DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

As of December 31, 2021, SJI and SJG had outstanding derivative contracts as follows:

	SJI Consolidated	SJG
Derivative contracts intended to limit exposure to market risk to:
Expected future purchases of natural gas (in MMdts)	96.7	10.3
Expected future sales of natural gas (in MMdts)	130.2	0.8
Basis and Index related net purchase/(sale) contracts (in MMdts)	72.1	1.5

Summary of Interest Rate Swaps

As of December 31, 2021, SJG's active interest rate swaps were as follows:

Notional Amount		Fixed Interest Rate	Start Date	Maturity
$	12,500,000	3.530%	12/1/2006	2/1/2036
$	12,500,000	3.430%	12/1/2006	2/1/2036

Fair Value of Derivative Instruments

The fair values of all derivative instruments, none of which are designated as hedging instruments under GAAP, as reflected in the consolidated balance sheets as of December 31, are as follows (in thousands):

SJI (includes SJG and all other consolidated subsidiaries):
	December 31, 2021				December 31, 2020
	Assets		Liabilities		Assets		Liabilities
Energy-related commodity contracts:
Derivatives - Energy Related - Current	$	95,041	$	60,002	$	41,439	$	27,006
Derivatives - Energy Related - Noncurrent	22,488		16,079		6,935		4,947
Interest rate contracts:
Derivatives - Other - Current	—		568		—		659
Derivatives - Other - Noncurrent	—		7,432		—		9,279
Total Derivatives	$	117,529	$	84,081	$	48,374	$	41,891

SJG:
	December 31, 2021				December 31, 2020
	Assets		Liabilities		Assets		Liabilities
Energy-related commodity contracts:
Derivatives – Energy Related – Current	$	9,396	$	2,520	$	4,053	$	2,868
Derivatives – Energy Related – Noncurrent	507		324		87		190
Interest rate contracts:
Derivatives - Other - Current	—		568		—		659
Derivatives - Other - Noncurrent	—		7,432		—		9,279
Total Derivatives	$	9,903	$	10,844	$	4,140	$	12,996

Offsetting Arrangements

As of December 31, 2021 and 2020, information related to these offsetting arrangements were as follows (in thousands):

As of December 31, 2021
Description	Gross amounts of recognized assets/liabilities		Gross amount offset in the balance sheet		Net amounts of assets/liabilities in balance sheet		Gross amounts not offset in the balance sheet					Net amount
							Financial Instruments			Cash Collateral Posted
SJI (includes SJG and all other consolidated subsidiaries):
Derivatives - Energy Related Assets	$	117,529	$	—	$	117,529	$	(57,804)	(A)	$	(32,782)	$	26,943
Derivatives - Energy Related Liabilities	$	(76,081)	$	—	$	(76,081)	$	57,804	(B)	$	—	$	(18,277)
Derivatives - Other	$	(8,000)	$	—	$	(8,000)	$	—		$	—	$	(8,000)
SJG:
Derivatives - Energy Related Assets	$	9,903	$	—	$	9,903	$	(1,780)	(A)	$	—	$	8,123
Derivatives - Energy Related Liabilities	$	(2,844)	$	—	$	(2,844)	$	1,780	(B)	$	—	$	(1,064)
Derivatives - Other	$	(8,000)	$	—	$	(8,000)	$	—		$	—	$	(8,000)

As of December 31, 2020
Description	Gross amounts of recognized assets/liabilities		Gross amount offset in the balance sheet		Net amounts of assets/liabilities in balance sheet		Gross amounts not offset in the balance sheet					Net amount
							Financial Instruments			Cash Collateral Posted
SJI (includes SJG and all other consolidated subsidiaries):
Derivatives - Energy Related Assets	$	48,374	$	—	$	48,374	$	(24,027)	(A)	$	—	$	24,347
Derivatives - Energy Related Liabilities	$	(31,953)	$	—	$	(31,953)	$	24,027	(B)	$	2,176	$	(5,750)
Derivatives - Other	$	(9,938)	$	—	$	(9,938)	$	—		$	—	$	(9,938)
SJG:
Derivatives - Energy Related Assets	$	4,140	$	—	$	4,140	$	(716)	(A)	$	—	$	3,424
Derivatives - Energy Related Liabilities	$	(3,058)	$	—	$	(3,058)	$	716	(B)	$	2,176	$	(166)
Derivatives - Other	$	(9,938)	$	—	$	(9,938)	$	—		$	—	$	(9,938)

(A) The balances at December 31, 2021 and 2020 were related to derivative liabilities which can be net settled against derivative assets.

(B) The balances at December 31, 2021 and 2020 were related to derivative assets which can be net settled against derivative liabilities.

Effect of Derivatives on Income

The effect of derivative instruments on the consolidated statements of income for the year ended December 31 is as follows (in thousands):

Derivatives Previously in Cash Flow Hedging Relationships under GAAP (a)	2021		2020		2019
SJI (includes SJG and all other consolidated subsidiaries):
Interest Rate Contracts:
Losses reclassified from AOCL into income (b)	$	(46)	$	(46)	$	(46)
SJG:
Interest Rate Contracts:
Losses reclassified from AOCL into income (b)	$	(46)	$	(46)	(46)

(a) See "Derivative Instruments" in Note 1

(b) Included in Interest Charges

Derivatives Not Designated as Hedging Instruments under GAAP	2021		2020		2019
SJI (no balances for SJG; includes all other consolidated subsidiaries):
Gains (Losses) on energy-related commodity contracts (a)	$	5,567	$	385	$	(11,748)
Gains (Losses) on interest rate contracts (b)	—		4,760		(2,798)
Total	$	5,567	$	5,145	$	(14,546)

(a)  Included in Operating Revenues - Nonutility

(b)  Included in Interest Charges