NEW JERSEY RESOURCES CORP
For the period ended Mar 31, 2025. Filed May 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 6, 2025
NJR$54.34-0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-12-31; filed 2025-02-04.
0000356309-25-000024
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsNatural Gas Distribution SegmentClean Energy Ventures SegmentEnergy Services SegmentStorage and Transportation SegmentHome Services and Other Business OperationsLiquidity and Capital ResourcesCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-06.
0000356309-25-000031
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsNatural Gas Distribution SegmentClean Energy Ventures SegmentEnergy Services SegmentStorage and Transportation SegmentHome Services and Other Business OperationsLiquidity and Capital ResourcesThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 293 previous paragraphs and 301 current paragraphs.
192 unchanged; 70 reworded; 35 added; 29 removed; 2 previous and 4 current paragraphs rearranged.
Tables are not compared: 24 previous and 24 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (35)
Current report
Consolidated net income increased approximately $83.5M during the three months ended March 31, 2025, compared with the three months ended March 31, 2024, due primarily to the following factors:
Current report
•$44.3M increase at ES due primarily to higher operating revenues, partially offset by higher gas purchases related to increased natural gas prices; and
Current report
Consolidated net income increased approximately $125.4M during the six months ended March 31, 2025, compared with the six months ended March 31, 2024, due primarily to the following factors:
Current report
•$30.6M increase at ES due primarily to higher operating revenues, partially offset by higher gas purchases related to increased natural gas prices.
Current report
•$301.2M increase in cash and customer receivables at NJNG; and
Current report
•$107.0M decrease in gas in storage at NJNG due primarily to seasonality usage; and
Current report
Consolidated NFE increased approximately $39.7M during the three months ended March 31, 2025, compared with the three months ended March 31, 2024, due primarily to a $37.4M increase in earnings at NJNG due to the increase in base rates, as previously discussed.
Current report
•$39.3M increase at CEV related to the gain on sale of the residential solar asset portfolio, as previously discussed.
Current report
Net income increased approximately $37.4M during the three months ended March 31, 2025, compared with the three months ended March 31, 2024, due primarily to the following factors:
Current report
•$8.2M increase in depreciation expense as a result of additional utility plant being placed into service; and
Current report
•$18.8M increase in income tax expense related to the higher operating income.
Current report
Net income increased approximately $52.9M during the six months ended March 31, 2025, compared with the six months ended March 31, 2024, due primarily to the following factors:
Current report
•$13.4M increase in depreciation expense, as previously discussed; and
Current report
•$26.4M increase in income tax expense related to higher operating income.
Current report
Net loss decreased approximately $1.7M during the three months ended March 31, 2025, compared with the three months ended March 31, 2024, due primarily to the following factors:
Current report
•$1.4M decrease in depreciation expense as a result of the sale of residential solar assets;
Current report
•$0.8M increase in other income, net due primarily to the recognition of ITCs associated with solar sale leaseback financing transactions; and
Current report
•$0.7M gain on the sale of the residential solar asset portfolio; partially offset by
Current report
•$1.4M decrease in operating revenues due to the sale of the residential solar assets, partially offset by higher electricity sales.
Current report
Net income increased approximately $39.3M during the six months ended March 31, 2025, compared with the six months ended March 31, 2024, due primarily to the following factors:
Current report
•$55.5M gain on the sale of the residential solar asset portfolio; partially offset by
Current report
•$11.5M increase in income tax expense related to higher operating income.
Current report
Net income increased approximately $44.3M during the three months ended March 31, 2025, compared with the three months ended March 31, 2024, due primarily to the following factors:
Current report
•$13.8M increase in income tax expense related to higher operating income.
Current report
Net income increased approximately $30.6M during the six months ended March 31, 2025, compared with the six months ended March 31, 2024, due primarily to the following factors:
Current report
•$9.1M increase in income tax expense related to higher operating income.
Current report
NFE decreased approximately $2.3M during both the three and six months ended March 31, 2025, compared with the three and six months ended March 31, 2024, due primarily to lower AMA related revenue, as previously discussed.
Current report
Net income increased approximately $0.4M during the three months ended March 31, 2025, compared with the three months ended March 31, 2024, due primarily to the following factors:
Current report
•$2.3M increase in operating revenues due to higher hub services at Leaf River; partially offset by
Current report
•$2.3M increase in O&M due to higher legal and consulting expenses.
Current report
Net income increased approximately $2.4M during the six months ended March 31, 2025, compared with the six months ended March 31, 2024, due primarily to the following factors:
Current report
•$5.0M increase in operating revenues due to higher hub services at Leaf River; partially offset by
Current report
•$2.3M increase in O&M as previously discussed.
Current report
Net loss increased approximately $1.1M during the three months ended March 31, 2025, compared with the three months ended March 31, 2024, due primarily to higher O&M at Home Services resulting from higher employee expenses.
Current report
As of March 31, 2025, NJR's long-term debt consisted of approximately $1.1B in fixed-rate unsecured debt issuances, with maturities ranging from 2026 to 2034.
Removed paragraphs (29)
Previous report
Consolidated net income increased approximately $41.9M during the three months ended December 31, 2024, compared with the three months ended December 31, 2023, due primarily to the following factors:
Previous report
•$13.7M decrease at ES due primarily to lower revenue related to the AMAs along with decreased sales volumes and higher natural gas costs during the current period.
Previous report
•$202.7M increase in customer receivables primarily at NJNG; and
Previous report
•$37.6M increase at CEV and
Previous report
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.
Previous report
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.
Previous report
Net income increased approximately $15.5M during the three months ended December 31, 2024, compared with the three months ended December 31, 2023, due primarily to the following factors:
Previous report
•$5.2M increase in depreciation expense; and
Previous report
•$7.6M increase in income tax expense related to higher operating income.
Previous report
Net income increased approximately $37.6M during the three months ended December 31, 2024, compared with the three months ended December 31, 2023, due primarily to the following factors:
Previous report
•$54.9M gain on the sale of the residential solar asset portfolio; partially offset by
Previous report
•$11.0M increase in income tax expense related to higher operating income.
Previous report
Net income decreased approximately $13.7M during the three months ended December 31, 2024, compared with the three months ended December 31, 2023, due primarily to the following factors:
Previous report
•$3.2M decrease in O&M due to lower employee related expenses; and
Previous report
•$4.7M decrease in income tax expense related to lower operating income.
Previous report
Net income increased approximately $2.0M during the three months ended December 31, 2024, compared with the three months ended December 31, 2023, due primarily to the $2.8M increase in operating revenues due to higher hub services revenue at Leaf River.
Previous report
Net income increased approximately $1.2M during the three months ended December 31, 2024, compared with the three months ended December 31, 2023, due primarily to higher installation and service contract revenue at Home Services.
Previous report
As of December 31, 2024, NJR had the following outstanding:
Previous report
•$100M of 3.54% senior notes due August 18, 2026;
Previous report
•$110M of 4.38% senior notes due June 23, 2027;
Previous report
•$100M of 3.96% senior notes due June 8, 2028;
Previous report
•$150M of 3.29% senior notes due July 17, 2029;
Previous report
•$130M of 3.60% senior notes due July 23, 2032;
Previous report
•$130M of 3.50% senior notes due July 23, 2030;
Previous report
•$120M of 3.13% senior notes due September 1, 2031;
Previous report
•$80M of 3.25% senior notes due September 1, 2033;
Previous report
•$50M of 3.64% senior notes due September 19, 2034;
Previous report
•$50M of 6.14% senior notes due December 15, 2032; and
Previous report
•$100M of 5.55% senior notes due November 7, 2034.
Reworded paragraphs (70)
Previous wording
•$15.5M increase in earnings at NJNG due to increased base rates; partially offset by
Current wording
•$52.9M increase in earnings at NJNG due primarily to increased base rates;
Previous wording
•$37.6M increase at CEV due primarily to the gain on the sale of the residential solar asset portfolio; and
Current wording
•$39.3M increase at CEV due primarily to the gain on the sale of the residential solar asset portfolio; and
Previous wording
Consolidated assets increased approximately $212.3M as of December 31, 2024, compared with September 30, 2024, due primarily to the following factors:
Current wording
Consolidated assets increased approximately $283.9M as of March 31, 2025, compared with September 30, 2024, due primarily to the following factors:
Previous wording
•$73.2M increase in utility plant expenditures, net at NJNG; partially offset by
Current wording
•$134.8M increase in utility plant expenditures, net at NJNG; partially offset by
Previous wording
•$48.6M decrease in nonutility plant and equipment, net at CEV due primarily to the sale of the residential solar asset portfolio.
Current wording
•$15.5M decrease in nonutility plant and equipment, net at CEV due primarily to the sale of the residential solar asset portfolio, partially offset by additional capital expenditures for commercial solar projects.
Previous wording
Consolidated NFE increased approximately $56.5M during the three months ended December 31, 2024, compared with the three months ended December 31, 2023, due primarily to the following factors:
Current wording
Consolidated NFE increased approximately $96.2M during the six months ended March 31, 2025, compared with the six months ended March 31, 2024, due primarily to the following factors:
Previous wording
•$15.5M increase at NJNG, as previously discussed.
Current wording
•$52.9M increase at NJNG, as previously discussed; and
Previous wording
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 pipeline integrity management and infrastructure programs. Below is a summary of NJNG’s capital expenditures, including accruals, for the three months ended December 31, 2024, and estimates of expected investments for fiscal 2025 and 2026:
Current wording
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 pipeline integrity management and infrastructure programs. Below is a summary of NJNG’s capital expenditures, including accruals, for the six months ended March 31, 2025, and estimates of expected investments for fiscal 2025 and 2026:
Previous wording
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.
Current wording
In September 2024, the BPU approved NJNG's annual IIP filing, which requested a rate increase for capital expenditures of approximately $41.2M through June 30, 2024, which resulted in a revenue increase of approximately $4.7M, effective October 1, 2024.
Previous wording
During the three months ended December 31, 2024, NJNG added 1,914 new customers. NJNG expects new customer additions, and those customers who added additional natural gas services to their premises to contribute approximately $2.0M of incremental Utility Gross Margin on an annualized basis.
Current wording
During the six months ended March 31, 2025, NJNG added 3,945 new customers. NJNG expects new customer additions, and those customers who added additional natural gas services to their premises to contribute approximately $4.4M of incremental Utility Gross Margin on an annualized basis.
Previous wording
On December 18, 2024, the BPU approved NJNG's annual EE filing for the recovery of SAVEGREEN costs, which will increase annual recoveries by approximately $3.1M, effective January 1, 2025.
Current wording
On December 18, 2024, the BPU approved NJNG's annual SAVEGREEN filing for the recovery of costs, which will increase annual recoveries by approximately $3.1M, effective January 1, 2025.
Previous wording
On October 30, 2024, the BPU approved a settlement of the new SAVEGREEN program running from January 1, 2025 to June 30, 2027, and consisting of $205.0M of direct investment, $160.5M in financing options and $20.1M in O&M, which totals $385.6M. Annual recoveries are expected to increase by approximately $12.3M, effective January 1, 2025.
Current wording
On October 30, 2024, the BPU approved a settlement of the new SAVEGREEN program running from January 1, 2025 to June 30, 2027, and consisting of $205.0M of direct investment, $160.5M in financing options and $20.1M in O&M, which totals approximately $385.6M. Annual recoveries are expected to increase by approximately $12.3M, effective January 1, 2025.
Previous wording
Program recoveries from customers during the three months ended December 31, 2024 and 2023, were $4.9M and $4.4M, 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%.
Current wording
Program recoveries from customers during the six months ended March 31, 2025 and 2024, were approximately $9.2M and $15.1M, respectively. The recovery includes a weighted average cost of capital that ranges from 6.9% to 7.08%, with a return on equity of 9.6%.
Previous wording
(1)Compared with the 20-year average, weather was 8.1% warmer-than-normal during the three months ended December 31, 2024 and 8.2% warmer-than-normal during the three months ended December 31, 2023.
Current wording
(1)Compared with the 20-year average, weather was 0.4% and 3.4% warmer-than-normal during the three and six months ended March 31, 2025, respectively, and 12.4% and 10.8% warmer-than-normal during the three and six months ended March 31, 2024, respectively.
Previous wording
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.
Current wording
In September 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.
Previous wording
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 approximately $3.2M and $5.4M during the three months ended December 31, 2024 and 2023, respectively.
Current wording
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 approximately $7.4M and $7.9M during the three months ended March 31, 2025 and 2024, respectively, and approximately $10.6M and $13.3M during the six months ended March 31, 2025 and 2024, respectively.
Previous wording
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.
Current wording
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 per MMBtu(1) in the Northeast market region, also known as TETCO M-3.
Previous wording
The maximum price per MMBtu was $8.64 and $3.52 and the minimum price was $1.05 and $0.89 for the three months ended December 31, 2024 and 2023, 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 Resultsand Cash Flow sections of Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Current wording
The maximum price per MMBtu was $40.02 and $20.98 and the minimum price was $1.05 and $0.89 for the six months ended March 31, 2025 and 2024, 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 Resultsand Cash Flow sections of Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Previous wording
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.
Current wording
In March 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.
Previous wording
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.
Current wording
In June 2024, NJNG submitted its annual USF filing to the BPU requesting an increase to the statewide USF rate. In September 2024, the BPU approved the filing, which resulted in an increase to annual recoveries of approximately $6.8M, effective October 1, 2024.
Previous wording
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.
Current wording
On April 23, 2025, the BPU approved NJNG's annual SBC filing of RAC expenditures through June 30, 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, effective May 1, 2025.
Previous wording
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 $161.0M as of December 31, 2024, a decrease of $0.7M compared with the prior fiscal period. See Note 13. Commitments and Contingent Liabilities for more details.
Current wording
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 approximately $160.1M as of March 31, 2025, a decrease of approximately $1.6M compared with September 30, 2024. See Note 13. Commitments and Contingent Liabilities for more details.
Previous wording
(1)Includes nonutility revenue of approximately $0.3M for both the three months ended December 31, 2024 and 2023, for lease agreements with various NJR subsidiaries leasing office space from NJNG at the Company’s headquarters, which are eliminated in consolidation.
Current wording
(1)Includes nonutility revenue of approximately $0.3M for both the three months ended March 31, 2025 and 2024, and $0.6M and $0.7M for the six months ended March 31, 2025 and 2024, respectively, for lease agreements with various NJR subsidiaries leasing office space from NJNG at the Company’s headquarters, which are eliminated in consolidation.
Previous wording
(3)Includes related party transactions of approximately $2.3M for both the three months ended December 31, 2024 and 2023, a portion of which is eliminated in consolidation.
Current wording
(3)Includes related party transactions of approximately $2.3M and $4.7M for both the three and six months ended March 31, 2025 and 2024, respectively, a portion of which is eliminated in consolidation.
Previous wording
Operating revenues increased 13.7% and natural gas purchases increased 9.8% during the three months ended December 31, 2024, compared with the three months ended December 31, 2023.
Current wording
Operating revenues increased 33.6% and natural gas purchases increased 33.2% during the three months ended March 31, 2025, compared with the three months ended March 31, 2024. Operating revenues increased 25.9% and natural gas purchases increased 24.7% during the six months ended March 31, 2025, compared with the six months ended March 31, 2024.
Previous wording
(1)Excludes SG&A of approximately $26.1M and $28.3M for the three months ended December 31, 2024 and 2023, respectively.
Current wording
(1)Excludes SG&A of approximately $31.7M and $30.0M for the three months ended March 31, 2025 and 2024, respectively, and $57.8M and $58.9M for the six months ended March 31, 2025 and 2024, respectively.
Previous wording
Utility firm gross margin increased $27.4M during the three months ended December 31, 2024, compared with the three months ended December 31, 2023, due primarily to an increase in base rates.
Current wording
Utility firm gross margin increased approximately $68.0M and $95.5M during the three and six months ended March 31, 2025, compared with the three and six months ended March 31, 2024, respectively, due primarily to an increase in base rates, effective November 21, 2024.
Previous wording
BGSS incentive programs decreased during the three months ended December 31, 2024, compared with the three months ended December 31, 2023, due primarily to decreased margins from storage due to reduced market volatility.
Current wording
BGSS incentive programs decreased during the three and six months ended March 31, 2025, compared with the three and six months ended March 31, 2024, due primarily to decreased margins from storage due to timing differences.
Previous wording
•$25.5M increase in Utility Gross Margin, as previously discussed; partially offset by
Current wording
•$67.5M increase in Utility Gross Margin, as previously discussed; partially offset by
Previous wording
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.
Current wording
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, changes in law, governmental policies, or incentives that support clean energy projects, including changes to U.S. trade policy and the impact tariffs and other costs and assessments may have on equipment used to construct, generate, and deliver clean energy, 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.
Previous wording
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.
Current wording
The primary contributors toward the value of qualifying clean energy projects are tax incentives, RECs and electricity sales. Changes in regulation 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.
Previous wording
CEV placed two net-metered solar commercial projects in service totaling 10.5 MWs during the three months ended December 31, 2024, with related expenditures of $20.4M. CEV placed one net-metered solar commercial project in service totaling 2.8 MWs during the three months ended December 31, 2023, with related expenditures of $7.8M. These projects are subject to sale leaseback arrangements.
Current wording
CEV placed one commercial solar project in service totaling 2.2 MWs during the three months ended March 31, 2025, with related expenditures of approximately $8.3M. CEV placed three commercial solar projects in service totaling 12.7 MWs during the six months ended March 31, 2025, with related expenditures of approximately $28.7M. CEV placed one commercial solar project in service totaling 2.8 MWs during the six months ended March 31, 2024, with related expenditures of approximately $7.9M. These projects are subject to sale leaseback arrangements. CEV did not place any commercial solar projects in service during the three months ended March 31, 2024.
Previous wording
CEV has approximately 396 MW of commercial 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.
Current wording
CEV has approximately 399 MW of commercial 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.
Previous wording
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 Unaudited Condensed Consolidated Statements of Operations over the respective five-year ITC recapture periods, starting with the second year of the lease. CEV received proceeds of approximately $12.6M and $24.4M during the three months ended December 31, 2024 and 2023, respectively, in connection with the sale leaseback of commercial solar assets.
Current wording
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 Unaudited Condensed Consolidated Statements of Operations over the respective five-year ITC recapture periods, starting with the second year of the lease. CEV received proceeds of approximately $13.2M during the three months ended March 31, 2025, and approximately $25.7M and $24.4M during the six months ended March 31, 2025 and 2024, respectively, in connection with the sale leaseback of commercial solar assets. There were no proceeds received during the three months ended March 31, 2024.
Previous wording
REC activity during the three months ended, consisted of the following:
Current wording
REC activity during the six months ended, consisted of the following:
Previous wording
•$8.9M decrease in operating revenues due to the timing of SREC sales; and
Current wording
•$10.2M decrease in operating revenues due to the timing of SREC sales and the sale of the residential solar assets; and
Previous wording
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. ES recognized approximately $4.9M and $9.5M during the three months ended December 31, 2024 and 2023, respectively, of operating revenue related to the AMAs on the Unaudited Condensed Consolidated Statements of Operations. Amounts received in excess of revenue totaling $51.6M and $22.3M as of December 31, 2024 and September 30, 2024, respectively, are included in deferred revenue on the Unaudited Condensed Consolidated Balance Sheets.
Current wording
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. ES recognized approximately $4.9M and $9.5M during the three months ended March 31, 2025 and 2024, respectively, and approximately $9.9M and $19.0M during the six months ended March 31, 2025 and 2024, respectively, of operating revenue related to the AMAs on the Unaudited Condensed Consolidated Statements of Operations. Amounts received in excess of revenue totaling approximately $46.7M and $22.3M as of March 31, 2025 and September 30, 2024, respectively, are included in deferred revenue on the Unaudited Condensed Consolidated Balance Sheets.
Previous wording
(1)Includes related party transactions of approximately $1.1M during the three months ended December 31, 2023, which are eliminated in consolidation. There were no related party transactions during the three months ended December 31, 2024.
Current wording
(1)Includes related party transactions of approximately $(3.7)M and $(4.9)M during the three and six months ended March 31, 2024, respectively, which are eliminated in consolidation. There were no related party transactions during the three and six months ended March 31, 2025.
Previous wording
(3)Includes related party transactions of approximately $0.3M during both the three months ended December 31, 2024 and 2023, a portion of which is eliminated in consolidation.
Current wording
(3)Includes related party transactions of approximately $0.3M during both the three months ended March 31, 2025 and 2024, and $0.6M during both the six months ended March 31, 2025 and 2024, a portion of which is eliminated in consolidation.
Previous wording
During the three months ended December 31, 2024 and 2023, the net short position resulted in unrealized (loss) gains of approximately $(0.5)M and $16.7M, respectively.
Current wording
During the six months ended March 31, 2025 and 2024, the net short position resulted in unrealized (losses) gains of approximately $(8.2)M and $6.8M, respectively.
Showing the first 40 of 70 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
•$37.4M increase in earnings at NJNG due primarily to increased base rates, effective November 21, 2024.
Current report — wording carried from elsewhere
•$93.0M increase in Utility Gross Margin, as previously discussed; partially offset by
Current report — wording carried from elsewhere
•$88.2M increase in operating revenues, as previously discussed; partially offset by
Current report — wording carried from elsewhere
•$53.9M increase in natural gas purchases, as previously discussed; and
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
Short-term borrowings were as follows: