LONG-TERM DEBT:

Outstanding Long-Term Debt at December 31 consisted of the following:



		2015		2014
Long-Term Debt (A):
South Jersey Gas Company:
First Mortgage Bonds: (B)
5.387%	Series due 2015 (C)	$	—	$	10,000
5.437%	Series due 2016	10,000		10,000
4.6%	Series due 2016	17,000		17,000
4.657%	Series due 2017	15,000		15,000
7.97%	Series due 2018	10,000		10,000
7.125%	Series due 2018	20,000		20,000
5.587%	Series due 2019	10,000		10,000
3.00%	Series due 2024	50,000		50,000
3.03%	Series due 2024	35,000		35,000
3.63%	Series due 2025 (D)	9,091		10,000
4.84%	Series due 2026	15,000		15,000
4.93%	Series due 2026	45,000		45,000
4.03%	Series due 2027	45,000		45,000
4.01%	Series due 2030	50,000		50,000
4.23%	Series due 2030	30,000		30,000
3.74%	Series due 2032	35,000		35,000
5.55%	Series due 2033	32,000		32,000
6.213%	Series due 2034	10,000		10,000
5.45%	Series due 2035	10,000		10,000
Series A 2006 Bonds at variable rates due 2036 (E)		24,900		25,000
SJG Term Facility (F)		139,000		59,000

Marina Energy LLC: (G)
Series A 2001 Bonds at variable rates due 2031		20,000		20,000
Series B 2001 Bonds at variable rates due 2021		25,000		25,000
Series A 2006 Bonds at variable rates due 2036		16,400		16,400



South Jersey Industries:
2.39%		Series A 2012 Notes due 2015 (H)	—			64,000
2.71%		Series B 2012 Notes due 2017	16,000			16,000
3.05%		Series due 2019 (I)	60,000			60,000
3.05%		Series due 2019 (I)	30,000			30,000
3.05%		Series due 2019 (I)	50,000			50,000
3.46%		Series C 2012 Notes due 2022	35,000			35,000
Series Notes at variable rates due 2019 (I)			40,000			40,000
Series Notes at variable rates due 2019 (I)			60,000			60,000
South Jersey Industries Term Loan at variable rates due 2015 (J)			—			50,000
South Jersey Industries Term Loan at variable rates due 2020 (J)			50,000			—

ACB Energy Partners, LLC:
7.60	%	Loan & Security Agreement (K)	12,735			—

Other Energy Project Debt (L):
4.83	%	ACLE	3,551			—
4.83	%	SCLE	1,738			—
4.83	%	SXLE	3,433			—

Total Long-Term Debt Outstanding			$	1,035,848		$	1,009,400
Less Current Maturities			(29,454		)	(149,909		)

Total Long-Term Debt			$	1,006,394		$	859,491


(A)	Long-term debt maturities and sinking funds requirements for the succeeding five years are as follows (in thousands): 2016, $29,454; 2017, $172,558; 2018,$40,667; 2019,$260,783; and 2020, $74,476.


(B)	The First Mortgage dated October 1, 1947, as supplemented, securing the First Mortgage Bonds constitutes a direct first mortgage lien on substantially all utility plant.


(C)	In August 2015, SJG retired $10.0 million aggregate principal amount of 5.387% Medium Term Notes (MTN's) at maturity.


(D)	In December 2015, SJG paid $0.9 million toward the principal amount of 3.63% MTN's due December 2025.

(E)

In September 2015, SJG paid $0.1 million toward the principal amount of variable rate demand bonds due February 2036. These variable rate demand bonds bear interest at a floating rate that resets weekly. The interest rate as of December 31, 2015 was 0.03%. Liquidity support on these bonds is provided under a separate letter of credit facility that expires in August 2018. These bonds contain no financial covenants.

(F)

In June 2014, SJG entered into a $200.0 million multiple-draw term facility offered by a syndicate of banks which expires in June 2017. SJG can draw under this facility through June 2016 and this facility bears interest at a floating rate based on LIBOR plus a spread determined by SJG's credit ratings. As of December 31, 2015, SJG had borrowed an aggregate $139.0 million under this facility at an average interest rate of 1.17% and the proceeds were used to pay down short-term debt.

(G)

Marina has issued $61.4 million of unsecured variable-rate revenue bonds through the New Jersey Economic Development Authority (NJEDA). The variable rates at December 31, 2015 for the Series A 2001, Series B 2001, and Series A 2006 bonds were 0.04%, 0.47% and 0.04% respectively. The interest rate on all but $39.0 million of the bonds has been effectively fixed via interest rate swaps at 4.22% until January 2026. These bonds contain no financial covenants. Liquidity support on these bonds is provided under a letter of credit facility from a commercial bank that expires in March, 2016. The Company has plans to renew this letter of credit facility upon expiration.


(H)	In June 2015, SJI redeemed at maturity $64.0 million aggregate principal amount of 2.39% Senior Notes.

(I)

In June 2014, SJI entered into a Note Purchase Agreement that provided for SJI to issue an aggregate of $240.0 million of medium term notes, all of which were issued as follows: (a) in June 2014, SJI issued $60.0 million aggregate principal amount of 3.05% Senior Notes due June 2019, and $40.0 million aggregate principal amount of Floating Rate Senior Notes due June 2019; (b) in August 2014, SJI issued $30.0 million aggregate principal amount of 3.05% Senior Notes due August 2019; and (c) in September 2014, SJI issued $50.0 million aggregate principal amount of 3.05% Senior Notes due September 2019, and $60.0 million aggregate principal amount of Floating Rate Senior Notes due September 2019. At December 31, 2015, the floating rate was 1.93%.


(J)	In October 2015, SJI entered into an unsecured, variable-rate term loan of $50.0 million, which matures in October 2020. This agreement replaced existing facilities that expired in October 2015. The variable rate at December 31, 2015 was 1.28%.

(K)

ACB has a Loan and Security Agreement (“LSA”) with a third party to borrow up to $16.0 million. Under the LSA, ACB pays principal and interest (at a fixed rate of 7.60%) in equal quarterly installments that began in February 2011 and run through February 2021. As of December 31, 2014, ACB was a wholly-owned subsidiary of Energenic, of which Marina has a 50% equity interest. In December 2015, ACB became a wholly-owned subsidiary of Marina (see Note 3); as such, the remaining outstanding debt of $12.7 million is included on the consolidated balance sheets as of December 31, 2015. The remaining debt was paid in January 2016 (see Note 19).

(L)

ACLE, SCLE and SXLE (the "Other Energy Projects") have long-term debt agreements with a third party to borrow up to $10.0 million. Under the debt agreement, the Other Energy Projects pay principal and interest (at a fixed rate of 4.83%) in equal installments that began December 2013 and run through December 2020. As of December 31, 2014, the Other Energy Projects were wholly-owned subsidiaries of Energenic, of which Marina had a 50% equity interest. SJI had agreements to guarantee 50% of the outstanding debt, which was $4.7 million as of December 31, 2014, and the Company had recorded $0.3 million for the fair value of the guarantees on the consolidated balance sheets as of December 31, 2014. In December 2015, the Other Energy Projects became wholly-owned subsidiaries of Marina (see Note 3); as such, the remaining outstanding debt of $8.7 million is included on the consolidated balance sheets as of December 31, 2015.

In December 2015, SJG filed a petition with the New Jersey Board of Public Utilities to issue up to $400.0 million of long term debt securities in various forms including MTN's and unsecured debt, with maturities of more than 12 months, over the next three years. This petition is pending approval.