LONG-TERM DEBT:

A schedule of our long-term debt as of December 31, including current maturities, is as follows (in thousands):



			2011			2010
Long-Term Debt (A):
First Mortgage Bonds: (B)
6.74	%	Series due 2011 (C)	$	—		$	10,000
6.57	%	Series due 2011 (C)	—			15,000
4.46	%	Series due 2013	10,500			10,500
5.027	%	Series due 2013	14,500			14,500
4.52	%	Series due 2014	11,000			11,000
5.115	%	Series due 2014	10,000			10,000
5.387	%	Series due 2015	10,000			10,000
5.437	%	Series due 2016	10,000			10,000
4.60	%	Series due 2016	17,000			17,000
4.657	%	Series due 2017	15,000			15,000
7.97	%	Series due 2018	10,000			10,000
7.125	%	Series due 2018	20,000			20,000
5.587	%	Series due 2019	10,000			10,000
3.63	%	Series due 2025	10,000			10,000
4.84	%	Series due 2026	15,000			15,000
4.93	%	Series due 2026	45,000			45,000
4.03	%	Series due 2027	45,000			45,000
7.70	%	Series due 2027 (E)	35,000			35,000
5.55	%	Series due 2033	32,000			32,000
6.213	%	Series due 2034	10,000			10,000
5.45	%	Series due 2035	10,000			10,000
Series A 2006 Tax-Exempt First Mortgage Bonds
Variable Rate, due 2036 (D)			25,000			25,000
Total Long-Term Debt Outstanding			365,000			390,000
Less Current Maturities (A) (D)			(2,187		)	(50,000		)
Long-Term Debt			$	362,813		$	340,000


(A)	Long-term debt maturities and sinking funds requirements for the succeeding five years are as follows (in thousands): 2012, $2,187; 2013, $27,188; 2014, $23,187; 2015, $13,096; 2016, $30,097 (See Note (D) below). Our long-term debt agreements contain no financial covenants.


(B)	Our First Mortgage dated October 1, 1947, as supplemented, securing the First Mortgage Bonds constitutes a direct first mortgage lien on substantially all utility plant.


(C)	On July 15, 2011, SJG retired its 6.74% and 6.57% Medium Term Notes (MTN), at par.

(D)

These variable rate demand bonds bear interest at a floating rate that resets weekly. The interest rate as of December 31, 2011 was 0.12%. Liquidity support on these bonds was provided by a letter of credit from a commercial bank that would have expired in August 2011, and as such, these bonds were included in the current portion of long-term debt as of December 31, 2010. Liquidity support is now provided under a separate letter of credit facility that expires in August, 2015. Consequently, these bonds are now included in long-term debt as of December 31, 2011. These bonds contain no financial covenants.


(E)	See Note 16 - Subsequent Event.

During 2010, SJG issued $115.0 million aggregate principal amount of its Medium Term Notes in private placements due 2025, 2026 and 2027 and retired its $10.0 million, 6.12% Medium Term Notes at par. In 2011, SJG entered into an arrangement to issue Medium Term Notes under a private placement in an aggregate principal amount of $35.0 million. SJG expects to issue this debt in April 2012. Also in 2011, SJG repaid $25.0 million of First Mortgage Bonds. As of September 30, 2011 the $150.0 million Medium Term Note program that was approved by the BPU in September 2009 expired. In December 2011, SJG received approval from the BPU to issue up to $200.0 million in long-term debt under its MTN program by September 30, 2014.

We estimated the fair values of our long-term debt, including current maturities, as of December 31, 2011 and 2010, to be $472.0 million and $455.5 million, respectively. Carrying amounts as of both December 31, 2011 and 2010 are $365.0 million and $390.0 million, respectively. We base the estimates on interest rates available to us at the end of each year for debt with similar terms and maturities. We retire debt when it is cost effective as permitted by the debt agreements.