SEGMENTS OF BUSINESS

3 Months Ended

Mar. 31, 2015

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. 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. 

SJI groups its non-utility operations into two categories: 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. 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 March 31,
	2015			2014
Operating Revenues:
Gas Utility Operations	$	267,658		$	210,545
Energy Group:
Wholesale Energy Operations	35,345			35,372
Retail Gas and Other Operations	38,078			51,506
Retail Electric Operations	29,777			40,393
Subtotal Energy Group	103,200			127,271
Energy Services:
On-Site Energy Production	13,572			11,346
Appliance Service Operations	2,357			2,654
Subtotal Energy Services	15,929			14,000
Corporate & Services	9,086			7,871
Subtotal	395,873			359,687
Intersegment Sales	(12,921		)	(9,486		)
Total Operating Revenues	$	382,952		$	350,201

	Three Months Ended March 31,
	2015			2014
Operating Income (Loss):
Gas Utility Operations	$	73,189		$	63,440
Energy Group:
Wholesale Energy Operations	330			(1,655		)
Retail Gas and Other Operations	3,087			1,968
Retail Electric Operations	(182		)	(54		)
Subtotal Energy Group	3,235			259
Energy Services:
On-Site Energy Production	(482		)	(1,260		)
Appliance Service Operations	(52		)	(95		)
Subtotal Energy Services	(534		)	(1,355		)
Corporate and Services	481			166
Total Operating Income	$	76,371		$	62,510
Depreciation and Amortization:
Gas Utility Operations	$	14,167		$	12,676
Energy Group:
Wholesale Energy Operations	32			40
Retail Gas and Other Operations	20			22
Subtotal Energy Group	52			62
Energy Services:
On-Site Energy Production	7,051			5,775
Appliance Service Operations	74			67
Subtotal Energy Services	7,125			5,842
Corporate and Services	242			219
Total Depreciation and Amortization	$	21,586		$	18,799
Interest Charges:
Gas Utility Operations	$	5,190		$	4,342
Energy Group:
Wholesale Energy Operations	242			121
Retail Gas and Other Operations	73			126
Subtotal Energy Group	315			247
Energy Services:
On-Site Energy Production	2,315			2,128
Corporate and Services	2,988			1,850
Subtotal	10,808			8,567
Intersegment Borrowings	(2,207		)	(1,483		)
Total Interest Charges	$	8,601		$	7,084

	Three Months Ended March 31,
	2015			2014
Income Taxes:
Gas Utility Operations	$	26,172		$	22,527
Energy Group:
Wholesale Energy Operations	867			(553		)
Retail Gas and Other Operations	1,576			936
Retail Electric Operations	(74		)	(22		)
Subtotal Energy Group	2,369			361
Energy Services:
On-Site Energy Production	(12,047		)	(11,025		)
Appliance Service Operations	(8		)	(23		)
Subtotal Energy Services	(12,055		)	(11,048		)
Corporate and Services	127			29
Total Income Taxes	$	16,613		$	11,869
Property Additions:
Gas Utility Operations	$	43,326		$	32,531
Energy Group:
Wholesale Energy Operations	4			2
Retail Gas and Other Operations	729			168
Subtotal Energy Group	733			170
Energy Services:
On-Site Energy Production	4,381			9,149
Appliance Service Operations	116			—
Subtotal Energy Services	4,497			9,149
Corporate and Services	1,064			778
Total Property Additions	$	49,620		$	42,628

	March 31, 2015			December 31, 2014
Identifiable Assets:
Gas Utility Operations	$	2,291,920		$	2,185,672
Energy Group:
Wholesale Energy Operations	294,484			366,119
Retail Gas and Other Operations	52,195			53,073
Retail Electric Operations	25,311			23,682
Subtotal Energy Group	371,990			442,874
Energy Services:
On-Site Energy Production	661,485			675,937
Appliance Service Operations	3,265			3,105
Subtotal Energy Services	664,750			679,042
Discontinued Operations	1,755			1,758
Corporate and Services	563,649			527,691
Intersegment Assets	(517,342		)	(487,612		)
Total Identifiable Assets	$	3,376,722		$	3,349,425