UNUSED LINES OF CREDIT

6 Months Ended

Jun. 30, 2011

7.	UNUSED LINES OF CREDIT:

Credit facilities and available liquidity as of June 30, 2011 were as follows (in thousands):

	Total Facility		Usage		Available Liquidity		Expiration Date

Revolving Credit Facility	$	200,000	$	40,500	$	159,500	May 2015 (A) (B)
Uncommitted Bank Lines		20,000		20,000		-	Various

Total	$	220,000	$	60,500	$	159,500

(A) See Note 12 – Subsequent Event

(B) A new revolving credit facility was established by SJG in May 2011. The SJG facility is a $200.0 million, four-year facility, provided by a syndicate of banks. The facility contains one financial covenant limiting the ratio of indebtedness to total capitalization (as defined in the credit agreement) to not more than 0.65 to 1 measured at the end of each fiscal quarter. SJG was in compliance with this covenant as of June 30, 2011. This facility replaces SJG's $100.0 million revolving credit facility and $40.0 million committed line of credit, both of which would otherwise have expired in August of 2011. See Note 12.

Average borrowings outstanding under these credit facilities during the six months ended June 30, 2011 and 2010 were $37.6 million and $84.5 million, respectively. The maximum amount outstanding under these credit facilities during the six months ended June 30, 2011 and 2010 were $61.8 million and $112.5 million, respectively.

Based upon the existing credit facilities and a regular dialogue with our banks, we believe that there will continue to be sufficient credit available to meet our business' future liquidity needs. Borrowings under these credit facilities are at market rates. The weighted average borrowing cost, which changes daily, was 1.27% and 0.70% at June 30, 2011 and 2010, respectively.