RATES AND REGULATORY ACTIONS

9 Months Ended

Sep. 30, 2011

RATES AND REGULATORY ACTIONS [Abstract]

RATES AND REGULATORY ACTIONS

RATES AND REGULATORY ACTIONS:

SJG is subject to the rules and regulations of the New Jersey Board of Public Utilities (BPU).   The BPU approved an extension of the Capital Investment Recovery Tracker (CIRT II) program in March 2011, allowing the Company to accelerate an additional $60.3 million of capital spending into 2011 and 2012.  Under CIRT II, the Company capitalizes our return on CIRT II investments until they are recovered in rate base as utility plant in service.  In June 2011 the Company filed a petition with the BPU requesting recovery of CIRT II investments through a 0.5% increase in base rates. This petition is currently pending.

In October 2011, the Company filed a petition with the BPU requesting an additional extension of the CIRT II program allowing the Company to accelerate an additional $40.0 million of capital spending into 2012 and $50.0 million of spending into 2013. The petition also requests recovery of the $40.0 million investment in 2012 through a 0.91% increase in base rates effective January 2013. This petition is also currently pending.

In March 2011, SJG credited the accounts of our Basic Gas Supply Service (BGSS) customers with refunds totaling $21.1 million due to actual gas costs being lower than projected.

In September 2011, the BPU approved, on a provisional basis, the Company's request to reduce its BGSS rates by 2.9% and its Conservation Incentive Program (CIP) rates by 2.5%, effective October 2011.

In June 2011, the Company filed its annual Energy Efficiency Tracker (EET) petition, requesting a 0.5% increase.  These petitions are currently pending.

There have been no other significant regulatory actions or changes to SJG’s rate structure since December 31, 2010.  See Note 3 to the Financial Statements in Item 8 of SJG’s Form 10-K as of December 31, 2010.