Overrecovered natural gas costs	$	32,457	$	30,637
Total current regulatory liabilities	$	32,457	$	30,637
Regulatory liabilities-noncurrent
Tax Act impact (1)	$	175,328	$	180,347
Derivatives at fair value, net	404		—
Other noncurrent regulatory liabilities	115		111
Total noncurrent regulatory liabilities	$	175,847	$	180,458

(1)Reflects the re-measurement and subsequent amortization of NJNG’s net deferred tax liabilities as a result of the change in federal tax rates enacted in the Tax Act. The Tax Act is an Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018, previously known as The Tax Cuts and Jobs Act of 2017.

Other noncurrent regulatory assets include deferred pandemic costs of approximately $3.9M as of both September 30, 2024 and 2023, primarily related to a portion of bad debt associated with customer accounts receivable resulting from the impacts of the novel coronavirus disease pandemic. These costs are eligible for future regulatory recovery and are included in the base rate case filed on January 31, 2024.

Regulatory assets and liabilities included on the Consolidated Balance Sheets for Adelphia are comprised of the following, as of September 30:

(Thousands)	2024		2023
Total noncurrent regulatory assets	$	5,095	$	5,231
Total current regulatory liabilities	$	524	$	1,650

The assets are comprised primarily of the tax benefit associated with the equity component of AFUDC and the liability consists primarily of scheduling penalties. Recovery of regulatory assets is subject to FERC approval.

New Jersey Clean Energy Program

The NJCEP is a statewide program that encourages energy efficiency and renewable energy. Funding amounts are determined by the BPU’s Office of Clean Energy and all New Jersey utilities are required to share in the annual funding obligation. The current NJCEP program is for the State of New Jersey’s fiscal year ending June 2025. NJNG recovers the costs associated with its portion of the NJCEP obligation through its NJCEP rider, with interest.

Conservation Incentive Program

The CIP permits NJNG to recover Utility Gross Margin variations related to customer usage resulting from customer conservation efforts and mitigates the impact of weather on its margin. Such Utility Gross Margin variations are recovered in the year following the end of the CIP usage year, without interest, and are subject to additional conditions, including an earnings test, a revenue test and an evaluation of BGSS-related savings. This program has no expiration date.

Derivatives

Derivatives are utilized by NJNG to manage the price risk associated with its natural gas purchasing activities and to participate in certain BGSS incentive programs. The gains and losses associated with NJNG’s derivatives are recoverable through its BGSS, as noted above, without interest. See Note 5. Derivative Instruments.

Environmental Remediation Costs

NJNG is responsible for the cleanup of certain former gas manufacturing facilities. Actual expenditures are recovered from customers, with interest, over seven-year rolling periods, through a RAC rate rider. Recovery for NJNG’s estimated future liability will be requested and/or recovered when actual expenditures are incurred. See Note 14. Commitments and Contingent Liabilities.

Deferred Income Taxes

Upon adoption of a 1993 provision of ASC 740, Income Taxes, NJNG recognized a transition adjustment and corresponding regulatory asset representing the difference between NJNG’s existing deferred tax amounts compared with the deferred tax amounts calculated in accordance with the change in method prescribed by ASC 740. NJNG recovers the regulatory asset associated with these tax impacts through future base rates, without interest.

SAVEGREEN

NJNG administers certain programs that supplement the state’s NJCEP and that allow NJNG to promote clean energy to its residential and commercial customers, as described further below. NJNG will recover related expenditures and a weighted average cost of capital on the unamortized balance through a tariff rider, with interest, as approved by the BPU, over a three- to 10-year period depending upon the specific program incentive.

Postemployment and Other Benefit Costs

Postemployment and Other Benefit Costs represents NJNG’s underfunded postemployment benefit obligations. See Note 11. Employee Benefit Plans.

Cost of Removal

NJNG accrues and collects for cost of removal in base rates on its utility property, without interest. These costs are recorded in accumulated depreciation for regulatory reporting purposes, and actual costs of removal, without interest, will be recovered in subsequent rates, pursuant to the BPU order. Consistent with GAAP, amounts recorded within accumulated depreciation for regulatory accounting purposes are reclassified out of accumulated depreciation to either a regulatory asset or a regulatory liability depending on whether actual cost of removal is still subject to collection or amounts overcollected will be refunded back to customers.

Other Regulatory Assets

Other regulatory assets consist primarily of deferred costs associated with certain components of NJNG’s SBC, as discussed further in the regulatory proceedings section. NJNG’s related costs to maintain the operational integrity of its distribution and transmission main are recoverable, without interest, subject to BPU review and approval.

Overrecovered Natural Gas Costs

NJNG recovers its cost of natural gas through the BGSS rate component of its customers’ bills. NJNG’s cost of natural gas includes the purchased cost of the natural gas commodity, fees paid to pipelines and storage facilities, adjustments as a result of BGSS incentive programs and hedging transactions. Overrecovered natural gas costs represent a regulatory liability that generally occurs when NJNG’s BGSS rates are higher than actual costs and result in returns to customers, including interest when applicable, in accordance with NJNG’s approved BGSS tariff. Conversely, underrecovered natural gas costs generally occur during periods when NJNG’s BGSS rates are lower than actual costs, in which case NJNG records a regulatory asset and requests amounts to be recovered from customers in the future.

The following is a description of certain regulatory proceedings during fiscal 2023 and 2024:

On January 31, 2024, NJNG filed a base rate case with the BPU requesting a natural gas revenue increase of approximately $222.6M including a recovery of infrastructure investments, a change in the Company’s overall rate of return on rate base to 7.57% and a change in the return on common equity to 10.42%. On May 15, 2024, the filing was updated to reflect actual results through March 31, 2024, which reduced the requested increase to approximately $219.6M. On August 7, 2024, the filing was updated to reflect actual results through June 30, 2024, which modified the requested increase to approximately $219.9M. On November 21, 2024, the BPU issued an order adopting a stipulation of settlement approving a $157.0M increase to base rates, effective November 21, 2024. The increase includes an overall rate of return on rate base of 7.08%, return on common equity of 9.60%, a common equity ratio of 54.0% and a depreciation rate of 3.21%.

BGSS and CIP

BGSS rates are normally revised on an annual basis. In addition, to manage the fluctuations in wholesale natural gas costs, NJNG has the ability to make two interim filings during each fiscal year to increase residential and small commercial customer BGSS rates on a self-implementing and provisional basis. NJNG is also permitted to refund or credit back a portion of the commodity costs to customers at any time given five days’ notice when the natural gas commodity costs decrease in comparison to amounts projected or to amounts previously collected from customers. Concurrent with the annual BGSS filing, NJNG files for an annual review of its CIP. NJNG’s annual BGSS and CIP filings are summarized as follows:

•In February 2023, NJNG advised the BPU of a bill credit and a reduction to the BGSS rate for residential and small commercial customers, which reduced recoveries by approximately $29.9M, effective March 1, 2023, and was approved on a final basis by the BPU on April 12, 2023. Bill credits provided to customers from March 2023 through May 2023 totaled approximately $32.4M.

•2023 BGSS/CIP filing — On April 30, 2024, the BPU approved on a final basis NJNG’s annual filing, which included a decrease of approximately $38.6M to the annual revenues credited to BGSS, an annual decrease of approximately $7.4M related to its balancing charge and an increase of approximately $27.0M to CIP rates for residential and small business customers, effective October 1, 2023.

•2024 BGSS/CIP filing — On May 31, 2024, NJNG filed its annual petition to modify its BGSS rates for residential and small business customers, the balancing charge and CIP rates. On September 25, 2024, the BPU approved, on a provisional basis, a decrease of approximately $31.0M to the annual revenues credited to BGSS, an annual increase of approximately $40.3M related to its balancing charge and a decrease of approximately $0.8M to CIP rates, effective October 1, 2024.

BGSS Incentive Programs

NJNG is eligible to receive financial incentives for reducing BGSS costs through a series of Utility Gross Margin-sharing programs that include off-system sales, capacity release and storage incentive programs. The Company is permitted to annually propose a process to evaluate and discuss alternative incentive programs, should performance of the existing incentives or market conditions warrant re-evaluation.

Energy Efficiency Programs

SAVEGREEN conducts home energy audits and provides various grants, incentives and financing alternatives, which are designed to encourage the installation of high efficiency heating and cooling equipment and other upgrades to promote energy efficiency to its residential and commercial customers while stimulating state and local economies through the creation of jobs. Depending on the specific initiative or approval, NJNG recovers costs associated with the programs over a three- to 10-year period through a tariff rider mechanism. In March 2021, the BPU approved a three-year SAVEGREEN program that included approximately $126.1M of direct investment, approximately $109.4M in financing options and approximately $23.4M in O&M.

SAVEGREEN investments and costs are filed with the BPU on an annual basis. NJNG’s annual EE filings are summarized as follows:

•2023 EE filing — In June 2023, NJNG submitted its annual EE filing with the BPU for the recovery of SAVEGREEN costs, proposing an increase in annual recoveries of approximately $10.7M. In September 2023, the BPU approved an increase to the EE rate increasing annual recoveries by approximately $9.0M based on updated information since the initial filing, effective October 1, 2023.

•On November 9, 2023, NJNG filed a letter petition seeking BPU approval to extend NJNG’s current SAVEGREEN program through December 31, 2024, with an additional $76.9M in order to meet customer demand for this program, which was approved by the BPU on April 30, 2024.

•On December 1, 2023, NJNG filed a petition seeking BPU approval of its 2024 SAVEGREEN program, which would support new energy efficiency, demand response and building decarbonization start-up programs from January 1, 2025 through June 30, 2027. The 2024 SAVEGREEN program includes approximately $245.1M of direct investment, approximately $217.2M in financing options and approximately $20.1M in O&M. On October 30, 2024, the BPU approved a settlement consisting of $205.0M of direct investment, $160.5M in financing options and $20.1M in O&M, which totals $385.6M.

•2024 EE filing — On May 31, 2024, NJNG submitted its annual EE filing with the BPU for the recovery of SAVEGREEN costs, proposing an increase in annual recoveries of approximately $5.6M, to be effective January 1, 2025, if approved.

Societal Benefits Charge

The SBC is comprised of three primary riders that allow NJNG to recover costs associated with USF, which is a permanent statewide program for all natural gas and electric utilities for the benefit of income-eligible customers, MGP remediation and the NJCEP. NJNG has submitted the following filings to the BPU, which include a report of program expenditures incurred each program year:

•2023 USF filing — In June 2023, NJNG submitted its annual USF filing to the BPU requesting an increase to the statewide USF rate, which will result in an approximately $0.7M increase to annual recoveries. The BPU approved this matter in September 2023, effective October 1, 2023.

•2023 SBC filing — In September 2023, NJNG submitted its annual SBC filing to the BPU requesting approval of RAC expenditures through June 2023, which included an increase to the RAC annual recoveries of approximately $2.4M and an increase to the NJCEP annual recoveries of approximately $5.5M, effective April 1, 2024. On March 20, 2024, the BPU approved NJNG's annual SBC filing.

•2024 USF filing — On June 28, 2024, NJNG submitted its annual USF filing to the BPU requesting an increase to the statewide USF rate, which resulted in an approximately $6.8M increase to annual recoveries. On September 25, 2024, the BPU approved this filing, effective October 1, 2024.

•2024 SBC filing — On September 30, 2024, NJNG submitted its annual SBC filing to the BPU requesting approval of RAC expenditures through June 2024, which included an increase to the RAC annual recoveries of approximately $2.4M and an increase to the NJCEP annual recoveries of approximately $1.6M, which would be effective April 1, 2025.

Infrastructure Programs

NJNG has significant annual capital expenditures associated with the management of its natural gas distribution and transmission system, including new utility plant for customer growth and its associated PIM and infrastructure programs. NJNG continues to implement BPU-approved infrastructure projects that are designed to enhance the reliability of NJNG’s natural gas distribution system.

Infrastructure Investment Program

In February 2019, NJNG filed a petition with the BPU seeking authority to implement a five-year IIP. The IIP consists of two components, transmission and distribution investments and information technology replacement and enhancements. The total investment for the IIP is approximately $507.0M. Upon approval from the BPU, investments are being recovered through annual filings to adjust base rates. In October 2020, the BPU approved the Company’s transmission and distribution component of the IIP for $150.0M over five years, effective November 1, 2020. The recovery of information technology replacement and enhancements that was included in the original IIP filing will be included as part of base rate filings as projects are placed in service.

•2023 IIP filing — In March 2023, NJNG submitted its annual IIP filing to the BPU requesting a rate increase for estimated capital expenditures of approximately $31.4M through June 30, 2023. This filing was updated in July 2023, with actual expenses of approximately $28.2M through June 30, 2023. The BPU approved this filing in September 2023, which resulted in an approximately $3.2M revenue increase, effective October 1, 2023.

•2024 IIP filing — On March 28, 2024, NJNG submitted its annual IIP filing to the BPU requesting a rate increase for capital expenditures of approximately $43.5M through June 30, 2024. The filing was updated July 26, 2024, to reflect actual expenses of approximately $41.2M through June 30, 2024. The BPU approved this filing on September 25, 2024, which resulted in an approximately $4.7M revenue increase, effective October 1, 2024.

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DERIVATIVE INSTRUMENTS

12 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS

5. DERIVATIVE INSTRUMENTS

The Company is subject primarily to commodity price risk due to fluctuations in the market price of natural gas, SRECs and electricity. To manage this risk, the Company enters into a variety of derivative instruments including, but not limited to, futures contracts, physical forward contracts, financial options and swaps to economically hedge the commodity price risk associated with its existing and anticipated commitments to purchase and sell natural gas, SRECs and electricity. In addition, the Company is exposed to foreign currency and interest rate risk and may utilize foreign currency derivatives to hedge Canadian dollar-denominated natural gas purchases and/or sales and interest rate derivatives to reduce exposure to fluctuations in interest rates. All of these types of contracts are accounted for as derivatives, unless the Company elects NPNS, which is done on a contract-by-contract election. Accordingly, all of the financial and certain of the Company’s physical derivative instruments are recorded at fair value on the Consolidated Balance Sheets. For a more detailed discussion of the Company’s fair value measurement policies and level disclosures associated with the Company’s derivative instruments, see Note 6. Fair Value.

Energy Services

ES chooses not to designate its financial commodity and physical forward commodity derivatives as accounting hedges or to elect NPNS. The changes in the fair value of these derivatives are recorded as a component of natural gas purchases or operating revenues, as appropriate for ES, on the Consolidated Statements of Operations as unrealized gains or losses. For ES at settlement, realized gains and losses on all financial derivative instruments are recognized as a component of natural gas purchases, and realized gains and losses on all physical derivatives follow the presentation of the related unrealized gains and losses as a component of either natural gas purchases or operating revenues.

As a result of ES entering into transactions to borrow natural gas, commonly referred to as “park and loans,” an embedded derivative is recognized relating to differences between the fair value of the amount borrowed and the fair value of the amount that will ultimately be repaid, based on changes in the forward price for natural gas prices at the borrowed location over the contract term. This embedded derivative is accounted for as a forward sale in the month in which the repayment of the borrowed natural gas is expected to occur and is considered a derivative transaction that is recorded at fair value on the Consolidated Balance Sheets, with changes in value recognized in current-period earnings.

Expected production of SRECs is hedged through the use of forward and futures contracts. All contracts require the Company to physically deliver SRECs through the transfer of certificates as per contractual settlement schedules. ES recognizes changes in the fair value of these derivatives as a component of operating revenues. Upon settlement of the contract, the related revenue is recognized when the SREC is transferred to the counterparty.

Natural Gas Distribution

Changes in fair value of NJNG’s financial commodity derivatives are recorded as a component of regulatory assets or liabilities on the Consolidated Balance Sheets. The Company elects NPNS accounting treatment on all physical commodity contracts that NJNG entered into on or before December 31, 2015, and accounts for these contracts on an accrual basis. Accordingly, physical natural gas purchases are recognized in regulatory assets or liabilities on the Consolidated Balance Sheets when the contract settles and the natural gas is delivered. The average cost of natural gas is charged to expense in the current period earnings based on the BGSS factor times the therm sales. NJNG no longer elects NPNS accounting treatment on a portfolio basis. However, since NPNS is a contract-by-contract election, where it makes sense to do so, NJNG can and may elect to treat certain contracts as normal. Because NJNG recovers these amounts through future BGSS rates as increases or decreases to the cost of natural gas in NJNG’s tariff for natural gas service, the changes in fair value of these contracts are deferred as a component of regulatory assets or liabilities on the Consolidated Balance Sheets.

Clean Energy Ventures

The Company elects NPNS accounting treatment on PPA contracts executed by CEV that meet the definition of a derivative and accounts for the contract on an accrual basis. Accordingly, electricity sales are recognized in revenues throughout the term of the PPA as electricity is delivered. NPNS is a contract-by-contract election and where it makes sense to do so, the Company can and may elect to treat certain contracts as normal.

Fair Value of Derivatives

The following table presents the fair value of the Company’s derivative assets and liabilities recognized on the Consolidated Balance Sheets as of September 30:

		Derivatives at Fair Value
			2024					2023
(Thousands)	Balance Sheet Location		Assets		Liabilities			Assets		Liabilities
Derivatives not designated as hedging instruments:
NJNG:
Physical commodity contracts	Derivatives - current		$	21		$	579	$	43		$	488
Financial commodity contracts	Derivatives - current		—			2		6,110			20
ES:
Physical commodity contracts	Derivatives - current		1,660			4,346		6,209			12,757
	Derivatives - noncurrent		727			10,758		802			7,870
Financial commodity contracts	Derivatives - current		5,132			1,344		18,393			2,880
	Derivatives - noncurrent		79			732		762			97
Total fair value of derivatives			$	7,619		$	17,761	$	32,319		$	24,112

Offsetting of Derivatives

The Company transacts under master netting arrangements or equivalent agreements that allow it to offset derivative assets and liabilities with the same counterparty. However, the Company’s policy is to present its derivative assets and liabilities on a gross basis at the contract level unit of account on the Consolidated Balance Sheets.

The following table summarizes the reported gross amounts, the amounts that the Company has the right to offset but elects not to, financial collateral and the net amounts the Company could present on the Consolidated Balance Sheets but elects not to.

	Asset Derivatives						Liability Derivatives
(Thousands)	Fair Value (1)		Amounts Offset (2)	Collateral Received/Pledged (3)	Net Value (4)		Fair Value (1)		Amounts Offset (2)	Collateral Received/Pledged (3)	Net Value (4)
As of September 30, 2024
ES Contracts
Physical commodity	$	2,387	(535)	—	$	1,852	$	15,104	(535)	(5,551)	$	9,018
Financial commodity	5,211		(2,076)	(1,170)	1,965		2,076		(2,076)	—	—
Total ES	$	7,598	(2,611)	(1,170)	$	3,817	$	17,180	(2,611)	(5,551)	$	9,018
NJNG Contracts
Physical commodity	$	21	(13)	—	$	8	$	579	(13)	—	$	566
Financial commodity	—		—	—	—		2		—	(2)	—
Total NJNG	$	21	(13)	—	$	8	$	581	(13)	(2)	$	566
As of September 30, 2023
ES Contracts
Physical commodity	$	7,011	(1,236)	—	$	5,775	$	20,627	(1,236)	(9,728)	$	9,663
Financial commodity	19,155		(2,977)	(16,178)	—		2,977		(2,977)	—	—
Total ES	$	26,166	(4,213)	(16,178)	$	5,775	$	23,604	(4,213)	(9,728)	$	9,663
NJNG Contracts
Physical commodity	$	43	(3)	—	$	40	$	488	(3)	—	$	485
Financial commodity	6,110		(20)	—	6,090		20		(20)	—	—
Total NJNG	$	6,153	(23)	—	$	6,130	$	508	(23)	—	$	485

(1)Derivative assets and liabilities are presented on a gross basis on the Consolidated Balance Sheets, as the Company does not elect balance sheet offsetting under ASC 210-20.

(2)Includes transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting.

(3)Financial collateral includes cash balances at FCMs, as well as cash received from or pledged to other counterparties.

(4)Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20.

ES utilizes financial derivatives to economically hedge the gross margin associated with the purchase of physical natural gas to be used for storage injection and its subsequent sale at a later date. The gains or (losses) on the financial transactions that are economic hedges of the cost of the purchased natural gas are recognized prior to the gains or (losses) on the physical transaction, which are recognized in earnings when the natural gas is delivered. Therefore, mismatches between the timing of the recognition of realized gains or (losses) on the financial derivative instruments and gains or (losses) associated with the actual sale of the natural gas that is being economically hedged, along with fair value changes in derivative instruments, create volatility in the results of ES, although the Company’s intended economic results relating to the entire transaction are unaffected.

The following table presents the effect of derivative instruments recognized on the Consolidated Statements of Operations as of September 30:

(Thousands)	Location of gain (loss) recognized in income on derivatives	Amount of gain (loss) recognized in income on derivatives
Derivatives not designated as hedging instruments:		2024		2023		2022
ES:
Physical commodity contracts	Operating revenues	$	12,070	$	33,610	$	(8,569)
Physical commodity contracts	Natural gas purchases	(2,391)		(6,846)		3,580
Financial commodity contracts	Natural gas purchases	11,722		80,406		14,403
Foreign currency contracts	Natural gas purchases	—		—		(14)
Total unrealized and realized gain		$	21,401	$	107,170	$	9,400

NJNG’s derivative contracts are part of the Company’s risk management activities that relate to its natural gas purchases and BGSS incentive programs. At settlement, the resulting gains and/or losses are payable to or recoverable from utility customers and are deferred in regulatory assets or liabilities resulting in no impact to earnings.

The following table reflects the gains and/or (losses) associated with NJNG’s derivative instruments as of September 30:

(Thousands)	2024		2023		2022
NJNG:
Physical commodity contracts	$	(5,215)	$	(34,241)	$	7,116
Financial commodity contracts	11,064		(50,130)		32,868
Total unrealized and realized gain (loss)	$	5,849	$	(84,371)	$	39,984

NJNG and ES had the following outstanding long (short) derivatives as of September 30:

	Natural Gas Distribution		Energy Services
Volumes (Bcf)	Futures	Physical Commodity	Futures	Physical Commodity
2024	31.9	10.9	(7.7)	2.8
2023	32.1	12.1	(6.9)	0.2

Not included in the above table are 1.2M and 1.3M SRECs that were open as of September 30, 2024 and 2023, respectively

Broker Margin

Futures exchanges have contract-specific margin requirements that require the posting of cash or cash equivalents relating to traded contracts. Margin requirements consist of initial margin that is posted upon the initiation of a position, maintenance margin that is usually expressed as a percent of initial margin and variation margin that fluctuates based on the daily marked-to-market relative to maintenance margin requirements. The Company maintains separate broker margin accounts for NJNG and ES.

The balances as of September 30, by reporting segment, are as follows:

(Thousands)	Balance Sheet Location	2024		2023
NJNG	Restricted broker margin accounts - current assets	$	4,975	$	5,915
ES	Restricted broker margin accounts - current assets	$	8,268	$	14,881
	Restricted broker margin accounts - current liabilities	$	1,146	$	8,029

Wholesale Credit Risk

NJNG, ES, CEV and S&T are exposed to credit risk as a result of their sales/wholesale marketing activities. As a result of the inherent volatility in the prices of natural gas commodities, derivatives and SRECs, the market value of contractual positions with individual counterparties could exceed established credit limits or collateral provided by those counterparties. If a counterparty fails to perform the obligations under its contract, then the Company could sustain a loss.

The Company monitors and manages the credit risk of its wholesale operations through credit policies and procedures that management believes reduce overall credit risk. These policies include a review and evaluation of current and prospective counterparties’ financial statements and/or credit ratings, daily monitoring of counterparties’ credit limits and exposure, daily communication with traders regarding credit status and the use of credit mitigation measures, such as collateral requirements and netting agreements. Examples of collateral include letters of credit and cash received for either prepayment or margin deposit. Collateral may be requested due to the Company’s election not to extend credit or because exposure exceeds defined thresholds. Most of the Company’s wholesale marketing contracts contain standard netting provisions. These contracts include those governed by ISDA and the NAESB. The netting provisions refer to payment netting, whereby receivables and payables with the same counterparty are offset and the resulting net amount is paid to the party to which it is due.

Internally-rated exposure applies to counterparties that are not rated by Fitch or Moody’s. In these cases, the counterparty’s or guarantor’s financial statements are reviewed, and similar methodologies and ratios used by Fitch and/or Moody’s are applied to arrive at a substitute rating. Gross credit exposure is defined as the unrealized fair value of physical and financial derivative commodity contracts, plus any outstanding wholesale receivable for the value of natural gas delivered and/or financial derivative commodity contract that has settled for which payment has not yet been received.

The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of September 30, 2024. The amounts presented below have not been reduced by any collateral received or netting and exclude accounts receivable for NJNG retail natural gas sales and services and CEV residential solar installations.

(Thousands)	Gross Credit Exposure
Investment grade		$	97,403
Noninvestment grade		7,343
Internally-rated investment grade		16,168
Internally-rated noninvestment grade		17,375
Total		$	138,289

Conversely, certain of NJNG’s and ES’s derivative instruments are linked to agreements containing provisions that would require cash collateral payments from the Company if certain events occur. These provisions vary based upon the terms in individual counterparty agreements and can result in cash payments if NJNG’s credit rating were to fall below its current level. Specifically, most, but not all, of these additional payments will be triggered if NJNG’s debt is downgraded by the major credit agencies, regardless of investment grade status. In addition, some of these agreements include threshold amounts that would result in additional collateral payments if the values of derivative liabilities were to exceed the maximum values provided for in relevant counterparty agreements. Other provisions include payment features that are not specifically linked to ratings, but are based on certain financial metrics.

Collateral amounts associated with any of these conditions are determined based on a sliding scale and are contingent upon the degree to which the Company’s credit rating and/or financial metrics deteriorate, and the extent to which liability amounts exceed applicable threshold limits. Derivative instruments with credit-risk-related contingent features that were in a liability position for which collateral is required were immaterial as of both September 30, 2024 and 2023. These amounts differ from the respective net derivative liabilities reflected on the Consolidated Balance Sheets because the agreements also include clauses, commonly known as “Rights of Offset,” that would permit the Company to offset its derivative assets against its derivative liabilities for determining additional collateral to be posted, as previously discussed.

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FAIR VALUE

12 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

FAIR VALUE

6. FAIR VALUE

Fair Value of Assets and Liabilities

The fair value of cash and cash equivalents, accounts receivable, current loans receivable, accounts payable, commercial paper and borrowings under revolving credit facilities are estimated to equal their carrying amounts due to the short maturity of those instruments. Noncurrent loans receivable are recorded based on what the Company expects to receive, which approximates fair value, in other noncurrent assets on the Consolidated Balance Sheets. The Company regularly evaluates the credit quality and collection profile of its customers to approximate fair value.

As of September 30, the estimated fair value of long-term debt, including current maturities, excluding natural gas meter sale leasebacks, debt issuance costs and solar asset sale leasebacks, is as follows (1):

(Thousands)	2024		2023
NJNG
Carrying value (1)	$	1,647,845	$	1,467,845
Fair market value	$	1,439,849	$	1,097,088
NJR
Carrying value (1)	$	1,120,000	$	1,120,000
Fair market value	$	1,085,955	$	1,009,448

(1)See Note 9. Debt for a reconciliation to long-term and short-term debt.

The Company enters into sale leaseback transactions for certain commercial solar assets and natural gas meters. These transactions are recorded within long-term debt on the Consolidated Balance Sheets. The carrying value of solar sale leasebacks was approximately $283.0M and $278.4M and the estimated fair value was approximately $290.4M and $268.1M as of September 30, 2024 and 2023, respectively. The carrying value of the natural gas meter sale leasebacks was approximately $31.6M and $31.4M and the estimated fair value of certain natural gas meter sale leasebacks amounted to approximately $26.7M and $20.9M as of September 30, 2024 and 2023, respectively.

The Company utilizes a discounted cash flow method to determine the fair value of its debt. Inputs include observable municipal and corporate yields, as appropriate, for the maturity of the specific debt instrument and the Company’s credit rating. As of September 30, 2024 and 2023, the Company discloses its debt within Level 2 of the fair value hierarchy.

Fair Value Hierarchy

The Company applies fair value measurement guidance to its financial assets and liabilities, as appropriate, which include financial derivatives and physical commodity contracts qualifying as derivatives, investments in equity securities and other financial assets and liabilities. In addition, authoritative accounting literature prescribes the use of a fair value hierarchy that prioritizes the inputs-to-valuation techniques used to measure fair value based on the source of the data used to develop the price inputs. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to inputs that are based on unobservable market data and includes the following:

Fair Value Hierarchy	Description of Fair Value Level	Fair Value Technique
Level 1	Unadjusted quoted prices for identical assets or liabilities in active markets	The Company’s Level 1 assets and liabilities include exchange-traded natural gas futures and options contracts, listed equities and money market funds. Exchange-traded futures and options contracts include all energy contracts traded on the NYMEX, CME and ICE that the Company refers to internally as basis swaps, fixed swaps, futures and financial options that are cleared through an FCM.
Level 2	Other significant observable inputs, such as interest rates or price data, including both commodity and basis pricing that is observed either directly or indirectly from publications or pricing services	The Company’s Level 2 assets and liabilities include over-the-counter physical forward commodity contracts and swap contracts, SREC forward sales or derivatives that are initially valued using observable quotes and are subsequently adjusted to include time value, credit risk or estimated transport pricing components for which no basis price is available. Level 2 financial derivatives consist of transactions with non-FCM counterparties (basis swaps, fixed swaps and/or options). Inputs are verifiable and do not require significant management judgment. For some physical commodity contracts, the Company utilizes transportation tariff rates that are publicly available and that it considers to be observable inputs that are equivalent to market data received from an independent source. There are no significant judgments or adjustments applied to the transportation tariff inputs and no market perspective is required. Even if the transportation tariff input were considered to be a “model,” it would still be considered to be a Level 2 input as the data is: •widely accepted and public; •non-proprietary and sourced from an independent third party; and •observable and published. These additional adjustments are generally not considered to be significant to the ultimate recognized values.
Level 3	Inputs derived from a significant amount of unobservable market data	These include the Company’s best estimate of fair value and are derived primarily through the use of internal valuation methodologies.

Financial derivative portfolios of NJNG and ES consist mainly of futures, options and swaps. The Company primarily uses the market approach, and its policy is to use actively quoted market prices when available. The principal market for its derivative transactions is the natural gas wholesale market; therefore, the primary sources for its price inputs are CME, NYMEX and ICE. ES uses Platts and Natural Gas Exchange for Canadian delivery points. However, ES also engages in transactions that result in transporting natural gas to delivery points for which there is no actively quoted market price. In most instances, the transportation cost to the final delivery location is not significant to the overall valuation. If required, ES’s policy is to use the best information available to determine fair value based on internal pricing models, which would include estimates extrapolated from broker quotes or other pricing services.

The Company also has other financial assets that include listed equities, mutual funds and money market funds for which there are active exchange quotes available. When the Company determines fair values, measurements are adjusted, as needed, for credit risk associated with its counterparties, as well as its own credit risk. The Company determines these adjustments by using historical default probabilities that correspond to the applicable S&P issuer ratings, while also taking into consideration collateral and netting arrangements that serve to mitigate risk.

Assets and liabilities measured at fair value on a recurring basis are summarized as follows:

	Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs
(Thousands)	(Level 1)			(Level 2)			(Level 3)			Total
As of September 30, 2024
Assets
Physical commodity contracts		$	—		$	2,408		$	—	$	2,408
Financial commodity contracts		5,211			—			—		5,211
Money market funds		62			—			—		62
Other		2,671			—			—		2,671
Total assets at fair value		$	7,944		$	2,408		$	—	$	10,352
Liabilities
Physical commodity contracts		$	—		$	15,683		$	—	$	15,683
Financial commodity contracts		2,078			—			—		2,078
Total liabilities at fair value		$	2,078		$	15,683		$	—	$	17,761
As of September 30, 2023
Assets
Physical commodity contracts		$	—		$	7,054		$	—	$	7,054
Financial commodity contracts		25,265			—			—		25,265
Money market funds		145			—			—		145
Other		2,641			—			—		2,641
Total assets at fair value		$	28,051		$	7,054		$	—	$	35,105
Liabilities
Physical commodity contracts		$	—		$	21,115		$	—	$	21,115
Financial commodity contracts		2,997			—			—		2,997
Total liabilities at fair value		$	2,997		$	21,115		$	—	$	24,112

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INVESTMENTS IN EQUITY INVESTEES

12 Months Ended

Sep. 30, 2024

Investments, All Other Investments [Abstract]

INVESTMENTS IN EQUITY INVESTEES

7. INVESTMENTS IN EQUITY INVESTEES

Steckman Ridge

The Company holds a 50% equity method investment in Steckman Ridge, a jointly owned and controlled natural gas storage facility located in Bedford County, Pennsylvania. The Company’s investment in Steckman Ridge was $101.7M and $104.1M as of September 30, 2024 and 2023, respectively, which includes loans with a total outstanding principal balance of $70.4M for both September 30, 2024 and 2023. On October 1, 2023, the Company entered into an Amended and Restated Loan Agreement with Steckman Ridge to extend the existing loan agreement and moved from London Interbank Offered Rate to Secured Overnight Financing Rate. These loans accrue interest at a variable rate that resets quarterly and are now due October 1, 2027.

NJNG and ES have entered into storage and park and loan agreements with Steckman Ridge. See Note 16. Related Party Transactions for more information on these intercompany transactions.

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EARNINGS PER SHARE

12 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

EARNINGS PER SHARE

8. EARNINGS PER SHARE

The following table presents the calculation of the Company’s basic and diluted earnings per share for the fiscal years ended September 30:

(Thousands, except per share amounts)	2024		2023		2022
Net income, as reported	$	289,775	$	264,724	$	274,922
Basic earnings per share
Weighted average shares of common stock outstanding-basic	98,634		97,028		96,100
Basic earnings per common share	$2.94		$2.73		$2.86
Diluted earnings per share
Weighted average shares of common stock outstanding-basic	98,634		97,028		96,100
Incremental shares (1)	655		599		388
Weighted average shares of common stock outstanding-diluted	99,289		97,627		96,488
Diluted earnings per common share	$2.92		$2.71		$2.85

(1)Incremental shares consist primarily of unvested stock awards and performance units, which are calculated using the treasury stock method.

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DEBT

12 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

DEBT

9. DEBT

NJNG and NJR finance working capital requirements and capital expenditures through various short-term debt and long-term financing arrangements, including a commercial paper program and committed unsecured credit facilities.

Long-term Debt

The following table presents the long-term debt of the Company as of September 30:

(Thousands)			2024	2023
NJNG
First mortgage bonds:		Maturity date:
Series OO	3.00%	August 1, 2041	46,500	46,500
Series PP	3.15%	April 15, 2028	50,000	50,000
Series QQ	3.58%	March 13, 2024	—	70,000
Series RR	4.61%	March 13, 2044	55,000	55,000
Series SS	2.82%	April 15, 2025	50,000	50,000
Series TT	3.66%	April 15, 2045	100,000	100,000
Series UU	3.63%	June 21, 2046	125,000	125,000
Series VV	4.01%	May 11, 2048	125,000	125,000
Series WW	3.50%	April 1, 2042	10,300	10,300
Series XX	3.38%	April 1, 2038	10,500	10,500
Series YY	2.45%	April 1, 2059	15,000	15,000
Series ZZ	3.76%	July 17, 2049	100,000	100,000
Series AAA	3.86%	July 17, 2059	85,000	85,000
Series BBB	2.75%	August 1, 2039	9,545	9,545
Series CCC	3.00%	August 1, 2043	41,000	41,000
Series DDD	3.13%	June 30, 2050	50,000	50,000
Series EEE	3.13%	July 23, 2050	50,000	50,000
Series FFF	3.33%	July 23, 2060	25,000	25,000
Series GGG	2.87%	September 1, 2050	25,000	25,000
Series HHH	2.97%	September 1, 2060	50,000	50,000
Series III	2.97%	October 30, 2051	50,000	50,000
Series JJJ	3.07%	October 28, 2061	50,000	50,000
Series LLL	4.37%	May 27, 2037	50,000	50,000
Series MMM	4.71%	May 27, 2052	50,000	50,000
Series NNN	5.47%	October 24, 2052	125,000	125,000
Series OOO	5.56%	September 28, 2033	50,000	50,000
Series PPP	5.85%	October 30, 2053	50,000	—
Series QQQ	5.82%	June 26, 2054	125,000	—
Series RRR	5.49%	September 30, 2034	75,000	—
Meter financing obligation		Various dates	31,574	31,352
Less: Debt issuance costs			(10,899)	(9,770)
Less: Current maturities of long-term debt			(58,649)	(78,477)
Total NJNG long-term debt			1,609,871	1,410,950

NJR			2024		2023
First mortgage bonds:		Maturity date:
Unsecured senior notes	3.48%	November 7, 2024	100,000		100,000
Unsecured senior notes	3.54%	August 18, 2026	100,000		100,000
Unsecured senior notes	3.96%	June 8, 2028	100,000		100,000
Unsecured senior notes	3.29%	July 17, 2029	150,000		150,000
Unsecured senior notes	3.50%	July 23, 2030	130,000		130,000
Unsecured senior notes	3.60%	July 23, 2032	130,000		130,000
Unsecured senior notes	3.13%	September 1, 2031	120,000		120,000
Unsecured senior notes	3.25%	September 1, 2033	80,000		80,000
Unsecured senior notes	4.38%	June 23, 2027	110,000		110,000
Unsecured senior notes	3.64%	September 19, 2034	50,000		50,000
Unsecured senior notes	6.14%	December 15, 2032	50,000		50,000
Less: Debt issuance costs			(3,011)		(3,656)
Less: Current maturities of long-term debt			(100,000)		—
Total NJR long-term debt			1,016,989		1,116,344
CEV
Solar asset financing obligation		Various dates	282,962		278,401
Less: Current maturities of long-term debt			(30,358)		(37,678)
Total CEV long-term debt			252,604		240,723
Total long-term debt			$	2,879,464	$	2,768,017

Annual long-term debt redemption requirements, excluding meter financing obligations, debt issuance costs and solar asset financing obligations, as of September 30, are as follows:

(Thousands)	2025		2026		2027		2028		2029		Thereafter
NJR	$	100,000	$	100,000	$	110,000	$	100,000	$	150,000	$	560,000
NJNG	$	50,000	$	—	$	—	$	50,000	$	—	$	1,547,845

NJR

On November 7, 2024, NJR entered into a Note Purchase Agreement under which NJR issued $100M senior notes at a fixed interest rate of 5.55%, maturing in 2034.

NJNG

First Mortgage Bonds

NJNG and Trustee entered into the Mortgage Indenture, dated September 1, 2014, which secures all the outstanding FMBs issued by NJNG. The Mortgage Indenture provides a direct first mortgage lien upon substantially all the operating properties and franchises of NJNG (other than excepted property, such as cash on hand, choses-in-action, securities, rent, natural gas meters and certain materials, supplies, appliances and vehicles), subject only to certain permitted encumbrances. The Mortgage Indenture contains provisions subjecting after-acquired property (other than excepted property and subject to pre-existing liens, if any, at the time of acquisition) to the lien thereof.

NJNG’s Mortgage Indenture does not restrict NJNG’s ability to pay dividends. New Jersey Administrative Code 14:4-4.7 states that a public utility cannot issue dividends without regulatory approval if its equity-to-total-capitalization ratio falls below 30%. As of September 30, 2024, NJNG’s equity-to-total-capitalization ratio is 53.4% and NJNG has the capacity to issue up to $1.4B of FMB under the terms of the Mortgage Indenture.

In September 2023, NJNG entered into a Note Purchase Agreement for $100M aggregate principal amount of its senior notes consisting of $50M of 5.56% senior notes due September 28, 2033, which closed on September 28, 2023, and $50M of 5.85% senior notes due October 30, 2053, which closed on October 30, 2023.

On June 26, 2024, NJNG entered into a Note Purchase Agreement for $200M aggregate principal amount of its senior notes consisting of $125M of 5.82% senior notes due June 26, 2054, which closed on June 26, 2024, and $75M of 5.49% senior notes due September 30, 2034, which closed on September 30, 2024.

The senior notes are secured by an equal principal amount of NJNG’s FMBs issued under NJNG’s Mortgage Indenture.

Sale Leasebacks

NJNG received approximately $8.8M and $8.4M during fiscal 2024 and 2023, respectively, in connection with the sale leaseback of its natural gas meters, with terms ranging from six to 10 years. NJNG records the sale leaseback as a financing obligation for accounting purposes that is paid over the term of the arrangement and has the option to purchase the meters back at fair value upon expiration of the lease.

Contractual commitments for meter sale leaseback arrangements, which represent the most likely outcome of cash payments, as of the fiscal years ended September 30, are as follows:

(Thousands)	2025		2026	2027	2028	2029	Thereafter	Subtotal
Future payments	$	9,665	7,906	5,579	6,211	3,171	1,852	$	34,384
Less: Interest component								(2,810)
Total								$	31,574

Clean Energy Ventures

CEV enters into transactions to sell the commercial solar assets concurrent with agreements to lease the assets back over a period of five to seven years. These transactions are treated as financing obligations for accounting purposes and are typically secured by the renewable energy facility asset and its future cash flows from RECs and energy sales. ITCs and other tax benefits associated with these solar projects are transferred to the buyer, if applicable; however, the lease payments are structured so that CEV is compensated for the transfer of the related tax incentives. CEV continues to operate the solar assets, including related expenses, and retain the revenue generated from RECs and energy sales, and has the option to repurchase the assets sold or renew the lease at the end of the lease term. CEV received proceeds of approximately $64.7M and $167.8M during fiscal 2024 and 2023, respectively, in connection with the sale leaseback of commercial solar assets. The proceeds received were recognized as a financing obligation on the Consolidated Balance Sheets.

Contractual commitments for the solar sale leaseback arrangements, which represent the most likely outcome of cash payments, as of the fiscal years ended September 30, are as follows:

(Thousands)	2025		2026	2027	2028	2029	Thereafter	Subtotal
Future payments	$	57,184	20,396	22,907	34,293	81,586	32,610	$	248,976
Less: Interest component								(43,234)
Total								$	205,742

Credit Facilities and Short-term Debt

The following table summarizes NJR’s credit facility and NJNG’s commercial paper program and credit facility as of September 30:

				At end of period
(Thousands)	As of date	Total borrowing capacity		Loans outstanding		Weighted average interest rate			Remaining borrowing capacity				Expiration dates
NJR bank revolving credit facility (1)
2024		$	575,000	$	236,700		6.23	%		$	325,951	(2)	August 2029
2023		$	650,000	$	217,300		6.53	%		$	426,967	(2)	September 2027
NJNG bank revolving credit facility (3)
2024		$	250,000	$	55,100		4.98	%		$	194,169	(4)	August 2029
2023		$	250,000	$	34,800		5.48	%		$	214,469	(4)	September 2027

(1)Committed credit facility, which requires commitment fees of 0.10% on the unused amount.

(2)Letters of credit outstanding total approximately $12.3M and $5.7M as of September 30, 2024 and 2023, respectively, which reduces the amount available by the same amount.

(3)Committed credit facility, which requires commitment fees of 0.075% on the unused amount.

(4)Letters of credit outstanding total approximately $0.7M at both September 30, 2024 and 2023, which reduces the amount available by the same amount.

Amounts available under credit facilities are reduced by bank or commercial paper borrowings, as applicable, and any outstanding letters of credit. Neither NJNG nor the results of its operations are obligated or pledged to support the NJR Credit Facility.

NJR

On August 7, 2024, NJR entered into a second amendment to NJR’s Second Amended and Restated Credit Agreement, which reduced the NJR Credit Facility from $650M to $575M and extended the maturity date to August 7, 2029, pursuant to NJR’s option to extend the maturity date under the NJR Second Amended and Restated Credit Agreement, and permits NJR to request that the maturity date be extended up to two times for an additional period of one year each. The NJR Credit Facility includes an accordion feature, which allows NJR, in the absence of a default or event of default, to increase from time to time, with the existing or new lenders, the revolving credit commitments under the NJR Credit Facility in increments of at least $50M, with the total revolving credit commitments not exceeding $750M. The NJR Credit Facility also permits the borrowing of revolving loans and swingline loans, as well as a $75M sublimit for the issuance of letters of credit. Certain of NJR’s unregulated subsidiaries have guaranteed all of NJR’s obligations under the NJR Credit Facility. The credit facility is used primarily to finance its share repurchases, to satisfy ES’s short-term liquidity needs and to finance, on an initial basis, unregulated investments.

As of September 30, 2024, NJR had eleven letters of credit outstanding totaling $12.3M, which reduced the amount available under the NJR Credit Facility by the same amount. NJR does not anticipate that these letters of credit will be drawn upon by the counterparties, and they will be renewed as necessary.

Neither NJNG nor the results of its operations are obligated or pledged to support the NJR credit or debt shelf facilities.

NJNG

On August 7, 2024, NJNG entered into a second amendment to NJNG’s Second Amended and Restated Credit Agreement governing a $250M NJNG Credit Facility, which extended the maturity date of the facility to August 7, 2029, pursuant to NJNG’s option to extend the maturity date under the NJNG Second Amended and Restated Credit Agreement, and permits NJNG to request that the maturity date be extended up to two times for an additional period of one year each. The NJNG Credit Facility includes an accordion feature, which allows NJNG, in the absence of a default or event of default, to increase from time to time, with the existing or new lenders, the revolving credit commitments under the NJNG Credit Facility in increments of at least $50M with the total revolving credit commitments not exceeding $350M. The NJNG Credit Facility also permits the borrowing of revolving loans and swingline loans, as well as a $30M sublimit for the issuance of letters of credit.

As of September 30, 2024, NJNG has two letters of credit outstanding for $0.7M, which reduced the amount available under the NJNG Credit Facility by the same amount. NJNG does not anticipate that these letters of credit will be drawn upon by the counterparties.

XML

STOCK-BASED COMPENSATION

12 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

10. STOCK-BASED COMPENSATION

NJR issues shares out of its 2017 Stock Award and Incentive Plan, in the form of performance share units, restricted stock units, deferred retention stock units and unrestricted common stock to non-employee directors. As of September 30, 2024, 2,620,389 shares remain available for future issuance.

The following table summarizes all stock-based compensation expense recognized during the following fiscal years:

(Thousands)	2024		2023		2022
Stock-based compensation expense:
Performance share awards	$	5,437	$	4,882	$	4,131
Restricted and non-restricted stock	3,958		3,647		3,189
Deferred retention stock	6,633		6,187		7,507
Compensation expense included in operation and maintenance expense	16,028		14,716		14,827
Income tax benefit (1)	(3,898)		(3,563)		(3,624)
Total, net of tax	$	12,130	$	11,153	$	11,203

(1)Excludes additional tax expense related to delivered shares of $1.2M, $0.6M and $0.1M as of September 30, 2024, 2023 and 2022, respectively.

Performance Share Units

In fiscal 2024, the Company granted to certain officers 54,693 performance shares, which are market condition awards that vest on September 30, 2026, subject to the Company meeting certain conditions. In fiscal 2024, the Company also granted to certain officers 88,107 performance shares, of which 50,504 vest on September 30, 2026, and 37,603 vest annually over a three-year period beginning in September 2024, both of which are subject to the Company meeting certain performance conditions.

In fiscal 2023, the Company granted to certain officers 39,614 performance shares, which are market condition awards that vest on September 30, 2025, subject to the Company meeting certain conditions. In fiscal 2023, the Company also granted to certain officers 73,047 performance shares, of which 42,449 vest on September 30, 2025, and 30,598 vest annually over a three-year period beginning in September 2023, both of which are subject to the Company meeting certain performance conditions.

In fiscal 2022, the Company granted to certain officers 44,965 performance shares, which are market condition awards that vested on September 30, 2024, subject to the Company meeting certain conditions. In fiscal 2022, the Company also granted to certain officers 73,561 performance shares, of which 44,596 vested on September 30, 2024, and 28,965 vest annually over a three-year period beginning in September 2022, both of which were subject to the Company meeting certain performance conditions. The vesting of these awards are shown in the table below.

There is approximately $6.0M of deferred compensation related to unvested performance shares that is expected to be recognized over the weighted average period of 1.7 years.

The following table summarizes the performance share activity under the stock award and incentive plans for the past three fiscal years:

	Shares (1)	Weighted Average Grant Date Fair Value		Total Fair Value of Vested Shares (in Thousands)
Non-vested and outstanding at September 30, 2021	166,091		$36.08		—
Granted	118,526		$38.84		—
Vested (2)	(76,708)		$39.57		$	2,765
Cancelled/forfeited	(15,788)		$37.33		—
Non-vested and outstanding at September 30, 2022	192,121		$36.29		—
Granted	112,661		$46.00		—
Vested (3)	(105,197)		$35.07		$	4,126
Cancelled/forfeited	(9,330)		$38.64		—
Non-vested and outstanding at September 30, 2023	190,255		$42.60		—
Granted	142,800		$42.55		—
Vested (4)	(112,183)		$39.91		$	5,271
Cancelled/forfeited	(1,913)		$43.83		—
Non-vested and outstanding at September 30, 2024	218,959		$43.93		—

(1)The number of common shares issued related to certain performance shares may range from zero to 150% of the number of shares shown in the table above based on the Company’s achievement of performance goals.

(2)As certified by the Company’s Leadership and Compensation Committee on November 9, 2022, the number of common shares earned related to TSR performance was 112% or 30,472 shares, the number of common shares earned related to NFE performance was 105% or 26,282 shares, and the number of common shares earned related to Performance Based Restricted Stock was 100% or 28,965 shares. Each award earned excludes accumulated dividends. The number represented on this line is the target number of 100%.

(3)As certified by the Company’s Leadership and Compensation Committee on November 15, 2023, the number of common shares earned related to TSR performance was 150% or 59,192 shares, the number of common shares earned related to NFE performance was 150% or 55,832 shares, and the number of common shares earned related to Performance Based Restricted Stock was 100% or 30,598 shares. Each award earned excludes accumulated dividends. The number represented on this line is the target number of 100%.

(4)As certified by the Company’s Leadership and Compensation Committee on November 6, 2024, the number of common shares earned related to TSR performance was 150% or 60,092 shares, the number of common shares earned related to NFE performance was 124% or 49,269 shares, and the number of common shares earned related to Performance Based Restricted Stock was 100% or 37,603 shares. Each award earned excludes accumulated dividends. The number represented on this line is the target number of 100%.

The Company measures compensation expense related to performance shares based on the fair value of these awards at their date of grant. In accordance with ASC 718, Compensation - Stock Compensation, compensation expense for market condition grants are recognized for awards granted, and are not adjusted based on actual achievement of the performance goals. The Company estimated the fair value of these grants on the date of grant using a lattice model. Performance condition grants are initially fair valued at the Company’s stock price on the grant date and are subsequently adjusted for actual achievement of the performance goals.

Restricted Stock Units

The Company granted 67,522, 64,080 and 54,826 shares of restricted stock during fiscal 2024, 2023 and 2022, respectively. The shares vest annually over a three-year period beginning in October of the fiscal year in which they were granted. On April 25, 2024, the Company also granted an additional 3,465 shares of restricted stock that vest annually over a three-year period beginning in April of the fiscal year in which they were granted. There is approximately $1.7M of deferred compensation related to unvested restricted stock shares that is expected to be recognized over the weighted average period of 1.8 years.

The following table summarizes the restricted stock activity under the stock award and incentive plans for the past three fiscal years:

	Shares	Weighted Average Grant Date Fair Value		Total Fair Value of Vested Shares (in Thousands)
Non-vested and outstanding at September 30, 2021	101,621		$36.87		—
Granted	54,826		$38.84		—
Vested	(47,867)		$39.01		$	1,824
Cancelled/forfeited	(10,756)		$37.06		—
Non-vested and outstanding at September 30, 2022	97,824		$36.90		—
Granted	64,080		$46.00		—
Vested	(48,312)		$40.30		$	1,910
Cancelled/forfeited	(4,716)		$38.77		—
Non-vested and outstanding at September 30, 2023	108,876		$41.55		—
Granted	70,987		$42.59		—
Vested	(53,393)		$39.74		$	2,256
Cancelled/forfeited	(970)		$44.52		—
Non-vested and outstanding at September 30, 2024	125,500		$42.89		—

Deferred Retention Stock Units

Deferred retention stock awards are granted upon approval by the Board of Directors, which generally occurs subsequent to the fiscal year end. Deferred retention stock awards vest immediately when granted, with shares delivered at a future date in accordance with the terms of the underlying agreements. The expense for these awards is recognized in the fiscal year in which services are rendered. The following table summarizes the deferred retention stock award under the stock award and incentive plans for the past three fiscal years:

	Shares	Weighted Average Grant Date Fair Value		Total Fair Value of Vested Shares (in Thousands)
Outstanding at September 30, 2021	208,856		$46.28		—
Granted/Vested	192,728		$38.95		—
Delivered	(163,499)		$47.95		$	6,167
Forfeited	(6,818)		$40.33		—
Outstanding at September 30, 2022	231,267		$39.16		—
Granted/Vested	134,941		$45.85		—
Delivered	(38,115)		$40.67		$	1,517
Outstanding at September 30, 2023	328,093		$41.74		—
Granted/Vested	155,188		$42.55		—
Delivered	(5,089)		$35.86		$	213
Forfeited	(235)		$42.55		—
Outstanding at September 30, 2024	477,957		$42.07		—

Non-Employee Director Stock

Non-employee director compensation includes an annual equity retainer that is awarded at the time of the Company’s annual meeting of shareowners. The shares vest upon the earlier of the first anniversary of the grant date or the date of the Company’s next annual meeting of shareowners following the grant date and are amortized to expense over a 12-month period.

The following summarizes non-employee director share awards for the past three fiscal years:

	2024	2023	2022
Shares granted	29,996	24,044	30,908
Weighted average grant date fair value	$41.67	$49.58	$39.09

XML

EMPLOYEE BENEFIT PLANS

12 Months Ended

Sep. 30, 2024

Retirement Benefits [Abstract]

EMPLOYEE BENEFIT PLANS

11. EMPLOYEE BENEFIT PLANS

Pension and Other Postemployment Benefit Plans

The Company has two trusteed, noncontributory defined benefit retirement plans covering eligible regular represented and non-represented employees with more than one year of service. Defined benefit plan benefits are based on years of service and average compensation during the highest 60 consecutive months of employment. The Company also provides postemployment medical and life insurance benefits to employees who meet certain eligibility requirements.

All represented employees of NJRHS hired on or after October 1, 2000, non-represented employees hired on or after October 1, 2009 and NJNG represented employees hired on or after January 1, 2012 are covered by an enhanced defined contribution plan instead of the defined benefit plan. Participation in the postemployment medical and life insurance plan was also frozen to new employees as of the same dates, with the exception of new NJRHS represented employees, for which benefits were frozen beginning April 3, 2012.

The Company maintains an unfunded nonqualified PEP that was established to provide employees with the full level of benefits as stated in the qualified plan without reductions due to various limitations imposed by the provisions of federal income tax laws and regulations. There are no plan assets in the nonqualified plan due to the nature of the plan.

The Company’s funding policy for its pension plans is to contribute at least the minimum amount required by the Employee Retirement Income Security Act of 1974, as amended. In fiscal 2024 and 2023, the Company had no minimum funding requirements and did not make any discretionary contributions to the pension plans. The Company does not expect to be required to make additional contributions to fund the pension plans during the next fiscal year based on current actuarial assumptions; however, funding requirements are uncertain and can depend significantly on changes in actuarial assumptions, returns on plan assets and changes in the demographics of eligible employees and covered dependents.

There are no federal requirements to pre-fund OPEB benefits. However, the Company is required to fund certain amounts due to regulatory agreements with the BPU. The Company contributed $7.8M and $4.2M in fiscal 2024 and 2023, respectively, and estimates that it will contribute between $5M and $10M over each of the next five years. Additional contributions may be required based on market conditions and changes to assumptions.

In January 2024, the Company announced changes to its postretirement medical benefits plan. Beginning on January 1, 2025, the Company will replace the existing retiree medical coverage for certain eligible employees age 65 and older and their Medicare-eligible dependents with an employer-funded Health Reimbursement Arrangement. Medicare-eligible participants may use the Health Reimbursement Arrangement toward the purchase of supplemental insurance coverage and for other qualified medical expenses. The liability associated with postretirement medical benefits was remeasured as of January 1, 2024. The change in post-retirement medical benefits is being amortized into earnings over approximately eight years, the average remaining service to retirement for all plan participants.

The following summarizes the changes in the funded status of the plans and the related liabilities recognized on the Consolidated Balance Sheets as of September 30:

	Pension (1)				OPEB
(Thousands)	2024		2023		2024		2023
Change in Benefit Obligation
Benefit obligation at beginning of year	$	290,321	$	290,823	$	203,406	$	173,217
Service cost	4,976		5,402		1,406		2,471
Interest cost	16,240		15,174		8,327		9,146
Plan amendments	—		—		(79,881)		—
Plan participants’ contributions (2)	27		32		703		552
Actuarial loss (gain)	36,863		(7,057)		54,518		25,363
Benefits paid, net of retiree subsidies received	(14,895)		(14,053)		(6,679)		(7,343)
Benefit obligation at end of year	$	333,532	$	290,321	$	181,800	$	203,406
Change in plan assets
Fair value of plan assets at beginning of year	$	298,361	$	284,347	$	106,783	$	99,736
Actual return on plan assets	58,682		27,456		21,249		9,826
Employer contributions	535		579		7,846		4,192
Benefits paid, net of plan participants’ contributions (2)	(14,868)		(14,021)		(6,157)		(6,971)
Fair value of plan assets at end of year	$	342,710	$	298,361	$	129,721	$	106,783
Funded status	$	9,178	$	8,040	$	(52,079)	$	(96,623)
Amounts recognized on Consolidated Balance Sheets
Postemployment employee benefit asset
Noncurrent	$	21,104	$	18,684	$	3,556	$	—
Postemployment employee benefit liability
Current	$	(552)	$	(538)	$	(2,400)	$	(4,201)
Noncurrent	(11,374)		(10,106)		(53,235)		(92,422)
Total	$	9,178	$	8,040	$	(52,079)	$	(96,623)

(1)Includes the Company’s PEP.

(2)Contributions made by employees hired prior to July 1, 1998, that were eligible to elect an additional participant contribution to enhance their benefits, were immaterial during the periods.

The Company recognizes a liability for its underfunded benefit plans as required by ASC 715, Compensation - Retirement Benefits. The Company records the offset to regulatory assets for the portion of liability relating to NJNG and to accumulated OCI for the portion of the liability related to its unregulated operations. The increase in actuarial loss during fiscal 2024 compared with fiscal 2023 for both pension and OPEB was due primarily to the decrease in the discount rate.

The following table summarizes the amounts recognized in regulatory assets and accumulated OCI as of September 30:

	Regulatory Assets				Accumulated Other Comprehensive Income (Loss)
(Thousands)	Pension		OPEB		Pension		OPEB
Balance at September 30, 2022	$	35,321	$	20,110	$	5,003	$	(6,822)
Amounts arising during the period:
Net actuarial (gain) loss	(10,493)		9,936		(4,048)		12,320
Amounts amortized to net periodic costs:
Net actuarial (loss)	(87)		—		(213)		—
Prior service (cost)	(103)		—		—		—
Balance at September 30, 2023	$	24,638	$	30,046	$	742	$	5,498
Amounts arising during the period:
Net actuarial (gain) loss	(2,407)		27,108		934		14,080
Prior service (credit)	—		(60,504)		—		(19,376)
Amounts amortized to net periodic costs:
Net actuarial gain (loss)	2		(3,098)		(119)		(1,164)
Prior service (cost) credit	(61)		7,458		—		2,555
Balance at September 30, 2024	$	22,172	$	1,010	$	1,557	$	1,593

The amounts in regulatory assets and accumulated OCI not yet recognized as components of net periodic benefit cost as of September 30 are:

	Regulatory Assets								Accumulated Other Comprehensive Income (Loss)
	Pension				OPEB				Pension				OPEB
(Thousands)	2024		2023		2024		2023		2024		2023		2024		2023
Net actuarial loss	$	22,172	$	24,577	$	54,056	$	30,046	$	1,557	$	742	$	18,414	$	5,498
Prior service cost (credit)	—		61		(53,046)		—		—		—		(16,821)		—
Total	$	22,172	$	24,638	$	1,010	$	30,046	$	1,557	$	742	$	1,593	$	5,498

To the extent the unrecognized amounts in accumulated OCI or regulatory assets exceed 10% of the greater of the benefit obligation or the fair value of plan assets, an amortized amount over the average expected future working lifetime of the active plan participants is recognized.

The projected benefit and accumulated benefit obligations and the fair value of plan assets as of September 30, are as follows:

	Pension
(Thousands)	2024		2023
Projected benefit obligation	$	333,532	$	290,321
Accumulated benefit obligation	$	306,850	$	267,794
Fair value of plan assets	$	342,710	$	298,361

The components of the net periodic cost for pension benefits, including the Company’s PEP, and OPEB costs (principally health care and life insurance) for employees and covered dependents for fiscal years ended September 30, are as follows:

	Pension						OPEB
(Thousands)	2024		2023		2022		2024		2023		2022
Service cost	$	4,976	$	5,402	$	8,291	$	1,406	$	2,471	$	4,305
Interest cost	16,240		15,174		9,632		8,327		9,146		6,355
Expected return on plan assets	(20,346)		(19,972)		(21,275)		(7,920)		(6,721)		(7,575)
Recognized actuarial loss	117		300		8,745		4,262		—		5,684
Prior service cost (credit) amortization	61		103		101		(10,013)		—		(144)
Net periodic benefit cost recognized as expense	$	1,048	$	1,007	$	5,494	$	(3,938)	$	4,896	$	8,625

Assumptions

The weighted average assumptions used to determine the Company’s benefit costs during the fiscal years below and obligations as of September 30, are as follows:

	Pension									OPEB
	2024			2023			2022			2024			2023			2022
Benefit costs:
Discount rate	5.89/5.87%		(1)	5.50/5.50%		(1)	3.10/3.07%		(1)	5.97/5.94%		(1)	5.51/5.51%		(1)	3.24/3.17%		(1)
Expected asset return	7.00	%		7.00	%		6.75	%		7.00	%		7.00	%		6.75	%
Compensation increase	3.00/3.50%		(1)	3.00/3.50%		(1)	3.00/3.50%		(1)	3.00/3.50%		(1)	3.00/3.50%		(1)	3.00/3.50%		(1)
Obligations:
Discount rate	5.01/4.99%		(1)	5.89/5.87%		(1)	5.50/5.50%		(1)	4.97/4.98%		(1)	5.97/5.94%		(1)	5.51/5.51%		(1)
Compensation increase	3.00/3.50%		(1)	3.00/3.50%		(1)	3.00/3.50%		(1)	3.00/3.50%		(1)	3.00/3.50%		(1)	3.00/3.50%		(1)

(1)Percentages for represented and non-represented plans, respectively.

When measuring its PBO, the Company uses an aggregate discount rate at which its obligation could be effectively settled. The Company determines a single weighted average discount rate based on a yield curve comprised of rates of return on a population of high quality debt issuances (AA- or better) whose cash flows (via coupons or maturities) match the timing and amount of its expected future benefit payments. The Company measures its service and interest costs using a disaggregated, or spot rate, approach. The Company applies the duration-specific spot rates from the full yield curve, as of the measurement date, to each year’s future benefit payments, which aligns the timing of the plans’ separate future cash flows to the corresponding spot rates on the yield curve.

Information relating to the assumed HCCTR used to determine expected OPEB benefits as of September 30, is as follows:

($ in thousands)	2024	2023	2022
HCCTR	8.8%	7.4%	6.6%
Ultimate HCCTR	4.5%	4.5%	4.5%
Year ultimate HCCTR reached	2032	2032	2027

The Company’s investment objective is a long-term real rate of return on assets before permissible expenses that is approximately 5% greater than the assumed rate of inflation, as measured by the consumer price index. The expected long-term rate of return is based on the asset categories in which the Company invests and the current expectations and historical performance for these categories.

The mix and targeted allocation of the pension and OPEB plans’ assets are as follows:

	2025		Assets at
	Target		September 30,
Asset Allocation	Allocation		2024		2023
U.S. equity securities	29	%	29	%	34	%
International equity securities	16		16		16
Fixed income	39		38		31
Collective investment trusts at NAV	16		17		19
Total	100	%	100	%	100	%

The Company uses mortality assumptions published by the Society of Actuaries for its pension and other postemployment benefit obligations, which reflects life expectancies in the U.S. The Company used projection scale MP-2021 and the Pri-2012 mortality study as of September 30, 2024 and 2023.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the following fiscal years:

(Thousands)	2025		2026		2027		2028		2029		2030 - 2034
Pension	$	16,273	$	17,378	$	18,452	$	19,423	$	20,493	$	115,709
OPEB	$	8,397	$	9,300	$	10,138	$	10,925	$	11,703	$	65,473

The Company’s OPEB plans provide prescription drug benefits that are actuarially equivalent to those provided by Medicare Part D. Therefore, under the Medicare Prescription Drug, Improvement and Modernization Act of 2003, the Company qualifies for federal subsidies. Estimated subsidy payments for fiscal 2024 and 2025 are immaterial and zero thereafter.

Pension and OPEB assets held in the master trust, measured at fair value, are summarized as follows:

	Pension				OPEB
(Thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Total
As of September 30, 2024
Assets
Money market funds	$	—	$	—	$	24	$	24
Registered Investment Companies:
Equity Funds:
Large Cap Index	76,897		76,897		38,040		38,040
Extended Market Index	16,665		16,665		7,977		7,977
International Stock	50,549		50,549		22,730		22,730
Fixed Income Funds:
Emerging Markets	13,354		13,354		5,358		5,358
Core Fixed Income	—		—		28,765		28,765
High Yield Bond Fund	16,704		16,704		9,195		9,195
Long Duration Fund	106,656		106,656		—		—
Total assets in the fair value hierarchy	$	280,825	280,825		$	112,089	112,089
Investments measured at net asset value
Collective investment trusts			61,885				17,632
Total assets at fair value			$	342,710			$	129,721
As of September 30, 2023
Assets
Registered Investment Companies:
Equity Funds:
Large Cap Index	$	81,171	$	81,171	$	30,884	$	30,884
Extended Market Index	17,256		17,256		6,444		6,444
International Stock	48,557		48,557		17,966		17,966
Fixed Income Funds:
Emerging Markets	11,471		11,471		4,306		4,306
Core Fixed Income	—		—		22,241		22,241
High Yield Bond Fund	20,685		20,685		7,651		7,651
Long Duration Fund	58,484		58,484		—		—
Total assets in the fair value hierarchy	$	237,624	237,624		$	89,492	89,492
Investments measured at net asset value
Collective investment trusts			60,737				17,291
Total assets at fair value			$	298,361			$	106,783

The Plan had no Level 2 or Level 3 fair value measurements during fiscal 2024 and 2023, and there have been no changes

in valuation methodologies as of September 30, 2024. The Plan held assets that are valued using NAV as a practical expedient, which are excluded from the fair value hierarchy. The following is a description of the valuation methodologies used for assets measured at fair value:

Asset Types	Description of the Valuation Methodologies
Money Market funds	Represents bank balances and money market funds that are valued based on the NAV of shares held at year end.
Registered Investment Companies	Equity and fixed income funds valued at the NAV of shares held by the plan at year end as reported on the active market on which the individual securities are traded.
Collective investment trusts	The NAV for collective investment trusts is provided by the Trustee and is used as a practical expedient to estimate fair value. The NAV is based on the value of the underlying assets owned by the fund less liabilities.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

Defined Contribution Plan

The Company offers a Savings Plan to eligible employees. The Company matched 85% of participants’ contributions up to 6% of base compensation. Beginning on March 6, 2024, the Company’s contribution changed to 100% of the first 3% and 80% of the next 3% of base compensation. Represented NJRHS employees, non-represented employees hired on or after October 1, 2009, and NJNG represented employees hired on or after January 1, 2012, are eligible for an employer special contribution of between 4.0% and 5.0% of base compensation, depending on years of service, into the Savings Plan on their behalf. The amount expensed and contributed for the matching provision of the Savings Plan was $6.8M in fiscal 2024, $5.9M in fiscal 2023 and $5.5M in fiscal 2022. The amount contributed for the employer special contribution of the Savings Plan was $3.6M in fiscal 2024, $2.1M in fiscal 2023 and $2.4M in fiscal 2022.

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INCOME TAXES

12 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

12. INCOME TAXES

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

(Thousands)	2024		2023		2022
Current:
Federal	$	691	$	13,393	$	4,238
State	(682)		7,716		2,104
Deferred:
Federal	66,623		36,825		55,968
State	18,531		(8,381)		14,185
Investment/production tax credits	(257)		(278)		(300)
Income tax provision	$	84,906	$	49,275	$	76,195

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

(Thousands)	2024		2023
Deferred tax assets
Investment tax credits (1)	$	192,238	$	191,948
State net operating losses	38,762		39,612
Deferred revenue	14,107		8,205
Fair value of derivatives	5,397		5,386
Impairment of equity method investment	14,004		14,004
Postemployment benefits	855		6,502
Incentive compensation	10,142		8,949
Amortization of intangibles	6,248		6,308
Overrecovered natural gas costs	9,072		8,564
Allowance for doubtful accounts	3,744		4,485
Other	7,226		7,636
Total deferred tax assets	301,795		301,599
Less: Valuation allowance	(5,621)		(5,747)
Total deferred tax assets net of valuation allowance	$	296,174	$	295,852
Deferred tax liabilities
Property-related items	$	(563,403)	$	(487,294)
Remediation costs	(21,656)		(18,532)
Investments in equity investees	(28,704)		(28,325)
Conservation incentive program	(14,379)		(14,075)
Other	(6,065)		(4,670)
Total deferred tax liabilities	$	(634,207)	$	(552,896)
Total net deferred tax liabilities	$	(338,033)	$	(257,044)

(1)Includes approximately $0.7M for NJNG for both fiscal 2024 and 2023, which is being amortized over the life of the related assets.

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)	2024			2023			2022
Statutory income tax expense	$	78,683		$	65,940		$	73,735
Change resulting from:
Investment/production tax credits	(257)			(278)			(300)
Cost of removal of assets placed in service prior to 1981	(5,644)			(4,758)			(3,533)
AFUDC equity	(1,444)			(1,499)			(2,361)
State income taxes, net of federal benefit	14,517			13,293			13,072
Valuation allowance	(126)			(16,494)			(1,372)
Tax Act - utility excess deferred income taxes amortized	(3,573)			(3,573)			(3,573)
Other	2,750			(3,356)			527
Income tax provision	$	84,906		$	49,275		$	76,195
Effective income tax rate	22.7		%	15.7		%	21.7		%

The Company and one or more of its subsidiaries files or expects to file income and/or franchise tax returns in the U.S. federal jurisdiction and in the states of Colorado, Connecticut, Delaware, Florida, Georgia, Indiana, Louisiana, Maryland, Michigan, Mississippi, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Texas, Virginia and West Virginia. The Company neither files in, nor believes it has a filing requirement in, any foreign jurisdictions.

The Company’s U.S. federal income tax returns through fiscal 2020 have either been reviewed by the IRS, or the related statute of limitations has expired and all matters have been settled. U.S. federal income tax returns for periods subsequent to fiscal 2020 are open to examination by the IRS. For all periods subsequent to those ended September 30, 2020, the Company’s state income tax returns are statutorily open to examination in all applicable states with the exception of Colorado and Texas.

In March 2024, the State of New Jersey commenced an examination of the Company’s Corporate Business Tax return for NJR and certain subsidiaries for the fiscal periods ended September 30, 2019 through September 30, 2022.

NJR evaluates its tax positions to determine the appropriate accounting and recognition of potential future obligations associated with uncertain tax positions. A tax benefit claimed, or expected to be claimed, on a tax return may be recognized only if it is more likely than not that the tax position will be upheld upon examination by the applicable taxing authority and is measured based on the largest tax benefit that is more than 50% likely to be realized. Interest and penalties related to unrecognized tax benefits, if any, are recognized within income tax expense, and accrued interest and penalties are recognized within other noncurrent liabilities on the Consolidated Balance Sheets.

Inflation Reduction Act

In August 2022, the President of the U.S. signed the Inflation Reduction Act, which contains provisions addressing inflation, clean energy, healthcare and taxes beginning in 2023. The Inflation Reduction Act imposes a 15% minimum tax rate on corporations with higher than $1B of annual income, along with a 1% excise tax on corporate stock repurchases. The Inflation Reduction Act raised the ITC from 26% to 30% through the end of 2032, dropping to 26% for property under construction before the end of 2033 and to 22% for property under construction before the end of 2034. The ITC expires starting in 2035 unless it is renewed. There are additional opportunities to increase the credit amount for certain facilities that are placed in service after December 31, 2022. The credit amount can be increased by 10% if certain domestic content requirements are satisfied or if the facility is located in an energy community, such as a brownfield site. ITCs are also expanded to include stand-alone energy storage projects without being integrated into a solar facility, allowing solar to claim production tax credits that are a production-based credit extending for 10 years following the placed-in-service date of the facility, and introducing the concept of transferability of tax credits, providing an additional option to monetize such credits.

The Company evaluated the impacts of the Inflation Reduction Act on its financial position, results of operations and cash flows, noting the corporate alternative minimum tax does not impact the Company as the applicable income thresholds have not been met. Upon the repurchase of common stock through the Company’s share repurchase program, the Company would be subject to the 1% excise tax.

Other Tax Items

As of September 30, 2024 and 2023, the Company has tax credit carryforwards of approximately $191.6M and $191.2M, respectively, which each have a life of 20 years. The Company expects to utilize this entire carryforward prior to expiration, which would begin in fiscal 2036.

The impairment of the equity method investment in PennEast created net capital loss attributes totaling approximately $56.6M, which could only be utilized to offset capital gains income and carried back three years and forward five years prior to expiration. During the fourth quarter of fiscal 2023, the Company determined that the tax losses created by the impairment may qualify as an ordinary loss, rather than a capital loss. As of September 30, 2024 and 2023, the Company had a valuation allowance of approximately $5.1M and $5.0M, respectively.

As of September 30, 2024, the Company evaluated certain tax benefits recorded in the Consolidated Financial Statements and concluded that a portion of the tax benefits are uncertain at this time. As a result, the Company recorded a reserve for uncertain tax benefits. The reserve for uncertain tax benefits is as follows:

(Thousands)	2024		2023
Balance at October 1,	$	4,978	$	—
Additions based on tax positions related to the current fiscal period	15		4,978
Balance at September 30,	$	4,993	$	4,978

As of September 30, 2024 and 2023, there are $5.0M of unrecognized tax benefits that if recognized would affect the annual effective tax rate. The tax benefits relate to fiscal tax years open to examination by the IRS and the state of Pennsylvania and may be subject to subsequent adjustment.

As of September 30, 2024 and 2023, the Company has state income tax net operating losses of approximately $634.7M and $631.2M, respectively. These state net operating losses have varying carry-forward periods dictated by the state in which they were incurred; these state carry-forward periods range from seven to 20 years, with the majority expiring after 2037. The Company expects to utilize this entire carryforward, other than as described below.

As of September 30, 2022, the Company had a valuation allowance of approximately $17.2M related to the recognition of state net operating loss carryforwards. As of September 30, 2023, it was determined that the realization of certain deferred tax assets was more likely than not, and thus the associated valuation allowance of approximately $15.8M was no longer required. Reversal of the valuation allowance resulted in a corresponding income tax benefit on the Consolidated Statement of Operations. As of September 30, 2024, the remaining valuation allowance of approximately $0.6M related primarily to other state income tax attributes which the Company could not conclude were realizable on a more-likely-than-not basis.

The Consolidated Appropriations Act extended the 30% ITC for solar property that is under construction on or before December 31, 2019. Projects placed in service after December 31, 2019, may also qualify for a 30% federal ITC if 5% or more of the total costs of a solar property are incurred before the end of the applicable year and there are continuous efforts to advance toward completion of the project, based on the IRS guidance around ITC safe harbor determination. The credit declined to 26% for property under construction before the end of 2020. The Consolidated Appropriations Act of 2021 extended the 26% tax credit for property under construction during 2021 and 2022. The Inflation Reduction Act raised the ITC from 26% to 30% through the end of 2032, as previously stated.

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LEASES

12 Months Ended

Sep. 30, 2024

Leases [Abstract]

LEASES

13. LEASES

Lessee Accounting

The Company determines if an arrangement is a lease at inception based on whether the Company has the right to control the use of an identified asset, the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset. After the criteria are satisfied, the Company accounts for these arrangements as leases in accordance with ASC 842, Leases. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term, including payments at commencement that depend on an index or rate. Most leases in which the Company is the lessee do not have a readily determinable implicit rate, so an incremental borrowing rate, based on the information available at the lease commencement date, is utilized to determine the present value of lease payments. When a secured borrowing rate is not readily available, unsecured borrowing rates are adjusted for the effects of collateral to determine the incremental borrowing rate. The Company uses the implicit rate for agreements in which it is a lessor. The Company has not entered into any material agreements in which it is a lessor. Lease expense and lease income are recognized on a straight-line basis over the lease term for operating leases.

The Company’s lease agreements primarily consist of commercial solar land leases, storage and capacity leases, equipment and real property, including land and office facilities, office equipment and the sale leaseback of certain natural gas meters.

Certain leases contain escalation provisions for inflation metrics. The storage leases contain a variable payment component that relates to the change in the inflation metrics that are not known past the current payment period. The variable components of these lease payments are excluded from the lease payments that are used to determine the related right-of-use lease asset and liability. The variable portion of these leases are recognized as leasing expenses when they are incurred. The capacity lease payments are fully variable and based on the amount of natural gas stored in the storage caverns.

Generally, the Company’s solar land lease terms are between 20 and 50 years and may include multiple options to extend the terms for an additional five to 20 years. The Company’s office leases vary in duration, ranging from two to 11 years, and may or may not include extension or early purchase options. The Company’s meter lease terms are between six and 10 years with purchase options available prior to the end of the term. Equipment leases, including general office equipment, also vary in duration, with an average term of nine years. The Company’s storage and capacity leases have assumed terms of 50 years to coincide with the expected useful lives of the cavern assets with which the leases are associated. The Company’s lease terms may include options to extend, purchase the leased asset or terminate a lease, and they are included in the lease liability calculation when it is reasonably certain that those options will be exercised. The Company has elected an accounting policy that exempts leases with an original term of one year or less from the recognition requirements of ASC 842, Leases.

The Company has lease agreements with lease and non-lease components and has elected the practical expedient to combine lease and non-lease components for certain classes of leases, such as office buildings, solar land leases and office equipment. Variable payments are not considered material to the Company. The Company’s lease agreements do not contain any material residual value guarantees, material restrictions or material covenants. In July 2021, NJNG entered into 16-year lease agreements, as Lessor, with various NJR subsidiaries, as Lessees, for office space at the Company’s headquarters in Wall, New Jersey, the effects of which are eliminated in consolidation.

The following table presents the Company’s lease costs included in the Consolidated Statements of Operations for the fiscal year ended September 30:

(Thousands)	Income Statement Location	2024		2023		2022
Operating lease cost (1)	Operation and maintenance	$	10,368	$	9,336	$	9,702
Finance lease cost
Amortization of right-of-use assets	Depreciation and amortization	2,160		2,105		$	1,769
Interest on lease liabilities	Interest expense, net of capitalized interest	914		1,084		612
Total finance lease cost		$	3,074	$	3,189	2,381
Short-term lease cost	Operation and maintenance	—		—		34
Variable lease cost	Operation and maintenance	1,099		1,128		781
Total lease cost		$	14,541	$	13,653	$	12,898

(1)Net of capitalized costs.

The following table presents supplemental cash flow information related to leases for the fiscal year ended September 30:

(Thousands)	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	7,932	$	8,942	$	7,417
Operating cash flows for finance leases	$	914	$	1,084	$	831
Financing cash flows for finance leases	$	7,792	$	7,379	$	7,145

Assets obtained or modified through operating lease liabilities totaled approximately $14.1M and $13.2M during fiscal 2024 and 2023, respectively. Assets obtained or modified through other leases, including those which are finance leases and financing transactions for accounting purposes, totaled $8.4M during fiscal 2023. There were no assets obtained or modified through finance leases during fiscal 2024.

The following table presents the balance and classifications of the Company’s right of use assets and lease liabilities included in the Consolidated Balance Sheets for the fiscal year ended September 30:

(Thousands)	Balance Sheet Location	2024		2023
Assets
Noncurrent
Operating lease assets	Operating lease assets	$	184,485	$	175,740
Finance lease assets	Utility plant	26,088		28,248
Total lease assets		$	210,573	$	203,988
Liabilities
Current
Operating lease liabilities	Operating lease liabilities	$	4,945	$	4,772
Finance lease liabilities	Current maturities of long-term debt	7,534		8,477
Noncurrent
Operating lease liabilities	Operating lease liabilities	159,303		148,023
Finance lease liabilities	Long-term debt	16,026		22,875
Total lease liabilities		$	187,808	$	184,147

For operating lease assets and liabilities, the weighted average remaining lease term was 28.6 years and 29.2 years and the weighted average discount rate used in the valuation over the remaining lease term was 3.8% and 3.5% as of September 30, 2024 and 2023, respectively.

For finance lease assets and liabilities, the weighted average remaining lease term was 3.0 years and 3.3 years and the weighted average discount rate used in the valuation over the remaining lease term was 3.4% and 2.7% as of September 30, 2024 and 2023, respectively.

The following table presents the Company’s maturities of lease liabilities as of September 30, 2024:

(Thousands)	Operating		Finance
2025	$	8,408	$	8,169
2026	8,852		6,411
2027	8,834		4,083
2028	8,925		4,715
2029	8,994		1,676
Thereafter	233,942		—
Total future payments	277,955		25,054
Less: interest	(113,707)		(1,494)
Total liability	$	164,248	$	23,560

LEASES

13. LEASES

Lessee Accounting

The Company determines if an arrangement is a lease at inception based on whether the Company has the right to control the use of an identified asset, the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset. After the criteria are satisfied, the Company accounts for these arrangements as leases in accordance with ASC 842, Leases. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term, including payments at commencement that depend on an index or rate. Most leases in which the Company is the lessee do not have a readily determinable implicit rate, so an incremental borrowing rate, based on the information available at the lease commencement date, is utilized to determine the present value of lease payments. When a secured borrowing rate is not readily available, unsecured borrowing rates are adjusted for the effects of collateral to determine the incremental borrowing rate. The Company uses the implicit rate for agreements in which it is a lessor. The Company has not entered into any material agreements in which it is a lessor. Lease expense and lease income are recognized on a straight-line basis over the lease term for operating leases.

The Company’s lease agreements primarily consist of commercial solar land leases, storage and capacity leases, equipment and real property, including land and office facilities, office equipment and the sale leaseback of certain natural gas meters.

Certain leases contain escalation provisions for inflation metrics. The storage leases contain a variable payment component that relates to the change in the inflation metrics that are not known past the current payment period. The variable components of these lease payments are excluded from the lease payments that are used to determine the related right-of-use lease asset and liability. The variable portion of these leases are recognized as leasing expenses when they are incurred. The capacity lease payments are fully variable and based on the amount of natural gas stored in the storage caverns.

Generally, the Company’s solar land lease terms are between 20 and 50 years and may include multiple options to extend the terms for an additional five to 20 years. The Company’s office leases vary in duration, ranging from two to 11 years, and may or may not include extension or early purchase options. The Company’s meter lease terms are between six and 10 years with purchase options available prior to the end of the term. Equipment leases, including general office equipment, also vary in duration, with an average term of nine years. The Company’s storage and capacity leases have assumed terms of 50 years to coincide with the expected useful lives of the cavern assets with which the leases are associated. The Company’s lease terms may include options to extend, purchase the leased asset or terminate a lease, and they are included in the lease liability calculation when it is reasonably certain that those options will be exercised. The Company has elected an accounting policy that exempts leases with an original term of one year or less from the recognition requirements of ASC 842, Leases.

The Company has lease agreements with lease and non-lease components and has elected the practical expedient to combine lease and non-lease components for certain classes of leases, such as office buildings, solar land leases and office equipment. Variable payments are not considered material to the Company. The Company’s lease agreements do not contain any material residual value guarantees, material restrictions or material covenants. In July 2021, NJNG entered into 16-year lease agreements, as Lessor, with various NJR subsidiaries, as Lessees, for office space at the Company’s headquarters in Wall, New Jersey, the effects of which are eliminated in consolidation.

The following table presents the Company’s lease costs included in the Consolidated Statements of Operations for the fiscal year ended September 30:

(Thousands)	Income Statement Location	2024		2023		2022
Operating lease cost (1)	Operation and maintenance	$	10,368	$	9,336	$	9,702
Finance lease cost
Amortization of right-of-use assets	Depreciation and amortization	2,160		2,105		$	1,769
Interest on lease liabilities	Interest expense, net of capitalized interest	914		1,084		612
Total finance lease cost		$	3,074	$	3,189	2,381
Short-term lease cost	Operation and maintenance	—		—		34
Variable lease cost	Operation and maintenance	1,099		1,128		781
Total lease cost		$	14,541	$	13,653	$	12,898

(1)Net of capitalized costs.

The following table presents supplemental cash flow information related to leases for the fiscal year ended September 30:

(Thousands)	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	7,932	$	8,942	$	7,417
Operating cash flows for finance leases	$	914	$	1,084	$	831
Financing cash flows for finance leases	$	7,792	$	7,379	$	7,145

Assets obtained or modified through operating lease liabilities totaled approximately $14.1M and $13.2M during fiscal 2024 and 2023, respectively. Assets obtained or modified through other leases, including those which are finance leases and financing transactions for accounting purposes, totaled $8.4M during fiscal 2023. There were no assets obtained or modified through finance leases during fiscal 2024.

The following table presents the balance and classifications of the Company’s right of use assets and lease liabilities included in the Consolidated Balance Sheets for the fiscal year ended September 30:

(Thousands)	Balance Sheet Location	2024		2023
Assets
Noncurrent
Operating lease assets	Operating lease assets	$	184,485	$	175,740
Finance lease assets	Utility plant	26,088		28,248
Total lease assets		$	210,573	$	203,988
Liabilities
Current
Operating lease liabilities	Operating lease liabilities	$	4,945	$	4,772
Finance lease liabilities	Current maturities of long-term debt	7,534		8,477
Noncurrent
Operating lease liabilities	Operating lease liabilities	159,303		148,023
Finance lease liabilities	Long-term debt	16,026		22,875
Total lease liabilities		$	187,808	$	184,147

For operating lease assets and liabilities, the weighted average remaining lease term was 28.6 years and 29.2 years and the weighted average discount rate used in the valuation over the remaining lease term was 3.8% and 3.5% as of September 30, 2024 and 2023, respectively.

For finance lease assets and liabilities, the weighted average remaining lease term was 3.0 years and 3.3 years and the weighted average discount rate used in the valuation over the remaining lease term was 3.4% and 2.7% as of September 30, 2024 and 2023, respectively.

The following table presents the Company’s maturities of lease liabilities as of September 30, 2024:

(Thousands)	Operating		Finance
2025	$	8,408	$	8,169
2026	8,852		6,411
2027	8,834		4,083
2028	8,925		4,715
2029	8,994		1,676
Thereafter	233,942		—
Total future payments	277,955		25,054
Less: interest	(113,707)		(1,494)
Total liability	$	164,248	$	23,560

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COMMITMENTS AND CONTINGENT LIABILITIES

12 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENT LIABILITIES

14. COMMITMENTS AND CONTINGENT LIABILITIES

Cash Commitments

NJNG has entered into long-term contracts, expiring at various dates through July 2039, for the supply, transportation and storage of natural gas. These contracts include annual fixed charges of approximately $252.8M at current contract rates and volumes, which are recoverable through BGSS.

For the purpose of securing storage and pipeline capacity, ES enters into storage and pipeline capacity contracts, which require the payment of certain demand charges by ES to maintain the ability to access such natural gas storage or pipeline capacity, during a fixed time period, which generally ranges from one to 10 years. Demand charges are established by interstate storage and pipeline operators and are regulated by FERC. These demand charges represent commitments to pay storage providers or pipeline companies for the right to store and/or transport natural gas utilizing their respective assets.

Commitments as of September 30, 2024, for natural gas purchases and future demand fees for the next five fiscal year periods, are as follows:

(Thousands)	2025		2026		2027		2028		2029		Thereafter
ES:
Natural gas purchases	$	42,427	$	1,155	$	—	$	—	$	—	$	—
Storage demand fees	16,453		11,857		5,452		3,500		2,712		4,068
Pipeline demand fees	47,950		40,197		29,543		21,493		11,005		47,686
Sub-total ES	$	106,830	$	53,209	$	34,995	$	24,993	$	13,717	$	51,754
NJNG:
Natural gas purchases	$	23,392	$	—	$	—	$	—	$	—	$	—
Storage demand fees	38,214		22,678		11,207		4,900		—		—
Pipeline demand fees	214,625		161,954		141,818		126,080		124,498		955,035
Sub-total NJNG	$	276,231	$	184,632	$	153,025	$	130,980	$	124,498	$	955,035
Total	$	383,061	$	237,841	$	188,020	$	155,973	$	138,215	$	1,006,789

Certain pipeline demand fees totaling approximately $4.0M per year, for which ES is the responsible party, are being paid for by the counterparty to a capacity release transaction beginning November 1, 2021 for a period of 10 years.

As of September 30, 2024, the Company’s future minimum lease payments under various operating leases will not be more than $9.0M annually for the next five years and $233.9M in the aggregate for all years thereafter.

Guarantees

As of September 30, 2024, there were NJR guarantees covering approximately $174.3M of ES’s natural gas purchases and demand fee commitments not yet reflected in accounts payable on the Consolidated Balance Sheets.

Legal Proceedings

Manufactured Gas Plant Remediation

NJNG is responsible for the remedial cleanup of certain former MGP sites, dating back to gas operations in the late 1800s and early 1900s, which contain contaminated residues from former gas manufacturing operations. NJNG is currently involved in administrative proceedings with the NJDEP, and is participating in various studies and investigations by outside consultants, to determine the nature and extent of any such contaminated residues and to develop appropriate programs of remedial action, where warranted, under NJDEP regulations.

NJNG periodically, and at least annually, performs an environmental review of former MGP sites located in Atlantic Highlands, Berkeley, Long Branch, Manchester, Toms River, Freehold and Aberdeen, New Jersey, including a review of potential liability for investigation and remedial action. NJNG estimated at the time of the most recent review that total future expenditures at the former MGP sites for which it is responsible, including potential liabilities for natural resource damages that might be brought by the NJDEP for alleged injury to groundwater or other natural resources concerning these sites, will range from approximately $130.9M to $194.6M. NJNG’s estimate of these liabilities is based upon known facts, existing technology and enacted laws and regulations in place when the review was completed. Where it is probable that costs will be incurred, and the information is sufficient to establish a range of possible liability, NJNG accrues the most likely amount in the range. If no point within the range is more likely than the other, it is NJNG’s policy to accrue the lower end of the range. Accordingly, as of September 30, 2024, NJNG recorded a MGP remediation liability and a corresponding regulatory asset of approximately $161.7M on the Consolidated Balance Sheets based on the most likely amount. The actual costs to be incurred by NJNG are dependent upon several factors, including final determination of remedial action, changing technologies and governmental regulations, the ultimate ability of other responsible parties to pay and insurance recoveries, if any.

NJNG recovers its remediation expenditures, including carrying costs, over rolling seven-year periods pursuant to a RAC approved by the BPU. As of September 30, 2024, $77.5M of previously incurred remediation costs, net of recoveries from customers and insurance proceeds, are included in regulatory assets on the Consolidated Balance Sheets. NJNG will continue to seek recovery of MGP-related costs through the RAC. If any future regulatory position indicates that the recovery of such costs is not probable, the related non-recoverable costs would be charged to income in the period of such determination.

General

The Company is involved, and from time to time in the future may be involved, in a number of pending and threatened judicial, regulatory and arbitration proceedings relating to matters that arise in the ordinary course of business. In view of the inherent difficulty of predicting the outcome of litigation matters, particularly when such matters are in their early stages or where the claimants seek indeterminate damages, the Company cannot state with confidence what the eventual outcome of the pending litigation will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss, fines or penalties related to each pending matter will be, if any. In accordance with applicable accounting guidance, the Company establishes accruals for litigation for those matters that present loss contingencies as to which it is both probable that a loss will be incurred and the amount of such loss can be reasonably estimated. The Company also discloses contingent matters for which there is a reasonable possibility of a loss. Based upon currently available information, the Company believes that the results of litigation that are currently pending, taken together, will not have a materially adverse effect on the Company’s financial condition, results of operations or cash flows. The actual results of resolving the pending litigation matters may be substantially different than the amounts accrued.

The foregoing statements about the Company’s litigation are based upon the Company’s judgments, assumptions and estimates and are necessarily subjective and uncertain. The Company has a number of threatened and pending litigation matters at various stages.

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REPORTING SEGMENT AND OTHER OPERATIONS DATA

12 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

REPORTING SEGMENT AND OTHER OPERATIONS DATA

15. REPORTING SEGMENT AND OTHER OPERATIONS DATA

The Company organizes its businesses based on a combination of factors, including its products and its regulatory environment. As a result, the Company manages its businesses through the following reporting segments and other business operations: NJNG consists of regulated energy and off-system, capacity and storage management operations; CEV consists of capital investments in clean energy projects; ES consists of unregulated wholesale and retail energy operations; S&T consists of the Company’s investments in natural gas transportation and storage facilities; the HSO business operations consist of heating, cooling and water appliance sales, installations and services, other investments and general corporate activities.

Information related to the Company’s various reporting segments and other business operations, as of September 30, is detailed below:

	Segments
(Thousands)	NJNG		CEV	ES		S&T	Subtotal		HSO	Elims	Total
2024
Operating revenues
External customers	$	1,018,482	130,563	490,266	(1)	94,851	$	1,734,162	62,377	—	$	1,796,539
Intercompany	$	1,350	—	(4,875)		1,358	$	(2,167)	258	1,909	$	—
Depreciation and amortization	$	112,492	27,869	205	(2)	24,900	$	165,466	1,101	—	$	166,567
Interest income (3)	$	2,448	—	452		10,172	$	13,072	1,423	(5,826)	$	8,669
Interest expense, net of capitalized interest	$	62,288	28,545	15,233		23,441	$	129,507	768	—	$	130,275
Income tax provision	$	31,793	11,406	33,331		4,551	$	81,081	2,666	1,159	$	84,906
Equity in earnings of affiliates	$	—	—	—		2,816	$	2,816	—	2,483	$	5,299
Net financial earnings	$	133,400	33,662	111,515		12,229	$	290,806	26	(4)	$	290,828
Capital expenditures	$	419,453	104,287	—		45,338	$	569,078	2,241	—	$	571,319
2023
Operating revenues
External customers	$	1,011,284	124,131	681,446	(1)	88,700	$	1,905,561	57,433	—	$	1,962,994
Intercompany	$	1,349	—	10,170		4,159	$	15,678	205	(15,883)	$	—
Depreciation and amortization	$	102,326	25,320	221	(2)	24,185	$	152,052	889	—	$	152,941
Interest income (3)	$	1,713	—	1,119		6,957	$	9,789	2,977	(3,847)	$	8,919
Interest expense, net of capitalized interest	$	56,595	28,569	11,400		25,803	$	122,367	647	—	$	123,014
Income tax provision (benefit)	$	33,065	(7,683)	24,343		3,444	$	53,169	(1,477)	(2,417)	$	49,275
Equity in earnings of affiliates	$	—	—	—		3,126	$	3,126	—	804	$	3,930
Net financial earnings	$	131,414	44,458	68,517		12,835	$	257,224	4,758	(155)	$	261,827
Capital expenditures	$	390,394	107,303	—		40,916	$	538,613	2,306	—	$	540,919
2022
Operating revenues
External customers	$	1,127,417	128,280	1,529,178	(1)	65,286	$	2,850,161	55,818	—	$	2,905,979
Intercompany	$	1,350	—	94		2,449	$	3,893	364	(4,257)	$	—
Depreciation and amortization	$	94,579	21,396	148	(2)	12,302	$	128,425	824	—	$	129,249
Interest income (3)	$	895	—	16		2,110	$	3,021	944	(1,249)	$	2,716
Interest expense, net of capitalized interest	$	46,394	21,968	4,725		12,097	$	85,184	646	—	$	85,830
Income tax provision	$	40,141	11,361	21,776		1,879	$	75,157	1,059	(21)	$	76,195
Equity in loss of affiliates	$	—	—	—		9,865	$	9,865	—	(1,688)	$	8,177
Net financial earnings	$	140,124	39,403	39,121		22,454	$	241,102	(781)	—	$	240,321
Capital expenditures	$	298,374	146,676	—		151,988	$	597,038	1,390	—	$	598,428
Return of capital from equity investees	$	—	—	—		(5,479)	$	(5,479)	—	—	$	(5,479)

(1)Includes sales to Canada for ES, which were $8.4M and $2.4M during the fiscal years ended September 30, 2023 and 2022, respectively. There were no sales to Canada for ES during the fiscal year ended September 30, 2024.

(2)The amortization of acquired wholesale energy contracts is excluded above and is included in natural gas purchases - nonutility on the Consolidated Statements of Operations.

(3)Included in other income, net on the Consolidated Statements of Operations.

The Company’s assets at end of period for the various reporting segments and other business operations, as of September 30, are detailed below:

	Segments								Intercompany
(Thousands)	NJNG		CEV	ES	S&T	Subtotal		HSO	Assets (1)	Total
2024	$	4,789,835	1,157,573	108,710	1,025,457	$	7,081,575	159,444	(259,374)	$	6,981,645
2023	$	4,414,829	1,128,577	123,775	1,011,959	$	6,679,140	171,275	(312,919)	$	6,537,496
2022	$	4,030,686	1,015,065	333,064	999,520	$	6,378,335	159,068	(275,987)	$	6,261,416

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

The CEO, who uses NFE as a measure of profit or loss in measuring the results of the Company’s reporting segments and other business operations, is the chief operating decision maker of the Company. A reconciliation of consolidated NFE to consolidated net income, as of September 30, is as follows:

(Thousands)	2024		2023		2022
Net financial earnings	$	290,828	$	261,827	$	240,321
Less:
Unrealized loss (gain) on derivative instruments and related transactions	19,574		(38,081)		(59,906)
Tax effect	(4,652)		9,050		14,248
Effects of economic hedging related to natural gas inventory	(18,192)		34,699		19,939
Tax effect	4,323		(8,246)		(4,738)
Gain on equity method investment	—		(300)		(5,521)
Tax effect	—		(19)		1,377
Net income	$	289,775	$	264,724	$	274,922

The Company uses derivative instruments as economic hedges of purchases and sales of physical natural gas inventory. For GAAP purposes, these derivatives are recorded at fair value and related changes in fair value are included in reported earnings. Revenues and cost of natural gas related to physical natural gas flow are recognized when the natural gas is delivered to customers. Consequently, there is a mismatch in the timing of earnings recognition between the economic hedges and physical natural gas flows. Timing differences occur in two ways:

•unrealized gains and losses on derivatives are recognized in reported earnings in periods prior to physical natural gas inventory flows; and

•unrealized gains and losses of prior periods are reclassified as realized gains and losses when derivatives are settled in the same period as physical natural gas inventory movements occur.

NFE is a measure of the earnings based on eliminating these timing differences, to effectively match the earnings effects of the economic hedges with the physical sale of natural gas, SRECs and foreign currency contracts. Consequently, to reconcile between net income and NFE, current-period unrealized gains and losses on the derivatives are excluded from NFE as a reconciling item. Realized derivative gains and losses are also included in current-period net income. However, NFE includes only realized gains and losses related to natural gas sold out of inventory, effectively matching the full earnings effects of the derivatives with realized margins on physical natural gas flows. NFE also excludes certain transactions associated with equity method investments, including impairment charges, which are non-cash charges, and return of capital in excess of the carrying value of our investment. These are considered unusual in nature and occur infrequently such that they are not indicative of the Company’s performance for its ongoing operations. Included in the tax effects are current and deferred income tax expense corresponding with the components of NFE.

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RELATED PARTY TRANSACTIONS

12 Months Ended

Sep. 30, 2024

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

16. RELATED PARTY TRANSACTIONS

In April 2020, NJNG entered into a five-year agreement for 3 Bcf of firm storage capacity with Steckman Ridge, which expires on March 31, 2025. Under the terms of the agreement, NJNG incurs demand fees, at market rates, of approximately $9.3M annually, a portion of which is eliminated in consolidation. These fees are recoverable through NJNG’s BGSS mechanism and are included as a component of regulatory assets.

ES may periodically enter into storage or park and loan agreements with its affiliated FERC-jurisdictional natural gas storage facility, Steckman Ridge. As of September 30, 2024, ES entered into transactions with Steckman Ridge for varying terms, all of which expire by March 31, 2027.

Demand fees, net of eliminations, associated with Steckman Ridge during the fiscal years ended September 30, were as follows:

(Thousands)	2024		2023		2022
NJNG	$	6,319	$	6,549	$	6,663
ES	828		657		732
Total	$	7,147	$	7,206	$	7,395

The following table summarizes demand fees payable to Steckman Ridge as of September 30:

(Thousands)	2024		2023
NJNG	$	775	$	775
ES	100		84
Total	$	875	$	859

NJNG and ES enter into various AMAs, the effects of which are eliminated in consolidation. Under the terms of these AMAs, NJNG releases certain transportation and storage contracts to ES. NJNG and ES had one AMA, which expired on March 31, 2024, and was not renewed.

NJNG entered into two transportation agreements with Adelphia, each for committed capacity of 130,000 Dths per day. The first is for five years in Zone South with an expiration date of August 8, 2027, and the second is for 15 years in Zone North, with an expiration date of October 31, 2038.

ES had a five-year agreement for 3 Bcf of firm storage capacity with Leaf River, the effects of which were eliminated in consolidation. The agreement expired on March 31, 2024, and was not renewed.

NJNG and CEV entered into a 15-year sublease and PPA related to an onsite solar array and the related energy output at the Company’s headquarters in Wall, New Jersey, with an expiration date of March 1, 2036, the effects of which are immaterial to the consolidated financial statements.

NJNG entered into 16-year lease agreements, as Lessor, with various NJR subsidiaries, as Lessees, for office space at the Company’s headquarters in Wall, New Jersey, with an expiration date of July 1, 2037, the effects of which are eliminated in consolidation.

NJNG and CEV entered into a 20-year sublease and PPA related to an onsite solar array and the related energy output at the Company’s LNG plant in Howell, New Jersey, with an expiration date of June 1, 2042, the effects of which are immaterial to the consolidated financial statements.

The intercompany profits for certain transactions between NJNG and ES and NJNG and Adelphia are not eliminated in accordance with ASC 980, Regulated Operations.

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SUBSEQUENT EVENTS

12 Months Ended

Sep. 30, 2024

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

17. SUBSEQUENT EVENT

On November 25, 2024, CEV completed the sale of its residential solar portfolio and related assets and liabilities included in The Sunlight Advantage® program to a third party for a total purchase price of $132.5M. The transaction is expected to generate a pre-tax gain of approximately $45M to $60M, which will be recognized in the Consolidated Statements of Operations in the first quarter of fiscal 2025.

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VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Sep. 30, 2024

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

VALUATION AND QUALIFYING ACCOUNTS

VALUATION AND QUALIFYING ACCOUNTS

YEARS ENDED SEPTEMBER 30, 2024, 2023 and 2022

(Thousands)			ADDITIONS/ (DEDUCTIONS), NET TO EXPENSE
CLASSIFICATION	BEGINNING BALANCE				OTHER		ENDING BALANCE
2024
Valuation allowance for deferred tax assets	$	5,747	(126)		—		$	5,621
Allowance for doubtful accounts	$	11,036	1,229		(3,759)	(2)	$	8,506
2023
Valuation allowance for deferred tax assets	$	22,241	(16,494)	(1)	—		$	5,747
Allowance for doubtful accounts	$	19,379	1,570		(9,913)	(2)	$	11,036
2022
Valuation allowance for deferred tax assets	$	23,613	(1,372)		—		$	22,241
Allowance for doubtful accounts	$	24,652	2,401		(7,674)	(2)	$	19,379

(1)Includes valuation allowance release. See Note 12. Income Taxes for more details.

(2)Uncollectible accounts written off, less recoveries and adjustments.

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Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net income (loss)	$ 289,775	$ 264,724	$ 274,922

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Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

XML

Insider Trading Policies and Procedures	12 Months Ended
	Sep. 30, 2024
Insider Trading Policies and Procedures [Line Items]
Insider Trading Policies and Procedures Adopted	true

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation

The Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated.

Other financial investments or contractual interests that lack the characteristics of a voting interest entity, which are commonly referred to as variable interest entities, are evaluated by the Company to determine if the entity has the power to direct business activities and, therefore, would be considered a controlling interest that the Company would have to consolidate. Based on those evaluations, NJR has determined that it does not have any investments in variable interest entities as of September 30, 2024, 2023 and 2022.

Investments in entities over which the Company does not have a controlling financial interest are accounted for under the equity method.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires the Company to make estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingencies during the reporting period. On a quarterly basis, or more frequently whenever events or changes in circumstances indicate a need, the Company evaluates its estimates, including those related to the calculation of equity method investments, lease liabilities, unbilled revenues, allowance for doubtful accounts, provisions for depreciation and amortization, long-lived assets, regulatory assets and liabilities, income taxes, pensions and other postemployment benefits, contingencies related to environmental matters and litigation and the fair value of derivative instruments and debt. AROs are evaluated periodically as required. The Company’s estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources.

The Company has legal, regulatory and environmental proceedings during the normal course of business that can result in loss contingencies. When evaluating the potential for a loss, the Company will establish a reserve if a loss is probable and can be reasonably estimated, in which case it is the Company’s policy to accrue the full amount of such estimates. Where the information is sufficient only to establish a range of probable liability, and no point within the range is more likely than any other, it is the Company’s policy to accrue the lower end of the range. In the normal course of business, estimated amounts are subsequently adjusted to actual results that may differ from estimates.

Revenues

Revenues

Revenues from the sale of natural gas to NJNG customers are recognized in the period that natural gas is delivered and consumed by customers, including an estimate for unbilled revenue. Natural gas sales to individual customers are based on meter readings, which are performed on a systematic basis throughout the month. At the end of each month, the amount of natural gas delivered to each customer after the last meter reading through the end of the respective accounting period is estimated, and recognizes unbilled revenues related to these amounts. The unbilled revenue estimates are based on estimated customer usage by customer type, weather effects, unaccounted-for natural gas and the most current tariff rates.

CEV recognizes revenue when SRECs are transferred to counterparties. SRECs are physically delivered through the transfer of certificates as per contractual settlement schedules. The SREC program officially closed to new qualified solar projects in April 2020.

In December 2019, the BPU established the TREC as the successor to the SREC program. TRECs provide a fixed compensation base multiplied by an assigned project factor in order to determine their value. The project factor is determined by the type and location of the project, as defined.

In July 2021, the BPU established a new successor solar incentive program, or SREC IIs. The ADI Program provides administratively set incentives for net metered projects of 5 MW or less. RECs generated through the production of electricity under this program are known as SREC IIs.

TRECs and SREC IIs generated are required to be purchased monthly by a REC program administrator as appointed by the BPU. Revenue for TRECs and SREC IIs are recognized upon generation and are transferred monthly based upon metered solar electricity activity.

Revenues for ES are recognized when the natural gas is physically delivered to the customer. In addition, changes in the fair value of derivatives that economically hedge the forecasted sales of the natural gas are recognized in operating revenues as they occur. ES also recognizes changes in the fair value of SREC derivative contracts as a component of operating revenues.

During December 2020, ES entered into a series of AMAs with an investment grade public utility to release pipeline capacity associated with certain natural gas transportation contracts, which commenced in November 2021. The AMAs include a series of temporary and permanent releases, and revenue under these agreements is recognized as the performance obligations are satisfied. For temporary releases of pipeline capacity, revenue is recognized on a straight-line basis over the agreed-upon term. For permanent releases of pipeline capacity, which represent a transfer of contractual rights for such capacity, revenue is recognized upon the transfer of the underlying contractual rights. ES recognized $137.2M and $48.5M of operating revenue related to the AMAs on the Consolidated Statements of Operations during fiscal 2024 and 2023, respectively. Amounts received in excess of revenue recognized totaling $22.3M and $58.7M are included in deferred revenue on the Consolidated Balance Sheets as of September 30, 2024 and 2023, respectively.

S&T generates revenues from firm storage contracts and transportation contracts, related usage fees and hub services for the use of storage space, injections and withdrawals from their natural gas storage facility and the delivery of natural gas to customers. Demand fees are recognized as revenue over the term of the related agreement while usage fees and hub services revenues are recognized as services are performed.

Revenues from all other activities are recorded in the period during which products or services are delivered and accepted by customers, or over the related contractual term. See Note 3. Revenue for further information.

Natural Gas Purchases

Natural Gas Purchases

NJNG’s tariff includes a component for BGSS, which is designed to allow it to recover the cost of natural gas through rates charged to its customers and is typically revised on an annual basis. As part of computing its BGSS rate, NJNG projects its cost of natural gas, net of supplier refunds, the impact of hedging activities and cost savings created by BGSS incentive programs. NJNG subsequently recovers or credits the difference, if any, of actual costs compared with those included in current rates. Any underrecoveries or overrecoveries are either credited to customers or deferred and, subject to BPU approval, reflected in the BGSS rates in subsequent years.

Natural gas purchases at ES are composed of natural gas costs to be paid upon completion of a variety of transactions, as well as realized gains and losses from settled derivative instruments and unrealized gains and losses on the change in fair value of derivative instruments that have not yet settled. Changes in the fair value of derivatives that economically hedge the forecasted purchases of natural gas are recognized in natural gas purchases as they occur.

Demand Fees

Demand Fees

For the purpose of securing storage and pipeline capacity in support of their respective businesses, ES and NJNG enter into storage and pipeline capacity contracts, which require the payment of associated demand fees and charges that allow them access to a high priority of service in order to maintain the ability to access storage or pipeline capacity during a fixed time period, which generally ranges from one to 10 years. Many of these demand fees and charges are based on tariff rates as established and regulated by FERC. These charges represent commitments to pay storage providers and pipeline companies for the priority right to transport and/or store natural gas utilizing their respective assets.

ES expenses demand charges over the term of the service being provided.

NJNG’s costs associated with demand charges are included in its weighted average cost of natural gas. The demand charges are expensed based on NJNG’s BGSS sales and recovered as part of the natural gas commodity component of its BGSS tariff.

Operations and Maintenance Expenses

Operations and Maintenance Expenses

O&M includes salaries and benefits, materials and supplies, usage of vehicles, tools and equipment, payments to contractors, utility plant maintenance, amortization of software costs for unregulated entities, customer service, professional fees and other outside services, insurance expense, accretion of cost of removal for future retirements of utility assets and other administrative expenses, and are expensed as incurred.

Stock-Based Compensation

Stock-Based Compensation

Stock-based compensation represents costs related to stock-based awards granted to employees and members of NJR’s Board of Directors. NJR recognizes stock-based compensation based upon the estimated fair value of awards. The recognition period for these costs begins at either the applicable service inception date or grant date and continues throughout the requisite service period. The related compensation cost is recognized as O&M on the Consolidated Statements of Operations. See Note 10. Stock-Based Compensation for further information.

Income Taxes

Income Taxes

The Company computes income taxes using the asset and liability method, whereby deferred income taxes are generally determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. See Note 12. Income Taxes. In addition, the Company evaluates its tax positions to determine the appropriate accounting and recognition of future obligations associated with unrecognized tax benefits.

NJR evaluates its tax positions to determine the appropriate accounting and recognition of potential future obligations associated with unrecognized tax benefits. A tax benefit claimed, or expected to be claimed, on a tax return may be recognized if it is more likely than not that the position will be upheld upon examination by the applicable taxing authority. Interest and penalties related to unrecognized tax benefits, if any, are recognized within income tax expense and accrued interest, and penalties are recognized within other noncurrent liabilities on the Consolidated Balance Sheets.

To the extent that NJNG invests in property that qualifies for ITCs, the ITC is deferred and amortized to income over the life of the equipment in accordance with regulatory treatment. ITCs at the unregulated subsidiaries of NJR are recorded on the balance sheet as a reduction to property, plant and equipment when the property is placed in service, and recognized in earnings as a reduction of depreciation expense over the useful lives of the related assets.

Investments in Equity Investees

Investments in Equity Investees

The Company accounts for its investment in Steckman Ridge using the equity method of accounting where it is not the primary beneficiary, as defined under ASC 810, Consolidation; its respective ownership interests are 50% or less and/or it has significant influence over operating and management decisions. The Company’s share of earnings is recognized as equity in earnings of affiliates on the Consolidated Statements of Operations.

Equity method investments are reviewed for impairment when changes in facts and circumstances indicate that the current fair value may be less than the asset’s carrying amount. If the Company determines the decline in the value of its equity method investment is other than temporary, an impairment charge is recorded in an amount equal to the excess of the carrying value of the asset over its fair value. See Note 7. Investments in Equity Investees for more information regarding impairments.

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment is stated at original cost. Costs include direct labor, materials and third-party construction contractor costs, capitalized interest and certain indirect costs related to equipment and employees engaged in construction. Utility plant and nonutility plant for Adelphia also includes AFUDC. Upon retirement, the cost of depreciable property, plus removal costs less salvage, is charged to accumulated depreciation with no gain or loss recorded.

Depreciation is computed on a straight-line basis over the useful life of the assets for the Company’s nonutility entities, and using rates based on the estimated average lives of the various classes of depreciable property for NJNG.

Capitalized and Deferred Interest

Capitalized and Deferred Interest

NJNG’s base rates include the ability to recover AFUDC on its construction work in progress. For all NJNG construction projects, an incremental cost of equity is recoverable during periods when NJNG’s short-term debt balances are lower than its construction work in progress. For more information on AFUDC treatment with respect to certain accelerated infrastructure projects, see Note 4. Regulation - Infrastructure Programs. Capitalized amounts associated with the debt and equity components of NJNG’s AFUDC are recorded in utility plant on the Consolidated Balance Sheets. Corresponding amounts for the debt component are recognized in interest expense and in other income for the equity component on the Consolidated Statements of Operations.

Adelphia’s base rates include the ability to recover AFUDC on its construction work in progress. Capitalized amounts associated with Adelphia’s AFUDC are recorded in nonutility plant on the Consolidated Balance Sheets. Corresponding amounts for the debt component are recognized in interest expense and in other income for the equity component on the Consolidated Statements of Operations.

CEV capitalizes interest on the allocation of the costs of debt borrowed for the financing of solar investments. Capitalized amounts are included in nonutility plant and equipment on the Consolidated Balance Sheets. Corresponding amounts are recognized in interest expense on the Consolidated Statements of Operations.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents consist of cash on deposit and temporary investments with maturities of three months or less, and excludes restricted cash related to escrow balances for utility plant projects at NJNG, which are recorded in other noncurrent assets on the Consolidated Balance Sheets.

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts

The Company segregates financial assets, primarily trade receivables and unbilled revenues due in one year or less, into portfolio segments based on shared risk characteristics, such as geographical location and regulatory environment, for evaluation of expected credit losses. Historical and current information, such as average write-offs, are applied to each portfolio segment to estimate the allowance for losses on uncollectible receivables. Additionally, the allowance for losses on uncollectible receivables is adjusted for reasonable and supportable forecasts of future economic conditions, which can include changing weather, commodity prices, regulations and macroeconomic factors, such as unemployment rates, among others.

Loans Receivable

Loans Receivable

NJNG currently provides loans, with terms ranging from three to 10 years, to customers that elect to purchase and install certain energy-efficient equipment in accordance with its BPU-approved SAVEGREEN program. The loans are recognized at fair value on the Consolidated Balance Sheets.

Regulatory Assets & Liabilities

Regulatory Assets & Liabilities

Under cost-based regulation, regulated utility enterprises generally are permitted to recover their operating expenses and earn a reasonable rate of return on their utility investment.

NJNG is subject to accounting requirements resulting from the effects of rate regulation by the BPU. Accordingly, NJNG capitalizes or defers certain costs that are expected to be recovered from its customers as regulatory assets and recognizes certain obligations representing probable future expenditures as regulatory liabilities on the Consolidated Balance Sheets. See Note 4. Regulation for a more detailed description of NJNG’s regulatory assets and liabilities.

Adelphia capitalizes or defers certain costs that are expected to be recovered from its customers as regulatory assets and recognizes certain obligations representing probable future expenditures as regulatory liabilities on the Consolidated Balance Sheets. See Note 4. Regulation for a more detailed description of Adelphia’s regulatory assets and liabilities.

Natural Gas in Storage

Natural Gas in Storage

Natural gas in storage is reflected at average cost on the Consolidated Balance Sheets and represents natural gas and LNG that will be utilized in the ordinary course of business.

Derivative Instruments

Derivative Instruments

The Company accounts for its financial instruments, such as futures, options and interest rate contracts, as well as its physical commodity contracts related to the purchase and sale of natural gas at ES, as derivatives, and therefore recognizes them at fair value on the Consolidated Balance Sheets. The Company’s unregulated subsidiaries record changes in the fair value of their financial commodity derivatives in natural gas purchases and changes in the fair value of their physical forward contracts in natural gas purchases or operating revenues, as appropriate, on the Consolidated Statements of Operations. Ineffective portions of the cash flow hedges are recognized immediately in earnings. Cash flows from derivative financial instruments are included in cash flows from operating activities on the Consolidated Statements of Cash Flows.

ASC 815, Derivatives and Hedging, also provides for a NPNS scope exception for qualifying physical commodity contracts for which physical delivery is probable and the quantities delivered are expected to be used or sold over a reasonable period of time in the normal course of business. The Company prospectively applies this normal scope exception on a case-by-case basis to physical commodity contracts at NJNG and PPAs at CEV. When applied, it does not account for these contracts until the contract settles and the related underlying natural gas or power is delivered. Gains and/or losses on NJNG’s derivatives used to economically hedge its regulated natural gas supply obligations, as well as its exposure to interest rate variability, are recoverable through its BGSS, a component of its tariff. Accordingly, the offset to the change in fair value of these derivatives is recorded as a regulatory asset or liability on the Consolidated Balance Sheets. See Note 5. Derivative Instruments for additional details regarding natural gas trading and hedging activities.

Fair values of exchange-traded instruments, including futures and swaps, are based on unadjusted, quoted prices in active markets. The Company’s non-exchange-traded financial instruments, over-the-counter physical commodity contracts at ES and interest rate contracts are valued using observable, quoted prices for similar or identical assets when available. In establishing the fair value of contracts for which a quoted basis price is not available at the measurement date, management utilizes available market data and pricing models to estimate fair values. Fair values are subject to change in the near term and reflect management’s best estimate based on a variety of factors. Estimating fair values of instruments that do not have quoted market prices requires management’s judgment in determining amounts that could reasonably be expected to be received from, or paid to, a third party in settlement of the instruments. These amounts could be materially different from amounts that might be realized in an actual sale transaction.

During fiscal 2020, the Company entered into treasury lock transactions to fix the benchmark treasury rate associated with debt issuances for NJNG and NJR that occurred during the fiscal year. Settlement of the NJNG treasury locks resulted in a loss, which was recorded as a component of regulatory assets on the Consolidated Balance Sheets and will be amortized in earnings over the term of the debt as a component of interest expense on the Consolidated Statements of Operations. NJR designated its treasury lock contracts as cash flow hedges; therefore, changes in fair value of the effective portion of the hedges were recorded in OCI. Settlement of the treasury locks resulted in a loss, which was recorded within OCI and is amortized into earnings over the term of the associated debt as a component of interest expense on the Consolidated Statements of Operations.

The Company is subject primarily to commodity price risk due to fluctuations in the market price of natural gas, SRECs and electricity. To manage this risk, the Company enters into a variety of derivative instruments including, but not limited to, futures contracts, physical forward contracts, financial options and swaps to economically hedge the commodity price risk associated with its existing and anticipated commitments to purchase and sell natural gas, SRECs and electricity. In addition, the Company is exposed to foreign currency and interest rate risk and may utilize foreign currency derivatives to hedge Canadian dollar-denominated natural gas purchases and/or sales and interest rate derivatives to reduce exposure to fluctuations in interest rates. All of these types of contracts are accounted for as derivatives, unless the Company elects NPNS, which is done on a contract-by-contract election. Accordingly, all of the financial and certain of the Company’s physical derivative instruments are recorded at fair value on the Consolidated Balance Sheets. For a more detailed discussion of the Company’s fair value measurement policies and level disclosures associated with the Company’s derivative instruments, see Note 6. Fair Value.

Energy Services

ES chooses not to designate its financial commodity and physical forward commodity derivatives as accounting hedges or to elect NPNS. The changes in the fair value of these derivatives are recorded as a component of natural gas purchases or operating revenues, as appropriate for ES, on the Consolidated Statements of Operations as unrealized gains or losses. For ES at settlement, realized gains and losses on all financial derivative instruments are recognized as a component of natural gas purchases, and realized gains and losses on all physical derivatives follow the presentation of the related unrealized gains and losses as a component of either natural gas purchases or operating revenues.

As a result of ES entering into transactions to borrow natural gas, commonly referred to as “park and loans,” an embedded derivative is recognized relating to differences between the fair value of the amount borrowed and the fair value of the amount that will ultimately be repaid, based on changes in the forward price for natural gas prices at the borrowed location over the contract term. This embedded derivative is accounted for as a forward sale in the month in which the repayment of the borrowed natural gas is expected to occur and is considered a derivative transaction that is recorded at fair value on the Consolidated Balance Sheets, with changes in value recognized in current-period earnings.

Expected production of SRECs is hedged through the use of forward and futures contracts. All contracts require the Company to physically deliver SRECs through the transfer of certificates as per contractual settlement schedules. ES recognizes changes in the fair value of these derivatives as a component of operating revenues. Upon settlement of the contract, the related revenue is recognized when the SREC is transferred to the counterparty.

Natural Gas Distribution

Changes in fair value of NJNG’s financial commodity derivatives are recorded as a component of regulatory assets or liabilities on the Consolidated Balance Sheets. The Company elects NPNS accounting treatment on all physical commodity contracts that NJNG entered into on or before December 31, 2015, and accounts for these contracts on an accrual basis. Accordingly, physical natural gas purchases are recognized in regulatory assets or liabilities on the Consolidated Balance Sheets when the contract settles and the natural gas is delivered. The average cost of natural gas is charged to expense in the current period earnings based on the BGSS factor times the therm sales. NJNG no longer elects NPNS accounting treatment on a portfolio basis. However, since NPNS is a contract-by-contract election, where it makes sense to do so, NJNG can and may elect to treat certain contracts as normal. Because NJNG recovers these amounts through future BGSS rates as increases or decreases to the cost of natural gas in NJNG’s tariff for natural gas service, the changes in fair value of these contracts are deferred as a component of regulatory assets or liabilities on the Consolidated Balance Sheets.

Clean Energy Ventures

The Company elects NPNS accounting treatment on PPA contracts executed by CEV that meet the definition of a derivative and accounts for the contract on an accrual basis. Accordingly, electricity sales are recognized in revenues throughout the term of the PPA as electricity is delivered. NPNS is a contract-by-contract election and where it makes sense to do so, the Company can and may elect to treat certain contracts as normal.

Offsetting of Derivatives

The Company transacts under master netting arrangements or equivalent agreements that allow it to offset derivative assets and liabilities with the same counterparty. However, the Company’s policy is to present its derivative assets and liabilities on a gross basis at the contract level unit of account on the Consolidated Balance Sheets.

Software Costs

Software Costs

The Company capitalizes certain costs, such as software design and configuration, coding, testing and installation, that are incurred to purchase or create and implement computer software for internal use. Capitalized costs include external costs of materials and services utilized in developing or obtaining internal-use software and payroll and payroll-related costs for employees who are directly associated with and devote time to the internal-use software project. Maintenance costs are expensed as incurred. Upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. Amortization is recorded on the straight-line basis over the estimated useful lives.

Long-lived Assets

Long-lived Assets

The Company reviews the recoverability of long-lived assets and finite-lived intangible assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable, such as significant adverse changes in regulation, business climate or market conditions, including prolonged periods of adverse commodity and capacity prices. If there are changes indicating that the carrying value of such assets may not be recoverable, an undiscounted cash flows test is performed. If the sum of the expected future undiscounted cash flows is less than the carrying amount of the asset, an impairment loss is recognized by reducing the recorded value of the asset to its fair value.

Factors that the Company analyzes in determining whether an impairment in its long-lived assets exists include: a significant decrease in the market price of a long-lived asset; a significant adverse change in the extent in which a long-lived asset is being used in its physical condition; legal proceedings or other contributing factors; significant business climate changes; accumulations of costs in significant excess of the amounts expected; a current-period operating or cash flow loss combined with a history of such events; and current expectations that more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its estimated useful life. During fiscal 2024 and 2023, there were no events or circumstances that indicated that the carrying value of long-lived assets or finite-lived intangibles was not recoverable.

Debt Issuance Costs

Debt Issuance Costs

Debt issuance costs are capitalized and amortized as interest expense on a basis which approximates the effective interest method over the term of the related debt. Debt issuance costs are presented as a direct deduction from the carrying amount of the related debt. See Note 9. Debt for the total unamortized debt issuance costs that are recorded as a reduction to long-term debt on the Consolidated Balance Sheets.

Sale Leasebacks

Sale Leasebacks

NJNG utilizes sale leaseback arrangements as a financing mechanism to fund certain of its capital expenditures related to natural gas meters, whereby the physical asset is sold concurrent with an agreement to lease the asset back. These agreements include options to renew the lease or repurchase the asset at the end of the term. As NJNG retains control of the natural gas meters, these arrangements do not qualify as a sale. Proceeds from sale leaseback transactions are accounted for as financing arrangements and are included in long-term debt on the Consolidated Balance Sheets.

In addition, for certain of its commercial solar energy projects, the Company enters into lease agreements that provide for the sale of commercial solar energy assets to third parties and the concurrent leaseback of the assets. For sale leaseback transactions where the Company has concluded that the arrangement does not qualify as a sale as the Company retains control of the underlying assets, the Company uses the financing method to account for the transaction. Under the financing method, the Company recognizes the proceeds received from the buyer-lessor that constitute a payment to acquire the solar energy asset as a financing arrangement, which is recorded as a component of debt on the Consolidated Balance Sheets.

The Company continues to operate its solar assets and is responsible for related expenses and entitled to retain the revenue generated from RECs and energy sales. ITCs and other tax attributes associated with these solar projects transfer to the buyer; however, the payments are structured so that CEV is compensated for the transfer of the related tax attributes. Accordingly, CEV recognizes the equivalent value of the tax attributes in other income on the Consolidated Statements of Operations over the respective five-year ITC recapture periods, starting with the second year of the lease.

See Note 9. Debt for more details regarding sale leaseback transactions recorded as financing arrangements.

Environmental Contingencies

Environmental Contingencies 

Loss contingencies are recorded as liabilities when it is probable a liability has been incurred and the amount of the loss is reasonably estimable in accordance with accounting standards for contingencies. Estimating probable losses requires an analysis of uncertainties that often depend upon judgments about potential actions by third parties. Accruals for loss contingencies are recorded based on an analysis of potential results.

With respect to environmental liabilities and related costs, NJNG periodically, and at least annually, performs an environmental review of MGP sites, including a review of potential liability for investigation and remedial action. NJNG’s estimate of these liabilities is based upon known facts, existing technology and enacted laws and regulations in place when the review was completed. Where it is probable that costs will be incurred, and the information is sufficient to establish a range of possible liability, NJNG accrues the most likely amount in the range. If no point within the range is more likely than the other, it is NJNG’s policy to accrue the lower end of the range. The actual costs to be incurred by NJNG are dependent upon several factors, including final determination of remedial action, changing technologies and governmental regulations, the ultimate ability of other responsible parties to pay and any insurance recoveries. NJNG will continue to seek recovery of MGP-related costs through the RAC. If any future regulatory position indicates that the recovery of such costs is not probable, the related non-recoverable costs would be charged to income in the period of such determination. See Note 14. Commitments and Contingent Liabilities for more details.

Pension and Postemployment Plans

Pension and Postemployment Plans

The Company has two noncontributory defined pension plans covering eligible employees, including officers. Benefits are based on each employee’s years of service and compensation. The Company’s funding policy is to contribute annually to these plans at least the minimum amount required under the Employee Retirement Income Security Act, as amended, and not more than can be deducted for federal income tax purposes. Plan assets consist of equity securities, fixed-income securities and short-term investments.

The Company also provides two primarily noncontributory medical and life insurance plans for eligible retirees and dependents. Medical benefits, which make up the largest component of the plans, are based upon an age and years-of-service vesting schedule and other plan provisions. Funding of these benefits is made primarily into Voluntary Employee Beneficiary Association trust funds.

Asset Retirement Obligations

Asset Retirement Obligations

The Company recognizes AROs related to the costs associated with cutting and capping NJNG’s main and service natural gas distribution mains, which is required by New Jersey law when taking such natural gas distribution mains out of service. The Company also recognizes AROs associated with CEV’s solar assets when there are decommissioning provisions in lease agreements that require removal of the asset at the end of the lease term.

AROs are initially recognized when the legal obligation to retire an asset has been incurred and a reasonable estimate of fair value can be made. The discounted fair value is recognized as an ARO liability with a corresponding amount capitalized as part of the carrying cost of the underlying asset. The obligation is subsequently accreted to the future value of the expected retirement cost, and the corresponding asset retirement cost is depreciated over the life of the related asset. Accretion expense associated with CEV’s AROs are recognized as a component of operations and maintenance expense on the Consolidated Statements of Operations. Accretion amounts associated with NJNG’s AROs are recognized as part of its depreciation expense, and the corresponding regulatory asset and liability will be shown gross on the Consolidated Balance Sheets.

Estimating future removal costs requires management to make significant judgments because most of the removal obligations span long time frames and removal may be conditioned upon future events. Asset removal technologies are also constantly changing, which makes it difficult to estimate removal costs. Accordingly, inherent in the estimate of AROs are various assumptions including the ultimate settlement date, expected cash outflows, inflation rates, credit-adjusted risk-free rates and consideration of potential outcomes where settlement of the AROs can be conditioned upon events. In the latter case, the Company develops possible retirement scenarios and assigns probabilities based on management’s reasonable judgment and knowledge of industry practice. Accordingly, AROs are subject to change.

Reclassification

Reclassification

Certain prior period amounts have been reclassified to conform to the current period presentation. Intangible assets, net previously classified in its own category on the Consolidated Balance Sheets has been reclassified into other noncurrent assets. Other noncurrent assets and other noncurrent liabilities previously classified in their own categories on the Consolidated Statements of Cash Flow have been combined into one category.

Recently Adopted Updates to the Accounting Standards Codification

Recently Adopted Updates to the Accounting Standards Codification

Business Combinations

In October 2021, the FASB issued ASU No. 2021-08, an amendment to ASC 805, Business Combinations, which requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, Revenue from Contracts with Customers. The guidance was effective for the Company beginning October 1, 2023, and was applied on a prospective basis to new acquisitions following the date of adoption. As the Company has not executed a transaction that would qualify as a business combination, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption.

Derivatives and Hedging

In March 2022, the FASB issued ASU No. 2022-01, an amendment to ASC 815, Derivatives and Hedging, which addresses fair value hedge accounting of interest rate risk for portfolios of financial assets. This update further clarifies guidance previously released in ASU No. 2017-12, which established the ”last-of-layer” method, and this update renames that method as the “portfolio layer” method. The guidance was effective for the Company beginning October 1, 2023. As the Company does not currently apply hedge accounting to any of its risk management activities, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption.

Financial Instruments

In March 2022, the FASB issued ASU No. 2022-02, an amendment to ASC 326, Financial Instruments-Credit Losses, which eliminates the accounting guidance for creditors in troubled debt restructuring. It also aligns conflicting disclosure requirement guidance in ASC 326 by requiring disclosure of current-period gross write-offs by year of origination. The amendment also adds new disclosures for creditors with loan refinancing and restructuring for borrowers experiencing financial difficulty. The guidance was effective for the Company beginning October 1, 2023. Since the Company has not experienced a troubled debt restructuring, there was no impact on its financial position, results of operations, cash flows and disclosures upon adoption.

Other Recent Updates to the Accounting Standards Codification

Fair Value Measurement

In June 2022, the FASB issued ASU No. 2022-03, an amendment to ASC 820, Fair Value Measurement. The amendment clarifies the fair value principles when measuring the fair value of an equity security subject to a contractual sale restriction. The guidance became effective for the Company on October 1, 2024, and the Company elected to apply it on a prospective basis. At this time, the Company does not have equity securities subject to contractual sale restrictions, and therefore this amendment would only impact the Company if, in the future, it entered into such transactions.

Leases

In March 2023, the FASB issued ASU No. 2023-01, an amendment to ASC 842, Leases, which applies to arrangements between related parties under common control. This update requires that all entities with common control arrangements classify and account for these leases on the same basis as an arrangement with an unrelated party. If the lessee in these types of arrangements continues to control the use of the underlying asset through a lease, the leasehold improvements are to be amortized over the improvements’ useful life to the common control group, regardless of the lease term. The guidance became effective for the Company on October 1, 2024, and the Company elected to apply it on a prospective basis. At this time, the Company does not have leases that are impacted by this amendment, and therefore it would only impact the Company if, in the future, it entered into applicable transactions.

Business Combinations

In August 2023, the FASB issued ASU No. 2023-05, an amendment to ASC 805, Business Combinations, which addresses how a joint venture should recognize contributions received upon its formation. Joint ventures must account for initial assets and liabilities received at fair value on the date the joint venture is formed. The guidance is effective for the Company for joint ventures formed beginning January 1, 2025, and the Company can elect to apply it either prospectively or retrospectively back to a joint venture’s formation date provided adequate information is available. Early adoption is permitted. This amendment would only impact the Company upon adoption if, in the future, it entered into an applicable transaction.

Segment Reporting

In November 2023, the FASB issued ASU No. 2023-07, an amendment to ASC 280, Segment Reporting, which improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The update requires entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker and included within segment profit and loss, and it enhances interim disclosure requirements to conform with annual requirements. This update became effective for the Company on October 1, 2024, for the first annual period and will become effective on October 1, 2025, for the interim periods. It will be applied retrospectively to all periods presented and the Company is currently evaluating the amendment to understand the impacts on its future disclosures.

Income Taxes

In December 2023, the FASB issued ASU No. 2023-09, an amendment to ASC 740, Income Taxes, which requires disaggregated information about a reporting entity’s effective tax rate reconciliation and income taxes paid. It will provide investors more detailed income tax disclosures that would be useful in making capital allocation decisions. The guidance is effective for the Company on October 1, 2025, and can be applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently evaluating the amendment to understand the impacts on its financial position, results of operations, cash flows and disclosures upon adoption.

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU No. 2024-03, an amendment to ASC 220, Income Statement Reporting, which requires more detailed information about specified categories of expenses included in certain captions presented on the face of the income statement. This update becomes effective for the Company on October 1, 2027, for the first annual period and on October 1, 2028, for the interim periods. The Company can elect to apply it either prospectively or retrospectively to all periods presented, with early adoption permitted. The Company is currently evaluating the amendment to understand the impacts on its disclosures upon adoption.

Fair Value Hierarchy

Fair Value Hierarchy

The Company applies fair value measurement guidance to its financial assets and liabilities, as appropriate, which include financial derivatives and physical commodity contracts qualifying as derivatives, investments in equity securities and other financial assets and liabilities. In addition, authoritative accounting literature prescribes the use of a fair value hierarchy that prioritizes the inputs-to-valuation techniques used to measure fair value based on the source of the data used to develop the price inputs. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to inputs that are based on unobservable market data and includes the following:

Fair Value Hierarchy	Description of Fair Value Level	Fair Value Technique
Level 1	Unadjusted quoted prices for identical assets or liabilities in active markets	The Company’s Level 1 assets and liabilities include exchange-traded natural gas futures and options contracts, listed equities and money market funds. Exchange-traded futures and options contracts include all energy contracts traded on the NYMEX, CME and ICE that the Company refers to internally as basis swaps, fixed swaps, futures and financial options that are cleared through an FCM.
Level 2	Other significant observable inputs, such as interest rates or price data, including both commodity and basis pricing that is observed either directly or indirectly from publications or pricing services	The Company’s Level 2 assets and liabilities include over-the-counter physical forward commodity contracts and swap contracts, SREC forward sales or derivatives that are initially valued using observable quotes and are subsequently adjusted to include time value, credit risk or estimated transport pricing components for which no basis price is available. Level 2 financial derivatives consist of transactions with non-FCM counterparties (basis swaps, fixed swaps and/or options). Inputs are verifiable and do not require significant management judgment. For some physical commodity contracts, the Company utilizes transportation tariff rates that are publicly available and that it considers to be observable inputs that are equivalent to market data received from an independent source. There are no significant judgments or adjustments applied to the transportation tariff inputs and no market perspective is required. Even if the transportation tariff input were considered to be a “model,” it would still be considered to be a Level 2 input as the data is: •widely accepted and public; •non-proprietary and sourced from an independent third party; and •observable and published. These additional adjustments are generally not considered to be significant to the ultimate recognized values.
Level 3	Inputs derived from a significant amount of unobservable market data	These include the Company’s best estimate of fair value and are derived primarily through the use of internal valuation methodologies.

Financial derivative portfolios of NJNG and ES consist mainly of futures, options and swaps. The Company primarily uses the market approach, and its policy is to use actively quoted market prices when available. The principal market for its derivative transactions is the natural gas wholesale market; therefore, the primary sources for its price inputs are CME, NYMEX and ICE. ES uses Platts and Natural Gas Exchange for Canadian delivery points. However, ES also engages in transactions that result in transporting natural gas to delivery points for which there is no actively quoted market price. In most instances, the transportation cost to the final delivery location is not significant to the overall valuation. If required, ES’s policy is to use the best information available to determine fair value based on internal pricing models, which would include estimates extrapolated from broker quotes or other pricing services.

The Company also has other financial assets that include listed equities, mutual funds and money market funds for which there are active exchange quotes available. When the Company determines fair values, measurements are adjusted, as needed, for credit risk associated with its counterparties, as well as its own credit risk. The Company determines these adjustments by using historical default probabilities that correspond to the applicable S&P issuer ratings, while also taking into consideration collateral and netting arrangements that serve to mitigate risk.

Lessee Accounting

Lessee Accounting

The Company determines if an arrangement is a lease at inception based on whether the Company has the right to control the use of an identified asset, the right to obtain substantially all of the economic benefits from the use of the asset and the right to direct the use of the asset. After the criteria are satisfied, the Company accounts for these arrangements as leases in accordance with ASC 842, Leases. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term, including payments at commencement that depend on an index or rate. Most leases in which the Company is the lessee do not have a readily determinable implicit rate, so an incremental borrowing rate, based on the information available at the lease commencement date, is utilized to determine the present value of lease payments. When a secured borrowing rate is not readily available, unsecured borrowing rates are adjusted for the effects of collateral to determine the incremental borrowing rate. The Company uses the implicit rate for agreements in which it is a lessor. The Company has not entered into any material agreements in which it is a lessor. Lease expense and lease income are recognized on a straight-line basis over the lease term for operating leases.

The Company’s lease agreements primarily consist of commercial solar land leases, storage and capacity leases, equipment and real property, including land and office facilities, office equipment and the sale leaseback of certain natural gas meters.

Certain leases contain escalation provisions for inflation metrics. The storage leases contain a variable payment component that relates to the change in the inflation metrics that are not known past the current payment period. The variable components of these lease payments are excluded from the lease payments that are used to determine the related right-of-use lease asset and liability. The variable portion of these leases are recognized as leasing expenses when they are incurred. The capacity lease payments are fully variable and based on the amount of natural gas stored in the storage caverns.

Generally, the Company’s solar land lease terms are between 20 and 50 years and may include multiple options to extend the terms for an additional five to 20 years. The Company’s office leases vary in duration, ranging from two to 11 years, and may or may not include extension or early purchase options. The Company’s meter lease terms are between six and 10 years with purchase options available prior to the end of the term. Equipment leases, including general office equipment, also vary in duration, with an average term of nine years. The Company’s storage and capacity leases have assumed terms of 50 years to coincide with the expected useful lives of the cavern assets with which the leases are associated. The Company’s lease terms may include options to extend, purchase the leased asset or terminate a lease, and they are included in the lease liability calculation when it is reasonably certain that those options will be exercised. The Company has elected an accounting policy that exempts leases with an original term of one year or less from the recognition requirements of ASC 842, Leases.

The Company has lease agreements with lease and non-lease components and has elected the practical expedient to combine lease and non-lease components for certain classes of leases, such as office buildings, solar land leases and office equipment. Variable payments are not considered material to the Company. The Company’s lease agreements do not contain any material residual value guarantees, material restrictions or material covenants. In July 2021, NJNG entered into 16-year lease agreements, as Lessor, with various NJR subsidiaries, as Lessees, for office space at the Company’s headquarters in Wall, New Jersey, the effects of which are eliminated in consolidation.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Schedule of Demand Charges

The following table summarizes the demand charges, which are net of capacity releases, and are included as a component of natural gas purchases on the Consolidated Statements of Operations for the fiscal years ended September 30:

(Millions)	2024		2023		2022
ES	$	72.6	$	74.6	$	95.4
NJNG	200.4		183.4		170.3
Total	$	273.0	$	258.0	$	265.7

Schedule of Property, Plant and Equipment

Property, plant and equipment was comprised of the following as of September 30:

(Thousands)	Estimated
Property Classifications	Useful Lives	2024		2023
Distribution facilities	11 to 54 years	$	3,436,308	$	3,063,111
Transmission facilities	28 to 42 years	656,098		650,817
Storage facilities	27 to 86 years	86,329		85,603
Solar property	15 to 35 years	885,518		864,838
Storage and transportation property	5 to 50 years	929,850		884,647
All other property	5 to 40 years	62,248		61,327
Construction work in progress		440,164		380,196
Total property, plant and equipment		6,496,515		5,990,539
Accumulated depreciation and amortization		(1,093,292)		(968,484)
Property, plant and equipment, net		$	5,403,223	$	5,022,055

Schedule of Capitalized Amounts Associated with Debt and Equity Component of AFUDC

Capitalized and deferred interest include the following for the fiscal years ended September 30:

($ in thousands)	2024						2023						2022
AFUDC:	NJNG			Adelphia			NJNG			Adelphia			NJNG			Adelphia
Debt	$	4,729		$	64		$	3,546		$	90		$	1,648		$	4,019
Equity	6,761			113			6,979			158			4,169			7,074
Total	$	11,490		$	177		$	10,525		$	248		$	5,817		$	11,093
Weighted average interest rate	6.48		%	8.28		%	6.41		%	8.28		%	4.91		%	8.28		%

Schedule of Restricted Cash

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported in the Consolidated Balance Sheets to the total amounts in the Consolidated Statements of Cash Flows, as of September 30:

(Thousands)	2024		2023		2022
Balance Sheet
Cash and cash equivalents	$	1,017	$	954	$	1,107
Restricted cash in other noncurrent assets	$	595	$	563	$	345
Statements of Cash Flow
Cash, cash equivalents and restricted cash	$	1,612	$	1,517	$	1,452

Schedule of Gas in Storage

The following table summarizes natural gas in storage, at average cost by company, as of September 30:

	2024				2023
($ in thousands)	Natural Gas in Storage			Bcf	Natural Gas in Storage			Bcf
NJNG		$	177,655	30.8		$	175,025	29.1
ES		21,378		13.1		24,476		14.6
S&T		92		—		—		—
Total		$	199,125	43.9		$	199,501	43.7

Schedule of Software Costs Included in the Consolidated Financial Statements

The following table presents the software costs included in the Consolidated Financial Statements, as of September 30:

(Thousands)	2024		2023
Balance Sheets
Utility plant, at cost	$	133,158	$	51,282
Construction work in progress	$	26,659	$	55,012
Nonutility plant and equipment, at cost	$	344	$	344
Accumulated depreciation and amortization, utility plant	$	(13,632)	$	(7,480)
Accumulated depreciation and amortization, nonutility plant and equipment	$	(48)	$	(36)
Software costs	$	10,522	$	8,375
Statements of Operations
Operation and maintenance	$	13,087	$	14,299
Depreciation and amortization	$	6,164	$	4,130

Schedule of Analysis of Change in ARO Liability

The following is an analysis of the change in the Company’s ARO for the fiscal years ended September 30:

(Thousands)	Balance at October 1		Accretion	Additions	Change in assumptions	Retirements	Balance at period end
2024
NJNG	$	55,285	3,039	152	2,925	(1,727)	$	59,674
NJRCEV	$	6,708	236	79	—	—	$	7,023
2023
NJNG	$	49,874	2,693	155	4,089	(1,526)	$	55,285
NJRCEV	$	5,161	213	1,334	—	—	$	6,708

Schedule of Future Accretion

Accretion for the next five years, for the fiscal years ended September 30, is estimated to be as follows:

(Thousands)	2025		2026	2027	2028	2029	Total
Estimated Accretion	$	3,403	3,573	3,751	3,948	4,165	$	18,840

Schedule of Accumulated Other Comprehensive Income

The following table presents the changes in the components of accumulated other comprehensive income, net of related tax effects:

(Thousands)	Cash Flow Hedges		Postemployment Benefit Obligation			Total
Balance as of September 30, 2022	$	(8,322)	$	3,496		$	(4,826)
Other comprehensive income, net of tax
Other comprehensive income, before reclassifications, net of tax of $0, $1,922 and $1,922, respectively	—		(6,350)			(6,350)
Amounts reclassified from accumulated other comprehensive income, net of tax of $(317), $(49) and $(366), respectively	1,053		164		(1)	1,217
Net current-period other comprehensive income, net of tax of $(317), $1,873 and $1,556, respectively	1,053		(6,186)			(5,133)
Balance as of September 30, 2023	$	(7,269)	$	(2,690)		$	(9,959)
Other comprehensive income, net of tax
Other comprehensive income, before reclassifications, net of tax of $0, $(1,002) and $(1,002), respectively	—		3,360			3,360
Amounts reclassified from accumulated other comprehensive income, net of tax of $(317), $296 and $(21), respectively	1,054		(976)		(1)	78
Net current-period other comprehensive income, net of tax of $(317), $(706) and $(1,023), respectively	1,054		2,384			3,438
Balance as of September 30, 2024	$	(6,215)	$	(306)		$	(6,521)

(1)Included in the computation of net periodic pension cost, a component of operations and maintenance expense on the Consolidated Statements of Operations. For more details, see Note 11. Employee Benefit Plans.

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REVENUE (Tables)

12 Months Ended

Sep. 30, 2024

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 Obligation	Description
NJNG	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 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.
CEV	Commercial solar electricity	CEV 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.
CEV	Residential solar electricity	CEV 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.
CEV	Renewable energy certificates	Certain CEV projects generate TRECs and SREC IIs under the established ADI Program. A TREC or SREC II is created for every MWh of electricity produced by a solar generator. The performance obligation of CEV is to generate electricity. TRECs and SREC IIs under the ADI Program are purchased monthly by a REC Administrator. Revenue is recognized upon generation.

Revenue Recognized Over Time (continued):
Segment/ Operations	Performance Obligation	Description
ES	Natural gas services	The performance obligation of ES is to provide the customer transportation, storage and asset management services on an as-needed basis. ES 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. ES 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.
S&T	Natural gas services	The performance obligation of S&T is to provide the customer with storage and transportation services. S&T 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.
HSO	Service contracts	Home Services enters into service contracts with homeowners to provide maintenance and replacement 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:
ES	Natural gas services	For a permanent release of pipeline capacity, the performance obligation of ES 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.
S&T	Natural gas services	The performance obligation of S&T is to provide the customer with storage and transportation services. S&T 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.
HSO	Installations	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 fiscal 2024, 2023 and 2022 are as follows:

(Thousands)	NJNG		CEV		ES	S&T	HSO	Total
2024
Natural gas utility sales (1)	$	861,882	—		—	—	—	$	861,882
Natural gas services	—		—		164,165	96,209	—	260,374
Service contracts	—		—		—	—	36,231	36,231
Installations and maintenance	—		—		—	—	26,404	26,404
Renewable energy certificates	—		15,111		—	—	—	15,111
Electricity sales	—		32,913		—	—	—	32,913
Eliminations (2)	(1,350)		—		—	(1,358)	(258)	(2,966)
Revenues from contracts with customers	860,532		48,024		164,165	94,851	62,377	1,229,949
Alternative revenue programs (3)	1,087		—		—	—	—	1,087
Derivative instruments	156,863		82,539	(4)	321,226	—	—	560,628
Eliminations (2)	—		—		4,875	—	—	4,875
Revenues out of scope	157,950		82,539		326,101	—	—	566,590
Total operating revenues	$	1,018,482	130,563		490,266	94,851	62,377	$	1,796,539
2023
Natural gas utility sales (1)	$	845,392	—		—	—	—	$	845,392
Natural gas services	—		—		76,975	92,859	—	169,834
Service contracts	—		—		—	—	35,210	35,210
Installations and maintenance	—		—		—	—	22,428	22,428
Renewable energy certificates	—		12,636		—	—	—	12,636
Electricity sales	—		31,733		—	—	—	31,733
Eliminations (2)	(1,349)		—		—	(4,159)	(205)	(5,713)
Revenues from contracts with customers	844,043		44,369		76,975	88,700	57,433	1,111,520
Alternative revenue programs (3)	27,257		—		—	—	—	27,257
Derivative instruments	139,984		79,762	(4)	614,641	—	—	834,387
Eliminations (2)	—		—		(10,170)	—	—	(10,170)
Revenues out of scope	167,241		79,762		604,471	—	—	851,474
Total operating revenues	$	1,011,284	124,131		681,446	88,700	57,433	$	1,962,994
2022
Natural gas utility sales	$	951,626	—		—	—	—	951,626
Natural gas services	—		—		83,801	67,735	—	151,536
Service contracts	—		—		—	—	33,932	33,932
Installations and maintenance	—		—		—	—	22,250	22,250
Renewable energy certificates	—		5,487		—	—	—	5,487
Electricity sales	—		38,317		—	—	—	38,317
Eliminations (2)	(1,350)		—		—	(2,449)	(364)	(4,163)
Revenues from contracts with customers	950,276		43,804		83,801	65,286	55,818	1,198,985
Alternative revenue programs (3)	11,259		—		—	—	—	11,259
Derivative instruments	165,882		84,476	(4)	1,445,471	—	—	1,695,829
Eliminations (2)	—		—		(94)	—	—	(94)
Revenues out of scope	177,141		84,476		1,445,377	—	—	1,706,994
Total operating revenues	$	1,127,417	128,280		1,529,178	65,286	55,818	2,905,979

(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 fiscal years ended September 30, are as follows:

(Thousands)	NJNG		CEV	ES	S&T	HSO	Total
2024
Residential	$	641,606	13,960	—	—	62,219	$	717,785
Commercial and industrial	123,727		34,064	164,165	94,851	158	416,965
Firm transportation	86,600		—	—	—	—	86,600
Interruptible, off-tariff and other	8,599		—	—	—	—	8,599
Revenues out of scope	157,950		82,539	326,101	—	—	566,590
Total operating revenues	$	1,018,482	130,563	490,266	94,851	62,377	$	1,796,539
2023
Residential	$	621,663	13,668	—	—	57,091	$	692,422
Commercial and industrial	136,011		30,701	76,975	88,700	342	332,729
Firm transportation	77,722		—	—	—	—	77,722
Interruptible, off-tariff and other	8,647		—	—	—	—	8,647
Revenues out of scope	167,241		79,762	604,471	—	—	851,474
Total operating revenues	$	1,011,284	124,131	681,446	88,700	57,433	$	1,962,994
2022
Residential	$	586,678	12,579	—	—	55,629	$	654,886
Commercial and industrial	265,970		31,225	83,801	65,286	189	446,471
Firm transportation	92,531		—	—	—	—	92,531
Interruptible, off-tariff and other	5,097		—	—	—	—	5,097
Revenues out of scope	177,141		84,476	1,445,377	—	—	1,706,994
Total operating revenues	$	1,127,417	128,280	1,529,178	65,286	55,818	$	2,905,979

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 Consolidated Balance Sheets are as follows:

	Customer Accounts Receivable				Customers’Credit
(Thousands)	Billed		Unbilled		Balances and Deposits
Balance as of September 30, 2022	$	222,297	$	13,769	$	33,246
(Decrease) increase	(124,757)		5,331		11,664
Balance as of September 30, 2023	97,540		19,100		44,910
Increase (decrease)	7,991		994		(6,315)
Balance as of September 30, 2024	$	105,531	$	20,094	$	38,595

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 Consolidated Balance Sheets as of September 30:

(Thousands)	NJNG		CEV	ES	S&T	HSO	Total
2024
Customer accounts receivable
Billed	$	51,613	8,441	34,002	8,598	2,877	$	105,531
Unbilled	11,839		8,255	—	—	—	20,094
Customers’ credit balances and deposits	(38,572)		—	—	(23)	—	(38,595)
Total	$	24,880	16,696	34,002	8,575	2,877	$	87,030
2023
Customer accounts receivable
Billed	$	55,234	9,962	23,716	6,577	2,051	$	97,540
Unbilled	10,784		8,316	—	—	—	19,100
Customers’ credit balances and deposits	(44,898)		—	—	(12)	—	(44,910)
Total	$	21,120	18,278	23,716	6,565	2,051	$	71,730

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REGULATION (Tables)

12 Months Ended

Sep. 30, 2024

Regulated Operations [Abstract]

Schedule of Regulatory Assets

Regulatory assets and liabilities included on the Consolidated Balance Sheets for NJNG are comprised of the following, as of September 30:

(Thousands)	2024		2023
Regulatory assets-current
New Jersey Clean Energy Program	$	18,491	$	15,804
Conservation Incentive Program	51,442		50,356
Derivatives at fair value, net	1,363		6,017
Other current regulatory assets	1,774		1,410
Total current regulatory assets	$	73,070	$	73,587
Regulatory assets-noncurrent
Environmental remediation costs:
Expended, net of recoveries	$	77,475	$	66,298
Liability for future expenditures	161,650		169,390
Deferred income taxes	42,595		41,667
SAVEGREEN	107,796		83,589
Postemployment and other benefit costs	23,772		55,274
Cost of removal	130,885		112,362
Other noncurrent regulatory assets	59,924		51,019
Total noncurrent regulatory assets	$	604,097	$	579,599
Regulatory liability-current
Overrecovered natural gas costs	$	32,457	$	30,637
Total current regulatory liabilities	$	32,457	$	30,637
Regulatory liabilities-noncurrent
Tax Act impact (1)	$	175,328	$	180,347
Derivatives at fair value, net	404		—
Other noncurrent regulatory liabilities	115		111
Total noncurrent regulatory liabilities	$	175,847	$	180,458

(1)Reflects the re-measurement and subsequent amortization of NJNG’s net deferred tax liabilities as a result of the change in federal tax rates enacted in the Tax Act. The Tax Act is an Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018, previously known as The Tax Cuts and Jobs Act of 2017.

Regulatory assets and liabilities included on the Consolidated Balance Sheets for Adelphia are comprised of the following, as of September 30:

(Thousands)	2024		2023
Total noncurrent regulatory assets	$	5,095	$	5,231
Total current regulatory liabilities	$	524	$	1,650

Schedule of Regulatory Liabilities

Regulatory assets and liabilities included on the Consolidated Balance Sheets for NJNG are comprised of the following, as of September 30:

(Thousands)	2024		2023
Regulatory assets-current
New Jersey Clean Energy Program	$	18,491	$	15,804
Conservation Incentive Program	51,442		50,356
Derivatives at fair value, net	1,363		6,017
Other current regulatory assets	1,774		1,410
Total current regulatory assets	$	73,070	$	73,587
Regulatory assets-noncurrent
Environmental remediation costs:
Expended, net of recoveries	$	77,475	$	66,298
Liability for future expenditures	161,650		169,390
Deferred income taxes	42,595		41,667
SAVEGREEN	107,796		83,589
Postemployment and other benefit costs	23,772		55,274
Cost of removal	130,885		112,362
Other noncurrent regulatory assets	59,924		51,019
Total noncurrent regulatory assets	$	604,097	$	579,599
Regulatory liability-current
Overrecovered natural gas costs	$	32,457	$	30,637
Total current regulatory liabilities	$	32,457	$	30,637
Regulatory liabilities-noncurrent
Tax Act impact (1)	$	175,328	$	180,347
Derivatives at fair value, net	404		—
Other noncurrent regulatory liabilities	115		111
Total noncurrent regulatory liabilities	$	175,847	$	180,458

(1)Reflects the re-measurement and subsequent amortization of NJNG’s net deferred tax liabilities as a result of the change in federal tax rates enacted in the Tax Act. The Tax Act is an Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018, previously known as The Tax Cuts and Jobs Act of 2017.

Regulatory assets and liabilities included on the Consolidated Balance Sheets for Adelphia are comprised of the following, as of September 30:

(Thousands)	2024		2023
Total noncurrent regulatory assets	$	5,095	$	5,231
Total current regulatory liabilities	$	524	$	1,650

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DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Assets and Liabilities

The following table presents the fair value of the Company’s derivative assets and liabilities recognized on the Consolidated Balance Sheets as of September 30:

		Derivatives at Fair Value
			2024					2023
(Thousands)	Balance Sheet Location		Assets		Liabilities			Assets		Liabilities
Derivatives not designated as hedging instruments:
NJNG:
Physical commodity contracts	Derivatives - current		$	21		$	579	$	43		$	488
Financial commodity contracts	Derivatives - current		—			2		6,110			20
ES:
Physical commodity contracts	Derivatives - current		1,660			4,346		6,209			12,757
	Derivatives - noncurrent		727			10,758		802			7,870
Financial commodity contracts	Derivatives - current		5,132			1,344		18,393			2,880
	Derivatives - noncurrent		79			732		762			97
Total fair value of derivatives			$	7,619		$	17,761	$	32,319		$	24,112

Offsetting Assets

The following table summarizes the reported gross amounts, the amounts that the Company has the right to offset but elects not to, financial collateral and the net amounts the Company could present on the Consolidated Balance Sheets but elects not to.

	Asset Derivatives						Liability Derivatives
(Thousands)	Fair Value (1)		Amounts Offset (2)	Collateral Received/Pledged (3)	Net Value (4)		Fair Value (1)		Amounts Offset (2)	Collateral Received/Pledged (3)	Net Value (4)
As of September 30, 2024
ES Contracts
Physical commodity	$	2,387	(535)	—	$	1,852	$	15,104	(535)	(5,551)	$	9,018
Financial commodity	5,211		(2,076)	(1,170)	1,965		2,076		(2,076)	—	—
Total ES	$	7,598	(2,611)	(1,170)	$	3,817	$	17,180	(2,611)	(5,551)	$	9,018
NJNG Contracts
Physical commodity	$	21	(13)	—	$	8	$	579	(13)	—	$	566
Financial commodity	—		—	—	—		2		—	(2)	—
Total NJNG	$	21	(13)	—	$	8	$	581	(13)	(2)	$	566
As of September 30, 2023
ES Contracts
Physical commodity	$	7,011	(1,236)	—	$	5,775	$	20,627	(1,236)	(9,728)	$	9,663
Financial commodity	19,155		(2,977)	(16,178)	—		2,977		(2,977)	—	—
Total ES	$	26,166	(4,213)	(16,178)	$	5,775	$	23,604	(4,213)	(9,728)	$	9,663
NJNG Contracts
Physical commodity	$	43	(3)	—	$	40	$	488	(3)	—	$	485
Financial commodity	6,110		(20)	—	6,090		20		(20)	—	—
Total NJNG	$	6,153	(23)	—	$	6,130	$	508	(23)	—	$	485

(1)Derivative assets and liabilities are presented on a gross basis on the Consolidated Balance Sheets, as the Company does not elect balance sheet offsetting under ASC 210-20.

(2)Includes transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting.

(3)Financial collateral includes cash balances at FCMs, as well as cash received from or pledged to other counterparties.

(4)Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20.

Offsetting Liabilities

The following table summarizes the reported gross amounts, the amounts that the Company has the right to offset but elects not to, financial collateral and the net amounts the Company could present on the Consolidated Balance Sheets but elects not to.

	Asset Derivatives						Liability Derivatives
(Thousands)	Fair Value (1)		Amounts Offset (2)	Collateral Received/Pledged (3)	Net Value (4)		Fair Value (1)		Amounts Offset (2)	Collateral Received/Pledged (3)	Net Value (4)
As of September 30, 2024
ES Contracts
Physical commodity	$	2,387	(535)	—	$	1,852	$	15,104	(535)	(5,551)	$	9,018
Financial commodity	5,211		(2,076)	(1,170)	1,965		2,076		(2,076)	—	—
Total ES	$	7,598	(2,611)	(1,170)	$	3,817	$	17,180	(2,611)	(5,551)	$	9,018
NJNG Contracts
Physical commodity	$	21	(13)	—	$	8	$	579	(13)	—	$	566
Financial commodity	—		—	—	—		2		—	(2)	—
Total NJNG	$	21	(13)	—	$	8	$	581	(13)	(2)	$	566
As of September 30, 2023
ES Contracts
Physical commodity	$	7,011	(1,236)	—	$	5,775	$	20,627	(1,236)	(9,728)	$	9,663
Financial commodity	19,155		(2,977)	(16,178)	—		2,977		(2,977)	—	—
Total ES	$	26,166	(4,213)	(16,178)	$	5,775	$	23,604	(4,213)	(9,728)	$	9,663
NJNG Contracts
Physical commodity	$	43	(3)	—	$	40	$	488	(3)	—	$	485
Financial commodity	6,110		(20)	—	6,090		20		(20)	—	—
Total NJNG	$	6,153	(23)	—	$	6,130	$	508	(23)	—	$	485

(1)Derivative assets and liabilities are presented on a gross basis on the Consolidated Balance Sheets, as the Company does not elect balance sheet offsetting under ASC 210-20.

(2)Includes transactions with NAESB netting election, transactions held by FCMs with net margining and transactions with ISDA netting.

(3)Financial collateral includes cash balances at FCMs, as well as cash received from or pledged to other counterparties.

(4)Net amounts represent presentation of derivative assets and liabilities if the Company were to elect balance sheet offsetting under ASC 210-20.

Effect of Derivative Instruments on Consolidated Statements of Operations

The following table presents the effect of derivative instruments recognized on the Consolidated Statements of Operations as of September 30:

(Thousands)	Location of gain (loss) recognized in income on derivatives	Amount of gain (loss) recognized in income on derivatives
Derivatives not designated as hedging instruments:		2024		2023		2022
ES:
Physical commodity contracts	Operating revenues	$	12,070	$	33,610	$	(8,569)
Physical commodity contracts	Natural gas purchases	(2,391)		(6,846)		3,580
Financial commodity contracts	Natural gas purchases	11,722		80,406		14,403
Foreign currency contracts	Natural gas purchases	—		—		(14)
Total unrealized and realized gain		$	21,401	$	107,170	$	9,400

Effect of Derivative Instruments Designated as Cash Flow Hedges on OCI

The following table reflects the gains and/or (losses) associated with NJNG’s derivative instruments as of September 30:

(Thousands)	2024		2023		2022
NJNG:
Physical commodity contracts	$	(5,215)	$	(34,241)	$	7,116
Financial commodity contracts	11,064		(50,130)		32,868
Total unrealized and realized gain (loss)	$	5,849	$	(84,371)	$	39,984

Schedule of Outstanding Long (Short) Derivatives

NJNG and ES had the following outstanding long (short) derivatives as of September 30:

	Natural Gas Distribution		Energy Services
Volumes (Bcf)	Futures	Physical Commodity	Futures	Physical Commodity
2024	31.9	10.9	(7.7)	2.8
2023	32.1	12.1	(6.9)	0.2

Schedule of Broker Margin Accounts by Company

The balances as of September 30, by reporting segment, are as follows:

(Thousands)	Balance Sheet Location	2024		2023
NJNG	Restricted broker margin accounts - current assets	$	4,975	$	5,915
ES	Restricted broker margin accounts - current assets	$	8,268	$	14,881
	Restricted broker margin accounts - current liabilities	$	1,146	$	8,029

Summary of Gross Credit Exposures

The following is a summary of gross credit exposures grouped by investment and noninvestment grade counterparties, as of September 30, 2024. The amounts presented below have not been reduced by any collateral received or netting and exclude accounts receivable for NJNG retail natural gas sales and services and CEV residential solar installations.

(Thousands)	Gross Credit Exposure
Investment grade		$	97,403
Noninvestment grade		7,343
Internally-rated investment grade		16,168
Internally-rated noninvestment grade		17,375
Total		$	138,289

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FAIR VALUE (Tables)

12 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping

As of September 30, the estimated fair value of long-term debt, including current maturities, excluding natural gas meter sale leasebacks, debt issuance costs and solar asset sale leasebacks, is as follows (1):

(Thousands)	2024		2023
NJNG
Carrying value (1)	$	1,647,845	$	1,467,845
Fair market value	$	1,439,849	$	1,097,088
NJR
Carrying value (1)	$	1,120,000	$	1,120,000
Fair market value	$	1,085,955	$	1,009,448

(1)See Note 9. Debt for a reconciliation to long-term and short-term debt.

Schedule of Fair Value Hierarchy

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to inputs that are based on unobservable market data and includes the following:

Fair Value Hierarchy	Description of Fair Value Level	Fair Value Technique
Level 1	Unadjusted quoted prices for identical assets or liabilities in active markets	The Company’s Level 1 assets and liabilities include exchange-traded natural gas futures and options contracts, listed equities and money market funds. Exchange-traded futures and options contracts include all energy contracts traded on the NYMEX, CME and ICE that the Company refers to internally as basis swaps, fixed swaps, futures and financial options that are cleared through an FCM.
Level 2	Other significant observable inputs, such as interest rates or price data, including both commodity and basis pricing that is observed either directly or indirectly from publications or pricing services	The Company’s Level 2 assets and liabilities include over-the-counter physical forward commodity contracts and swap contracts, SREC forward sales or derivatives that are initially valued using observable quotes and are subsequently adjusted to include time value, credit risk or estimated transport pricing components for which no basis price is available. Level 2 financial derivatives consist of transactions with non-FCM counterparties (basis swaps, fixed swaps and/or options). Inputs are verifiable and do not require significant management judgment. For some physical commodity contracts, the Company utilizes transportation tariff rates that are publicly available and that it considers to be observable inputs that are equivalent to market data received from an independent source. There are no significant judgments or adjustments applied to the transportation tariff inputs and no market perspective is required. Even if the transportation tariff input were considered to be a “model,” it would still be considered to be a Level 2 input as the data is: •widely accepted and public; •non-proprietary and sourced from an independent third party; and •observable and published. These additional adjustments are generally not considered to be significant to the ultimate recognized values.
Level 3	Inputs derived from a significant amount of unobservable market data	These include the Company’s best estimate of fair value and are derived primarily through the use of internal valuation methodologies.

Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized as follows:

	Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs
(Thousands)	(Level 1)			(Level 2)			(Level 3)			Total
As of September 30, 2024
Assets
Physical commodity contracts		$	—		$	2,408		$	—	$	2,408
Financial commodity contracts		5,211			—			—		5,211
Money market funds		62			—			—		62
Other		2,671			—			—		2,671
Total assets at fair value		$	7,944		$	2,408		$	—	$	10,352
Liabilities
Physical commodity contracts		$	—		$	15,683		$	—	$	15,683
Financial commodity contracts		2,078			—			—		2,078
Total liabilities at fair value		$	2,078		$	15,683		$	—	$	17,761
As of September 30, 2023
Assets
Physical commodity contracts		$	—		$	7,054		$	—	$	7,054
Financial commodity contracts		25,265			—			—		25,265
Money market funds		145			—			—		145
Other		2,641			—			—		2,641
Total assets at fair value		$	28,051		$	7,054		$	—	$	35,105
Liabilities
Physical commodity contracts		$	—		$	21,115		$	—	$	21,115
Financial commodity contracts		2,997			—			—		2,997
Total liabilities at fair value		$	2,997		$	21,115		$	—	$	24,112

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EARNINGS PER SHARE (Tables)

12 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Schedule of Earnings Per Share Basic and Diluted

The following table presents the calculation of the Company’s basic and diluted earnings per share for the fiscal years ended September 30:

(Thousands, except per share amounts)	2024		2023		2022
Net income, as reported	$	289,775	$	264,724	$	274,922
Basic earnings per share
Weighted average shares of common stock outstanding-basic	98,634		97,028		96,100
Basic earnings per common share	$2.94		$2.73		$2.86
Diluted earnings per share
Weighted average shares of common stock outstanding-basic	98,634		97,028		96,100
Incremental shares (1)	655		599		388
Weighted average shares of common stock outstanding-diluted	99,289		97,627		96,488
Diluted earnings per common share	$2.92		$2.71		$2.85

(1)Incremental shares consist primarily of unvested stock awards and performance units, which are calculated using the treasury stock method.

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DEBT (Tables)

12 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Schedule of Long-term Debt

The following table presents the long-term debt of the Company as of September 30:

(Thousands)			2024	2023
NJNG
First mortgage bonds:		Maturity date:
Series OO	3.00%	August 1, 2041	46,500	46,500
Series PP	3.15%	April 15, 2028	50,000	50,000
Series QQ	3.58%	March 13, 2024	—	70,000
Series RR	4.61%	March 13, 2044	55,000	55,000
Series SS	2.82%	April 15, 2025	50,000	50,000
Series TT	3.66%	April 15, 2045	100,000	100,000
Series UU	3.63%	June 21, 2046	125,000	125,000
Series VV	4.01%	May 11, 2048	125,000	125,000
Series WW	3.50%	April 1, 2042	10,300	10,300
Series XX	3.38%	April 1, 2038	10,500	10,500
Series YY	2.45%	April 1, 2059	15,000	15,000
Series ZZ	3.76%	July 17, 2049	100,000	100,000
Series AAA	3.86%	July 17, 2059	85,000	85,000
Series BBB	2.75%	August 1, 2039	9,545	9,545
Series CCC	3.00%	August 1, 2043	41,000	41,000
Series DDD	3.13%	June 30, 2050	50,000	50,000
Series EEE	3.13%	July 23, 2050	50,000	50,000
Series FFF	3.33%	July 23, 2060	25,000	25,000
Series GGG	2.87%	September 1, 2050	25,000	25,000
Series HHH	2.97%	September 1, 2060	50,000	50,000
Series III	2.97%	October 30, 2051	50,000	50,000
Series JJJ	3.07%	October 28, 2061	50,000	50,000
Series LLL	4.37%	May 27, 2037	50,000	50,000
Series MMM	4.71%	May 27, 2052	50,000	50,000
Series NNN	5.47%	October 24, 2052	125,000	125,000
Series OOO	5.56%	September 28, 2033	50,000	50,000
Series PPP	5.85%	October 30, 2053	50,000	—
Series QQQ	5.82%	June 26, 2054	125,000	—
Series RRR	5.49%	September 30, 2034	75,000	—
Meter financing obligation		Various dates	31,574	31,352
Less: Debt issuance costs			(10,899)	(9,770)
Less: Current maturities of long-term debt			(58,649)	(78,477)
Total NJNG long-term debt			1,609,871	1,410,950

NJR			2024		2023
First mortgage bonds:		Maturity date:
Unsecured senior notes	3.48%	November 7, 2024	100,000		100,000
Unsecured senior notes	3.54%	August 18, 2026	100,000		100,000
Unsecured senior notes	3.96%	June 8, 2028	100,000		100,000
Unsecured senior notes	3.29%	July 17, 2029	150,000		150,000
Unsecured senior notes	3.50%	July 23, 2030	130,000		130,000
Unsecured senior notes	3.60%	July 23, 2032	130,000		130,000
Unsecured senior notes	3.13%	September 1, 2031	120,000		120,000
Unsecured senior notes	3.25%	September 1, 2033	80,000		80,000
Unsecured senior notes	4.38%	June 23, 2027	110,000		110,000
Unsecured senior notes	3.64%	September 19, 2034	50,000		50,000
Unsecured senior notes	6.14%	December 15, 2032	50,000		50,000
Less: Debt issuance costs			(3,011)		(3,656)
Less: Current maturities of long-term debt			(100,000)		—
Total NJR long-term debt			1,016,989		1,116,344
CEV
Solar asset financing obligation		Various dates	282,962		278,401
Less: Current maturities of long-term debt			(30,358)		(37,678)
Total CEV long-term debt			252,604		240,723
Total long-term debt			$	2,879,464	$	2,768,017

Schedule of Long-term Debt Redemption Requirements

Annual long-term debt redemption requirements, excluding meter financing obligations, debt issuance costs and solar asset financing obligations, as of September 30, are as follows:

(Thousands)	2025		2026		2027		2028		2029		Thereafter
NJR	$	100,000	$	100,000	$	110,000	$	100,000	$	150,000	$	560,000
NJNG	$	50,000	$	—	$	—	$	50,000	$	—	$	1,547,845

Finance Lease Liability, Maturity

Contractual commitments for meter sale leaseback arrangements, which represent the most likely outcome of cash payments, as of the fiscal years ended September 30, are as follows:

(Thousands)	2025		2026	2027	2028	2029	Thereafter	Subtotal
Future payments	$	9,665	7,906	5,579	6,211	3,171	1,852	$	34,384
Less: Interest component								(2,810)
Total								$	31,574

The following table presents the Company’s maturities of lease liabilities as of September 30, 2024:

(Thousands)	Operating		Finance
2025	$	8,408	$	8,169
2026	8,852		6,411
2027	8,834		4,083
2028	8,925		4,715
2029	8,994		1,676
Thereafter	233,942		—
Total future payments	277,955		25,054
Less: interest	(113,707)		(1,494)
Total liability	$	164,248	$	23,560

Schedule of Contractual Commitments for Finance Lease Payments

Contractual commitments for the solar sale leaseback arrangements, which represent the most likely outcome of cash payments, as of the fiscal years ended September 30, are as follows:

(Thousands)	2025		2026	2027	2028	2029	Thereafter	Subtotal
Future payments	$	57,184	20,396	22,907	34,293	81,586	32,610	$	248,976
Less: Interest component								(43,234)
Total								$	205,742

Schedule of Line of Credit Facilities

The following table summarizes NJR’s credit facility and NJNG’s commercial paper program and credit facility as of September 30:

				At end of period
(Thousands)	As of date	Total borrowing capacity		Loans outstanding		Weighted average interest rate			Remaining borrowing capacity				Expiration dates
NJR bank revolving credit facility (1)
2024		$	575,000	$	236,700		6.23	%		$	325,951	(2)	August 2029
2023		$	650,000	$	217,300		6.53	%		$	426,967	(2)	September 2027
NJNG bank revolving credit facility (3)
2024		$	250,000	$	55,100		4.98	%		$	194,169	(4)	August 2029
2023		$	250,000	$	34,800		5.48	%		$	214,469	(4)	September 2027

(1)Committed credit facility, which requires commitment fees of 0.10% on the unused amount.

(2)Letters of credit outstanding total approximately $12.3M and $5.7M as of September 30, 2024 and 2023, respectively, which reduces the amount available by the same amount.

(3)Committed credit facility, which requires commitment fees of 0.075% on the unused amount.

(4)Letters of credit outstanding total approximately $0.7M at both September 30, 2024 and 2023, which reduces the amount available by the same amount.

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STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Summary of Stock-based Compensation Expense Recognized

The following table summarizes all stock-based compensation expense recognized during the following fiscal years:

(Thousands)	2024		2023		2022
Stock-based compensation expense:
Performance share awards	$	5,437	$	4,882	$	4,131
Restricted and non-restricted stock	3,958		3,647		3,189
Deferred retention stock	6,633		6,187		7,507
Compensation expense included in operation and maintenance expense	16,028		14,716		14,827
Income tax benefit (1)	(3,898)		(3,563)		(3,624)
Total, net of tax	$	12,130	$	11,153	$	11,203

(1)Excludes additional tax expense related to delivered shares of $1.2M, $0.6M and $0.1M as of September 30, 2024, 2023 and 2022, respectively.

Summary of Performance Share Activity

The following table summarizes the performance share activity under the stock award and incentive plans for the past three fiscal years:

	Shares (1)	Weighted Average Grant Date Fair Value		Total Fair Value of Vested Shares (in Thousands)
Non-vested and outstanding at September 30, 2021	166,091		$36.08		—
Granted	118,526		$38.84		—
Vested (2)	(76,708)		$39.57		$	2,765
Cancelled/forfeited	(15,788)		$37.33		—
Non-vested and outstanding at September 30, 2022	192,121		$36.29		—
Granted	112,661		$46.00		—
Vested (3)	(105,197)		$35.07		$	4,126
Cancelled/forfeited	(9,330)		$38.64		—
Non-vested and outstanding at September 30, 2023	190,255		$42.60		—
Granted	142,800		$42.55		—
Vested (4)	(112,183)		$39.91		$	5,271
Cancelled/forfeited	(1,913)		$43.83		—
Non-vested and outstanding at September 30, 2024	218,959		$43.93		—

(1)The number of common shares issued related to certain performance shares may range from zero to 150% of the number of shares shown in the table above based on the Company’s achievement of performance goals.

(2)As certified by the Company’s Leadership and Compensation Committee on November 9, 2022, the number of common shares earned related to TSR performance was 112% or 30,472 shares, the number of common shares earned related to NFE performance was 105% or 26,282 shares, and the number of common shares earned related to Performance Based Restricted Stock was 100% or 28,965 shares. Each award earned excludes accumulated dividends. The number represented on this line is the target number of 100%.

(3)As certified by the Company’s Leadership and Compensation Committee on November 15, 2023, the number of common shares earned related to TSR performance was 150% or 59,192 shares, the number of common shares earned related to NFE performance was 150% or 55,832 shares, and the number of common shares earned related to Performance Based Restricted Stock was 100% or 30,598 shares. Each award earned excludes accumulated dividends. The number represented on this line is the target number of 100%.

(4)As certified by the Company’s Leadership and Compensation Committee on November 6, 2024, the number of common shares earned related to TSR performance was 150% or 60,092 shares, the number of common shares earned related to NFE performance was 124% or 49,269 shares, and the number of common shares earned related to Performance Based Restricted Stock was 100% or 37,603 shares. Each award earned excludes accumulated dividends. The number represented on this line is the target number of 100%.

Summary of Restricted Stock Activity

The following table summarizes the restricted stock activity under the stock award and incentive plans for the past three fiscal years:

	Shares	Weighted Average Grant Date Fair Value		Total Fair Value of Vested Shares (in Thousands)
Non-vested and outstanding at September 30, 2021	101,621		$36.87		—
Granted	54,826		$38.84		—
Vested	(47,867)		$39.01		$	1,824
Cancelled/forfeited	(10,756)		$37.06		—
Non-vested and outstanding at September 30, 2022	97,824		$36.90		—
Granted	64,080		$46.00		—
Vested	(48,312)		$40.30		$	1,910
Cancelled/forfeited	(4,716)		$38.77		—
Non-vested and outstanding at September 30, 2023	108,876		$41.55		—
Granted	70,987		$42.59		—
Vested	(53,393)		$39.74		$	2,256
Cancelled/forfeited	(970)		$44.52		—
Non-vested and outstanding at September 30, 2024	125,500		$42.89		—

Summary of Deferred Retention Stock Award

The following table summarizes the deferred retention stock award under the stock award and incentive plans for the past three fiscal years:

	Shares	Weighted Average Grant Date Fair Value		Total Fair Value of Vested Shares (in Thousands)
Outstanding at September 30, 2021	208,856		$46.28		—
Granted/Vested	192,728		$38.95		—
Delivered	(163,499)		$47.95		$	6,167
Forfeited	(6,818)		$40.33		—
Outstanding at September 30, 2022	231,267		$39.16		—
Granted/Vested	134,941		$45.85		—
Delivered	(38,115)		$40.67		$	1,517
Outstanding at September 30, 2023	328,093		$41.74		—
Granted/Vested	155,188		$42.55		—
Delivered	(5,089)		$35.86		$	213
Forfeited	(235)		$42.55		—
Outstanding at September 30, 2024	477,957		$42.07		—

Schedule of Nonemployee Director Stock Award Plan Activity

The following summarizes non-employee director share awards for the past three fiscal years:

	2024	2023	2022
Shares granted	29,996	24,044	30,908
Weighted average grant date fair value	$41.67	$49.58	$39.09

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EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Sep. 30, 2024

Retirement Benefits [Abstract]

Summary of Changes in Funded Status of Plans and Liabilities Recognized

The following summarizes the changes in the funded status of the plans and the related liabilities recognized on the Consolidated Balance Sheets as of September 30:

	Pension (1)				OPEB
(Thousands)	2024		2023		2024		2023
Change in Benefit Obligation
Benefit obligation at beginning of year	$	290,321	$	290,823	$	203,406	$	173,217
Service cost	4,976		5,402		1,406		2,471
Interest cost	16,240		15,174		8,327		9,146
Plan amendments	—		—		(79,881)		—
Plan participants’ contributions (2)	27		32		703		552
Actuarial loss (gain)	36,863		(7,057)		54,518		25,363
Benefits paid, net of retiree subsidies received	(14,895)		(14,053)		(6,679)		(7,343)
Benefit obligation at end of year	$	333,532	$	290,321	$	181,800	$	203,406
Change in plan assets
Fair value of plan assets at beginning of year	$	298,361	$	284,347	$	106,783	$	99,736
Actual return on plan assets	58,682		27,456		21,249		9,826
Employer contributions	535		579		7,846		4,192
Benefits paid, net of plan participants’ contributions (2)	(14,868)		(14,021)		(6,157)		(6,971)
Fair value of plan assets at end of year	$	342,710	$	298,361	$	129,721	$	106,783
Funded status	$	9,178	$	8,040	$	(52,079)	$	(96,623)
Amounts recognized on Consolidated Balance Sheets
Postemployment employee benefit asset
Noncurrent	$	21,104	$	18,684	$	3,556	$	—
Postemployment employee benefit liability
Current	$	(552)	$	(538)	$	(2,400)	$	(4,201)
Noncurrent	(11,374)		(10,106)		(53,235)		(92,422)
Total	$	9,178	$	8,040	$	(52,079)	$	(96,623)

(1)Includes the Company’s PEP.

(2)Contributions made by employees hired prior to July 1, 1998, that were eligible to elect an additional participant contribution to enhance their benefits, were immaterial during the periods.

Summary of Regulatory Assets and Accumulated Other Comprehensive Income

The following table summarizes the amounts recognized in regulatory assets and accumulated OCI as of September 30:

	Regulatory Assets				Accumulated Other Comprehensive Income (Loss)
(Thousands)	Pension		OPEB		Pension		OPEB
Balance at September 30, 2022	$	35,321	$	20,110	$	5,003	$	(6,822)
Amounts arising during the period:
Net actuarial (gain) loss	(10,493)		9,936		(4,048)		12,320
Amounts amortized to net periodic costs:
Net actuarial (loss)	(87)		—		(213)		—
Prior service (cost)	(103)		—		—		—
Balance at September 30, 2023	$	24,638	$	30,046	$	742	$	5,498
Amounts arising during the period:
Net actuarial (gain) loss	(2,407)		27,108		934		14,080
Prior service (credit)	—		(60,504)		—		(19,376)
Amounts amortized to net periodic costs:
Net actuarial gain (loss)	2		(3,098)		(119)		(1,164)
Prior service (cost) credit	(61)		7,458		—		2,555
Balance at September 30, 2024	$	22,172	$	1,010	$	1,557	$	1,593

The amounts in regulatory assets and accumulated OCI not yet recognized as components of net periodic benefit cost as of September 30 are:

	Regulatory Assets								Accumulated Other Comprehensive Income (Loss)
	Pension				OPEB				Pension				OPEB
(Thousands)	2024		2023		2024		2023		2024		2023		2024		2023
Net actuarial loss	$	22,172	$	24,577	$	54,056	$	30,046	$	1,557	$	742	$	18,414	$	5,498
Prior service cost (credit)	—		61		(53,046)		—		—		—		(16,821)		—
Total	$	22,172	$	24,638	$	1,010	$	30,046	$	1,557	$	742	$	1,593	$	5,498

Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets

The projected benefit and accumulated benefit obligations and the fair value of plan assets as of September 30, are as follows:

	Pension
(Thousands)	2024		2023
Projected benefit obligation	$	333,532	$	290,321
Accumulated benefit obligation	$	306,850	$	267,794
Fair value of plan assets	$	342,710	$	298,361

Components of Net Periodic Cost

The components of the net periodic cost for pension benefits, including the Company’s PEP, and OPEB costs (principally health care and life insurance) for employees and covered dependents for fiscal years ended September 30, are as follows:

	Pension						OPEB
(Thousands)	2024		2023		2022		2024		2023		2022
Service cost	$	4,976	$	5,402	$	8,291	$	1,406	$	2,471	$	4,305
Interest cost	16,240		15,174		9,632		8,327		9,146		6,355
Expected return on plan assets	(20,346)		(19,972)		(21,275)		(7,920)		(6,721)		(7,575)
Recognized actuarial loss	117		300		8,745		4,262		—		5,684
Prior service cost (credit) amortization	61		103		101		(10,013)		—		(144)
Net periodic benefit cost recognized as expense	$	1,048	$	1,007	$	5,494	$	(3,938)	$	4,896	$	8,625

Schedule of Weighted Average Assumptions Used

The weighted average assumptions used to determine the Company’s benefit costs during the fiscal years below and obligations as of September 30, are as follows:

	Pension									OPEB
	2024			2023			2022			2024			2023			2022
Benefit costs:
Discount rate	5.89/5.87%		(1)	5.50/5.50%		(1)	3.10/3.07%		(1)	5.97/5.94%		(1)	5.51/5.51%		(1)	3.24/3.17%		(1)
Expected asset return	7.00	%		7.00	%		6.75	%		7.00	%		7.00	%		6.75	%
Compensation increase	3.00/3.50%		(1)	3.00/3.50%		(1)	3.00/3.50%		(1)	3.00/3.50%		(1)	3.00/3.50%		(1)	3.00/3.50%		(1)
Obligations:
Discount rate	5.01/4.99%		(1)	5.89/5.87%		(1)	5.50/5.50%		(1)	4.97/4.98%		(1)	5.97/5.94%		(1)	5.51/5.51%		(1)
Compensation increase	3.00/3.50%		(1)	3.00/3.50%		(1)	3.00/3.50%		(1)	3.00/3.50%		(1)	3.00/3.50%		(1)	3.00/3.50%		(1)

(1)Percentages for represented and non-represented plans, respectively.

Summary of Pension and OPEB Assets

Information relating to the assumed HCCTR used to determine expected OPEB benefits as of September 30, is as follows:

($ in thousands)	2024	2023	2022
HCCTR	8.8%	7.4%	6.6%
Ultimate HCCTR	4.5%	4.5%	4.5%
Year ultimate HCCTR reached	2032	2032	2027

Pension and OPEB assets held in the master trust, measured at fair value, are summarized as follows:

	Pension				OPEB
(Thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Total
As of September 30, 2024
Assets
Money market funds	$	—	$	—	$	24	$	24
Registered Investment Companies:
Equity Funds:
Large Cap Index	76,897		76,897		38,040		38,040
Extended Market Index	16,665		16,665		7,977		7,977
International Stock	50,549		50,549		22,730		22,730
Fixed Income Funds:
Emerging Markets	13,354		13,354		5,358		5,358
Core Fixed Income	—		—		28,765		28,765
High Yield Bond Fund	16,704		16,704		9,195		9,195
Long Duration Fund	106,656		106,656		—		—
Total assets in the fair value hierarchy	$	280,825	280,825		$	112,089	112,089
Investments measured at net asset value
Collective investment trusts			61,885				17,632
Total assets at fair value			$	342,710			$	129,721
As of September 30, 2023
Assets
Registered Investment Companies:
Equity Funds:
Large Cap Index	$	81,171	$	81,171	$	30,884	$	30,884
Extended Market Index	17,256		17,256		6,444		6,444
International Stock	48,557		48,557		17,966		17,966
Fixed Income Funds:
Emerging Markets	11,471		11,471		4,306		4,306
Core Fixed Income	—		—		22,241		22,241
High Yield Bond Fund	20,685		20,685		7,651		7,651
Long Duration Fund	58,484		58,484		—		—
Total assets in the fair value hierarchy	$	237,624	237,624		$	89,492	89,492
Investments measured at net asset value
Collective investment trusts			60,737				17,291
Total assets at fair value			$	298,361			$	106,783

Schedule of Mix and Targeted Allocation of Plan Assets

The mix and targeted allocation of the pension and OPEB plans’ assets are as follows:

	2025		Assets at
	Target		September 30,
Asset Allocation	Allocation		2024		2023
U.S. equity securities	29	%	29	%	34	%
International equity securities	16		16		16
Fixed income	39		38		31
Collective investment trusts at NAV	16		17		19
Total	100	%	100	%	100	%

Schedule of Expected Benefit Payments

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the following fiscal years:

(Thousands)	2025		2026		2027		2028		2029		2030 - 2034
Pension	$	16,273	$	17,378	$	18,452	$	19,423	$	20,493	$	115,709
OPEB	$	8,397	$	9,300	$	10,138	$	10,925	$	11,703	$	65,473

Schedule of Valuation Methodologies Used for Assets Measured at Fair Value

The following is a description of the valuation methodologies used for assets measured at fair value:

Asset Types	Description of the Valuation Methodologies
Money Market funds	Represents bank balances and money market funds that are valued based on the NAV of shares held at year end.
Registered Investment Companies	Equity and fixed income funds valued at the NAV of shares held by the plan at year end as reported on the active market on which the individual securities are traded.
Collective investment trusts	The NAV for collective investment trusts is provided by the Trustee and is used as a practical expedient to estimate fair value. The NAV is based on the value of the underlying assets owned by the fund less liabilities.

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INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2024

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)	2024		2023		2022
Current:
Federal	$	691	$	13,393	$	4,238
State	(682)		7,716		2,104
Deferred:
Federal	66,623		36,825		55,968
State	18,531		(8,381)		14,185
Investment/production tax credits	(257)		(278)		(300)
Income tax provision	$	84,906	$	49,275	$	76,195

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)	2024		2023
Deferred tax assets
Investment tax credits (1)	$	192,238	$	191,948
State net operating losses	38,762		39,612
Deferred revenue	14,107		8,205
Fair value of derivatives	5,397		5,386
Impairment of equity method investment	14,004		14,004
Postemployment benefits	855		6,502
Incentive compensation	10,142		8,949
Amortization of intangibles	6,248		6,308
Overrecovered natural gas costs	9,072		8,564
Allowance for doubtful accounts	3,744		4,485
Other	7,226		7,636
Total deferred tax assets	301,795		301,599
Less: Valuation allowance	(5,621)		(5,747)
Total deferred tax assets net of valuation allowance	$	296,174	$	295,852
Deferred tax liabilities
Property-related items	$	(563,403)	$	(487,294)
Remediation costs	(21,656)		(18,532)
Investments in equity investees	(28,704)		(28,325)
Conservation incentive program	(14,379)		(14,075)
Other	(6,065)		(4,670)
Total deferred tax liabilities	$	(634,207)	$	(552,896)
Total net deferred tax liabilities	$	(338,033)	$	(257,044)

(1)Includes approximately $0.7M for NJNG for both fiscal 2024 and 2023, 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)	2024			2023			2022
Statutory income tax expense	$	78,683		$	65,940		$	73,735
Change resulting from:
Investment/production tax credits	(257)			(278)			(300)
Cost of removal of assets placed in service prior to 1981	(5,644)			(4,758)			(3,533)
AFUDC equity	(1,444)			(1,499)			(2,361)
State income taxes, net of federal benefit	14,517			13,293			13,072
Valuation allowance	(126)			(16,494)			(1,372)
Tax Act - utility excess deferred income taxes amortized	(3,573)			(3,573)			(3,573)
Other	2,750			(3,356)			527
Income tax provision	$	84,906		$	49,275		$	76,195
Effective income tax rate	22.7		%	15.7		%	21.7		%

Schedule of Uncertain Tax Benefits

The reserve for uncertain tax benefits is as follows:

(Thousands)	2024		2023
Balance at October 1,	$	4,978	$	—
Additions based on tax positions related to the current fiscal period	15		4,978
Balance at September 30,	$	4,993	$	4,978

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LEASES (Tables)

12 Months Ended

Sep. 30, 2024

Leases [Abstract]

Lease, Cost

The following table presents the Company’s lease costs included in the Consolidated Statements of Operations for the fiscal year ended September 30:

(Thousands)	Income Statement Location	2024		2023		2022
Operating lease cost (1)	Operation and maintenance	$	10,368	$	9,336	$	9,702
Finance lease cost
Amortization of right-of-use assets	Depreciation and amortization	2,160		2,105		$	1,769
Interest on lease liabilities	Interest expense, net of capitalized interest	914		1,084		612
Total finance lease cost		$	3,074	$	3,189	2,381
Short-term lease cost	Operation and maintenance	—		—		34
Variable lease cost	Operation and maintenance	1,099		1,128		781
Total lease cost		$	14,541	$	13,653	$	12,898

(1)Net of capitalized costs.

The following table presents supplemental cash flow information related to leases for the fiscal year ended September 30:

(Thousands)	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	7,932	$	8,942	$	7,417
Operating cash flows for finance leases	$	914	$	1,084	$	831
Financing cash flows for finance leases	$	7,792	$	7,379	$	7,145

Assets and Liabilities, Lessee

The following table presents the balance and classifications of the Company’s right of use assets and lease liabilities included in the Consolidated Balance Sheets for the fiscal year ended September 30:

(Thousands)	Balance Sheet Location	2024		2023
Assets
Noncurrent
Operating lease assets	Operating lease assets	$	184,485	$	175,740
Finance lease assets	Utility plant	26,088		28,248
Total lease assets		$	210,573	$	203,988
Liabilities
Current
Operating lease liabilities	Operating lease liabilities	$	4,945	$	4,772
Finance lease liabilities	Current maturities of long-term debt	7,534		8,477
Noncurrent
Operating lease liabilities	Operating lease liabilities	159,303		148,023
Finance lease liabilities	Long-term debt	16,026		22,875
Total lease liabilities		$	187,808	$	184,147

Operating Lease Liability, Maturity

The following table presents the Company’s maturities of lease liabilities as of September 30, 2024:

(Thousands)	Operating		Finance
2025	$	8,408	$	8,169
2026	8,852		6,411
2027	8,834		4,083
2028	8,925		4,715
2029	8,994		1,676
Thereafter	233,942		—
Total future payments	277,955		25,054
Less: interest	(113,707)		(1,494)
Total liability	$	164,248	$	23,560

Finance Lease Liability, Maturity

Contractual commitments for meter sale leaseback arrangements, which represent the most likely outcome of cash payments, as of the fiscal years ended September 30, are as follows:

(Thousands)	2025		2026	2027	2028	2029	Thereafter	Subtotal
Future payments	$	9,665	7,906	5,579	6,211	3,171	1,852	$	34,384
Less: Interest component								(2,810)
Total								$	31,574

The following table presents the Company’s maturities of lease liabilities as of September 30, 2024:

(Thousands)	Operating		Finance
2025	$	8,408	$	8,169
2026	8,852		6,411
2027	8,834		4,083
2028	8,925		4,715
2029	8,994		1,676
Thereafter	233,942		—
Total future payments	277,955		25,054
Less: interest	(113,707)		(1,494)
Total liability	$	164,248	$	23,560

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COMMITMENTS AND CONTINGENT LIABILITIES (Tables)

12 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Schedule of Commitments for Natural Gas Purchases and Future Demands Fees for the Next Five Years

Commitments as of September 30, 2024, for natural gas purchases and future demand fees for the next five fiscal year periods, are as follows:

(Thousands)	2025		2026		2027		2028		2029		Thereafter
ES:
Natural gas purchases	$	42,427	$	1,155	$	—	$	—	$	—	$	—
Storage demand fees	16,453		11,857		5,452		3,500		2,712		4,068
Pipeline demand fees	47,950		40,197		29,543		21,493		11,005		47,686
Sub-total ES	$	106,830	$	53,209	$	34,995	$	24,993	$	13,717	$	51,754
NJNG:
Natural gas purchases	$	23,392	$	—	$	—	$	—	$	—	$	—
Storage demand fees	38,214		22,678		11,207		4,900		—		—
Pipeline demand fees	214,625		161,954		141,818		126,080		124,498		955,035
Sub-total NJNG	$	276,231	$	184,632	$	153,025	$	130,980	$	124,498	$	955,035
Total	$	383,061	$	237,841	$	188,020	$	155,973	$	138,215	$	1,006,789

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REPORTING SEGMENT AND OTHER OPERATIONS DATA (Tables)

12 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Information related to the Company’s various reporting segments and other business operations, as of September 30, is detailed below:

	Segments
(Thousands)	NJNG		CEV	ES		S&T	Subtotal		HSO	Elims	Total
2024
Operating revenues
External customers	$	1,018,482	130,563	490,266	(1)	94,851	$	1,734,162	62,377	—	$	1,796,539
Intercompany	$	1,350	—	(4,875)		1,358	$	(2,167)	258	1,909	$	—
Depreciation and amortization	$	112,492	27,869	205	(2)	24,900	$	165,466	1,101	—	$	166,567
Interest income (3)	$	2,448	—	452		10,172	$	13,072	1,423	(5,826)	$	8,669
Interest expense, net of capitalized interest	$	62,288	28,545	15,233		23,441	$	129,507	768	—	$	130,275
Income tax provision	$	31,793	11,406	33,331		4,551	$	81,081	2,666	1,159	$	84,906
Equity in earnings of affiliates	$	—	—	—		2,816	$	2,816	—	2,483	$	5,299
Net financial earnings	$	133,400	33,662	111,515		12,229	$	290,806	26	(4)	$	290,828
Capital expenditures	$	419,453	104,287	—		45,338	$	569,078	2,241	—	$	571,319
2023
Operating revenues
External customers	$	1,011,284	124,131	681,446	(1)	88,700	$	1,905,561	57,433	—	$	1,962,994
Intercompany	$	1,349	—	10,170		4,159	$	15,678	205	(15,883)	$	—
Depreciation and amortization	$	102,326	25,320	221	(2)	24,185	$	152,052	889	—	$	152,941
Interest income (3)	$	1,713	—	1,119		6,957	$	9,789	2,977	(3,847)	$	8,919
Interest expense, net of capitalized interest	$	56,595	28,569	11,400		25,803	$	122,367	647	—	$	123,014
Income tax provision (benefit)	$	33,065	(7,683)	24,343		3,444	$	53,169	(1,477)	(2,417)	$	49,275
Equity in earnings of affiliates	$	—	—	—		3,126	$	3,126	—	804	$	3,930
Net financial earnings	$	131,414	44,458	68,517		12,835	$	257,224	4,758	(155)	$	261,827
Capital expenditures	$	390,394	107,303	—		40,916	$	538,613	2,306	—	$	540,919
2022
Operating revenues
External customers	$	1,127,417	128,280	1,529,178	(1)	65,286	$	2,850,161	55,818	—	$	2,905,979
Intercompany	$	1,350	—	94		2,449	$	3,893	364	(4,257)	$	—
Depreciation and amortization	$	94,579	21,396	148	(2)	12,302	$	128,425	824	—	$	129,249
Interest income (3)	$	895	—	16		2,110	$	3,021	944	(1,249)	$	2,716
Interest expense, net of capitalized interest	$	46,394	21,968	4,725		12,097	$	85,184	646	—	$	85,830
Income tax provision	$	40,141	11,361	21,776		1,879	$	75,157	1,059	(21)	$	76,195
Equity in loss of affiliates	$	—	—	—		9,865	$	9,865	—	(1,688)	$	8,177
Net financial earnings	$	140,124	39,403	39,121		22,454	$	241,102	(781)	—	$	240,321
Capital expenditures	$	298,374	146,676	—		151,988	$	597,038	1,390	—	$	598,428
Return of capital from equity investees	$	—	—	—		(5,479)	$	(5,479)	—	—	$	(5,479)

(1)Includes sales to Canada for ES, which were $8.4M and $2.4M during the fiscal years ended September 30, 2023 and 2022, respectively. There were no sales to Canada for ES during the fiscal year ended September 30, 2024.

(2)The amortization of acquired wholesale energy contracts is excluded above and is included in natural gas purchases - nonutility on the Consolidated Statements of Operations.

(3)Included in other income, net on the Consolidated Statements of Operations.

Schedule of Assets for Business Segments and Other Business Operations

The Company’s assets at end of period for the various reporting segments and other business operations, as of September 30, are detailed below:

	Segments								Intercompany
(Thousands)	NJNG		CEV	ES	S&T	Subtotal		HSO	Assets (1)	Total
2024	$	4,789,835	1,157,573	108,710	1,025,457	$	7,081,575	159,444	(259,374)	$	6,981,645
2023	$	4,414,829	1,128,577	123,775	1,011,959	$	6,679,140	171,275	(312,919)	$	6,537,496
2022	$	4,030,686	1,015,065	333,064	999,520	$	6,378,335	159,068	(275,987)	$	6,261,416

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

Reconciliation of Consolidated NFE to Consolidated Net Income

A reconciliation of consolidated NFE to consolidated net income, as of September 30, is as follows:

(Thousands)	2024		2023		2022
Net financial earnings	$	290,828	$	261,827	$	240,321
Less:
Unrealized loss (gain) on derivative instruments and related transactions	19,574		(38,081)		(59,906)
Tax effect	(4,652)		9,050		14,248
Effects of economic hedging related to natural gas inventory	(18,192)		34,699		19,939
Tax effect	4,323		(8,246)		(4,738)
Gain on equity method investment	—		(300)		(5,521)
Tax effect	—		(19)		1,377
Net income	$	289,775	$	264,724	$	274,922

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RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Sep. 30, 2024

Related Party Transactions [Abstract]

Schedule of Demand Fees and Demand Fees Payable

Demand fees, net of eliminations, associated with Steckman Ridge during the fiscal years ended September 30, were as follows:

(Thousands)	2024		2023		2022
NJNG	$	6,319	$	6,549	$	6,663
ES	828		657		732
Total	$	7,147	$	7,206	$	7,395

The following table summarizes demand fees payable to Steckman Ridge as of September 30:

(Thousands)	2024		2023
NJNG	$	775	$	775
ES	100		84
Total	$	875	$	859

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NATURE OF THE BUSINESS (Details) $ in Millions		1 Months Ended	12 Months Ended
	Nov. 25, 2024 USD ($) MW	Jul. 31, 2021 Megawatt	Sep. 30, 2024 subsidiary
Nature of Business [Line Items]
Number of megawatts | Megawatt		5
Residential Solar Portfolio | Subsequent Event
Nature of Business [Line Items]
Number of megawatts | MW	91
Purchase price | $	$ 132.5
Steckman Ridge
Nature of Business [Line Items]
Ownership percentage			50.00%
NJR Retail Holdings Corporation
Nature of Business [Line Items]
Number of principal subsidiaries | subsidiary			1

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ADDITIONAL INFORMATION (Details) $ in Thousands	1 Months Ended	12 Months Ended
	Jul. 31, 2021 Megawatt	Sep. 30, 2024 USD ($) plan	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)
Finite-Lived Intangible Assets [Line Items]
Number of megawatts | Megawatt	5
Operating revenues		$ 1,796,539	$ 1,962,994	$ 2,905,979
Composite rate of depreciation		2.69%	2.68%	2.66%
Depreciation and amortization		$ 166,567	$ 152,941	$ 129,249
Debt instrument, term		7 years
Basis spread on variable rate		0.60%
SBC interest rate		4.33%	4.79%	3.85%
Deferred interest		$ 2,600	$ 1,800	$ 900
Loans receivable in other noncurrent assets		53,600	39,000
Amounts reclassified from accumulated other comprehensive income, net of tax		$ 78	1,217
Number of noncontributory defined benefit retirement plans (in plans) | plan		2
Number of noncontributory medical and life insurance plans (in plans) | plan		2
Cash Flow Hedges
Finite-Lived Intangible Assets [Line Items]
Amounts reclassified from accumulated other comprehensive income, net of tax		$ 1,054	1,053
Financial Asset, Not Past Due
Finite-Lived Intangible Assets [Line Items]
Loans receivable in other current assets		18,100	15,100
Storage and Transportation Property, Base Gas | Nonutility
Finite-Lived Intangible Assets [Line Items]
Base gas cost		$ 21,400	20,900
Minimum
Finite-Lived Intangible Assets [Line Items]
Storage and pipeline capacity, contract term		1 year
Loans receivable term		3 years
Maximum
Finite-Lived Intangible Assets [Line Items]
Storage and pipeline capacity, contract term		10 years
Loans receivable term		10 years
ES
Finite-Lived Intangible Assets [Line Items]
Operating revenues		$ 137,200	48,500
Deferred revenue		$ 22,300	$ 58,700
ES | Minimum
Finite-Lived Intangible Assets [Line Items]
Storage and pipeline capacity, contract term		1 year
ES | Maximum
Finite-Lived Intangible Assets [Line Items]
Storage and pipeline capacity, contract term		10 years

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - DEMAND FEES (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items]
Demand fees	$ 273.0	$ 258.0	$ 265.7
ES
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items]
Demand fees	72.6	74.6	95.4
NJNG
Costs Incurred, Oil and Gas Property Acquisition, Exploration, and Development Activities [Line Items]
Demand fees	$ 200.4	$ 183.4	$ 170.3

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - PROPERTY PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023
Property Classifications
Total property, plant and equipment	$ 6,496,515	$ 5,990,539
Accumulated depreciation and amortization	(1,093,292)	(968,484)
Property, plant and equipment, net	5,403,223	5,022,055
Distribution facilities
Property Classifications
Total property, plant and equipment	$ 3,436,308	3,063,111
Distribution facilities | Minimum
Property Classifications
Estimated Useful Lives	11 years
Distribution facilities | Maximum
Property Classifications
Estimated Useful Lives	54 years
Transmission facilities
Property Classifications
Total property, plant and equipment	$ 656,098	650,817
Transmission facilities | Minimum
Property Classifications
Estimated Useful Lives	28 years
Transmission facilities | Maximum
Property Classifications
Estimated Useful Lives	42 years
Storage facilities
Property Classifications
Total property, plant and equipment	$ 86,329	85,603
Storage facilities | Minimum
Property Classifications
Estimated Useful Lives	27 years
Storage facilities | Maximum
Property Classifications
Estimated Useful Lives	86 years
Solar property
Property Classifications
Total property, plant and equipment	$ 885,518	864,838
Solar property | Minimum
Property Classifications
Estimated Useful Lives	15 years
Solar property | Maximum
Property Classifications
Estimated Useful Lives	35 years
Storage and transportation property
Property Classifications
Total property, plant and equipment	$ 929,850	884,647
Storage and transportation property | Minimum
Property Classifications
Estimated Useful Lives	5 years
Storage and transportation property | Maximum
Property Classifications
Estimated Useful Lives	50 years
All other property
Property Classifications
Total property, plant and equipment	$ 62,248	61,327
All other property | Minimum
Property Classifications
Estimated Useful Lives	5 years
All other property | Maximum
Property Classifications
Estimated Useful Lives	40 years
Construction work in progress
Property Classifications
Total property, plant and equipment	$ 440,164	$ 380,196

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CAPITALIZED AND DEFERRED INTEREST (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
NJNG
AFUDC:
Debt	$ 4,729	$ 3,546	$ 1,648
Equity	6,761	6,979	4,169
Total	$ 11,490	$ 10,525	$ 5,817
Weighted average interest rate	6.48%	6.41%	4.91%
Adelphia
AFUDC:
Debt	$ 64	$ 90	$ 4,019
Equity	113	158	7,074
Total	$ 177	$ 248	$ 11,093
Weighted average interest rate	8.28%	8.28%	8.28%

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021
Accounting Policies [Abstract]
Cash and cash equivalents	$ 1,017	$ 954	$ 1,107
Restricted cash in other noncurrent assets	595	563	345
Cash, cash equivalents and restricted cash	$ 1,612	$ 1,517	$ 1,452	$ 6,043

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - NATURAL GAS IN STORAGE (Details) $ in Thousands, Bcf in Millions	Sep. 30, 2024 USD ($) Bcf	Sep. 30, 2023 USD ($) Bcf
Inventory [Line Items]
Natural Gas in Storage, value | $	$ 199,125	$ 199,501
Natural Gas in Storage, Bcf | Bcf	43.9	43.7
NJNG
Inventory [Line Items]
Natural Gas in Storage, value | $	$ 177,655	$ 175,025
Natural Gas in Storage, Bcf | Bcf	30.8	29.1
ES
Inventory [Line Items]
Natural Gas in Storage, value | $	$ 21,378	$ 24,476
Natural Gas in Storage, Bcf | Bcf	13.1	14.6
S&T
Inventory [Line Items]
Natural Gas in Storage, value | $	$ 92	$ 0
Natural Gas in Storage, Bcf | Bcf	0.0	0.0

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SOFTWARE COSTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items]
Capitalized software costs	$ 10,522	$ 8,375
Operation and maintenance
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items]
Software costs	13,087	14,299
Depreciation and amortization
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items]
Software costs	6,164	4,130
Utility plant, at cost
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items]
Software costs	133,158	51,282
Construction work in progress | Utility
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items]
Software costs	26,659	55,012
Nonutility plant and equipment, at cost
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items]
Software costs	344	344
Accumulated depreciation and amortization, utility plant
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items]
Accumulated depreciation and amortization	(13,632)	(7,480)
Accumulated depreciation and amortization, nonutility plant and equipment
Capitalized Costs of Unproved Properties Excluded from Amortization [Line Items]
Accumulated depreciation and amortization	$ (48)	$ (36)

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Estimated Accretion
2025	$ 3,403
2026	3,573
2027	3,751
2028	3,948
2029	4,165
Future accretion	18,840
NJNG
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Balance at period beginning	55,285	$ 49,874
Accretion	3,039	2,693
Additions	152	155
Change in assumptions	2,925	4,089
Retirements	(1,727)	(1,526)
Balance at period ending	59,674	55,285
NJRCEV
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Balance at period beginning	6,708	5,161
Accretion	236	213
Additions	79	1,334
Change in assumptions	0	0
Retirements	0	0
Balance at period ending	$ 7,023	$ 6,708

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance as of beginning of period	$ 1,990,735	$ 1,817,210	$ 1,630,862
Other comprehensive income, before reclassifications, net of tax	3,360	(6,350)
Amounts reclassified from accumulated other comprehensive income, net of tax	78	1,217
Other comprehensive income (loss), net of tax	3,438	(5,133)	29,702
Balance as of end of period	2,200,443	1,990,735	1,817,210
Tax on other comprehensive income before reclassifications	(1,002)	1,922
Tax on amounts reclassified from accumulated other comprehensive income	(21)	(366)
Tax on net current-period other comprehensive income	(1,023)	1,556
Total
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance as of beginning of period	(9,959)	(4,826)	(34,528)
Other comprehensive income (loss), net of tax	3,438	(5,133)	29,702
Balance as of end of period	(6,521)	(9,959)	(4,826)
Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance as of beginning of period	(7,269)	(8,322)
Other comprehensive income, before reclassifications, net of tax	0	0
Amounts reclassified from accumulated other comprehensive income, net of tax	1,054	1,053
Other comprehensive income (loss), net of tax	1,054	1,053
Balance as of end of period	(6,215)	(7,269)	(8,322)
Tax on other comprehensive income before reclassifications	0	0
Tax on amounts reclassified from accumulated other comprehensive income	(317)	(317)
Tax on net current-period other comprehensive income	(317)	(317)
Postemployment Benefit Obligation
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Balance as of beginning of period	(2,690)	3,496
Other comprehensive income, before reclassifications, net of tax	3,360	(6,350)
Amounts reclassified from accumulated other comprehensive income, net of tax	(976)	164
Other comprehensive income (loss), net of tax	2,384	(6,186)
Balance as of end of period	(306)	(2,690)	$ 3,496
Tax on other comprehensive income before reclassifications	(1,002)	1,922
Tax on amounts reclassified from accumulated other comprehensive income	296	(49)
Tax on net current-period other comprehensive income	$ (706)	$ 1,873

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REVENUE - DISAGGREGATED REVENUE - PRODUCT (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	$ 1,229,949	$ 1,111,520	$ 1,198,985
Alternative revenue programs	1,087	27,257	11,259
Derivative instruments	560,628	834,387	1,695,829
Revenues out of scope	566,590	851,474	1,706,994
Total operating revenues	1,796,539	1,962,994	2,905,979
Natural gas utility sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	861,882	845,392	951,626
Natural gas services
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	260,374	169,834	151,536
Service contracts
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	36,231	35,210	33,932
Installations and maintenance
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	26,404	22,428	22,250
Renewable energy certificates
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	15,111	12,636	5,487
Electricity sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	32,913	31,733	38,317
ES
Disaggregation of Revenue [Line Items]
Total operating revenues	137,200	48,500
Operating Segments
Disaggregation of Revenue [Line Items]
Total operating revenues	1,734,162	1,905,561	2,850,161
Operating Segments | NJNG
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	860,532	844,043	950,276
Alternative revenue programs	1,087	27,257	11,259
Derivative instruments	156,863	139,984	165,882
Revenues out of scope	157,950	167,241	177,141
Total operating revenues	1,018,482	1,011,284	1,127,417
Operating Segments | NJNG | Natural gas utility sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	861,882	845,392	951,626
Operating Segments | NJNG | Natural gas services
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Operating Segments | NJNG | Service contracts
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Operating Segments | NJNG | Installations and maintenance
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Operating Segments | NJNG | Renewable energy certificates
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Operating Segments | NJNG | Electricity sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Operating Segments | CEV
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	48,024	44,369	43,804
Alternative revenue programs	0	0	0
Derivative instruments	82,539	79,762	84,476
Revenues out of scope	82,539	79,762	84,476
Total operating revenues	130,563	124,131	128,280
Operating Segments | CEV | Natural gas utility sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Operating Segments | CEV | Natural gas services
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Operating Segments | CEV | Service contracts
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Operating Segments | CEV | Installations and maintenance
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Operating Segments | CEV | Renewable energy certificates
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	15,111	12,636	5,487
Operating Segments | CEV | Electricity sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	32,913	31,733	38,317
Operating Segments | ES
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	164,165	76,975	83,801
Alternative revenue programs	0	0	0
Derivative instruments	321,226	614,641	1,445,471
Revenues out of scope	326,101	604,471	1,445,377
Total operating revenues	490,266	681,446	1,529,178
Operating Segments | ES | Natural gas utility sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Operating Segments | ES | Natural gas services
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	164,165	76,975	83,801
Operating Segments | ES | Service contracts
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Operating Segments | ES | Installations and maintenance
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Operating Segments | ES | Renewable energy certificates
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Operating Segments | ES | Electricity sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Operating Segments | S&T
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	94,851	88,700	65,286
Alternative revenue programs	0	0	0
Derivative instruments	0	0	0
Revenues out of scope	0	0	0
Total operating revenues	94,851	88,700	65,286
Operating Segments | S&T | Natural gas utility sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Operating Segments | S&T | Natural gas services
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	96,209	92,859	67,735
Operating Segments | S&T | Service contracts
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Operating Segments | S&T | Installations and maintenance
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Operating Segments | S&T | Renewable energy certificates
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Operating Segments | S&T | Electricity sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Corporate, Non-Segment
Disaggregation of Revenue [Line Items]
Revenues out of scope	0	0	0
Total operating revenues	62,377	57,433	55,818
Corporate, Non-Segment | HSO
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	62,377	57,433	55,818
Alternative revenue programs	0	0	0
Derivative instruments	0	0	0
Revenues out of scope	0	0	0
Total operating revenues	62,377	57,433	55,818
Corporate, Non-Segment | HSO | Natural gas utility sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Corporate, Non-Segment | HSO | Natural gas services
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Corporate, Non-Segment | HSO | Service contracts
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	36,231	35,210	33,932
Corporate, Non-Segment | HSO | Installations and maintenance
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	26,404	22,428	22,250
Corporate, Non-Segment | HSO | Renewable energy certificates
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Corporate, Non-Segment | HSO | Electricity sales
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Eliminations
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	(2,966)	(5,713)	(4,163)
Revenues out of scope	4,875	(10,170)	(94)
Total operating revenues		(15,883)	(4,257)
Eliminations | NJNG
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	(1,350)	(1,349)	(1,350)
Revenues out of scope	0	0	0
Eliminations | CEV
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Revenues out of scope	0	0	0
Eliminations | ES
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Revenues out of scope	4,875	(10,170)	(94)
Eliminations | S&T
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	(1,358)	(4,159)	(2,449)
Revenues out of scope	0	0	0
Eliminations | HSO
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	(258)	(205)	(364)
Revenues out of scope	$ 0	$ 0	$ 0

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REVENUE - DISAGGREGATED REVENUE - TYPE (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	$ 1,229,949	$ 1,111,520	$ 1,198,985
Revenues out of scope	566,590	851,474	1,706,994
Total operating revenues	1,796,539	1,962,994	2,905,979
Residential
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	717,785	692,422	654,886
Commercial and industrial
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	416,965	332,729	446,471
Firm transportation
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	86,600	77,722	92,531
Interruptible, off-tariff and other
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	8,599	8,647	5,097
Operating Segments
Disaggregation of Revenue [Line Items]
Total operating revenues	1,734,162	1,905,561	2,850,161
Corporate, Non-Segment
Disaggregation of Revenue [Line Items]
Revenues out of scope	0	0	0
Total operating revenues	62,377	57,433	55,818
Corporate, Non-Segment | Residential
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	62,219	57,091	55,629
Corporate, Non-Segment | Commercial and industrial
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	158	342	189
Corporate, Non-Segment | Firm transportation
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Corporate, Non-Segment | Interruptible, off-tariff and other
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
NJNG | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	860,532	844,043	950,276
Revenues out of scope	157,950	167,241	177,141
Total operating revenues	1,018,482	1,011,284	1,127,417
NJNG | Operating Segments | Residential
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	641,606	621,663	586,678
NJNG | Operating Segments | Commercial and industrial
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	123,727	136,011	265,970
NJNG | Operating Segments | Firm transportation
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	86,600	77,722	92,531
NJNG | Operating Segments | Interruptible, off-tariff and other
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	8,599	8,647	5,097
CEV | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	48,024	44,369	43,804
Revenues out of scope	82,539	79,762	84,476
Total operating revenues	130,563	124,131	128,280
CEV | Operating Segments | Residential
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	13,960	13,668	12,579
CEV | Operating Segments | Commercial and industrial
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	34,064	30,701	31,225
CEV | Operating Segments | Firm transportation
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
CEV | Operating Segments | Interruptible, off-tariff and other
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
ES
Disaggregation of Revenue [Line Items]
Total operating revenues	137,200	48,500
ES | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	164,165	76,975	83,801
Revenues out of scope	326,101	604,471	1,445,377
Total operating revenues	490,266	681,446	1,529,178
ES | Operating Segments | Residential
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
ES | Operating Segments | Commercial and industrial
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	164,165	76,975	83,801
ES | Operating Segments | Firm transportation
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
ES | Operating Segments | Interruptible, off-tariff and other
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
S&T | Operating Segments
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	94,851	88,700	65,286
Revenues out of scope	0	0	0
Total operating revenues	94,851	88,700	65,286
S&T | Operating Segments | Residential
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
S&T | Operating Segments | Commercial and industrial
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	94,851	88,700	65,286
S&T | Operating Segments | Firm transportation
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
S&T | Operating Segments | Interruptible, off-tariff and other
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	$ 0	$ 0	$ 0

XML

REVENUE - TIMING OF REVENUE RECOGNITION (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Timing of Revenue Recognition [Roll Forward]
Customers' credit, beginning balance	$ 44,910	$ 33,246
Increase (decrease) for customers' credits	(6,315)	11,664
Customers' credit, ending balance	38,595	44,910
Billed
Timing of Revenue Recognition [Roll Forward]
Billed, beginning	97,540	222,297
Increase (decrease) for customer accounts receivable	7,991	(124,757)
Billed, end	105,531	97,540
Unbilled
Timing of Revenue Recognition [Roll Forward]
Billed, beginning	19,100	13,769
Increase (decrease) for customer accounts receivable	994	5,331
Billed, end	$ 20,094	$ 19,100

XML

REVENUE - TIMING OF REVENUE RECOGNITION - BALANCE SHEET (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Customer accounts receivable	$ 105,531	$ 97,540
Unbilled revenues	20,094	19,100
Customers’ credit balances and deposits	(38,595)	(44,910)	$ (33,246)
Customers accounts receivables & Customers' credit balances and deposits	87,030	71,730
Operating Segments | NJNG
Disaggregation of Revenue [Line Items]
Customer accounts receivable	51,613	55,234
Unbilled revenues	11,839	10,784
Customers’ credit balances and deposits	(38,572)	(44,898)
Customers accounts receivables & Customers' credit balances and deposits	24,880	21,120
Operating Segments | CEV
Disaggregation of Revenue [Line Items]
Customer accounts receivable	8,441	9,962
Unbilled revenues	8,255	8,316
Customers’ credit balances and deposits	0	0
Customers accounts receivables & Customers' credit balances and deposits	16,696	18,278
Operating Segments | ES
Disaggregation of Revenue [Line Items]
Customer accounts receivable	34,002	23,716
Unbilled revenues	0	0
Customers’ credit balances and deposits	0	0
Customers accounts receivables & Customers' credit balances and deposits	34,002	23,716
Operating Segments | S&T
Disaggregation of Revenue [Line Items]
Customer accounts receivable	8,598	6,577
Unbilled revenues	0	0
Customers’ credit balances and deposits	(23)	(12)
Customers accounts receivables & Customers' credit balances and deposits	8,575	6,565
Corporate, Non-Segment
Disaggregation of Revenue [Line Items]
Customer accounts receivable	2,877	2,051
Unbilled revenues	0	0
Customers’ credit balances and deposits	0	0
Customers accounts receivables & Customers' credit balances and deposits	$ 2,877	$ 2,051

XML

REGULATION - ADDITIONAL INFORMATION (Details) $ in Thousands															1 Months Ended								3 Months Ended	12 Months Ended
	Nov. 21, 2024 USD ($)	Oct. 30, 2024 USD ($)	Sep. 30, 2024 USD ($)	Sep. 25, 2024 USD ($)	Aug. 07, 2024 USD ($)	Jul. 26, 2024 USD ($)	Jun. 28, 2024 USD ($)	May 31, 2024 USD ($)	May 15, 2024 USD ($)	Mar. 28, 2024 USD ($)	Jan. 31, 2024 USD ($)	Dec. 01, 2023 USD ($)	Nov. 09, 2023 USD ($)	Apr. 30, 2023 USD ($)	Sep. 30, 2023 USD ($)	Jul. 31, 2023 USD ($)	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Feb. 28, 2023 USD ($)	Mar. 31, 2021 USD ($)	Oct. 31, 2020 USD ($)	Feb. 28, 2019 USD ($) projectComponent	May 31, 2023 USD ($)	Sep. 30, 2024 USD ($) filing
Schedule of Regulatory Filings [Line Items]
Regulatory assets			$ 609,192												$ 584,830									$ 609,192
Approved rate increase (decrease), amount													$ 76,900
Number of interim filings during each fiscal year | filing																								2
Number of days notice for refund																								5 days
NJNG
Schedule of Regulatory Filings [Line Items]
Regulatory assets			604,097												579,599									$ 604,097
Approved rate increase (decrease), amount										$ 43,500								$ 31,400
Interim rate increase (decrease), amount						$ 41,200										$ 28,200
COVID-19 Pandemic | NJNG
Schedule of Regulatory Filings [Line Items]
Regulatory assets			$ 3,900												3,900									$ 3,900
Environmental Remediation Costs
Schedule of Regulatory Filings [Line Items]
Regulatory assets, amortization period			7 years																					7 years
Base Rate Stipulation
Schedule of Regulatory Filings [Line Items]
Weighted average cost of capital																								6.84%
SAVEGREEN
Schedule of Regulatory Filings [Line Items]
Public utility extension term																				3 years
Capital investments approved by the BPU												$ 245,100								$ 126,100
Financing options												217,200								109,400
Operations and maintenance expense												$ 20,100								$ 23,400
Annual recovery increase								$ 5,600							9,000		$ 10,700
SAVEGREEN | Minimum
Schedule of Regulatory Filings [Line Items]
Regulatory assets, amortization period			3 years																					3 years
Program recovery term																								3 years
SAVEGREEN | Maximum
Schedule of Regulatory Filings [Line Items]
Regulatory assets, amortization period			10 years																					10 years
Program recovery term																								10 years
BPU
Schedule of Regulatory Filings [Line Items]
Weighted average cost of capital																								7.08%
Approved return on equity																								9.60%
Approved equity capital structure, percentage																								54.00%
Public utilities, approved depreciation rate, percentage																								3.21%
BPU | Subsequent Event
Schedule of Regulatory Filings [Line Items]
Capital investments approved by the BPU		$ 205,000
Financing options		160,500
Operations and maintenance expense		20,100
Total amount		$ 385,600
BPU | NJNG | Subsequent Event
Schedule of Regulatory Filings [Line Items]
Approved rate increase (decrease), amount	$ 157,000
BPU | NJNG
Schedule of Regulatory Filings [Line Items]
Weighted average cost of capital											7.57%
Approved return on equity											10.42%
Approved rate increase (decrease), amount				$ 4,700	$ 219,900				$ 219,600		$ 222,600				3,200
Annual recovery increase							$ 6,800										$ 700
BGSS | NJNG
Schedule of Regulatory Filings [Line Items]
Requested rate increase (decrease), amount				(31,000)										$ (38,600)
BGSS | NJNG
Schedule of Regulatory Filings [Line Items]
Interim rate increase (decrease), amount																			$ (29,900)				$ (32,400)
BGSS Balancing | NJNG
Schedule of Regulatory Filings [Line Items]
Requested rate increase (decrease), amount				40,300										(7,400)
Conservation Incentive Program | NJNG
Schedule of Regulatory Filings [Line Items]
Requested rate increase (decrease), amount				$ (800)										$ 27,000
RAC
Schedule of Regulatory Filings [Line Items]
Approved rate increase (decrease), amount			$ 2,400												2,400
NJCEP
Schedule of Regulatory Filings [Line Items]
Approved rate increase (decrease), amount			$ 1,600												$ 5,500
Infrastructure Investment Program (IIP) | NJNG
Schedule of Regulatory Filings [Line Items]
Program recovery term																					5 years	5 years
Number of project components | projectComponent																						2
Public utilities, investments																					$ 150,000	$ 507,000

XML

REGULATION - REGULATORY ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory assets-current	$ 73,070	$ 73,587
Regulatory assets-noncurrent	609,192	584,830
Regulatory liability-current	32,981	32,287
Regulatory liabilities-noncurrent	175,847	180,458
NJNG
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory assets-current	73,070	73,587
Regulatory assets-noncurrent	604,097	579,599
Regulatory liability-current	32,457	30,637
Regulatory liabilities-noncurrent	175,847	180,458
Adelphia
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory assets-noncurrent	5,095	5,231
Regulatory liability-current	524	1,650
Derivatives at fair value, net | NJNG
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory liabilities-noncurrent	404	0
Overrecovered natural gas costs | NJNG
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory liability-current	32,457	30,637
Tax Act impact | NJNG
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory liabilities-noncurrent	175,328	180,347
Other noncurrent regulatory liabilities | NJNG
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory liabilities-noncurrent	115	111
New Jersey Clean Energy Program | NJNG
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory assets-current	18,491	15,804
Conservation Incentive Program | NJNG
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory assets-current	51,442	50,356
Derivatives at fair value, net | NJNG
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory assets-current	1,363	6,017
Other current regulatory assets | NJNG
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory assets-current	1,774	1,410
Regulatory assets-noncurrent	59,924	51,019
Expended, net of recoveries
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory assets-noncurrent	77,500
Expended, net of recoveries | NJNG
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory assets-noncurrent	77,475	66,298
Liability for future expenditures | NJNG
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory assets-noncurrent	161,650	169,390
Deferred income taxes | NJNG
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory assets-noncurrent	42,595	41,667
SAVEGREEN | NJNG
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory assets-noncurrent	107,796	83,589
Postemployment and other benefit costs | NJNG
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory assets-noncurrent	23,772	55,274
Cost of removal | NJNG
Schedule of Regulatory Assets and Liabilities [Line Items]
Regulatory assets-noncurrent	$ 130,885	$ 112,362

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DERIVATIVE INSTRUMENTS - BALANCE SHEET RELATED DISCLOSURES (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023
Fair Value
Derivative assets, current	$ 6,813	$ 30,755
Derivative liability, current	6,271	16,145
Derivative assets, noncurrent	806	1,564
Derivative liabilities, noncurrent	11,490	7,967
Not Designated as Hedging Instrument
Fair Value
Derivative assets	7,619	32,319
Derivative liabilities	17,761	24,112
NJNG | Not Designated as Hedging Instrument | Physical commodity contracts
Fair Value
Derivative assets, current	21	43
Derivative liability, current	579	488
NJNG | Not Designated as Hedging Instrument | Financial commodity contracts
Fair Value
Derivative assets, current	0	6,110
Derivative liability, current	2	20
ES | Not Designated as Hedging Instrument | Physical commodity contracts
Fair Value
Derivative assets, current	1,660	6,209
Derivative liability, current	4,346	12,757
Derivative assets, noncurrent	727	802
Derivative liabilities, noncurrent	10,758	7,870
ES | Not Designated as Hedging Instrument | Financial commodity contracts
Fair Value
Derivative assets, current	5,132	18,393
Derivative liability, current	1,344	2,880
Derivative assets, noncurrent	79	762
Derivative liabilities, noncurrent	$ 732	$ 97

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DERIVATIVE INSTRUMENTS - OFFSETTING OF ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023
ES
Asset Derivatives
Fair Value	$ 7,598	$ 26,166
Amounts Offset	(2,611)	(4,213)
Collateral Received/Pledged	(1,170)	(16,178)
Net Value	3,817	5,775
Liability Derivatives
Fair Value	17,180	23,604
Amounts Offset	(2,611)	(4,213)
Collateral Received/Pledged	(5,551)	(9,728)
Net Value	9,018	9,663
ES | Physical commodity contracts
Asset Derivatives
Fair Value	2,387	7,011
Amounts Offset	(535)	(1,236)
Collateral Received/Pledged	0	0
Net Value	1,852	5,775
Liability Derivatives
Fair Value	15,104	20,627
Amounts Offset	(535)	(1,236)
Collateral Received/Pledged	(5,551)	(9,728)
Net Value	9,018	9,663
ES | Financial commodity contracts
Asset Derivatives
Fair Value	5,211	19,155
Amounts Offset	(2,076)	(2,977)
Collateral Received/Pledged	(1,170)	(16,178)
Net Value	1,965	0
Liability Derivatives
Fair Value	2,076	2,977
Amounts Offset	(2,076)	(2,977)
Collateral Received/Pledged	0	0
Net Value	0	0
NJNG
Asset Derivatives
Fair Value	21	6,153
Amounts Offset	(13)	(23)
Collateral Received/Pledged	0	0
Net Value	8	6,130
Liability Derivatives
Fair Value	581	508
Amounts Offset	(13)	(23)
Collateral Received/Pledged	(2)	0
Net Value	566	485
NJNG | Physical commodity contracts
Asset Derivatives
Fair Value	21	43
Amounts Offset	(13)	(3)
Collateral Received/Pledged	0	0
Net Value	8	40
Liability Derivatives
Fair Value	579	488
Amounts Offset	(13)	(3)
Collateral Received/Pledged	0	0
Net Value	566	485
NJNG | Financial commodity contracts
Asset Derivatives
Fair Value	0	6,110
Amounts Offset	0	(20)
Collateral Received/Pledged	0	0
Net Value	0	6,090
Liability Derivatives
Fair Value	2	20
Amounts Offset	0	(20)
Collateral Received/Pledged	(2)	0
Net Value	$ 0	$ 0

XML

DERIVATIVE INSTRUMENTS - INCOME STATEMENT RELATED DISCLOSURES (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	$ 21,401	$ 107,170	$ 9,400
ES | Physical commodity contracts | Operating revenues
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Nonutility	Nonutility	Nonutility
Amount of gain (loss) recognized in income on derivatives	$ 12,070	$ 33,610	$ (8,569)
ES | Physical commodity contracts | Natural gas purchases
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Gas purchases - Utility and Nonutility	Gas purchases - Utility and Nonutility	Gas purchases - Utility and Nonutility
Amount of gain (loss) recognized in income on derivatives	$ (2,391)	$ (6,846)	$ 3,580
ES | Financial commodity contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	11,722	80,406	14,403
ES | Foreign currency contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	0	0	(14)
NJNG
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	5,849	(84,371)	39,984
NJNG | Physical commodity contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	(5,215)	(34,241)	7,116
NJNG | Financial commodity contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount of gain (loss) recognized in income on derivatives	$ 11,064	$ (50,130)	$ 32,868

XML

DERIVATIVE INSTRUMENTS - ADDITIONAL INFORMATION (Details) certificate in Millions, $ in Millions	Sep. 30, 2024 USD ($) certificate	Sep. 30, 2023 USD ($) certificate
Derivative [Line Items]
Derivative, net liability position, aggregate fair value | $	$ 0.0	$ 0.0
Physical commodity contracts | ES
Derivative [Line Items]
Number of SRECs (in certificates) | certificate	1.2	1.3

XML

DERIVATIVE INSTRUMENTS - VOLUME (Details) - Bcf	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
NJNG | Long | Futures
Derivative [Line Items]
Notional amount	31.9	32.1
NJNG | Long | Physical commodity contracts
Derivative [Line Items]
Notional amount	10.9	12.1
ES | Long | Physical commodity contracts
Derivative [Line Items]
Notional amount	2.8	0.2
ES | Short | Futures
Derivative [Line Items]
Notional amount	(7.7)	(6.9)

XML

DERIVATIVE INSTRUMENTS - BROKER MARGIN DEPOSITS (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023
NJNG | Assets, Current
Derivative [Line Items]
Broker margin - current assets	$ 4,975	$ 5,915
ES | Assets, Current
Derivative [Line Items]
Broker margin - current assets	8,268	14,881
ES | Liabilities, Current
Derivative [Line Items]
Broker margin - current liabilities	$ 1,146	$ 8,029

XML

DERIVATIVE INSTRUMENTS - CREDIT RISK EXPOSURE (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2024 USD ($)
Credit Derivatives [Line Items]
Gross Credit Exposure	$ 138,289
Investment grade
Credit Derivatives [Line Items]
Gross Credit Exposure	97,403
Noninvestment grade
Credit Derivatives [Line Items]
Gross Credit Exposure	7,343
Internally-rated investment grade
Credit Derivatives [Line Items]
Gross Credit Exposure	16,168
Internally-rated noninvestment grade
Credit Derivatives [Line Items]
Gross Credit Exposure	$ 17,375

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FAIR VALUE - DEBT (Details) - Level 2 - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023
NJNG | Carrying value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	$ 1,647,845	$ 1,467,845
NJNG | Fair market value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	1,439,849	1,097,088
NJR | Carrying value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	1,120,000	1,120,000
NJR | Fair market value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	$ 1,085,955	$ 1,009,448

XML

FAIR VALUE - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions	Sep. 30, 2024	Sep. 30, 2023
NJNG
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Natural gas meter sale leasebacks	$ 31.6	$ 31.4
Level 2 | NJNG
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Natural gas meter sale leasebacks	26.7	20.9
Solar Asset Financing | CEV
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt	283.0	278.4
Solar Asset Financing | Fair market value | CEV
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, fair value	$ 290.4	$ 268.1

XML

FAIR VALUE - HIERARCHY (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023
Liabilities
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Assets
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Liabilities and Equity
Fair Value, Measurements, Recurring
Assets
Other	$ 2,671	$ 2,641
Total assets at fair value	10,352	35,105
Liabilities
Total liabilities at fair value	17,761	24,112
Fair Value, Measurements, Recurring | Money market funds
Assets
Assets	62	145
Fair Value, Measurements, Recurring | Physical commodity contracts
Assets
Assets	2,408	7,054
Liabilities
liabilities	15,683	21,115
Fair Value, Measurements, Recurring | Financial commodity contracts
Assets
Assets	5,211	25,265
Liabilities
liabilities	2,078	2,997
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Other	2,671	2,641
Total assets at fair value	7,944	28,051
Liabilities
Total liabilities at fair value	2,078	2,997
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds
Assets
Assets	62	145
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Physical commodity contracts
Assets
Assets	0	0
Liabilities
liabilities	0	0
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Financial commodity contracts
Assets
Assets	5,211	25,265
Liabilities
liabilities	2,078	2,997
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2)
Assets
Other	0	0
Total assets at fair value	2,408	7,054
Liabilities
Total liabilities at fair value	15,683	21,115
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Money market funds
Assets
Assets	0	0
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Physical commodity contracts
Assets
Assets	2,408	7,054
Liabilities
liabilities	15,683	21,115
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Financial commodity contracts
Assets
Assets	0	0
Liabilities
liabilities	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3)
Assets
Other	0	0
Total assets at fair value	0	0
Liabilities
Total liabilities at fair value	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Money market funds
Assets
Assets	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Physical commodity contracts
Assets
Assets	0	0
Liabilities
liabilities	0	0
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Financial commodity contracts
Assets
Assets	0	0
Liabilities
liabilities	$ 0	$ 0

XML

INVESTMENTS IN EQUITY INVESTEES (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023
Schedule of Equity Method Investments [Line Items]
Investments in equity investees	$ 101,744	$ 104,134
Steckman Ridge
Schedule of Equity Method Investments [Line Items]
Ownership percentage	50.00%
Investments in equity investees	$ 101,700	104,100
Steckman Ridge | Related Party
Schedule of Equity Method Investments [Line Items]
Total outstanding principal balance of loans	$ 70,400	$ 70,400

XML

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Earnings Per Share [Abstract]
Net income	$ 289,775	$ 264,724	$ 274,922
Basic earnings per share
Weighted average shares of common stock outstanding-basic (in shares)	98,634	97,028	96,100
Basic earnings per common share (usd per share)	$ 2.94	$ 2.73	$ 2.86
Diluted earnings per share
Weighted average shares of common stock outstanding-basic (in shares)	98,634	97,028	96,100
Incremental shares (in shares)	655	599	388
Weighted average shares of common stock outstanding-diluted (in shares)	99,289	97,627	96,488
Diluted earnings per common share (usd per share)	$ 2.92	$ 2.71	$ 2.85

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DEBT - SCHEDULE OF LONG-TERM DEBT (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023
Debt Instrument [Line Items]
Meter financing obligation	$ 16,026	$ 22,875
Total long-term debt	2,879,464	2,768,017
NJNG
Debt Instrument [Line Items]
Less: Debt issuance costs	(10,899)	(9,770)
Less: Current maturities of long-term debt	(58,649)	(78,477)
Total long-term debt	1,609,871	1,410,950
NJR
Debt Instrument [Line Items]
Less: Debt issuance costs	(3,011)	(3,656)
Less: Current maturities of long-term debt	(100,000)	0
Total long-term debt	1,016,989	1,116,344
CEV
Debt Instrument [Line Items]
Long-term debt	282,962	278,401
Less: Current maturities of long-term debt	(30,358)	(37,678)
Total CEV long-term debt	252,604	240,723
Meter financing obligation | NJNG
Debt Instrument [Line Items]
Meter financing obligation	$ 31,574	31,352
First Mortgage Bonds | Series OO | NJNG
Debt Instrument [Line Items]
Stated interest rate	3.00%
Long-term debt	$ 46,500	46,500
First Mortgage Bonds | Series PP | NJNG
Debt Instrument [Line Items]
Stated interest rate	3.15%
Long-term debt	$ 50,000	50,000
First Mortgage Bonds | Series QQ | NJNG
Debt Instrument [Line Items]
Stated interest rate	3.58%
Long-term debt	$ 0	70,000
First Mortgage Bonds | Series RR | NJNG
Debt Instrument [Line Items]
Stated interest rate	4.61%
Long-term debt	$ 55,000	55,000
First Mortgage Bonds | Series SS | NJNG
Debt Instrument [Line Items]
Stated interest rate	2.82%
Long-term debt	$ 50,000	50,000
First Mortgage Bonds | Series TT | NJNG
Debt Instrument [Line Items]
Stated interest rate	3.66%
Long-term debt	$ 100,000	100,000
First Mortgage Bonds | Series UU | NJNG
Debt Instrument [Line Items]
Stated interest rate	3.63%
Long-term debt	$ 125,000	125,000
First Mortgage Bonds | Series VV | NJNG
Debt Instrument [Line Items]
Stated interest rate	4.01%
Long-term debt	$ 125,000	125,000
First Mortgage Bonds | Series WW | NJNG
Debt Instrument [Line Items]
Stated interest rate	3.50%
Long-term debt	$ 10,300	10,300
First Mortgage Bonds | Series XX | NJNG
Debt Instrument [Line Items]
Stated interest rate	3.38%
Long-term debt	$ 10,500	10,500
First Mortgage Bonds | Series YY | NJNG
Debt Instrument [Line Items]
Stated interest rate	2.45%
Long-term debt	$ 15,000	15,000
First Mortgage Bonds | Series ZZ | NJNG
Debt Instrument [Line Items]
Stated interest rate	3.76%
Long-term debt	$ 100,000	100,000
First Mortgage Bonds | Series AAA | NJNG
Debt Instrument [Line Items]
Stated interest rate	3.86%
Long-term debt	$ 85,000	85,000
First Mortgage Bonds | Series BBB | NJNG
Debt Instrument [Line Items]
Stated interest rate	2.75%
Long-term debt	$ 9,545	9,545
First Mortgage Bonds | Series CCC | NJNG
Debt Instrument [Line Items]
Stated interest rate	3.00%
Long-term debt	$ 41,000	41,000
First Mortgage Bonds | Series DDD | NJNG
Debt Instrument [Line Items]
Stated interest rate	3.13%
Long-term debt	$ 50,000	50,000
First Mortgage Bonds | Series EEE | NJNG
Debt Instrument [Line Items]
Stated interest rate	3.13%
Long-term debt	$ 50,000	50,000
First Mortgage Bonds | Series FFF | NJNG
Debt Instrument [Line Items]
Stated interest rate	3.33%
Long-term debt	$ 25,000	25,000
First Mortgage Bonds | Series GGG | NJNG
Debt Instrument [Line Items]
Stated interest rate	2.87%
Long-term debt	$ 25,000	25,000
First Mortgage Bonds | Series HHH | NJNG
Debt Instrument [Line Items]
Stated interest rate	2.97%
Long-term debt	$ 50,000	50,000
First Mortgage Bonds | Series III | NJNG
Debt Instrument [Line Items]
Stated interest rate	2.97%
Long-term debt	$ 50,000	50,000
First Mortgage Bonds | Series JJJ | NJNG
Debt Instrument [Line Items]
Stated interest rate	3.07%
Long-term debt	$ 50,000	50,000
First Mortgage Bonds | Series LLL | NJNG
Debt Instrument [Line Items]
Stated interest rate	4.37%
Long-term debt	$ 50,000	50,000
First Mortgage Bonds | Series MMM | NJNG
Debt Instrument [Line Items]
Stated interest rate	4.71%
Long-term debt	$ 50,000	50,000
First Mortgage Bonds | Series NNN | NJNG
Debt Instrument [Line Items]
Stated interest rate	5.47%
Long-term debt	$ 125,000	125,000
First Mortgage Bonds | Series OOO | NJNG
Debt Instrument [Line Items]
Stated interest rate	5.56%
Long-term debt	$ 50,000	50,000
First Mortgage Bonds | Series PPP | NJNG
Debt Instrument [Line Items]
Stated interest rate	5.85%
Long-term debt	$ 50,000	0
First Mortgage Bonds | Series QQQ | NJNG
Debt Instrument [Line Items]
Stated interest rate	5.82%
Long-term debt	$ 125,000	0
First Mortgage Bonds | Series RRR | NJNG
Debt Instrument [Line Items]
Stated interest rate	5.49%
Long-term debt	$ 75,000	0
Unsecured senior notes 3.48% | NJR
Debt Instrument [Line Items]
Stated interest rate	3.48%
Long-term debt	$ 100,000	100,000
Unsecured senior notes 3.54% | NJR
Debt Instrument [Line Items]
Stated interest rate	3.54%
Long-term debt	$ 100,000	100,000
Unsecured senior notes 3.96% | NJR
Debt Instrument [Line Items]
Stated interest rate	3.96%
Long-term debt	$ 100,000	100,000
Unsecured senior notes 3.29% | NJR
Debt Instrument [Line Items]
Stated interest rate	3.29%
Long-term debt	$ 150,000	150,000
Unsecured senior note 3.50% | NJR
Debt Instrument [Line Items]
Stated interest rate	3.50%
Long-term debt	$ 130,000	130,000
Unsecured senior note 3.60% | NJR
Debt Instrument [Line Items]
Stated interest rate	3.60%
Long-term debt	$ 130,000	130,000
Unsecured senior note 3.13% | NJR
Debt Instrument [Line Items]
Stated interest rate	3.13%
Long-term debt	$ 120,000	120,000
Unsecured senior notes 3.25% | NJR
Debt Instrument [Line Items]
Stated interest rate	3.25%
Long-term debt	$ 80,000	80,000
Unsecured Senior Notes 4.38% | NJR
Debt Instrument [Line Items]
Stated interest rate	4.38%
Long-term debt	$ 110,000	110,000
Unsecured Senior Notes 3.64% | NJR
Debt Instrument [Line Items]
Stated interest rate	3.64%
Long-term debt	$ 50,000	50,000
Unsecured Senior Notes 6.14%, Maturing In 2032 | NJR
Debt Instrument [Line Items]
Stated interest rate	6.14%
Long-term debt	$ 50,000	$ 50,000

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DEBT - REDEMPTION REQUIREMENTS (Details) $ in Thousands	Sep. 30, 2024 USD ($)
NJR
Debt Instrument [Line Items]
2025	$ 100,000
2026	100,000
2027	110,000
2028	100,000
2029	150,000
Thereafter	560,000
NJNG
Debt Instrument [Line Items]
2025	50,000
2026	0
2027	0
2028	50,000
2029	0
Thereafter	$ 1,547,845

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DEBT - NJR AND NJNG LONG-TERM DEBT (Details) - USD ($) $ in Millions	Nov. 07, 2024	Sep. 30, 2024	Jun. 26, 2024	Sep. 28, 2023
NJNG
Debt Instrument [Line Items]
NJBPU dividend restriction, equity to capitalization ratio		53.40%
Minimum | NJNG
Debt Instrument [Line Items]
NJBPU dividend restriction, equity to capitalization ratio		30.00%
First Mortgage Bonds | NJNG
Debt Instrument [Line Items]
Maximum amount that can be issued		$ 1,400.0
Senior Notes | NJNG
Debt Instrument [Line Items]
Face amount			$ 200.0	$ 100.0
Senior Notes | Unsecured Senior Notes 5.56% | NJNG
Debt Instrument [Line Items]
Face amount				$ 50.0
Stated interest rate				5.56%
Senior Notes | Unsecured Senior Notes 5.58% | NJNG
Debt Instrument [Line Items]
Face amount				$ 50.0
Stated interest rate				5.85%
Senior Notes | Unsecured Senior Notes 5.82% | NJNG
Debt Instrument [Line Items]
Face amount			$ 125.0
Stated interest rate			5.82%
Senior Notes | Unsecured Senior Notes 5.49% | NJNG
Debt Instrument [Line Items]
Face amount			$ 75.0
Stated interest rate			5.49%
Senior Notes | Subsequent Event | Unsecured Senior Notes 5.55% | NJR
Debt Instrument [Line Items]
Face amount	$ 100.0
Stated interest rate	5.55%

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DEBT - SALE-LEASEBACKS (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Debt Instrument [Line Items]
Proceeds from sale leaseback transaction	$ 8,814	$ 8,441	$ 17,300
Minimum | Meter License
Debt Instrument [Line Items]
Term of contract	6 years
Maximum | Meter License
Debt Instrument [Line Items]
Term of contract	10 years
NJNG
Debt Instrument [Line Items]
Proceeds from sale leaseback transaction	$ 8,800	$ 8,400

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DEBT - CONTRACTUAL COMMITMENTS (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Finance Leases
2025	$ 8,169
2026	6,411
2027	4,083
2028	4,715
2029	1,676
Thereafter	0
Total future payments	25,054
Less: Interest component	(1,494)
Total liability	23,560
NJNG
Finance Leases
2025	9,665
2026	7,906
2027	5,579
2028	6,211
2029	3,171
Thereafter	1,852
Total future payments	34,384
Less: Interest component	(2,810)
Total liability	31,574
CEV
Sale Leaseback Transaction, Net Book Value
2025	57,184
2026	20,396
2027	22,907
2028	34,293
2029	81,586
Thereafter	32,610
Subtotal	248,976
Less: Interest component	(43,234)
Total	$ 205,742

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DEBT - CLEAN ENERGY VENTURES (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Debt Instrument [Line Items]
Proceeds from sale leaseback transactions - solar	$ 64,694	$ 167,790	$ 24,071
CEV
Debt Instrument [Line Items]
Proceeds from sale leaseback transactions - solar	$ 64,700	$ 167,800
Minimum | CEV
Debt Instrument [Line Items]
Sale leaseback transaction lease term	5 years
Maximum | CEV
Debt Instrument [Line Items]
Sale leaseback transaction lease term	7 years

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DEBT - CREDIT FACILITIES AND SHORT-TERM DEBT (Details) - USD ($)	12 Months Ended
	Sep. 30, 2024	Aug. 07, 2024	Sep. 30, 2023
Letter of Credit | NJR bank revolving credit facility
Short-term Debt [Line Items]
Letters of credit outstanding, amount	$ 12,300,000		$ 5,700,000
Letter of Credit | NJNG bank revolving credit facility
Short-term Debt [Line Items]
Letters of credit outstanding, amount	$ 700,000		700,000
Revolving Credit Facility | NJR bank revolving credit facility
Short-term Debt [Line Items]
Commitment fee percentage	0.10%
Revolving Credit Facility | NJNG bank revolving credit facility
Short-term Debt [Line Items]
Commitment fee percentage	0.075%
Revolving Credit Facility | Committed Credit Facilities Due August 2029 | NJR bank revolving credit facility
Short-term Debt [Line Items]
Total borrowing capacity	$ 575,000,000	$ 575,000,000
Loans outstanding	$ 236,700,000
Weighted average interest rate	6.23%
Remaining borrowing capacity	$ 325,951,000
Revolving Credit Facility | Committed Credit Facilities Due August 2029 | NJNG bank revolving credit facility
Short-term Debt [Line Items]
Total borrowing capacity	250,000,000	$ 250,000,000
Loans outstanding	$ 55,100,000
Weighted average interest rate	4.98%
Remaining borrowing capacity	$ 194,169,000
Revolving Credit Facility | Committed Credit Facilities Due September 2027 | NJR bank revolving credit facility
Short-term Debt [Line Items]
Total borrowing capacity			650,000,000
Loans outstanding			$ 217,300,000
Weighted average interest rate			6.53%
Remaining borrowing capacity			$ 426,967,000
Revolving Credit Facility | Committed Credit Facilities Due September 2027 | NJNG bank revolving credit facility
Short-term Debt [Line Items]
Total borrowing capacity			250,000,000
Loans outstanding			$ 34,800,000
Weighted average interest rate			5.48%
Remaining borrowing capacity			$ 214,469,000

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DEBT - NJR SHORT-TERM DEBT (Details) - NJR	Sep. 30, 2024 USD ($) debtInstrument	Aug. 07, 2024 USD ($)	Sep. 30, 2023 USD ($)
Letter of Credit
Short-term Debt [Line Items]
Number of debt instruments (in debt instruments) | debtInstrument	11
Letters of credit outstanding, amount	$ 12,300,000		$ 5,700,000
Revolving Credit Facility
Short-term Debt [Line Items]
Line of credit facility, maximum borrowing capacity, incremental increase		$ 50,000,000
Line of credit facility, maximum borrowing capacity, maximum increase		750,000,000
Line of Credit
Short-term Debt [Line Items]
Line of credit facility, maximum borrowing capacity, maximum increase		75,000,000
Committed Credit Facilities Due August 2029 | Revolving Credit Facility
Short-term Debt [Line Items]
Line of credit facility, maximum borrowing capacity	$ 575,000,000	$ 575,000,000
Committed Credit Facilities Due September 2027 | Revolving Credit Facility
Short-term Debt [Line Items]
Line of credit facility, maximum borrowing capacity			$ 650,000,000

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DEBT - NJNG SHORT-TERM DEBT (Details) - NJNG	Sep. 30, 2024 USD ($) debtInstrument	Aug. 07, 2024 USD ($)	Sep. 30, 2023 USD ($)
Letter of Credit
Line of Credit Facility [Line Items]
Number of debt instruments (in debt instruments) | debtInstrument	2
Letters of credit outstanding, amount	$ 700,000		$ 700,000
Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity, incremental increase		$ 50,000,000
Line of credit facility, maximum borrowing capacity, maximum increase		350,000,000
Line of Credit
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity, maximum increase		30,000,000
Committed Credit Facilities Due August 2029 | Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 250,000,000	$ 250,000,000

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STOCK-BASED COMPENSATION - NARRATIVE (Details) - USD ($) $ in Millions		12 Months Ended
	Apr. 25, 2024	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future issuance (in shares)		2,620,389
Performance Shares, Market Condition Award
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted but not issued (in shares)		54,693	39,614	44,965
Performance Shares, Subject to Performance Conditions
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted but not issued (in shares)		88,107	73,047	73,561
Deferred compensation related to unvested performance shares, period		1 year 8 months 12 days
Performance Shares, Subject to Performance Conditions | Vesting September 30, 2026
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted but not issued (in shares)		50,504
Performance Shares, Subject to Performance Conditions | Vesting Annually Over Three Year Period Beginning September 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted but not issued (in shares)		37,603
Award vesting period		3 years
Performance Shares, Subject to Performance Conditions | Vesting September 30, 2025
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted but not issued (in shares)			42,449
Performance Shares, Subject to Performance Conditions | Vesting Annually Over Three Year Period Beginning September 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted but not issued (in shares)			30,598
Award vesting period			3 years
Performance Shares, Subject to Performance Conditions | Vesting September 30, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted but not issued (in shares)				44,596
Performance Shares, Subject to Performance Conditions | Vesting Annually Over Three Year Period Beginning September 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted but not issued (in shares)				28,965
Award vesting period				3 years
Performance share awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted but not issued (in shares)		218,959	190,255	192,121	166,091
Deferred compensation related to unvested restricted and performance shares		$ 6.0
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted but not issued (in shares)		125,500	108,876	97,824	101,621
Deferred compensation related to unvested restricted and performance shares		$ 1.7
Deferred compensation related to unvested performance shares, period		1 year 9 months 18 days
Restricted Stock | Vesting Annually Over Three Year Period Beginning October 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted but not issued (in shares)		67,522
Award vesting period				3 years
Restricted Stock | Vesting Annually Over Three Year Period Beginning October 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted but not issued (in shares)			64,080
Award vesting period		3 years
Restricted Stock | Vesting Annually Over Three Year Period Beginning October 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted but not issued (in shares)				54,826
Award vesting period			3 years
Restricted Stock | Vesting Annually Over Three Year Period Beginning April 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted but not issued (in shares)	3,465
Award vesting period	3 years

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STOCK-BASED COMPENSATION - STOCK-BASED COMPENSATION EXPENSE (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense included in operation and maintenance expense	$ 16,028	$ 14,716	$ 14,827
Income tax benefit	(3,898)	(3,563)	(3,624)
Total, net of tax	12,130	11,153	11,203
Taxes related to stock-based compensation	1,219	588	144
Performance share awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense included in operation and maintenance expense	5,437	4,882	4,131
Restricted and non-restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense included in operation and maintenance expense	3,958	3,647	3,189
Deferred retention stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense included in operation and maintenance expense	$ 6,633	$ 6,187	$ 7,507

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STOCK-BASED COMPENSATION - PERFORMANCE SHARES AND RESTRICTED STOCK ACTIVITY (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022	Nov. 06, 2024	Nov. 15, 2023	Nov. 09, 2022
Performance share awards
Shares
Outstanding at beginning of period (in shares)	190,255	192,121	166,091
Granted (in shares)	142,800	112,661	118,526
Vested (in shares)	(112,183)	(105,197)	(76,708)
Cancelled/forfeited (in shares)	(1,913)	(9,330)	(15,788)
Outstanding at end of period (in shares)	218,959	190,255	192,121
Weighted Average Grant Date Fair Value
Outstanding at beginning of period (in dollars per share)	$ 42.60	$ 36.29	$ 36.08
Granted (in dollars per share)	42.55	46.00	38.84
Vested (in dollars per share)	39.91	35.07	39.57
Cancelled/forfeited (in dollars per share)	43.83	38.64	37.33
Outstanding at end of period (in dollars per share)	$ 43.93	$ 42.60	$ 36.29
Total Fair Value of Vested Shares
Total Fair Value of Vested Shares	$ 5,271	$ 4,126	$ 2,765
Percent of awards to common stock					150.00%	105.00%
Number of common shares issued (in shares)					55,832	26,282
Percent of awards to common stock, target					100.00%	100.00%
Performance share awards | Subsequent Event
Total Fair Value of Vested Shares
Percent of awards to common stock				124.00%
Number of common shares issued (in shares)				49,269
Percent of awards to common stock, target				100.00%
Performance share awards | Minimum
Total Fair Value of Vested Shares
Percent of awards to common stock	0.00%
Performance share awards | Maximum
Total Fair Value of Vested Shares
Percent of awards to common stock	150.00%
Performance Shares, TSR
Total Fair Value of Vested Shares
Percent of awards to common stock					150.00%	112.00%
Number of common shares issued (in shares)					59,192	30,472
Performance Shares, TSR | Subsequent Event
Total Fair Value of Vested Shares
Percent of awards to common stock				150.00%
Number of common shares issued (in shares)				60,092
Performance-based Restricted Stock
Total Fair Value of Vested Shares
Percent of awards to common stock					100.00%	100.00%
Number of common shares issued (in shares)					30,598	28,965
Performance-based Restricted Stock | Subsequent Event
Total Fair Value of Vested Shares
Percent of awards to common stock				100.00%
Number of common shares issued (in shares)				37,603
Restricted Stock
Shares
Outstanding at beginning of period (in shares)	108,876	97,824	101,621
Granted (in shares)	70,987	64,080	54,826
Vested (in shares)	(53,393)	(48,312)	(47,867)
Cancelled/forfeited (in shares)	(970)	(4,716)	(10,756)
Outstanding at end of period (in shares)	125,500	108,876	97,824
Weighted Average Grant Date Fair Value
Outstanding at beginning of period (in dollars per share)	$ 41.55	$ 36.90	$ 36.87
Granted (in dollars per share)	42.59	46.00	38.84
Vested (in dollars per share)	39.74	40.30	39.01
Cancelled/forfeited (in dollars per share)	44.52	38.77	37.06
Outstanding at end of period (in dollars per share)	$ 42.89	$ 41.55	$ 36.90
Total Fair Value of Vested Shares
Total Fair Value of Vested Shares	$ 2,256	$ 1,910	$ 1,824

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STOCK-BASED COMPENSATION - DEFERRED RETENTION STOCK/NON-EMPLOYEE DIRECTOR STOCK (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Scheduled to Vest Immediately | Director
Shares
Granted (in shares)	29,996	24,044	30,908
Weighted Average Grant Date Fair Value
Granted (in dollars per share)	$ 41.67	$ 49.58	$ 39.09
Deferred retention stock
Shares
Outstanding at beginning of period (in shares)	328,093	231,267	208,856
Granted/Vested (in shares)	155,188	134,941	192,728
Delivered (in shares)	(5,089)	(38,115)	(163,499)
Forfeited (in shares)	(235)		(6,818)
Outstanding at end of period (in shares)	477,957	328,093	231,267
Weighted Average Grant Date Fair Value
Outstanding at beginning of period (in dollars per share)	$ 41.74	$ 39.16	$ 46.28
Granted (in dollars per share)	42.55	45.85	38.95
Vested (in dollars per share)	42.55	45.85	38.95
Delivered (in dollars per share)	35.86	40.67	47.95
Forfeited (in dollars per share)	42.55		40.33
Outstanding at end of period (in dollars per share)	$ 42.07	$ 41.74	$ 39.16
Total Fair Value of Vested Shares
Delivered	$ 213	$ 1,517	$ 6,167

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EMPLOYEE BENEFIT PLANS - PENSION AND OTHER POSTEMPLOYMENT BENEFIT PLANS, NARRATIVE (Details)	12 Months Ended
	Sep. 30, 2024 USD ($) plan	Sep. 30, 2023 USD ($)
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Number of noncontributory defined benefit retirement plans (in plans) | plan	2
Required number of years of service (more than)	1 year
Years of service and average compensation, basis period for plan benefits	60 months
Amortization period for plan amendment	8 years
Pension
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Employer discretionary contributions	$ 0	$ 0
Employer contributions	535,000	579,000
OPEB
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Employer contributions	7,846,000	$ 4,192,000
OPEB | Minimum
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Estimated future employer contributions over the next five years	5,000,000
OPEB | Maximum
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Estimated future employer contributions over the next five years	$ 10,000,000

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EMPLOYEE BENEFIT PLANS - SUMMARY OF CHANGE IN FUNDED STATUS AND LIABILITIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Postemployment employee benefit asset
Noncurrent	$ 24,660	$ 18,684
Postemployment employee benefit liability
Noncurrent	(64,609)	(102,528)
Pension
Change in Benefit Obligation
Benefit obligation at beginning of year	290,321	290,823
Service cost	4,976	5,402	$ 8,291
Interest cost	16,240	15,174	9,632
Plan amendments	0	0
Plan participants’ contributions	27	32
Actuarial loss (gain)	36,863	(7,057)
Benefits paid, net of retiree subsidies received	(14,895)	(14,053)
Benefit obligation at end of year	333,532	290,321	290,823
Change in plan assets
Fair value of plan assets at beginning of year	298,361	284,347
Actual return on plan assets	58,682	27,456
Employer contributions	535	579
Benefits paid, net of plan participants’ contributions	(14,868)	(14,021)
Fair value of plan assets at end of year	342,710	298,361	284,347
Funded status	9,178	8,040
Postemployment employee benefit asset
Noncurrent	21,104	18,684
Postemployment employee benefit liability
Current	(552)	(538)
Noncurrent	(11,374)	(10,106)
Total	9,178	8,040
OPEB
Change in Benefit Obligation
Benefit obligation at beginning of year	203,406	173,217
Service cost	1,406	2,471	4,305
Interest cost	8,327	9,146	6,355
Plan amendments	(79,881)	0
Plan participants’ contributions	703	552
Actuarial loss (gain)	54,518	25,363
Benefits paid, net of retiree subsidies received	(6,679)	(7,343)
Benefit obligation at end of year	181,800	203,406	173,217
Change in plan assets
Fair value of plan assets at beginning of year	106,783	99,736
Actual return on plan assets	21,249	9,826
Employer contributions	7,846	4,192
Benefits paid, net of plan participants’ contributions	(6,157)	(6,971)
Fair value of plan assets at end of year	129,721	106,783	$ 99,736
Funded status	(52,079)	(96,623)
Postemployment employee benefit asset
Noncurrent	3,556	0
Postemployment employee benefit liability
Current	(2,400)	(4,201)
Noncurrent	(53,235)	(92,422)
Total	$ (52,079)	$ (96,623)

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EMPLOYEE BENEFIT PLANS - REGULATORY ASSETS AND AOCI (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Pension
Amounts amortized to net periodic costs:
Net actuarial gain (loss)	$ (117)	$ (300)	$ (8,745)
Prior service (cost) credit	(61)	(103)	(101)
Pension | Regulatory Assets
Regulatory Assets and Accumulated Other Comprehensive Income (Loss)
Amounts arising during the period, Net actuarial (gain) loss	(2,407)	(10,493)
Amounts arising during the period, Prior service (credit)	0
Amounts amortized to net periodic costs:
Net actuarial gain (loss)	2	(87)
Prior service (cost) credit	(61)	(103)
Pension | Accumulated Other Comprehensive Income (Loss)
Regulatory Assets and Accumulated Other Comprehensive Income (Loss)
Amounts arising during the period, Net actuarial (gain) loss	934	(4,048)
Amounts arising during the period, Prior service (credit)	0
Amounts amortized to net periodic costs:
Net actuarial gain (loss)	(119)	(213)
Prior service (cost) credit	0	0
Pension | Regulatory Assets
Regulatory Assets and Accumulated Other Comprehensive Income (Loss)
Regulatory Assets, Balance at beginning of period	24,638	35,321
Amounts amortized to net periodic costs:
Regulatory Assets, Balance at end of period	22,172	24,638	35,321
Pension | Accumulated Other Comprehensive Income (Loss)
Regulatory Assets and Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss), Balance at beginning of period	742	5,003
Amounts amortized to net periodic costs:
Accumulated Other Comprehensive Income (Loss), Balance at end of period	1,557	742	5,003
OPEB
Amounts amortized to net periodic costs:
Net actuarial gain (loss)	(4,262)	0	(5,684)
Prior service (cost) credit	10,013	0	144
OPEB | Regulatory Assets
Regulatory Assets and Accumulated Other Comprehensive Income (Loss)
Amounts arising during the period, Net actuarial (gain) loss	27,108	9,936
Amounts arising during the period, Prior service (credit)	(60,504)
Amounts amortized to net periodic costs:
Net actuarial gain (loss)	(3,098)	0
Prior service (cost) credit	7,458	0
OPEB | Accumulated Other Comprehensive Income (Loss)
Regulatory Assets and Accumulated Other Comprehensive Income (Loss)
Amounts arising during the period, Net actuarial (gain) loss	14,080	12,320
Amounts arising during the period, Prior service (credit)	(19,376)
Amounts amortized to net periodic costs:
Net actuarial gain (loss)	(1,164)	0
Prior service (cost) credit	2,555	0
OPEB | Regulatory Assets
Regulatory Assets and Accumulated Other Comprehensive Income (Loss)
Regulatory Assets, Balance at beginning of period	30,046	20,110
Amounts amortized to net periodic costs:
Regulatory Assets, Balance at end of period	1,010	30,046	20,110
OPEB | Accumulated Other Comprehensive Income (Loss)
Regulatory Assets and Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss), Balance at beginning of period	5,498	(6,822)
Amounts amortized to net periodic costs:
Accumulated Other Comprehensive Income (Loss), Balance at end of period	$ 1,593	$ 5,498	$ (6,822)

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EMPLOYEE BENEFIT PLANS - AMOUNTS NOT YET RECOGNIZED AS NET PERIODIC COST (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Pension | Regulatory Assets
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Net actuarial loss	$ 22,172	$ 24,577
Prior service cost (credit)	0	61
Regulatory Assets, Total	22,172	24,638	$ 35,321
Pension | Accumulated Other Comprehensive Income (Loss)
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Net actuarial loss	1,557	742
Prior service cost (credit)	0	0
Accumulated Other Comprehensive Income (Loss), Total	1,557	742	5,003
OPEB | Regulatory Assets
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Net actuarial loss	54,056	30,046
Prior service cost (credit)	(53,046)	0
Regulatory Assets, Total	1,010	30,046	20,110
OPEB | Accumulated Other Comprehensive Income (Loss)
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Net actuarial loss	18,414	5,498
Prior service cost (credit)	(16,821)	0
Accumulated Other Comprehensive Income (Loss), Total	$ 1,593	$ 5,498	$ (6,822)

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EMPLOYEE BENEFIT PLANS - ACCUMULATED BENEFIT OBLIGATION (Details) - Pension - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023
Defined Benefit Plan Disclosure [Line Items]
Projected benefit obligation	$ 333,532	$ 290,321
Accumulated benefit obligation	306,850	267,794
Fair value of plan assets	$ 342,710	$ 298,361

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EMPLOYEE BENEFIT PLANS - COMPONENTS OF NET PERIODIC COST (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration]	Other income, net
Pension
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	$ 4,976	$ 5,402	$ 8,291
Interest cost	16,240	15,174	9,632
Expected return on plan assets	(20,346)	(19,972)	(21,275)
Recognized actuarial loss	117	300	8,745
Prior service cost (credit) amortization	61	103	101
Net periodic benefit cost recognized as expense	1,048	1,007	5,494
OPEB
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	1,406	2,471	4,305
Interest cost	8,327	9,146	6,355
Expected return on plan assets	(7,920)	(6,721)	(7,575)
Recognized actuarial loss	4,262	0	5,684
Prior service cost (credit) amortization	(10,013)	0	(144)
Net periodic benefit cost recognized as expense	$ (3,938)	$ 4,896	$ 8,625

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EMPLOYEE BENEFIT PLANS - WEIGHTED AVERAGE ASSUMPTIONS (Details)	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Pension
Benefit costs:
Expected asset return	7.00%	7.00%	6.75%
Pension | Represented
Benefit costs:
Discount rate	5.89%	5.50%	3.10%
Compensation increase	3.00%	3.00%	3.00%
Obligations:
Discount rate	5.01%	5.89%	5.50%
Compensation increase	3.00%	3.00%	3.00%
Pension | Nonrepresented
Benefit costs:
Discount rate	5.87%	5.50%	3.07%
Compensation increase	3.50%	3.50%	3.50%
Obligations:
Discount rate	4.99%	5.87%	5.50%
Compensation increase	3.50%	3.50%	3.50%
OPEB
Benefit costs:
Expected asset return	7.00%	7.00%	6.75%
OPEB | Represented
Benefit costs:
Discount rate	5.97%	5.51%	3.24%
Compensation increase	3.00%	3.00%	3.00%
Obligations:
Discount rate	4.97%	5.97%	5.51%
Compensation increase	3.00%	3.00%	3.00%
OPEB | Nonrepresented
Benefit costs:
Discount rate	5.94%	5.51%	3.17%
Compensation increase	3.50%	3.50%	3.50%
Obligations:
Discount rate	4.98%	5.94%	5.51%
Compensation increase	3.50%	3.50%	3.50%

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EMPLOYEE BENEFIT PLANS - ASSUMED HCCTR (Details) - OPEB	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
HCCTR	8.80%	7.40%	6.60%
Ultimate HCCTR	4.50%	4.50%	4.50%

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EMPLOYEE BENEFIT PLANS - MIX AND TARGETED ALLOCATION (Details)	Sep. 30, 2024	Sep. 30, 2023
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	100.00%
Assets	100.00%	100.00%
U.S. equity securities
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	29.00%
Assets	29.00%	34.00%
International equity securities
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	16.00%
Assets	16.00%	16.00%
Fixed income
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	39.00%
Assets	38.00%	31.00%
Collective investment trusts at NAV
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	16.00%
Assets	17.00%	19.00%

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EMPLOYEE BENEFIT PLANS - EXPECTED BENEFIT PAYMENTS (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Pension
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
2025	$ 16,273
2026	17,378
2027	18,452
2028	19,423
2029	20,493
2030 - 2034	115,709
OPEB
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
2025	8,397
2026	9,300
2027	10,138
2028	10,925
2029	11,703
2030 - 2034	$ 65,473

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EMPLOYEE BENEFIT PLANS - FAIR VALUE (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Pension
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	$ 342,710	$ 298,361	$ 284,347
OPEB
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	129,721	106,783	$ 99,736
Fair Value, Inputs, Level 1, 2 and 3 | Pension
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	280,825	237,624
Fair Value, Inputs, Level 1, 2 and 3 | Pension | Money market funds
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	0
Fair Value, Inputs, Level 1, 2 and 3 | Pension | Large Cap Index
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	76,897	81,171
Fair Value, Inputs, Level 1, 2 and 3 | Pension | Extended Market Index
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	16,665	17,256
Fair Value, Inputs, Level 1, 2 and 3 | Pension | International Stock
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	50,549	48,557
Fair Value, Inputs, Level 1, 2 and 3 | Pension | Emerging Markets
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	13,354	11,471
Fair Value, Inputs, Level 1, 2 and 3 | Pension | Core Fixed Income
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	0	0
Fair Value, Inputs, Level 1, 2 and 3 | Pension | High Yield Bond Fund
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	16,704	20,685
Fair Value, Inputs, Level 1, 2 and 3 | Pension | Long Duration Fund
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	106,656	58,484
Fair Value, Inputs, Level 1, 2 and 3 | OPEB
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	112,089	89,492
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | Money market funds
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	24
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | Large Cap Index
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	38,040	30,884
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | Extended Market Index
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	7,977	6,444
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | International Stock
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	22,730	17,966
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | Emerging Markets
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	5,358	4,306
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | Core Fixed Income
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	28,765	22,241
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | High Yield Bond Fund
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	9,195	7,651
Fair Value, Inputs, Level 1, 2 and 3 | OPEB | Long Duration Fund
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	280,825	237,624
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | Money market funds
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | Large Cap Index
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	76,897	81,171
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | Extended Market Index
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	16,665	17,256
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | International Stock
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	50,549	48,557
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | Emerging Markets
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	13,354	11,471
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | Core Fixed Income
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | High Yield Bond Fund
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	16,704	20,685
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension | Long Duration Fund
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	106,656	58,484
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	112,089	89,492
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | Money market funds
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	24
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | Large Cap Index
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	38,040	30,884
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | Extended Market Index
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	7,977	6,444
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | International Stock
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	22,730	17,966
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | Emerging Markets
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	5,358	4,306
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | Core Fixed Income
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	28,765	22,241
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | High Yield Bond Fund
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	9,195	7,651
Quoted Prices in Active Markets for Identical Assets (Level 1) | OPEB | Long Duration Fund
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	0	0
Investments measured at net asset value | Pension | Collective investment trusts
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	61,885	60,737
Investments measured at net asset value | OPEB | Collective investment trusts
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	$ 17,632	$ 17,291

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EMPLOYEE BENEFIT PLANS - DEFINED CONTRIBUTION (Details) - USD ($) $ in Millions		12 Months Ended
	Mar. 06, 2024	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Defined Benefit Plan Disclosure [Line Items]
Defined contribution, company match of employee contribution		85.00%
Defined contribution plan, maximum employer contribution by percentage of employee salary		6.00%
Defined contribution plan, cost recognized		$ 6.8	$ 5.9	$ 5.5
Deferred compensation arrangement with individual, employer contribution		$ 3.6	$ 2.1	$ 2.4
First Matching Tier
Defined Benefit Plan Disclosure [Line Items]
Defined contribution, company match of employee contribution	100.00%
Defined contribution plan, maximum employer contribution by percentage of employee salary	3.00%
Second Matching Tier
Defined Benefit Plan Disclosure [Line Items]
Defined contribution, company match of employee contribution	80.00%
Defined contribution plan, maximum employer contribution by percentage of employee salary	3.00%
NJRHS | Minimum
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plan, employer contribution for employees not qualifying for the defined benefit plan		4.00%
NJRHS | Maximum
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plan, employer contribution for employees not qualifying for the defined benefit plan		5.00%

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INCOME TAXES - COMPONENTS OF INCOME TAX PROVISION (BENEFIT) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Current:
Federal	$ 691	$ 13,393	$ 4,238
State	(682)	7,716	2,104
Deferred:
Federal	66,623	36,825	55,968
State	18,531	(8,381)	14,185
Investment/production tax credits	(257)	(278)	(300)
Income tax provision	$ 84,906	$ 49,275	$ 76,195

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INCOME TAXES - DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023
Deferred tax assets
Investment tax credits	$ 192,238	$ 191,948
State net operating losses	38,762	39,612
Deferred revenue	14,107	8,205
Fair value of derivatives	5,397	5,386
Impairment of equity method investment	14,004	14,004
Postemployment benefits	855	6,502
Incentive compensation	10,142	8,949
Amortization of intangibles	6,248	6,308
Overrecovered natural gas costs	9,072	8,564
Allowance for doubtful accounts	3,744	4,485
Other	7,226	7,636
Total deferred tax assets	301,795	301,599
Less: Valuation allowance	(5,621)	(5,747)
Total deferred tax assets net of valuation allowance	296,174	295,852
Deferred tax liabilities
Property-related items	(563,403)	(487,294)
Remediation costs	(21,656)	(18,532)
Investments in equity investees	(28,704)	(28,325)
Conservation incentive program	(14,379)	(14,075)
Other	(6,065)	(4,670)
Total deferred tax liabilities	(634,207)	(552,896)
Total net deferred tax liabilities	(338,033)	(257,044)
Tax credit carryforward	191,600	191,200
NJNG
Deferred tax liabilities
Tax credit carryforward	$ 700	$ 700

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INCOME TAXES - INCOME TAX RECONCILIATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Statutory income tax expense	$ 78,683	$ 65,940	$ 73,735
Change resulting from:
Investment/production tax credits	(257)	(278)	(300)
Cost of removal of assets placed in service prior to 1981	(5,644)	(4,758)	(3,533)
AFUDC equity	(1,444)	(1,499)	(2,361)
State income taxes, net of federal benefit	14,517	13,293	13,072
Valuation allowance	(126)	(16,494)	(1,372)
Tax Act - utility excess deferred income taxes amortized	(3,573)	(3,573)	(3,573)
Other	2,750	(3,356)	527
Income tax provision	$ 84,906	$ 49,275	$ 76,195
Effective income tax rate	22.70%	15.70%	21.70%

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INCOME TAXES - ADDITIONAL INFORMATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Contingency [Line Items]
ITC carryforward	$ 191,600	$ 191,200
Effective term	20 years
Potential net capital loss	$ 56,600
Unrecognized tax benefits	4,993	4,978		$ 0
Operating loss carryforward, valuation allowance	600			$ 17,200
Reversal of a valuation allowance for certain deferred tax assets		15,800
Investment tax credit, solar property, percentage			26.00%		26.00%	26.00%
Capital Loss Carryforward
Income Tax Contingency [Line Items]
Tax credit carryforward, valuation allowance	5,100	5,000
State and Local Jurisdiction
Income Tax Contingency [Line Items]
Net operating loss carryforwards	$ 634,700	$ 631,200
State and Local Jurisdiction | Minimum
Income Tax Contingency [Line Items]
Effective term	7 years
State and Local Jurisdiction | Maximum
Income Tax Contingency [Line Items]
Effective term	20 years

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INCOME TAXES - RESERVE FOR UNCERTAIN TAX BENEFITS (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Beginning balance	$ 4,978	$ 0
Additions based on tax positions related to the current fiscal period	15	4,978
Ending balance	$ 4,993	$ 4,978

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LEASES - ADDITIONAL INFORMATION (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Jul. 31, 2021
Lessee, Lease, Description [Line Items]
ROU asset obtained in exchange for operating lease liability	$ 14.1	$ 13.2
ROU asset obtained in exchange for finance lease liability	$ 0.0	$ 8.4
Weighted average remaining lease term, operating lease	28 years 7 months 6 days	29 years 2 months 12 days
Operating lease, discount rate	3.80%	3.50%
Weighted average remaining lease term, finance lease	3 years	3 years 3 months 18 days
Finance lease, discount rate	3.40%	2.70%
Solar Property | Minimum
Lessee, Lease, Description [Line Items]
Term of contract	20 years
Renewal term	5 years
Solar Property | Maximum
Lessee, Lease, Description [Line Items]
Term of contract	50 years
Renewal term	20 years
Office Building
Lessee, Lease, Description [Line Items]
Term of contract			16 years
Office Building | Minimum
Lessee, Lease, Description [Line Items]
Term of contract	2 years
Office Building | Maximum
Lessee, Lease, Description [Line Items]
Term of contract	11 years
Meter License | Minimum
Lessee, Lease, Description [Line Items]
Term of contract	6 years
Meter License | Maximum
Lessee, Lease, Description [Line Items]
Term of contract	10 years
Equipment
Lessee, Lease, Description [Line Items]
Term of contract	9 years
Storage and Capacity
Lessee, Lease, Description [Line Items]
Term of contract	50 years

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LEASES - LEASE COST (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Operating lease cost	$ 10,368	$ 9,336	$ 9,702
Amortization of right-of-use assets	2,160	2,105	1,769
Interest on lease liabilities	914	1,084	612
Total finance lease cost	3,074	3,189	2,381
Short-term lease cost	0	0	34
Variable lease cost	1,099	1,128	781
Total lease cost	$ 14,541	$ 13,653	$ 12,898

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LEASES - SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Operating cash flows for operating leases	$ 7,932	$ 8,942	$ 7,417
Operating cash flows for finance leases	914	1,084	831
Financing cash flows for finance leases	$ 7,792	$ 7,379	$ 7,145

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LEASES - RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023
Noncurrent
Operating lease assets	$ 184,485	$ 175,740
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Utility plant, at cost	Utility plant, at cost
Finance lease assets	$ 26,088	$ 28,248
Total lease assets	210,573	203,988
Current
Operating lease liabilities	$ 4,945	$ 4,772
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Current maturities of long-term debt	Current maturities of long-term debt
Finance lease liabilities	$ 7,534	$ 8,477
Noncurrent
Operating lease liabilities	$ 159,303	$ 148,023
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Long-term debt	Long-term debt
Finance lease liabilities	$ 16,026	$ 22,875
Total lease liabilities	$ 187,808	$ 184,147

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LEASES - MATURITIES OF LEASE LIABILITIES (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Operating
2025	$ 8,408
2026	8,852
2027	8,834
2028	8,925
2029	8,994
Thereafter	233,942
Total future payments	277,955
Less: interest	(113,707)
Total liability	164,248
Finance Leases
2025	8,169
2026	6,411
2027	4,083
2028	4,715
2029	1,676
Thereafter	0
Total future payments	25,054
Less: interest	(1,494)
Total liability	$ 23,560

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COMMITMENTS AND CONTINGENT LIABILITIES - SCHEDULE OF FUTURE COMMITTED EXPENSES (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2024 USD ($)
Long-term Purchase Commitment [Line Items]
Current charges recoverable through BGSS	$ 252,800
Purchase Obligation, Fiscal Year Maturity [Abstract]
2024	383,061
2025	237,841
2026	188,020
2027	155,973
2028	138,215
Thereafter	1,006,789
Operating leases, future minimum payments due, next five years (not more than)	9,000
Thereafter	233,942
ES
Purchase Obligation, Fiscal Year Maturity [Abstract]
2024	106,830
2025	53,209
2026	34,995
2027	24,993
2028	13,717
Thereafter	51,754
ES | Natural gas purchases
Purchase Obligation, Fiscal Year Maturity [Abstract]
2024	42,427
2025	1,155
2026	0
2027	0
2028	0
Thereafter	0
ES | Storage demand fees
Purchase Obligation, Fiscal Year Maturity [Abstract]
2024	16,453
2025	11,857
2026	5,452
2027	3,500
2028	2,712
Thereafter	4,068
ES | Pipeline demand fees
Purchase Obligation, Fiscal Year Maturity [Abstract]
2024	47,950
2025	40,197
2026	29,543
2027	21,493
2028	11,005
Thereafter	47,686
Annual pipeline obligation to be paid over 10 year period	4,000
NJNG
Purchase Obligation, Fiscal Year Maturity [Abstract]
2024	276,231
2025	184,632
2026	153,025
2027	130,980
2028	124,498
Thereafter	955,035
NJNG | Natural gas purchases
Purchase Obligation, Fiscal Year Maturity [Abstract]
2024	23,392
2025	0
2026	0
2027	0
2028	0
Thereafter	0
NJNG | Storage demand fees
Purchase Obligation, Fiscal Year Maturity [Abstract]
2024	38,214
2025	22,678
2026	11,207
2027	4,900
2028	0
Thereafter	0
NJNG | Pipeline demand fees
Purchase Obligation, Fiscal Year Maturity [Abstract]
2024	214,625
2025	161,954
2026	141,818
2027	126,080
2028	124,498
Thereafter	$ 955,035
Minimum
Long-term Purchase Commitment [Line Items]
Storage and pipeline capacity, contract term	1 year
Minimum | ES
Long-term Purchase Commitment [Line Items]
Storage and pipeline capacity, contract term	1 year
Maximum
Long-term Purchase Commitment [Line Items]
Storage and pipeline capacity, contract term	10 years
Maximum | ES
Long-term Purchase Commitment [Line Items]
Storage and pipeline capacity, contract term	10 years

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COMMITMENTS AND CONTINGENT LIABILITIES - GUARANTEES (Details) $ in Millions	Sep. 30, 2024 USD ($)
Guarantee Obligations
Guarantor Obligations [Line Items]
Loss contingency, estimate of possible loss	$ 174.3

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COMMITMENTS AND CONTINGENT LIABILITIES - LEGAL PROCEEDINGS (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Loss Contingencies [Line Items]
Manufactured gas plant remediation	$ 161,650	$ 169,390
Recovery from third party of environmental remediation cost, period	7 years
Regulatory assets	$ 609,192	$ 584,830
Expended, net of recoveries
Loss Contingencies [Line Items]
Regulatory assets	77,500
Minimum
Loss Contingencies [Line Items]
Product liability contingency, loss exposure in excess of accrual, best estimate	130,900
Maximum
Loss Contingencies [Line Items]
Product liability contingency, loss exposure in excess of accrual, best estimate	$ 194,600

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REPORTING SEGMENT AND OTHER OPERATIONS DATA - RECONCILIATION OF SEGMENT INCOME TO CONSOLIDATED (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Segment Reporting Information [Line Items]
Operating revenues	$ 1,796,539	$ 1,962,994	$ 2,905,979
Depreciation and amortization	166,567	152,941	129,249
Interest income	8,669	8,919	2,716
Interest expense, net of capitalized interest	130,275	123,014	85,830
Income tax provision (benefit)	84,906	49,275	76,195
Equity in earnings of affiliates	5,299	3,930	8,177
Net financial earnings	290,828	261,827	240,321
Capital expenditures	571,319	540,919	598,428
Return of capital from equity investees			(5,479)
Nonutility	778,057	951,710	1,778,562
ES
Segment Reporting Information [Line Items]
Operating revenues	137,200	48,500
Operating Segments
Segment Reporting Information [Line Items]
Operating revenues	1,734,162	1,905,561	2,850,161
Depreciation and amortization	165,466	152,052	128,425
Interest income	13,072	9,789	3,021
Interest expense, net of capitalized interest	129,507	122,367	85,184
Income tax provision (benefit)	81,081	53,169	75,157
Equity in earnings of affiliates	2,816	3,126	9,865
Net financial earnings	290,806	257,224	241,102
Capital expenditures	569,078	538,613	597,038
Return of capital from equity investees			(5,479)
Operating Segments | NJNG
Segment Reporting Information [Line Items]
Operating revenues	1,018,482	1,011,284	1,127,417
Depreciation and amortization	112,492	102,326	94,579
Interest income	2,448	1,713	895
Interest expense, net of capitalized interest	62,288	56,595	46,394
Income tax provision (benefit)	31,793	33,065	40,141
Equity in earnings of affiliates	0	0	0
Net financial earnings	133,400	131,414	140,124
Capital expenditures	419,453	390,394	298,374
Return of capital from equity investees			0
Operating Segments | CEV
Segment Reporting Information [Line Items]
Operating revenues	130,563	124,131	128,280
Depreciation and amortization	27,869	25,320	21,396
Interest income	0	0	0
Interest expense, net of capitalized interest	28,545	28,569	21,968
Income tax provision (benefit)	11,406	(7,683)	11,361
Equity in earnings of affiliates	0	0	0
Net financial earnings	33,662	44,458	39,403
Capital expenditures	104,287	107,303	146,676
Return of capital from equity investees			0
Operating Segments | ES
Segment Reporting Information [Line Items]
Operating revenues	490,266	681,446	1,529,178
Depreciation and amortization	205	221	148
Interest income	452	1,119	16
Interest expense, net of capitalized interest	15,233	11,400	4,725
Income tax provision (benefit)	33,331	24,343	21,776
Equity in earnings of affiliates	0	0	0
Net financial earnings	111,515	68,517	39,121
Capital expenditures	0	0	0
Return of capital from equity investees			0
Operating Segments | ES | CANADA
Segment Reporting Information [Line Items]
Nonutility	0	8,400	2,400
Operating Segments | S&T
Segment Reporting Information [Line Items]
Operating revenues	94,851	88,700	65,286
Depreciation and amortization	24,900	24,185	12,302
Interest income	10,172	6,957	2,110
Interest expense, net of capitalized interest	23,441	25,803	12,097
Income tax provision (benefit)	4,551	3,444	1,879
Equity in earnings of affiliates	2,816	3,126	9,865
Net financial earnings	12,229	12,835	22,454
Capital expenditures	45,338	40,916	151,988
Return of capital from equity investees			(5,479)
Intersegment Eliminations
Segment Reporting Information [Line Items]
Operating revenues	(2,167)	15,678	3,893
Intersegment Eliminations | NJNG
Segment Reporting Information [Line Items]
Operating revenues	1,350	1,349	1,350
Intersegment Eliminations | CEV
Segment Reporting Information [Line Items]
Operating revenues	0	0	0
Intersegment Eliminations | ES
Segment Reporting Information [Line Items]
Operating revenues	(4,875)	10,170	94
Intersegment Eliminations | S&T
Segment Reporting Information [Line Items]
Operating revenues	1,358	4,159	2,449
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Operating revenues	62,377	57,433	55,818
Depreciation and amortization	1,101	889	824
Interest income	1,423	2,977	944
Interest expense, net of capitalized interest	768	647	646
Income tax provision (benefit)	2,666	(1,477)	1,059
Equity in earnings of affiliates	0	0	0
Net financial earnings	26	4,758	(781)
Capital expenditures	2,241	2,306	1,390
Return of capital from equity investees			0
Corporate Reconciling Items and Eliminations
Segment Reporting Information [Line Items]
Operating revenues	258	205	364
Eliminations
Segment Reporting Information [Line Items]
Operating revenues		(15,883)	(4,257)
Depreciation and amortization	0	0	0
Interest income	(5,826)	(3,847)	(1,249)
Interest expense, net of capitalized interest	0	0	0
Income tax provision (benefit)	1,159	(2,417)	(21)
Equity in earnings of affiliates	2,483	804	(1,688)
Net financial earnings	(4)	(155)	0
Capital expenditures	0	$ 0	0
Return of capital from equity investees			$ 0
Eliminations and Reconciling Items
Segment Reporting Information [Line Items]
Operating revenues	$ 1,909

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REPORTING SEGMENT AND OTHER OPERATIONS DATA - RECONCILIATION OF SEGMENT ASSETS TO CONSOLIDATED (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	$ 6,981,645	$ 6,537,496	$ 6,261,416
Operating Segments
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	7,081,575	6,679,140	6,378,335
Operating Segments | NJNG
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	4,789,835	4,414,829	4,030,686
Operating Segments | CEV
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	1,157,573	1,128,577	1,015,065
Operating Segments | ES
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	108,710	123,775	333,064
Operating Segments | S&T
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	1,025,457	1,011,959	999,520
Corporate, Non-Segment
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	159,444	171,275	159,068
Consolidation, Eliminations
Segment Reporting, Asset Reconciling Item [Line Items]
Assets	$ (259,374)	$ (312,919)	$ (275,987)

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REPORTING SEGMENT AND OTHER OPERATIONS DATA - NET FINANCIAL EARNINGS LOSS RECONCILIATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Segment Reporting [Abstract]
Net financial earnings	$ 290,828	$ 261,827	$ 240,321
Less:
Unrealized loss (gain) on derivative instruments and related transactions	19,574	(38,081)	(59,906)
Tax effect	(4,652)	9,050	14,248
Effects of economic hedging related to natural gas inventory	(18,192)	34,699	19,939
Tax effect	4,323	(8,246)	(4,738)
Gain on equity method investment	0	(300)	(5,521)
Tax effect	0	(19)	1,377
NET INCOME	$ 289,775	$ 264,724	$ 274,922

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RELATED PARTY TRANSACTIONS - ADDITIONAL INFORMATION (Details) $ in Millions	1 Months Ended	12 Months Ended
	Apr. 30, 2020 USD ($) Bcf	Sep. 30, 2024 dth / d numberOfAgreement Bcf
NJNG to ES Affiliate
Related Party Transaction [Line Items]
Asset management agreement, period	5 years
NJNG to Steckman RIdge Affiliate
Related Party Transaction [Line Items]
Natural gas sold at cost under asset management agreement (in Bcf) | Bcf	3
Approximate annual demand fees under agreement | $	$ 9.3
NJNG to Adelphia Affiliate
Related Party Transaction [Line Items]
Number of Transportation Agreements | numberOfAgreement		2
NJNG to Adelphia Affiliate | Transportation Precedent Agreement One
Related Party Transaction [Line Items]
Transportation capacity under precedent agreement with PennEast (in bcf per day) | dth / d		130,000
Transportation precedent agreement term		5 years
NJNG to Adelphia Affiliate | Transportation Precedent Agreement Two
Related Party Transaction [Line Items]
Transportation capacity under precedent agreement with PennEast (in bcf per day) | dth / d		130,000
Transportation precedent agreement term		15 years
Leaf River Energy Center LLC
Related Party Transaction [Line Items]
Natural gas sold at cost under asset management agreement (in Bcf) | Bcf		3
Storage capacity agreement term		5 years
NJNG and CEV to PPA | Sublease Agreement One
Related Party Transaction [Line Items]
Sublease agreement term		15 years
NJNG and CEV to PPA | Sublease Agreement Two
Related Party Transaction [Line Items]
Sublease agreement term		20 years
NJNG to NJR Subsidiaries
Related Party Transaction [Line Items]
Term of contract		16 years

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RELATED PARTY TRANSACTIONS - DEMAND FEES (Details) - Related Party - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Related Party Transaction [Line Items]
Demand fees expense recognized pertaining to related party agreement	$ 7,147	$ 7,206	$ 7,395
Demand fees payable	875	859
NJNG to Steckman RIdge Affiliate
Related Party Transaction [Line Items]
Demand fees expense recognized pertaining to related party agreement	6,319	6,549	6,663
Demand fees payable	775	775
ES to Steckman Ridge Affiliate
Related Party Transaction [Line Items]
Demand fees expense recognized pertaining to related party agreement	828	657	$ 732
Demand fees payable	$ 100	$ 84

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SUBSEQUENT EVENTS (Details) - Residential Solar Portfolio - Subsequent Event $ in Millions	Nov. 25, 2024 USD ($)
Subsequent Event [Line Items]
Purchase price	$ 132.5
Minimum
Subsequent Event [Line Items]
Asset acquisition, pre tax gain	45.0
Maximum
Subsequent Event [Line Items]
Asset acquisition, pre tax gain	$ 60.0

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VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2022
Valuation allowance for deferred tax assets
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
BEGINNING BALANCE	$ 5,747	$ 22,241	$ 23,613
ADDITIONS CHARGED TO EXPENSE	(126)	(16,494)	(1,372)
OTHER	0	0	0
ENDING BALANCE	5,621	5,747	22,241
Allowance for doubtful accounts
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
BEGINNING BALANCE	11,036	19,379	24,652
ADDITIONS CHARGED TO EXPENSE	1,229	1,570	2,401
OTHER	(3,759)	(9,913)	(7,674)
ENDING BALANCE	$ 8,506	$ 11,036	$ 19,379