SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2018

ARO activity was as follows (in thousands):



	2018			2017
SJI (includes SJG and all other consolidated subsidiaries):
AROs as of January 1,	$	59,497		$	59,427
Accretion	1,909			1,955
Additions	297			1,008
Settlements	(3,402		)	(2,893		)
Revisions in Estimated Cash Flows (A)	21,862			—
ARO's as of December 31,	$	80,163		$	59,497

	2018			2017
SJG:
AROs as of January 1,	$	58,714		$	58,674
Accretion	1,880			1,925
Additions	297			1,008
Settlements	(2,863		)	(2,893		)
Revisions in Estimated Cash Flows (A)	21,862			—
ARO's as of December 31,	$	79,890		$	58,714

(A) The revision in estimated cash flows reflects an increase in the contract retirement costs of approximately $31.5 million, partially offset by $9.6 million due to changes in the discount and inflation rates to settle the ARO. Corresponding entries were made to Regulatory Assets and Utility Plant, thus having no impact on earnings.

Public utility property, plant, and equipment

Utility Plant balances and Nonutility Property and Equipment as of December 31, 2018 and 2017 were comprised of the following (in thousands):



	SJI (includes SJG and all other consolidated subsidiaries):				SJG
	2018		2017		2018		2017
Utility Plant
Production Plant	$	1,281	$	296	$	296	$	296
Storage Plant	92,769		61,909		61,996		61,909
Transmission Plant	326,906		258,598		306,654		258,598
Distribution Plant	3,466,101		2,044,421		2,212,831		2,044,421
General Plant	303,219		175,599		241,095		175,599
Other Plant	1,964		1,855		1,855		1,855
Utility Plant In Service	4,192,240		2,542,678		2,824,727		2,542,678
Construction Work In Progress	148,873		109,566		82,475		109,566
Total Utility Plant	$	4,341,113	$	2,652,244	$	2,907,202	$	2,652,244

Nonutility Property and Equipment
Solar Assets (A)	$	—	$	582,379	$	—	$	—
Cogeneration Assets	126,228		125,614		—		—
Other Assets	26,004		33,034		—		—
Total Nonutility Property and Equipment	$	152,232	$	741,027	$	—	$	—

(A) All remaining solar assets are recorded as Assets Held for Sale in the consolidated balance sheets as of December 31, 2018.

Schedule of Asset Management Agreement Contract Purchase

The amounts received by ETG will be credited to its BGSS clause and returned to its ratepayers. The total purchase price was allocated as follows (in thousands):



Natural Gas in Storage	$	9,685
Intangible Asset	19,200
Profit Sharing - Other Liabilities	(17,546		)
Total Consideration	$	11,339