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DERIVATIVE INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2017
Derivative [Line Items]  
Schedule of Derivative Instruments
As of December 31, 2017, SJI and SJG had outstanding derivative contracts as follows:
 
SJI Consolidated
SJG
Derivative contracts intended to limit exposure to market risk to:
 
 
    Expected future purchases of natural gas (in MMdts)
58.8

9.7

    Expected future sales of natural gas (in MMdts)
60.3

0.7

    Expected future purchases of electricity (in MMmWh)
2.6

—

    Expected future sales of electricity (in MMmWh)
2.1

—

 
 
 
Basis and Index related net purchase (sales) contracts (in MMdts)
47.4

0.3
Fair Value of Derivative Instruments
The fair values of all derivative instruments, as reflected in the consolidated balance sheets as of December 31, are as follows (in thousands):

SJI (includes SJG and all other consolidated subsidiaries):
 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments under GAAP
 
December 31, 2017
 
December 31, 2016
 
 
Assets
 
Liabilities
 
Assets
 
Liabilities
Energy-related commodity contracts:
 
 
 
 
 
 
 
 
Derivatives - Energy Related - Current
 
$
42,139

 
$
46,938

 
$
72,391

 
$
60,082

Derivatives - Energy Related - Non-Current
 
5,988

 
6,025

 
8,502

 
4,540

Interest rate contracts:
 
 
 
 
 
 

 
 

Derivatives - Other - Current
 

 
748

 
—

 
681

Derivatives - Other - Noncurrent
 

 
9,622

 
—

 
9,349

Total derivatives not designated as hedging instruments under GAAP
 
$
48,127

 
$
63,333

 
$
80,893

 
$
74,652

 
 
 
 
 
 
 
 
 
Total Derivatives
 
$
48,127

 
$
63,333

 
$
80,893

 
$
74,652
Summary of Interest Rate Swaps
As of December 31, 2017, SJI's active interest rate swaps were as follows:

Notional Amount

Fixed Interest Rate

Start Date

Maturity
Obligor
$
20,000,000


3.049%

3/15/2017

3/15/2027
SJI
$
20,000,000


3.049%

3/15/2017

3/15/2027
SJI
$
10,000,000


3.049%

3/15/2017

3/15/2027
SJI
$
12,500,000


3.530%

12/1/2006

2/1/2036
SJG
$
12,500,000


3.430%

12/1/2006

2/1/2036
SJG
Offsetting Arrangements
As of December 31, 2017 and 2016, information related to these offsetting arrangements were as follows (in thousands):
As of December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
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
 
SJI (includes SJG and all other consolidated subsidiaries):
Derivatives - Energy Related Assets
 
$
48,127

 
$
—

 
$
48,127

 
$
(24,849
)
(A)
$
—

 
$
23,278

Derivatives - Energy Related Liabilities
 
$
(52,963
)
 
$
—

 
$
(52,963
)
 
$
24,849

(B)
$
8,832

 
$
(19,282
)
Derivatives - Other
 
$
(10,370
)
 
$
—

 
$
(10,370
)
 
$
—

 
$
—

 
$
(10,370
)
SJG:
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives - Energy Related Assets
 
$
7,332

 
$
—

 
$
7,332

 
$
(208
)
(A)
$
—

 
$
7,124

Derivatives - Energy Related Liabilities
 
$
(9,440
)
 
$
—

 
$
(9,440
)
 
$
208

(B)
$
1,543

 
$
(7,689
)
Derivatives - Other
 
$
(7,028
)
 
$
—

 
$
(7,028
)
 
$
—

 
$
—

 
$
(7,028
)


As of December 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
 
SJI (includes SJG and all other consolidated subsidiaries):
Derivatives - Energy Related Assets
 
$
80,893

 
$
—

 
$
80,893

 
$
(38,809
)
(A)
$
(3,474
)
 
$
38,610

Derivatives - Energy Related Liabilities
 
$
(64,622
)
 
$
—

 
$
(64,622
)
 
$
38,809

(B)
$
—

 
$
(25,813
)
Derivatives - Other
 
$
(10,030
)
 
$
—

 
$
(10,030
)
 
$
—

 
$
—

 
$
(10,030
)
SJG:
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives - Energy Related Assets
 
$
5,807

 
$
—

 
$
5,807

 
$
(6
)
(A)
$
(3,587
)
 
$
2,214

Derivatives - Energy Related Liabilities
 
$
(1,372
)
 
$
—

 
$
(1,372
)
 
$
6

(B)
$
—

 
$
(1,366
)
Derivatives - Other
 
$
(7,365
)
 
$
—

 
$
(7,365
)
 
$
—

 
$
—

 
$
(7,365
)

(A) The balances at December 31, 2017 and 2016 were related to derivative liabilities which can be net settled against derivative assets.

(B) The balances at December 31, 2017 and 2016 were related to derivative assets which can be net settled against derivative liabilities.
Effect of Derivatives on Income
The effect of derivative instruments on the consolidated statements of income for the year ended December 31 is as follows (in thousands):

Derivatives in Cash Flow Hedging Relationships under GAAP
 
2017
 
2016
 
2015
 
SJI (includes SJG and all other consolidated subsidiaries):
 
 
 
 
 
 
 
Interest Rate Contracts:
 
 
 
 
 
 
 
Losses reclassified from AOCL into income (a)
 
$
(2,524
)
 
$
(333
)
 
$
(551
)
 
 
 
 
 
 
 
 
 
SJG:
 
 
 
 
 
 
 
Interest Rate Contracts:
 
 
 
 
 
 
 
Losses reclassified from AOCL into income (a)
 
$
(46
)
 
$
(46
)
 
(46
)
 

(a) Included in Interest Charges

Derivatives Not Designated as Hedging Instruments under GAAP
 
2017
 
2016
 
2015
SJI (no balances for SJG; includes all other consolidated subsidiaries):
 
 
 
 
 
 
(Losses) gains on energy-related commodity contracts (a)
 
$
(13,667
)
 
$
26,935

 
$
8,401

(Losses) gains on interest rate contracts (b)
 
(677
)
 
647

 
96

 
 
 
 
 
 
 
Total
 
$
(14,344
)
 
$
27,582

 
$
8,497


(a)  Included in Operating Revenues - Nonutility
(b)  Included in Interest Charges
South Jersey Gas Company  
Derivative [Line Items]  
Schedule of Derivative Instruments
As of December 31, 2017, SJI and SJG had outstanding derivative contracts as follows:
 
SJI Consolidated
SJG
Derivative contracts intended to limit exposure to market risk to:
 
 
    Expected future purchases of natural gas (in MMdts)
58.8

9.7

    Expected future sales of natural gas (in MMdts)
60.3

0.7

    Expected future purchases of electricity (in MMmWh)
2.6

—

    Expected future sales of electricity (in MMmWh)
2.1

—

 
 
 
Basis and Index related net purchase (sales) contracts (in MMdts)
47.4

0.3
Fair Value of Derivative Instruments
SJG:
 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments under GAAP
 
2017
 
2016
 
 
Assets
 
Liabilities
 
Assets
 
Liabilities
Energy-related commodity contracts:
 
 
 
 
 
 
 
 
Derivatives – Energy Related – Current
 
$
7,327

 
$
9,270

 
$
5,434

 
$
1,372

Derivatives – Energy Related – Non-Current
 
5

 
170

 
373

 
—

Interest rate contracts:
 
 
 
 
 
 

 
 

Derivatives - Other - Current
 
—

 
389

 
—

 
386

Derivatives - Other - Non-Current
 
—

 
6,639

 
—

 
6,979

Total derivatives not designated as hedging instruments under GAAP
 
7,332

 
16,468

 
5,807

 
8,737

 
 
 
 
 
 
 
 
 
Total Derivatives
 
$
7,332

 
$
16,468

 
$
5,807

 
$
8,737
Offsetting Arrangements
As of December 31, 2017 and 2016, information related to these offsetting arrangements were as follows (in thousands):
As of December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
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
 
SJI (includes SJG and all other consolidated subsidiaries):
Derivatives - Energy Related Assets
 
$
48,127

 
$
—

 
$
48,127

 
$
(24,849
)
(A)
$
—

 
$
23,278

Derivatives - Energy Related Liabilities
 
$
(52,963
)
 
$
—

 
$
(52,963
)
 
$
24,849

(B)
$
8,832

 
$
(19,282
)
Derivatives - Other
 
$
(10,370
)
 
$
—

 
$
(10,370
)
 
$
—

 
$
—

 
$
(10,370
)
SJG:
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives - Energy Related Assets
 
$
7,332

 
$
—

 
$
7,332

 
$
(208
)
(A)
$
—

 
$
7,124

Derivatives - Energy Related Liabilities
 
$
(9,440
)
 
$
—

 
$
(9,440
)
 
$
208

(B)
$
1,543

 
$
(7,689
)
Derivatives - Other
 
$
(7,028
)
 
$
—

 
$
(7,028
)
 
$
—

 
$
—

 
$
(7,028
)


As of December 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
 
SJI (includes SJG and all other consolidated subsidiaries):
Derivatives - Energy Related Assets
 
$
80,893

 
$
—

 
$
80,893

 
$
(38,809
)
(A)
$
(3,474
)
 
$
38,610

Derivatives - Energy Related Liabilities
 
$
(64,622
)
 
$
—

 
$
(64,622
)
 
$
38,809

(B)
$
—

 
$
(25,813
)
Derivatives - Other
 
$
(10,030
)
 
$
—

 
$
(10,030
)
 
$
—

 
$
—

 
$
(10,030
)
SJG:
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives - Energy Related Assets
 
$
5,807

 
$
—

 
$
5,807

 
$
(6
)
(A)
$
(3,587
)
 
$
2,214

Derivatives - Energy Related Liabilities
 
$
(1,372
)
 
$
—

 
$
(1,372
)
 
$
6

(B)
$
—

 
$
(1,366
)
Derivatives - Other
 
$
(7,365
)
 
$
—

 
$
(7,365
)
 
$
—

 
$
—

 
$
(7,365
)

(A) The balances at December 31, 2017 and 2016 were related to derivative liabilities which can be net settled against derivative assets.

(B) The balances at December 31, 2017 and 2016 were related to derivative assets which can be net settled against derivative liabilities.
Effect of Derivatives on Income
The effect of derivative instruments on the consolidated statements of income for the year ended December 31 is as follows (in thousands):

Derivatives in Cash Flow Hedging Relationships under GAAP
 
2017
 
2016
 
2015
 
SJI (includes SJG and all other consolidated subsidiaries):
 
 
 
 
 
 
 
Interest Rate Contracts:
 
 
 
 
 
 
 
Losses reclassified from AOCL into income (a)
 
$
(2,524
)
 
$
(333
)
 
$
(551
)
 
 
 
 
 
 
 
 
 
SJG:
 
 
 
 
 
 
 
Interest Rate Contracts:
 
 
 
 
 
 
 
Losses reclassified from AOCL into income (a)
 
$
(46
)
 
$
(46
)
 
(46
)
 

(a) Included in Interest Charges

Derivatives Not Designated as Hedging Instruments under GAAP
 
2017
 
2016
 
2015
SJI (no balances for SJG; includes all other consolidated subsidiaries):
 
 
 
 
 
 
(Losses) gains on energy-related commodity contracts (a)
 
$
(13,667
)
 
$
26,935

 
$
8,401

(Losses) gains on interest rate contracts (b)
 
(677
)
 
647

 
96

 
 
 
 
 
 
 
Total
 
$
(14,344
)
 
$
27,582

 
$
8,497


(a)  Included in Operating Revenues - Nonutility
(b)  Included in Interest Charges