RELATED-PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2016

RELATED-PARTY TRANSACTIONS:

There have been no significant changes in the nature of SJG’s related-party transactions since December 31, 2015. See Note 5 to the Financial Statements in Item 8 of SJG’s Annual Report on Form 10-K for the year ended December 31, 2015 for a detailed description of the related parties and their associated transactions.

A summary of related-party transactions, excluding pass-through items, included in Operating Revenues were as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Operating Revenues/Affiliates:
SJRG	$	977	$	1,100	$	5,399	$	2,631
Marina	86		116		292		483
Total Operating Revenue/Affiliates	$	1,063	$	1,216	$	5,691	$	3,114

Related-party transactions, excluding pass-through items, included in Operating Expenses were as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Costs of Sales/Affiliates (Excluding depreciation)
SJRG	$	490	$	574	$	9,993	$	21,105
Energy-Related Derivative Losses / (Gains) *
SJRG	$	—	$	—	$	—	$	65

* Contracts used to hedge natural gas purchases. Included in Cost of Sales on the Condensed Statements of Income.



Operations Expense/Affiliates:
SJI	$	4,632		$	3,248		$	14,502		$	10,529
Millennium	703			695			2,098			2,048
Other	(48		)	(95		)	(154		)	(312		)
Total Operations Expense/Affiliates	$	5,287		$	3,848		$	16,446		$	12,265