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SEGMENTS OF BUSINESS
6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
SEGMENTS OF BUSINESS SEGMENTS OF BUSINESS:
ASC 280, Segment Reporting, establishes standards for reporting information about operating segments and requires that a public business enterprise report financial and descriptive information about its reportable operating segments. Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the CODM in deciding how to allocate resources and in assessing performance.

Beginning with the first quarter of 2021, our internal management reporting, specifically around our nonutility businesses, changed primarily due to recent acquisitions and divestitures, and new product lines entered into. These were primarily within the fuel cell, solar, RNG, and retail businesses. Refer to Item 1, along with Note 1 to the Consolidated Financial Statements in Item 8, of SJI’s and SJG's Annual Report on Form 10-K for the year ended December 31, 2020 for information about these acquisitions and divestitures.

As a result of these changes in our businesses, the Company realigned its operating segments. The realigned segments reflect the financial information regularly evaluated by the CODM, which for SJI is the Company's Chief Executive Officer.

The operating segments are as follows:

SJG utility operations consist primarily of natural gas distribution to residential, commercial and industrial customers in southern New Jersey.
ETG utility operations consist of natural gas distribution to residential, commercial and industrial customers in northern and central New Jersey.
ELK utility operations consist of natural gas distribution to residential, commercial and industrial customers in Maryland. On July 31, 2020, SJI sold ELK to a third-party buyer.
Wholesale energy operations include the activities of SJRG and SJEX.
Retail services operations includes the activities of SJE, SJESP and SJEI, as well as our equity interest in Millennium.
Renewables consists of:
The Catamaran joint venture, which owns Annadale and Bronx Midco.
Solar-generation sites located in New Jersey, and three legacy solar projects, one of which was sold during the first quarter of 2020.
The activities of ACLE, BCLE, SCLE and SXLE. Operations at BCLE, SCLE, and SXLE ceased during the second quarter of 2020.
MTF and ACB, which were sold in the first quarter of 2020.
Decarbonization consists of
SJI Renewables Energy Ventures, LLC, which includes our equity interest in REV, which is included in Equity in Earnings of Affiliated Companies on the condensed consolidated statements of (loss)/income.
SJI RNG Devco, LLC, which includes the renewable natural gas development rights in certain dairy farms; the operating results from this entity are not material at this time.
Midstream invests in infrastructure and other midstream projects, including an investment in PennEast (see Note 3).
Corporate & Services segment includes costs related to financing, acquisitions and divestitures, and other unallocated costs. Intersegment represents intercompany transactions among the above SJI consolidated entities.

SJI groups its utility businesses under its wholly-owned subsidiary SJIU. This group consists of gas utility operations of SJG and ETG and, until its sale, ELK. SJI groups its nonutility operations into separate categories: Energy Management; Energy Production; Midstream; and Corporate & Services. Energy Management includes wholesale energy and retail services. Energy Production includes renewables and decarbonization. The accounting policies of the segments are the same as those described in the summary of significant accounting policies.

Information about SJI’s operations in different reportable operating segments is presented below (in thousands). All prior periods were revised to conform to the new segment alignment noted above.
Three Months Ended
June 30,
Six Months Ended
June 30,
 2021202020212020
Operating Revenues:  
SJI Utilities:
   SJG Utility Operations$91,215 $87,182 $342,614 $327,876 
   ETG Utility Operations53,481 57,843 211,026 202,000 
   ELK Utility Operations— 1,389 — 4,507 
     Subtotal SJI Utilities144,696 146,414 553,640 534,383 
Energy Management:
     Wholesale Energy Operations159,755 101,526 421,665 229,970 
 Retail Services 4,126 10,816 8,022 23,899 
     Subtotal Energy Management 163,881 112,342 429,687 253,869 
Energy Production:
Renewables4,205 2,154 10,628 9,142 
Subtotal Energy Production4,205 2,154 10,628 9,142 
Corporate and Services12,046 12,564 25,839 25,905 
Subtotal324,828 273,474 1,019,794 823,299 
Intersegment Sales(13,000)(13,510)(33,666)(29,223)
Total Operating Revenues$311,828 $259,964 $986,128 $794,076 
Three Months Ended
June 30,
Six Months Ended
June 30,
 2021202020212020
Operating Income:  
SJI Utilities:
     SJG Utility Operations$16,469 $9,732 $135,311 $114,377 
     ETG Utility Operations2,867 6,375 60,887 60,437 
     ELK Utility Operations— 212 — 747 
          Subtotal SJI Utilities19,336 16,319 196,198 175,561 
Energy Management:
     Wholesale Energy Operations(7,167)6,092 10,141 13,504 
Retail Services 134 103 (86)(664)
     Subtotal Energy Management(7,033)6,195 10,055 12,840 
Energy Production:
Renewables433 (2,016)3,133 (2,312)
Decarbonization(8)— (8)— 
  Subtotal Energy Production425 (2,016)3,125 (2,312)
Corporate and Services(1,119)(307)(941)(136)
Total Operating Income $11,609 $20,191 $208,437 $185,953 
Depreciation and Amortization:  
SJI Utilities:
     SJG Utility Operations$30,050 $25,395 $59,534 $50,454 
     ETG Utility Operations16,362 10,528 38,992 19,979 
     ELK Utility Operations— 169 — 302 
          Subtotal SJI Utilities46,412 36,092 98,526 70,735 
Energy Management:
    Wholesale Energy Operations24 14 44 30 
Retail Services 118 — 236 — 
     Subtotal Energy Management142 14 280 30 
Energy Production:
Renewables 1,203 2,401 
  Subtotal Energy Production1,203 2,401 
Corporate and Services1,423 1,197 2,413 2,437 
Total Depreciation and Amortization$49,180 $37,306 $103,620 $73,208 
Interest Charges:  
SJI Utilities:
       SJG Utility Operations$9,613 $8,019 $19,338 $15,561 
       ETG Utility Operations7,754 7,778 16,447 14,923 
       ELK Utility Operations— — 19 
            Subtotal SJI Utilities17,367 15,804 35,785 30,503 
Energy Management:
Retail Services 99 — 99 — 
     Subtotal Energy Management 99 — 99 — 
Energy Production:
Renewables 1,205 1,095 2,413 2,697 
     Decarbonization 273 — 567 — 
         Subtotal Energy Production:1,478 1,095 2,980 2,697 
Midstream634 580 1,305 1,160 
Corporate and Services13,495 12,955 26,338 30,842 
Subtotal33,073 30,434 66,507 65,202 
Intersegment Borrowings(1,888)(1,845)(3,863)(4,077)
Total Interest Charges$31,185 $28,589 $62,644 $61,125 
 Three Months Ended
June 30,
Six Months Ended
June 30,
 2021202020212020
Income Taxes:  
 SJI Utilities:
     SJG Utility Operations$2,029 $1,219 $29,143 $26,450 
     ETG Utility Operations(965)(277)11,188 10,344 
     ELK Utility Operations— 54 — 190 
           Subtotal SJI Utilities1,064 996 40,331 36,984 
Energy Management:
     Wholesale Energy Operations(1,776)1,719 3,136 3,725 
Retail Services122 156 294 127 
       Subtotal Energy Management(1,654)1,875 3,430 3,852 
Energy Production:
Renewables (631)(755)(167)294 
Decarbonization (73)— 124 — 
    Subtotal Energy Production(704)(755)(43)294 
Midstream(29)(87)(90)(116)
Corporate and Services(3,379)(2,207)(6,561)(7,822)
Total Income Taxes$(4,702)$(178)$37,067 $33,192 
Property Additions:  
SJI Utilities:
     SJG Utility Operations$68,551 $49,989 $121,960 $107,959 
     ETG Utility Operations58,900 55,112 100,030 104,126 
     ELK Utility Operations— 208 — 859 
          Subtotal SJI Utilities127,451 105,309 221,990 212,944 
Energy Management:
     Wholesale Energy Operations— — 
     Subtotal Energy Management— — 
Energy Production:
Renewables 17,214 2,832 17,987 2,885 
Decarbonization 1,038 — 1,874 — 
  Subtotal Energy Production18,252 2,832 19,861 2,885 
Midstream 41 86 
Corporate and Services1,614 700 2,358 1,361 
Total Property Additions$147,323 $108,882 $244,219 $217,276 
 June 30, 2021December 31, 2020
Identifiable Assets:  
SJI Utilities:
     SJG Utility Operations $3,577,589 $3,522,265 
     ETG Utility Operations 2,669,582 2,561,067 
          Subtotal SJI Utilities6,247,171 6,083,332 
Energy Management:
     Wholesale Energy Operations 206,990 195,882 
Retail Services 26,799 29,687 
      Subtotal Energy Management233,789 225,569 
Energy Production:
Renewables 160,895 153,018 
Decarbonization 60,278 40,482 
 Subtotal Energy Production221,173 193,500 
Midstream 8,748 92,208 
Discontinued Operations 1,737 1,775 
Corporate and Services 394,272 318,095 
Intersegment Assets(273,781)(225,331)
Total Identifiable Assets$6,833,109 $6,689,148