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SEGMENTS OF BUSINESS
9 Months Ended
Sep. 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, which have all ceased operations (see Note 1).
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 (Loss)/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
September 30,
Nine Months Ended
September 30,
 2021202020212020
Operating Revenues:  
SJI Utilities:
   SJG Utility Operations$69,958 $66,190 $412,572 $394,066 
   ETG Utility Operations37,072 37,503 248,098 239,503 
   ELK Utility Operations— 285 — 4,792 
     Subtotal SJI Utilities107,030 103,978 660,670 638,361 
Energy Management:
     Wholesale Energy Operations247,402 143,338 669,067 373,308 
 Retail Services 5,360 8,836 13,382 32,735 
     Subtotal Energy Management 252,762 152,174 682,449 406,043 
Energy Production:
Renewables7,352 6,317 17,980 15,459 
Subtotal Energy Production7,352 6,317 17,980 15,459 
Corporate and Services13,577 10,835 39,416 36,740 
Subtotal380,721 273,304 1,400,515 1,096,603 
Intersegment Sales(15,090)(11,755)(48,756)(40,978)
Total Operating Revenues$365,631 $261,549 $1,351,759 $1,055,625 
Three Months Ended
September 30,
Nine Months Ended
September 30,
 2021202020212020
Operating (Loss) Income:  
SJI Utilities:
     SJG Utility Operations$(1,961)$(6,080)$133,350 $108,297 
     ETG Utility Operations5,634 (3,163)66,521 57,274 
     ELK Utility Operations— (374)— 373 
          Subtotal SJI Utilities3,673 (9,617)199,871 165,944 
Energy Management:
     Wholesale Energy Operations(15,534)2,768 (5,393)16,272 
Retail Services 849 (1,573)763 (2,238)
     Subtotal Energy Management(14,685)1,195 (4,630)14,034 
Energy Production:
Renewables1,787 2,455 4,920 143 
Decarbonization(63)— (71)— 
  Subtotal Energy Production1,724 2,455 4,849 143 
Corporate and Services315 (2,527)(626)(2,662)
Total Operating (Loss) Income $(8,973)$(8,494)$199,464 $177,459 
Depreciation and Amortization:  
SJI Utilities:
     SJG Utility Operations$30,252 $25,762 $89,786 $76,216 
     ETG Utility Operations14,665 10,391 53,657 30,370 
     ELK Utility Operations— 52 — 354 
          Subtotal SJI Utilities44,917 36,205 143,443 106,940 
Energy Management:
    Wholesale Energy Operations25 14 69 44 
Retail Services 117 — 353 — 
     Subtotal Energy Management142 14 422 44 
Energy Production:
Renewables 1,172 30 3,573 36 
  Subtotal Energy Production1,172 30 3,573 36 
Corporate and Services1,858 1,267 4,271 3,704 
Total Depreciation and Amortization$48,089 $37,516 $151,709 $110,724 
Interest Charges:  
SJI Utilities:
       SJG Utility Operations$9,444 $8,271 $28,782 $23,832 
       ETG Utility Operations8,651 7,398 25,098 22,321 
       ELK Utility Operations— — 21 
            Subtotal SJI Utilities18,095 15,671 53,880 46,174 
Energy Management:
Retail Services 36 — 135 — 
     Subtotal Energy Management 36 — 135 — 
Energy Production:
Renewables 1,078 277 3,491 2,974 
     Decarbonization 286 — 853 — 
         Subtotal Energy Production:1,364 277 4,344 2,974 
Midstream322 677 1,627 1,837 
Corporate and Services13,406 12,490 39,744 43,332 
Subtotal33,223 29,115 99,730 94,317 
Intersegment Borrowings(1,755)(1,353)(5,618)(5,430)
Total Interest Charges$31,468 $27,762 $94,112 $88,887 
 Three Months Ended
September 30,
Nine Months Ended
September 30,
 2021202020212020
Income Taxes:  
 SJI Utilities:
     SJG Utility Operations$(2,460)$(3,293)$26,683 $23,157 
     ETG Utility Operations132 (2,475)11,320 7,869 
     ELK Utility Operations— (4)— 186 
           Subtotal SJI Utilities(2,328)(5,772)38,003 31,212 
Energy Management:
     Wholesale Energy Operations(4,043)858 (907)4,583 
Retail Services248 40 542 168 
       Subtotal Energy Management(3,795)898 (365)4,751 
Energy Production:
Renewables (2,134)(11,191)(2,301)(10,897)
Decarbonization 205 — 329 — 
    Subtotal Energy Production(1,929)(11,191)(1,972)(10,897)
Midstream(107)(58)(197)(174)
Corporate and Services(3,568)(3,344)(10,129)(11,167)
Total Income Taxes$(11,727)$(19,467)$25,340 $13,725 
Property Additions:  
SJI Utilities:
     SJG Utility Operations$64,988 $73,481 $186,948 $181,440 
     ETG Utility Operations58,923 45,452 158,953 149,578 
     ELK Utility Operations— 112 — 971 
          Subtotal SJI Utilities123,911 119,045 345,901 331,989 
Energy Management:
     Wholesale Energy Operations
     Subtotal Energy Management
Energy Production:
Renewables 6,471 59,866 24,458 62,751 
Decarbonization 8,140 — 10,014 — 
  Subtotal Energy Production14,611 59,866 34,472 62,751 
Midstream 11 29 19 115 
Corporate and Services747 715 3,105 2,076 
Total Property Additions$139,284 $179,657 $383,503 $396,933 
 September 30, 2021December 31, 2020
Identifiable Assets:  
SJI Utilities:
     SJG Utility Operations $3,637,046 $3,522,265 
     ETG Utility Operations 2,717,842 2,561,067 
          Subtotal SJI Utilities6,354,888 6,083,332 
Energy Management:
     Wholesale Energy Operations 272,955 195,882 
Retail Services 26,581 29,687 
      Subtotal Energy Management299,536 225,569 
Energy Production:
Renewables 164,486 153,018 
Decarbonization 89,910 40,482 
 Subtotal Energy Production254,396 193,500 
Midstream 8,795 92,208 
Discontinued Operations 1,811 1,775 
Corporate and Services 320,268 318,095 
Intersegment Assets(215,683)(225,331)
Total Identifiable Assets$7,024,011 $6,689,148