PENSION AND OTHER POSTRETIREMENT BENEFITS

6 Months Ended

Jun. 30, 2011

PENSION AND OTHER POSTRETIREMENT BENEFITS [Abstract]

PENSION AND OTHER POSTRETIREMENT BENEFITS

8. PENSION AND OTHER POSTRETIREMENT BENEFITS:

For the three and six months ended  June 30, 2011 and 2010, net periodic benefit cost related to the employee and officer pension and other postretirement benefit plans consisted of the following components (in thousands):

	Pension Benefits
		Three Months Ended June 30,						Six Months Ended June 30,
		2011			2010			2011			2010
Service Cost		$	696		$	664		$	1,481		$	1,326
Interest Cost			1,775			1,815			3,601			3,559
Expected Return on Plan Assets			(1,726	)		(1,753	)		(3,541	)		(3,251	)
Amortizations:
Prior Service Cost			48			61			100			108
Actuarial Loss			1,048			776			2,057			1,838
Net Periodic Benefit Cost			1,841			1,563			3,698			3,580
Capitalized Benefit Costs			(902	)		(766	)		(1,812	)		(1,754	)
Total Net Periodic Benefit Expense		$	939		$	797		$	1,886		$	1,826

	Other Postretirement Benefits
		Three Months Ended June 30,						Six Months Ended June 30,
		2011			2010			2011			2010
Service Cost		$	164		$	166		$	379		$	365
Interest Cost			597			611			1,216			1,297
Expected Return on Plan Assets			(408	)		(431	)		(854	)		(769	)
Amortizations:
Prior Service Credits			(64	)		(67	)		(135	)		(141	)
Actuarial Loss			316			211			628			593
Net Periodic Benefit Cost			605			490			1,234			1,345
Capitalized Benefit Costs			(297	)		(240	)		(605	)		(659	)
Total Net Periodic Benefit Expense		$	308		$	250		$	629		$	686

Capitalized benefit costs reflected in the table above relate to our construction program.

No contributions were made to the pension plans during the six-month periods ending June 30, 2011. During May 2010, we contributed $6.4 million to our pension plans. We expect to make no contributions to our pension plans in 2011; however, changes in future investment performance and discount rates may ultimately result in a contribution.  We also have a regulatory obligation to contribute approximately $3.6 million annually to our other postretirement benefit plans' trusts, less costs incurred directly by us.

See Note 11 to the Financial Statements in Item 8 of SJG's Form 10-K as of December 31, 2010 for additional information related to SJG's pension and other postretirement benefits.