SEGMENTS OF BUSINESS

12 Months Ended

Dec. 31, 2016

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) consist 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, industrial and residential customers.

• On-Site energy production consists of Marina’s thermal energy facility and other energy-related projects. Included in this segment are the activities of the following significant entities: ACB, ACLE, BCLE, SCLE, SXLE, MCS, NBS and SBS. These entities became wholly-owned subsidiaries of Marina on December 31, 2015 (see Note 3).

• Appliance service operations includes SJESP, which services residential and small commercial HVAC systems, installs small commercial HVAC systems, provides plumbing services and services appliances under warranty via a subcontractor arrangement as well as on a time and materials basis.

• Midstream was formed to invest in infrastructure and other midstream projects, including a current project to build a natural gas pipeline in Pennsylvania and New Jersey. The activities of Midstream are a part of the Corporate and Services segment.

SJI groups its nonutility 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):

	2016			2015			2014
Operating Revenues:
Gas Utility Operations	$	461,055		$	534,290		$	501,875
Energy Group:
Wholesale Energy Operations	220,707			129,098			77,048
Retail Gas and Other Operations	92,371			87,198			127,001
Retail Electric Operations	182,540			150,049			123,773
Subtotal Energy Group	495,618			366,345			327,822
Energy Services:
On-Site Energy Production	94,375			63,665			56,129
Appliance Service Operations	7,898			11,186			10,518
Subtotal Energy Services	102,273			74,851			66,647
Corporate & Services	35,147			31,156			30,174
Subtotal	1,094,093			1,006,642			926,518
Intersegment Sales	(57,593		)	(47,074		)	(39,522		)
Total Operating Revenues	$	1,036,500		$	959,568		$	886,996

	2016			2015			2014
Operating Income:
Gas Utility Operations	$	122,455		$	119,585		$	113,690
Energy Group:
Wholesale Energy Operations	41,667			35,024			9,493
Retail Gas and Other Operations	4,680			(3,218		)	479
Retail Electric Operations	7,007			1,042			(466		)
Subtotal Energy Group	53,354			32,848			9,506
Energy Services:
On-Site Energy Production	13,301			2,027			2,560
Appliance Service Operations	582			468			362
Subtotal Energy Services	13,883			2,495			2,922
Corporate and Services	(416		)	1,966			1,485
Total Operating Income	$	189,276		$	156,894		$	127,603
Depreciation and Amortization:
Gas Utility Operations	$	63,901		$	58,668		$	52,155
Energy Group:
Wholesale Energy Operations	484			435			168
Retail Gas and Other Operations	337			161			83
Subtotal Energy Group	821			596			251
Energy Services:
On-Site Energy Production	43,395			30,242			25,020
Appliance Service Operations	301			316			269
Subtotal Energy Services	43,696			30,558			25,289
Corporate and Services	1,400			1,220			816
Total Depreciation and Amortization	$	109,818		$	91,042		$	78,511
Interest Charges:
Gas Utility Operations	$	17,875		$	19,906		$	17,872
Energy Group:
Wholesale Energy Operations	—			441			371
Retail Gas and Other Operations	350			185			267
Subtotal Energy Group	350			626			638
Energy Services:
On-Site Energy Production	11,961			8,169			8,723
Corporate and Services	12,118			11,822			8,803
Subtotal	42,304			40,523			36,036
Intersegment Borrowings	(10,855		)	(8,901		)	(6,476		)
Total Interest Charges	$	31,449		$	31,622		$	29,560

	2016			2015			2014
Income Taxes:
Gas Utility Operations	$	39,366		$	36,945		$	34,895
Energy Group:
Wholesale Energy Operations	15,882			14,410			4,822
Retail Gas and Other Operations	2,118			(978		)	787
Retail Electric Operations	2,862			426			(190		)
Subtotal Energy Group	20,862			13,858			5,419
Energy Services:
On-Site Energy Production	(6,353		)	(49,225		)	(36,404		)
Appliance Service Operations	232			186			223
Subtotal Energy Services	(6,121		)	(49,039		)	(36,181		)
Corporate and Services	44			(404		)	316
Total Income Taxes	$	54,151		$	1,360		$	4,449
Property Additions:
Gas Utility Operations	$	228,275		$	218,260		$	201,737
Energy Group:
Wholesale Energy Operations	7			382			18
Retail Gas and Other Operations	1,642			2,053			1,421
Subtotal Energy Group	1,649			2,435			1,439
Energy Services:
On-Site Energy Production (1)	38,193			139,018			132,214
Appliance Service Operations	431			379			84
Subtotal Energy Services	38,624			139,397			132,298
Corporate and Services	1,141			1,902			3,995
Total Property Additions	$	269,689		$	361,994		$	339,469

(1) The property additions for On-Site Energy Production in 2016 and 2015 do not include the approximately $5.6 million and $40.9 million of Property, Plant and Equipment obtained through the acquisition of eight Energenic projects as discussed in Note 3.

	2016			2015
Identifiable Assets (See Note 1):
Gas Utility Operations	$	2,551,923		$	2,281,576
Energy Group:
Wholesale Energy Operations	233,019			231,660
Retail Gas and Other Operations	52,729			55,111
Retail Electric Operations	41,280			55,528
Subtotal Energy Group	327,028			342,299
Energy Services:
On-Site Energy Production	767,710			790,231
Appliance Service Operations	2,879			4,885
Subtotal Energy Services	770,589			795,116
Discontinued Operations	1,756			1,545
Corporate and Services	649,795			652,325
Intersegment Assets	(570,524		)	(600,928		)
Total Identifiable Assets	$	3,730,567		$	3,471,933