SEGMENTS OF BUSINESS

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

SEGMENTS OF BUSINESS

SEGMENTS OF BUSINESS:

SJI operates in several different reportable operating segments which reflect the financial information regularly evaluated by the chief operating decision maker. Gas Utility Operations (SJG) consists primarily of natural gas distribution to residential, commercial and industrial customers. Wholesale Energy Operations include SJRG’s and SJEX's activities. SJE is involved in both retail gas and retail electric activities. Retail Gas and Other Operations include natural gas acquisition and transportation service business lines. Retail Electric Operations consist of electricity acquisition and transportation to commercial and industrial customers. On-Site Energy Production consists of Marina’s thermal energy facility and other energy-related projects. Appliance Service Operations includes SJESP’s servicing of appliances under warranty via a subcontractor arrangement as well as on a time and materials basis, and the installation of small commercial HVAC systems.  The Retail Energy Operations caption includes Retail Gas and Other, Retail Electric, On-Site Energy Production and Appliance Service Operations. The accounting policies of the segments are the same as those described in the summary of significant accounting policies.  Intersegment sales and transfers are treated as if the sales or transfers were to third parties at current market prices.

Information about SJI’s operations in different reportable operating segments is presented below (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Operating Revenues:
Gas Utility Operations	$	59,674		$	54,251		$	300,308		$	292,864
Wholesale Energy Operations	128			(1,601		)	(4,354		)	15,570
Retail Energy Operations:
Retail Gas and Other Operations	19,588			18,841			78,286			50,633
Retail Electric Operations	36,063			28,918			98,211			117,470
On-Site Energy Production	14,254			12,621			33,313			29,878
Appliance Service Operations	2,974			3,048			9,415			9,908
Subtotal Retail Energy Operations	72,879			63,428			219,225			207,889
Corporate & Services	7,126			6,973			22,968			20,018
Subtotal	139,807			123,051			538,147			536,341
Intersegment Sales	(10,999		)	(11,074		)	(31,117		)	(27,619		)
Total Operating Revenues	$	128,808		$	111,977		$	507,030		$	508,722

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Operating (Loss) Income:
Gas Utility Operations	$	3,285		$	2,950		$	69,149		$	69,270
Wholesale Energy Operations	(8,969		)	(4,380		)	(33,326		)	3,449
Retail Energy Operations:
Retail Gas and Other Operations	(125		)	(515		)	(257		)	(1,062		)
Retail Electric Operations	(146		)	1,300			(19		)	11,354
On-Site Energy Production	111			440			(794		)	786
Appliance Service Operations	532			(189		)	1,317			(408		)
Subtotal Retail Energy Operations	372			1,036			247			10,670
Corporate and Services	106			339			110			321
Total Operating (Loss) Income	$	(5,206	)	$	(55	)	$	36,180		$	83,710
Depreciation and Amortization:
Gas Utility Operations	$	12,476		$	11,209		$	36,429		$	33,301
Wholesale Energy Operations	51			56			157			173
Retail Energy Operations:
Retail Gas and Other Operations	21			18			64			49
On-Site Energy Production	4,008			2,469			10,978			7,195
Appliance Service Operations	47			74			193			236
Subtotal Retail Energy Operations	4,076			2,561			11,235			7,480
Corporate and Services	207			170			653			505
Total Depreciation and Amortization	$	16,810		$	13,996		$	48,474		$	41,459
Interest Charges:
Gas Utility Operations	$	2,629		$	3,872		$	8,379		$	11,832
Wholesale Energy Operations	148			42			233			200
Retail Energy Operations:
Retail Gas and Other Operations	73			49			216			100
On-Site Energy Production	1,274			1,464			2,984			3,698
Subtotal Retail Energy Operations	1,347			1,513			3,200			3,798
Corporate and Services	1,488			1,349			4,208			2,907
Subtotal	5,612			6,776			16,020			18,737
Intersegment Borrowings	(1,219		)	(795		)	(3,499		)	(2,068		)
Total Interest Charges	$	4,393		$	5,981		$	12,521		$	16,669
Income Taxes:
Gas Utility Operations	$	471		$	258		$	23,511		$	23,122
Wholesale Energy Operations	(3,616		)	(1,673		)	(13,307		)	1,280
Retail Energy Operations:
Retail Gas and Other Operations	(72		)	(214		)	148			(120		)
Retail Electric Operations	(59		)	531			(8		)	4,638
On-Site Energy Production	(2,547		)	(1,499		)	(20,577		)	(16,729		)
Appliance Service Operations	232			(70		)	574			(124		)
Subtotal Retail Energy Operations	(2,446		)	(1,252		)	(19,863		)	(12,335		)
Corporate and Services	58			91			266			169
Total Income Tax (Benefit) Expense	$	(5,533	)	$	(2,576	)	$	(9,393	)	$	12,236

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Property Additions:
Gas Utility Operations	$	46,426	$	37,263	$	128,232	$	118,139
Wholesale Energy Operations	8		1		42		13
Retail Energy Operations:
Retail Gas and Other Operations	7		74		44		177
On-Site Energy Production	55,737		11,517		73,263		22,519
Appliance Service Operations	—		1		—		3
Subtotal Retail Energy Operations	55,744		11,592		73,307		22,699
Corporate and Services	706		1,503		2,570		3,162
Total Property Additions	$	102,884	$	50,359	$	204,151	$	144,013

	September 30, 2013			December 31, 2012
Identifiable Assets (See Note 1):
Gas Utility Operations	$	1,857,187		$	1,786,459
Wholesale Energy Operations	223,220			204,358
Retail Energy Operations:
Retail Gas and Other Operations	32,451			39,481
Retail Electric Operations	23,468			21,919
On-Site Energy Production	531,202			543,416
Appliance Service Operations	2,473			3,244
Subtotal Retail Energy Operations	589,594			608,060
Discontinued Operations	1,777			78
Corporate and Services	323,886			337,010
Intersegment Assets	(287,669		)	(304,525		)
Total Identifiable Assets	$	2,707,995		$	2,631,440