PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)

12 Months Ended

Dec. 31, 2014

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

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
	2014			2013			2012
Service Cost	$	4,510		$	5,421		$	4,533
Interest Cost	10,735			9,439			9,622
Expected Return on Plan Assets	(13,491		)	(11,914		)	(10,341		)
Amortizations:
Prior Service Cost	175			251			251
Actuarial Loss	5,716			9,006			7,629
Net Periodic Benefit Cost	7,645			12,203			11,694
Capitalized Benefit Costs	(3,047		)	(5,002		)	(4,684		)
Total Net Periodic Benefit Expense	$	4,598		$	7,201		$	7,010



	Other Postretirement Benefits
	2014			2013			2012
Service Cost	$	891		$	1,139		$	1,037
Interest Cost	2,852			2,730			3,001
Expected Return on Plan Assets	(2,603		)	(2,378		)	(2,105		)
Amortizations:
Prior Service Cost (Credits)	152			(283		)	(283		)
Actuarial Loss	974			1,738			1,725
Net Periodic Benefit Cost	2,266			2,946			3,375
Capitalized Benefit Costs	(722		)	(1,172		)	(1,340		)
Total Net Periodic Benefit Expense	$	1,544		$	1,774		$	2,035

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, 2013	$	68,713		$	27,184		$	35,431		$	4,195

Amounts Arising during the Period:
Net Actuarial Gain	(20,554		)	(9,171		)	(4,173		)	(390		)
Amounts Amortized to Net Periodic Costs:
Net Actuarial Loss	(5,319		)	(1,555		)	(3,642		)	(177		)
Prior Service (Cost) Credit	(208		)	194			(42		)	82

Balance at December 31, 2013	42,632			16,652			27,574			3,710

Amounts Arising during the Period:
Net Actuarial Loss	31,075			7,826			14,698			2,269
Prior Service Cost	486			4,146			14			981
Amounts Amortized to Net Periodic Costs:
Net Actuarial Loss	(2,841		)	(628		)	(2,819		)	(187		)
Prior Service Cost	(175		)	(133		)	1			(18		)

Balance at December 31, 2014	$	71,177		$	27,863		$	39,468		$	6,755

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 2015 are as follows (in thousands):



	Pension Benefits		Other Postretirement Benefits
Prior Service Costs	$	199	$	499
Net Actuarial Loss	$	5,922	$	1,235

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 2015 are as follows (in thousands):



	Pension Benefits		Other Postretirement Benefits
Prior Service Costs	$	12	$	108
Net Actuarial Loss	$	4,355	$	302

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
	2014			2013			2014			2013
Change in Benefit Obligations:
Benefit Obligation at Beginning of Year	$	216,395		$	224,389		$	62,355		$	68,779
Service Cost	4,510			5,421			891			1,139
Interest Cost	10,735			9,439			2,852			2,730
Actuarial (Gain) Loss	42,746			(14,272		)	8,151			(6,361		)
Retiree Contributions	—			—			488			388
Plan Amendments	550			—			5,143			—
Benefits Paid	(9,502		)	(8,582		)	(4,288		)	(4,320		)
Benefit Obligation at End of Year	$	265,434		$	216,395		$	75,592		$	62,355

Change in Plan Assets:
Fair Value of Plan Assets at Beginning of Year	$	178,093		$	150,160		$	41,653		$	36,032
Actual Return on Plan Assets	10,397			22,556			596			5,621
Employer Contributions	1,535			13,959			4,773			3,932
Retiree Contributions	—			—			488			388
Benefits Paid	(9,502		)	(8,582		)	(4,288		)	(4,320		)
Fair Value of Plan Assets at End of Year	$	180,523		$	178,093		$	43,222		$	41,653


Funded Status at End of Year:	$	(84,911	)	$	(38,302	)	$	(32,370	)	$	(20,701	)
Amounts Related to Unconsolidated Affiliate	57			(7		)	301			365
Accrued Net Benefit Cost at End of Year	$	(84,854	)	$	(38,309	)	$	(32,069	)	$	(20,336	)

Amounts Recognized in the Statement of Financial Position Consist of:
Current Liabilities	$	(1,550	)	$	(1,275	)	$	—		$	—
Noncurrent Liabilities	(83,304		)	(37,034		)	(32,069		)	(20,336		)
Net Amount Recognized at End of Year	$	(84,854	)	$	(38,309	)	$	(32,069	)	$	(20,336	)

Amounts Recognized in Regulatory Assets Consist of:
Prior Service Costs	$	944		$	634		$	4,965		$	952
Net Actuarial Loss	70,233			41,998			22,898			15,700
	$	71,177		$	42,632		$	27,863		$	16,652

Amounts Recognized in Accumulated Other Comprehensive Loss Consist of (pre-tax):
Prior Service Costs	$	86		$	69		$	1,113		$	150
Net Actuarial Loss	39,382			27,505			5,642			3,560
	$	39,468		$	27,574		$	6,755		$	3,710

Schedule of Assumptions Used

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



	Pension Benefits				Other Postretirement Benefits
	2014		2013		2014		2013
Discount Rate	4.25	%	5.09	%	4.20	%	4.91	%
Rate of Compensation Increase	3.50	%	3.50	%	3.50	%	3.50	%

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



	Pension Benefits						Other Postretirement Benefits
	2014		2013		2012		2014		2013		2012
Discount Rate	5.09	%	4.26	%	5.03	%	4.91	%	4.14	%	4.92	%
Expected Long-Term Return on Plan Assets	7.75	%	7.50	%	7.50	%	6.25	%	6.60	%	6.60	%
Rate of Compensation Increase	3.50	%	3.25	%	3.25	%	3.50	%	3.25	%	3.25	%

Schedule of Health Care Cost Trend Rates

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



	2014		2013
Medical Care and Drug Cost Trend Rate Assumed for Next Year	7.00	%	7.00	%
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	2023		2023

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	$	145	$	(122	)
Effect on Postretirement Benefit Obligation	$	4,742	$	(3,818	)

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, 2013	$	12,449		$	—	$	3,216		$	6,009	$	21,674
Actual return on plan assets:
Relating to assets still held at the reporting date	(179		)	154		76			732		783
Relating to assets sold during the period	17			—		431			—		448
Purchases, Sales and Settlements	(965		)	4,000		(677		)	—		2,358
Balance at December 31, 2013	11,322			4,154		3,046			6,741		25,263
Actual return on plan assets:
Relating to assets still held at the reporting date	498			177		(24		)	735		1,386
Relating to assets sold during the period	13			—		325			—		338
Purchases, Sales and Settlements	(921		)	—		269			—		(652		)
Balance at December 31, 2014	$	10,912		$	4,331	$	3,616		$	7,476	$	26,335

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
2015	$	9,998	$	4,850
2016	$	10,555	$	5,072
2017	$	10,950	$	5,095
2018	$	12,228	$	5,149
2019	$	13,283	$	5,256
2020 - 2024	$	78,239	$	27,720

Pension Benefits [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Schedule of Allocation of Plan Assets

The fair values of SJI's pension plan assets at December 31, 2014 and 2013 by asset category are as follows (in thousands):



Asset Category	Total		Level 1		Level 2		Level 3
As of December 31, 2014
Cash / Cash Equivalents:
Common/Collective Trust Funds (a)	$	692	$	—	$	692	$	—
STIF-Type Instrument (b)	1,252		—		1,252		—
Equity securities:
Common/Collective Trust Funds - U.S. (a)	51,197		—		51,197		—
Common/Collective Trust Funds - International (a)	30,963		—		30,963		—
U.S. Large-Cap (c)	12,961		12,961		—		—
U.S. Mid-Cap (c)	5,147		5,147		—		—
U.S. Small-Cap (c)	232		232		—		—
International (c)	3,369		3,369		—		—
Fixed Income:
Common/Collective Trust Funds (a)	48,375		—		48,375		—
Guaranteed Insurance Contract (d)	10,912		—		—		10,912
Hedge Funds (e)	4,331		—		—		4,331
Other types of investments:
Private Equity Fund (f)	3,616		—		—		3,616
Common/Collective Trust Fund - Real Estate (g)	7,476		—		—		7,476
Total	$	180,523	$	21,709	$	132,479	$	26,335



Asset Category	Total		Level 1		Level 2		Level 3
As of December 31, 2013
Cash / Cash Equivalents:
Common/Collective Trust Funds (a)	$	416	$	—	$	416	$	—
STIF-Type Instrument (b)	1,177		—		1,177		—
Equity securities:
Common/Collective Trust Funds - U.S. (a)	51,837		—		51,837		—
Common/Collective Trust Funds - International (a)	34,093		—		34,093		—
U.S. Large-Cap (c)	11,661		11,661		—		—
U.S. Mid-Cap (c)	4,135		4,135		—		—
International (c)	3,664		3,664		—		—
Fixed Income:
Common/Collective Trust Funds (a)	45,847		—		45,847		—
Guaranteed Insurance Contract (d)	11,322		—		—		11,322
Hedge Funds (e)	4,154		—		—		4,154
Other types of investments:
Private Equity Fund (f)	3,046		—		—		3,046
Common/Collective Trust Fund - Real Estate (g)	6,741		—		—		6,741
Total	$	178,093	$	19,460	$	133,370	$	25,263

(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 entity's own assumptions, these contracts are classified as Level 3 investments.


(e)	This category represents a collection of underlying funds which are all domiciled outside of the United States. All of the underlying fund managers are based in the U.S.; however, they do not necessarily trade only in U.S. markets. The fair value of these funds is determined by the underlying fund's general partner or manager. These funds are classified as Level 3 investments.

(f)

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, 2014 and 2013, 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.

(g)

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.