8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

____________________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 16, 2010

South Jersey Gas Company

(Exact name of registrant as specified in its charter)

New Jersey	0-222111	21-0398330
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

One South Jersey Plaza, Route 54, Folsom, NJ 08037

(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: (609) 561-9000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act.

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act.

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.

o Pre-commencement communications pursuant to Rule 13(3)-4(c) under the Exchange Act.

Item 8.01. Other Events.

On September 16, 2010 South Jersey Gas Company (“SJG”) announced that it had reached an agreement with the New Jersey Board of Public Utilities (“NJBPU”) regarding its Gas Base Rate Case proceedings.  SJG is a subsidiary of South Jersey Industries, Inc.  (SJI:NYSE).  The press release is filed herewith as Exhibit 99.1 and hereby incorporated by reference.

Item 9.01. Financial Statements and Exhibits.

Exhibits

Exhibit Number Exhibit

99.1 Press release dated September 16, 2010 issued by South Jersey Gas Company.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	SOUTH JERSEY GAS COMPANY
Date: September 17, 2010	By:	/s/ David A. Kindlick
		Name:  David A. Kindlick
		Title:  Senior Vice President and Chief Financial Officer

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EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

MEDIA CONTACT: JOANNE BRIGANDI, x4240

IR CONTACT:  STEPHEN H. CLARK, x4260

PHONE: 609-561-9000

SEPTEMBER 16, 2010

NJBPU Approves Rate Changes for SJG

Will Benefit Customers and Shareholders

FOLSOM, N.J. – The New Jersey Board of Public Utilities today announced that it has approved changes to South Jersey Gas’ rates that will produce a 3.4 percent decrease in customers’ natural gas bills. This reduction resulted from a collaborative effort among SJG, BPU staff and the Division of Rate Counsel.

The total net reduction in rates will amount to $19.1 million. A typical residential customer, using 100 therms of gas in a winter month, will see a decrease of $4.91 on their monthly bill from $142.56 to $137.64.  The average residential heating customer using 804 therms annually will experience a decrease of $34.88 in their annual energy costs.

The change in rates resulted from two primary components. First, the BPU approved reductions in two of SJG’s rate clauses totaling approximately $39.1 million. Almost all of this amount reflects a reduction in SJG’s Basic Gas Supply Service rates, which has no impact on the utility’s net income. Second, the BPU approved base rates that will add $10.9 million to SJG’s net income annually, reflecting a return on the more than $450 million the company invested to improve its distribution system over the past six years. As approved, SJG’s new base rates were based upon a 51.2 percent equity component in SJG’s capital structure, and a 10.3 percent return on equity.

“We can pass along lower rates because of our ability to purchase lower priced wholesale gas, coupled with effective gas supply portfolio management,”said Edward J. Graham, president and CEO of SJG.  “The infrastructure improvements that we have made support consumers’ ongoing and future demand for natural gas while ensuring that we continue to provide safe, reliable service,” added Graham. “We’re extremely pleased with these rate changes as they benefit both customers and shareholders. The settlement gives us the opportunity to earn on the infrastructure we’ve added and at the same time, provide a total net rate reduction to our customers.”

[MORE]

SJG - Rate Clause Add 1

South Jersey Gas is the principal subsidiary of South Jersey Industries (NYSE:SJI) and provides natural gas service to about 344,000 residential, commercial and industrial customers in Atlantic, Cape May, Cumberland, Salem, and significant portions of Gloucester, Burlington and Camden counties in New Jersey. Visit http://www.southjerseygas.com to learn more about South Jersey Gas and its programs.

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