PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)

12 Months Ended

Dec. 31, 2012

Compensation and Retirement Disclosure [Abstract]

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
	2012			2011			2010
Service Cost	$	4,533		$	3,918		$	3,426
Interest Cost	9,622			9,524			9,197
Expected Return on Plan Assets	(10,341		)	(9,367		)	(8,402		)
Amortizations:
Prior Service Cost	251			267			280
Actuarial Loss	7,629			5,440			4,751
Net Periodic Benefit Cost	11,694			9,782			9,252
ERIP Costs	—			102			—
Capitalized Benefit Costs	(4,684		)	(3,661		)	(3,445		)
Total Net Periodic Benefit Expense	$	7,010		$	6,223		$	5,807



	Other Postretirement Benefits
	2012			2011			2010
Service Cost	$	1,037		$	996		$	920
Interest Cost	3,001			3,201			3,267
Expected Return on Plan Assets	(2,105		)	(2,248		)	(1,937		)
Amortizations:
Prior Service Credits	(283		)	(355		)	(355		)
Actuarial Loss	1,725			1,654			1,495
Net Periodic Benefit Cost	3,375			3,248			3,390
Capitalized Benefit Costs	(1,340		)	(1,222		)	(1,295		)
Total Net Periodic Benefit Expense	$	2,035		$	2,026		$	2,095

Schedule Defined Benefit Plans, Changes in Regulatory Assets and Accumulated Other Comprehensive Income (Loss)

Details of the activity within the Regulatory Asset and Accumulated Other Comprehensive Loss associated with Pension and Other Postretirement Benefits are as follows (in thousands):



	Regulatory Assets						Accumulated Other Comprehensive Loss (pre-tax)
	Pension Benefits			Other Postretirement Benefits			Pension Benefits			Other Postretirement Benefits
Balance at January 1, 2011	$	47,197		$	21,064		$	23,763		$	3,166

Amounts Arising during the Period:
Net Actuarial Loss	17,861			6,060			10,436			1,567
Prior Service Cost	—			524			—			104
Amounts Amortized to Net Periodic Costs:
Net Actuarial Loss	(3,028		)	(1,467		)	(2,386		)	(186		)
Prior Service (Cost) Credit	(219		)	254			(47		)	94

Balance at December 31, 2011	61,811			26,435			31,766			4,745

Amounts Arising during the Period:
Net Actuarial (Gain) Loss	11,599			2,089			6,811			(446		)
Amounts Amortized to Net Periodic Costs:
Net Actuarial Loss	(4,490		)	(1,535		)	(3,103		)	(187		)
Prior Service (Cost) Credit	(207		)	195			(43		)	83

Balance at December 31, 2012	$	68,713		$	27,184		$	35,431		$	4,195

Schedule of Amounts in Regulatory Assets to be Recognized over Next Fiscal Year

The estimated costs that will be amortized from Regulatory Assets into net periodic benefit costs in 2013 are as follows (in thousands):



	Pension Benefits		Other Postretirement Benefits
Prior Service Costs (Credits)	$	206	$	(195	)
Net Actuarial Loss	$	5,141	$	1,605

Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year

The estimated costs that will be amortized from Accumulated Other Comprehensive Loss into net periodic benefit costs in 2013 are as follows (in thousands):



	Pension Benefits		Other Postretirement Benefits
Prior Service Costs (Credits)	$	44	$	(89	)
Net Actuarial Loss	$	3,599	$	257

Schedule of Net Funded Status and Amounts Recognized in Balance Sheet

A reconciliation of the plans' benefit obligations, fair value of plan assets, funded status and amounts recognized in SJI's consolidated balance sheets follows (in thousands):



	Pension Benefits						Other Postretirement Benefits
	Pension Benefits						Other Postretirement Benefits
	2012			2011			2012			2011
Change in Benefit Obligations:
Benefit Obligation at Beginning of Year	$	194,990		$	167,500		$	64,451		$	58,465
Service Cost	4,533			3,918			1,037			996
Interest Cost	9,622			9,524			3,001			3,201
Actuarial Loss	23,952			22,162			3,861			5,018
Retiree Contributions	—			—			342			370
Plan Amendments	—			102			—			631
Benefits Paid	(8,708		)	(8,216		)	(3,913		)	(4,230		)
Benefit Obligation at End of Year	$	224,389		$	194,990		$	68,779		$	64,451

Change in Plan Assets:
Fair Value of Plan Assets at Beginning of Year	$	116,718		$	120,600		$	31,896		$	32,119
Actual Return on Plan Assets	15,935			3,114			4,263			(373		)
Employer Contributions	26,215			1,220			3,444			4,010
Retiree Contributions	—			—			342			370
Benefits Paid	(8,708		)	(8,216		)	(3,913		)	(4,230		)
Fair Value of Plan Assets at End of Year	$	150,160		$	116,718		$	36,032		$	31,896


Funded Status at End of Year:	$	(74,229	)	$	(78,272	)	$	(32,747	)	$	(32,555	)
Amounts Related to Unconsolidated Affiliate	161			245			375			286
Accrued Net Benefit Cost at End of Year	$	(74,068	)	$	(78,027	)	$	(32,372	)	$	(32,269	)

Amounts Recognized in the Statement of Financial Position Consist of:
Current Liabilities	$	(1,272	)	$	(1,275	)	$	—		$	—
Noncurrent Liabilities	(72,796		)	(76,752		)	(32,372		)	(32,269		)
Net Amount Recognized at End of Year	$	(74,068	)	$	(78,027	)	$	(32,372	)	$	(32,269	)

Amounts Recognized in Regulatory Assets Consist of:
Prior Service Costs	$	842		$	1,049		$	758		$	563
Net Actuarial Loss	67,871			60,762			26,426			25,872
	$	68,713		$	61,811		$	27,184		$	26,435

Amounts Recognized in Accumulated Other Comprehensive Loss Consist of (pre-tax):
Prior Service Costs (Credit)	$	111		$	153		$	68		$	(14	)
Net Actuarial Loss	35,320			31,613			4,127			4,759
	$	35,431		$	31,766		$	4,195		$	4,745

Schedule of Assumptions Used

The weighted-average assumptions used to determine benefit obligations at December 31 were:



	Pension Benefits				Other Postretirement Benefits
	2012		2011		2012		2011
Discount Rate	4.26	%	5.03	%	4.14	%	4.92	%
Rate of Compensation Increase	3.25	%	3.25	%	3.25	%	3.25	%

The weighted-average assumptions used to determine net periodic benefit cost for years ended December 31 were:



	Pension Benefits						Other Postretirement Benefits
	2012		2011		2010		2012		2011		2010
Discount Rate	5.03	%	5.78	%	6.22	%	4.92	%	5.55	%	6.22	%
Expected Long-Term Return on Plan Assets	7.50	%	8.00	%	7.75	%	6.60	%	7.00	%	6.80	%
Rate of Compensation Increase	3.25	%	3.25	%	3.60	%	3.25	%	3.25	%	3.60	%

Schedule of Health Care Cost Trend Rates

The assumed health care cost trend rates at December 31 were:



	2012		2011
Medical Care and Drug Cost Trend Rate Assumed for Next Year	7.00	%	7.50	%
Dental Care Cost Trend Rate Assumed for Next Year	4.75	%	4.75	%
Rate to which Cost Trend Rates are Assumed to Decline (the Ultimate Trend Rate)	4.75	%	4.75	%
Year that the Rate Reaches the Ultimate Trend Rate	2019		2019

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

Assumed health care cost trend rates have a significant effect on the amounts reported for SJI's postretirement health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects (in thousands):



	1-Percentage- Point Increase		1-Percentage- Point Decrease
Effect on the Total of Service and Interest Cost	$	256	$	(181	)
Effect on Postretirement Benefit Obligation	$	3,263	$	(2,721	)

Schedule of Allocation of Plan Assets

The fair values of SJI's pension plan assets at December 31, 2012 and 2011 by asset category are as follows (in thousands):



Asset Category	Total		Level 1		Level 2		Level 3
As of December 31, 2012
Cash / Cash Equivalents:
Common/Collective Trust Funds (a)	$	600	$	—	$	600	$	—
STIF-Type Instrument (b)	1,056		—		1,056		—
Equity securities:
Common/Collective Trust Funds - U.S. (a)	42,373		—		42,373		—
Common/Collective Trust Funds - International (a)	29,491		—		29,491		—
U.S. Large-Cap (c)	8,963		8,963		—		—
U.S. Mid-Cap (c)	5,275		5,275		—		—
U.S. Small-Cap (c)	10		10		—		—
International (c)	1,838		1,838		—		—
Fixed Income:
Common/Collective Trust Funds (a)	38,880		—		38,880		—
Guaranteed Insurance Contract (d)	12,449		—		—		12,449
Other types of investments:
Private Equity Fund (e)	3,216		—		—		3,216
Common/Collective Trust Fund - Real Estate (f)	6,009		—		—		6,009
Total	$	150,160	$	16,086	$	112,400	$	21,674



Asset Category	Total		Level 1		Level 2		Level 3
As of December 31, 2011
Cash / Cash Equivalents:
Common/Collective Trust Funds (a)	$	685	$	—	$	685	$	—
STIF-Type Instrument (b)	1,036		—		1,036		—
Equity securities:
Common/Collective Trust Funds - U.S. (a)	32,957		—		32,957		—
Common/Collective Trust Funds - International (a)	16,263		—		16,263		—
U.S. Large-Cap (c)	6,840		6,840		—		—
U.S. Mid-Cap (c)	6,097		6,097		—		—
International (c)	2,137		2,137		—		—
Fixed Income:
Common/Collective Trust Funds (a)	29,757		—		29,757		—
Guaranteed Insurance Contract (d)	12,274		—		—		12,274
Other types of investments:
Private Equity Fund (e)	3,212		—		—		3,212
Common/Collective Trust Fund - Real Estate (f)	5,460		—		—		5,460
Total	$	116,718	$	15,074	$	80,698	$	20,946

(a)

This category represents common/collective trust fund investments through a commingled employee benefit trust (excluding real estate). These commingled funds are not traded publicly; however, the majority of the underlying assets held in these funds are stocks and bonds that are traded on active markets and prices for these assets are readily observable. Also included in these funds are interest rate swaps, asset-backed securities, mortgage-backed securities and other investments with observable market values. Holdings in these commingled funds are classified as Level 2 investments.

(b)

This category represents short-term investment funds held for the purpose of funding disbursement payment arrangements. Underlying assets are valued based on quoted prices in active markets, or where quoted prices are not available, based on models using observable market information. Since not all values can be obtained from quoted prices in active markets, these funds are classified as Level 2 investments.


(c)	This category of equity investments represents a managed portfolio of common stock investments in five sectors: telecommunications, electric utilities, gas utilities, water and energy. These common stocks are actively traded on exchanges and price quotes for these shares are readily available. These common stocks are classified as Level 1 investments.

(d)

This category represents SJI's Group Annuity contracts with a nationally recognized life insurance company. The contracts are the assets of the plan, while the underlying assets of the contracts are owned by the contract holder. Valuation is based on a formula and calculation specified within the contract. Since the valuation is based on the reporting enity's own assumptions, these contracts are classified as Level 3 investments.

(e)

This category represents a limited partnership/commingled trust which includes several investments in U.S. leveraged buyout, venture capital, and special situation funds. Fund valuations are reported on a 90 day lag and, therefore, the value reported herein represents the market value as of September 30, 2012 and 2011, respectively. The fund's investments are stated at fair value, which is generally based on the valuations provided by the general partners or managers of such investments. Fund investments are illiquid and resale is restricted. These funds are classified as Level 3 investments.

(f)

This category represents real estate common/collective trust fund investments through a commingled employee benefit trust. These commingled funds are part of a direct investment in a pool of real estate properties. These funds are valued by investment managers on a periodic basis using pricing models that use independent appraisals from sources with professional qualifications. Since these valuation inputs are not highly observable, the real estate funds are classified as Level 3 investments.

The fair values of SJI's other postretirement benefit plan assets at December 31, 2012 and 2011 by asset category are as follows (in thousands):



Asset Category	Total		Level 1		Level 2		Level 3
As of December 31, 2012:
Equity Securities:
Common/Collective Trust Funds - U.S. (a)	$	10,992	$	—	$	10,992	$	—
Common/Collective Trust Funds - International (a)	9,340		—		9,340		—
Mutual Fund - U.S. Large-Cap (b)	2,563		2,563		—		—
Fixed Income:
Corporate Bonds (a)	13,137		—		13,137		—
Total	$	36,032	$	2,563	$	33,469	$	—

Asset Category	Total		Level 1		Level 2		Level 3
As of December 31, 2011:
Equity Securities:
Common/Collective Trust Funds - U.S. (a)	$	9,886	$	—	$	9,886	$	—
Common/Collective Trust Funds - International (a)	6,104		—		6,104		—
Mutual Fund - U.S. Large-Cap (b)	2,021		2,021		—		—
Mutual Fund - International (b)	842		842		—		—
Fixed Income:
Corporate Bonds (a)	13,043		—		13,043		—
Total	$	31,896	$	2,863	$	29,033	$	—

(a)


(b)	This category represents mutual fund investments. The mutual funds are actively traded on exchanges and price quotes for the shares are readily available. These mutual funds are classified as Level 1 investments.

Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets

Fair Value Measurement Using Significant

Unobservable Inputs (Level 3)

(In thousands)



	Guaranteed						Private
	Insurance			Hedge			Equity			Real
	Contract			Funds			Funds			Estate		Total

Balance at January 1, 2011	$	12,561		$	124		$	3,152		$	4,624	$	20,461
Actual return on plan assets:
Relating to assets still held at the reporting date	834			—			388			836		2,058
Relating to assets sold during the period	7			(2		)	—			—		5
Purchases, Sales and Settlements	(1,128		)	(122		)	(328		)	—		(1,578		)
Balance at December 31, 2011	12,274			—			3,212			5,460		20,946
Actual return on plan assets:
Relating to assets still held at the reporting date	1,219			—			(190		)	549		1,578
Relating to assets sold during the period	(12		)	—			604			—		592
Purchases, Sales and Settlements	(1,032		)	—			(410		)	—		(1,442		)
Balance at December 31, 2012	$	12,449		$	—		$	3,216		$	6,009	$	21,674

Schedule of Expected Benefit Payments

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the following years (in thousands):



	Pension Benefits		Other Postretirement Benefits
2013	$	8,928	$	4,620
2014	$	9,321	$	4,546
2015	$	9,735	$	4,620
2016	$	10,149	$	4,674
2017	$	10,562	$	4,796
2018 - 2022	$	67,100	$	25,020