What changed in this filing

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Item 1. Business

2023-11-21 compared with 2022-11-17 · 94 added, 86 removed, 135 unchanged (57% of the section changed)

BUSINESS (Continued)

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.

At the present time, however, natural gas is used in over 95 percent of new construction due to its efficiency, reliability and price advantage.

Natural gas prices are a function of market supply and demand.

Although NJNG believes natural gas will remain competitive with alternate 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.

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Clean Energy Ventures

Clean Energy Ventures invests in, owns and operates clean energy projects, including commercial and residential solar installations located in New Jersey, Connecticut, Rhode Island and New York.

As of September 30, 2022, Clean Energy Ventures has approximately 386.6 MW of ITC-eligible solar capacity in service, including a combination of residential and commercial net-metered and grid-connected solar systems.

As part of its solar investment portfolio, Clean Energy Ventures operates a residential and small commercial solar program, The Sunlight Advantage®, that 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.

Clean Energy Ventures owns, operates and maintains the system over the life of the lease in exchange for monthly lease payments.

The program is operated by Clean Energy Ventures using qualified contracting partners in addition to strategic suppliers for material standardization and sourcing.

CEV invests in, 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, 2023, CEV has approximately 468.8 MW of solar capacity in service, including a combination of residential and commercial net-metered and grid-connected solar systems.

As part of its solar investment portfolio, CEV operates a residential and small commercial solar program, The Sunlight Advantage®, that 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.

The residential solar lease and PPA market is highly competitive, with a large number of companies operating in New Jersey.

Clean Energy Ventures competes on price, quality and brand reputation, leveraging its partner network and customer referrals.

Clean Energy Ventures’ commercial solar projects are sourced through various channels and include both net-metered and grid-connected systems.

CEV competes on price, quality and brand reputation, leveraging its partner network and customer referrals.

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.

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One REC is created for every MWh of electricity produced by a solar generator.

Clean Energy Ventures 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.

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.

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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 is expected to include a competitive bid solicitation for projects greater than 5 MWs, with the solicitation program format and rules expected to be finalized in 2023.

Clean Energy Ventures 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.

The second phase of the successor program, the CSI Program, was established on December 7, 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.

The next solicitation will open on November 27, 2023, and will close to bids on February 29, 2024.

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.

Risk Factors for additional information regarding these risks.

New Jersey Resources Corporation

BUSINESS (Continued)

Energy Services

Energy Services consists of unregulated wholesale and retail natural gas operations and provides producer and asset management services to a diverse customer base across North America.

Energy Services has acquired contractual rights to natural gas transportation and storage assets it utilizes to implement its strategic and opportunistic market strategies.

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.

Energy Services’ activities are conducted in the market areas in which it has strong expertise, including the U.S.

Energy Services differentiates itself in the marketplace based on price, reliability and quality of service.

ES’s activities are conducted in the market areas in which it has strong expertise, including the U.S.

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.

Energy Services’ 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.

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

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.

New Jersey Resources Corporation

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;

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• 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, Energy Services 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 on November 1, 2021.

NJR will receive a total of approximately $260 million in cash from fiscal 2022 through fiscal 2024 and $34 million per year from fiscal 2025 through fiscal 2031 under the agreements.

During fiscal 2022, Energy Services did not purchase over 10 percent of its natural gas from any one supplier.

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 will receive a total of approximately $260M in cash from fiscal 2022 through fiscal 2024 and $34M per year from fiscal 2025 through fiscal 2031 under the agreements.

During fiscal 2023, ES did not purchase over 10% of its natural gas from any one supplier.

Transportation and Natural Gas Storage Transactions

Energy Services 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.

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, Energy Services may hedge these price differentials through the use of financial instruments.

In addition, Energy Services 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 Energy Services to capture geographic pricing differences across various regions, as delivered natural gas prices may change favorably as a result of market conditions.

Energy Services 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.

Energy Services also engages in park and loan transactions with storage and pipeline operators, where Energy Services 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, Energy Services evaluates the economics of the transaction to determine if it can capture pricing differentials in the marketplace and generate Financial Margin.

Energy Services evaluates deal attributes such as fixed fees, 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, Energy Services may enter into the transaction and hedge with natural gas futures contracts, thereby locking in Financial Margin.

New Jersey Resources Corporation

BUSINESS (Continued)

Energy Services 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 2022 and 2021, Energy Services managed and sold 231.1 Bcf and 382.0 Bcf of natural gas, respectively.

In addition, as of September 30, 2022 and 2021, Energy Services had 10.8 Bcf or $82.5 million of natural gas in storage and 18.8 Bcf or $77.8 million of natural gas in storage, respectively.

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 2023 and 2022, ES managed and sold 150.4 Bcf and 231.1 Bcf of natural gas, respectively.

In addition, as of September 30, 2023 and 2022, ES had 14.6 Bcf or $24.5M of natural gas in storage and 10.8 Bcf or $82.5M of natural gas in storage, respectively.

Weather/Seasonality

Energy Services activities are typically seasonal in nature as a result of changes in the supply and demand for natural gas.

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;

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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, Energy Services can be subject to variations in earnings and working capital throughout the year as a result of changes in weather.

Energy Services’ 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 Energy Services’ Financial Margin, which, as described below, is generated from the optimization of transportation and storage assets.

With its focus on risk management, Energy Services continues to diversify its revenue stream by identifying new growth opportunities in producer and asset management services.

Energy Services monitors changing market dynamics and strategically adjusts its portfolio of transportation and storage assets, which currently includes an average of approximately 25.4 Bcf of firm storage and 0.7 Bcf of firm transportation capacity.

Accordingly, ES can be subject to variations in earnings and working capital throughout the year as a result of changes in weather.

New Jersey Resources Corporation

BUSINESS (Continued)

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 21.8 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, Energy Services enters into a variety of derivative instruments including, but not limited to, futures contracts, physical forward contracts, financial swaps and options.

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.

Energy Services views Financial Margin, a non-GAAP financial measure, as a key internal financial metric.

ES views Financial Margin, a non-GAAP financial measure, as a key internal financial metric.

For additional information regarding Financial Margin, see Item 7.

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Risk Management

In conducting its business, Energy Services mitigates risk by following formal risk management guidelines, including transaction limits, segregation of duties and formal contract and credit review approval processes.

Energy Services continuously monitors and seeks to reduce the risk associated with its counterparty credit exposures.

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

Storage and Transportation includes investments in FERC-regulated interstate natural gas storage and transportation assets and is comprised of the following subsidiaries:

• NJR Midstream Company owns and operates Leaf River, a 32.2 million Dth salt dome natural gas facility, located in southeastern Mississippi, and the FERC-regulated Adelphia Gateway, which owns and operates an 84-mile pipeline in southeastern Pennsylvania.

NJR Midstream Company also holds a 20 percent equity method investment in PennEast, whose project was cancelled in September 2021 and subsequently is dissolving the partnership;

• NJR Steckman Ridge Storage Company holds our 50 percent equity method investment in Steckman Ridge.

S&T includes investments in FERC-regulated interstate natural gas storage and transportation assets and is comprised of the following subsidiaries:

• NJR Midstream Company owns and operates Leaf River, a 32.2M Dth salt dome natural gas facility, located in southeastern Mississippi, and the FERC-regulated Adelphia, which owns and operates an 84-mile pipeline in southeastern Pennsylvania.

NJR Midstream Company also holds a 20% equity method investment in PennEast, whose project was cancelled in September 2021 and subsequently is dissolving the partnership;

• NJR Steckman Ridge Storage Company holds our 50% equity method investment in 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.

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pipelines and has access to the Northeast and Mid-Atlantic markets.

New Jersey Resources Corporation

BUSINESS (Continued)

OTHER BUSINESS OPERATIONS

Home Services and Other

Home Services and Other operations consist primarily of the following unregulated affiliates:

• NJRHS, which provides heating, ventilation and cooling service, sales and installation of appliances to approximately 103,100 service contract customers, as well as installation of solar equipment;

HSO operations consist primarily of the following unregulated affiliates:

• NJR Home Services, Inc., which provides heating, ventilation and cooling service, sales and installation of appliances to approximately 101,500 service contract customers, as well as installation of solar equipment;

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

• NJR Retail Company, which provides home warranty contracts:

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

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

New Jersey Resources Corporation

BUSINESS (Continued)

We, along with our subsidiaries, are subject to legislation and regulation by federal, state and local authorities with respect to environmental matters.

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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 $110.8 million to $167.1 million.

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 $137.3M to $201.5M.

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 2023.

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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, 2022, NJNG recorded an MGP remediation liability and a corresponding regulatory asset of $127.1 million on the Consolidated Balance Sheets, based on the most likely amount;

As of September 30, 2023, NJNG recorded an MGP remediation liability and a corresponding regulatory asset of $169.4M on the Consolidated Balance Sheets, based on the most likely amount;

however, actual costs may differ from these estimates.

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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 negotiated an extension of their current collective bargaining agreement extending the term through December 7, 2023.

NJNG and the Union are in active negotiations to extend the collective bargaining agreement, which is scheduled to expire on December 7, 2023.

The collective bargaining agreement between NJRHS and the Union is scheduled to expire April 2, 2024.

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We consider our relationship with employees, including those covered by collective bargaining agreements, to be in good standing.

New Jersey Resources Corporation

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.

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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 and/or replacement candidates for key positions.

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 personnel.

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.

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Moreover, DEI and employee engagement are integral to NJR’s vision, strategy and business success.

NJR prides itself on a culture that respects co-workers and values concern for others.

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.

Fostering an environment that values DEI and ethics helps create an organization

New Jersey Resources Corporation

BUSINESS (Continued)

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 six 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.

Complementing our efforts are a DEI Council and our seven 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.

NJR’s Board of Directors’ Role in Human Capital Resource Management

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 promotes DEI, respects co-workers and values concern for others.

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 regularly conducts an employee feedback survey, which is reviewed by the LDCC, designed to help the Company measure overall employee engagement.

The feedback employees provide during the survey helps NJR evaluate the Company’s culture, employee programs and benefits and monitor its current practices for potential areas of improvement.

NJR conducts an annual employee feedback 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

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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 matches 85 percent of the first 6 percent of compensation contributed by the employee into the 401(k) Plan, subject to the Internal Revenue Code and NJR’s 401(k) Plan limits.

Additionally, for employees who are not eligible to participate in the defined benefit plans, NJR contributes between 3.5 percent and 4.5 percent of base compensation, depending upon years of service, into the 401(k) Plan on their behalf.

As part of the 401(k) Plan, NJR matches 85% of the first 6% of compensation contributed by the employee into the 401(k) Plan, subject to the Internal Revenue Code and NJR’s 401(k) Plan limits.

Additionally, for employees who are not eligible to participate in the defined benefit plans, NJR annually contributes between 3.5% and 4.5% of base compensation, depending upon years of service, into the 401(k) Plan on their behalf.

AVAILABLE INFORMATION AND CORPORATE GOVERNANCE DOCUMENTS

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• Current reports on Form 8-K.

New Jersey Resources Corporation

BUSINESS (Continued)

The following documents are available free of charge on our website at https://investor.njresources.com/governance/governance-documents/default.aspx

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Please refer to the Proxy Statement when it is available.

New Jersey Resources Corporation

BUSINESS (Continued)

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.

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President and Chief Operating Officer (October 2018 - September 2019)

Executive Vice President and Chief Operating Officer (November 2017 - September 2018)

Senior Vice President and Chief Operating Officer, NJRES and NJRCEV (October 2016 -

October 2017)

Roberto Bel 50 2019 Senior Vice President and Chief Financial Officer (January 2022 - present)

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Assistant Treasurer at Refinitiv (October 2018 - March 2019)

Assistant Treasurer at Thomson Reuters (May 2016 - September 2018)

Migliaccio 49 2013 Senior Vice President and Chief Operating Officer (January 2022 - present)

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Vice President, Government Affairs and Policy (January 2018 – December 2019)

Chief of Staff, Office of New Jersey Governor Chris Christie (April 2016 – January 2018)

Richard Reich 47 2016 Senior Vice President, General Counsel and Corporate Secretary (September 2021 - present)

Richard Reich 48 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)

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Jacqueline K.

Shea 58 2016 Vice President and Chief Information Officer (June 2016 - present)

Shea 59 2016 Senior Vice President and Chief Information Officer (January 2023 - present)

Vice President and Chief Information Officer (June 2016 - December 2022)

Skrocki 47 2023 Corporate Controller (Principal Accounting Officer) (January 2023 - present)

Corporate Controller (January 2021 - December 2022)

Assistant Corporate Controller (March 2017 - January 2021)

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.

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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.

Risks Related to Our Business Operations

Our investments in solar energy projects are subject to substantial risks and uncertainties.

Our investments in commercial and residential 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 SRECs 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 SRECs could negatively impact the return on our investments and could impair our portfolio of solar assets.

In addition, 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.

New Jersey Resources Corporation

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business