DERIVATIVE INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of notional amounts of outstanding derivative positions

As of March 31, 2016, SJI’s active interest rate swaps were as follows:

Notional Amount		Fixed Interest Rate	Start Date	Maturity	Type	Obligor
$	14,500,000	3.905%	3/17/2006	1/15/2026	Tax-exempt	Marina
$	500,000	3.905%	3/17/2006	1/15/2026	Tax-exempt	Marina
$	330,000	3.905%	3/17/2006	1/15/2026	Tax-exempt	Marina
$	12,500,000	3.530%	12/1/2006	2/1/2036	Tax-exempt	SJG
$	12,500,000	3.430%	12/1/2006	2/1/2036	Tax-exempt	SJG

Fair value of derivative instruments

The fair values of all derivative instruments, as reflected in the condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015, are as follows (in thousands):

Derivatives not designated as hedging instruments under GAAP	March 31, 2016				December 31, 2015
	Assets		Liabilities		Assets		Liabilities
Energy-related commodity contracts:
Derivatives – Energy Related – Current	$	57,815	$	66,370	$	83,093	$	90,708
Derivatives – Energy Related – Non-Current	19,489		10,148		16,238		21,697
Interest rate contracts:
Derivatives - Other	—		13,118		—		10,943
Total derivatives not designated as hedging instruments under GAAP	$	77,304	$	89,636	$	99,331	$	123,348
Total Derivatives	$	77,304	$	89,636	$	99,331	$	123,348

Offsetting assets

As of March 31, 2016 and December 31, 2015, information related to these offsetting arrangements were as follows (in thousands):

As of March 31, 2016
Description	Gross amounts of recognized assets/liabilities			Gross amount offset in the balance sheet		Net amounts of assets/liabilities in balance sheet			Gross amounts not offset in the balance sheet						Net amount
									Financial Instruments				Cash Collateral Posted
Derivatives - Energy Related Assets	$	77,304		$	—	$	77,304		$	(15,597	)	(A)	$	—	$	61,707
Derivatives - Energy Related Liabilities	$	(76,518	)	$	—	$	(76,518	)	$	15,597		(B)	$	22,020	$	(38,901	)
Derivatives - Other	$	(13,118	)	$	—	$	(13,118	)	$	—			$	—	$	(13,118	)

As of December 31, 2015
Description	Gross amounts of recognized assets/liabilities			Gross amount offset in the balance sheet		Net amounts of assets/liabilities in balance sheet			Gross amounts not offset in the balance sheet						Net amount
									Financial Instruments				Cash Collateral Posted
Derivatives - Energy Related Assets	$	99,331		$	—	$	99,331		$	(35,491	)	(A)	$	—	$	63,840
Derivatives - Energy Related Liabilities	$	(112,405	)	$	—	$	(112,405	)	$	35,491		(B)	$	23,045	$	(53,869	)
Derivatives - Other	$	(10,943	)	$	—	$	(10,943	)	$	—			$	—	$	(10,943	)

(A) The balances at March 31, 2016 and December 31, 2015 were related to derivative liabilities which can be net settled against derivative assets.

(B) The balances at March 31, 2016 and December 31, 2015 were related to derivative assets which can be net settled against derivative liabilities.

Offsetting liabilities

As of March 31, 2016 and December 31, 2015, information related to these offsetting arrangements were as follows (in thousands):

As of March 31, 2016
Description	Gross amounts of recognized assets/liabilities			Gross amount offset in the balance sheet		Net amounts of assets/liabilities in balance sheet			Gross amounts not offset in the balance sheet						Net amount
									Financial Instruments				Cash Collateral Posted
Derivatives - Energy Related Assets	$	77,304		$	—	$	77,304		$	(15,597	)	(A)	$	—	$	61,707
Derivatives - Energy Related Liabilities	$	(76,518	)	$	—	$	(76,518	)	$	15,597		(B)	$	22,020	$	(38,901	)
Derivatives - Other	$	(13,118	)	$	—	$	(13,118	)	$	—			$	—	$	(13,118	)

As of December 31, 2015
Description	Gross amounts of recognized assets/liabilities			Gross amount offset in the balance sheet		Net amounts of assets/liabilities in balance sheet			Gross amounts not offset in the balance sheet						Net amount
									Financial Instruments				Cash Collateral Posted
Derivatives - Energy Related Assets	$	99,331		$	—	$	99,331		$	(35,491	)	(A)	$	—	$	63,840
Derivatives - Energy Related Liabilities	$	(112,405	)	$	—	$	(112,405	)	$	35,491		(B)	$	23,045	$	(53,869	)
Derivatives - Other	$	(10,943	)	$	—	$	(10,943	)	$	—			$	—	$	(10,943	)

(A) The balances at March 31, 2016 and December 31, 2015 were related to derivative liabilities which can be net settled against derivative assets.

(B) The balances at March 31, 2016 and December 31, 2015 were related to derivative assets which can be net settled against derivative liabilities.

Derivatives in cash flow hedging relationships

The effect of derivative instruments on the condensed consolidated statements of income for the three months ended March 31, 2016 and 2015 are as follows (in thousands):

	Three Months Ended March 31,
Derivatives in Cash Flow Hedging Relationships under GAAP	2016			2015
Interest Rate Contracts:
Losses recognized in AOCL on effective portion	$	—		$	—
Losses reclassified from AOCL into income (a)	$	(86	)	$	(23	)
Gains (losses) recognized in income on ineffective portion (a)	$	—		$	—

(a) Included in Interest Charges

	Three Months Ended March 31,
Derivatives Not Designated as Hedging Instruments under GAAP	2016			2015
Gains (losses) on energy-related commodity contracts (a)	$	18,655		$	(6,707	)
Losses on interest rate contracts (b)	(427		)	(298		)
Total	$	18,228		$	(7,005	)

(a)  Included in Operating Revenues - Nonutility

(b)  Included in Interest Charges