Q - NEW JERSEY RESOURCES
For the period ended Jun 30, 2025. Filed Aug 5, 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.
Jun 30, 2025 · Filed Aug 5, 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 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 ResourcesCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0000356309-25-000046
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsNatural Gas Distribution SegmentOperating ResultsClean Energy Ventures SegmentEnergy Services SegmentStorage and Transportation SegmentHome Services and Other Business OperationsLiquidity and Capital ResourcesCash FlowThe 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 301 previous paragraphs and 297 current paragraphs.
191 unchanged; 79 reworded; 24 added; 27 removed; 4 previous and 3 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 (24)
Current report
Consolidated net loss increased approximately $3.5M during the three months ended June 30, 2025, compared with the three months ended June 30, 2024, due primarily to the following factors:
Current report
•$16.2M increase in earnings at NJNG due primarily to an increase in base rates, effective November 21, 2024.
Current report
Consolidated net income increased approximately $121.9M during the nine months ended June 30, 2025, compared with the nine months ended June 30, 2024, due primarily to the following factors:
Current report
•$69.1M increase in earnings at NJNG due primarily to an increase in base rates;
Current report
•$39.1M increase at CEV, as previously discussed.
Current report
On May 30, 2025, NJNG's annual SAVEGREEN cost recovery filing was submitted to the BPU, requesting an increase to annual recoveries of approximately $17.3M, effective October 1, 2025.
Current report
Net income increased approximately $16.2M during the three months ended June 30, 2025, compared with the three months ended June 30, 2024, due primarily to the following factors:
Current report
Net income increased approximately $69.1M during the nine months ended June 30, 2025, compared with the nine months ended June 30, 2024, due primarily to the following factors:
Current report
•$30.0M increase in income tax expense related to higher operating income.
Current report
On July 4, 2025, OBBBA was signed into law, which modifies several pre-existing provisions of the Inflation Reduction Act, including the phase-out of certain clean energy tax credits. To be eligible for ITCs, solar facilities must be placed in service by December 31, 2027, unless construction begins before July 4, 2026, and must satisfy the prohibited foreign entity material assistance requirements, unless construction begins before December 31, 2025.
Current report
On July 7, 2025, a federal executive order was issued directing the Secretary of the Treasury to release guidance that could potentially modify the beginning of construction requirements for solar facilities.
Current report
The Company continues to evaluate the provisions of OBBBA, as well as the foregoing federal executive order, on its business. There has been no material impact on CEV’s operations or financial position as a result of these developments to date. The Company will continue to assess these and further developments for potential impacts in future periods.
Current report
Net income increased approximately $39.1M during the nine months ended June 30, 2025, compared with the nine months ended June 30, 2024, due primarily to the following factors:
Current report
•$56.1M gain on the sale of the residential solar asset portfolio; partially offset by
Current report
•$2.9M decrease in O&M due to lower employee related expenses; and
Current report
•$6.2M decrease in income tax expense related to lower operating income.
Current report
Net income increased approximately $10.5M during the nine months ended June 30, 2025, compared with the nine months ended June 30, 2024, due primarily to the following factors:
Current report
•$8.6M decrease in O&M due to lower employee related expenses; partially offset by
Current report
•$2.8M increase in income tax expense related to higher operating income.
Current report
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. On June 26, 2025, Adelphia reached a settlement in principle with customers participating in the rate case. Adelphia and the rate case participants plan to file an offer of settlement with the FERC during the fourth quarter of fiscal 2025, the results of which are considered immaterial to the Company’s Unaudited Condensed Consolidated Financial Statements.
Current report
Net income remained relatively consistent during the three months ended June 30, 2025, compared with the three months ended June 30, 2024.
Current report
Net income increased approximately $4.1M during the nine months ended June 30, 2025, compared with the nine months ended June 30, 2024, due primarily to the following factors:
Current report
Net income remained relatively consistent during the three and nine months ended June 30, 2025, compared with the three and nine months ended June 30, 2024.
Current report
On April 15, 2025, NJNG's 10-year 2.82% $50M senior notes matured.
Removed paragraphs (27)
Previous 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:
Previous report
•$37.4M increase in earnings at NJNG due primarily to increased base rates, effective November 21, 2024.
Previous 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:
Previous report
•$52.9M increase in earnings at NJNG due primarily to increased base rates;
Previous report
•$301.2M increase in cash and customer receivables at NJNG; and
Previous report
•$134.8M increase in utility plant expenditures, net at NJNG; partially offset by
Previous report
•$107.0M decrease in gas in storage at NJNG due primarily to seasonality usage; and
Previous report
•$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 report
•$39.3M increase at CEV related to the gain on sale of the residential solar asset portfolio, as previously discussed.
Previous 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:
Previous report
•$18.8M increase in income tax expense related to the higher operating income.
Previous 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:
Previous report
•$26.4M increase in income tax expense related to higher operating income.
Previous 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:
Previous report
•$1.4M decrease in depreciation expense as a result of the sale of residential solar assets;
Previous report
•$0.8M increase in other income, net due primarily to the recognition of ITCs associated with solar sale leaseback financing transactions; and
Previous report
•$0.7M gain on the sale of the residential solar asset portfolio; partially offset by
Previous report
•$1.4M decrease in operating revenues due to the sale of the residential solar assets, partially offset by higher electricity sales.
Previous 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:
Previous report
•$55.5M gain on the sale of the residential solar asset portfolio; partially offset by
Previous 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:
Previous report
•$13.8M increase in income tax expense related to higher operating income.
Previous 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:
Previous report
•$9.1M increase in income tax expense related to higher operating income.
Previous report
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.
Previous 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:
Previous 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:
Reworded paragraphs (79)
Previous wording
Net income by reporting segment and other business operations, which are discussed in more detail within the operating results sections of each reporting segment and other business operations, are as follows:
Current wording
Net (loss) income by reporting segment and other business operations, which are discussed in more detail within the operating results sections of each reporting segment and other business operations, are as follows:
Previous wording
•$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 wording
•$20.1M increase in net loss at ES due primarily to lower operating revenues related to the AMAs along with higher natural gas purchase prices; partially offset by
Previous wording
•$39.3M increase at CEV due primarily to the gain on the sale of the residential solar asset portfolio; and
Current wording
•$39.1M increase at CEV due primarily to the gain on the sale of the residential solar asset portfolio; and
Previous wording
•$30.6M increase at ES due primarily to higher operating revenues, partially offset by higher gas purchases related to increased natural gas prices.
Current wording
•$10.5M increase at ES due primarily to higher operating revenues related to increased natural gas prices, partially offset by decreased AMA revenues along with higher natural gas purchase prices.
Previous wording
Consolidated assets increased approximately $283.9M as of March 31, 2025, compared with September 30, 2024, due primarily to the following factors:
Current wording
Consolidated assets increased approximately $292.5M as of June 30, 2025, compared with September 30, 2024, due primarily to a $209.3M increase in utility plant expenditures, net and an $80.8M increase in customer receivables at NJNG.
Previous wording
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 wording
Consolidated NFE increased approximately $15.1M during the three months ended June 30, 2025, compared with the three months ended June 30, 2024, due primarily to a $16.2M increase in earnings at NJNG due to the increase in base rates, as previously discussed.
Previous 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:
Current wording
Consolidated NFE increased approximately $111.3M during the nine months ended June 30, 2025, compared with the nine months ended June 30, 2024, due primarily to the following factors:
Previous wording
•$52.9M increase at NJNG, as previously discussed; and
Current wording
•$69.1M increase at NJNG, as previously discussed; and
Previous wording
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 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%.
Current wording
In January 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 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%.
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 six months ended March 31, 2025, 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 nine months ended June 30, 2025, and estimates of expected investments for fiscal 2025 and 2026:
Previous wording
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.
Current wording
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. On July 25, 2025, NJNG submitted a filing with the BPU to extend the IIP through June 30, 2026.
Previous 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.
Current wording
During the nine months ended June 30, 2025, NJNG added 5,659 new customers. NJNG expects new customer additions, and those customers who added additional natural gas services to their premises to contribute approximately $6.7M of incremental Utility Gross Margin on an annualized basis.
Previous wording
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 $23.4M in O&M.
Current wording
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 $23.4M in O&M. On October 30, 2024, the BPU approved a settlement of the new SAVEGREEN program effective from January 1, 2025 to June 30, 2027, consisting of $205.0M of direct investment, $160.5M in financing options and $20.1M in O&M, which totals approximately $385.6M, with expected recoveries through September 30, 2025, of approximately $12.3M.
Previous 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.
Current wording
On December 18, 2024, the BPU approved NJNG's annual SAVEGREEN filing for the recovery of costs, which increased annual recoveries by approximately $3.1M, effective January 1, 2025.
Previous 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%.
Current wording
Program recoveries from customers during the nine months ended June 30, 2025 and 2024, were approximately $13.0M and $22.6M, 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 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.
Current wording
(1)Compared with the 20-year average, weather was 17.8% and 4.9% warmer-than-normal during the three and nine months ended June 30, 2025, respectively, and 12.6% and 11.0% warmer-than-normal during the three and nine months ended June 30, 2024, respectively.
Previous 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.
Current wording
On May 30, 2025, the 2026 BGSS/CIP filing was submitted to the BPU requesting an increase of approximately $63.3M to annual revenues related to BGSS, an annual increase of approximately $6.1M related to its balancing charge and a decrease of approximately $25.5M to CIP rates, effective October 1, 2025. 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 $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.
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 $3.9M and $2.9M during the three months ended June 30, 2025 and 2024, respectively, and approximately $14.5M and $16.2M during the nine months ended June 30, 2025 and 2024, respectively.
Previous 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.
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 nine months ended June 30, 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 Results and Cash Flow sections of Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
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 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.
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 $155.9M as of June 30, 2025, a decrease of approximately $5.8M 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 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.
Current wording
(1)Includes nonutility revenue of approximately $0.2M and $0.3M during the three months ended June 30, 2025 and 2024, respectively, and $0.9M and $1.0M for the nine months ended June 30, 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 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.
Current wording
(3)Includes related party transactions of approximately $1.6M and$2.3M during the three months ended June 30, 2025 and 2024, respectively, and $6.3M and $7.0M during nine months ended June 30, 2025 and 2024, respectively, a portion of which is eliminated in consolidation.
Previous 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.
Current wording
Operating revenues increased 29.7% and natural gas purchases increased 34.5% during the three months ended June 30, 2025, compared with the three months ended June 30, 2024. Operating revenues increased 26.5% and natural gas purchases increased 26.1% during the nine months ended June 30, 2025, compared with the nine months ended June 30, 2024.
Previous 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.
Current wording
(1)Excludes SG&A of approximately $27.1M and $28.8M for the three months ended June 30, 2025 and 2024, respectively, and $85.0M and $87.7M for the nine months ended June 30, 2025 and 2024, respectively.
Previous 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.
Current wording
Utility firm gross margin increased approximately $23.7M and $119.2M during the three and nine months ended June 30, 2025, compared with the three and nine months ended June 30, 2024, respectively, due primarily to an increase in base rates, effective November 21, 2024.
Previous 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.
Current wording
BGSS incentive programs increased during the three months ended June 30, 2025, compared with the three months ended June 30, 2024, due primarily to increased margins from storage and off-system sales. BGSS incentive programs decreased during the nine months ended June 30, 2025, compared with the nine months ended June 30, 2024, due primarily to decreased margins from storage due to timing differences.
Previous wording
•$67.5M increase in Utility Gross Margin, as previously discussed; partially offset by
Current wording
•$25.0M increase in Utility Gross Margin, as previously discussed; partially offset by
Previous wording
•$8.2M increase in depreciation expense as a result of additional utility plant being placed into service; and
Current wording
•$7.5M increase in depreciation expense as a result of additional utility plant being placed into service.
Previous wording
•$13.4M increase in depreciation expense, as previously discussed; and
Current wording
•$20.9M increase in depreciation expense, as previously discussed; and
Previous 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.
Current wording
The primary contributors toward the value of qualifying clean energy projects are tax incentives, RECs and electricity sales. Changes in the laws and regulations 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 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.
Current wording
CEV placed two commercial solar projects in service totaling 19.3 MWs during the three months ended June 30, 2025, with related expenditures of approximately $55.0M. CEV placed five commercial solar projects in service totaling 32.0 MWs during the nine months ended June 30, 2025, with related expenditures of approximately $83.7M. CEV placed one commercial solar project in service totaling 2.3 MWs during the three months ended June 30, 2024, with related expenditures of approximately $10.9M. CEV placed two commercial solar projects in service totaling 5.1 MWs during the nine months ended June 30, 2024, with related expenditures of approximately $18.8M. These projects are subject to sale leaseback arrangements.
Previous 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.
Current wording
CEV has approximately 418 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 $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.
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 $74.5M during the three months ended June 30, 2025, and approximately $100.3M and $24.4M during the nine months ended June 30, 2025 and 2024, respectively, in connection with the sale leaseback of commercial solar assets. There were no proceeds received during the three months ended June 30, 2024.
Previous wording
CEV operated a residential solar program, as part of The Sunlight Advantage®, which provided qualifying homeowners with the opportunity to have a solar system installed at their home with no installation or maintenance expenses. CEV owned, operated and maintained the system over the life of the lease in exchange for monthly lease payments. 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.
Current wording
CEV operated a residential solar program, as part of The Sunlight Advantage®, which provided qualifying homeowners with the opportunity to have a solar system installed at their home with no installation or maintenance expenses. CEV owned, operated and maintained the system over the life of the lease in exchange for monthly lease payments. 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 purchase price of $132.5M. See Note 16. Dispositions for more details.
Previous wording
In July 2021, the BPU established a new successor solar incentive program. This ADI Program provides administratively set incentives for net metered residential projects and net metered non-residential projects of 5 MW or less. RECs generated through the production of electricity under this program are known as SREC IIs.
Current wording
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.
Previous wording
REC activity during the six months ended, consisted of the following:
Current wording
REC activity during the nine months ended, consisted of the following:
Previous wording
Net loss remained relatively flat during the six months ended March 31, 2025, compared with the six months ended March 31, 2024.
Current wording
Net loss remained relatively consistent during the three months ended June 30, 2025, compared with the three months ended June 30, 2024.
Previous wording
•$10.2M decrease in operating revenues due to the timing of SREC sales and the sale of the residential solar assets; and
Current wording
•$12.9M 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 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.
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 June 30, 2025 and 2024, respectively, and approximately $14.8M and $28.5M during the nine months ended June 30, 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 $41.8M and $22.3M as of June 30, 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 $(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.
Current wording
(1)Includes related party transactions of approximately $(4.9)M during the nine months ended June 30, 2024, which are eliminated in consolidation. There were no related party transactions during the three and nine months ended June 30, 2025 and the three months ended June 30, 2024.
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Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
On May 21, 2025, the BPU approved on a final basis, NJNG’s 2025 BGSS/CIP 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.
Current report — wording carried from elsewhere
On June 27, 2025, NJNG submitted its annual USF filing to the BPU requesting a decrease to annual recoveries of approximately $0.5M, effective October 1, 2025.
Current report — wording carried from elsewhere
•$118.1M increase in Utility Gross Margin, as previously discussed; partially offset by
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
•$93.0M increase in Utility Gross Margin, as previously discussed; partially offset by
Previous report — wording carried elsewhere
•$5.0M increase in operating revenues due to higher hub services at Leaf River; partially offset by
Previous report — wording carried elsewhere
•$2.3M increase in O&M as previously discussed.