SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2020

ARO activity for the nine months ended September 30, 2020 as follows (in thousands):


SJI (includes SJG and all other consolidated subsidiaries):	2020
ARO as of January 1,	$	263,950
Accretion	7,129
Additions	3,266
Settlements	(6,195)
Revisions in Estimated Cash Flows (A)	(72,432)
ARO as of September 30,	$	195,718

SJG:	2020
ARO as of January 1,	$	96,509
Accretion	3,078
Additions	1,161
Settlements	(1,142)
Revisions in Estimated Cash Flows (A)	(18,751)
ARO as of September 30,	$	80,855

(A) The revisions in estimated cash flows for SJI and SJG for the nine months ended September 30, 2020 shown in the table above reflect decreases in the estimated retirement costs primarily as a result of changes in contractor costs to settle the ARO liability. Corresponding entries were made to Regulatory Assets and Utility Plant, thus having no impact on earnings.

Schedule of Asset Management Agreement Contract Purchase

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