SEGMENTS OF BUSINESS

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

SEGMENTS OF BUSINESS

SEGMENTS OF BUSINESS:

SJI operates in several different reportable operating segments. These segments are as follows:

• Gas utility operations (SJG) consists primarily of natural gas distribution to residential, commercial and industrial customers.

• Wholesale energy operations include the activities of SJRG and SJEX.

• 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. 

In the first quarter of 2014, SJI began grouping its non-utility operations into two areas: Energy Group and Energy Services. Energy Group includes wholesale energy, retail gas and other, and retail electric operations. Energy Services includes on-site energy production and appliance service operations. Due to this grouping, some of the Company's prior period numbers were recast to conform with the current period presentation. However, no changes were made to the specific operating segments. 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 June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Operating Revenues:
Gas Utility Operations	$	69,159		$	66,536		$	279,704		$	240,634
Energy Group:
Wholesale Energy Operations	(2,936		)	(10,699		)	32,436			(4,482		)
Retail Gas and Other Operations	24,875			24,585			76,381			58,698
Retail Electric Operations	27,879			31,419			68,272			62,148
Subtotal Energy Group	49,818			45,305			177,089			116,364
Energy Services:
On-Site Energy Production	14,397			9,965			25,743			19,059
Appliance Service Operations	2,637			3,133			5,291			6,441
Subtotal Energy Services	17,034			13,098			31,034			25,500
Corporate & Services	6,452			7,362			14,323			15,842
Subtotal	142,463			132,301			502,150			398,340
Intersegment Sales	(9,192		)	(9,709		)	(18,678		)	(20,118		)
Total Operating Revenues	$	133,271		$	122,592		$	483,472		$	378,222

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Operating Income (Loss):
Gas Utility Operations	$	9,005		$	8,069		$	72,445		$	65,864
Energy Group:
Wholesale Energy Operations	(8,468		)	(19,200		)	(10,123		)	(24,357		)
Retail Gas and Other Operations	(191		)	(160		)	1,777			(132		)
Retail Electric Operations	(840		)	(337		)	(894		)	127
Subtotal Energy Group	(9,499		)	(19,697		)	(9,240		)	(24,362		)
Energy Services:
On-Site Energy Production	3,636			268			2,376			(905		)
Appliance Service Operations	357			799			262			785
Subtotal Energy Services	3,993			1,067			2,638			(120		)
Corporate and Services	256			(32		)	422			4
Total Operating Income (Loss)	$	3,755		$	(10,593	)	$	66,265		$	41,386
Depreciation and Amortization:
Gas Utility Operations	$	12,757		$	12,929		$	25,433		$	23,953
Energy Group:
Wholesale Energy Operations	46			55			86			106
Retail Gas and Other Operations	20			21			42			43
Subtotal Energy Group	66			76			128			149
Energy Services:
On-Site Energy Production	6,165			3,958			11,940			6,970
Appliance Service Operations	67			72			134			146
Subtotal Energy Services	6,232			4,030			12,074			7,116
Corporate and Services	235			221			454			446
Total Depreciation and Amortization	$	19,290		$	17,256		$	38,089		$	31,664
Interest Charges:
Gas Utility Operations	$	4,292		$	2,789		$	8,634		$	5,750
Energy Group:
Wholesale Energy Operations	(5		)	33			116			85
Retail Gas and Other Operations	68			67			194			143
Subtotal Energy Group	63			100			310			228
Energy Services:
On-Site Energy Production	2,147			307			4,275			1,710
Corporate and Services	1,790			1,212			3,640			2,720
Subtotal	8,292			4,408			16,859			10,408
Intersegment Borrowings	(1,446		)	(988		)	(2,929		)	(2,280		)
Total Interest Charges	$	6,846		$	3,420		$	13,930		$	8,128

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Income Taxes:
Gas Utility Operations	$	2,379		$	2,269		24,906			23,040
Energy Group:
Wholesale Energy Operations	(2,628		)	(7,710		)	(3,181		)	(9,691		)
Retail Gas and Other Operations	80			(52		)	1,016			220
Retail Electric Operations	(343		)	(139		)	(365		)	51
Subtotal Energy Group	(2,891		)	(7,901		)	(2,530		)	(9,420		)
Energy Services:
On-Site Energy Production	(9,404		)	(6,466		)	(20,429		)	(18,030		)
Appliance Service Operations	211			338			188			342
Subtotal Energy Services	(9,193		)	(6,128		)	(20,241		)	(17,688		)
Corporate and Services	195			128			224			208
Total Income Taxes	$	(9,510	)	$	(11,632	)	$	2,359		$	(3,860	)
Property Additions:
Gas Utility Operations	$	59,067		$	44,764		$	91,598		$	81,806
Energy Group:
Wholesale Energy Operations	8			25			10			34
Retail Gas and Other Operations	229			35			397			37
Subtotal Energy Group	237			60			407			71
Energy Services:
On-Site Energy Production	16,426			14,949			25,575			17,526
Appliance Service Operations	6			—			6			—
Subtotal Energy Services	16,432			14,949			25,581			17,526
Corporate and Services	803			1,126			1,581			1,864
Total Property Additions	$	76,539		$	60,899		$	119,167		$	101,267

	June 30, 2014			December 31, 2013
Identifiable Assets:
Gas Utility Operations	$	2,009,849		$	1,909,126
Energy Group:
Wholesale Energy Operations	300,680			331,182
Retail Gas and Other Operations	34,424			50,384
Retail Electric Operations	25,850			25,496
Subtotal Energy Group	360,954			407,062
Energy Services:
On-Site Energy Production	605,781			576,315
Appliance Service Operations	2,768			1,812
Subtotal Energy Services	608,549			578,127
Discontinued Operations	1,772			1,068
Corporate and Services	390,939			406,245
Intersegment Assets	(365,525		)	(376,773		)
Total Identifiable Assets	$	3,006,538		$	2,924,855