UNUSED LINES OF CREDIT:

Credit facilities and available liquidity as of June 30, 2012 were as follows (in thousands):



Company	Total Facility		Usage		Available Liquidity		Expiration Date
SJG:
Commercial Paper Program/Revolving Credit Facility	$	200,000	$	153,500	$	46,500	May 2015
Uncommitted Bank Lines (B)	10,000		—		10,000		August 2012

Total SJG	210,000		153,500		56,500

SJI:

Revolving Credit Facility	$	300,000	$	138,700	$	161,300	April 2015 (A)
Term Line of Credit (C)	50,000		50,000		—		November 2013

Total SJI	350,000		188,700		161,300

Total	$	560,000	$	342,200	$	217,800

(A) Includes letters of credit outstanding in the amount of $18.9 million.

(B) SJG reduced the uncommitted bank lines by $10.0 million during 2012. SJG anticipates renewing the remaining line of credit during the third quarter 2012.

The SJG facilities are restricted as to use and availability specifically to SJG; however, if necessary, the SJI facilities can also be used to support SJG’s liquidity needs. Borrowings under these credit facilities are at market rates. The weighted average interest rate on these borrowings, which changes daily, was 0.95% and 1.43% at June 30, 2012 and 2011, respectively. Average borrowings outstanding under these credit facilities, not including letters of credit, during the six months ended June 30, 2012 and 2011 were $376.2 million and $192.4 million, respectively. The maximum amounts outstanding under these credit facilities, not including letters of credit, during the six months ended June 30, 2012 and 2011 were $462.2 million and $258.4 million, respectively.

The SJI and SJG facilities are provided by a syndicate of banks and contain one financial covenant limiting the ratio of indebtedness to total capitalization (as defined in the respective credit agreements) to not more than 0.65 to 1, measured at the end of each fiscal quarter. SJI and SJG were in compliance with this covenant as of June 30, 2012.

During the third quarter of 2011, SJG began a commercial paper program under which SJG may issue short-term, unsecured promissory notes to qualified investors up to a maximum aggregate amount outstanding at any time of $200.0 million. The notes have fixed maturities which vary by note, but may not exceed 270 days from the date of issue. Proceeds from the notes are used for general corporate purposes. SJG uses the commercial paper program in tandem with the $200.0 million revolving credit facility and does not expect the principal amount of borrowings outstanding under the commercial paper program and the credit facility at any time to exceed an aggregate of $200.0 million.