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REVENUES
 12 Months Ended
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]  
REVENUES REVENUES:
At contract inception, SJI and SJG assess the goods and services promised in all of its contracts with customers, and identify a performance obligation for each promise to transfer to a customer a distinct good or service.

As applicable for each revenue stream and customer contract type, SJI and SJG follow two approaches:

•SJI and SJG have elected the practical expedient in ASC 606, Revenues from Contracts with Customers, for recognizing revenue on contracts with customers on a portfolio of performance obligations with similar characteristics, as we reasonably expect the effects of applying the guidance to the portfolio would not differ materially from applying it to individual contracts.

•SJI and SJG apply the accounting guidance for recognizing revenue on contracts with customers on a series of distinct goods and services as one performance obligation, as long as the distinct goods and services are part of a series that are substantially the same and satisfied over time, and the same method would be used to measure progress towards satisfaction of the performance obligation. All performance obligations noted below under "Revenue Recognized Over Time" apply this guidance.
Below is a listing of all performance obligations that arise from contracts with customers, along with details on the satisfaction of each performance obligation, the significant payment terms, and the nature of the goods and services being transferred:

Revenue Recognized Over Time:
Reportable SegmentPerformance ObligationDescription
SJG Utility Operations; ETG Utility Operations; ELK Utility Operations;
Wholesale Energy Operations;
Retail Gas and Other Operations
Natural Gas
SJG, ETG and, prior to its sale in July 2020 (see Note 1), ELK, sell natural gas to residential, commercial and industrial customers, and price is based on regulated tariff rates which are established by the BPU or the MPSC, as applicable. There is an implied contract with a customer for the purchase, delivery, and sale of gas, and the customer is billed monthly, with payment due within 30 days. Payments are received from certain customers based on a predetermined budget billing schedule. Budget billing does not represent a contract asset or liability but rather just a receivable/liability because there are no further performance obligations required to be satisfied before the Utilities have the right to collect/refund the customer’s consideration. Consideration is due when control of the energy is transferred to the customer and is satisfied with the passage of time. Budget billing liability balances are recorded within the customer advances line item in the balance sheet.

SJRG sells natural gas to commercial customers at either a fixed quantity or at variable quantities based on a customer's needs. Payment is due on the 25th of each month for the previous month's deliveries. SJE, prior to its sale in November 2018 (see Note 1) sold natural gas to commercial, industrial and residential customers at fixed prices throughout the life of the contract, with the customer billed monthly and payment due within 30 days. For all listed segments, revenue is currently being recognized over time based upon volumes delivered (i.e., unit of output) or through the passage of time ratably as the customer uses natural gas, which represents satisfaction of the performance obligation.
SJG Utility Operations; Wholesale Energy OperationsPipeline Transportation CapacitySJG and SJRG sell pipeline transportation capacity on a wholesale basis to various customers on the interstate pipeline system and transport natural gas purchased directly from producers or suppliers to their customers. These contracts to sell this capacity are at a price, quantity and time period agreed to by both parties determined on a contract by contract basis. Payment is due on the 25th of each month for the previous month's deliveries. Revenue is currently being recognized over time based upon volumes delivered (i.e., unit of output) or through the passage of time ratably coinciding with the delivery of gas and the customer obtaining control, which represents satisfaction of the performance obligation.
Wholesale Energy OperationsFuel Management ServicesSJRG currently has several fuel supply management contracts where SJRG has acquired pipeline transportation capacity that allows SJRG to match end users, many of which are merchant generators, with producers looking to find a long-term solution for their supply. Natural gas is sold to the merchant generator daily based on its needs, with payment made either weekly or biweekly depending on the contract. Revenue is currently being recognized over time based upon volumes delivered (i.e., unit of output) coinciding with the delivery of gas and the customer obtaining control, which represents satisfaction of the performance obligation.
Retail Electric OperationsElectricitySJE sells electricity to commercial, industrial and residential customers at fixed prices throughout the life of the contract, with the customer billed monthly and payment due within 30 days. Revenue is currently being recognized over time based upon volumes delivered (i.e., unit of output) or through the passage of time ratably coinciding with the delivery of electricity and the customer obtaining control, which represents satisfaction of the performance obligation.
On-Site Energy ProductionSolar
As of December 31, 2020, Marina has six wholly-owned solar projects (see Note 1). These projects earn revenue based on electricity generated. The customer is billed monthly as electricity is being generated, with payment due within 30 days. The performance obligation is satisfied as kilowatt hours of energy are generated (i.e., unit of output), which is when revenue is recognized.
On-Site Energy ProductionFuel CellThe Annadale fuel cell projects earn revenue based on electricity generated. The customer is billed monthly as electricity is being generated, with payment due within 30 days. The performance obligation is satisfied as kilowatt hours of energy are generated (i.e., unit of output), which is when revenue is recognized.
On-Site Energy ProductionMarina Thermal FacilityMarina sold MTF/ACB in February 2020, see Note 1. Prior to its sale, Marina had a contract with a casino and resort in Atlantic City, NJ to provide cooling, heating and emergency power. There were multiple performance obligations with this contract, including electric, chilled water and hot water, and each of these was considered distinct and separately identifiable performance obligations that were all priced separately. These performance obligations were satisfied over time ratably as they were used by the customer, who was billed monthly.
Corporate & ServicesEnergy Procurement Consulting ServicesAEP and EnerConnex provide energy procurement consulting services. These businesses match energy suppliers with end users and are paid commissions by energy suppliers. The commissions received on energy procurement contracts (whether received at the beginning of a contract or paid under monthly terms) are earned and recognized over the duration of the underlying contracts as energy usage occurs, which represents satisfaction of the performance obligation. The resulting contract liabilities are not material as of December 31, 2020 and 2019.


Revenue Recognized at a Point in Time:
Reportable SegmentPerformance ObligationDescription
On-Site Energy ProductionSRECsThe customer is billed based on a contracted amount of SRECs to be sold, with the price based on the market price of the SRECs at the time of generation. This does not represent variable consideration as the price is known and established at the time of generation and delivery to the customer. The performance obligation is satisfied at the point in time the SREC is delivered to the customer, which is when revenue is recognized. Payment terms are approximately 10 days subsequent to delivery.

For all revenue streams listed above, revenue is recognized using the practical expedient in ASC 606, which allows an entity to recognize revenue in the amount that is invoiced, as long as that amount corresponds to the value to the customer ("Invoiced Practical Expedient"). SJI's and SJG's contracts with customers discussed above are at prices that are known to the customer at the time of delivery, either through regulated tariff rates, a fixed contractual price or market prices that are established and tied to each delivery. These amounts match the value to the customer as they are purchasing and obtaining the good or service on the same day at the agreed-upon price. This eliminates any variable consideration in transaction price, and as a result revenue is recognized at this price at the time of delivery.

SJI and SJG have determined that the above methods provide a faithful depiction of the transfer of goods or services to the customer. For all above performance obligations, SJI's and SJG's efforts are expended throughout the contract based on seasonality and customer needs. Further, for various contracts among each performance obligation, SJI and SJG may have a stand ready obligation to provide goods or services on an as needed basis to the customer.

Because the Invoiced practical expedient is used for recognizing revenue, SJI and SJG further adopted the Practical Expedient in ASC 606 that allows both companies to not disclose additional information regarding remaining performance obligations.

SJI and SJG disaggregate revenue from contracts with customers into customer type and product line. SJI and SJG have determined that disaggregating revenue into these categories achieves the disclosure objective in ASC 606 to depict how the nature, timing and uncertainty of revenue and cash flows are affected by economic factors. Further, disaggregating revenue into these categories is consistent with information regularly reviewed by the CODM in evaluating the financial performance of SJI's operating segments. SJG only operates in the SJG Utility Operations segment. See Note 8 for further information regarding SJI's operating segments.
Disaggregated revenues from contracts with customers are disclosed below, by operating segment, for the years ended December 31, (in thousands):

2020
SJG Utility OperationsETG Utility OperationsELK Utility OperationsWholesale Energy OperationsRetail Electric OperationsOn-site Energy ProductionAppliance Service OperationsCorporate Services and IntersegmentTotal
Customer Type:
Residential$349,111 $223,221 $2,179 $— $— $— $1,978 $— $576,489 
Commercial & Industrial144,300 114,300 2,544 683,152 19,907 15,617 — (7,779)972,041 
OSS & Capacity Release7,673 — — — — — — — 7,673 
Other2,048 1,629 203 — — — — — 3,880 
$503,132 $339,150 $4,926 $683,152 $19,907 $15,617 $1,978 $(7,779)$1,560,083 
Product Line:
Gas$503,132 $339,150 $4,926 $683,152 $— $— $— $(7,544)$1,522,816 
Electric— — — — 19,907 — — (1,971)17,936 
Solar— — — — — 8,426 — — 8,426 
CHP— — — — — 3,502 — — 3,502 
Landfills— — — — — 3,689 — — 3,689 
Other— — — — — — 1,978 1,736 3,714 
$503,132 $339,150 $4,926 $683,152 $19,907 $15,617 $1,978 $(7,779)$1,560,083 


2019
SJG Utility OperationsETG Utility OperationsELK Utility OperationsWholesale Energy OperationsRetail Electric OperationsOn-site Energy ProductionAppliance Service OperationsCorporate Services and IntersegmentTotal
Customer Type:
Residential$356,646 $217,195 $3,494 $— $14,164 $— $2,042 $— $593,541 
Commercial & Industrial116,959 103,590 4,197 633,720 42,735 48,748 — (12,758)937,191 
OSS & Capacity Release8,951 — — — — — — — 8,951 
Other2,456 10,242 166 — — — — — 12,864 
$485,012 $331,027 $7,857 $633,720 $56,899 $48,748 $2,042 $(12,758)$1,552,547 
Product Line:
Gas$485,012 $331,027 $7,857 $633,720 $— $— $— $(5,433)$1,452,183 
Electric— — — — 56,899 — — (7,935)48,964 
Solar— — — — — 15,111 — — 15,111 
CHP— — — — — 27,993 — — 27,993 
Landfills— — — — — 5,644 — — 5,644 
Other— — — — — — 2,042 610 2,652 
$485,012 $331,027 $7,857 $633,720 $56,899 $48,748 $2,042 $(12,758)$1,552,547 
2018
SJG Utility OperationsETG Utility OperationsELK Utility OperationsWholesale Energy OperationsRetail Gas OperationsRetail Electric OperationsOn-site Energy ProductionAppliance Service OperationsCorporate Services and IntersegmentTotal
Customer Type:
Residential$329,207 $82,763 $1,482 $— $— $29,762 $— $1,957 $— $445,171 
Commercial & Industrial132,055 42,935 1,815 652,833 75,651 94,483 72,374 — (24,392)1,047,754 
OSS & Capacity Release11,536 — — — — — — — — 11,536 
Other2,699 2,949 65 — — — — — — 5,713 
$475,497 $128,647 $3,362 $652,833 $75,651 $124,245 $72,374 $1,957 $(24,392)$1,510,174 
Product Line:
Gas$475,497 $128,647 $3,362 $652,833 $75,651 $— $— $— $(10,181)$1,325,809 
Electric— — — — — 124,245 — — (7,904)116,341 
Solar— — — — — — 35,444 — (6,307)29,137 
CHP— — — — — — 30,473 — — 30,473 
Landfills— — — — — — 6,457 — — 6,457 
Other— — — — — — — 1,957 — 1,957 
$475,497 $128,647 $3,362 $652,833 $75,651 $124,245 $72,374 $1,957 $(24,392)$1,510,174 

The SJG balance is a part of the SJG Utility Operations segment, and is before intercompany eliminations with other SJI entities.

Revenues on the consolidated statements of income that are not with contracts with customers consist of (a) revenues from alternative revenue programs at the SJG, ETG and ELK utility operating segments (including CIP and WNC), (b) both utility and nonutility realized revenue from derivative contracts at the SJG and ETG Utility, Wholesale Energy, Retail Gas and Retail Electric operating segments, and (c) unrealized revenues from derivative contracts of the Wholesale Energy, Retail Gas and Retail Electric operating segments (see Note 16).

The Utilities' rate mechanisms that qualify as alternative revenue programs are described in Note 10. These mechanisms are subject to compliance filings on at least an annual basis, and the tariff rate adjustments are designed to occur over this compliance period. These rate mechanisms satisfy the criteria in ASC 980-605-25-4, as (a) each mechanism is established by order of the BPU for SJG and ETG, and the MPSC for ELK; (b) the amounts recoverable under each program are determined by tracking and are probable of recovery; and (c) the adjustments to tariff rates are designed to recover from or refund to customers within a 24 month period. For each individual rate reconciling mechanism, operating revenues are recognized when allowable costs are greater than the amounts billed in the current period and are reduced when allowable costs are less than amounts billed in the current period. Total revenues arising from alternative revenue programs at SJI were $38.1 million, $29.0 million and $13.8 million for the years ended December 31, 2020, 2019 and 2018, respectively. Total revenues arising from alternative revenue programs at SJG were $28.0 million, $34.8 million and $16.9 million for the years ended December 31, 2020, 2019 and 2018, respectively.
The following table provides information about SJI's and SJG's receivables and unbilled revenue from contracts with customers (in thousands):
Accounts Receivable (a)Unbilled Revenue (b)
SJI (including SJG and all other consolidated subsidiaries):
Beginning balance as of January 1, 2020$253,661 $84,821 
Ending balance as of December 31, 2020278,723 85,423 
Increase (Decrease)$25,062 $602 
Beginning balance as of January 1, 2019$337,502 $79,538 
Ending balance as of December 31, 2019253,661 84,821 
Increase (Decrease)$(83,841)$5,283 
SJG:
Beginning balance as of January 1, 2020$84,940 $45,016 
Ending balance as of December 31, 202088,657 46,837 
Increase (Decrease)$3,717 $1,821 
Beginning balance as of January 1, 2019$101,572 $43,271 
Ending balance as of December 31, 201984,940 45,016 
Increase (Decrease)$(16,632)$1,745 

(a) Included in Accounts Receivable in the consolidated balance sheets. A receivable is SJI's and SJG's right to consideration that is unconditional, as only the passage of time is required before payment is expected from the customer.

(b) Included in Unbilled Revenues in the consolidated balance sheets. All unbilled revenue for SJI and SJG arises from contracts with customers. Unbilled revenue relates to SJI's and SJG's right to receive payment for commodity delivered but not yet billed. This represents contract assets that arise from contracts with customers, which is defined in ASC 606 as the right to payment in exchange for goods already transferred to a customer, excluding any amounts presented as a receivable. The unbilled revenue is transferred to accounts receivable when billing occurs and the rights to collection become unconditional.