SCHEDULE I - SOUTH JERSEY INDUSTRIES, INC.

CONDENSED STATEMENTS OF INCOME

(In Thousands)



	2016			2015			2014

Management Service Fee Revenues	$	25,463		$	20,990		$	21,118

Operating Expenses:
Operations	23,852			17,979			18,183
Depreciation	377			406			439
Energy and Other Taxes	1,033			806			813
Total Operating Expenses	25,262			19,191			19,435

Operating Income	201			1,799			1,683

Other Income:
Equity in Earnings of Subsidiaries	119,061			105,610			97,628
Other	11,953			10,145			7,283

Total Other Income	131,014			115,755			104,911

Interest Charges	12,148			11,822			8,803
Income Taxes	6			122			163

Income from Continuing Operations	119,061			105,610			97,628

Equity in Undistributed Earnings of Discontinued Operations	(251		)	(503		)	(582		)

Net Income	$	118,810		$	105,107		$	97,046

SCHEDULE I - SOUTH JERSEY INDUSTRIES, INC.

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands)



	2016			2015			2014

Net Income	$	118,810		$	105,107		$	97,046
Other Comprehensive Income (Loss) - Net of Tax*
Postretirement Liability Adjustment	(3,197		)	5,518			(9,160		)
Unrealized Gain (Loss) on Available-for-Sale Securities	118			(53		)	(472		)
Unrealized Gain on Derivatives - Other	197			294			134
Total Other Comprehensive (Loss) Income - Net of Tax*	(2,882		)	5,759			(9,498		)

Comprehensive Income	$	115,928		$	110,866		$	87,548

* Determined using a combined average statutory tax rate of 40%.

SCHEDULE I - SOUTH JERSEY INDUSTRIES, INC.

CONDENSED STATEMENTS OF RETAINED EARNINGS

(In Thousands)



	2016			2015			2014

Retained Earnings - Beginning	$	474,167		$	439,218		$	406,041
Net Income	118,810			105,107			97,046
	592,977			544,325			503,087

Dividends Declared - Common Stock	(82,380		)	(70,158		)	(63,869		)

Retained Earnings - Ending	$	510,597		$	474,167		$	439,218

SCHEDULE I - SOUTH JERSEY INDUSTRIES, INC.

CONDENSED STATEMENTS OF CASH FLOWS

FOR THE TWELVE MONTHS ENDED DECEMBER 31,

(In Thousands)



	2016			2015			2014

CASH PROVIDED BY OPERATING ACTIVITIES	$	20,120		$	38,593		$	22,244

CASH FLOWS FROM INVESTING ACTIVITIES:

Net Repayments from (Advances to) Associated Companies	32,300			(118,802		)	(104,979		)
Capital Expenditures	(345		)	(150		)	(1,610		)
Proceeds from Sale of Property, Plant & Equipment	—			—			27
Purchase of Company Owned Life Insurance	(2,398		)	(2,328		)	(1,250		)
Investment in Affiliate	(65,000		)	—			(25,000		)

Net Cash Used in Investing Activities	(35,443		)	(121,280		)	(132,812		)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from Issuance of Long Term Debt	—			50,000			240,000
Principal Repayments of Long Term Debt	—			(114,000		)	—
Payments for Issuance of Long Term Debt	(84		)	(55		)	(1,558		)
Net (Repayments of) Borrowings from Short-Term Credit Facilities	(105,500		)	153,000			(144,100		)
Dividends on Common Stock	(82,380		)	(70,158		)	(63,869		)
Proceeds from Sale of Common Stock	214,426			63,192			80,680

Net Cash Provided by Financing Activities	26,462			81,979			111,153

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	11,139			(708		)	585

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	1,708			2,416			1,831

CASH AND CASH EQUIVALENTS AT END OF YEAR	$	12,847		$	1,708		$	2,416

SCHEDULE I - SOUTH JERSEY INDUSTRIES, INC.

CONDENSED BALANCE SHEETS (In Thousands)



	2016			2015
Assets

Property Plant and Equipment:
Nonutility Property, Plant and Equipment, at cost	$	2,685		$	2,468
Accumulated Depreciation	(2,026		)	(1,768		)

Property, Plant and Equipment - Net	659			700

Investments:
Investments in Subsidiaries	1,233,856			1,051,675
Available-for-Sale Securities	32			3,860

Total Investments	1,233,888			1,055,535

Current Assets:
Cash and Cash Equivalents	12,847			1,708
Receivable from Associated Companies	550,227			582,406
Accounts Receivable	49			49
Other	—			2,859

Total Current Assets	563,123			587,022

Other Noncurrent Assets (See Note 1)	44,974			38,168

Total Assets	$	1,842,644		$	1,681,425

Capitalization and Liabilities

Equity:
Common Stock SJI
Par Value $1.25 a share
Authorized - 120,000,000 shares
Outstanding Shares - 79,478,055 (2016) and 70,965,622 (2015)	$	99,347		$	88,707
Premium on Common Stock	706,943			499,460
Treasury Stock (at par)	(266		)	(296		)
Accumulated Other Comprehensive Loss	(27,381		)	(24,499		)
Retained Earnings	510,597			474,167

Total Equity	1,289,240			1,037,539

Long-Term Debt (See Note 1)	323,971			339,665

Current Liabilities:
Notes Payable - Banks	191,800			297,300
Current Portion of Long-Term Debt	16,000			—
Payable to Associated Companies	382			262
Accounts Payable	211			425
Other Current Liabilities	7,707			3,579

Total Current Liabilities	216,100			301,566

Other Noncurrent Liabilities	13,333			2,655

Total Capitalization and Liabilities	$	1,842,644		$	1,681,425

Notes to Condensed Financial Statements


1.	BASIS OF PRESENTATION:

Pursuant to rules and regulations of the SEC, the parent-company only condensed financial statements of SJI do not reflect all of the information and notes normally included with financial statements prepared in accordance with GAAP in the United States. Therefore, these condensed financial statements should be read in conjunction with the consolidated financial statements and related notes included under Item 8 in this Form 10-K.

Certain reclassifications have been made to the prior period's condensed balance sheets to conform to the current period presentation. The unamortized debt issuance costs previously included in "Other Noncurrent Assets" on the condensed balance sheets were reclassified to "Long-Term Debt" to conform to ASU 2015-03, which is described under "New Accounting Pronouncements" in Note 1 of the consolidated financial statements.

No dividends were received from subsidiaries in 2016. Dividends received from subsidiaries amounted to $40.8 million and $18.2 million in 2015 and 2014, respectively.