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RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 31, 2011
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS:

We conducted business with our parent, SJI, and several other related parties. A description of each of these affiliates and related transactions is as follows:

SJI Services, LLC (SJIS) - a wholly owned subsidiary of SJI, provides services, such as information technology, human resources, government relations, corporate communications, materials purchasing and fleet management to SJI and all of its subsidiaries.

South Jersey Energy Solutions, LLC (SJES) - a wholly owned subsidiary of SJI that serves as a holding company for all of SJI’s nonutility operating businesses:

•
South Jersey Energy Company (SJE) - a wholly owned subsidiary of SJI and a third party energy marketer that acquires and markets natural gas and electricity to retail end users and provides total energy management services to commercial and industrial customers. We previously sold natural gas for resale to SJE and also provide them with billing services. For SJE’s residential customers, for which we perform billing services, we purchase the related accounts receivable at book value less a factor for potential uncollectible accounts, and assume all risk associated with collection.
•
South Jersey Resources Group, LLC (SJRG) - a wholly owned subsidiary of SJI and a wholesale gas and risk management business that supplies natural gas storage, commodity and transportation to retail marketers, utility businesses and electricity generators in the mid-Atlantic, Appalachian and southern states. We sell natural gas for resale and capacity release to SJRG and also meet some of our gas purchasing requirements by purchasing natural gas from SJRG. Additionally, SJRG manages our market risk associated with fluctuations in the cost of natural gas by entering into financial derivative contracts on our behalf. The gain or loss associated with these derivative contracts is included in our BGSS and in the SJRG receivable and payable amounts shown below
•
Marina Energy LLC (Marina) - a wholly owned subsidiary of SJI and developer, owner and operator of energy related projects. We provide natural gas transportation services to Marina under BPU-approved tariffs.
•
South Jersey Energy Service Plus, LLC (SJESP) - a wholly owned subsidiary of SJI and an appliance service and installation of heating and cooling systems company. We provide billing services to SJESP.

Millennium Account Services, LLC (Millennium) - a partnership between SJI and Conectiv Solutions, LLC, which reads our utility customers’ meters on a monthly basis for a fee.

Sales of gas to SJRG and SJE comply with Section 284.02 of the Regulations of the Federal Energy Regulatory Commission (FERC).

In addition to the above, we provide various administrative and professional services to SJI and each of the affiliates discussed above. Likewise, SJI and SJIS provide substantial administrative services on our behalf. For certain types of transactions, we served as central processing agents for the related parties discussed above. Amounts due to and due from these related parties for pass-through items are not considered material to the financial statements as a whole.

A summary of these related party transactions, excluding pass-through items, included in Operating Revenues were as follows (in thousands):

 
2011
 
2010
 
2009
Operating Revenues/Affiliates: 
 
 
 
 
 
SJRG
$
6,532

 
$
6,244

 
$
3,782

Other
716

 
464

 
456

Total Operating Revenues/Affiliates
$
7,248

 
$
6,708

 
$
4,238


Related party transactions, excluding pass-through items, included in Operating Expenses were as follows (in thousands):
 
 
2011
 
2010
 
2009
Costs of Sales/Affiliates
 

 
 

 
 

(Excluding depreciation):
 

 
 

 
 

SJRG
$
33,768

 
$
16,768

 
$
38,643

Derivative Losses (Gains) (See Note 1):
 
 
 
 
 
SJRG
$
12,872

 
$
23,526

 
$
51,856

Operations Expense/Affiliates
 
 
 
 
 

SJI
$
9,941

 
$
8,546

 
$
8,042

SJIS
4,956

 
5,174

 
4,768

Millennium
3,076

 
2,986

 
2,904

Other
(448
)
 
(244
)
 
(288
)
Total Operations Expense/Affiliates
$
17,525

 
$
16,462

 
$
15,426