UNUSED LINES OF CREDIT:

Credit facilities and available liquidity as of December 31, 2011 were as follows (in thousands):



Company	Total Facility		Usage		Available Liquidity		Expiration Date
SJG:
Commercial Paper Program/Revolving Credit Facility	$	200,000	$	126,600	$	73,400	May 2015
Uncommitted Bank Lines	20,000		—		20,000		Various

Total SJG	220,000		126,600		93,400

SJI:

Revolving Credit Facility	300,000		247,808		52,192		April 2015 (A)
Term Line of Credit	30,000		30,000		—		November 2013

Total SJI	330,000		277,808		52,192

Total	$	550,000	$	404,408	$	145,592

(A) Includes letters of credit outstanding in the amount of $83.0 million.

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. The weighted average interest rate on these borrowings, which changes daily, was 1.12%, 0.99% and 0.77% at December 31, 2011, 2010 and 2009, respectively. Average borrowings outstanding under these credit facilities during the years ended December 31, 2011 and 2010 were $156.9 million and $110.1 million, respectively. The maximum amounts outstanding under these credit facilities during the years ended December 31, 2011 and 2010 were $337.5 million and $317.5 million, respectively.

New revolving credit facilities were established by SJI and SJG in April 2011 and May 2011, respectively. The SJI facility is a $300.0 million four-year facility provided by a syndicate of banks. The SJG facility is a $200.0 million, four-year facility, provided by the same syndicate of banks. Each facility contains 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. SJI and SJG were in compliance with these covenants as of December 31, 2011. These facilities replaced SJI’s $200.0 million revolving credit facility and SJG’s $100.0 million revolving credit facility and $40.0 million committed line of credit, all of which would otherwise have expired in August of 2011. The letters of credit that provide liquidity support for the variable-rate revenue bonds issued by Marina are now issued under SJI’s new revolving credit facility that expires in 2015. Consequently, these bonds, which were included in the current portion of long-term debt as of December 31, 2010, are now included in long-term debt as of December 31, 2011.

During the third quarter of 2011, SJG began 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 the new $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.