SEGMENTS OF BUSINESS

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

SEGMENTS OF BUSINESS

SEGMENTS OF BUSINESS:

SJI operates in several different reportable operating segments which reflect the financial information regularly evaluated by the CODM. These segments are as follows:

•SJG utility operations consist primarily of natural gas distribution to residential, commercial and industrial customers in southern New Jersey.

•ETG utility operations consist of natural gas distribution to residential, commercial and industrial customers in northern and central New Jersey.

•ELK utility operations consist of natural gas distribution to residential, commercial and industrial customers in Maryland. As discussed in Note 1, on July 31, 2020, SJI sold ELK to a third-party buyer.

•Wholesale energy operations include the activities of SJRG and SJEX.

•Retail electric operations at SJE consist of electricity acquisition and transportation to commercial, industrial and residential customers.

•On-site energy production consists of MTF and ACB, which as discussed in Note 1, were sold on February 18, 2020. This segment also includes other energy-related projects, including three legacy solar projects, one of which was sold during the three months ended March 31, 2020 as discussed in Note 1. Also included in this segment are the activities of ACLE, BCLE, SCLE and SXLE. Operations at BCLE, SCLE, and SXLE ceased during the second quarter of 2020 as discussed in Note 1. As of June 30, 2020, on-site energy production also includes newly acquired entities which own and operate solar-generation sites located in New Jersey. See Note 17.

•Appliance service operations includes SJESP, which receives commissions on service contracts from a third party.

•Midstream was formed to invest in infrastructure and other midstream projects, including a current project to build a natural gas pipeline in Pennsylvania and New Jersey.

•Corporate & Services segment includes costs related to the Acquisition, along with other unallocated costs. Also included in this segment are the results of SJEI.

•Intersegment represents intercompany transactions among the above SJI consolidated entities.

SJI groups its utility businesses under its wholly-owned subsidiary SJIU. This group consists of gas utility operations of SJG, ETG and ELK. SJI groups its nonutility operations into separate categories: Energy Group, Energy Services, Midstream and Corporate & Services. Energy Group includes wholesale energy and retail electric operations. Energy Services includes on-site energy production and appliance service operations. The accounting policies of the segments are the same as those described in the summary of significant accounting policies.

Information about SJI’s operations in different reportable operating segments is presented below (in thousands). The results for AEP are included in the Corporate & Services segment from the acquired date of August 31, 2019. Further, the results and balances for On-Site Energy Production are impacted by the sales of solar assets and the sale of MTF and ACB (see Note 1). The identifiable assets balance for On-Site Energy Production as of June 30, 2020 is also impacted by the newly acquired entities, which closed on June 30, 2020 (see Note 17).

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Operating Revenues:
SJI Utilities:
SJG Utility Operations	$	87,182	$	62,268	$	327,876	$	334,466
ETG Utility Operations	57,843		44,854		202,000		185,028
ELK Utility Operations	1,389		944		4,507		4,318
Subtotal SJI Utilities	146,414		108,066		534,383		523,812
Energy Group:
Wholesale Energy Operations	101,526		126,483		229,970		316,490
Retail Electric Operations	9,957		20,531		22,182		43,222
Subtotal Energy Group	111,483		147,014		252,152		359,712
Energy Services:
On-Site Energy Production	2,154		14,788		9,142		26,118
Appliance Service Operations	505		484		994		1,015
Subtotal Energy Services	2,659		15,272		10,136		27,133
Corporate and Services	12,918		11,815		26,628		21,186
Subtotal	273,474		282,167		823,299		931,843
Intersegment Sales	(13,510)		(15,233)		(29,223)		(27,611)
Total Operating Revenues	$	259,964	$	266,934	$	794,076	$	904,232

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Operating Income:
SJI Utilities:
SJG Utility Operations	$	9,732	$	10,215	$	114,377	$	108,560
ETG Utility Operations	6,375		2,051		60,437		46,200
ELK Utility Operations	212		(32)		747		598
Subtotal SJI Utilities	16,319		12,234		175,561		155,358
Energy Group:
Wholesale Energy Operations	6,092		(2,386)		13,504		(4,892)
Retail Electric Operations	(449)		(2,313)		(1,670)		(3,969)
Subtotal Energy Group	5,643		(4,699)		11,834		(8,861)
Energy Services:
On-Site Energy Production	(2,016)		1,343		(2,312)		1,461
Appliance Service Operations	457		421		896		1,016
Subtotal Energy Services	(1,559)		1,764		(1,416)		2,477
Corporate and Services	(212)		(433)		(26)		(5,555)
Total Operating Income	$	20,191	$	8,866	$	185,953	$	143,419
Depreciation and Amortization:
SJI Utilities:
SJG Utility Operations	$	25,395	$	23,083	$	50,454	$	45,785
ETG Utility Operations	10,528		6,813		19,979		13,471
ELK Utility Operations	169		113		302		225
Subtotal SJI Utilities	36,092		30,009		70,735		59,481
Energy Group:
Wholesale Energy Operations	14		25		30		48
Subtotal Energy Group	14		25		30		48
Energy Services:
On-Site Energy Production	3		1,256		6		2,508
Subtotal Energy Services	3		1,256		6		2,508
Corporate and Services	1,197		1,754		2,437		2,998
Total Depreciation and Amortization	$	37,306	$	33,044	$	73,208	$	65,035
Interest Charges:
SJI Utilities:
SJG Utility Operations	$	8,019	$	7,896	$	15,561	$	15,744
ETG Utility Operations	7,778		6,620		14,923		12,941
ELK Utility Operations	7		5		19		11
Subtotal SJI Utilities	15,804		14,521		30,503		28,696
On-Site Energy Production	1,095		2,138		2,697		4,423
Midstream	580		555		1,160		1,099
Corporate and Services	12,955		14,659		30,842		30,063
Subtotal	30,434		31,873		65,202		64,281
Intersegment Borrowings	(1,845)		(3,439)		(4,077)		(7,194)
Total Interest Charges	$	28,589	$	28,434	$	61,125	$	57,087

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Income Taxes:
SJI Utilities:
SJG Utility Operations	$	1,219	$	671	$	26,450	$	24,368
ETG Utility Operations	(277)		(809)		10,344		6,093
ELK Utility Operations	54		(9)		190		154
Subtotal SJI Utilities	996		(147)		36,984		30,615
Energy Group:
Wholesale Energy Operations	1,719		(481)		3,725		(958)
Retail Electric Operations	(42)		(569)		(245)		(818)
Subtotal Energy Group	1,677		(1,050)		3,480		(1,776)
Energy Services:
On-Site Energy Production	(755)		121		294		(357)
Appliance Service Operations	178		136		345		303
Subtotal Energy Services	(577)		257		639		(54)
Midstream	(87)		(33)		(116)		(65)
Corporate and Services	(2,187)		(3,673)		(7,795)		(8,417)
Total Income Taxes	$	(178)	$	(4,646)	$	33,192	$	20,303
Property Additions:
SJI Utilities:
SJG Utility Operations	$	49,989	$	67,257	$	107,959	$	122,562
ETG Utility Operations	55,112		53,938		104,126		91,962
ELK Utility Operations	208		983		859		1,628
Subtotal SJI Utilities	105,309		122,178		212,944		216,152
Energy Services:
On-Site Energy Production	2,832		141		2,885		164
Subtotal Energy Services	2,832		141		2,885		164
Midstream	41		7		86		19
Corporate and Services	700		1		1,361		586
Total Property Additions	$	108,882	$	122,327	$	217,276	$	216,921

	June 30, 2020		December 31, 2019
Identifiable Assets:
SJI Utilities:
SJG Utility Operations	$	3,347,900	$	3,348,555
ETG Utility Operations	2,451,923		2,458,846
ELK Utility Operations	21,137		21,723
Subtotal SJI Utilities	5,820,960		5,829,124
Energy Group:
Wholesale Energy Operations	148,869		195,576
Retail Electric Operations	23,545		30,351
Subtotal Energy Group	172,414		225,927
Energy Services:
On-Site Energy Production	48,924		154,021
Appliance Service Operations	61		—
Subtotal Energy Services	48,985		154,021
Midstream	88,078		83,517
Discontinued Operations	1,737		1,766
Corporate and Services	182,348		403,170
Intersegment Assets	(97,568)		(332,185)
Total Identifiable Assets	$	6,216,954	$	6,365,340