LINES OF CREDIT:

Credit facilities and available liquidity as of September 30, 2017 were as follows (in thousands):



Company	Total Facility		Usage			Available Liquidity		Expiration Date
SJI:

Syndicated Revolving Credit Facility	$	400,000	$	240,100	(A)	$	159,900	August 2022	(C)
Revolving Credit Facility	50,000		50,000			—		September 2019	(D)

Total SJI	450,000		290,100			159,900

SJG:
Commercial Paper Program/Revolving Credit Facility	200,000		800		(B)	199,200		August 2022	(E)
Uncommitted Bank Line	10,000		—			10,000		August 2018

Total SJG	210,000		800			209,200

Total	$	660,000	$	290,900		$	369,100

(A) Includes letters of credit outstanding in the amount of $10.0 million.

(B) Includes letters of credit outstanding in the amount of $0.8 million.

(C) In August 2017, SJI entered into a five year, unsecured $400.0 million revolving credit agreement which is syndicated among several banks. In connection with this agreement, SJI terminated its previous $400.0 million revolving credit agreement.

(D) In September 2017, SJI amended an unsecured revolving credit facility for two years. The facility now terminates in September 2019.

(E) In August 2017, SJG entered into a five year, unsecured $200.0 million revolving credit agreement which is syndicated among several banks. In connection with this agreement, SJG terminated its previous $200.0 million revolving credit agreement.

The SJG facilities are restricted as to use and availability specifically to SJG; however, if necessary, the SJI facilities can also be used to support SJG’s liquidity needs. Borrowings under these credit facilities are at market rates. SJI's weighted average interest rate on these borrowings, which changes daily, was 2.26% and 1.28% at September 30, 2017 and 2016, respectively. SJG did not have any outstanding borrowings at September 30, 2017. SJG's weighted average interest rate on these borrowings, which changes daily, was 0.76% at September 30, 2016.

SJI's average borrowings outstanding under these credit facilities (which includes SJG), not including letters of credit, during the nine months ended September 30, 2017 and 2016 were $260.9 million and $336.5 million, respectively. The maximum amounts outstanding under these credit facilities, not including letters of credit, during the nine months ended September 30, 2017 and 2016 were $373.8 million and $467.7 million, respectively.

SJG's average borrowings outstanding under its credit facilities during the nine months ended September 30, 2017 and 2016 were $17.0 million and $64.5 million, respectively. The maximum amounts outstanding under its credit facilities during the nine months ended September 30, 2017 and 2016 were $110.1 million and $141.7 million, respectively.

The SJI and SJG facilities are provided by a syndicate of banks and contain one financial covenant limiting the ratio of indebtedness to total capitalization (as defined in the respective credit agreements) to not more than 0.70 to 1, measured at the end of each fiscal quarter. SJI and SJG were in compliance with this covenant as of September 30, 2017. However, several bank facilities for both SJI and SJG , as well as Senior Unsecured Notes issued by SJI, still contain one financial covenant limiting the ratio of indebtedness to total capitalization (as defined in the respective credit agreements) to not more than 0.65 to 1, measured at the end of each fiscal quarter. As a result, until these other agreements are amended, both SJG and SJI must ensure that the ratio of indebtedness to total capitalization (as defined in the respective credit agreements) does not exceed 0.65 to 1, as measured at the end of each fiscal quarter.

SJG has a commercial paper program under which SJG may issue short-term, unsecured promissory notes to qualified investors up to a maximum aggregate amount outstanding at any time of $200.0 million. The notes have fixed maturities which vary by note, but may not exceed 270 days from the date of issue. Proceeds from the notes are used for general corporate purposes. SJG uses the commercial paper program in tandem with its $200.0 million revolving credit facility and does not expect the principal amount of borrowings outstanding under the commercial paper program and the credit facility at any time to exceed an aggregate of $200.0 million.