DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of active interest rate swaps

As of December 31, 2016, SJG’s active interest rate swaps were as follows:

Notional Amount		Fixed Interest Rate		Start Date	Maturity	Type of Debt	Obligor
$	12,500,000	3.53	%	12/1/2006	2/1/2036	Tax-exempt	SJG
$	12,500,000	3.43	%	12/1/2006	2/1/2036	Tax-exempt	SJG

Fair value of derivative instruments

The fair values of all derivative instruments, as reflected in the balance sheets as of December 31, 2016 and 2015, are as follows (in thousands):

Derivatives not designated as hedging instruments under GAAP	2016				2015
	Assets		Liabilities		Assets		Liabilities
Energy related commodity contracts:
Derivatives – Energy Related – Current	$	5,434	$	1,372	$	1,077	$	5,489
Derivatives – Energy Related – Non-Current	373		—		64		351
Interest rate contracts:
Derivatives – Other Current			386				—
Derivatives – Other Noncurrent	—		6,979		—		7,631
Total derivatives not designated as hedging instruments under GAAP	$	5,807	$	8,737	$	1,141	$	13,471

Offsetting arrangements

As of December 31, 2016, and 2015, information related to these offsetting arrangements were as follows (in thousands):

As of December 31, 2016
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
Derivatives - Energy Related Assets	$	5,807		$	—	$	5,807		$	(6	)	(A)	$	(3,587	)	$	2,214
Derivatives - Energy Related Liabilities	$	(1,372	)	$	—	$	(1,372	)	$	6		(B)	$	—		$	(1,366	)
Derivatives - Other	$	(7,365	)	$	—	$	(7,365	)	$	—			$	—		$	(7,365	)

As of December 31, 2015
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
Derivatives - Energy Related Assets	$	1,141		$	—	$	1,141		$	(399	)	(A)	$	—	$	742
Derivatives - Energy Related Liabilities	$	(5,840	)	$	—	$	(5,840	)	$	399		(B)	$	5,025	$	(416	)
Derivatives - Other	$	(7,631	)	$	—	$	(7,631	)	$	—			$	—	$	(7,631	)

(A) The balances at December 31, 2016 and 2015 were related to derivative liabilities which can be net settled against derivative assets.

(B) The balances at December 31, 2016 and 2015 were related to derivative assets which can be net settled against derivative liabilities.

Effect of derivative instruments on the statements of income

The effect of derivative instruments on the statements of income for 2016 , 2015 and 2014 are as follows (in thousands):

	Year ended December 31,
Derivatives in Cash Flow Hedging Relationships	2016			2015			2014
Interest Rate Contracts:
Losses reclassified from accumulated OCI into income (a)	$	(46	)	$	(46	)	$	(46	)

(a) Included in Interest Charges