Cover page
Cover page - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 01, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-6364 | |
Entity Registrant Name | South Jersey Industries, Inc. | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 22-1901645 | |
Entity Address, Address Line One | 1 South Jersey Plaza | |
Entity Address, City or Town | Folsom | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08037 | |
City Area Code | (609) | |
Local Phone Number | 561-9000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 100,590,307 | |
Entity Central Index Key | 0000091928 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock - $1.25 par value per share | |
Trading Symbol | SJI | |
Security Exchange Name | NYSE | |
5.625% Junior Subordinated Notes due 2079 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 5.625% Junior Subordinated Notes due 2079 | |
Trading Symbol | SJIJ | |
Security Exchange Name | NYSE | |
Corporate Units | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Corporate Units | |
Trading Symbol | SJIU | |
Security Exchange Name | NYSE | |
SJG | ||
Document Information [Line Items] | ||
Entity File Number | 000-22211 | |
Entity Registrant Name | South Jersey Gas Co | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 21-0398330 | |
Entity Address, Address Line One | 1 South Jersey Plaza | |
Entity Address, City or Town | Folsom | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08037 | |
City Area Code | (609) | |
Local Phone Number | 561-9000 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 2,339,139 | |
Entity Central Index Key | 0001035216 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME/(LOSS) (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Operating Revenues: | ||||
Utility | $ 103,383 | $ 92,377 | $ 636,110 | $ 613,555 |
Nonutility | 158,166 | 168,826 | 419,515 | 551,880 |
Total Operating Revenues | 261,549 | 261,203 | 1,055,625 | 1,165,435 |
Operating Expenses: | ||||
Operations | 53,641 | 54,169 | 168,653 | 173,603 |
Impairment Charges | 0 | 1,296 | 0 | 1,296 |
Maintenance | 9,666 | 9,081 | 28,658 | 27,984 |
Depreciation | 27,977 | 24,945 | 81,877 | 72,759 |
Energy and Other Taxes | 2,730 | 2,663 | 9,228 | 9,597 |
Net Gain on Sales of Assets | 0 | (2,292) | 0 | 3,246 |
Total Operating Expenses | 270,043 | 280,228 | 878,166 | 1,040,087 |
Operating Loss | (8,494) | (19,025) | 177,459 | 125,348 |
Other Income | 5,143 | 618 | 7,621 | 2,268 |
Interest Charges | (27,762) | (28,857) | (88,887) | (85,944) |
Loss Before Income Taxes | (31,113) | (47,264) | 96,193 | 41,672 |
Income Taxes | 19,467 | 10,925 | (13,725) | (9,378) |
Equity in Earnings of Affiliated Companies | 1,302 | 1,593 | 5,710 | 5,355 |
Loss from Continuing Operations | (10,344) | (34,746) | 88,178 | 37,649 |
Loss from Discontinued Operations - (Net of tax benefit) | (58) | (59) | (178) | (216) |
Net Income (Loss) | $ (10,402) | $ (34,805) | $ 88,000 | $ 37,433 |
Basic Loss Per Common Share: | ||||
Basic Loss Per Common Share, Continuing Operations (in dollars per share) | $ (0.10) | $ (0.38) | $ 0.92 | $ 0.41 |
Basic Loss Per Common Share, Discontinued Operations (in dollars per share) | 0 | 0 | 0 | 0 |
Basic Loss Per Common Share (in dollars per share) | $ (0.10) | $ (0.38) | $ 0.92 | $ 0.41 |
Average Shares of Common Stock Outstanding, Basic (in shares) | 100,587 | 92,392 | 95,599 | 92,041 |
Diluted Loss Per Common Share: | ||||
Diluted Loss Per Common Share, Continuing Operations (in dollars per share) | $ (0.10) | $ (0.38) | $ 0.92 | $ 0.41 |
Diluted Loss Per Common Share, Continuing Operations (in dollars per share) | 0 | 0 | 0 | 0 |
Diluted Loss Per Common Share (in dollars per share) | $ (0.10) | $ (0.38) | $ 0.92 | $ 0.41 |
Average Shares of Common Stock Outstanding, Diluted (in shares) | 100,587 | 92,392 | 95,724 | 92,158 |
SJG | ||||
Operating Revenues: | ||||
Total Operating Revenues | $ 66,190 | $ 62,039 | $ 394,066 | $ 396,505 |
Operating Expenses: | ||||
Cost of Sales - (Excluding depreciation and amortization) | 20,575 | 19,268 | 126,655 | 140,802 |
Operations | 24,763 | 25,855 | 78,740 | 80,146 |
Maintenance | 8,399 | 7,678 | 25,457 | 22,827 |
Depreciation | 17,339 | 16,398 | 51,038 | 48,187 |
Energy and Other Taxes | 1,194 | 1,159 | 3,879 | 4,302 |
Total Operating Expenses | 72,270 | 70,358 | 285,769 | 296,264 |
Operating Loss | (6,080) | (8,319) | 108,297 | 100,241 |
Other Income | 1,515 | 808 | 3,349 | 3,067 |
Interest Charges | (8,271) | (7,840) | (23,832) | (23,584) |
Loss Before Income Taxes | (12,836) | (15,351) | 87,814 | 79,724 |
Income Taxes | 3,293 | 3,747 | (23,157) | (20,620) |
Net Income (Loss) | (9,543) | (11,604) | 64,657 | 59,104 |
Utility | ||||
Operating Expenses: | ||||
Cost of Sales - (Excluding depreciation and amortization) | 29,277 | 26,452 | 210,167 | 231,622 |
Nonutility | ||||
Operating Expenses: | ||||
Cost of Sales - (Excluding depreciation and amortization) | $ 146,752 | $ 163,914 | $ 379,583 | $ 526,472 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net Income (Loss) | $ (10,402) | $ (34,805) | $ 88,000 | $ 37,433 |
Other Comprehensive Income, Net of Tax: | ||||
Reclassification of Unrealized Gain on Derivatives - Other to Net Income, net of tax | 9 | 9 | 25 | 25 |
Other Comprehensive Income - Net of Tax | 9 | 9 | 25 | 25 |
Comprehensive Income (Loss) | (10,393) | (34,796) | 88,025 | 37,458 |
SJG | ||||
Net Income (Loss) | (9,543) | (11,604) | 64,657 | 59,104 |
Other Comprehensive Income, Net of Tax: | ||||
Reclassification of Unrealized Gain on Derivatives - Other to Net Income, net of tax | 9 | 9 | 25 | 25 |
Other Comprehensive Income - Net of Tax | 9 | 9 | 25 | 25 |
Comprehensive Income (Loss) | $ (9,534) | $ (11,595) | $ 64,682 | $ 59,129 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - Parenthetical - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other Comprehensive Income, Net of Tax: | ||||
Reclassification of Unrealized Gain on Derivatives - Other to Net Income, tax | $ (3) | $ (3) | $ (10) | $ (10) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Net Cash Provided by Operating Activities | $ 254,200,000 | $ 121,416,000 |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (344,828,000) | (357,844,000) |
Acquisition-related Working Capital Settlement | 0 | 15,600,000 |
Cash Paid for Acquisition, Net of Cash Acquired | (10,932,000) | (3,952,000) |
Proceeds from Dispositions and Sale of Property, Plant & Equipment | 119,948,000 | 26,360,000 |
Investment in Long-Term Receivables | (18,787,000) | (10,939,000) |
Proceeds from Long-Term Receivables | 10,457,000 | 7,604,000 |
Proceeds from Company-Owned Life Insurance | 0 | 1,694,000 |
Investment in Affiliates | (1,353,000) | (4,102,000) |
Advances to Affiliates | 0 | (1,902,000) |
Net Repayment of Notes Receivable - Affiliates | 2,504,000 | 0 |
Investment in Subsidiary, Net of Cash Acquired | (54,328,000) | 0 |
Net Cash Used in Investing Activities | (297,319,000) | (327,481,000) |
Cash Flows from Financing Activities: | ||
Net (Repayments of) Borrowings from Short-Term Credit Facilities | (251,700,000) | 541,800,000 |
Proceeds from Issuance of Long-Term Debt | 800,000,000 | 244,657,000 |
Principal Repayments of Long-Term Debt | (660,000,000) | (725,000,000) |
Payments for Issuance of Long-Term Debt | (6,810,000) | (2,106,000) |
Dividends on Common Stock | (54,553,000) | (53,124,000) |
Proceeds from Sale of Common Stock | 200,000,000 | 189,032,000 |
Payments for the Issuance of Common Stock | (1,897,000) | 0 |
Net Cash Provided by Financing Activities | 25,040,000 | 195,259,000 |
Net Decrease in Cash, Cash Equivalents and Restricted Cash | (18,079,000) | (10,806,000) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 28,381,000 | 31,679,000 |
Cash, Cash Equivalents and Restricted Cash at End of Period | 10,302,000 | 20,873,000 |
SJG | ||
Net Cash Provided by Operating Activities | 158,813,000 | 114,482,000 |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (188,173,000) | (178,666,000) |
Investment in Long-Term Receivables | (18,787,000) | (10,939,000) |
Proceeds from Long-Term Receivables | 10,457,000 | 7,604,000 |
Net Cash Used in Investing Activities | (196,503,000) | (182,001,000) |
Cash Flows from Financing Activities: | ||
Net (Repayments of) Borrowings from Short-Term Credit Facilities | (63,400,000) | 67,700,000 |
Proceeds from Issuance of Long-Term Debt | 400,000,000 | 10,000,000 |
Principal Repayments of Long-Term Debt | (410,000,000) | (10,000,000) |
Payments for Issuance of Long-Term Debt | (3,434,000) | (12,000) |
Additional Investment by Shareholder | 109,500,000 | 0 |
Net Cash Provided by Financing Activities | 32,666,000 | 67,688,000 |
Net Decrease in Cash, Cash Equivalents and Restricted Cash | (5,024,000) | 169,000 |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 6,751,000 | 3,262,000 |
Cash, Cash Equivalents and Restricted Cash at End of Period | $ 1,727,000 | $ 3,431,000 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment: | ||
Utility Plant, at original cost | $ 5,150,209 | $ 4,905,350 |
Accumulated Depreciation | (908,184) | (843,998) |
Nonutility Property and Equipment, at cost | 88,911 | 25,991 |
Accumulated Depreciation | (13,389) | (13,807) |
Property, Plant and Equipment - Net | 4,317,547 | 4,073,536 |
Investments: | ||
Available-for-Sale Securities | 40 | 40 |
Restricted | 199 | 21,964 |
Investment in Affiliates | 92,945 | 87,087 |
Total Investments | 93,184 | 109,091 |
Current Assets: | ||
Cash and Cash Equivalents | 10,103 | 6,417 |
Accounts Receivable | 167,534 | 253,661 |
Unbilled Revenues | 22,712 | 84,821 |
Provision for Uncollectibles | (33,017) | (19,829) |
Notes Receivable - Affiliate | 2,875 | 5,379 |
Natural Gas in Storage, average cost | 51,606 | 54,153 |
Materials and Supplies, average cost | 1,061 | 1,164 |
Prepaid Taxes | 37,333 | 26,918 |
Derivatives - Energy Related Assets | 36,541 | 52,892 |
Assets Held for Sale | 19,997 | 143,440 |
Other Prepayments and Current Assets | 38,082 | 43,492 |
Total Current Assets | 354,827 | 652,508 |
Regulatory and Other Noncurrent Assets: | ||
Regulatory Assets | 659,724 | 665,932 |
Derivatives - Energy Related Assets | 10,407 | 7,243 |
Notes Receivable - Affiliate | 12,009 | 12,720 |
Contract Receivables | 38,530 | 30,958 |
Goodwill | 706,960 | 702,070 |
Other | 115,735 | 111,282 |
Total Regulatory and Other Noncurrent Assets | 1,543,365 | 1,530,205 |
Total Assets | 6,308,923 | 6,365,340 |
Equity: | ||
Common Stock | 125,735 | 115,493 |
Premium on Common Stock | 1,217,822 | 1,027,902 |
Treasury Stock (at par) | (314) | (289) |
Accumulated Other Comprehensive Loss | (32,533) | (32,558) |
Retained Earnings | 317,007 | 313,237 |
Non-Controlling Interest | 4,236 | 0 |
Total Equity | 1,631,953 | 1,423,785 |
Long-Term Debt | 2,531,632 | 2,070,086 |
Total Capitalization | 4,163,585 | 3,493,871 |
Current Liabilities: | ||
Notes Payable | 597,000 | 848,700 |
Current Portion of Long-Term Debt | 142,809 | 467,909 |
Accounts Payable | 162,845 | 232,242 |
Customer Deposits and Credit Balances | 37,697 | 35,004 |
Environmental Remediation Costs | 47,956 | 43,849 |
Taxes Accrued | 4,839 | 2,235 |
Derivatives - Energy Related Liabilities | 25,005 | 41,965 |
Deferred Contract Revenues | 321 | 0 |
Derivatives - Other Current | 2,078 | 1,155 |
Liabilities Held for Sale | 0 | 6,043 |
Dividends Payable | 29,677 | 0 |
Interest Accrued | 27,187 | 13,580 |
Pension Benefits | 3,727 | 3,727 |
Other Current Liabilities | 22,564 | 35,486 |
Total Current Liabilities | 1,103,705 | 1,731,895 |
Deferred Credits and Other Noncurrent Liabilities: | ||
Deferred Income Taxes - Net | 116,321 | 92,166 |
Pension and Other Postretirement Benefits | 114,764 | 114,055 |
Environmental Remediation Costs | 148,515 | 189,036 |
Asset Retirement Obligations | 195,718 | 263,950 |
Derivatives - Energy Related Liabilities | 4,452 | 8,206 |
Derivatives - Other Noncurrent | 17,637 | 11,505 |
Regulatory Liabilities | 428,939 | 442,918 |
Other | 15,287 | 17,738 |
Total Deferred Credits and Other Noncurrent Liabilities | 1,041,633 | 1,139,574 |
Commitments and Contingencies (Note 11) | ||
Total Capitalization and Liabilities | 6,308,923 | 6,365,340 |
SJG | ||
Property, Plant and Equipment: | ||
Utility Plant, at original cost | 3,308,798 | 3,154,736 |
Accumulated Depreciation | (601,318) | (558,634) |
Property, Plant and Equipment - Net | 2,707,480 | 2,596,102 |
Investments: | ||
Restricted | 199 | 4,073 |
Total Investments | 199 | 4,073 |
Current Assets: | ||
Cash and Cash Equivalents | 1,528 | 2,678 |
Accounts Receivable | 62,447 | 84,940 |
Accounts Receivable - Related Parties | 2,856 | 2,333 |
Unbilled Revenues | 9,985 | 45,016 |
Provision for Uncollectibles | (16,837) | (14,032) |
Natural Gas in Storage, average cost | 15,041 | 14,839 |
Materials and Supplies, average cost | 619 | 619 |
Prepaid Taxes | 26,355 | 19,547 |
Derivatives - Energy Related Assets | 6,060 | 16,904 |
Other Prepayments and Current Assets | 19,316 | 25,074 |
Total Current Assets | 127,370 | 197,918 |
Regulatory and Other Noncurrent Assets: | ||
Regulatory Assets | 486,070 | 496,177 |
Long-Term Receivables | 38,530 | 30,958 |
Derivatives - Energy Related Assets | 425 | 5 |
Other | 23,375 | 23,322 |
Total Regulatory and Other Noncurrent Assets | 548,400 | 550,462 |
Total Assets | 3,383,449 | 3,348,555 |
Equity: | ||
Common Stock | 5,848 | 5,848 |
Premium on Common Stock | 465,244 | 355,744 |
Accumulated Other Comprehensive Loss | (27,850) | (27,875) |
Retained Earnings | 820,838 | 756,181 |
Total Equity | 1,264,080 | 1,089,898 |
Long-Term Debt | 899,307 | 547,161 |
Total Capitalization | 2,163,387 | 1,637,059 |
Current Liabilities: | ||
Notes Payable | 107,900 | 171,300 |
Current Portion of Long-Term Debt | 52,809 | 417,909 |
Accounts Payable - Commodity | 9,981 | 17,361 |
Accounts Payable - Other | 46,379 | 60,797 |
Accounts Payable - Related Parties | 5,339 | 9,752 |
Customer Deposits and Credit Balances | 26,462 | 22,430 |
Environmental Remediation Costs | 24,154 | 29,569 |
Taxes Accrued | 2,785 | 1,907 |
Derivatives - Energy Related Liabilities | 817 | 14,671 |
Derivatives - Other Current | 709 | 488 |
Interest Accrued | 11,239 | 6,789 |
Pension Benefits | 3,693 | 3,693 |
Other Current Liabilities | 6,774 | 12,489 |
Total Current Liabilities | 299,041 | 769,155 |
Deferred Credits and Other Noncurrent Liabilities: | ||
Deferred Income Taxes - Net | 387,840 | 357,637 |
Pension and Other Postretirement Benefits | 105,510 | 99,981 |
Environmental Remediation Costs | 78,735 | 101,693 |
Asset Retirement Obligations | 80,855 | 96,509 |
Derivatives - Energy Related Liabilities | 0 | 95 |
Derivatives - Other Noncurrent | 10,163 | 7,368 |
Regulatory Liabilities | 253,302 | 274,482 |
Other | 4,616 | 4,576 |
Total Deferred Credits and Other Noncurrent Liabilities | 921,021 | 942,341 |
Commitments and Contingencies (Note 11) | ||
Total Capitalization and Liabilities | $ 3,383,449 | $ 3,348,555 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | SJG | Common Stock | Common StockSJG | Premium on Common Stock | Premium on Common StockSJG | Treasury Stock | AOCL | AOCLSJG | Retained Earnings | Retained EarningsSJG | NCI |
Beginning Balance at Dec. 31, 2018 | $ 1,267,022 | $ 1,008,022 | $ 106,883 | $ 5,848 | $ 843,268 | $ 355,744 | $ (292) | $ (26,095) | $ (22,357) | $ 343,258 | $ 668,787 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Income (Loss) | 85,637 | 68,731 | 85,637 | 68,731 | ||||||||
Other Comprehensive Income, Net of Tax | 8 | 8 | 8 | 8 | ||||||||
Common Stock Issued or Granted Through Equity Offering or Stock Plans | 188,449 | 8,603 | 179,829 | 17 | ||||||||
Cash dividends | (26,562) | (26,562) | ||||||||||
Ending Balance at Mar. 31, 2019 | 1,514,554 | 1,076,761 | 115,486 | 5,848 | 1,023,097 | 355,744 | (275) | (26,087) | (22,349) | 402,333 | 737,518 | |
Beginning Balance at Dec. 31, 2018 | 1,267,022 | 1,008,022 | 106,883 | 5,848 | 843,268 | 355,744 | (292) | (26,095) | (22,357) | 343,258 | 668,787 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Income (Loss) | 37,433 | 59,104 | ||||||||||
Other Comprehensive Income, Net of Tax | 25 | 25 | ||||||||||
Ending Balance at Sep. 30, 2019 | 1,416,787 | 1,067,150 | 115,491 | 5,848 | 1,026,643 | 355,744 | (284) | (26,070) | (22,332) | 301,007 | 727,890 | |
Beginning Balance at Mar. 31, 2019 | 1,514,554 | 1,076,761 | 115,486 | 5,848 | 1,023,097 | 355,744 | (275) | (26,087) | (22,349) | 402,333 | 737,518 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Income (Loss) | (13,399) | 1,976 | (13,399) | 1,976 | ||||||||
Other Comprehensive Income, Net of Tax | 8 | 8 | 8 | 8 | ||||||||
Common Stock Issued or Granted Through Equity Offering or Stock Plans | 1,871 | 2 | 1,877 | (8) | ||||||||
Cash dividends | (26,562) | (26,562) | ||||||||||
Ending Balance at Jun. 30, 2019 | 1,476,472 | 1,078,745 | 115,488 | 5,848 | 1,024,974 | 355,744 | (283) | (26,079) | (22,341) | 362,372 | 739,494 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Income (Loss) | (34,805) | (11,604) | (34,805) | (11,604) | ||||||||
Other Comprehensive Income, Net of Tax | 9 | 9 | 9 | 9 | ||||||||
Common Stock Issued or Granted Through Equity Offering or Stock Plans | 1,671 | 3 | 1,669 | (1) | ||||||||
Cash dividends | (26,560) | (26,560) | ||||||||||
Ending Balance at Sep. 30, 2019 | 1,416,787 | 1,067,150 | 115,491 | 5,848 | 1,026,643 | 355,744 | (284) | (26,070) | (22,332) | 301,007 | 727,890 | |
Beginning Balance at Dec. 31, 2019 | 1,423,785 | 1,089,898 | 115,493 | 5,848 | 1,027,902 | 355,744 | (289) | (32,558) | (27,875) | 313,237 | 756,181 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Income (Loss) | 101,041 | 70,522 | 101,041 | 70,522 | ||||||||
Other Comprehensive Income, Net of Tax | 8 | 8 | 8 | 8 | ||||||||
Common Stock Issued or Granted Through Equity Offering or Stock Plans | (275) | 62 | (352) | 15 | ||||||||
Cash dividends | (27,276) | (27,276) | ||||||||||
Ending Balance at Mar. 31, 2020 | 1,497,283 | 1,160,428 | 115,555 | 5,848 | 1,027,550 | 355,744 | (274) | (32,550) | (27,867) | 387,002 | 826,703 | 0 |
Beginning Balance at Dec. 31, 2019 | 1,423,785 | 1,089,898 | 115,493 | 5,848 | 1,027,902 | 355,744 | (289) | (32,558) | (27,875) | 313,237 | 756,181 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Income (Loss) | 88,000 | 64,657 | ||||||||||
Other Comprehensive Income, Net of Tax | 25 | 25 | ||||||||||
Ending Balance at Sep. 30, 2020 | 1,631,953 | 1,264,080 | 125,735 | 5,848 | 1,217,822 | 465,244 | (314) | (32,533) | (27,850) | 317,007 | 820,838 | 4,236 |
Beginning Balance at Mar. 31, 2020 | 1,497,283 | 1,160,428 | 115,555 | 5,848 | 1,027,550 | 355,744 | (274) | (32,550) | (27,867) | 387,002 | 826,703 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Income (Loss) | (2,639) | 3,678 | (2,639) | 3,678 | ||||||||
Other Comprehensive Income, Net of Tax | 8 | 8 | 8 | 8 | ||||||||
Common Stock Issued or Granted Through Equity Offering or Stock Plans | 198,954 | 10,178 | 188,813 | (37) | ||||||||
Cash dividends | (27,277) | (27,277) | ||||||||||
Additional Investment by Shareholder | 9,500 | 9,500 | ||||||||||
Ending Balance at Jun. 30, 2020 | 1,666,329 | 1,173,614 | 125,733 | 5,848 | 1,216,363 | 365,244 | (311) | (32,542) | (27,859) | 357,086 | 830,381 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Income (Loss) | (10,402) | (9,543) | (10,402) | (9,543) | ||||||||
Other Comprehensive Income, Net of Tax | 9 | 9 | 9 | 9 | ||||||||
Common Stock Issued or Granted Through Equity Offering or Stock Plans | 1,458 | 2 | 1,459 | (3) | ||||||||
Cash dividends | (29,677) | (29,677) | ||||||||||
Capital Contributions of Non-Controlling Interest in Subsidiary | 4,236 | 4,236 | ||||||||||
Additional Investment by Shareholder | 100,000 | 100,000 | ||||||||||
Ending Balance at Sep. 30, 2020 | $ 1,631,953 | $ 1,264,080 | $ 125,735 | $ 5,848 | $ 1,217,822 | $ 465,244 | $ (314) | $ (32,533) | $ (27,850) | $ 317,007 | $ 820,838 | $ 4,236 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) - Parenthetical - $ / shares | 3 Months Ended | |||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Cash Dividends Declared (in dollars per share) | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.29 | $ 0.29 | $ 0.29 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: GENERAL - SJI provides a variety of energy-related products and services primarily through the following wholly-owned subsidiaries: ▪ SJIU is a holding company that owns SJG and ETG and, until its sale, owned ELK. • SJG is a regulated natural gas utility which distributes natural gas in the seven southernmost counties of New Jersey. • ETG is a regulated natural gas utility which distributes natural gas in seven counties in northern and central New Jersey. • ELK is a regulated natural gas utility which distributes natural gas in northern Maryland. On July 31, 2020, SJI sold ELK to a third-party buyer (see "Agreement to Sell ELK" below). ▪ SJE acquires and markets electricity to retail end users. ▪ SJRG markets natural gas storage, commodity and transportation assets along with fuel management services on a wholesale basis in the mid-Atlantic, Appalachian and southern states. ▪ SJEX owns oil, gas and mineral rights in the Marcellus Shale region of Pennsylvania. ▪ Marina develops and operates on-site energy-related projects. Included in Marina were MTF and ACB, which, in February 2020, were sold to a third-party buyer (see "Agreement to Sell MTF & ACB" below). Also included in Marina are two solar projects which are currently classified as held for sale, and a third solar project that was sold in March 2020 (see "Agreement to Sell Solar Assets" below). The significant wholly-owned subsidiaries of Marina include: • ACLE, BCLE, SCLE and SXLE own and operate landfill gas-to-energy production facilities in Atlantic, Burlington, Salem and Sussex Counties, respectively, located in New Jersey. On June 1, 2020, the BCLE, SCLE, and SXLE landfill gas-to-energy-production facilities ceased operations after receiving approval from their respective local governmental authorities to do so. • ESNJ-AL-Somers Point LLC, ESNJ-AL-Hamilton Square LLC, ESNJ-AL-Browns Mills LLC, and ESNJ-AL-Woodbury LLC own and operate solar generation sites located in New Jersey. All four were acquired in 2020 (see "Acquisitions" below). ▪ SJESP receives commissions on service contracts from a third party. ▪ Midstream invests in infrastructure and other midstream projects, including PennEast. See Note 3. ▪ SJEI provides energy procurement and cost reduction services. The significant wholly-owned subsidiaries of SJEI include: • AEP, an aggregator, broker and consultant in the retail energy markets, which was acquired in August 2019. • EnerConnex, which is a retail and wholesale broker and consultant that matches end users with suppliers for the procurement of natural gas and electricity. On August 7, 2020, SJEI acquired the remaining 75% of EnerConnex (see "Acquisitions" below), of which SJEI previously held a 25% interest. BASIS OF PRESENTATION - SJI's condensed consolidated financial statements include the accounts of SJI, its direct and indirect wholly-owned subsidiaries (including SJG) and subsidiaries in which SJI has a controlling interest. All significant intercompany accounts and transactions have been eliminated in consolidation. SJI is reporting on a consolidated basis the results of operations of the acquired entities discussed above as of their respective dates of acquisition, along with its controlling interest in Catamaran as noted below. As permitted by the rules and regulations of the SEC, the accompanying unaudited condensed consolidated financial statements of SJI and SJG contain certain condensed financial information and exclude certain footnote disclosures normally included in annual audited consolidated financial statements prepared in accordance with GAAP. These financial statements should be read in conjunction with SJI’s and SJG's Annual Reports on Form 10-K for the year ended December 31, 2019. In management’s opinion, the condensed consolidated financial statements of SJI and SJG reflect all normal recurring adjustments needed to fairly present their respective financial positions, operating results and cash flows at the dates and for the periods presented. SJI’s and SJG's businesses are subject to seasonal fluctuations and, accordingly, this interim financial information should not be the basis for estimating the full year’s operating results. As of September 30, 2020 and December 31, 2019, SJI had assets and liabilities held for sale on the condensed consolidated balance sheets as a result of the agreements to sell that are discussed below. Unless otherwise noted, the disclosures herein related to specific asset and liability balances as of September 30, 2020 and December 31, 2019 exclude assets and liabilities held for sale. See "Assets and Liabilities Held for Sale" below for additional information, including major classes of assets and liabilities classified as held for sale for both periods presented. ESTIMATES AND ASSUMPTIONS - The condensed consolidated financial statements were prepared to conform with GAAP. Management makes estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and related disclosures. Therefore, actual results could differ from those estimates. Significant estimates include amounts related to regulatory accounting, energy derivatives, environmental remediation costs, pension and other postretirement benefit costs, revenue recognition, goodwill and evaluation of equity method investments for other-than-temporary impairment. REGULATION - SJG and ETG are subject to the rules and regulations of the BPU, while ELK is subject to the rules and regulations of the MPSC. See Note 7 for a discussion of the Utilities' rate structure and regulatory actions. The Utilities maintain their accounts according to the BPU's and MPSC's prescribed Uniform System of Accounts. The Utilities follow the accounting for regulated enterprises prescribed by ASC 980, Regulated Operations . In general, Topic 980 allows for the deferral of certain costs (regulatory assets) and creation of certain obligations (regulatory liabilities) when it is probable that such items will be recovered from or refunded to customers in future periods. See Note 8 for a detailed discussion of regulatory assets and liabilities. ACQUISITIONS - SJI, through its wholly-owned subsidiary Marina, acquired ESNJ-AL-Somers Point LLC, ESNJ-AL-Hamilton Square LLC, and ESNJ-AL-Browns Mills LLC on June 30, 2020, and acquired ESNJ-AL-Woodbury LLC on August 21, 2020. These entities own newly operational solar-generation sites as noted above, and were acquired for $3.8 million in total consideration. See Note 17. These entities are separate from the solar assets and projects that are discussed under "Agreement to Sell Solar Assets." On August 7, 2020, SJI, through its wholly-owned subsidiary SJEI, completed its acquisition of the remaining 75% of EnerConnex for total consideration of $7.5 million in cash. Prior to this transaction, SJEI had a 25% interest in EnerConnex; as such, the acquisition of the remaining 75% was accounted for as a business combination achieved in stages. See Note 17. On August 12, 2020, SJI, through its wholly-owned subsidiary Marina, formed the Catamaran joint venture with a third party partner. On the same date, Catamaran purchased 100% ownership of Annadale, of which Marina has a 93% ownership interest. See Note 17. On August 31, 2019, SJI, through its wholly-owned subsidiary SJEI, completed its acquisition of AEP for $4.0 million in total consideration. ITC - The U.S. federal government provides businesses with an ITC under Section 48 of the Internal Revenue Code, available to the owner of solar and fuel cell systems that are purchased and placed into service. Among other requirements, such credits require projects to have commenced construction by a certain date. Accordingly, projects that commenced construction in 2019 were eligible for a 30% ITC. The credit will step down to 26% for projects that commence construction in 2020, 22% for projects that commence construction in 2021, and 10% for projects that commence construction thereafter. Marina is able to recognize a 30% ITC on the acquired solar assets of ESNJ-AL-Somers Point LLC, ESNJ-AL-Hamilton Square LLC, ESNJ-AL-Browns Mills LLC and ESNJ-AL-Woodbury LLC as all four projects commenced construction in 2019. Annadale also commenced construction in 2019 and qualified for a 30% ITC; however, as a fuel cell project, the ITC is capped at $1,500 per 0.5 kilowatt of capacity. Total ITCs on these solar and fuel cell projects recorded during the three and nine months ended September 30, 2020 were $12.0 million. No ITC was recorded during the three and nine months ended September 30, 2019. AGREEMENT TO SELL SOLAR ASSETS - See Note 1 to the Consolidated Financial Statements under "Agreement to Sell Solar Assets" in Item 8 of the Form 10-K for the year ended December 31, 2019 for additional information regarding SJI’s agreement to sell its portfolio of solar energy assets (each, a "Project" and, in total, the "Transaction"). During the first nine months of 2020, one Project was sold for total consideration of $7.2 million, which was the net book value of the asset on the date of sale. The solar assets related to that Project were recorded as Assets Held for Sale on the condensed consolidated balance sheets as of December 31, 2019. During the first nine months of 2019, seven Projects were sold for total consideration of $24.3 million. The Company currently has two solar projects that are not part of the Transaction but are expected to be sold in 2020. The solar assets related to these two projects were recorded as Assets Held for Sale on the condensed consolidated balance sheets as of both September 30, 2020 and December 31, 2019, where they will remain until they are transferred to a buyer. AGREEMENT TO SELL MTF & ACB - In December 2019, the Company announced it had entered into an agreement to sell MTF and ACB to a third-party buyer for an initial sales price of $100.0 million, which includes working capital. This sale closed on February 18, 2020 for a final sales price of $97.0 million, with the initial sales price being reduced by the amount of cash flows generated by MTF and ACB from October 1, 2019 through the date of closing. Before being sold, these assets and liabilities were recorded as Assets Held for Sale and Liabilities Held for Sale, respectively, on the condensed consolidated balance sheets as of December 31, 2019. AGREEMENT TO SELL ELK - In December 2019, the Company announced it had entered into an agreement to sell ELK to a third-party buyer. The MPSC approved this transaction during the second quarter of 2020 (see Note 7), and the transaction closed on July 31, 2020. Total consideration received was approximately $15.6 million, with working capital and other closing adjustments pending. The total net loss on the sale of ELK was not material. The assets and liabilities for ELK were recorded as Assets Held for Sale and Liabilities Held for Sale, respectively, on the condensed consolidated balance sheets as of December 31, 2019. ASSETS AND LIABILITIES HELD FOR SALE - As discussed above, SJI is involved in the potential sale of solar assets and has recorded $20.0 million of Nonutility Property & Equipment for two solar projects in Assets Held for Sale on the condensed consolidated balance sheets as of September 30, 2020. See 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, 2019 for more information about the Assets and Liabilities Held for Sale balances as of December 31, 2019, which, at the time, included three solar projects, MTF, ACB and ELK. IMPAIRMENT OF LONG-LIVED ASSETS - Long-lived assets that are held and used are reviewed for impairment whenever events or changes in circumstances indicate carrying values may not be recoverable. We performed a qualitative assessment of the long-lived assets of SJI and SJG as of September 30, 2020 to determine whether the impact of the COVID-19 pandemic, and the resulting fluctuations in market conditions, indicate that the fair value of the assets are less than their carrying value. There were no indicators noted through these qualitative assessments that indicate an impairment has occurred. No impairments were identified at SJI for the three and nine months ended September 30, 2020. An impairment charge of $1.3 million (pre-tax) was recorded within the on-site energy production segment at SJI for the three and nine months ended September 30, 2019, which was recorded in Impairment Charges on the condensed consolidated statements of income. This impairment charge was related to the expected purchase price of one of the unsold solar sites being less than its carrying value. No impairments were identified at SJG for the three and nine months ended September 30, 2020 and 2019, respectively. See discussion of impairment considerations related to goodwill and other intangible assets in Note 18. OPERATING REVENUES - Gas and electric revenues are recognized in the period the commodity is delivered to customers. For retail customers (including SJG) that are not billed at the end of the month, we record an estimate to recognize unbilled revenues for gas and electricity delivered from the date of the last meter reading to the end of the month. The Utilities also have revenues that arise from alternative revenue programs, which are discussed in Note 16. For ETG and SJG, unrealized gains and losses on energy-related derivative instruments are recorded in Regulatory Assets or Regulatory Liabilities on the condensed consolidated balance sheets of SJI and SJG (see Note 12) until they become realized, in which case they are recognized in operating revenues. SJRG's gas revenues are recognized in the period the commodity is delivered. Realized and unrealized gains and losses on energy-related derivative instruments are also recognized in operating revenues for SJRG. SJRG presents revenues and expenses related to its energy trading activities on a net basis in operating revenues. This net presentation has no effect on operating income or net income. The Company recognizes revenues on commissions received related to SJESP appliance service contracts, along with AEP and EnerConnex energy procurement service contracts from a third party, on a monthly basis as the commissions are earned. Marina recognizes revenues for renewable energy projects when renewable energy credits have been transferred to the third party at an agreed upon price. We considered the impact the COVID-19 pandemic has had on operating revenues, noting that SJI and SJG have not seen a significant reduction in revenues as a result of the pandemic. This is due to gas and electricity being considered an essential service and continuing to be delivered timely to customers, and no delays or operational shutdowns taking place to date. Given the performance obligation is satisfied at delivery, which matches the time when the Company is able to invoice the customer, the Company is confident in being able to meet its future performance obligations. To the extent that the pandemic does impact our ability to deliver in the future, operating revenues could be impacted. ARO - The amounts included under ARO are primarily related to the legal obligations SJI and SJG have to cut and cap gas distribution pipelines when taking those pipelines out of service in future years. These liabilities are generally recognized upon the acquisition or construction of the asset, or when management has adequate information in order to make an estimate of the obligation. The related asset retirement cost is capitalized concurrently by increasing the carrying amount of the related asset by the same amount as the liability. Changes in the liability are recorded for the passage of time (accretion) or for revisions to cash flows originally estimated to settle the ARO. ARO activity for the nine months ended September 30, 2020 as follows (in thousands): SJI (includes SJG and all other consolidated subsidiaries): 2020 ARO as of January 1, $ 263,950 Accretion 7,129 Additions 3,266 Settlements (6,195) Revisions in Estimated Cash Flows (A) (72,432) ARO as of September 30, $ 195,718 SJG: 2020 ARO as of January 1, $ 96,509 Accretion 3,078 Additions 1,161 Settlements (1,142) Revisions in Estimated Cash Flows (A) (18,751) ARO as of September 30, $ 80,855 (A) The revisions in estimated cash flows for SJI and SJG for the nine months ended September 30, 2020 shown in the table above reflect decreases in the estimated retirement costs primarily as a result of changes in contractor costs to settle the ARO liability. Corresponding entries were made to Regulatory Assets and Utility Plant, thus having no impact on earnings. TREASURY STOCK - SJI uses the par value method of accounting for treasury stock. As of September 30, 2020 and December 31, 2019, SJI held 251,524 and 231,514 shares of treasury stock, respectively. These shares are related to deferred compensation arrangements where the amounts earned are held in the stock of SJI. AFUDC - SJI and SJG record AFUDC, which represents the estimated debt and equity costs of capital funds that are necessary to finance the construction of new facilities. While cash is not realized currently, AFUDC increases the regulated revenue requirement and is included in rate base and recovered over the service life of the asset through a higher rate base and higher depreciation. INCOME TAXES - Deferred income taxes are provided for all significant temporary differences between the book and taxable bases of assets and liabilities in accordance with ASC 740, Income Taxes . A valuation allowance is established when it is determined that it is more likely than not that a deferred tax asset will not be realized. GOODWILL - See Note 18. AMA - On July 1, 2018, SJRG purchased from a third party an AMA whereby SJRG manages the pipeline capacity of ETG. Total cash payment was $11.3 million. The AMA expires on March 31, 2022. Under the AMA, SJRG pays ETG an annual fee of $4.25 million, plus additional profit sharing as defined in the AMA. The amounts received by ETG will be credited to its BGSS clause and returned to its ratepayers. The total purchase price was allocated as follows (in thousands): Natural Gas in Storage $ 9,685 Intangible Asset 19,200 Profit Sharing - Other Liabilities (17,546) Total Consideration $ 11,339 As of September 30, 2020 and December 31, 2019, the balance of the intangible asset is $7.7 million and $11.5 million, respectively, and is recorded to Other Current and Noncurrent Assets on the condensed consolidated balance sheets of SJI, with the reduction being due to amortization. As of September 30, 2020 and December 31, 2019, the balance in the liability is $7.5 million and $10.6 million, respectively, and is recorded to Regulatory Liabilities on the condensed consolidated balance sheets of SJI, with the change resulting from profit sharing earned. VSIP - SJG entered into a VSIP program with IBEW Local 1293 and IAM Local 76 union employees over the age of 60 years old with 10 or more years of service to SJG. Communication was made to these employees in both the first and second quarter 2020, with acceptance made by the Local 1293 employees by April 14, 2020 and by the Local 76 employees by May 6, 2020. Total cost to SJG for the VSIP recorded during the second quarter of 2020 was $0.6 million, all of which related to employees of SJG and was included in Operations Expense on the condensed consolidated statements of income (loss) of SJI and SJG for the nine months ended September 30, 2020. THIRD PARTY GAS SUPPLIER REFUND - During the second quarter of 2020, a third party pipeline capacity supplier that is utilized by the Utilities and the wholesale energy operations at SJRG in the normal course of business settled its rate case with the FERC. As part of the executed settlement, the third party supplier was ordered to refund customers for over billings on transportation costs that had been charged during the rate case period. As a result, in June 2020, SJRG and SJG received notification from the supplier that refunds totaling approximately $11.2 million and $10.0 million, respectively, would be received. SJRG and SJG received the refunds in July 2020. Of the total SJRG refund, approximately $7.1 million was remitted to ETG under the terms of the AMA (see above). As transportation costs incurred by ETG under the AMA can be recovered from ratepayers under its BGSS rate mechanism, the $7.1 million was recorded as a Regulatory Liability (see Note 8). For the remaining $3.9 million retained by SJRG, approximately $3.8 million was recorded as Operating Revenues; as noted above, SJRG presents revenues and expenses related to its energy trading activities on a net basis in Operating Revenues. The remaining $0.1 million in interest was recorded in Other Income. As SJG also recovers these costs through its BGSS rate mechanism, the $10.0 million refund was recorded as a reduction to SJG's Regulatory Assets (see Note 8). CURRENT PORTION OF LONG-TERM DEBT & SHORT-TERM BORROWINGS - As of September 30, 2020, the Company had $142.8 million of long-term debt that was due within one year ("current portion"), along with $597.0 million of notes payable which included borrowings under the commercial paper program and revolving credit facilities ("short-term borrowings"; see Note 10). As of December 31, 2019, the Company had $467.9 million of current portion and $848.7 million of short-term borrowings. This reduction is the result of SJI refinancing $600.0 million of short-term and current portion amounts that were outstanding as of December 31, 2019, including $400.0 million at SJG (see Note 14), with the remainder being paid down using proceeds from the agreements to sell assets discussed above. SJI expects to further reduce its current portion and short-term borrowings over the next twelve months by utilizing funds provided from refinancing activities and from the Company's revolving credit facilities. Although there can be no assurance, management believes that actions presently being taken to pay off or refinance the long-term debt and borrowings that are due within the next year will be successful, as the Company has been successful in refinancing debt in the past. No adjustments have been made to the financial statements to account for this uncertainty. AOCL - SJI and SJG release income tax effects from AOCL on an individual unit of account basis. NEW ACCOUNTING PRONOUNCEMENTS - Other than as described below, no new accounting pronouncement had, or is expected to have, a material impact on the condensed consolidated financial statements of SJI, or the condensed financial statements of SJG. Recently Adopted Standards: Standard Description Date of Adoption Application Effect on the Financial Statements of SJI and SJG ASU 2017-04: The update simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount. January 1, 2020 Prospective Adoption of this guidance did not have a material impact on the financial statement results of SJI or SJG. ASU 2018-13: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement This ASU modifies the disclosure requirements on the timing of liquidation of an investee's assets and the description of measurement uncertainty at the reporting date. Entities are now required to disclose: (1) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements; and (2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. Further, the standard eliminates disclosure requirements with respect to: (1) the transfers between Level 1 and Level 2 of the fair value hierarchy; (2) the policy for timing of transfers between levels; and (3) the valuation process for Level 3 fair value measurements. January 1, 2020 Prospective for added disclosures and for the narrative description of measurement uncertainty Adoption of this guidance did not have a material impact on the financial statement results of SJI or SJG. Disclosures requirements are reflected in Note 13. ASU 2019-04: Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments The amendments in this ASU provide codification improvements and further clarification on several topics, including ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, as well as ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10). See ASU 2016-13 below for more detail. January 1, 2020 Amendments related to ASU 2016-01 and ASU 2016-13 - modified retrospective; all other amendments - prospective Adoption of this guidance did not have a material impact on the financial statement results of SJI or SJG. ASU 2016-13: Measurement of Credit Losses on Financial Instruments The amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to develop credit loss estimates. An entity will apply the amendment through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. January 1, 2020 Modified retrospective The impact of adoption did not result in an adjustment to retained earnings for either SJI or SJG as of January 1, 2020. Standards Not Yet Effective: Standard Description Date of Adoption Application Effect on the Financial Statements of SJI and SJG ASU 2018-14: This ASU eliminates requirements for certain disclosures such as the amount and timing of plan assets expected to be returned to the employer and the amount of future annual benefits covered by insurance contracts. The standard adds new disclosures that provide information relating to the weighted-average interest crediting rate for cash balance plans and other plans with promised interest crediting rates and an explanation for significant gains or losses related to changes in the benefit obligations for the period. Annual disclosures for the fiscal year ending December 31, 2020 Retrospective Adoption of this guidance will not have a material impact on the financial statements of SJI and SJG. Management is currently determining the impact that adoption of this guidance will have on the SJI and SJG disclosures within the notes to the financial statements. ASU 2019-12: This ASU removes exceptions related to the incremental approach for intraperiod tax allocation, the requirement to recognize a deferred tax liability for changes in ownership of a foreign subsidiary or equity method investment, and the general methodology for calculating income taxes in an interim period when the year-to-date loss exceeds the anticipated loss. The guidance also adds requirements to reflect changes to tax laws or rates in the annual effective tax rate computation in the interim period in which the changes were enacted, to recognize franchise or other similar taxes that are partially based on income as an income-based tax and any incremental amounts as non-income-based tax, and to evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction. January 1, 2021; early adoption permitted Modified retrospective for amendments related to changes in ownership of a foreign subsidiary or equity method investment; Modified retrospective or retrospective for amendments related to taxes partially based on income; Prospective for all other amendments Management is currently determining the impact that adoption of this guidance will have on the financial statements of SJI and SJG. ASU 2020-01: Clarifying the Interactions between Topic 321 (Investments - Equity Securities), Topic 323 (Investments - Equity Method and Joint Ventures), and Topic 815 (Derivatives and Hedging) The amendments in this ASU clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. The amendments in this ASU also clarify that for the purposes of applying Topic 815, an entity should not consider whether, upon the settlement of a forward contract or exercise of a purchased option, individually or with existing investments, the underlying securities would be accounted for under the equity method in Topic 323 or the fair value option in accordance with the financial instruments guidance in Topic 825. January 1, 2021; early adoption permitted Prospective Management is currently determining the impact that adoption of this guidance will have on the financial statements of SJI and SJG. ASU 2020-04: Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in this ASU provide various optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. March 12, 2020 through December 31, 2022 An entity may elect to apply the amendments for contract modifications by Topic or Industry Subtopic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Prospective for contract modifications and hedging relationships. Once elected for a Topic or an Industry Subtopic, the amendments in this Update must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. Management is currently determining the impact that adoption of this guidance will have on the financial statements of SJI and SJG. Management is also evaluating timing of adoption. ASU 2020-06: Accounting for Convertible Instruments and Contracts in an Entity's Own Equity The amendments in this ASU simplify the accounting for convertible instruments by removing certain separation models in Subtopic 470-20. Under the amendments, embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, or that do not result in substantial premiums accounted for as paid-in capital. Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost and a convertible preferred stock will be accounted for as a single equity instrument measured at its historical cost, as long as no other features require bifurcation and recognition as derivatives. The amendments also add new convertible instrument disclosure requirements. Additionally, the amendments in this ASU remove certain conditions from the settlement guidance within the derivative scope exception guidance contained in Subtopic 815-40 and further clarify the derivative scope exception guidance. Finally, the amendments in this ASU align the diluted EPS calculation for convertible instruments by requiring that an entity use the if-converted method instead of the treasury stock method when calculated diluted EPS for convertible instruments. January 1, 2022; early adoption permitted, but not before January 1, 2021 Retrospective or Modified Retrospective Management is currently determining the impact that adoption of this |
STOCK-BASED COMPENSATION PLAN
STOCK-BASED COMPENSATION PLAN | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION PLAN | STOCK-BASED COMPENSATION PLAN: Under SJI's 2015 Omnibus Equity Compensation Plan (Plan), shares may be issued to SJI’s officers (Officers), non-employee directors (Directors) and other key employees. No options were granted or outstanding during the nine months ended September 30, 2020 and 2019. No stock appreciation rights have been issued under the Plan. During the nine months ended September 30, 2020 and 2019, SJI granted 225,278 and 184,791 total restricted shares, respectively, to Officers and other key employees under the Plan. SJI grants time-based shares of restricted stock, one-third of which vest annually over a three-year period and which are limited to a 100% payout. The vesting and payout of time-based shares of restricted stock is solely contingent upon the service requirement being met in years one two three Performance-based restricted shares vest over a three-year period and are subject to SJI achieving certain market and earnings-based performance targets, which can cause the actual amount of shares that ultimately vest to range from 0% to 200% of the original shares granted. During the nine months ended September 30, 2020 and 2019, Officers and other key employees were granted 119,827 and 96,241 shares of performance-based restricted stock, respectively, which are included in the total restricted shares noted above. Grants containing market-based performance targets use SJI's TSR relative to a peer group to measure performance. As TSR-based grants are contingent upon market and service conditions, SJI is required to measure and recognize stock-based compensation expense based on the fair value at the date of grant on a straight-line basis over the requisite three-year period of each award. In addition, SJI identifies specific forfeitures of share-based awards, and compensation expense is adjusted accordingly over the requisite service period. Compensation expense is not adjusted based on the actual achievement of performance goals. The fair value of TSR-based restricted stock awards on the date of grant is estimated using a Monte Carlo simulation model. Earnings-based performance targets include pre-defined EGR and ROE goals to measure performance. Performance targets include pre-defined CEGR for SJI. As EGR-based, ROE-based and CEGR-based grants are contingent upon performance and service conditions, SJI is required to measure and recognize stock-based compensation expense based on the fair value at the date of grant over the requisite three-year period of each award. The fair value is measured as the market price at the date of grant. The initial accruals of compensation expense are based on the estimated number of shares expected to vest, assuming the requisite service is rendered and probable outcome of the performance condition is achieved. That estimate is revised if subsequent information indicates that the actual number of shares is likely to differ from previous estimates. Compensation expense is ultimately adjusted based on the actual achievement of service and performance targets. During the nine months ended September 30, 2020 and 2019, SJI granted 38,456 and 30,961 restricted shares, respectively, to Directors. Shares issued to Directors vest over twelve months and contain no performance conditions. As a result, 100% of the shares granted generally vest. The following table summarizes the nonvested restricted stock awards outstanding for SJI at September 30, 2020 and the assumptions used to estimate the fair value of the awards: Grants Shares Outstanding Fair Value Per Share Expected Volatility Risk-Free Interest Rate Officers & Key Employees - 2018 - TSR 48,304 $ 31.05 21.9 % 2.00 % 2018 - CEGR, Time 63,389 $ 31.23 N/A N/A 2019 - TSR 36,642 $ 32.88 23.2 % 2.40 % 2019 - CEGR, Time 101,982 $ 31.38 N/A N/A 2020 - TSR 46,752 $ 25.51 34.8 % 0.21 % 2020 - CEGR, Time 178,526 $ 25.19 N/A N/A Directors - 2020 38,456 $ 32.07 N/A N/A Expected volatility is based on the actual volatility of SJI’s share price over the preceding three-year period as of the valuation date. The risk-free interest rate is based on the zero-coupon U.S. Treasury Bond, with a term equal to the three-year term of the Officers’ and other key employees’ restricted shares. As notional dividend equivalents are credited to the holders during the three-year service period, no reduction to the fair value of the award is required. As the Directors’ restricted stock awards contain no performance conditions and dividends are paid or credited to the holder during the requisite service period, the fair value of these awards is equal to the market value of the shares on the date of grant. The following table summarizes the total stock-based compensation cost to SJI for the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Officers & Key Employees $ 1,220 $ 1,071 $ 3,671 $ 3,355 Directors 302 209 899 613 Total Cost 1,522 1,280 4,570 3,968 Capitalized (12) (119) (35) (153) Net Expense $ 1,510 $ 1,161 $ 4,535 $ 3,815 The table above does not reflect the reversal of approximately $1.3 million in 2020 of previously recorded costs associated with TSR and CEGR-based grants for which performance goals were not met. As of September 30, 2020, there was $7.0 million of total unrecognized compensation cost related to nonvested stock-based compensation awards granted under the Plan. That cost is expected to be recognized over a weighted average period of 1.8 years. The following table summarizes information regarding restricted stock award activity for SJI during the nine months ended September 30, 2020, excluding accrued dividend equivalents: Officers and Other Key Employees Directors Weighted Nonvested Shares Outstanding, January 1, 2020 402,146 30,961 $ 31.50 Granted 225,278 38,456 $ 26.32 Cancelled/Forfeited (14,867) — $ 31.48 Vested* (136,963) (30,961) $ 31.49 Nonvested Shares Outstanding, September 30, 2020 475,594 38,456 $ 28.84 *Earnings and performance-based targets during the three-year vesting periods were not attained for the 2017 Officer and other key employee grants that vested in the first quarter of 2020. As a result, no shares were awarded in 2020 associated with the 2017 TSR and CEGR-based grants. The targets for the time-based grants were met. As a result, during the nine months ended September 30, 2020, SJI awarded 72,470 shares to its Officers and other key employees at a market value of $2.1 million. During the nine months ended September 30, 2019, SJI awarded 125,288 shares at a market value of $3.7 million. These awarded amounts for 2020 and 2019 include awards for previously deferred shares that were paid during the nine month periods. During the nine months ended September 30, 2020 and 2019, SJI also awarded 30,961 and 26,416 shares to its Directors at a market value of $0.8 million for both periods. SJI has a policy of issuing new shares to satisfy its obligations under the Plan; therefore, there are no cash payment requirements resulting from the normal operation of the Plan. However, a change in control could result in such shares becoming non-forfeitable or immediately payable in cash. At the discretion of the Officers, Directors and other key employees, the receipt of vested shares can be deferred until future periods. These deferred shares are included in Treasury Stock on the condensed consolidated balance sheets. SJG - Officers and other key employees of SJG participate in the stock-based compensation plans of SJI. During the nine months ended September 30, 2020 and 2019, SJG officers and other key employees were granted 7,902 and 6,095 shares of SJI restricted stock, respectively, which had an immaterial impact to SJG's financial statements for both the nine months ended September 30, 2020 and 2019. |
AFFILIATIONS, DISCONTINUED OPER
AFFILIATIONS, DISCONTINUED OPERATIONS AND RELATED-PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
AFFILIATIONS, DISCONTINUED OPERATIONS AND RELATED-PARTY TRANSACTIONS | AFFILIATIONS, DISCONTINUED OPERATIONS AND RELATED-PARTY TRANSACTIONS: AFFILIATIONS — The following affiliated entities are accounted for under the equity method: PennEast - Midstream has a 20% investment in PennEast. SJG and ETG are each parties to a precedent capacity agreement with PennEast. The following events have occurred with respect to PennEast in recent months: • On September 10, 2019, the U.S. Court of Appeals for the Third Circuit ruled that PennEast does not have eminent domain authority over NJ state-owned lands. A Petition for Rehearing En Banc was denied by the U.S. Court of Appeals for the Third Circuit on November 5, 2019. • On October 8, 2019, the NJDEP denied and closed PennEast’s application for several permits without prejudice, citing the Third Circuit decision. On October 11, 2019, PennEast submitted a letter to the NJDEP objecting to its position that the application is administratively incomplete. PennEast's objections were rejected by the NJDEP on November 18, 2019. • In December 2019, PennEast asked the FERC for a two-year extension to construct the pipeline. • On January 30, 2020, the FERC voted to approve PennEast’s petition for a declaratory order and expedited action requesting that the body issue an order interpreting the Natural Gas Act’s eminent domain authority. On the same day, PennEast filed an amendment with FERC to construct PennEast in two phases. Phase one consists of construction of a pipeline in Pennsylvania from the eastern Marcellus Shale region in Luzerne County that would terminate in Northampton County. Phase two includes construction of the remaining original certificated route in Pennsylvania and New Jersey. Construction is expected to begin following approval by FERC of the phased approach and receipt of any remaining governmental and regulatory permits. • On February 18, 2020, PennEast filed a Petition for a Writ of Certiorari with the Supreme Court of the United States ("petition") to review the September 10, 2019 Third Circuit decision. • On February 20, 2020, FERC granted PennEast’s request for a two-year extension to complete the construction of the pipeline. • On April 14, 2020, The U.S. Supreme Court ordered the state of New Jersey to respond to PennEast's petition. The court directed NJ respondents, including state agencies and the NJ Conservation Foundation, to answer the petition by PennEast. The state responded on June 2. • On June 25, 2020, the U.S. Supreme Court examined the PennEast case to determine if it would review the decision by the U.S. Court of Appeals for the Third Circuit. • On June 29, 2020, the U.S. Supreme Court invited the U.S. Solicitor General to file a brief expressing the views of the United States. PennEast management remains committed to pursuing the project and intends to pursue all available options. SJI, along with the other partners, are intending to contribute to the project. Our investment in PennEast totaled $89.4 million and $82.7 million as of September 30, 2020 and December 31, 2019, respectively. At September 30, 2020, the Company evaluated its investment in PennEast for impairment and determined there is not a triggering event for other-than-temporary impairment, and has not recorded any impairment charge to reduce the carrying value of our investment. Our evaluation considered that the pending legal proceedings are ongoing, and the intent is to move forward with all potential legal proceedings and other options available. Our evaluation also considered the current economic conditions as a result of COVID-19, noting that the timelines, potential options and legal proceedings have not been impacted. However, it is reasonably possible that the legal proceedings could have unfavorable outcomes, or there could be other future unfavorable developments, such as a reduced likelihood of success from development options and legal outcomes, estimated increases in construction costs, increases in the discount rate, or further significant delays, or PennEast could conclude that the project is not viable or does not go forward as actions progress. These could impact our conclusions with respect to other-than-temporary impairment and may require that we recognize an impairment charge of up to our recorded investment in the project, net of any cash and working capital. We will continue to monitor and update this analysis as required. Different assumptions could affect the timing and amount of any charge recorded in a period. Energenic - Marina and a joint venture partner formed Energenic, in which Marina has a 50% equity interest. Energenic developed and operated on-site, self-contained, energy-related projects. Energenic currently does not have any projects that are operational. Millennium - SJI and a joint venture partner formed Millennium, in which SJI has a 50% equity interest. Millennium reads utility customers’ meters on a monthly basis for a fee. Potato Creek - SJI and a joint venture partner formed Potato Creek, in which SJI has a 30% equity interest. Potato Creek owns and manages the oil, gas and mineral rights of certain real estate in Pennsylvania. EnergyMark - SJE has a 33% investment in EnergyMark, an entity that acquires and markets natural gas to retail end users. SJRG had net sales to EnergyMark of $1.8 million and $3.4 million for the three months ended September 30, 2020 and 2019, respectively and $10.4 million and $22.6 million for the nine months ended September 30, 2020 and 2019, respectively. Affiliate Transactions - During the first nine months of 2020, SJI had net repayments from unconsolidated affiliates of $1.2 million. During the first nine months of 2019, SJI made investments in and advances to unconsolidated affiliates of $6.0 million. As of September 30, 2020 and December 31, 2019, the outstanding balance of Notes Receivable – Affiliate was $14.9 million and $18.1 million, respectively. These Notes Receivable-Affiliates balances are broken out as follows: • As of September 30, 2020 and December 31, 2019, $12.4 million and $13.1 million, respectively, of notes are related to Energenic; such notes are secured by Energenic's cogeneration assets for energy service projects, accrue interest at 7.5% and are to be repaid through 2025. Losses incurred in the current periods at Energenic are offset against the Notes Receivable – Affiliate balance as our investment in the Energenic affiliate has been reduced to zero as a result of prior period losses. • As of September 30, 2020 and December 31, 2019, the remaining $2.5 million and $5.0 million, respectively, of these notes are unsecured and accrue interest at variable rates. SJI holds significant variable interests in these entities but is not the primary beneficiary. Consequently, these entities are accounted for under the equity method because SJI does not have both (a) the power to direct the activities of the entity that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the entity that could potentially be significant to the entity or the right to receive benefits from the entity that could potentially be significant to the entity. As of September 30, 2020 and December 31, 2019, SJI had a net asset of approximately $92.9 million and $87.1 million, respectively, included in Investment in Affiliates on the condensed consolidated balance sheets related to equity method investees. SJI’s maximum exposure to loss from these entities as of September 30, 2020 and December 31, 2019 is limited to its combined investments in these entities and the Notes Receivable-Affiliate in the aggregate amount of $107.8 million and $105.2 million, respectively. DISCONTINUED OPERATIONS - Discontinued Operations consist of the environmental remediation activities related to the properties of SJF and the product liability litigation and environmental remediation activities related to the prior business of Morie. SJF is a subsidiary of EMI, an SJI subsidiary, which previously operated a fuel oil business. Morie is the former sand mining and processing subsidiary of EMI. EMI sold the common stock of Morie in 1996. SJI conducts tests annually to estimate the environmental remediation costs for these properties (see Note 11). Summarized operating results of the discontinued operations for the three and nine months ended September 30, 2020 and 2019, were (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Loss before Income Taxes: Sand Mining $ 3 $ (16) $ (32) $ (60) Fuel Oil (76) (59) (193) (212) Income Tax Benefits 15 16 47 56 Loss from Discontinued Operations — Net $ (58) $ (59) $ (178) $ (216) Earnings Per Common Share from Discontinued Operations — Net: Basic and Diluted $ — $ — $ — $ — SJG RELATED-PARTY TRANSACTIONS - There have been no significant changes in the nature of SJG’s related-party transactions since December 31, 2019. See Note 3 to the Financial Statements in Item 8 of SJI's and SJG’s Form 10-K for the year ended December 31, 2019 for a detailed description of the related parties and their associated transactions. A summary of related-party transactions involving SJG, excluding pass-through items, included in SJG's Operating Revenues were as follows (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Operating Revenues/Affiliates: SJRG $ 595 $ 1,092 $ 2,192 $ 3,518 Marina — 82 60 290 Other 20 20 59 60 Total Operating Revenue/Affiliates $ 615 $ 1,194 $ 2,311 $ 3,868 Related-party transactions involving SJG, excluding pass-through items, included in SJG's Cost of Sales and Operating Expenses were as follows (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Costs of Sales/Affiliates (Excluding depreciation and amortization) SJRG* $ 1,808 $ 2,326 $ 3,404 $ 8,908 Operations Expense/Affiliates: SJI $ 5,909 $ 5,087 $ 17,463 $ 15,507 SJIU 743 630 2,616 1,971 Millennium 814 794 2,461 2,118 Other 453 340 1,335 6,790 Total Operations Expense/Affiliates $ 7,919 $ 6,851 $ 23,875 $ 26,386 *These costs are included in SJG's Cost of Sales on the condensed statements of income/(loss). As discussed in 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, 2019, revenues and expenses related to the energy trading activities of the wholesale energy operations at SJRG are presented on a net basis in Operating Revenues – Nonutility on the condensed consolidated income statement. |
COMMON STOCK
COMMON STOCK | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
COMMON STOCK | COMMON STOCK: The following shares were issued and outstanding for SJI: 2020 Beginning Balance, January 1 92,394,155 New Issuances During the Period: ATM Equity Offering 8,122,283 Stock-Based Compensation Plan 71,474 Ending Balance, September 30 100,587,912 The par value ($1.25 per share) of stock issued was recorded in Common Stock and the net excess over par value was recorded in Premium on Common Stock, which shows an increase on the condensed consolidated balance sheets from December 31, 2019 to September 30, 2020 primarily due to the issuance of shares under the ATM equity offering. There were 2,339,139 shares of SJG's common stock (par value $2.50 per share) outstanding as of September 30, 2020. SJG did not issue any new shares during the period. SJIU owns all of the outstanding common stock of SJG. ATM EQUITY OFFERING - In April 2020, SJI entered into an ATM Equity Offering Sales Agreement (the "Sales Agreement") to sell, from time to time, shares of the Company’s common stock, par value $1.25 per share, having an aggregate sale price up to $200.0 million, through an “at-the-market” equity offering program. Pursuant to the Sales Agreement, the shares of common stock were to be offered and sold through any of the named sales agents in negotiated transactions or transactions that are deemed to be “at-the-market” offerings. In June 2020, 8,122,283 shares were sold pursuant to the Sales Agreement at an average market price of approximately $24.62 for total net proceeds of $198.0 million after deducting commissions and other general & administrative expenses. These sales exhausted the shares that were available for sale under the Sales Agreement. The Company is using the net proceeds from this offering for general corporate purposes. CONVERTIBLE UNITS - In 2018, SJI issued and sold 5,750,000 Equity Units, initially in the form of Corporate Units, which included 750,000 Corporate Units pursuant to the underwriters’ option. Each Corporate Unit has a stated amount of $50 and is comprised of (a) a purchase contract obligating the holder to purchase from the Company, and for the Company to sell to the holder for a price in cash of $50, on the purchase contract settlement date, or April 15, 2021, subject to earlier termination or settlement, a certain number of shares of common stock; and (b) a 1/20, or 5%, undivided beneficial ownership interest in $1,000 principal amount of SJI’s 2018 Series A 3.70% Remarketable Junior Subordinated Notes due 2031. SJI will pay the holder quarterly contract adjustment payments at a rate of 3.55% per year on the stated amount of $50 per Equity Unit, in respect of each purchase contract, subject to the Company's right to defer these payments. The net proceeds, after amortization of the underwriting discounts, are recorded as Long-Term Debt on the condensed consolidated balance sheets. The convertible units consisted of the following (in thousands): September 30, 2020 December 31, 2019 Principal amount: Principal (A) $ 287,500 $ 287,500 Unamortized debt discount and issuance costs (A) 7,323 7,737 Net carrying amount $ 280,177 $ 279,763 Carrying amount of the equity component (B) $ — $ — (A) Included in the condensed consolidated balance sheets within Long-Term Debt. (B) There is currently no equity portion. During both the three months ended September 30, 2020 and 2019, the Company recognized approximately $0.1 million of amortization of debt discount and issuance costs prior to capitalization of interest, and $2.7 million of coupon interest expense, all of which was included in Interest Charges on the condensed consolidated statements of income/(loss). During both the nine months ended September 30, 2020 and 2019, the Company recognized approximately $0.4 million of amortization of debt discount and issuance costs prior to capitalization of interest, and $8.0 million of coupon interest expense, all of which was included in Interest Charges on the condensed consolidated statements of income/(loss). The effective interest rate was 4.0%. SJI's EPS — SJI's Basic EPS is based on the weighted-average number of common shares outstanding. The incremental shares required for inclusion in the denominator for the diluted EPS calculation were 124,705 and 116,904 for the nine months ended September 30, 2020 and 2019, respectively. For the three months ended September 30, 2020 and 2019, incremental shares of 141,062 and 129,979, respectively, were not included in the denominator for the diluted EPS calculation because they would have an antidilutive effect on EPS. These additional shares relate to SJI's restricted stock as discussed in Note 2, along with the impact of the Equity Units discussed above, accounted for under the treasury stock method. DRP — SJI offers a DRP which allows participating shareholders to purchase shares of SJI common stock by automatic reinvestment of dividends or optional purchases. SJI currently purchases shares on the open market to fund share purchases by DRP participants, and as a result SJI did not raise any equity capital through the DRP in 2019 or the first nine months of 2020. SJI does not intend to issue equity capital via the DRP during the remainder of 2020. ADDITIONAL INVESTMENT BY SHAREHOLDER - SJG received $100.0 million and $109.5 million in equity infusions from SJI during the three and nine months ended September 30, 2020, respectively. There was no equity infusion during the three and nine months ended September 30, 2019. Future equity contributions will occur on an as-needed basis. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2020 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS: RESTRICTED INVESTMENTS — SJI and SJG maintain margin accounts with certain counterparties to support their risk management activities associated with hedging commodities. The balances required to be held in these margin accounts increase as the net value of the outstanding energy-related contracts with the respective counterparties decrease. The following table provides SJI's (including SJG) and SJG's balances of Restricted Investments as well as presents a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that total to the amounts shown in the condensed consolidated statements of cash flows (in thousands): As of September 30, 2020 Balance Sheet Line Item SJI SJG Cash and Cash Equivalents $ 10,103 $ 1,528 Restricted Investments 199 199 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 10,302 $ 1,727 As of December 31, 2019 Balance Sheet Line Item SJI SJG Cash and Cash Equivalents $ 6,417 $ 2,678 Restricted Investments 21,964 4,073 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 28,381 $ 6,751 The carrying amounts of the Restricted Investments for both SJI and SJG approximate their fair values at September 30, 2020 and December 31, 2019, which would be included in Level 1 of the fair value hierarchy (see Note 13). ALLOWANCE FOR CREDIT LOSSES - Accounts receivable are recorded gross on the condensed consolidated balance sheets with allowance for credit losses shown as a separate line item titled Provision for Uncollectibles. A summary of changes in the allowance for credit losses is as follows (in thousands): Three Months Ended Nine Months Ended SJI (includes SJG and all other consolidated subsidiaries): Balance at beginning of period $ 30,410 $ 19,829 Provision for expected credit losses 5,416 19,994 Recoveries of accounts previously written off 126 688 Uncollectible accounts written off (2,935) (7,494) Balance at end of period $ 33,017 $ 33,017 SJG: Balance at beginning of period $ 14,472 $ 14,032 Provision for expected credit losses 4,783 8,255 Recoveries of accounts previously written off 4 295 Uncollectible accounts written off (2,422) (5,745) Balance at end of period $ 16,837 $ 16,837 As discussed in Note 8, as a result of a July 2, 2020 BPU Order, during the second quarter 2020, ETG and SJG deferred amounts of incremental costs related to the COVID-19 pandemic as regulatory assets. As of September 30, 2020, the amounts recorded within this regulatory asset related to the allowance for credit losses are approximately $9.3 million and $3.8 million for ETG and SJG, respectively, and are included in the provision for expected credit losses shown in the tables above. NOTES RECEIVABLE-AFFILIATES - See Note 3. LONG-TERM RECEIVABLES - SJG provides financing to customers for the purpose of attracting conversions to natural gas heating systems from competing fuel sources. The terms of these loans call for customers to make monthly payments over periods ranging from five two The carrying amounts of these receivables approximate their fair value at September 30, 2020 and December 31, 2019, which would be included in Level 2 of the fair value hierarchy (see Note 13). CREDIT RISK - As of September 30, 2020, SJI had approximately $5.7 million, or 12.2%, of the current and noncurrent Derivatives – Energy Related Assets transacted with two counterparties. These counterparties are investment-grade rated. FINANCIAL INSTRUMENTS NOT CARRIED AT FAIR VALUE - The fair value of a financial instrument is the market price to sell an asset or transfer a liability at the measurement date. The carrying amounts of SJI's and SJG's financial instruments approximate their fair values at September 30, 2020 and December 31, 2019, except as noted below (in thousands): September 30, 2020 December 31, 2019 SJI (includes SJG and all consolidated entities) Estimated fair values of long-term debt $ 2,836,407 $ 2,734,745 Carrying amounts of long-term debt, including current maturities $ 2,674,441 $ 2,537,995 Net of: Unamortized debt issuance costs $ 29,168 $ 25,547 Unamortized debt discounts $ 5,246 $ 5,313 SJG Estimated fair values of long-term debt $ 1,035,948 $ 915,248 Carrying amounts of long-term debt, including current maturities $ 952,116 $ 965,100 Net of: Unamortized debt issuance costs $ 9,239 $ 6,284 For Long-Term Debt (including current maturities), in estimating the fair value, SJI and SJG use the present value of remaining cash flows at the balance sheet date. SJI and SJG based the estimates on interest rates available at the end of each period for debt with similar terms and maturities (Level 2 in the fair value hierarchy, see Note 13) OTHER FINANCIAL INSTRUMENTS - The carrying amounts of SJI's and SJG's other financial instruments approximate their fair values at September 30, 2020 and December 31, 2019. |
SEGMENTS OF BUSINESS
SEGMENTS OF BUSINESS | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
SEGMENTS OF BUSINESS | SEGMENTS OF BUSINESS: SJI operates in several different reportable operating segments which reflect the financial information regularly evaluated by the CODM. These 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. As discussed in Note 1, on July 31, 2020, SJI sold ELK to a third-party buyer. • Wholesale energy operations include the activities of SJRG and SJEX. • Retail electric operations at SJE consist of electricity acquisition and transportation to commercial, industrial and residential customers. • On-site energy production consists of MTF and ACB, which were sold on February 18, 2020. This segment also includes other energy-related projects, including three legacy solar projects, one of which was sold during the three months ended March 31, 2020. Also included in this segment are the activities of ACLE, BCLE, SCLE and SXLE. Operations at BCLE, SCLE, and SXLE ceased during the second quarter of 2020. As of September 30, 2020, on-site energy production also includes newly acquired entities which own and operate solar-generation sites located in New Jersey, as well as the Catamaran joint venture, which owns Annadale. See Notes 1 and 17. • Appliance service operations includes SJESP, which receives commissions on service contracts from a third party. • Midstream was formed to invest in infrastructure and other midstream projects, including a current project to build a natural gas pipeline in Pennsylvania and New Jersey. • Corporate & Services segment includes costs related to acquisitions and divestitures, along with other unallocated costs. Also included in this segment are the results of SJEI. • 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 Group, Energy Services, Midstream and Corporate & Services. Energy Group includes wholesale energy and retail electric operations. Energy Services includes on-site energy production and appliance service operations. 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). The results for AEP are included in the Corporate & Services segment from the acquisition date of August 31, 2019, and the results for EnerConnex are included in the Corporate & Services segment for all periods, based on the ownership interest levels applicable within each period (see Notes 1 and 17). Further, the results and balances for On-Site Energy Production are impacted by the sales of solar assets and the sale of MTF and ACB (see Note 1). The identifiable assets balance for On-Site Energy Production as of September 30, 2020 is also impacted by the newly acquired entities (see Notes 1 and 17). Three Months Ended Nine Months Ended 2020 2019 2020 2019 Operating Revenues: SJI Utilities: SJG Utility Operations $ 66,190 $ 62,039 $ 394,066 $ 396,505 ETG Utility Operations 37,503 30,619 239,503 215,647 ELK Utility Operations 285 892 4,792 5,210 Subtotal SJI Utilities 103,978 93,550 638,361 617,362 Energy Group: Wholesale Energy Operations 143,338 135,856 373,308 452,346 Retail Electric Operations 7,692 22,395 29,874 65,617 Subtotal Energy Group 151,030 158,251 403,182 517,963 Energy Services: On-Site Energy Production 6,317 11,980 15,459 38,098 Appliance Service Operations 491 514 1,485 1,529 Subtotal Energy Services 6,808 12,494 16,944 39,627 Corporate and Services 11,488 10,252 38,116 31,438 Subtotal 273,304 274,547 1,096,603 1,206,390 Intersegment Sales (11,755) (13,344) (40,978) (40,955) Total Operating Revenues $ 261,549 $ 261,203 $ 1,055,625 $ 1,165,435 Three Months Ended Nine Months Ended 2020 2019 2020 2019 Operating (Loss) Income: SJI Utilities: SJG Utility Operations $ (6,080) $ (8,319) $ 108,297 $ 100,241 ETG Utility Operations (3,163) (5,112) 57,274 41,088 ELK Utility Operations (374) (197) 373 401 Subtotal SJI Utilities (9,617) (13,628) 165,944 141,730 Energy Group: Wholesale Energy Operations 2,768 (8,371) 16,272 (13,263) Retail Electric Operations (842) (3) (2,512) (3,972) Subtotal Energy Group 1,926 (8,374) 13,760 (17,235) Energy Services: On-Site Energy Production 2,455 2,634 143 5,049 Appliance Service Operations 586 468 1,482 1,484 Subtotal Energy Services 3,041 3,102 1,625 6,533 Corporate and Services (3,844) (125) (3,870) (5,680) Total Operating (Loss) Income $ (8,494) $ (19,025) $ 177,459 $ 125,348 Depreciation and Amortization: SJI Utilities: SJG Utility Operations $ 25,762 $ 23,564 $ 76,216 $ 69,349 ETG Utility Operations 10,391 7,461 30,370 20,932 ELK Utility Operations 52 158 354 383 Subtotal SJI Utilities 36,205 31,183 106,940 90,664 Energy Group: Wholesale Energy Operations 14 22 44 70 Subtotal Energy Group 14 22 44 70 Energy Services: On-Site Energy Production 30 1,248 36 3,756 Subtotal Energy Services 30 1,248 36 3,756 Corporate and Services 1,267 1,094 3,704 4,092 Total Depreciation and Amortization $ 37,516 $ 33,547 $ 110,724 $ 98,582 Interest Charges: SJI Utilities: SJG Utility Operations $ 8,271 $ 7,840 $ 23,832 $ 23,584 ETG Utility Operations 7,398 7,165 22,321 20,106 ELK Utility Operations 2 4 21 15 Subtotal SJI Utilities 15,671 15,009 46,174 43,705 On-Site Energy Production 277 2,097 2,974 6,520 Midstream 677 573 1,837 1,672 Corporate and Services 12,490 14,433 43,332 44,496 Subtotal 29,115 32,112 94,317 96,393 Intersegment Borrowings (1,353) (3,255) (5,430) (10,449) Total Interest Charges $ 27,762 $ 28,857 $ 88,887 $ 85,944 Three Months Ended Nine Months Ended 2020 2019 2020 2019 Income Taxes: SJI Utilities: SJG Utility Operations $ (3,293) $ (3,747) $ 23,157 $ 20,620 ETG Utility Operations (2,475) (2,065) 7,869 4,028 ELK Utility Operations (4) (54) 186 100 Subtotal SJI Utilities (5,772) (5,866) 31,212 24,748 Energy Group: Wholesale Energy Operations 858 (2,130) 4,583 (3,088) Retail Electric Operations (233) 4 (478) (814) Subtotal Energy Group 625 (2,126) 4,105 (3,902) Energy Services: On-Site Energy Production (11,191) 242 (10,897) (115) Appliance Service Operations 116 142 461 445 Subtotal Energy Services (11,075) 384 (10,436) 330 Midstream (58) (18) (174) (83) Corporate and Services (3,187) (3,299) (10,982) (11,715) Total Income Taxes $ (19,467) $ (10,925) $ 13,725 $ 9,378 Property Additions: SJI Utilities: SJG Utility Operations $ 73,481 $ 73,059 $ 181,440 $ 195,621 ETG Utility Operations 45,452 50,426 149,578 142,388 ELK Utility Operations 112 468 971 2,096 Subtotal SJI Utilities 119,045 123,953 331,989 340,105 Energy Group: Wholesale Energy Operations 2 1 2 1 Subtotal Energy Group 2 1 2 1 Energy Services: On-Site Energy Production 59,866 — 62,751 164 Subtotal Energy Services 59,866 — 62,751 164 Midstream 29 16 115 35 Corporate and Services 715 368 2,076 954 Total Property Additions $ 179,657 $ 124,338 $ 396,933 $ 341,259 September 30, 2020 December 31, 2019 Identifiable Assets: SJI Utilities: SJG Utility Operations $ 3,383,449 $ 3,348,555 ETG Utility Operations 2,482,155 2,458,846 ELK Utility Operations — 21,723 Subtotal SJI Utilities 5,865,604 5,829,124 Energy Group: Wholesale Energy Operations 126,973 195,576 Retail Electric Operations 21,176 30,351 Subtotal Energy Group 148,149 225,927 Energy Services: On-Site Energy Production 113,050 154,021 Subtotal Energy Services 113,050 154,021 Midstream 90,459 83,517 Discontinued Operations 1,790 1,766 Corporate and Services 249,943 403,170 Intersegment Assets (160,072) (332,185) Total Identifiable Assets $ 6,308,923 $ 6,365,340 |
RATES AND REGULATORY ACTIONS
RATES AND REGULATORY ACTIONS | 9 Months Ended |
Sep. 30, 2020 | |
Public Utilities, General Disclosures [Abstract] | |
RATES AND REGULATORY ACTIONS | RATES AND REGULATORY ACTIONS: SJG and ETG are subject to the rules and regulations of the BPU. ELK is subject to the rules and regulations of the MPSC. Except as described below, there have been no other significant regulatory actions or changes to the Utilities' rate structure since December 31, 2019. See Note 10 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, 2019. SJG: In the first quarter of 2020, the final rates were approved by the BPU on SJG's 2019-2020 annual BGSS, CIP and SBC/TIC filings. All were approved as previously requested. The BGSS and CIP approvals do not impact SJG's earnings. They represent changes in the cash requirements of SJG corresponding to cost changes and/or previous over/under recoveries from ratepayers associated with each respective mechanism. In May 2020, the BPU issued an Order resolving SJG’s 2019 Compliance Filing and 2019 Tax Act Rider petition, with a revised Rider H credit rate effective June 1, 2020. The terms of settlement include the following: • The “Unprotected” EDIT balance of approximately $44.7 million will be refunded to customers over a 5 year period through the approved rider; • The net “Protected” EDIT regulatory liability of $149.4 million (regulatory liability of $181.0 million partially offset by a regulatory asset of $31.6 million) will be refunded to customers through a proposed base rate adjustment in SJG’s next base rate case. In June 2020, SJG filed its annual EET rate adjustment petition, requesting a $5.9 million increase in revenues to continue recovering the costs of, and the allowed return on, investments associated with its EEPs. The matter is currently pending BPU approval. In July 2020, SJG filed its annual SBC petition, requesting a $5.5 million increase in revenues. The SBC is comprised of three sub-components, consisting of the RAC, CLEP and TIC. This matter is currently pending BPU approval. In September 2020, SJG filed a petition seeking authorization to implement new EEPs and to recover costs associated with the EEPs through the existing cost recovery mechanism, the EET. SJG requested to implement the new EEPs commencing July 1, 2021. SJG’s petition includes a request to recover, in the first year, $6.3 million in revenues to continue recovering the costs of, and the allowed return on, investments associated with prior period EEPs, along with investments associated with the new EEPs. This matter is currently pending BPU approval. In September 2020, the BPU approved the following: • A $59.4 million decrease in BGSS annual revenues and a $27.4 million increase in CIP annual revenues, both effective October 1, 2020, on a provisional basis; these rate adjustments are associated with our June 2020 annual filings for the 2020-2021 BGSS/CIP year, which runs from October 1, 2020 through September 30, 2021. Our BGSS filing included consideration of $22.9 million of costs requested to be recovered over a two-year period related to a previous dispute on a long-term gas supply contract that was settled during 2019. The provisional rate adjustments effective October 1, 2020, include the temporary removal of these amounts to allow for a further review of these costs during the course of this proceeding which we expect to be completed during the second quarter of 2021. • The settlement of SJG's rate case petition, resulting in an increase in annual revenues from base rates effective October 1, 2020 of $39.5 million, including an approved overall rate of return of 6.9%, with a return on equity of 9.6% and a common equity component of 54.0%. Also included was recovery of $10.1 million in costs related to a previous project to re-power the former BL England facility with natural gas (see Note 8). These costs are to be amortized over a five year period commencing October 1, 2020. • An increase in annual revenues from base rates of $6.4 million to reflect the roll-in of $58.8 million of AIRP II in service investments for the period July 2019 through June 2020, effective October 1, 2020. • An increase in annual revenues from base rates of $3.7 million to reflect the roll-in of $33.3 million of SHARP II in service investments for the period July 2019 through June 2020, effective October 1, 2020. • The Statewide USF annual 2020-2021 budget for all the State’s gas utilities, which included a decrease of approximately $0.3 million in SJG’s USF recoveries, effective October 1, 2020. • A rate adjustment to SJG’s Tax Act Rider to refund approximately $14.9 million related to SJG’s unprotected EDIT. Additionally, as part of the approved settlement in its base rate case, SJG will refund an additional $1.9 million associated with the accumulated balance of the amortization of the protected excess ADIT during the period January 1, 2018 through June 30, 2019. Effective October 1, 2020, this amount will be refunded to customers through the Tax Act Rider H over its remaining three-year term. The BGSS, CIP and USF approvals discussed above do not impact SJG's earnings. They represent changes in the cash requirements of SJG corresponding to cost changes and/or previously over/under recoveries from ratepayers associated with each respective mechanism. ETG: In the first quarter of 2020, the final rates were approved by the BPU on ETG's 2019-2020 annual BGSS, RAC, EEP, WNC, CEP and OSMC filings, effective April 1, 2020. All were approved as requested with the exception of RAC (a final rate reflecting a $6.0 million increase in revenues compared to a request of $6.1 million) and EEP (a final rate reflecting a $0.9 million increase in revenues compared to a request of $1.0 million). In February 2020, ETG entered into a Stipulation with the BPU and the New Jersey Division of Rate Counsel extending its EEP through June 2020 under the previously approved budget and from July 2020 through December 2021 at a total budget of approximately $4.2 million. The BPU issued an Order in February 2020 approving the Stipulation. In April 2020, ETG submitted its annual filing, pursuant to the June 2019 BPU approval of the IIP. In July 2020, ETG submitted an updated filing, reflecting rider rates to increase revenues by $6.8 million to reflect the roll-in of $63.3 million of IIP investments. The BPU issued an Order in September 2020 approving the updated IIP rates effective October 1, 2020. In June 2020, ETG submitted its annual BGSS filing. During discovery, ETG updated the rate for a revised request of a $21.1 million decrease in revenues. The BPU issued an Order in September 2020 approving the revised rate decrease on a provisional basis effective October 1, 2020. The matter is currently pending final BPU approval. In June 2020, ETG along with the other New Jersey gas utilities filed jointly for a statewide USF rate decrease and a statewide Lifeline rate increase with effective dates of October 1, 2020 resulting in a reduction in the combined rates. The proposed revenue decrease for ETG is approximately $0.3 million. The BPU issued an Order in September 2020 approving the USF and Lifeline rates effective October 1, 2020. In July 2020, ETG filed its annual RAC rate adjustment petition, requesting a $3.2 million decrease in revenues related to the recovery of costs of remediation. This matter is currently pending BPU approval. In July 2020, ETG filed its annual WNC/CEP/OSMC rate adjustment petition, requesting an $8.5 million increase in revenues to recover costs associated with these riders. The BPU issued an Order in September 2020 approving the rates on a provisional basis effective October 1, 2020. This matter is currently pending final BPU approval. In July 2020, ETG filed its annual EEP rate adjustment petition, requesting a $0.2 million decrease in revenues related to the recovery of costs of, and the allowed return on, investments associated with its EEPs. This matter is currently pending BPU approval. In September 2020, ETG filed to expand its EEPs for three years with proposed investments totaling approximately $100.0 million. ETG proposed a rate adjustment beginning in July 2021, which would initially increase annual revenues by $3.7 million. ETG also proposed to establish a CIP, similar to SJG’s CIP, which eliminates the link between usage and margin and includes a weather component. This matter is currently pending BPU approval. The BGSS, USF, Lifeline, RAC, WNC, CEP and OSMC approvals discussed above do not impact ETG's earnings. They represent changes in the cash requirements of ETG corresponding to cost changes and/or previously over/under recoveries from ratepayers associated with each respective mechanism. ELK: As discussed in Note 1, in December 2019, the Company announced it had entered into an agreement to sell ELK to a third-party buyer. This transaction was approved by the MPSC on June 29, 2020. This transaction closed on July 31, 2020 (see Note 1). |
REGULATORY ASSETS AND REGULATOR
REGULATORY ASSETS AND REGULATORY LIABILITIES | 9 Months Ended |
Sep. 30, 2020 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
REGULATORY ASSETS AND REGULATORY LIABILITIES | REGULATORY ASSETS AND REGULATORY LIABILITIES: Except as described below, there have been no significant changes to the nature or balances of the Utilities' regulatory assets and liabilities since December 31, 2019, which are described in Note 11 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, 2019. The Utilities' Regulatory Assets as of September 30, 2020 and December 31, 2019 consisted of the following items (in thousands): September 30, 2020 SJG ETG ELK Total SJI Environmental Remediation Costs: Expended - Net $ 160,828 $ 10,267 $ — $ 171,095 Liability for Future Expenditures 102,889 93,111 — 196,000 Insurance Recovery Receivables — (13,615) — (13,615) Deferred ARO Costs 40,858 23,591 — 64,449 Deferred Pension Costs - Unrecognized Prior Service Cost — 34,940 — 34,940 Deferred Pension and Other Postretirement Benefit Costs 72,010 1,825 — 73,835 Deferred Gas Costs - Net 19,222 — — 19,222 CIP Receivable 16,242 — — 16,242 SBC Receivable 2,665 — — 2,665 Deferred Interest Rate Contracts 10,872 — — 10,872 EET 16,810 — — 16,810 Pipeline Supplier Service Charges 457 — — 457 Pipeline Integrity Cost 5,837 — — 5,837 AFUDC - Equity Related Deferrals 11,491 — — 11,491 WNC — 5,535 — 5,535 Other Regulatory Assets 25,889 18,000 — 43,889 Total Regulatory Assets $ 486,070 $ 173,654 $ — $ 659,724 December 31, 2019 SJG ETG ELK Total SJI Environmental Remediation Costs: Expended - Net $ 156,279 $ 16,955 $ — $ 173,234 Liability for Future Expenditures 131,262 101,083 — 232,345 Insurance Recovery Receivables — (20,423) — (20,423) Deferred ARO Costs 36,515 18,108 — 54,623 Deferred Pension Costs - Unrecognized Prior Service Cost — 37,378 — 37,378 Deferred Pension and Other Postretirement Benefit Costs 72,010 1,825 — 73,835 Deferred Gas Costs - Net 49,469 5,301 293 55,063 SBC Receivable 1,478 — — 1,478 Deferred Interest Rate Contracts 7,856 — — 7,856 EET 12,877 — — 12,877 Pipeline Supplier Service Charges 525 — — 525 Pipeline Integrity Cost 6,516 — — 6,516 AFUDC - Equity Related Deferrals 10,712 — — 10,712 WNC — — 231 231 Other Regulatory Assets 10,678 9,004 — 19,682 Total Regulatory Assets $ 496,177 $ 169,231 $ 524 $ 665,932 Except where noted below, all regulatory assets are or are expected to be recovered through utility rate charges, as detailed in the following discussion. The Utilities are currently permitted to recover interest on Environmental Remediation Costs, SBC Receivable, EET and Pipeline Integrity Costs, while the other assets are being recovered without a return on investment. ENVIRONMENTAL REMEDIATION COSTS - SJG and ETG have regulatory assets associated with environmental costs related to the cleanup of environmental sites. SJG has 12 sites where SJG or its predecessors previously operated gas manufacturing plants, while ETG is subject to environmental remediation liabilities associated with five former manufactured gas plant sites in New Jersey. "Environmental Remediation Cost: Expended - Net" represents what was actually spent to clean up the sites, less recoveries through the RAC and insurance carriers. These costs meet the deferral requirements of ASC 980, as the BPU allows SJG and ETG to recover such expenditures through the RAC. "Environmental Remediation Cost: Liability for Future Expenditures" relates to estimated future expenditures required to complete the remediation of these sites. SJG and ETG recorded this estimated amount as a regulatory asset with the corresponding current and noncurrent liabilities on the condensed consolidated balance sheets under the captions "Current Liabilities" (SJI and SJG), "Deferred Credits and Other Noncurrent Liabilities" (SJI) and "Regulatory and Other Noncurrent Liabilities" (SJG). The BPU allows SJG to recover the deferred costs over seven-year periods after they are incurred. Environmental remediation costs at ETG are recoverable from customers through the RAC approved by the BPU. "Insurance Recovery Receivables" represents the balance of an insurance settlement executed in the fourth quarter of 2019 with a third party. This settlement, which is expected to be received in installments through the end of 2021, will be returned to ETG's customers through the RAC. Of the original total of $20.4 million, $6.8 million was received by ETG in 2020. DEFERRED GAS COSTS - NET - Over/under collections of gas costs are monitored through SJG's BGSS clause. Net under-collected gas costs are classified as a regulatory asset and net over-collected gas costs are classified as a regulatory liability. Derivative contracts used to hedge natural gas purchases are also included in the BGSS, subject to BPU approval (see Note 12). SJG's balance as of both September 30, 2020 and December 31, 2019 also includes $22.9 million of costs related to a previous pricing dispute on a long-term gas supply contract. We believe that the amount paid by SJG to the third party supplier to settle the pricing dispute reflects a gas cost that ultimately will be recovered from SJG's customers through adjusted rates through the BGSS clause and the matter is currently pending review by the BPU. The BGSS regulatory assets of SJI and SJG decreased from December 31, 2019 to September 30, 2020, primarily due to recoveries from customers exceeding the actual gas commodity costs, changes in valuations of hedged natural gas positions from prior periods and refunds from a third party gas supplier (see Note 1). DEFERRED ARO COSTS - The Utilities record AROs primarily related to the legal obligation to cut and cap gas distribution pipelines when taking those pipelines out of service. Deferred ARO costs represent the period to period passage of time (accretion) and the revision to cash flows originally estimated to settle the retirement obligation. The Deferred ARO costs regulatory asset increased from the prior year due to the revisions to the settlement timing, retirement costs and changes to inflation and discount rates used to measure the expected retirement costs. Corresponding changes are made to the ARO liability, thus having no impact on earnings. CIP RECEIVABLE - The CIP tracking mechanism at SJG adjusts earnings when actual usage per customer experienced during the period varies from an established baseline usage per customer. Actual usage per customer was less than the established baseline during the first nine months of 2020, resulting in a regulatory asset at September 30, 2020 as compared to a regulatory liability at December 31, 2019. This is primarily the result of warmer than normal weather experienced in the region during the winter months. WNC - The tariffs for ETG include a weather normalization clause that reduces customer bills when weather is colder than normal and increases customer bills when weather is warmer than normal. The overall change in ETG's weather normalization from a regulatory liability at December 31, 2019 to a regulatory asset at June 30, 2020 was due to timing of collections from customers and warmer than normal weather during the winter months. OTHER REGULATORY ASSETS - Some of the assets included in Other Regulatory Assets are currently being recovered from ratepayers as approved by the BPU. Management believes the remaining deferred costs are probable of recovery from ratepayers through future utility rates. Included in Other Regulatory Assets for SJG is the impact of the ERIP on SJG employees, see 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, 2019. The increase in Other Regulatory Assets for SJG is primarily due to a $10.1 million reclassification of costs from Utility Plant to Regulatory Assets on the condensed consolidated balance sheet related to a previous project to re-power the former BL England facility with natural gas. RC Cape May Holdings, LLC has communicated to SJG that it no longer intends to proceed with a project to re-power the former BL England facility with natural gas. As of March 2020, SJG had determined that the project under construction will be abandoned. SJG requested that the project costs spent to date be recovered as a regulatory asset within its rate case petition, which was approved by the BPU during the third quarter of 2020 (see Note 7). On July 2, 2020, the BPU issued an Order authorizing New Jersey's regulated utilities to create a COVID-19-related regulatory asset by deferring on their books and records the prudently incurred incremental costs related to COVID-19 beginning on March 9, 2020 and continuing through September 30, 2021, or 60 days after the termination of the public health emergency, whichever is later. The Company will be required to file quarterly reports with the BPU, along with a petition of recovery of such incremental costs with the BPU by December 31, 2021 or within 60 days of the close of the tracking period, whichever is later. As of September 30, 2020, ETG and SJG deferred $9.3 million and $3.8 million, respectively, of incremental costs principally related to expected credit losses from uncollectibles as a result of the COVID-19 pandemic, specifically related to changes in payment patterns observed to date and consideration of macroeconomic factors. We have deemed these costs to be probable of recovery. The Utilities Regulatory Liabilities as of September 30, 2020 and December 31, 2019 consisted of the following items (in thousands): September 30, 2020 SJG ETG ELK Total SJI Excess Plant Removal Costs $ 12,849 $ 37,648 $ — $ 50,497 Excess Deferred Taxes 240,453 114,839 — 355,292 Deferred Revenues - Net — 15,106 — 15,106 Amounts to be Refunded to Customers — 7,455 — 7,455 Other Regulatory Liabilities — 589 — 589 Total Regulatory Liabilities $ 253,302 $ 175,637 $ — $ 428,939 December 31, 2019 SJG ETG ELK Total SJI Excess Plant Removal Costs $ 16,333 $ 36,343 $ — $ 52,676 Excess Deferred Taxes 251,355 117,695 — 369,050 Deferred Revenues - Net — 52 — 52 CIP Payable 6,794 — — 6,794 WNC — 2,684 — 2,684 Amounts to be Refunded to Customers — 10,625 — 10,625 Other Regulatory Liabilities — 1,037 — 1,037 Total Regulatory Liabilities $ 274,482 $ 168,436 $ — $ 442,918 EXCESS DEFERRED TAXES - This liability is recognized as a result of Tax Reform enacted into law on December 22, 2017. The decrease in this liability from December 31, 2019 to September 30, 2020 is related to excess tax amounts returned to customers through customer billings. The Unprotected amount of excess deferred taxes will be returned to customers over a five year period. As part of the BPU approved settlement of its 2020 base rate case, SJG will amortize the Protected Excess ADIT liability and the Excess ADIT Asset NOL (see Note 7). DEFERRED REVENUES - NET - Over/under collections of gas costs are monitored through SJG's and ETG's bill credit. Net under-collected gas costs are classified as a regulatory asset and net over-collected gas costs are classified as a regulatory liability. Derivative contracts used to hedge natural gas purchases are also included in the BGSS, subject to BPU approval. The regulatory liability as of September 30, 2020 is a result of over-collection and refunds from a third party gas supplier (see Note 1). |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFITS | 9 Months Ended |
Sep. 30, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
PENSION AND OTHER POSTRETIREMENT BENEFITS | PENSION AND OTHER POSTRETIREMENT BENEFITS: For the three and nine months ended September 30, 2020 and 2019, net periodic benefit cost related to the SJI employee and officer pension and other postretirement benefit plans consisted of the following components (in thousands): Pension Benefits Three Months Ended Nine Months Ended 2020 2019 2020 2019 Service Cost $ 974 $ 1,387 $ 4,349 $ 4,187 Interest Cost 3,862 4,307 11,388 12,971 Expected Return on Plan Assets (5,569) (5,077) (16,473) (15,213) Amortizations: Prior Service Cost 26 26 79 79 Actuarial Loss 2,647 2,398 8,077 7,195 Net Periodic Benefit Cost 1,940 3,041 7,420 9,219 Capitalized Benefit Cost (410) (454) (1,470) (1,423) Deferred Benefit Cost (377) (516) (1,193) (1,710) Total Net Periodic Benefit Expense $ 1,153 $ 2,071 $ 4,757 $ 6,086 Other Postretirement Benefits Three Months Ended Nine Months Ended 2020 2019 2020 2019 Service Cost $ 182 $ 129 $ 511 $ 400 Interest Cost 560 729 1,775 2,163 Expected Return on Plan Assets (1,345) (1,147) (4,036) (3,428) Amortizations: Prior Service Cost (180) (144) (468) (432) Actuarial Loss 255 292 640 876 Net Periodic Benefit Cost (528) (141) (1,578) (421) Capitalized Benefit Cost 57 (115) (157) (270) Deferred Benefit Cost (90) 118 701 352 Total Net Periodic Benefit Expense $ (561) $ (138) $ (1,034) $ (339) The Pension Benefits Net Periodic Benefit Cost incurred by SJG was approximately $1.6 million and $1.9 million of the totals presented in the table above for the three months ended September 30, 2020 and 2019, respectively, and $5.4 million and $6.3 million of the totals presented in the table above for the nine months ended September 30, 2020 and 2019, respectively. The weighted average expected long term rate of return on plan assets used to determine the net benefit cost was 7.25%. The Other Postretirement Benefits Net Periodic Benefit Cost incurred by SJG was approximately $(0.1) million and $(0.1) million of the totals presented in the table above for the three months ended September 30, 2020 and 2019, respectively, and $(1.5) million and $(0.3) million of the totals presented in the table above for the nine months ended September 30, 2020 and 2019, respectively. The weighted average expected long term rate of return on plan assets used to determine the net benefit cost was 6.75%. Capitalized benefit costs reflected in the table above relate to the Utilities' construction programs. Companies with publicly traded equity securities that sponsor a postretirement benefit plan are required to fully recognize, as an asset or liability, the overfunded or underfunded status of its benefit plans and recognize changes in the funded status in the year in which the changes occur. Changes in funded status are generally reported in AOCL; however, since the Utilities recover all prudently incurred pension and postretirement benefit costs from their ratepayers, a significant portion of the changes resulting from the recording of additional liabilities under this requirement are reported as regulatory assets. No contributions were made to the pension plans by either SJI or SJG during the nine months ended September 30, 2020 or 2019. SJI and SJG do not expect to make any contributions to the pension plans during the remainder of 2020; however, changes in future investment performance and discount rates may ultimately result in a contribution. Payments related to the unfunded SERP are expected to be approximately $3.7 million in 2020. The plans include a qualified defined benefit, trusteed, pension plan covering most eligible employees. The qualified pension plan is funded in accordance with requirements of the ERISA. The Company also provides certain non-qualified defined benefit and defined contribution pension plans for a selected group of the Company's management and highly compensated employees. Benefits under these non-qualified pension plans are funded on a cash basis. In addition, the entities have a postretirement benefit plan, which provides certain medical care and life insurance benefits for eligible retired employees through a postretirement benefit plan. See Note 12 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, 2019 for additional information related to SJI’s and SJG's pension and other postretirement benefits. |
LINES OF CREDIT AND SHORT-TERM
LINES OF CREDIT AND SHORT-TERM BORROWINGS | 9 Months Ended |
Sep. 30, 2020 | |
Line of Credit Facility [Abstract] | |
LINES OF CREDIT AND SHORT-TERM BORROWINGS | LINES OF CREDIT & SHORT-TERM BORROWINGS: Credit facilities and available liquidity as of September 30, 2020 were as follows (in thousands): Company Total Facility Usage Available Liquidity Expiration Date SJI: SJI Syndicated Revolving Credit Facility $ 500,000 $ 199,300 (A) $ 300,700 August 2022 Term Loan Credit Agreement 150,000 150,000 — March 2021 Total SJI 650,000 349,300 300,700 SJG: Commercial Paper Program/Revolving Credit Facility 200,000 108,700 (B) 91,300 August 2022 Uncommitted Bank Line 10,000 — 10,000 September 2021 (D) Total SJG 210,000 108,700 101,300 ETG/SJIU: ETG/SJIU Revolving Credit Facility 200,000 150,400 (C) 49,600 April 2022 Total $ 1,060,000 $ 608,400 $ 451,600 (A) Includes letters of credit outstanding in the amount of $9.6 million, which is used to enable SJE to market retail electricity as well as for various construction and operating activities. (B) Includes letters of credit outstanding in the amount of $0.8 million, which supports the remediation of environmental conditions at certain locations in SJG's service territory. (C) Includes letters of credit outstanding in the amount of $1.0 million, which supports ETG's construction activity. (D) SJG renewed this facility during the third quarter of 2020. For SJI and SJG, the amount of usage shown in the table above, less the letters of credit noted in (A)-(C) above, equals the amounts recorded as Notes Payable on the respective condensed consolidated balance sheets as of September 30, 2020. On March 26, 2020, SJI entered into an unsecured $150.0 million term loan agreement, which bears interest at variable rates. The maturity date of the term loan is March 25, 2021, and the loan is recorded in Notes Payable on the condensed consolidated balance sheets as of September 30, 2020. The proceeds of the loan were used for general corporate purposes. See Note 14 for information related to amounts previously outstanding under revolving credit facilities and short-term loan arrangements. SJI's Five Year Revolving Credit Agreement ("Credit Agreement") allows SJI to borrow in the form of revolving loans a total aggregate amount of $500.0 million. In addition, as part of the total $500.0 million extension of credit, the Credit Agreement provides for swingline loans (in an amount not to exceed an aggregate of $50.0 million) and letters of credit (in an amount not to exceed an aggregate of $200.0 million), each at the applicable interest rates specified in the Credit Agreement. Subject to certain conditions set forth in the Credit Agreement, the Company may increase the revolving credit facility up to a maximum aggregate amount of $100.0 million (for a total facility of up to $600.0 million), although no lender is obligated to increase its commitment. SJIU and ETG (as Borrowers) have a $200.0 million revolving credit agreement with several lenders. The revolving credit agreement provides for the extension of credit to the Borrowers in a total aggregate amount of $200.0 million, in the form of revolving loans up to a full amount of $200.0 million, swingline loans in an amount not to exceed an aggregate of $20.0 million and letters of credit in an amount not to exceed an aggregate of $50.0 million, each at the applicable interest rates specified in the revolving credit agreement. Subject to certain conditions set forth in the revolving credit agreement, the Borrowers may increase the revolving credit facility up to a maximum aggregate amount of $50.0 million (for a total revolving facility of up to $250.0 million). This facility contains one financial covenant, limiting the ratio of indebtedness to total capitalization (as defined in the credit agreement) of each Borrower to not more than 0.70 to 1, measured at the end of each fiscal quarter. SJIU and ETG were in compliance with this covenant at September 30, 2020. The Utilities' (including SJG) facilities are restricted as to use and availability specifically to the respective Utilities; however, if necessary, the SJI facilities can also be used to support the liquidity needs of the Utilities. All committed facilities contain one financial covenant limiting the ratio of indebtedness to total capitalization of the applicable borrowers (as defined in the respective credit agreements), measured on a quarterly basis. SJI and the Utilities were in compliance with these covenants as of September 30, 2020. Borrowings under these credit facilities are at market rates. The weighted average interest rate on these borrowings, which changes daily, were as follows: September 30, 2020 September 30, 2019 Weighted average interest rate on borrowings: SJI (inclusive of SJG, ETG and SJIU) 1.26 % 3.00 % SJG 0.23 % 2.39 % Average borrowings and maximum amounts outstanding on these facilities were as follows (in thousands): Nine Months Ended Nine Months Ended Average borrowings outstanding, not including LOC: SJI (inclusive of SJG, ETG and SJIU) $ 516.8 $ 487.8 SJG $ 149.0 $ 96.2 Maximum amounts outstanding: SJI (inclusive of SJG, ETG and SJIU) $ 872.2 $ 882.7 SJG $ 187.0 $ 175.3 The SJI and the Utilities' (including SJG) principal credit facilities are provided by a syndicate of banks. The NPA for Senior Unsecured Notes issued by SJI, and the SJG credit facilities, contain a financial covenant limiting the ratio of indebtedness to total capitalization (as defined in the respective NPA or credit agreement) to not more than 0.70 to 1, measured at the end of each fiscal quarter. For SJI, the equity units are treated as equity (as opposed to how they are classified on the condensed consolidated balance sheet, as long-term debt) for purposes of the covenant calculation. SJI and the Utilities were in compliance with these covenants as of September 30, 2020. 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. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENT AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES:GUARANTEES — As of September 30, 2020, SJI had issued $10.5 million of parental guarantees on behalf of EnergyMark, an unconsolidated subsidiary. These guarantees generally expire within one year and were issued to enable the subsidiary to market retail natural gas. GAS SUPPLY CONTRACTS - In the normal course of business, SJG, SJRG and ETG have entered into long-term contracts for natural gas supplies, firm transportation and gas storage service. The transportation and storage service agreements with interstate pipeline suppliers were made under FERC-approved tariffs. SJG and ETG's cumulative obligation for gas supply-related demand charges and reservation fees paid to suppliers for these services averages approximately $6.0 million and $5.3 million per month, respectively, and is recovered on a current basis through the BGSS. SJRG's cumulative obligation for demand charges and reservation fees paid to suppliers for these services averages approximately $1.6 million per month. SJRG has also committed to purchase 738,250 dts/d of natural gas, from various suppliers, for terms ranging from 5 to 11 years at index-based prices. ETG has an AMA with SJRG for transportation and storage capacity to meet natural gas demands. The AMA is in effect through March 31, 2022. It also requires SJRG to pay minimum annual fees of $4.25 million to ETG and includes tiered margin sharing levels between ETG and SJRG (see Note 1). TSA - SJI had entered into a TSA with Southern Company Gas whereby the latter provided certain administrative and operational services. On March 16, 2020, the TSA between SJI and Southern Company Gas terminated. As of that date, Southern Company Gas no longer provides any administrative or operational services to ETG. COLLECTIVE BARGAINING AGREEMENTS — Unionized personnel represent approximately 43% and 69% of SJI's and SJG's workforce at September 30, 2020, respectively. SJI has collective bargaining agreements with unions that represent these employees: IBEW Local 1293, IAM Local 76 and UWUA Local 424. SJG employees represented by the IBEW operate under a collective bargaining agreement that runs through February 2022. SJG's remaining unionized employees are represented by the IAM and operate under a collective bargaining agreement that runs through August 2021. ETG employees represented by the UWUA operate under a collective bargaining agreement that runs through November 2022. STANDBY LETTERS OF CREDIT — See Note 10. In addition, SJG has provided $25.1 million of letters of credit under a separate facility outside of the revolving credit facility to support variable-rate demand bonds issued through the NJEDA to finance the expansion of SJG’s natural gas distribution system. CONVERTIBLE UNITS - The Company has a contract obligating the holder of the units to purchase from the Company, and for the Company to sell to the holder for a price in cash of $50, a certain number of shares of common stock. See Note 4. LITIGATION — SJI and SJG are subject to claims, actions and other legal proceedings arising in the ordinary course of business. Neither SJI nor SJG can make any assurance as to the outcome of any of these actions but, based on an analysis of these claims and consultation with outside counsel, we do not believe that any of these claims, other than described below, would be reasonably likely to have a material impact on the business or financial statements of SJI or SJG. In August 2018, the State of New Jersey filed a civil enforcement action against SJG and several other current and former owners of certain property in Atlantic City, NJ alleging damage to the State's natural resources and seeking payment for damages to those natural resources, where SJG and its predecessors previously operated a manufactured gas plant. SJG is currently evaluating the merits of the State of New Jersey's allegations. At this time, SJG cannot reasonably estimate or provide an assessment of the claim or any assurance regarding its outcome. Liabilities related to claims are accrued when the amount or range of amounts of probable settlement costs or other charges for these claims can be reasonably estimated. For matters other than the disputes noted above, SJI has accrued approximately $4.1 million and $3.1 million related to all claims in the aggregate as of September 30, 2020 and December 31, 2019, respectively, of which SJG has accrued approximately $1.1 million and $0.9 million as of September 30, 2020 and December 31, 2019, respectively. ENVIRONMENTAL REMEDIATION COSTS — SJG incurred and recorded costs for environmental cleanup of 12 sites where SJG or its predecessors operated gas manufacturing plants. SJG stopped manufacturing gas in the 1950s. ETG is subject to environmental remediation liabilities associated with five former manufactured gas plant sites in New Jersey. These environmental remediation expenditures are recoverable from customers through rate mechanisms approved by the BPU (see Note 8). SJI and some of its nonutility subsidiaries also recorded costs for environmental cleanup of sites where SJF previously operated a fuel oil business and Morie maintained equipment, fueling stations and storage (see Note 3). There have been no significant changes to the status of SJI’s environmental remediation efforts since December 31, 2019, as described in Note 15 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, 2019. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS: Certain SJI subsidiaries, including SJG, are involved in buying, selling, transporting and storing natural gas and buying and selling retail electricity for their own accounts as well as managing these activities for third parties. These subsidiaries are subject to market risk on expected future purchases and sales due to commodity price fluctuations. SJI and SJG use a variety of derivative instruments to limit this exposure to market risk in accordance with strict corporate guidelines. These derivative instruments include forward contracts, swap agreements, options contracts and futures contracts. As of September 30, 2020, 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) 87.0 13.1 Expected future sales of natural gas (in MMdts) 101.5 0.7 Expected future purchases of electricity (in MMmWh) 0.1 — Expected future sales of electricity (in MMmWh) 0.1 — Basis and Index related net purchase (sale) contracts (in MMdts) 86.7 2.6 These contracts, which have not been designated as hedging instruments under GAAP, are measured at fair value and recorded in Derivatives - Energy Related Assets or Derivatives - Energy Related Liabilities on the condensed consolidated balance sheets of SJI and SJG. For SJE and SJRG contracts, the net unrealized pre-tax gains (losses) for these energy-related commodity contracts are included with realized gains (losses) in Operating Revenues – Nonutility on the condensed consolidated statements of income (loss) for SJI. These unrealized pre-tax (losses) were $(6.2) million for both the three months ended September 30, 2020 and 2019, and $(7.8) million and $(18.4) million for the nine months ended September 30, 2020 and 2019, respectively. For ETG's and SJG's contracts, the costs or benefits are recoverable through the BGSS clause, subject to BPU approval. As a result, the net unrealized pre-tax gains and losses for SJG and ETG energy-related commodity contracts are included with realized gains and losses in Regulatory Assets or Regulatory Liabilities on the condensed consolidated balance sheets of SJI (ETG and SJG) and SJG. As of September 30, 2020 and December 31, 2019, SJI had $11.4 million and $(4.0) million, respectively, and SJG had $5.7 million and $2.1 million, respectively, of unrealized gains (losses) included in its BGSS related to energy-related commodity contracts. SJI, including SJG, has also entered into interest rate derivatives to mitigate exposure to increasing interest rates and the impact of those rates on cash flows of variable-rate debt. These interest rate derivatives are measured at fair value and recorded in Derivatives - Other on the condensed consolidated balance sheets. Any unrealized gains and losses on these derivatives are being recorded in earnings over the remaining life of the derivative. For SJI and SJG interest rate derivatives, the fair value represents the amount SJI and SJG would have to pay the counterparty to terminate these contracts as of those dates. As of September 30, 2020, 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 The unrealized gains and losses on interest rate derivatives that are not designated as cash flow hedges are included in Interest Charges in the condensed consolidated statements of income/(loss). However, for selected interest rate derivatives at SJG, management believes that, subject to BPU approval, the market value upon termination can be recovered in rates and, therefore, these unrealized losses have been included in Other Regulatory Assets in the condensed consolidated balance sheets. The fair values of all derivative instruments, as reflected in the condensed consolidated balance sheets as of September 30, 2020 and December 31, 2019, are as follows (in thousands): SJI (includes SJG and all other consolidated subsidiaries): Derivatives not designated as hedging instruments under GAAP September 30, 2020 December 31, 2019 Assets Liabilities Assets Liabilities Energy-related commodity contracts: Derivatives - Energy Related - Current $ 36,541 $ 25,005 $ 52,892 $ 41,965 Derivatives - Energy Related - Non-Current 10,407 4,452 7,243 8,206 Interest rate contracts: Derivatives - Other - Current — 2,078 — 1,155 Derivatives - Other - Noncurrent — 17,637 — 11,505 Total derivatives not designated as hedging instruments under GAAP $ 46,948 $ 49,172 $ 60,135 $ 62,831 Total Derivatives $ 46,948 $ 49,172 $ 60,135 $ 62,831 SJG: Derivatives not designated as hedging instruments under GAAP September 30, 2020 December 31, 2019 Assets Liabilities Assets Liabilities Energy-related commodity contracts: Derivatives – Energy Related – Current $ 6,060 $ 817 $ 16,904 $ 14,671 Derivatives – Energy Related – Non-Current 425 — 5 95 Interest rate contracts: Derivatives – Other - Current — 709 — 488 Derivatives – Other - Noncurrent — 10,163 — 7,368 Total derivatives not designated as hedging instruments under GAAP $ 6,485 $ 11,689 $ 16,909 $ 22,622 Total Derivatives $ 6,485 $ 11,689 $ 16,909 $ 22,622 SJI and SJG enter into derivative contracts with counterparties, some of which are subject to master netting arrangements, which allow net settlements under certain conditions. These derivatives are presented at gross fair values on the condensed consolidated balance sheets. Information related to these offsetting arrangements were as follows (in thousands): As of September 30, 2020 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/(Received) SJI (includes SJG and all other consolidated subsidiaries): Derivatives - Energy Related Assets $ 46,948 $ — $ 46,948 $ (24,937) (A) $ (3,706) $ 18,305 Derivatives - Energy Related Liabilities $ (29,457) $ — $ (29,457) $ 24,937 (B) $ — $ (4,520) Derivatives - Other $ (19,715) $ — $ (19,715) $ — $ — $ (19,715) SJG: Derivatives - Energy Related Assets $ 6,485 $ — $ 6,485 $ (338) (A) $ — $ 6,147 Derivatives - Energy Related Liabilities $ (817) $ — $ (817) $ 338 (B) $ — $ (479) Derivatives - Other $ (10,872) $ — $ (10,872) $ — $ — $ (10,872) As of December 31, 2019 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/(Received) SJI (includes SJG and all other consolidated subsidiaries): Derivatives - Energy Related Assets $ 60,135 $ — $ 60,135 $ (32,185) (A) $ — $ 27,950 Derivatives - Energy Related Liabilities $ (50,171) $ — $ (50,171) $ 32,185 (B) $ 12,878 $ (5,108) Derivatives - Other $ (12,660) $ — $ (12,660) $ — $ — $ (12,660) SJG: Derivatives - Energy Related Assets $ 16,909 $ — $ 16,909 $ (11,860) (A) $ — $ 5,049 Derivatives - Energy Related Liabilities $ (14,766) $ — $ (14,766) $ 11,860 (B) $ 2,706 $ (200) Derivatives - Other $ (7,856) $ — $ (7,856) $ — $ — $ (7,856) (A) The balances at September 30, 2020 and December 31, 2019 were related to derivative liabilities which can be net settled against derivative assets. (B) The balances at September 30, 2020 and December 31, 2019 were related to derivative assets which can be net settled against derivative liabilities. The effect of derivative instruments on the condensed consolidated statements of income (loss) are as follows (in thousands): Three Months Ended Nine Months Ended Derivatives in Cash Flow Hedging Relationships under GAAP 2020 2019 2020 2019 SJI (includes SJG and all other consolidated subsidiaries): Interest Rate Contracts: Losses reclassified from AOCL into income (a) $ (12) $ (12) $ (35) $ (35) SJG: Interest Rate Contracts: Losses reclassified from AOCL into income (a) $ (12) $ (12) $ (35) $ (35) (a) Included in Interest Charges Three Months Ended Nine Months Ended Derivatives Not Designated as Hedging Instruments under GAAP 2020 2019 2020 2019 SJI (includes SJG and all other consolidated subsidiaries): Losses on energy-related commodity contracts (a) $ (6,246) $ (6,187) $ (7,807) $ (18,390) Gains (Losses) on interest rate contracts (b) 342 (1,137) (4,040) (3,972) Total $ (5,904) $ (7,324) $ (11,847) $ (22,362) (a) Included in Operating Revenues - Nonutility (b) Included in Interest Charges Certain of SJI’s derivative instruments contain provisions that require immediate payment or demand immediate and ongoing collateralization on derivative instruments in net liability positions in the event of a material adverse change in the credit standing of SJI. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a liability position on September 30, 2020, is approximately $0.3 million. If the credit-risk-related contingent features underlying these agreements were triggered on September 30, 2020, SJI would have been required to settle the instruments immediately or post collateral to its counterparties of approximately $0.1 million after offsetting asset positions with the same counterparties under master netting arrangements. |
FAIR VALUE OF FINANCIAL ASSETS
FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES | FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES: GAAP establishes a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques. The levels of the hierarchy are described below: • Level 1: Observable inputs, such as quoted prices in active markets for identical assets or liabilities. • Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. • Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. Assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of financial assets and financial liabilities and their placement within the fair value hierarchy. For financial assets and financial liabilities measured at fair value on a recurring basis, information about the fair value measurements for each major category is as follows (in thousands): As of September 30, 2020 Total Level 1 Level 2 Level 3 SJI (includes SJG and all other consolidated subsidiaries): Assets Available-for-Sale Securities (A) $ 40 $ 40 $ — $ — Derivatives – Energy Related Assets (B) 46,948 18,953 16,876 11,119 $ 46,988 $ 18,993 $ 16,876 $ 11,119 SJG: Assets Derivatives – Energy Related Assets (B) $ 6,485 $ 2,181 $ — $ 4,304 $ 6,485 $ 2,181 $ — $ 4,304 SJI (includes SJG and all other consolidated subsidiaries): Liabilities Derivatives – Energy Related Liabilities (B) $ 29,457 $ 8,393 $ 16,354 $ 4,710 Derivatives – Other (C) 19,715 — 19,715 — $ 49,172 $ 8,393 $ 36,069 $ 4,710 SJG: Liabilities Derivatives – Energy Related Liabilities (B) $ 817 $ 338 $ 479 $ — Derivatives – Other (C) 10,872 — 10,872 — $ 11,689 $ 338 $ 11,351 $ — As of December 31, 2019 Total Level 1 Level 2 Level 3 SJI (includes SJG and all other consolidated subsidiaries): Assets Available-for-Sale Securities (A) $ 40 $ 40 $ — $ — Derivatives – Energy Related Assets (B) 60,135 16,931 17,841 25,363 $ 60,175 $ 16,971 $ 17,841 $ 25,363 SJG: Assets Derivatives – Energy Related Assets (B) $ 16,909 $ 11,860 $ — $ 5,049 $ 16,909 $ 11,860 $ — $ 5,049 SJI (includes SJG and all other consolidated subsidiaries): Liabilities Derivatives – Energy Related Liabilities (B) $ 50,171 $ 34,446 $ 7,936 $ 7,789 Derivatives – Other (C) 12,660 — 12,660 — $ 62,831 $ 34,446 $ 20,596 $ 7,789 SJG: Liabilities Derivatives – Energy Related Liabilities (B) $ 14,766 $ 14,565 $ 187 $ 14 Derivatives – Other (C) 7,856 — 7,856 — $ 22,622 $ 14,565 $ 8,043 $ 14 (A) Available-for-Sale Securities include securities that are traded in active markets and securities that are not traded publicly. The securities traded in active markets are valued using the quoted principal market close prices that are provided by the trustees and are categorized in Level 1 in the fair value hierarchy. (B) Derivatives – Energy Related Assets and Liabilities are traded in both exchange-based and non-exchange-based markets. Exchange-based contracts are valued using unadjusted quoted market sources in active markets and are categorized in Level 1 in the fair value hierarchy - established by FASB ASC Topic 820 - “Fair Value Measurements and Disclosures.” Certain non-exchange-based contracts are valued using indicative price quotations available through brokers or over-the-counter, on-line exchanges and are categorized in Level 2. These price quotations reflect the average of the bid-ask mid-point prices and are obtained from sources that management believes provide the most liquid market. Management reviews and corroborates the price quotations with at least one additional source to ensure the prices are observable market information, which includes consideration of actual transaction volumes, market delivery points, bid-ask spreads and contract duration. Derivative instruments that are used to limit our exposure to changes in interest rates on variable-rate, long-term debt are valued using quoted prices on commonly quoted intervals, which are interpolated for periods different than the quoted intervals, as inputs to a market valuation model. Market inputs can generally be verified and model selection does not involve significant management judgment, as a result, these instruments are categorized in Level 2 in the fair value hierarchy. For non-exchange-based derivatives that trade in less liquid markets with limited pricing information, model inputs generally would include both observable and unobservable inputs. In instances where observable data is unavailable, management considers the assumptions that market participants would use in valuing the asset or liability. This includes assumptions about market risks such as liquidity, volatility and contract duration. Such instruments are categorized in Level 3 in the fair value hierarchy as the model inputs generally are not observable. Counterparty credit risk and the credit risk of SJI are incorporated and considered in the valuation of all derivative instruments as appropriate. The effect of counterparty credit risk and the credit risk of SJI on the derivative valuations is not significant. Significant Unobservable Inputs - Management uses the discounted cash flow model to value Level 3 physical and financial forward contracts, which calculates mark-to-market valuations based on forward market prices, original transaction prices, volumes, risk-free rate of return and credit spreads. Inputs to the valuation model are reviewed and revised as needed, based on historical information, updated market data, market liquidity and relationships, and changes in third party pricing sources. The validity of the mark-to-market valuations and changes in these values from period to period are examined and qualified against historical expectations by the risk management function. If any discrepancies are identified during this process, the mark-to-market valuations or the market pricing information is evaluated further and adjusted, if necessary. (C) Derivatives – Other are valued using quoted prices on commonly quoted intervals, which are interpolated for periods different than the quoted intervals, as inputs to a market valuation model. Market inputs can generally be verified and model selection does not involve significant management judgment. The following table provides quantitative information regarding significant unobservable inputs in Level 3 fair value measurements (in thousands, except for ranges): SJI (includes SJG and all other consolidated subsidiaries) : Type Fair Value at September 30, 2020 Valuation Technique Significant Unobservable Input Range Assets Liabilities Forward Contract - Natural Gas $10,403 $4,050 Discounted Cash Flow Forward price (per dt) $0.72 - $7.09 [$3.18] (A) Forward Contract - Electric $716 $660 Discounted Cash Flow Fixed electric load profile (on-peak) 40.34% - 100.00% [60.14%] (B) Fixed electric load profile (off-peak) 0.00% - 59.66% [39.86%] (B) Type Fair Value at December 31, 2019 Valuation Technique Significant Unobservable Input Range Assets Liabilities Forward Contract - Natural Gas $21,645 $4,333 Discounted Cash Flow Forward price (per dt) $1.57 - $7.28 [$2.38] (A) Forward Contract - Electric $3,718 $3,456 Discounted Cash Flow Fixed electric load profile (on-peak) 0.00% - 100.00% [55.46%] (B) Fixed electric load profile (off-peak) 0.00% - 100.00% [44.54%] (B) SJG: Type Fair Value at September 30, 2020 Valuation Technique Significant Unobservable Input Range Assets Liabilities Forward Contract - Natural Gas $ 4,304 $ — Discounted Cash Flow Forward price (per dt) $1.05 - $5.47 [$4.03] (A) Type Fair Value at December 31, 2019 Valuation Technique Significant Unobservable Input Range Assets Liabilities Forward Contract - Natural Gas $ 5,049 $ 14 Discounted Cash Flow Forward price (per dt) $1.85 - $3.61 [$3.02] (A) (A) Represents the range, along with the weighted average, of forward prices for the sale and purchase of natural gas. (B) Represents the range, along with the weighted average, of the percentage of contracted usage that is loaded during on-peak hours versus off-peak. The changes in fair value measurements of Derivatives – Energy Related Assets and Liabilities, using significant unobservable inputs (Level 3), are as follows (in thousands): Three Months Ended Nine Months Ended SJI (includes SJG and all other consolidated subsidiaries): Balance at beginning of period $ 12,251 $ 17,574 Other Changes in Fair Value from Continuing and New Contracts, Net (3,198) 3,819 Settlements (2,644) (14,984) Balance at end of period $ 6,409 $ 6,409 SJG: Balance at beginning of period $ 4,365 $ 5,035 Other Changes in Fair Value from Continuing and New Contracts, Net (61) 4,304 Settlements — (5,035) Balance at end of period $ 4,304 $ 4,304 Three Months Ended Nine Months Ended SJI (includes SJG and all other consolidated subsidiaries): Balance at beginning of period $ 9,959 $ 16,061 Other Changes in Fair Value from Continuing and New Contracts, Net 6,046 10,331 Settlements (4,144) (14,531) Balance at end of period $ 11,861 $ 11,861 SJG: Balance at beginning of period $ 1,708 $ 4,928 Other Changes in Fair Value from Continuing and New Contracts, Net 6,533 8,241 Settlements — (4,928) Balance at end of period $ 8,241 $ 8,241 |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Sep. 30, 2020 | |
Long-term Debt, Unclassified [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT: SJI and SJG had the following long-term debt-related activity during the nine months ended September 30, 2020: On April 3, 2020, SJI entered into an unsecured $200.0 million term loan credit agreement, which bears interest at variable rates. The maturity of the term loan is October 31, 2021. Proceeds from the debt were used to pay off the following: • $50.0 million outstanding on the SJI revolving credit facility, which was previously recorded in Notes Payable on the condensed consolidated balance sheets. • $100.0 million SJI Term Loan, which was previously recorded in Notes Payable on the condensed consolidated balance sheets and due to mature in September 2020. • $50.0 million SJI variable rate note, which was previously recorded in Current Portion of Long-Term Debt on the condensed consolidated balance sheets. On April 16, 2020, SJG entered into a Note Purchase Agreement which provides for SJG to issue and sell its Senior Secured Notes, Series F, 2020 in the aggregate principal amount of $525.0 million in three Tranches, as follows: (a) Senior Secured Notes, Series F, 2020, Tranche A due April 16, 2030 in the aggregate principal amount of $150.0 million; (b) Senior Secured Notes, Series F, 2020, Tranche B due April 16, 2050 in the aggregate principal amount of $250.0 million; and (c) Senior Secured Notes, Series F, 2020, Tranche C due October 1, 2050 in the aggregate principal amount of $125.0 million. All of the Tranche A Notes and the Tranche B Notes were issued on April 16, 2020, and bear interest at 3.28% and 3.93%, respectively. The Tranche C Notes were issued on October 1, 2020, and bear interest at 3.98% (see Note 20). On April 26, 2020, SJG used proceeds from Tranche A and B discussed above to pay off $400.0 million principal amount outstanding on its term loan credit agreement, which was previously recorded in Current Portion of Long-Term Debt on the condensed consolidated balance sheets. SJG intends to use the Tranche C proceeds discussed above to repay short-term indebtedness and for general corporate purposes. On May 27, 2020, SJI entered into a Note Purchase Agreement which provided for the Company to issue an aggregate of $200.0 million of senior unsecured notes in two tranches, as follows: (a) Senior Notes, Series 2020A due July 30, 2027, in the aggregate principal amount of $75.0 million (the "Series 2020A Notes"); and (b) Senior Notes, Series 2020B due July 30, 2030, in the aggregate principal amount of $125.0 million (the "Series 2020B Notes"). The Company issued both tranches of the Notes on July 30, 2020. The Series 2020A Notes bear interest at 3.71% and the Series 2020B Notes bear interest at 3.91%. The proceeds from these issuances were used to pay off the unsecured $200.0 million term loan credit agreement issued in April 2020, which was paid off on July 31, 2020. In September 2020, SJG paid off $10.0 million of the principal balance outstanding on its 3.00% MTNs. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS: The following table summarizes the changes in SJI's AOCL for the three and nine months ended September 30, 2020 (in thousands): Postretirement Liability Adjustment Unrealized Gain (Loss) on Derivatives-Other (A) Unrealized Gain (Loss) on Available-for-Sale Securities Other Comprehensive Income (Loss) of Affiliated Companies Total Balance at July 1, 2020 $ (32,124) $ (311) $ (10) $ (97) $ (32,542) Other comprehensive income before reclassifications — — — — — Amounts reclassified from AOCL — 9 — — 9 Net current period other comprehensive income — 9 — — 9 Balance at September 30, 2020 $ (32,124) $ (302) $ (10) $ (97) $ (32,533) Postretirement Liability Adjustment Unrealized Gain (Loss) on Derivatives-Other (A) Unrealized Gain (Loss) on Available-for-Sale Securities Other Comprehensive Income (Loss) of Affiliated Companies Total Balance at January 1, 2020 $ (32,124) $ (327) $ (10) $ (97) $ (32,558) Other comprehensive income before reclassifications — — — — — Amounts reclassified from AOCL — 25 — — 25 Net current period other comprehensive income — 25 — — 25 Balance at September 30, 2020 $ (32,124) $ (302) $ (10) $ (97) $ (32,533) (A) The affected line item for these reclassifications from AOCL into the condensed consolidated statements of income (loss) is Interest Charges. These amounts are net of tax of $(3) and $(10) for the three and nine months ended September 30, 2020, respectively, for which the affected line item in the condensed consolidated statements of income (loss) is Income Taxes. The following table summarizes the changes in SJG's AOCL for the three and nine months ended September 30, 2020 (in thousands): Postretirement Liability Adjustment Unrealized Gain (Loss) on Derivatives-Other (A) Total Balance at July 1, 2020 $ (27,454) $ (405) $ (27,859) Other comprehensive loss before reclassifications — — — Amounts reclassified from AOCL — 9 9 Net current period other comprehensive income — 9 9 Balance at September 30, 2020 $ (27,454) $ (396) $ (27,850) Postretirement Liability Adjustment Unrealized Gain (Loss) on Derivatives-Other (A) Total Balance at January 1, 2020 $ (27,454) $ (421) $ (27,875) Other comprehensive loss before reclassifications — — — Amounts reclassified from AOCL — 25 25 Net current period other comprehensive income (loss) — 25 25 Balance at September 30, 2020 $ (27,454) $ (396) $ (27,850) (A) The affected line item for these reclassifications from AOCL into the condensed statements of income (loss) is Interest Charges. These amounts are net of tax of $(3) and $(10) for the three and nine months ended September 30, 2020, respectively, for which the affected line item in the condensed statements of income (loss) is Income Taxes. |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE: At contract inception, SJI and SJG assess the goods and services promised in all of its contracts with customers, and identify a performance obligation for each promise to transfer to a customer a distinct good or service. Except as described below, along with the acquisitions and sales as noted in Note 1, there have been no significant changes to the nature of the Company's revenues since December 31, 2019, which are described in Note 19 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, 2019. Revenues recorded for the newly acquired businesses (see Note 1) during the nine months ended September 30, 2020 are not material. SJI and SJG disaggregate revenue from contracts with customers into customer type and product line. SJI and SJG have determined that disaggregating revenue into these categories achieves the disclosure objective in ASC 606 to depict how the nature, timing and uncertainty of revenue and cash flows are affected by economic factors. Further, disaggregating revenue into these categories is consistent with information regularly reviewed by the CODM in evaluating the financial performance of SJI's operating segments. SJG only operates in the SJG Utility Operations segment. See Note 6 for further information regarding SJI's operating segments. Disaggregated revenues from contracts with customers, by both customer type and product line, are disclosed below, by operating segment (in thousands): Three Months Ended SJG Utility Operations ETG Utility Operations ELK Utility Operations Wholesale Energy Operations Retail Electric Operations On-Site Energy Production Appliance Service Operations Corporate Services and Intersegment Total Customer Type: Residential $ 40,900 $ 20,974 $ 77 $ — $ — $ — $ 491 $ — $ 62,442 Commercial & Industrial 24,625 16,998 185 197,580 4,814 6,317 — (267) 250,252 OSS & Capacity Release 1,859 — — — — — — — 1,859 Other 381 191 23 — — — — — 595 $ 67,765 $ 38,163 $ 285 $ 197,580 $ 4,814 $ 6,317 $ 491 $ (267) $ 315,148 Product Line: Gas $ 67,765 $ 38,163 $ 285 $ 197,580 $ — $ — $ — $ (595) $ 303,198 Electric — — — — 4,814 — — (324) 4,490 Solar — — — — — 5,429 — — 5,429 Landfills — — — — — 888 — — 888 Other — — — — — — 491 652 1,143 $ 67,765 $ 38,163 $ 285 $ 197,580 $ 4,814 $ 6,317 $ 491 $ (267) $ 315,148 Nine Months Ended SJG Utility Operations ETG Utility Operations ELK Utility Operations Wholesale Energy Operations Retail Electric Operations On-Site Energy Production Appliance Service Operations Corporate Services and Intersegment Total Customer Type: Residential $ 244,114 $ 153,496 $ 2,179 $ — $ — $ — $ 1,485 $ — $ 401,274 Commercial & Industrial 100,689 74,752 2,544 456,427 17,462 15,459 — (2,862) 664,471 OSS & Capacity Release 5,931 — — — — — — — 5,931 Other 1,393 4,162 203 — — — — — 5,758 $ 352,127 $ 232,410 $ 4,926 $ 456,427 $ 17,462 $ 15,459 $ 1,485 $ (2,862) $ 1,077,434 Product Line: Gas $ 352,127 $ 232,410 $ 4,926 $ 456,427 $ — $ — $ — $ (2,252) $ 1,043,638 Electric — — — — 17,462 — — (1,986) 15,476 Solar — — — — — 8,725 — — 8,725 CHP — — — — — 3,502 — — 3,502 Landfills — — — — — 3,232 — — 3,232 Other — — — — — — 1,485 1,376 2,861 $ 352,127 $ 232,410 $ 4,926 $ 456,427 $ 17,462 $ 15,459 $ 1,485 $ (2,862) $ 1,077,434 Three Months Ended September 30, 2019 SJG Utility Operations ETG Utility Operations ELK Utility Operations Wholesale Energy Operations Retail Electric Operations On-Site Energy Production Appliance Service Operations Corporate Services and Intersegment Total Customer Type: Residential $ 31,256 $ 16,092 $ 243 $ — $ 4,205 $ — $ 514 $ — $ 52,310 Commercial & Industrial 21,164 12,799 629 158,244 10,275 11,980 — (3,092) 211,999 OSS & Capacity Release 2,234 — — — — — — — 2,234 Other 544 1,733 23 — — — — — 2,300 $ 55,198 $ 30,624 $ 895 $ 158,244 $ 14,480 $ 11,980 $ 514 $ (3,092) $ 268,843 Product Line: Gas $ 55,198 $ 30,624 $ 895 $ 158,244 $ — $ — $ — $ (1,173) $ 243,788 Electric — — — — 14,480 — — (2,184) 12,296 Solar — — — — — 3,429 — — 3,429 CHP — — — — — 7,218 — — 7,218 Landfills — — — — — 1,333 — — 1,333 Other — — — — — — 514 265 779 $ 55,198 $ 30,624 $ 895 $ 158,244 $ 14,480 $ 11,980 $ 514 $ (3,092) $ 268,843 Nine Months Ended SJG Utility Operations ETG Utility Operations ELK Utility Operations Wholesale Energy Operations Retail Electric Operations On-Site Energy Production Appliance Service Operations Corporate Services and Intersegment Total Customer Type: Residential $ 244,889 $ 143,584 $ 2,204 $ — $ 10,966 $ — $ 1,529 $ — $ 403,172 Commercial & Industrial 82,255 71,013 2,769 469,805 35,697 38,098 — (9,517) 690,120 OSS & Capacity Release 6,248 — — — — — — — 6,248 Other 1,787 5,906 127 — — — — — 7,820 $ 335,179 $ 220,503 $ 5,100 $ 469,805 $ 46,663 $ 38,098 $ 1,529 $ (9,517) $ 1,107,360 Product Line: Gas $ 335,179 $ 220,503 $ 5,100 $ 469,805 $ — $ — $ — $ (3,807) $ 1,026,780 Electric — — — — 46,663 — — (5,975) 40,688 Solar — — — — — 12,443 — — 12,443 CHP — — — — — 21,371 — — 21,371 Landfills — — — — — 4,284 — — 4,284 Other — — — — — — 1,529 265 1,794 $ 335,179 $ 220,503 $ 5,100 $ 469,805 $ 46,663 $ 38,098 $ 1,529 $ (9,517) $ 1,107,360 The SJG balance is a part of the SJG utility operating segment, and is before intercompany eliminations with other SJI entities. Revenues on the condensed consolidated statements of income/(loss) that are not with contracts with customers consist of (a) revenues from alternative revenue programs at the SJG, ETG and ELK utility operating segments (including CIP and WNC), (b) both utility and nonutility realized revenue from derivative contracts at the SJG and ETG utility, wholesale energy and retail electric operating segments, and (c) unrealized revenues from derivative contracts of the wholesale energy and retail electric operating segments (see Note 12). The Company’s rate mechanisms that qualify as alternative revenue programs are described in Note 10 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, 2019. These mechanisms are subject to compliance filings on at least an annual basis, and the tariff rate adjustments are designed to occur over this compliance period. These rate mechanisms satisfy the criteria in ASC 980-605-25-4, as (a) each mechanism is established by order of the BPU for SJG and ETG, and the MPSC for ELK; (b) the amounts recoverable under each program are determined by tracking and are probable of recovery; and (c) the adjustments to tariff rates are designed to recover from or refund to customers within a 24 month period. For each individual rate reconciling mechanism, operating revenues are recognized when allowable costs are greater than the amounts billed in the current period and are reduced when allowable costs are less than amounts billed in the current period. Total revenues arising from alternative revenue programs at SJI were $(6.4) million and $1.2 million for the three months ended September 30, 2020 and 2019, respectively, and $26.6 million and $22.5 million for the nine months ended September 30, 2020 and 2019, respectively. Total revenues arising from alternative revenue programs at SJG were $(5.8) million and $1.2 million for the three months ended September 30, 2020 and 2019, respectively, and $19.6 million and $27.2 million for the nine months ended September 30, 2020 and 2019, respectively. The SJI and SJG amounts for revenues arising from alternative revenue programs were negative during the three months ended September 30, 2020 as a result of ETG's WNC program and SJG's CIP program being in a net over-collected position during the period, which caused a net reduction in operating revenues as allowable costs were less than amounts billed. The following table provides information about SJI's and SJG's receivables (excluding SJG receivables from related parties) and unbilled revenue from contracts with customers (in thousands): Accounts Receivable (A) Unbilled Revenue (B) SJI (including SJG and all other consolidated subsidiaries): Beginning balance as of January 1, 2020 $ 253,661 $ 84,821 Ending balance as of September 30, 2020 167,534 22,712 Increase (Decrease) $ (86,127) $ (62,109) Beginning balance as of January 1, 2019 $ 337,502 $ 79,538 Ending balance as of September 30, 2019 179,108 18,714 Increase (Decrease) $ (158,394) $ (60,824) SJG: Beginning balance as of January 1, 2020 $ 84,940 $ 45,016 Ending balance as of September 30, 2020 62,447 9,985 Increase (Decrease) $ (22,493) $ (35,031) Beginning balance as of January 1, 2019 $ 101,572 $ 43,271 Ending balance as of September 30, 2019 65,511 7,831 Increase (Decrease) $ (36,061) $ (35,440) (A) Included in Accounts Receivable in the condensed consolidated balance sheets. A receivable is SJI's and SJG's right to consideration that is unconditional, as only the passage of time is required before payment is expected from the customer. |
ACQUISITIONS & BUSINESS COMBINA
ACQUISITIONS & BUSINESS COMBINATIONS | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
ACQUISITIONS & BUSINESS COMBINATIONS | ACQUISITIONS & BUSINESS COMBINATIONS: There were no changes to the accounting policy with regards to business combinations described in 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, 2019. Catamaran/Annadale Acquisition On August 12, 2020, SJI, through its wholly-owned subsidiary Marina, formed the Catamaran joint venture with a third party partner. Catamaran was formed for the purpose of developing, owning and operating renewable energy projects, and will support SJI's commitment to clean energy initiatives. On the same date, Catamaran purchased 100% ownership in Annadale, an entity that is constructing two fuel cell projects totaling 7.5 MW in Staten Island, New York. These fuel cell projects are expected to be operational and placed into service in the fourth quarter of 2020. Marina has a 93% ownership interest in Annadale, and as a result Marina fully consolidates the entity as Marina has the power to direct the activities of the entity that most significantly impact the entity’s economic performance. ASC Topic 805, “Business Combinations” states that a business is an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs, or other economic benefits directly to investors or other owners, members, or participants. As the acquisition did not meet the definition of a business combination under ASC 805, the Company accounted for the transaction as an asset acquisition. In an asset acquisition, goodwill is not recognized, but rather any excess consideration transferred over the fair value of the net assets acquired is allocated on a relative fair value basis to the identifiable net assets. The acquisition of Annadale included a land lease and working capital. Marina recorded $58.5 million in Nonutility Property, Plant & Equipment on the condensed consolidated balance sheets as of September 30, 2020. Of this total, Marina invested a net amount of $54.3 million as of September 30, 2020. To account for the third party partner's interest in Annadale, Marina recorded $4.2 million of non-controlling interest in stockholder's equity on the condensed consolidated balance sheets as of September 30, 2020. The major depreciable assets of the Annadale Fuel Cell Project are the fuel cell modules, which will be depreciated over their estimated useful lives of 35 years. The land lease is being amortized over the lease term of 35 years. As these projects are not yet placed into service, no revenues have been recorded, and expenses incurred in the Company's condensed consolidated statements of income for the three and nine months ended September 30, 2020, are not material. EnerConnex Acquisition On August 7, 2020, SJI, through its wholly-owned subsidiary SJEI, completed its acquisition of the remaining 75% of EnerConnex for total consideration of $7.5 million. This acquisition supports the Company's initiative to expand its energy consulting business. The acquisition of EnerConnex was accounted for as a business combination using the acquisition method of accounting in accordance with GAAP. Under the acquisition method of accounting, the total estimated purchase price of an acquisition is allocated to the net assets based on their estimated fair values. EnerConnex does not have any regulated operations. Prior to this transaction, SJEI previously had a 25% investment in EnerConnex that was accounted for under the equity method of accounting. As this was a business combination achieved in stages, an approximately $2.0 million (pre-tax) gain was recorded as a result of remeasuring the carrying value of the previously held equity interest in EnerConnex to its acquisition date fair value. This gain was recorded in Other Income on the condensed consolidated statements of income. The acquisition date fair value of the previously held equity interest was $2.5 million and was determined based on the cash consideration exchanged for the remaining 75% of EnerConnex. The total of the $7.5 million in cash consideration for the remaining 75%, the $2.5 million acquisition date fair value of the previously held interest, and $0.2 million in assumed liabilities served as the total allocable basis shown in the preliminary purchase price allocation below. The Company has not finalized its valuation of certain assets and liabilities in connection with the acquisition of EnerConnex. As such, the estimated measurements recorded to date are subject to change. Any changes will be recorded as adjustments to the fair value of those assets and liabilities and residual amounts will be allocated to goodwill. The final valuation adjustments may also require adjustment to the consolidated statements of operations and cash flows. The final determination of these fair values will be completed as soon as possible but no later than one year from the acquisition date. The purchase price for the EnerConnex acquisition has been allocated, on a preliminary basis, to the assets acquired and liabilities assumed as of the acquisition date and is as follows: (in thousands) EnerConnex Cash $ 415 Accounts Receivable 249 Identifiable Intangible Assets (A) 4,500 Goodwill 4,890 Other Noncurrent Assets 100 Total assets acquired 10,154 Accounts Payable 4 Other Current Liabilities 150 Total liabilities assumed 154 Total net assets acquired $ 10,000 (A) The identifiable intangible asset balances shown in the table above are related to customer relationships acquired in the transaction, and are included in Other Noncurrent Assets on the condensed consolidated balance sheets. All assets and financial results of EnerConnex are included in the Corporate & Services segment. The amount of revenues and net income included in the Company's condensed consolidated statements of income for the three and nine months ended September 30, 2020 related to EnerConnex is not material. Our results would not have been materially different if this acquisition had occurred at the beginning of the periods presented herein. The amount of acquisition-related costs for EnerConnex was not material. Solar Projects Acquisition SJI, through its wholly-owned subsidiary Marina, completed its acquisition of ESNJ-AL-Somers Point LLC, ESNJ-AL-Hamilton Square LLC, and ESNJ-AL-Browns Mills LLC on June 30, 2020, and acquired ESNJ-AL-Woodbury LLC on August 21, 2020. These entities own newly operational solar-generation sites located in New Jersey, and were acquired for $3.8 million in total consideration. The total purchase price equaled the fair value of property, plant, and equipment that were acquired in the transactions. Costs related to these acquisitions were not material. The purchase of these entities is in support of the New Jersey Energy Master Plan. All assets and financial results of these entities are included in the On-Site Energy Production segment. The amount of revenues and net income included in the Company's condensed consolidated statements of income for the three and nine months ended September 30, 2020 related to these entities is not material. AEP Acquisition On August 31, 2019, SJI, through its wholly-owned subsidiary SJEI, completed its acquisition of AEP for $4.0 million in total consideration, inclusive of certain working capital and other closing adjustments. AEP does not have any regulated operations. The Company has finalized its valuation of assets and liabilities in connection with the acquisition of AEP. There are no changes to the purchase price or the allocation disclosed in Note 20 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, 2019. All assets and financial results of AEP are included in the Corporate & Services segment. The amount of revenues and net income included in the Company's condensed consolidated statements of income for the three and nine months ended September 30, 2020 related to AEP is not material. Our results would not have been materially different if this acquisition had occurred at the beginning of the prior periods presented herein. The amount of acquisition-related costs for AEP was not material. |
GOODWILL AND IDENTIFIABLE INTAN
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS | GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS: GOODWILL - Goodwill represents future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration paid or transferred over the fair value of identifiable net assets acquired. Goodwill is not amortized, but instead is subject to impairment testing on an annual basis, and between annual tests whenever events or changes in circumstances indicate that the fair value of a reporting unit may be below its carrying amount. The Company performs its annual goodwill impairment test in the fourth quarter of each fiscal year beginning with a qualitative assessment at the reporting unit level. The reporting unit level is identified by assessing whether the components of our operating segments constitute businesses for which discrete financial information is available, whether segment management regularly reviews the operating results of those components and whether the economic and regulatory characteristics are similar. Factors utilized in the qualitative analysis performed on goodwill in our reporting units include, among other things, macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, company specific operating results and other relevant entity-specific events affecting individual reporting units. If sufficient qualitative factors exist, potential goodwill impairment is evaluated quantitatively. Potential impairment is identified by comparing the fair value of a reporting unit to the book value, including goodwill. The Company estimates the fair value of a reporting unit using a discounted cash flow analysis. Management also considers other methods, which includes a market multiples analysis. Determining the fair value of a reporting unit requires judgment and the use of significant estimates and assumptions. Such estimates and assumptions include, but are not limited to, forecasts of future operating results, discount and growth rates, capital expenditures, tax rates, and projected terminal values. Changes in estimates or the application of alternative assumptions could produce significantly different results. If the fair value exceeds book value, goodwill of the reporting unit is not considered impaired. If the book value exceeds fair value, an impairment charge is recognized for the excess up until the amount of goodwill allocated to the reporting unit. As a result of the COVID-19 pandemic and the resulting macroeconomic market conditions, the Company determined it necessary to perform a quantitative goodwill impairment analysis on the goodwill at the ETG reporting unit as of March 31, 2020. During the third quarter of 2020, due to a decline in market conditions for gas distributors and our performance relative to the overall sector, the Company determined it necessary to perform a quantitative goodwill impairment analysis on the goodwill at the ETG reporting unit as of September 30, 2020. There were no impairments recorded as a result of either interim impairment test. Should economic conditions deteriorate in future periods or remain depressed for a prolonged period of time, estimates of future cash flows and market valuation assumptions may not be sufficient to support the carrying value, requiring impairment charges in the future. Total goodwill of $707.0 million and $702.1 million was recorded on the condensed consolidated balance sheets as of September 30, 2020 and December 31, 2019, respectively. As of September 30, 2020, $700.2 million was included in the ETG Utility Operations segment and $6.8 million was included in the Corporate & Services segment. As of December 31, 2019, $700.2 million was included in the ETG Utility Operations segment and $1.9 million was included in the Corporate & Services segment. The following table summarizes the changes in goodwill for the nine months ended September 30, 2020 (in thousands): 2020 Beginning Balance, January 1 $ 702,070 Goodwill from EnerConnex Acquisition (see Note 17) 4,890 Ending Balance, September 30 $ 706,960 IDENTIFIABLE INTANGIBLE ASSETS - The primary identifiable intangible assets of the Company are customer relationships obtained in the acquisitions of EnerConnex and AEP (see Note 17), along with the AMA (see Note 1). The Company determines the useful lives of identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Considerations may include the contractual term of any agreement related to the asset, the historical performance of the asset, the Company's long-term strategy for using the asset, any laws or other local regulations which could impact the useful life of the asset, and other economic factors, including competition and specific market conditions. Intangible assets that are deemed to have definite lives (finite-lived intangible assets) are amortized, primarily on a straight-line basis, over their useful lives, generally ranging from 2 to 20 years. SJI's identifiable intangible assets were as follows (in thousands): As of September 30, 2020 Gross Cost Accumulated Amortization Identifiable Intangible Assets, Net Identifiable intangible assets subject to amortization: Customer Relationships $ 6,900 $ (223) $ 6,677 AMA 19,200 (11,520) 7,680 Total $ 26,100 $ (11,743) $ 14,357 As of December 31, 2019 Gross Cost Accumulated Amortization Identifiable Intangible Assets, Net Identifiable intangible assets subject to amortization: Customer Relationships $ 2,400 $ (53) $ 2,347 AMA 19,200 (7,680) 11,520 Total $ 21,600 $ (7,733) $ 13,867 The net identifiable intangible asset balances shown in the table above are included in Other Noncurrent Assets on the condensed consolidated balance sheets. The increase in the net identifiable intangible asset balance from the prior year is due to customer relationships recorded in connection with the EnerConnex acquisition during the third quarter of 2020, partially offset by amortization recorded during the first nine months of 2020. Total SJI amortization expense related to identifiable intangible assets was $1.4 million and $1.5 million for the three months ended September 30, 2020 and 2019, respectively, and $4.0 million and $4.6 million for the nine months ended September 30, 2020 and 2019, respectively. No impairment charges were recorded on identifiable intangible assets during the three and nine months ended September 30, 2020 or 2019. As of September 30, 2020, SJI's estimated amortization expense related to identifiable intangible assets for each of the five succeeding fiscal years is as follows (in thousands): Year ended December 31, SJI 2020 (remaining three months) $ 1,395 2021 $ 5,580 2022 $ 1,740 2023 $ 460 2024 $ 460 The decreases in estimated amortization expense in the table above are due to the AMA ceasing in March 2022 (see Note 1). |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
LEASES | LEASES: Except as described below, there have been no significant changes to the nature of the Company's leases since December 31, 2019, which are described in Note 9 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, 2019. As part of the Annadale acquisition (see Note 17), a real estate lease was acquired resulting in the recognition of an ROU asset and lease liability upon acquisition of $3.1 million. This arrangement is classified as a finance lease and will be amortized over the lease term of 35 years. As of September 30, 2020, SJI recognized an ROU asset and a lease liability of $3.0 million and $3.1 million, respectively, for this lease. The remainder of SJI's and SJG's real estate leases, which are comprised primarily of office space and payment centers, are classified as operating leases and represent approximately 91% and 68%, respectively, of operating lease liabilities and generally have a lease term between 5 and 15 years. Other operating leases primarily consist of fleet vehicles (SJI only), communication towers, and general office equipment, each with various lease terms ranging between 3 and 25 years. As of September 30, 2020 and December 31, 2019, the operating lease ROU asset was $1.6 million and $1.9 million, respectively, and the lease liability balance was $1.6 million and $1.9 million, respectively, at SJI. The ROU assets and lease liabilities at SJG were not material. SJI does not have any contracts where it is considered the lessor (see "MTF" below). The maturity of the Company’s operating lease and finance lease liabilities are as follows (in thousands): As of September 30, 2020 SJI Consolidated SJI Consolidated SJG 2020 (excluding the nine months ended September 30, 2020) $ 206 $ 36 $ 23 2021 534 145 39 2022 348 145 21 2023 190 145 19 2024 165 145 12 Thereafter 235 6,557 102 Total lease payments 1,678 7,173 216 Less imputed interest 109 4,122 28 Total lease liabilities $ 1,569 $ 3,051 $ 188 Included in the condensed consolidated balance sheet Current lease liabilities (included in Other Current Liabilities) $ 581 $ — $ 49 Long-term lease liabilities (included in Other Noncurrent Liabilities) 988 3,051 139 Total lease liabilities $ 1,569 $ 3,051 $ 188 SJG does not have any finance leases. The total operating lease costs, the components of finance lease costs, and variable lease costs for SJI were as follows (in thousands): Three months ended September 30, 2020 Nine months ended September 30, 2020 SJI (includes SJG and all other consolidated subsidiaries): Total operating lease cost $ 364 $ 983 Finance Lease cost: Amortization of ROU assets 10 10 Interest expense 18 18 Variable lease cost 190 491 Total lease cost $ 582 $ 1,502 Three months ended September 30, 2019 Nine months ended September 30, 2019 SJI (includes SJG and all other consolidated subsidiaries): Total operating lease cost $ 717 $ 2,317 Variable lease cost 270 1,070 Total lease cost $ 987 $ 3,387 The total operating lease costs for SJG were not material. SJG does not have any finance lease costs or variable lease costs. Short-term lease costs were not material for either SJI or SJG. Neither SJI nor SJG had any sublease income during the three and nine months ended September 30, 2020 and 2019. Neither SJI nor SJG have leases with related parties or leveraged lease arrangements. There are no leases that have not yet commenced but that create significant rights and obligations. The supplemental cash flow information related to leases for SJI (including SJG and all other consolidated subsidiaries) were as follows (in thousands): Three months ended September 30, 2020 Nine months ended September 30, 2020 Operating cash flows from operating leases $ 250 $ 980 Three months ended September 30, 2019 Nine months ended September 30, 2019 Operating cash flows from operating leases $ 430 $ 1,230 Operating and financing cash flows from finance leases for SJI were not material for the three and nine months ended September 30, 2020. Operating cash flows from operating leases for SJG were not material for the three and nine months ended September 30, 2020. Supplemental Non-Cash Disclosures The following table represents the weighted-average remaining lease term and weighted-average discount rate: Weighted average remaining lease term September 30, 2020 SJI (includes SJG and all other consolidated subsidiaries): Operating lease 4.6 years Finance lease 34.9 years SJG: Operating lease 9.5 years Weighted average discount rate September 30, 2020 SJI (includes SJG and all other consolidated subsidiaries): Operating lease 3.1% Finance lease 5.0% SJG: Operating lease 3.0% MTF As of December 31, 2019, Marina was considered to be the lessor of certain thermal energy generating property and equipment under an operating lease which was set to expire in May 2027. As of December 31, 2019, the carrying costs of this property and equipment under operating lease was $68.9 million (net of accumulated depreciation of $40.6 million), and is included in Assets Held for Sale in the condensed consolidated balance sheets. As discussed in Note 1, MTF was sold to a third party buyer in February 2020, and as a result, Marina no longer is the lessor of this property, and no longer has future rentals or commitments. |
LEASES | LEASES: Except as described below, there have been no significant changes to the nature of the Company's leases since December 31, 2019, which are described in Note 9 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, 2019. As part of the Annadale acquisition (see Note 17), a real estate lease was acquired resulting in the recognition of an ROU asset and lease liability upon acquisition of $3.1 million. This arrangement is classified as a finance lease and will be amortized over the lease term of 35 years. As of September 30, 2020, SJI recognized an ROU asset and a lease liability of $3.0 million and $3.1 million, respectively, for this lease. The remainder of SJI's and SJG's real estate leases, which are comprised primarily of office space and payment centers, are classified as operating leases and represent approximately 91% and 68%, respectively, of operating lease liabilities and generally have a lease term between 5 and 15 years. Other operating leases primarily consist of fleet vehicles (SJI only), communication towers, and general office equipment, each with various lease terms ranging between 3 and 25 years. As of September 30, 2020 and December 31, 2019, the operating lease ROU asset was $1.6 million and $1.9 million, respectively, and the lease liability balance was $1.6 million and $1.9 million, respectively, at SJI. The ROU assets and lease liabilities at SJG were not material. SJI does not have any contracts where it is considered the lessor (see "MTF" below). The maturity of the Company’s operating lease and finance lease liabilities are as follows (in thousands): As of September 30, 2020 SJI Consolidated SJI Consolidated SJG 2020 (excluding the nine months ended September 30, 2020) $ 206 $ 36 $ 23 2021 534 145 39 2022 348 145 21 2023 190 145 19 2024 165 145 12 Thereafter 235 6,557 102 Total lease payments 1,678 7,173 216 Less imputed interest 109 4,122 28 Total lease liabilities $ 1,569 $ 3,051 $ 188 Included in the condensed consolidated balance sheet Current lease liabilities (included in Other Current Liabilities) $ 581 $ — $ 49 Long-term lease liabilities (included in Other Noncurrent Liabilities) 988 3,051 139 Total lease liabilities $ 1,569 $ 3,051 $ 188 SJG does not have any finance leases. The total operating lease costs, the components of finance lease costs, and variable lease costs for SJI were as follows (in thousands): Three months ended September 30, 2020 Nine months ended September 30, 2020 SJI (includes SJG and all other consolidated subsidiaries): Total operating lease cost $ 364 $ 983 Finance Lease cost: Amortization of ROU assets 10 10 Interest expense 18 18 Variable lease cost 190 491 Total lease cost $ 582 $ 1,502 Three months ended September 30, 2019 Nine months ended September 30, 2019 SJI (includes SJG and all other consolidated subsidiaries): Total operating lease cost $ 717 $ 2,317 Variable lease cost 270 1,070 Total lease cost $ 987 $ 3,387 The total operating lease costs for SJG were not material. SJG does not have any finance lease costs or variable lease costs. Short-term lease costs were not material for either SJI or SJG. Neither SJI nor SJG had any sublease income during the three and nine months ended September 30, 2020 and 2019. Neither SJI nor SJG have leases with related parties or leveraged lease arrangements. There are no leases that have not yet commenced but that create significant rights and obligations. The supplemental cash flow information related to leases for SJI (including SJG and all other consolidated subsidiaries) were as follows (in thousands): Three months ended September 30, 2020 Nine months ended September 30, 2020 Operating cash flows from operating leases $ 250 $ 980 Three months ended September 30, 2019 Nine months ended September 30, 2019 Operating cash flows from operating leases $ 430 $ 1,230 Operating and financing cash flows from finance leases for SJI were not material for the three and nine months ended September 30, 2020. Operating cash flows from operating leases for SJG were not material for the three and nine months ended September 30, 2020. Supplemental Non-Cash Disclosures The following table represents the weighted-average remaining lease term and weighted-average discount rate: Weighted average remaining lease term September 30, 2020 SJI (includes SJG and all other consolidated subsidiaries): Operating lease 4.6 years Finance lease 34.9 years SJG: Operating lease 9.5 years Weighted average discount rate September 30, 2020 SJI (includes SJG and all other consolidated subsidiaries): Operating lease 3.1% Finance lease 5.0% SJG: Operating lease 3.0% MTF As of December 31, 2019, Marina was considered to be the lessor of certain thermal energy generating property and equipment under an operating lease which was set to expire in May 2027. As of December 31, 2019, the carrying costs of this property and equipment under operating lease was $68.9 million (net of accumulated depreciation of $40.6 million), and is included in Assets Held for Sale in the condensed consolidated balance sheets. As discussed in Note 1, MTF was sold to a third party buyer in February 2020, and as a result, Marina no longer is the lessor of this property, and no longer has future rentals or commitments. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS: On October 1, 2020, SJG issued the Tranche C Notes related to its April 16, 2020 Note Purchase Agreement for an aggregate principal amount of $125.0 million. The notes bear interest at 3.98%. SJG intends to use these proceeds to repay short-term indebtedness and for general corporate purposes. On October 16, 2020, SJI filed an amendment to its Certificate of Incorporation that increased the authorized number of shares of its common stock from 120,000,000 to 220,000,000 and the aggregate number of shares authorized to be issued by SJI from 122,500,000 to 222,500,000. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
GENERAL | GENERAL - SJI provides a variety of energy-related products and services primarily through the following wholly-owned subsidiaries: ▪ SJIU is a holding company that owns SJG and ETG and, until its sale, owned ELK. • SJG is a regulated natural gas utility which distributes natural gas in the seven southernmost counties of New Jersey. • ETG is a regulated natural gas utility which distributes natural gas in seven counties in northern and central New Jersey. • ELK is a regulated natural gas utility which distributes natural gas in northern Maryland. On July 31, 2020, SJI sold ELK to a third-party buyer (see "Agreement to Sell ELK" below). ▪ SJE acquires and markets electricity to retail end users. ▪ SJRG markets natural gas storage, commodity and transportation assets along with fuel management services on a wholesale basis in the mid-Atlantic, Appalachian and southern states. ▪ SJEX owns oil, gas and mineral rights in the Marcellus Shale region of Pennsylvania. ▪ Marina develops and operates on-site energy-related projects. Included in Marina were MTF and ACB, which, in February 2020, were sold to a third-party buyer (see "Agreement to Sell MTF & ACB" below). Also included in Marina are two solar projects which are currently classified as held for sale, and a third solar project that was sold in March 2020 (see "Agreement to Sell Solar Assets" below). The significant wholly-owned subsidiaries of Marina include: • ACLE, BCLE, SCLE and SXLE own and operate landfill gas-to-energy production facilities in Atlantic, Burlington, Salem and Sussex Counties, respectively, located in New Jersey. On June 1, 2020, the BCLE, SCLE, and SXLE landfill gas-to-energy-production facilities ceased operations after receiving approval from their respective local governmental authorities to do so. • ESNJ-AL-Somers Point LLC, ESNJ-AL-Hamilton Square LLC, ESNJ-AL-Browns Mills LLC, and ESNJ-AL-Woodbury LLC own and operate solar generation sites located in New Jersey. All four were acquired in 2020 (see "Acquisitions" below). ▪ SJESP receives commissions on service contracts from a third party. ▪ Midstream invests in infrastructure and other midstream projects, including PennEast. See Note 3. ▪ SJEI provides energy procurement and cost reduction services. The significant wholly-owned subsidiaries of SJEI include: • AEP, an aggregator, broker and consultant in the retail energy markets, which was acquired in August 2019. • EnerConnex, which is a retail and wholesale broker and consultant that matches end users with suppliers for the procurement of natural gas and electricity. On August 7, 2020, SJEI acquired the remaining 75% of EnerConnex (see "Acquisitions" below), of which SJEI previously held a 25% interest. |
BASIS OF PRESENTATION | BASIS OF PRESENTATION - SJI's condensed consolidated financial statements include the accounts of SJI, its direct and indirect wholly-owned subsidiaries (including SJG) and subsidiaries in which SJI has a controlling interest. All significant intercompany accounts and transactions have been eliminated in consolidation. SJI is reporting on a consolidated basis the results of operations of the acquired entities discussed above as of their respective dates of acquisition, along with its controlling interest in Catamaran as noted below.As permitted by the rules and regulations of the SEC, the accompanying unaudited condensed consolidated financial statements of SJI and SJG contain certain condensed financial information and exclude certain footnote disclosures normally included in annual audited consolidated financial statements prepared in accordance with GAAP. These financial statements should be read in conjunction with SJI’s and SJG's Annual Reports on Form 10-K for the year ended December 31, 2019. In management’s opinion, the condensed consolidated financial statements of SJI and SJG reflect all normal recurring adjustments needed to fairly present their respective financial positions, operating results and cash flows at the dates and for the periods presented. SJI’s and SJG's businesses are subject to seasonal fluctuations and, accordingly, this interim financial information should not be the basis for estimating the full year’s operating results. |
ESTIMATES AND ASSUMPTIONS | ESTIMATES AND ASSUMPTIONS - The condensed consolidated financial statements were prepared to conform with GAAP. Management makes estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and related disclosures. Therefore, actual results could differ from those estimates. Significant estimates include amounts related to regulatory accounting, energy derivatives, environmental remediation costs, pension and other postretirement benefit costs, revenue recognition, goodwill and evaluation of equity method investments for other-than-temporary impairment. |
REGULATION | REGULATION - SJG and ETG are subject to the rules and regulations of the BPU, while ELK is subject to the rules and regulations of the MPSC. See Note 7 for a discussion of the Utilities' rate structure and regulatory actions. The Utilities maintain their accounts according to the BPU's and MPSC's prescribed Uniform System of Accounts. The Utilities follow the accounting for regulated enterprises prescribed by ASC 980, Regulated Operations . In general, Topic 980 allows for the deferral of certain costs (regulatory assets) and creation of certain obligations (regulatory liabilities) when it is probable that such items will be recovered from or refunded to customers in future periods. See Note 8 for a detailed discussion of regulatory assets and liabilities. |
IMPAIRMENT OF LONG LIVED ASSETS | IMPAIRMENT OF LONG-LIVED ASSETS - Long-lived assets that are held and used are reviewed for impairment whenever events or changes in circumstances indicate carrying values may not be recoverable. We performed a qualitative assessment of the long-lived assets of SJI and SJG as of September 30, 2020 to determine whether the impact of the COVID-19 pandemic, and the resulting fluctuations in market conditions, indicate that the fair value of the assets are less than their carrying value. There were no indicators noted through these qualitative assessments that indicate an impairment has occurred. |
OPERATING REVENUES | OPERATING REVENUES - Gas and electric revenues are recognized in the period the commodity is delivered to customers. For retail customers (including SJG) that are not billed at the end of the month, we record an estimate to recognize unbilled revenues for gas and electricity delivered from the date of the last meter reading to the end of the month. The Utilities also have revenues that arise from alternative revenue programs, which are discussed in Note 16. For ETG and SJG, unrealized gains and losses on energy-related derivative instruments are recorded in Regulatory Assets or Regulatory Liabilities on the condensed consolidated balance sheets of SJI and SJG (see Note 12) until they become realized, in which case they are recognized in operating revenues. SJRG's gas revenues are recognized in the period the commodity is delivered. Realized and unrealized gains and losses on energy-related derivative instruments are also recognized in operating revenues for SJRG. SJRG presents revenues and expenses related to its energy trading activities on a net basis in operating revenues. This net presentation has no effect on operating income or net income. The Company recognizes revenues on commissions received related to SJESP appliance service contracts, along with AEP and EnerConnex energy procurement service contracts from a third party, on a monthly basis as the commissions are earned. Marina recognizes revenues for renewable energy projects when renewable energy credits have been transferred to the third party at an agreed upon price. We considered the impact the COVID-19 pandemic has had on operating revenues, noting that SJI and SJG have not seen a significant reduction in revenues as a result of the pandemic. This is due to gas and electricity being considered an essential service and continuing to be delivered timely to customers, and no delays or operational shutdowns taking place to date. Given the performance obligation is satisfied at delivery, which matches the time when the Company is able to invoice the customer, the Company is confident in being able to meet its future performance obligations. To the extent that the pandemic does impact our ability to deliver in the future, operating revenues could be impacted. |
ARO | ARO - The amounts included under ARO are primarily related to the legal obligations SJI and SJG have to cut and cap gas distribution pipelines when taking those pipelines out of service in future years. These liabilities are generally recognized upon the acquisition or construction of the asset, or when management has adequate information in order to make an estimate of the obligation. The related asset retirement cost is capitalized concurrently by increasing the carrying amount of the related asset by the same amount as the liability. Changes in the liability are recorded for the passage of time (accretion) or for revisions to cash flows originally estimated to settle the ARO. |
TREASURY STOCK | TREASURY STOCK - SJI uses the par value method of accounting for treasury stock. |
ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION (AFUDC) | AFUDC - SJI and SJG record AFUDC, which represents the estimated debt and equity costs of capital funds that are necessary to finance the construction of new facilities. While cash is not realized currently, AFUDC increases the regulated revenue requirement and is included in rate base and recovered over the service life of the asset through a higher rate base and higher depreciation. |
INCOME TAXES | INCOME TAXES - Deferred income taxes are provided for all significant temporary differences between the book and taxable bases of assets and liabilities in accordance with ASC 740, Income Taxes . A valuation allowance is established when it is determined that it is more likely than not that a deferred tax asset will not be realized. |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS - Other than as described below, no new accounting pronouncement had, or is expected to have, a material impact on the condensed consolidated financial statements of SJI, or the condensed financial statements of SJG. Recently Adopted Standards: Standard Description Date of Adoption Application Effect on the Financial Statements of SJI and SJG ASU 2017-04: The update simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount. January 1, 2020 Prospective Adoption of this guidance did not have a material impact on the financial statement results of SJI or SJG. ASU 2018-13: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement This ASU modifies the disclosure requirements on the timing of liquidation of an investee's assets and the description of measurement uncertainty at the reporting date. Entities are now required to disclose: (1) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements; and (2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. Further, the standard eliminates disclosure requirements with respect to: (1) the transfers between Level 1 and Level 2 of the fair value hierarchy; (2) the policy for timing of transfers between levels; and (3) the valuation process for Level 3 fair value measurements. January 1, 2020 Prospective for added disclosures and for the narrative description of measurement uncertainty Adoption of this guidance did not have a material impact on the financial statement results of SJI or SJG. Disclosures requirements are reflected in Note 13. ASU 2019-04: Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments The amendments in this ASU provide codification improvements and further clarification on several topics, including ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, as well as ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10). See ASU 2016-13 below for more detail. January 1, 2020 Amendments related to ASU 2016-01 and ASU 2016-13 - modified retrospective; all other amendments - prospective Adoption of this guidance did not have a material impact on the financial statement results of SJI or SJG. ASU 2016-13: Measurement of Credit Losses on Financial Instruments The amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to develop credit loss estimates. An entity will apply the amendment through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. January 1, 2020 Modified retrospective The impact of adoption did not result in an adjustment to retained earnings for either SJI or SJG as of January 1, 2020. Standards Not Yet Effective: Standard Description Date of Adoption Application Effect on the Financial Statements of SJI and SJG ASU 2018-14: This ASU eliminates requirements for certain disclosures such as the amount and timing of plan assets expected to be returned to the employer and the amount of future annual benefits covered by insurance contracts. The standard adds new disclosures that provide information relating to the weighted-average interest crediting rate for cash balance plans and other plans with promised interest crediting rates and an explanation for significant gains or losses related to changes in the benefit obligations for the period. Annual disclosures for the fiscal year ending December 31, 2020 Retrospective Adoption of this guidance will not have a material impact on the financial statements of SJI and SJG. Management is currently determining the impact that adoption of this guidance will have on the SJI and SJG disclosures within the notes to the financial statements. ASU 2019-12: This ASU removes exceptions related to the incremental approach for intraperiod tax allocation, the requirement to recognize a deferred tax liability for changes in ownership of a foreign subsidiary or equity method investment, and the general methodology for calculating income taxes in an interim period when the year-to-date loss exceeds the anticipated loss. The guidance also adds requirements to reflect changes to tax laws or rates in the annual effective tax rate computation in the interim period in which the changes were enacted, to recognize franchise or other similar taxes that are partially based on income as an income-based tax and any incremental amounts as non-income-based tax, and to evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction. January 1, 2021; early adoption permitted Modified retrospective for amendments related to changes in ownership of a foreign subsidiary or equity method investment; Modified retrospective or retrospective for amendments related to taxes partially based on income; Prospective for all other amendments Management is currently determining the impact that adoption of this guidance will have on the financial statements of SJI and SJG. ASU 2020-01: Clarifying the Interactions between Topic 321 (Investments - Equity Securities), Topic 323 (Investments - Equity Method and Joint Ventures), and Topic 815 (Derivatives and Hedging) The amendments in this ASU clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. The amendments in this ASU also clarify that for the purposes of applying Topic 815, an entity should not consider whether, upon the settlement of a forward contract or exercise of a purchased option, individually or with existing investments, the underlying securities would be accounted for under the equity method in Topic 323 or the fair value option in accordance with the financial instruments guidance in Topic 825. January 1, 2021; early adoption permitted Prospective Management is currently determining the impact that adoption of this guidance will have on the financial statements of SJI and SJG. ASU 2020-04: Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in this ASU provide various optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. March 12, 2020 through December 31, 2022 An entity may elect to apply the amendments for contract modifications by Topic or Industry Subtopic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Prospective for contract modifications and hedging relationships. Once elected for a Topic or an Industry Subtopic, the amendments in this Update must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. Management is currently determining the impact that adoption of this guidance will have on the financial statements of SJI and SJG. Management is also evaluating timing of adoption. ASU 2020-06: Accounting for Convertible Instruments and Contracts in an Entity's Own Equity The amendments in this ASU simplify the accounting for convertible instruments by removing certain separation models in Subtopic 470-20. Under the amendments, embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, or that do not result in substantial premiums accounted for as paid-in capital. Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost and a convertible preferred stock will be accounted for as a single equity instrument measured at its historical cost, as long as no other features require bifurcation and recognition as derivatives. The amendments also add new convertible instrument disclosure requirements. Additionally, the amendments in this ASU remove certain conditions from the settlement guidance within the derivative scope exception guidance contained in Subtopic 815-40 and further clarify the derivative scope exception guidance. Finally, the amendments in this ASU align the diluted EPS calculation for convertible instruments by requiring that an entity use the if-converted method instead of the treasury stock method when calculated diluted EPS for convertible instruments. January 1, 2022; early adoption permitted, but not before January 1, 2021 Retrospective or Modified Retrospective Management is currently determining the impact that adoption of this guidance will have on the financial statements of SJI and SJG. |
FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES | GAAP establishes a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques. The levels of the hierarchy are described below: • Level 1: Observable inputs, such as quoted prices in active markets for identical assets or liabilities. • Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. • Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. Assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of financial assets and financial liabilities and their placement within the fair value hierarchy. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Asset Retirement Obligation Activity | ARO activity for the nine months ended September 30, 2020 as follows (in thousands): SJI (includes SJG and all other consolidated subsidiaries): 2020 ARO as of January 1, $ 263,950 Accretion 7,129 Additions 3,266 Settlements (6,195) Revisions in Estimated Cash Flows (A) (72,432) ARO as of September 30, $ 195,718 SJG: 2020 ARO as of January 1, $ 96,509 Accretion 3,078 Additions 1,161 Settlements (1,142) Revisions in Estimated Cash Flows (A) (18,751) ARO as of September 30, $ 80,855 (A) The revisions in estimated cash flows for SJI and SJG for the nine months ended September 30, 2020 shown in the table above reflect decreases in the estimated retirement costs primarily as a result of changes in contractor costs to settle the ARO liability. Corresponding entries were made to Regulatory Assets and Utility Plant, thus having no impact on earnings. |
Schedule of Asset Management Agreement Contract Purchase | The total purchase price was allocated as follows (in thousands): Natural Gas in Storage $ 9,685 Intangible Asset 19,200 Profit Sharing - Other Liabilities (17,546) Total Consideration $ 11,339 |
STOCK-BASED COMPENSATION PLAN (
STOCK-BASED COMPENSATION PLAN (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of the nonvested restricted stock awards outstanding and the assumptions used to estimate the fair value of the awards | The following table summarizes the nonvested restricted stock awards outstanding for SJI at September 30, 2020 and the assumptions used to estimate the fair value of the awards: Grants Shares Outstanding Fair Value Per Share Expected Volatility Risk-Free Interest Rate Officers & Key Employees - 2018 - TSR 48,304 $ 31.05 21.9 % 2.00 % 2018 - CEGR, Time 63,389 $ 31.23 N/A N/A 2019 - TSR 36,642 $ 32.88 23.2 % 2.40 % 2019 - CEGR, Time 101,982 $ 31.38 N/A N/A 2020 - TSR 46,752 $ 25.51 34.8 % 0.21 % 2020 - CEGR, Time 178,526 $ 25.19 N/A N/A Directors - 2020 38,456 $ 32.07 N/A N/A |
Summary of the total stock-based compensation cost for the period | The following table summarizes the total stock-based compensation cost to SJI for the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Officers & Key Employees $ 1,220 $ 1,071 $ 3,671 $ 3,355 Directors 302 209 899 613 Total Cost 1,522 1,280 4,570 3,968 Capitalized (12) (119) (35) (153) Net Expense $ 1,510 $ 1,161 $ 4,535 $ 3,815 |
Summary of information regarding restricted stock award activity during the period excluding accrued dividend equivalents | The following table summarizes information regarding restricted stock award activity for SJI during the nine months ended September 30, 2020, excluding accrued dividend equivalents: Officers and Other Key Employees Directors Weighted Nonvested Shares Outstanding, January 1, 2020 402,146 30,961 $ 31.50 Granted 225,278 38,456 $ 26.32 Cancelled/Forfeited (14,867) — $ 31.48 Vested* (136,963) (30,961) $ 31.49 Nonvested Shares Outstanding, September 30, 2020 475,594 38,456 $ 28.84 |
AFFILIATIONS, DISCONTINUED OP_2
AFFILIATIONS, DISCONTINUED OPERATIONS AND RELATED-PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Summary of operating results of discontinued operations | Summarized operating results of the discontinued operations for the three and nine months ended September 30, 2020 and 2019, were (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Loss before Income Taxes: Sand Mining $ 3 $ (16) $ (32) $ (60) Fuel Oil (76) (59) (193) (212) Income Tax Benefits 15 16 47 56 Loss from Discontinued Operations — Net $ (58) $ (59) $ (178) $ (216) Earnings Per Common Share from Discontinued Operations — Net: Basic and Diluted $ — $ — $ — $ — |
Summary of related-party transactions | A summary of related-party transactions involving SJG, excluding pass-through items, included in SJG's Operating Revenues were as follows (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Operating Revenues/Affiliates: SJRG $ 595 $ 1,092 $ 2,192 $ 3,518 Marina — 82 60 290 Other 20 20 59 60 Total Operating Revenue/Affiliates $ 615 $ 1,194 $ 2,311 $ 3,868 Related-party transactions involving SJG, excluding pass-through items, included in SJG's Cost of Sales and Operating Expenses were as follows (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Costs of Sales/Affiliates (Excluding depreciation and amortization) SJRG* $ 1,808 $ 2,326 $ 3,404 $ 8,908 Operations Expense/Affiliates: SJI $ 5,909 $ 5,087 $ 17,463 $ 15,507 SJIU 743 630 2,616 1,971 Millennium 814 794 2,461 2,118 Other 453 340 1,335 6,790 Total Operations Expense/Affiliates $ 7,919 $ 6,851 $ 23,875 $ 26,386 *These costs are included in SJG's Cost of Sales on the condensed statements of income/(loss). As discussed in 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, 2019, revenues and expenses related to the energy trading activities of the wholesale energy operations at SJRG are presented on a net basis in Operating Revenues – Nonutility on the condensed consolidated income statement. |
COMMON STOCK (Tables)
COMMON STOCK (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Schedule of common stock shares issued and outstanding | The following shares were issued and outstanding for SJI: 2020 Beginning Balance, January 1 92,394,155 New Issuances During the Period: ATM Equity Offering 8,122,283 Stock-Based Compensation Plan 71,474 Ending Balance, September 30 100,587,912 |
Schedule of convertible units | The convertible units consisted of the following (in thousands): September 30, 2020 December 31, 2019 Principal amount: Principal (A) $ 287,500 $ 287,500 Unamortized debt discount and issuance costs (A) 7,323 7,737 Net carrying amount $ 280,177 $ 279,763 Carrying amount of the equity component (B) $ — $ — (A) Included in the condensed consolidated balance sheets within Long-Term Debt. (B) There is currently no equity portion. |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Reconciliation of cash and cash equivalents | The following table provides SJI's (including SJG) and SJG's balances of Restricted Investments as well as presents a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that total to the amounts shown in the condensed consolidated statements of cash flows (in thousands): As of September 30, 2020 Balance Sheet Line Item SJI SJG Cash and Cash Equivalents $ 10,103 $ 1,528 Restricted Investments 199 199 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 10,302 $ 1,727 As of December 31, 2019 Balance Sheet Line Item SJI SJG Cash and Cash Equivalents $ 6,417 $ 2,678 Restricted Investments 21,964 4,073 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 28,381 $ 6,751 |
Reconciliation of restricted cash | The following table provides SJI's (including SJG) and SJG's balances of Restricted Investments as well as presents a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that total to the amounts shown in the condensed consolidated statements of cash flows (in thousands): As of September 30, 2020 Balance Sheet Line Item SJI SJG Cash and Cash Equivalents $ 10,103 $ 1,528 Restricted Investments 199 199 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 10,302 $ 1,727 As of December 31, 2019 Balance Sheet Line Item SJI SJG Cash and Cash Equivalents $ 6,417 $ 2,678 Restricted Investments 21,964 4,073 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 28,381 $ 6,751 |
Schedule of allowance for credit losses | ALLOWANCE FOR CREDIT LOSSES - Accounts receivable are recorded gross on the condensed consolidated balance sheets with allowance for credit losses shown as a separate line item titled Provision for Uncollectibles. A summary of changes in the allowance for credit losses is as follows (in thousands): Three Months Ended Nine Months Ended SJI (includes SJG and all other consolidated subsidiaries): Balance at beginning of period $ 30,410 $ 19,829 Provision for expected credit losses 5,416 19,994 Recoveries of accounts previously written off 126 688 Uncollectible accounts written off (2,935) (7,494) Balance at end of period $ 33,017 $ 33,017 SJG: Balance at beginning of period $ 14,472 $ 14,032 Provision for expected credit losses 4,783 8,255 Recoveries of accounts previously written off 4 295 Uncollectible accounts written off (2,422) (5,745) Balance at end of period $ 16,837 $ 16,837 |
Schedule of estimated fair values and carrying values of long-term debt | The carrying amounts of SJI's and SJG's financial instruments approximate their fair values at September 30, 2020 and December 31, 2019, except as noted below (in thousands): September 30, 2020 December 31, 2019 SJI (includes SJG and all consolidated entities) Estimated fair values of long-term debt $ 2,836,407 $ 2,734,745 Carrying amounts of long-term debt, including current maturities $ 2,674,441 $ 2,537,995 Net of: Unamortized debt issuance costs $ 29,168 $ 25,547 Unamortized debt discounts $ 5,246 $ 5,313 SJG Estimated fair values of long-term debt $ 1,035,948 $ 915,248 Carrying amounts of long-term debt, including current maturities $ 952,116 $ 965,100 Net of: Unamortized debt issuance costs $ 9,239 $ 6,284 |
SEGMENTS OF BUSINESS (Tables)
SEGMENTS OF BUSINESS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segments of Business | Information about SJI’s operations in different reportable operating segments is presented below (in thousands). The results for AEP are included in the Corporate & Services segment from the acquisition date of August 31, 2019, and the results for EnerConnex are included in the Corporate & Services segment for all periods, based on the ownership interest levels applicable within each period (see Notes 1 and 17). Further, the results and balances for On-Site Energy Production are impacted by the sales of solar assets and the sale of MTF and ACB (see Note 1). The identifiable assets balance for On-Site Energy Production as of September 30, 2020 is also impacted by the newly acquired entities (see Notes 1 and 17). Three Months Ended Nine Months Ended 2020 2019 2020 2019 Operating Revenues: SJI Utilities: SJG Utility Operations $ 66,190 $ 62,039 $ 394,066 $ 396,505 ETG Utility Operations 37,503 30,619 239,503 215,647 ELK Utility Operations 285 892 4,792 5,210 Subtotal SJI Utilities 103,978 93,550 638,361 617,362 Energy Group: Wholesale Energy Operations 143,338 135,856 373,308 452,346 Retail Electric Operations 7,692 22,395 29,874 65,617 Subtotal Energy Group 151,030 158,251 403,182 517,963 Energy Services: On-Site Energy Production 6,317 11,980 15,459 38,098 Appliance Service Operations 491 514 1,485 1,529 Subtotal Energy Services 6,808 12,494 16,944 39,627 Corporate and Services 11,488 10,252 38,116 31,438 Subtotal 273,304 274,547 1,096,603 1,206,390 Intersegment Sales (11,755) (13,344) (40,978) (40,955) Total Operating Revenues $ 261,549 $ 261,203 $ 1,055,625 $ 1,165,435 Three Months Ended Nine Months Ended 2020 2019 2020 2019 Operating (Loss) Income: SJI Utilities: SJG Utility Operations $ (6,080) $ (8,319) $ 108,297 $ 100,241 ETG Utility Operations (3,163) (5,112) 57,274 41,088 ELK Utility Operations (374) (197) 373 401 Subtotal SJI Utilities (9,617) (13,628) 165,944 141,730 Energy Group: Wholesale Energy Operations 2,768 (8,371) 16,272 (13,263) Retail Electric Operations (842) (3) (2,512) (3,972) Subtotal Energy Group 1,926 (8,374) 13,760 (17,235) Energy Services: On-Site Energy Production 2,455 2,634 143 5,049 Appliance Service Operations 586 468 1,482 1,484 Subtotal Energy Services 3,041 3,102 1,625 6,533 Corporate and Services (3,844) (125) (3,870) (5,680) Total Operating (Loss) Income $ (8,494) $ (19,025) $ 177,459 $ 125,348 Depreciation and Amortization: SJI Utilities: SJG Utility Operations $ 25,762 $ 23,564 $ 76,216 $ 69,349 ETG Utility Operations 10,391 7,461 30,370 20,932 ELK Utility Operations 52 158 354 383 Subtotal SJI Utilities 36,205 31,183 106,940 90,664 Energy Group: Wholesale Energy Operations 14 22 44 70 Subtotal Energy Group 14 22 44 70 Energy Services: On-Site Energy Production 30 1,248 36 3,756 Subtotal Energy Services 30 1,248 36 3,756 Corporate and Services 1,267 1,094 3,704 4,092 Total Depreciation and Amortization $ 37,516 $ 33,547 $ 110,724 $ 98,582 Interest Charges: SJI Utilities: SJG Utility Operations $ 8,271 $ 7,840 $ 23,832 $ 23,584 ETG Utility Operations 7,398 7,165 22,321 20,106 ELK Utility Operations 2 4 21 15 Subtotal SJI Utilities 15,671 15,009 46,174 43,705 On-Site Energy Production 277 2,097 2,974 6,520 Midstream 677 573 1,837 1,672 Corporate and Services 12,490 14,433 43,332 44,496 Subtotal 29,115 32,112 94,317 96,393 Intersegment Borrowings (1,353) (3,255) (5,430) (10,449) Total Interest Charges $ 27,762 $ 28,857 $ 88,887 $ 85,944 Three Months Ended Nine Months Ended 2020 2019 2020 2019 Income Taxes: SJI Utilities: SJG Utility Operations $ (3,293) $ (3,747) $ 23,157 $ 20,620 ETG Utility Operations (2,475) (2,065) 7,869 4,028 ELK Utility Operations (4) (54) 186 100 Subtotal SJI Utilities (5,772) (5,866) 31,212 24,748 Energy Group: Wholesale Energy Operations 858 (2,130) 4,583 (3,088) Retail Electric Operations (233) 4 (478) (814) Subtotal Energy Group 625 (2,126) 4,105 (3,902) Energy Services: On-Site Energy Production (11,191) 242 (10,897) (115) Appliance Service Operations 116 142 461 445 Subtotal Energy Services (11,075) 384 (10,436) 330 Midstream (58) (18) (174) (83) Corporate and Services (3,187) (3,299) (10,982) (11,715) Total Income Taxes $ (19,467) $ (10,925) $ 13,725 $ 9,378 Property Additions: SJI Utilities: SJG Utility Operations $ 73,481 $ 73,059 $ 181,440 $ 195,621 ETG Utility Operations 45,452 50,426 149,578 142,388 ELK Utility Operations 112 468 971 2,096 Subtotal SJI Utilities 119,045 123,953 331,989 340,105 Energy Group: Wholesale Energy Operations 2 1 2 1 Subtotal Energy Group 2 1 2 1 Energy Services: On-Site Energy Production 59,866 — 62,751 164 Subtotal Energy Services 59,866 — 62,751 164 Midstream 29 16 115 35 Corporate and Services 715 368 2,076 954 Total Property Additions $ 179,657 $ 124,338 $ 396,933 $ 341,259 September 30, 2020 December 31, 2019 Identifiable Assets: SJI Utilities: SJG Utility Operations $ 3,383,449 $ 3,348,555 ETG Utility Operations 2,482,155 2,458,846 ELK Utility Operations — 21,723 Subtotal SJI Utilities 5,865,604 5,829,124 Energy Group: Wholesale Energy Operations 126,973 195,576 Retail Electric Operations 21,176 30,351 Subtotal Energy Group 148,149 225,927 Energy Services: On-Site Energy Production 113,050 154,021 Subtotal Energy Services 113,050 154,021 Midstream 90,459 83,517 Discontinued Operations 1,790 1,766 Corporate and Services 249,943 403,170 Intersegment Assets (160,072) (332,185) Total Identifiable Assets $ 6,308,923 $ 6,365,340 |
REGULATORY ASSETS AND REGULAT_2
REGULATORY ASSETS AND REGULATORY LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Schedule of Regulatory Assets | The Utilities' Regulatory Assets as of September 30, 2020 and December 31, 2019 consisted of the following items (in thousands): September 30, 2020 SJG ETG ELK Total SJI Environmental Remediation Costs: Expended - Net $ 160,828 $ 10,267 $ — $ 171,095 Liability for Future Expenditures 102,889 93,111 — 196,000 Insurance Recovery Receivables — (13,615) — (13,615) Deferred ARO Costs 40,858 23,591 — 64,449 Deferred Pension Costs - Unrecognized Prior Service Cost — 34,940 — 34,940 Deferred Pension and Other Postretirement Benefit Costs 72,010 1,825 — 73,835 Deferred Gas Costs - Net 19,222 — — 19,222 CIP Receivable 16,242 — — 16,242 SBC Receivable 2,665 — — 2,665 Deferred Interest Rate Contracts 10,872 — — 10,872 EET 16,810 — — 16,810 Pipeline Supplier Service Charges 457 — — 457 Pipeline Integrity Cost 5,837 — — 5,837 AFUDC - Equity Related Deferrals 11,491 — — 11,491 WNC — 5,535 — 5,535 Other Regulatory Assets 25,889 18,000 — 43,889 Total Regulatory Assets $ 486,070 $ 173,654 $ — $ 659,724 December 31, 2019 SJG ETG ELK Total SJI Environmental Remediation Costs: Expended - Net $ 156,279 $ 16,955 $ — $ 173,234 Liability for Future Expenditures 131,262 101,083 — 232,345 Insurance Recovery Receivables — (20,423) — (20,423) Deferred ARO Costs 36,515 18,108 — 54,623 Deferred Pension Costs - Unrecognized Prior Service Cost — 37,378 — 37,378 Deferred Pension and Other Postretirement Benefit Costs 72,010 1,825 — 73,835 Deferred Gas Costs - Net 49,469 5,301 293 55,063 SBC Receivable 1,478 — — 1,478 Deferred Interest Rate Contracts 7,856 — — 7,856 EET 12,877 — — 12,877 Pipeline Supplier Service Charges 525 — — 525 Pipeline Integrity Cost 6,516 — — 6,516 AFUDC - Equity Related Deferrals 10,712 — — 10,712 WNC — — 231 231 Other Regulatory Assets 10,678 9,004 — 19,682 Total Regulatory Assets $ 496,177 $ 169,231 $ 524 $ 665,932 |
Schedule of Regulatory Liabilities | The Utilities Regulatory Liabilities as of September 30, 2020 and December 31, 2019 consisted of the following items (in thousands): September 30, 2020 SJG ETG ELK Total SJI Excess Plant Removal Costs $ 12,849 $ 37,648 $ — $ 50,497 Excess Deferred Taxes 240,453 114,839 — 355,292 Deferred Revenues - Net — 15,106 — 15,106 Amounts to be Refunded to Customers — 7,455 — 7,455 Other Regulatory Liabilities — 589 — 589 Total Regulatory Liabilities $ 253,302 $ 175,637 $ — $ 428,939 December 31, 2019 SJG ETG ELK Total SJI Excess Plant Removal Costs $ 16,333 $ 36,343 $ — $ 52,676 Excess Deferred Taxes 251,355 117,695 — 369,050 Deferred Revenues - Net — 52 — 52 CIP Payable 6,794 — — 6,794 WNC — 2,684 — 2,684 Amounts to be Refunded to Customers — 10,625 — 10,625 Other Regulatory Liabilities — 1,037 — 1,037 Total Regulatory Liabilities $ 274,482 $ 168,436 $ — $ 442,918 |
PENSION AND OTHER POSTRETIREM_2
PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of defined benefit plan disclosures | For the three and nine months ended September 30, 2020 and 2019, net periodic benefit cost related to the SJI employee and officer pension and other postretirement benefit plans consisted of the following components (in thousands): Pension Benefits Three Months Ended Nine Months Ended 2020 2019 2020 2019 Service Cost $ 974 $ 1,387 $ 4,349 $ 4,187 Interest Cost 3,862 4,307 11,388 12,971 Expected Return on Plan Assets (5,569) (5,077) (16,473) (15,213) Amortizations: Prior Service Cost 26 26 79 79 Actuarial Loss 2,647 2,398 8,077 7,195 Net Periodic Benefit Cost 1,940 3,041 7,420 9,219 Capitalized Benefit Cost (410) (454) (1,470) (1,423) Deferred Benefit Cost (377) (516) (1,193) (1,710) Total Net Periodic Benefit Expense $ 1,153 $ 2,071 $ 4,757 $ 6,086 Other Postretirement Benefits Three Months Ended Nine Months Ended 2020 2019 2020 2019 Service Cost $ 182 $ 129 $ 511 $ 400 Interest Cost 560 729 1,775 2,163 Expected Return on Plan Assets (1,345) (1,147) (4,036) (3,428) Amortizations: Prior Service Cost (180) (144) (468) (432) Actuarial Loss 255 292 640 876 Net Periodic Benefit Cost (528) (141) (1,578) (421) Capitalized Benefit Cost 57 (115) (157) (270) Deferred Benefit Cost (90) 118 701 352 Total Net Periodic Benefit Expense $ (561) $ (138) $ (1,034) $ (339) |
LINES OF CREDIT AND SHORT-TER_2
LINES OF CREDIT AND SHORT-TERM BORROWINGS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Line of Credit Facility [Abstract] | |
Schedule of lines of credit | Credit facilities and available liquidity as of September 30, 2020 were as follows (in thousands): Company Total Facility Usage Available Liquidity Expiration Date SJI: SJI Syndicated Revolving Credit Facility $ 500,000 $ 199,300 (A) $ 300,700 August 2022 Term Loan Credit Agreement 150,000 150,000 — March 2021 Total SJI 650,000 349,300 300,700 SJG: Commercial Paper Program/Revolving Credit Facility 200,000 108,700 (B) 91,300 August 2022 Uncommitted Bank Line 10,000 — 10,000 September 2021 (D) Total SJG 210,000 108,700 101,300 ETG/SJIU: ETG/SJIU Revolving Credit Facility 200,000 150,400 (C) 49,600 April 2022 Total $ 1,060,000 $ 608,400 $ 451,600 (A) Includes letters of credit outstanding in the amount of $9.6 million, which is used to enable SJE to market retail electricity as well as for various construction and operating activities. (B) Includes letters of credit outstanding in the amount of $0.8 million, which supports the remediation of environmental conditions at certain locations in SJG's service territory. (C) Includes letters of credit outstanding in the amount of $1.0 million, which supports ETG's construction activity. (D) SJG renewed this facility during the third quarter of 2020. The weighted average interest rate on these borrowings, which changes daily, were as follows: September 30, 2020 September 30, 2019 Weighted average interest rate on borrowings: SJI (inclusive of SJG, ETG and SJIU) 1.26 % 3.00 % SJG 0.23 % 2.39 % Average borrowings and maximum amounts outstanding on these facilities were as follows (in thousands): Nine Months Ended Nine Months Ended Average borrowings outstanding, not including LOC: SJI (inclusive of SJG, ETG and SJIU) $ 516.8 $ 487.8 SJG $ 149.0 $ 96.2 Maximum amounts outstanding: SJI (inclusive of SJG, ETG and SJIU) $ 872.2 $ 882.7 SJG $ 187.0 $ 175.3 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding derivative contracts | As of September 30, 2020, 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) 87.0 13.1 Expected future sales of natural gas (in MMdts) 101.5 0.7 Expected future purchases of electricity (in MMmWh) 0.1 — Expected future sales of electricity (in MMmWh) 0.1 — Basis and Index related net purchase (sale) contracts (in MMdts) 86.7 2.6 |
Schedule of notional amounts of outstanding derivative positions | As of September 30, 2020, 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 |
Fair value of derivative instruments | The fair values of all derivative instruments, as reflected in the condensed consolidated balance sheets as of September 30, 2020 and December 31, 2019, are as follows (in thousands): SJI (includes SJG and all other consolidated subsidiaries): Derivatives not designated as hedging instruments under GAAP September 30, 2020 December 31, 2019 Assets Liabilities Assets Liabilities Energy-related commodity contracts: Derivatives - Energy Related - Current $ 36,541 $ 25,005 $ 52,892 $ 41,965 Derivatives - Energy Related - Non-Current 10,407 4,452 7,243 8,206 Interest rate contracts: Derivatives - Other - Current — 2,078 — 1,155 Derivatives - Other - Noncurrent — 17,637 — 11,505 Total derivatives not designated as hedging instruments under GAAP $ 46,948 $ 49,172 $ 60,135 $ 62,831 Total Derivatives $ 46,948 $ 49,172 $ 60,135 $ 62,831 SJG: Derivatives not designated as hedging instruments under GAAP September 30, 2020 December 31, 2019 Assets Liabilities Assets Liabilities Energy-related commodity contracts: Derivatives – Energy Related – Current $ 6,060 $ 817 $ 16,904 $ 14,671 Derivatives – Energy Related – Non-Current 425 — 5 95 Interest rate contracts: Derivatives – Other - Current — 709 — 488 Derivatives – Other - Noncurrent — 10,163 — 7,368 Total derivatives not designated as hedging instruments under GAAP $ 6,485 $ 11,689 $ 16,909 $ 22,622 Total Derivatives $ 6,485 $ 11,689 $ 16,909 $ 22,622 |
Offsetting assets | Information related to these offsetting arrangements were as follows (in thousands): As of September 30, 2020 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/(Received) SJI (includes SJG and all other consolidated subsidiaries): Derivatives - Energy Related Assets $ 46,948 $ — $ 46,948 $ (24,937) (A) $ (3,706) $ 18,305 Derivatives - Energy Related Liabilities $ (29,457) $ — $ (29,457) $ 24,937 (B) $ — $ (4,520) Derivatives - Other $ (19,715) $ — $ (19,715) $ — $ — $ (19,715) SJG: Derivatives - Energy Related Assets $ 6,485 $ — $ 6,485 $ (338) (A) $ — $ 6,147 Derivatives - Energy Related Liabilities $ (817) $ — $ (817) $ 338 (B) $ — $ (479) Derivatives - Other $ (10,872) $ — $ (10,872) $ — $ — $ (10,872) As of December 31, 2019 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/(Received) SJI (includes SJG and all other consolidated subsidiaries): Derivatives - Energy Related Assets $ 60,135 $ — $ 60,135 $ (32,185) (A) $ — $ 27,950 Derivatives - Energy Related Liabilities $ (50,171) $ — $ (50,171) $ 32,185 (B) $ 12,878 $ (5,108) Derivatives - Other $ (12,660) $ — $ (12,660) $ — $ — $ (12,660) SJG: Derivatives - Energy Related Assets $ 16,909 $ — $ 16,909 $ (11,860) (A) $ — $ 5,049 Derivatives - Energy Related Liabilities $ (14,766) $ — $ (14,766) $ 11,860 (B) $ 2,706 $ (200) Derivatives - Other $ (7,856) $ — $ (7,856) $ — $ — $ (7,856) (A) The balances at September 30, 2020 and December 31, 2019 were related to derivative liabilities which can be net settled against derivative assets. (B) The balances at September 30, 2020 and December 31, 2019 were related to derivative assets which can be net settled against derivative liabilities. |
Offsetting liabilities | Information related to these offsetting arrangements were as follows (in thousands): As of September 30, 2020 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/(Received) SJI (includes SJG and all other consolidated subsidiaries): Derivatives - Energy Related Assets $ 46,948 $ — $ 46,948 $ (24,937) (A) $ (3,706) $ 18,305 Derivatives - Energy Related Liabilities $ (29,457) $ — $ (29,457) $ 24,937 (B) $ — $ (4,520) Derivatives - Other $ (19,715) $ — $ (19,715) $ — $ — $ (19,715) SJG: Derivatives - Energy Related Assets $ 6,485 $ — $ 6,485 $ (338) (A) $ — $ 6,147 Derivatives - Energy Related Liabilities $ (817) $ — $ (817) $ 338 (B) $ — $ (479) Derivatives - Other $ (10,872) $ — $ (10,872) $ — $ — $ (10,872) As of December 31, 2019 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/(Received) SJI (includes SJG and all other consolidated subsidiaries): Derivatives - Energy Related Assets $ 60,135 $ — $ 60,135 $ (32,185) (A) $ — $ 27,950 Derivatives - Energy Related Liabilities $ (50,171) $ — $ (50,171) $ 32,185 (B) $ 12,878 $ (5,108) Derivatives - Other $ (12,660) $ — $ (12,660) $ — $ — $ (12,660) SJG: Derivatives - Energy Related Assets $ 16,909 $ — $ 16,909 $ (11,860) (A) $ — $ 5,049 Derivatives - Energy Related Liabilities $ (14,766) $ — $ (14,766) $ 11,860 (B) $ 2,706 $ (200) Derivatives - Other $ (7,856) $ — $ (7,856) $ — $ — $ (7,856) (A) The balances at September 30, 2020 and December 31, 2019 were related to derivative liabilities which can be net settled against derivative assets. (B) The balances at September 30, 2020 and December 31, 2019 were related to derivative assets which can be net settled against derivative liabilities. |
Derivatives in cash flow hedging relationships | The effect of derivative instruments on the condensed consolidated statements of income (loss) are as follows (in thousands): Three Months Ended Nine Months Ended Derivatives in Cash Flow Hedging Relationships under GAAP 2020 2019 2020 2019 SJI (includes SJG and all other consolidated subsidiaries): Interest Rate Contracts: Losses reclassified from AOCL into income (a) $ (12) $ (12) $ (35) $ (35) SJG: Interest Rate Contracts: Losses reclassified from AOCL into income (a) $ (12) $ (12) $ (35) $ (35) (a) Included in Interest Charges Three Months Ended Nine Months Ended Derivatives Not Designated as Hedging Instruments under GAAP 2020 2019 2020 2019 SJI (includes SJG and all other consolidated subsidiaries): Losses on energy-related commodity contracts (a) $ (6,246) $ (6,187) $ (7,807) $ (18,390) Gains (Losses) on interest rate contracts (b) 342 (1,137) (4,040) (3,972) Total $ (5,904) $ (7,324) $ (11,847) $ (22,362) (a) Included in Operating Revenues - Nonutility (b) Included in Interest Charges |
FAIR VALUE OF FINANCIAL ASSET_2
FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value of assets and liabilities | For financial assets and financial liabilities measured at fair value on a recurring basis, information about the fair value measurements for each major category is as follows (in thousands): As of September 30, 2020 Total Level 1 Level 2 Level 3 SJI (includes SJG and all other consolidated subsidiaries): Assets Available-for-Sale Securities (A) $ 40 $ 40 $ — $ — Derivatives – Energy Related Assets (B) 46,948 18,953 16,876 11,119 $ 46,988 $ 18,993 $ 16,876 $ 11,119 SJG: Assets Derivatives – Energy Related Assets (B) $ 6,485 $ 2,181 $ — $ 4,304 $ 6,485 $ 2,181 $ — $ 4,304 SJI (includes SJG and all other consolidated subsidiaries): Liabilities Derivatives – Energy Related Liabilities (B) $ 29,457 $ 8,393 $ 16,354 $ 4,710 Derivatives – Other (C) 19,715 — 19,715 — $ 49,172 $ 8,393 $ 36,069 $ 4,710 SJG: Liabilities Derivatives – Energy Related Liabilities (B) $ 817 $ 338 $ 479 $ — Derivatives – Other (C) 10,872 — 10,872 — $ 11,689 $ 338 $ 11,351 $ — As of December 31, 2019 Total Level 1 Level 2 Level 3 SJI (includes SJG and all other consolidated subsidiaries): Assets Available-for-Sale Securities (A) $ 40 $ 40 $ — $ — Derivatives – Energy Related Assets (B) 60,135 16,931 17,841 25,363 $ 60,175 $ 16,971 $ 17,841 $ 25,363 SJG: Assets Derivatives – Energy Related Assets (B) $ 16,909 $ 11,860 $ — $ 5,049 $ 16,909 $ 11,860 $ — $ 5,049 SJI (includes SJG and all other consolidated subsidiaries): Liabilities Derivatives – Energy Related Liabilities (B) $ 50,171 $ 34,446 $ 7,936 $ 7,789 Derivatives – Other (C) 12,660 — 12,660 — $ 62,831 $ 34,446 $ 20,596 $ 7,789 SJG: Liabilities Derivatives – Energy Related Liabilities (B) $ 14,766 $ 14,565 $ 187 $ 14 Derivatives – Other (C) 7,856 — 7,856 — $ 22,622 $ 14,565 $ 8,043 $ 14 (A) Available-for-Sale Securities include securities that are traded in active markets and securities that are not traded publicly. The securities traded in active markets are valued using the quoted principal market close prices that are provided by the trustees and are categorized in Level 1 in the fair value hierarchy. (B) Derivatives – Energy Related Assets and Liabilities are traded in both exchange-based and non-exchange-based markets. Exchange-based contracts are valued using unadjusted quoted market sources in active markets and are categorized in Level 1 in the fair value hierarchy - established by FASB ASC Topic 820 - “Fair Value Measurements and Disclosures.” Certain non-exchange-based contracts are valued using indicative price quotations available through brokers or over-the-counter, on-line exchanges and are categorized in Level 2. These price quotations reflect the average of the bid-ask mid-point prices and are obtained from sources that management believes provide the most liquid market. Management reviews and corroborates the price quotations with at least one additional source to ensure the prices are observable market information, which includes consideration of actual transaction volumes, market delivery points, bid-ask spreads and contract duration. Derivative instruments that are used to limit our exposure to changes in interest rates on variable-rate, long-term debt are valued using quoted prices on commonly quoted intervals, which are interpolated for periods different than the quoted intervals, as inputs to a market valuation model. Market inputs can generally be verified and model selection does not involve significant management judgment, as a result, these instruments are categorized in Level 2 in the fair value hierarchy. For non-exchange-based derivatives that trade in less liquid markets with limited pricing information, model inputs generally would include both observable and unobservable inputs. In instances where observable data is unavailable, management considers the assumptions that market participants would use in valuing the asset or liability. This includes assumptions about market risks such as liquidity, volatility and contract duration. Such instruments are categorized in Level 3 in the fair value hierarchy as the model inputs generally are not observable. Counterparty credit risk and the credit risk of SJI are incorporated and considered in the valuation of all derivative instruments as appropriate. The effect of counterparty credit risk and the credit risk of SJI on the derivative valuations is not significant. Significant Unobservable Inputs - Management uses the discounted cash flow model to value Level 3 physical and financial forward contracts, which calculates mark-to-market valuations based on forward market prices, original transaction prices, volumes, risk-free rate of return and credit spreads. Inputs to the valuation model are reviewed and revised as needed, based on historical information, updated market data, market liquidity and relationships, and changes in third party pricing sources. The validity of the mark-to-market valuations and changes in these values from period to period are examined and qualified against historical expectations by the risk management function. If any discrepancies are identified during this process, the mark-to-market valuations or the market pricing information is evaluated further and adjusted, if necessary. (C) Derivatives – Other are valued using quoted prices on commonly quoted intervals, which are interpolated for periods different than the quoted intervals, as inputs to a market valuation model. Market inputs can generally be verified and model selection does not involve significant management judgment. |
Quantitative information regarding significant unobservable inputs | The following table provides quantitative information regarding significant unobservable inputs in Level 3 fair value measurements (in thousands, except for ranges): SJI (includes SJG and all other consolidated subsidiaries) : Type Fair Value at September 30, 2020 Valuation Technique Significant Unobservable Input Range Assets Liabilities Forward Contract - Natural Gas $10,403 $4,050 Discounted Cash Flow Forward price (per dt) $0.72 - $7.09 [$3.18] (A) Forward Contract - Electric $716 $660 Discounted Cash Flow Fixed electric load profile (on-peak) 40.34% - 100.00% [60.14%] (B) Fixed electric load profile (off-peak) 0.00% - 59.66% [39.86%] (B) Type Fair Value at December 31, 2019 Valuation Technique Significant Unobservable Input Range Assets Liabilities Forward Contract - Natural Gas $21,645 $4,333 Discounted Cash Flow Forward price (per dt) $1.57 - $7.28 [$2.38] (A) Forward Contract - Electric $3,718 $3,456 Discounted Cash Flow Fixed electric load profile (on-peak) 0.00% - 100.00% [55.46%] (B) Fixed electric load profile (off-peak) 0.00% - 100.00% [44.54%] (B) SJG: Type Fair Value at September 30, 2020 Valuation Technique Significant Unobservable Input Range Assets Liabilities Forward Contract - Natural Gas $ 4,304 $ — Discounted Cash Flow Forward price (per dt) $1.05 - $5.47 [$4.03] (A) Type Fair Value at December 31, 2019 Valuation Technique Significant Unobservable Input Range Assets Liabilities Forward Contract - Natural Gas $ 5,049 $ 14 Discounted Cash Flow Forward price (per dt) $1.85 - $3.61 [$3.02] (A) (A) Represents the range, along with the weighted average, of forward prices for the sale and purchase of natural gas. (B) Represents the range, along with the weighted average, of the percentage of contracted usage that is loaded during on-peak hours versus off-peak. |
Changes in fair value using significant unobservable inputs | The changes in fair value measurements of Derivatives – Energy Related Assets and Liabilities, using significant unobservable inputs (Level 3), are as follows (in thousands): Three Months Ended Nine Months Ended SJI (includes SJG and all other consolidated subsidiaries): Balance at beginning of period $ 12,251 $ 17,574 Other Changes in Fair Value from Continuing and New Contracts, Net (3,198) 3,819 Settlements (2,644) (14,984) Balance at end of period $ 6,409 $ 6,409 SJG: Balance at beginning of period $ 4,365 $ 5,035 Other Changes in Fair Value from Continuing and New Contracts, Net (61) 4,304 Settlements — (5,035) Balance at end of period $ 4,304 $ 4,304 Three Months Ended Nine Months Ended SJI (includes SJG and all other consolidated subsidiaries): Balance at beginning of period $ 9,959 $ 16,061 Other Changes in Fair Value from Continuing and New Contracts, Net 6,046 10,331 Settlements (4,144) (14,531) Balance at end of period $ 11,861 $ 11,861 SJG: Balance at beginning of period $ 1,708 $ 4,928 Other Changes in Fair Value from Continuing and New Contracts, Net 6,533 8,241 Settlements — (4,928) Balance at end of period $ 8,241 $ 8,241 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Schedule of changes in accumulated other comprehensive loss (AOCL) | The following table summarizes the changes in SJI's AOCL for the three and nine months ended September 30, 2020 (in thousands): Postretirement Liability Adjustment Unrealized Gain (Loss) on Derivatives-Other (A) Unrealized Gain (Loss) on Available-for-Sale Securities Other Comprehensive Income (Loss) of Affiliated Companies Total Balance at July 1, 2020 $ (32,124) $ (311) $ (10) $ (97) $ (32,542) Other comprehensive income before reclassifications — — — — — Amounts reclassified from AOCL — 9 — — 9 Net current period other comprehensive income — 9 — — 9 Balance at September 30, 2020 $ (32,124) $ (302) $ (10) $ (97) $ (32,533) Postretirement Liability Adjustment Unrealized Gain (Loss) on Derivatives-Other (A) Unrealized Gain (Loss) on Available-for-Sale Securities Other Comprehensive Income (Loss) of Affiliated Companies Total Balance at January 1, 2020 $ (32,124) $ (327) $ (10) $ (97) $ (32,558) Other comprehensive income before reclassifications — — — — — Amounts reclassified from AOCL — 25 — — 25 Net current period other comprehensive income — 25 — — 25 Balance at September 30, 2020 $ (32,124) $ (302) $ (10) $ (97) $ (32,533) (A) The affected line item for these reclassifications from AOCL into the condensed consolidated statements of income (loss) is Interest Charges. These amounts are net of tax of $(3) and $(10) for the three and nine months ended September 30, 2020, respectively, for which the affected line item in the condensed consolidated statements of income (loss) is Income Taxes. |
SJG | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Schedule of changes in accumulated other comprehensive loss (AOCL) | The following table summarizes the changes in SJG's AOCL for the three and nine months ended September 30, 2020 (in thousands): Postretirement Liability Adjustment Unrealized Gain (Loss) on Derivatives-Other (A) Total Balance at July 1, 2020 $ (27,454) $ (405) $ (27,859) Other comprehensive loss before reclassifications — — — Amounts reclassified from AOCL — 9 9 Net current period other comprehensive income — 9 9 Balance at September 30, 2020 $ (27,454) $ (396) $ (27,850) Postretirement Liability Adjustment Unrealized Gain (Loss) on Derivatives-Other (A) Total Balance at January 1, 2020 $ (27,454) $ (421) $ (27,875) Other comprehensive loss before reclassifications — — — Amounts reclassified from AOCL — 25 25 Net current period other comprehensive income (loss) — 25 25 Balance at September 30, 2020 $ (27,454) $ (396) $ (27,850) (A) The affected line item for these reclassifications from AOCL into the condensed statements of income (loss) is Interest Charges. These amounts are net of tax of $(3) and $(10) for the three and nine months ended September 30, 2020, respectively, for which the affected line item in the condensed statements of income (loss) is Income Taxes. |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregated revenues from contracts with customers, by both customer type and product line, are disclosed below, by operating segment (in thousands): Three Months Ended SJG Utility Operations ETG Utility Operations ELK Utility Operations Wholesale Energy Operations Retail Electric Operations On-Site Energy Production Appliance Service Operations Corporate Services and Intersegment Total Customer Type: Residential $ 40,900 $ 20,974 $ 77 $ — $ — $ — $ 491 $ — $ 62,442 Commercial & Industrial 24,625 16,998 185 197,580 4,814 6,317 — (267) 250,252 OSS & Capacity Release 1,859 — — — — — — — 1,859 Other 381 191 23 — — — — — 595 $ 67,765 $ 38,163 $ 285 $ 197,580 $ 4,814 $ 6,317 $ 491 $ (267) $ 315,148 Product Line: Gas $ 67,765 $ 38,163 $ 285 $ 197,580 $ — $ — $ — $ (595) $ 303,198 Electric — — — — 4,814 — — (324) 4,490 Solar — — — — — 5,429 — — 5,429 Landfills — — — — — 888 — — 888 Other — — — — — — 491 652 1,143 $ 67,765 $ 38,163 $ 285 $ 197,580 $ 4,814 $ 6,317 $ 491 $ (267) $ 315,148 Nine Months Ended SJG Utility Operations ETG Utility Operations ELK Utility Operations Wholesale Energy Operations Retail Electric Operations On-Site Energy Production Appliance Service Operations Corporate Services and Intersegment Total Customer Type: Residential $ 244,114 $ 153,496 $ 2,179 $ — $ — $ — $ 1,485 $ — $ 401,274 Commercial & Industrial 100,689 74,752 2,544 456,427 17,462 15,459 — (2,862) 664,471 OSS & Capacity Release 5,931 — — — — — — — 5,931 Other 1,393 4,162 203 — — — — — 5,758 $ 352,127 $ 232,410 $ 4,926 $ 456,427 $ 17,462 $ 15,459 $ 1,485 $ (2,862) $ 1,077,434 Product Line: Gas $ 352,127 $ 232,410 $ 4,926 $ 456,427 $ — $ — $ — $ (2,252) $ 1,043,638 Electric — — — — 17,462 — — (1,986) 15,476 Solar — — — — — 8,725 — — 8,725 CHP — — — — — 3,502 — — 3,502 Landfills — — — — — 3,232 — — 3,232 Other — — — — — — 1,485 1,376 2,861 $ 352,127 $ 232,410 $ 4,926 $ 456,427 $ 17,462 $ 15,459 $ 1,485 $ (2,862) $ 1,077,434 Three Months Ended September 30, 2019 SJG Utility Operations ETG Utility Operations ELK Utility Operations Wholesale Energy Operations Retail Electric Operations On-Site Energy Production Appliance Service Operations Corporate Services and Intersegment Total Customer Type: Residential $ 31,256 $ 16,092 $ 243 $ — $ 4,205 $ — $ 514 $ — $ 52,310 Commercial & Industrial 21,164 12,799 629 158,244 10,275 11,980 — (3,092) 211,999 OSS & Capacity Release 2,234 — — — — — — — 2,234 Other 544 1,733 23 — — — — — 2,300 $ 55,198 $ 30,624 $ 895 $ 158,244 $ 14,480 $ 11,980 $ 514 $ (3,092) $ 268,843 Product Line: Gas $ 55,198 $ 30,624 $ 895 $ 158,244 $ — $ — $ — $ (1,173) $ 243,788 Electric — — — — 14,480 — — (2,184) 12,296 Solar — — — — — 3,429 — — 3,429 CHP — — — — — 7,218 — — 7,218 Landfills — — — — — 1,333 — — 1,333 Other — — — — — — 514 265 779 $ 55,198 $ 30,624 $ 895 $ 158,244 $ 14,480 $ 11,980 $ 514 $ (3,092) $ 268,843 Nine Months Ended SJG Utility Operations ETG Utility Operations ELK Utility Operations Wholesale Energy Operations Retail Electric Operations On-Site Energy Production Appliance Service Operations Corporate Services and Intersegment Total Customer Type: Residential $ 244,889 $ 143,584 $ 2,204 $ — $ 10,966 $ — $ 1,529 $ — $ 403,172 Commercial & Industrial 82,255 71,013 2,769 469,805 35,697 38,098 — (9,517) 690,120 OSS & Capacity Release 6,248 — — — — — — — 6,248 Other 1,787 5,906 127 — — — — — 7,820 $ 335,179 $ 220,503 $ 5,100 $ 469,805 $ 46,663 $ 38,098 $ 1,529 $ (9,517) $ 1,107,360 Product Line: Gas $ 335,179 $ 220,503 $ 5,100 $ 469,805 $ — $ — $ — $ (3,807) $ 1,026,780 Electric — — — — 46,663 — — (5,975) 40,688 Solar — — — — — 12,443 — — 12,443 CHP — — — — — 21,371 — — 21,371 Landfills — — — — — 4,284 — — 4,284 Other — — — — — — 1,529 265 1,794 $ 335,179 $ 220,503 $ 5,100 $ 469,805 $ 46,663 $ 38,098 $ 1,529 $ (9,517) $ 1,107,360 |
Contract with Customer, Asset and Liability | The following table provides information about SJI's and SJG's receivables (excluding SJG receivables from related parties) and unbilled revenue from contracts with customers (in thousands): Accounts Receivable (A) Unbilled Revenue (B) SJI (including SJG and all other consolidated subsidiaries): Beginning balance as of January 1, 2020 $ 253,661 $ 84,821 Ending balance as of September 30, 2020 167,534 22,712 Increase (Decrease) $ (86,127) $ (62,109) Beginning balance as of January 1, 2019 $ 337,502 $ 79,538 Ending balance as of September 30, 2019 179,108 18,714 Increase (Decrease) $ (158,394) $ (60,824) SJG: Beginning balance as of January 1, 2020 $ 84,940 $ 45,016 Ending balance as of September 30, 2020 62,447 9,985 Increase (Decrease) $ (22,493) $ (35,031) Beginning balance as of January 1, 2019 $ 101,572 $ 43,271 Ending balance as of September 30, 2019 65,511 7,831 Increase (Decrease) $ (36,061) $ (35,440) (A) Included in Accounts Receivable in the condensed consolidated balance sheets. A receivable is SJI's and SJG's right to consideration that is unconditional, as only the passage of time is required before payment is expected from the customer. |
ACQUISITIONS & BUSINESS COMBI_2
ACQUISITIONS & BUSINESS COMBINATIONS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The purchase price for the EnerConnex acquisition has been allocated, on a preliminary basis, to the assets acquired and liabilities assumed as of the acquisition date and is as follows: (in thousands) EnerConnex Cash $ 415 Accounts Receivable 249 Identifiable Intangible Assets (A) 4,500 Goodwill 4,890 Other Noncurrent Assets 100 Total assets acquired 10,154 Accounts Payable 4 Other Current Liabilities 150 Total liabilities assumed 154 Total net assets acquired $ 10,000 (A) The identifiable intangible asset balances shown in the table above are related to customer relationships acquired in the transaction, and are included in Other Noncurrent Assets on the condensed consolidated balance sheets. |
GOODWILL AND IDENTIFIABLE INT_2
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes the changes in goodwill for the nine months ended September 30, 2020 (in thousands): 2020 Beginning Balance, January 1 $ 702,070 Goodwill from EnerConnex Acquisition (see Note 17) 4,890 Ending Balance, September 30 $ 706,960 |
Schedule of Identifiable Intangible Assets | SJI's identifiable intangible assets were as follows (in thousands): As of September 30, 2020 Gross Cost Accumulated Amortization Identifiable Intangible Assets, Net Identifiable intangible assets subject to amortization: Customer Relationships $ 6,900 $ (223) $ 6,677 AMA 19,200 (11,520) 7,680 Total $ 26,100 $ (11,743) $ 14,357 As of December 31, 2019 Gross Cost Accumulated Amortization Identifiable Intangible Assets, Net Identifiable intangible assets subject to amortization: Customer Relationships $ 2,400 $ (53) $ 2,347 AMA 19,200 (7,680) 11,520 Total $ 21,600 $ (7,733) $ 13,867 |
Schedule of Future Amortization Expense Related to Identifiable Intangible Assets | As of September 30, 2020, SJI's estimated amortization expense related to identifiable intangible assets for each of the five succeeding fiscal years is as follows (in thousands): Year ended December 31, SJI 2020 (remaining three months) $ 1,395 2021 $ 5,580 2022 $ 1,740 2023 $ 460 2024 $ 460 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule operating lease maturity | The maturity of the Company’s operating lease and finance lease liabilities are as follows (in thousands): As of September 30, 2020 SJI Consolidated SJI Consolidated SJG 2020 (excluding the nine months ended September 30, 2020) $ 206 $ 36 $ 23 2021 534 145 39 2022 348 145 21 2023 190 145 19 2024 165 145 12 Thereafter 235 6,557 102 Total lease payments 1,678 7,173 216 Less imputed interest 109 4,122 28 Total lease liabilities $ 1,569 $ 3,051 $ 188 Included in the condensed consolidated balance sheet Current lease liabilities (included in Other Current Liabilities) $ 581 $ — $ 49 Long-term lease liabilities (included in Other Noncurrent Liabilities) 988 3,051 139 Total lease liabilities $ 1,569 $ 3,051 $ 188 |
Schedule of lease cost, supplemental cash flow information, and supplemental non-cash disclosures | The total operating lease costs, the components of finance lease costs, and variable lease costs for SJI were as follows (in thousands): Three months ended September 30, 2020 Nine months ended September 30, 2020 SJI (includes SJG and all other consolidated subsidiaries): Total operating lease cost $ 364 $ 983 Finance Lease cost: Amortization of ROU assets 10 10 Interest expense 18 18 Variable lease cost 190 491 Total lease cost $ 582 $ 1,502 Three months ended September 30, 2019 Nine months ended September 30, 2019 SJI (includes SJG and all other consolidated subsidiaries): Total operating lease cost $ 717 $ 2,317 Variable lease cost 270 1,070 Total lease cost $ 987 $ 3,387 The supplemental cash flow information related to leases for SJI (including SJG and all other consolidated subsidiaries) were as follows (in thousands): Three months ended September 30, 2020 Nine months ended September 30, 2020 Operating cash flows from operating leases $ 250 $ 980 Three months ended September 30, 2019 Nine months ended September 30, 2019 Operating cash flows from operating leases $ 430 $ 1,230 The following table represents the weighted-average remaining lease term and weighted-average discount rate: Weighted average remaining lease term September 30, 2020 SJI (includes SJG and all other consolidated subsidiaries): Operating lease 4.6 years Finance lease 34.9 years SJG: Operating lease 9.5 years Weighted average discount rate September 30, 2020 SJI (includes SJG and all other consolidated subsidiaries): Operating lease 3.1% Finance lease 5.0% SJG: Operating lease 3.0% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | Aug. 07, 2020USD ($) | Jul. 31, 2020USD ($) | Feb. 18, 2020USD ($) | Aug. 31, 2019USD ($) | Jul. 01, 2018USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($)projectshares | Aug. 21, 2020USD ($) | Sep. 30, 2020USD ($)projectcountyshares | Mar. 31, 2020project | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)countyprojectacquisitionshares | Sep. 30, 2019USD ($)project | Dec. 31, 2020project | Aug. 12, 2020 | Aug. 06, 2020 |
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||
Number of businesses acquired | acquisition | 4 | |||||||||||||||
Income tax credits | $ 12,000,000 | $ 0 | $ 12,000,000 | $ 0 | ||||||||||||
Number of projects sold | project | 1 | 1 | 7 | |||||||||||||
Number of solar energy projects expected to be sold | project | 3 | 2 | 2 | |||||||||||||
Impairment charge | $ 0 | 1,300,000 | $ 0 | $ 1,300,000 | ||||||||||||
Shares of treasury stock held (in shares) | shares | 231,514 | 251,524 | 251,524 | |||||||||||||
Payments to purchase asset management agreement | $ 11,300,000 | |||||||||||||||
Minimum annual fee for long-term asset management agreement | 4,250,000 | |||||||||||||||
Intangible asset | 19,200,000 | $ 11,500,000 | $ 7,700,000 | $ 7,700,000 | ||||||||||||
Profit sharing liabilities | $ 17,546,000 | 10,600,000 | 7,500,000 | 7,500,000 | ||||||||||||
Current portion of long-term debt | 467,909,000 | 142,809,000 | 142,809,000 | |||||||||||||
Notes payable | 848,700,000 | 597,000,000 | 597,000,000 | |||||||||||||
Debt refinanced | 600,000,000 | 600,000,000 | ||||||||||||||
EnerConnex, LLC | ||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||
Remaining equity interest acquired (as a percent) | 75.00% | |||||||||||||||
Equity interest in acquiree previously held (as a percent) | 25.00% | |||||||||||||||
Consideration paid | $ 7,500,000 | |||||||||||||||
Solar Energy Projects Acquisition | ||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||
Consideration paid | $ 3,800,000 | |||||||||||||||
AEP | ||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||
Consideration paid | $ 4,000,000 | |||||||||||||||
Assets held for sale | ||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||
Consideration received on sales or projects | 7,200,000 | 24,300,000 | ||||||||||||||
Assets held for sale | MTF and ACB | ||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||
Consideration received on sales or projects | 100,000,000 | |||||||||||||||
Assets held for sale | Solar Assets | ||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||
Nonutility property and equipment held for sale | $ 20,000,000 | $ 20,000,000 | ||||||||||||||
Disposed of by sale | MTF and ACB | ||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||
Consideration received on sales or projects | $ 97,000,000 | |||||||||||||||
Disposed of by sale | ELK Utility Operations | ||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||
Consideration received on sales or projects | $ 15,600,000 | |||||||||||||||
SJG | ||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||
Number of counties in which entity operates | county | 7 | 7 | ||||||||||||||
Impairment charge | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||||||
Refunds received from third party supplier | $ 10,000,000 | |||||||||||||||
Current portion of long-term debt | 417,909,000 | 52,809,000 | 52,809,000 | |||||||||||||
Notes payable | $ 171,300,000 | 107,900,000 | 107,900,000 | |||||||||||||
Debt refinanced | 400,000,000 | 400,000,000 | ||||||||||||||
SJG | VSIP | ||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||
VSIP total costs | 600,000 | |||||||||||||||
Catamaran | Annadale | ||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||
Ownership interest (as a percent) | 100.00% | |||||||||||||||
Marina | Annadale | Annadale | ||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||
Ownership by parent (as a percent) | 93.00% | |||||||||||||||
Marina | Annadale | ||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||
Investment in joint venture | $ 4,200,000 | 4,200,000 | ||||||||||||||
South Jersey Resources Group, LLC | ||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||
Refunds received from third party supplier | 11,200,000 | |||||||||||||||
Refunds received from third party supplier, amount remaining after remittance | 3,900,000 | |||||||||||||||
South Jersey Resources Group, LLC | Operating Revenues | ||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||
Refunds received from third party supplier, amount remaining after remittance | 3,800,000 | |||||||||||||||
South Jersey Resources Group, LLC | Other Income | ||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||
Refunds received from third party supplier, amount remaining after remittance | $ 100,000 | |||||||||||||||
ETG Utility Operations | ||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||
Number of counties in which entity operates | county | 7 | 7 | ||||||||||||||
Minimum annual fee for long-term asset management agreement | $ 4,250,000 | |||||||||||||||
ETG Utility Operations | South Jersey Resources Group, LLC | ||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||
Refunds received from third party supplier, amount remitted | $ 7,100,000 | |||||||||||||||
Forecast | ||||||||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||||||||
Number of solar energy projects expected to be sold | project | 2 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Asset Retirement Obligations Activity (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |
AROs, Beginning Balance | $ 263,950 |
Accretion | 7,129 |
Additions | 3,266 |
Settlements | (6,195) |
Revisions in Estimated Cash Flows | (72,432) |
AROs, Ending Balance | 195,718 |
SJG | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |
AROs, Beginning Balance | 96,509 |
Accretion | 3,078 |
Additions | 1,161 |
Settlements | (1,142) |
Revisions in Estimated Cash Flows | (18,751) |
AROs, Ending Balance | $ 80,855 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Asset Management Agreement (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Jul. 01, 2018 |
Accounting Policies [Abstract] | |||
Natural Gas in Storage | $ 9,685 | ||
Intangible Asset | $ 7,700 | $ 11,500 | 19,200 |
Profit Sharing - Other Liabilities | $ (7,500) | $ (10,600) | (17,546) |
Total Consideration | $ 11,339 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLAN (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Number of options granted (in shares) | 0 | 0 |
Number of options outstanding (in shares) | 0 | 0 |
Return on equity award threshold | 3 years | |
Expected volatility, measurement period | 3 years | |
Previously recorded cost, reversal | $ 1.3 | |
Unrecognized compensation cost of awards granted under the plan | $ 7 | |
Weighted average period over which unrecognized compensation cost is to be recognized. | 1 year 9 months 18 days | |
Officers & Key Employees | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Vesting period of shares | 3 years | |
Number of shares awarded | 72,470 | 125,288 |
Fair value of shares awarded | $ 2.1 | $ 3.7 |
Directors | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Number of shares granted (in shares) | 30,961 | 26,416 |
Vesting period of shares | 12 months | |
Director shares vested | 100.00% | |
Fair value of shares awarded | $ 0.8 | $ 0.8 |
Stock Appreciation Rights (SARs) | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Number of shares granted (in shares) | 0 | 0 |
Restricted Stock | Officers & Key Employees | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Number of shares granted (in shares) | 225,278 | 184,791 |
Restricted Stock | Officers & Key Employees | Minimum | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Percentage of actual amount of shares that ultimately vest of original share units granted | 0.00% | |
Restricted Stock | Officers & Key Employees | Maximum | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Percentage of actual amount of shares that ultimately vest of original share units granted | 200.00% | |
Restricted Stock | Directors | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Number of shares granted (in shares) | 38,456 | 30,961 |
Restricted Stock | South Jersey Gas Company's Officers and Key Employees | SJG | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Number of shares awarded | 7,902 | 6,095 |
Time-based Restricted Stock | Year one | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Return on equity award threshold | 1 year | |
Time-based Restricted Stock | Year two | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Return on equity award threshold | 2 years | |
Time-based Restricted Stock | Year three | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Return on equity award threshold | 3 years | |
Time-based Restricted Stock | Officers & Key Employees | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Number of shares granted (in shares) | 105,451 | 88,550 |
Vesting period of shares | 3 years | |
Payout limit of vested shares | 100.00% | |
Time-based Restricted Stock | Officers & Key Employees | Year one | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Percentage of shares vested | 33.33% | |
Time-based Restricted Stock | Officers & Key Employees | Year two | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Percentage of shares vested | 33.33% | |
Time-based Restricted Stock | Officers & Key Employees | Year three | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Percentage of shares vested | 33.33% | |
Performance-based Restricted Shares | Officers & Key Employees | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Number of shares granted (in shares) | 119,827 | 96,241 |
Vesting period of shares | 3 years | |
Performance Shares | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
Vesting period of shares | 3 years |
STOCK-BASED COMPENSATION PLAN -
STOCK-BASED COMPENSATION PLAN - Nonvested Restricted Stock Awards and Fair Value Assumptions (Details) | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
2018 - TSR | Officers & Key Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares outstanding (in shares) | shares | 48,304 |
Weighted average fair value nonvested shares - ending balance (in dollars per share) | $ / shares | $ 31.05 |
Expected Volatility | 21.90% |
Risk-Free Interest Rate | 2.00% |
2018 - CEGR, Time | Officers & Key Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares outstanding (in shares) | shares | 63,389 |
Weighted average fair value nonvested shares - ending balance (in dollars per share) | $ / shares | $ 31.23 |
2019 - TSR | Officers & Key Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares outstanding (in shares) | shares | 36,642 |
Weighted average fair value nonvested shares - ending balance (in dollars per share) | $ / shares | $ 32.88 |
Expected Volatility | 23.20% |
Risk-Free Interest Rate | 2.40% |
2019 - CEGR, Time | Officers & Key Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares outstanding (in shares) | shares | 101,982 |
Weighted average fair value nonvested shares - ending balance (in dollars per share) | $ / shares | $ 31.38 |
2020 - TSR | Officers & Key Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares outstanding (in shares) | shares | 46,752 |
Weighted average fair value nonvested shares - ending balance (in dollars per share) | $ / shares | $ 25.51 |
Expected Volatility | 34.80% |
Risk-Free Interest Rate | 0.21% |
2020 - CEGR, Time | Officers & Key Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares outstanding (in shares) | shares | 178,526 |
Weighted average fair value nonvested shares - ending balance (in dollars per share) | $ / shares | $ 25.19 |
2020 | Directors | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares outstanding (in shares) | shares | 38,456 |
Weighted average fair value nonvested shares - ending balance (in dollars per share) | $ / shares | $ 32.07 |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLAN - Schedule of Stock Based Compensation Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total Cost | $ 1,522 | $ 1,280 | $ 4,570 | $ 3,968 |
Capitalized | (12) | (119) | (35) | (153) |
Net Expense | 1,510 | 1,161 | 4,535 | 3,815 |
Officers & Key Employees | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total Cost | 1,220 | 1,071 | 3,671 | 3,355 |
Directors | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total Cost | $ 302 | $ 209 | $ 899 | $ 613 |
STOCK-BASED COMPENSATION PLAN_4
STOCK-BASED COMPENSATION PLAN - Restricted Stock Activity (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Restricted Stock | ||
Weighted Average Fair Value | ||
Weighted average fair value nonvested shares-beginning balance (in dollars per share) | $ 31.50 | |
Weighted average fair value nonvested shares - granted during the period (in dollars per share) | 26.32 | |
Weighted average fair value nonvested shares - cancelled/forfeited during the period (in dollars per share) | 31.48 | |
Weighted average fair value nonvested shares - vested during the period (in dollars per share) | 31.49 | |
Weighted average fair value nonvested shares - ending balance (in dollars per share) | $ 28.84 | |
Officers & Key Employees | ||
Weighted Average Fair Value | ||
Vesting period of shares | 3 years | |
Officers & Key Employees | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Nonvested Shares Outstanding, Beginning Balance | 402,146 | |
Granted (in shares) | 225,278 | 184,791 |
Cancelled/Forfeited (in shares) | (14,867) | |
Vested (in shares) | (136,963) | |
Nonvested Shares Outstanding, Ending Balance | 475,594 | |
Directors | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Granted (in shares) | 30,961 | 26,416 |
Weighted Average Fair Value | ||
Vesting period of shares | 12 months | |
Directors | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Nonvested Shares Outstanding, Beginning Balance | 30,961 | |
Granted (in shares) | 38,456 | 30,961 |
Cancelled/Forfeited (in shares) | 0 | |
Vested (in shares) | (30,961) | |
Nonvested Shares Outstanding, Ending Balance | 38,456 |
AFFILIATIONS, DISCONTINUED OP_3
AFFILIATIONS, DISCONTINUED OPERATIONS AND RELATED-PARTY TRANSACTIONS - Narrative (Details) - USD ($) | Feb. 20, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | |||||||
Investment | $ 87,087,000 | $ 92,945,000 | $ 92,945,000 | $ 87,087,000 | |||
Investments in unconsolidated affiliates | 1,200,000 | $ 6,000,000 | |||||
Notes receivable - affiliate | 18,100,000 | 14,900,000 | 14,900,000 | 18,100,000 | |||
Net asset - included in investment in affiliates and other noncurrent liabilities | $ 87,100,000 | $ 92,900,000 | 92,900,000 | 87,100,000 | |||
Combined equity contributions and the notes receivable - affiliate | $ 107,800,000 | 105,200,000 | |||||
PennEast Pipeline Company, LLC (PennEast) | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity interest (as a percent) | 20.00% | 20.00% | |||||
Contract extension to construct pipeline (in years) | 2 years | 2 years | |||||
Investment | $ 82,700,000 | $ 89,400,000 | $ 89,400,000 | 82,700,000 | |||
Energenic US LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity interest (as a percent) | 50.00% | 50.00% | |||||
Investment | $ 0 | $ 0 | |||||
Millennium Account Services, LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity interest (as a percent) | 50.00% | 50.00% | |||||
Potato Creek, LLC (Potato Creek) | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity interest (as a percent) | 30.00% | 30.00% | |||||
Secured Debt | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Notes receivable - affiliate | $ 13,100,000 | $ 12,400,000 | $ 12,400,000 | $ 13,100,000 | |||
Interest rate | 7.50% | 7.50% | 7.50% | 7.50% | |||
Unsecured promissory notes | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Notes receivable - affiliate | $ 5,000,000 | $ 2,500,000 | $ 2,500,000 | $ 5,000,000 | |||
South Jersey Energy Company | EnergyMark | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity interest (as a percent) | 33.00% | 33.00% | |||||
SJRG | EnergyMark | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Total operating revenue, affiliates | $ 1,800,000 | $ 3,400,000 | $ 10,400,000 | $ 22,600,000 |
AFFILIATIONS, DISCONTINUED OP_4
AFFILIATIONS, DISCONTINUED OPERATIONS AND RELATED-PARTY TRANSACTIONS - Summarized Operating Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Gain (Loss) before Income Taxes: [Abstract] | ||||
Income Tax Benefits | $ 15 | $ 16 | $ 47 | $ 56 |
Loss from Discontinued Operations — Net | $ (58) | $ (59) | $ (178) | $ (216) |
Earnings Per Common Share from | ||||
Basic and Diluted (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Sand Mining | ||||
Gain (Loss) before Income Taxes: [Abstract] | ||||
Loss before Income Taxes: | $ 3 | $ (16) | $ (32) | $ (60) |
Fuel Oil | ||||
Gain (Loss) before Income Taxes: [Abstract] | ||||
Loss before Income Taxes: | $ (76) | $ (59) | $ (193) | $ (212) |
AFFILIATIONS, DISCONTINUED OP_5
AFFILIATIONS, DISCONTINUED OPERATIONS AND RELATED-PARTY TRANSACTIONS - Related Party Transactions (Details) - SJG - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Regulated Operating Revenue [Abstract] | ||||
Total Operating Revenue/Affiliates | $ 615 | $ 1,194 | $ 2,311 | $ 3,868 |
Operating Expenses [Abstract] | ||||
Total Operations Expense/Affiliates | 7,919 | 6,851 | 23,875 | 26,386 |
SJRG | ||||
Regulated Operating Revenue [Abstract] | ||||
Total Operating Revenue/Affiliates | 595 | 1,092 | 2,192 | 3,518 |
SJRG* | 1,808 | 2,326 | 3,404 | 8,908 |
Marina | ||||
Regulated Operating Revenue [Abstract] | ||||
Total Operating Revenue/Affiliates | 0 | 82 | 60 | 290 |
SJI | ||||
Operating Expenses [Abstract] | ||||
Total Operations Expense/Affiliates | 5,909 | 5,087 | 17,463 | 15,507 |
SJIU | ||||
Operating Expenses [Abstract] | ||||
Total Operations Expense/Affiliates | 743 | 630 | 2,616 | 1,971 |
Millennium | ||||
Operating Expenses [Abstract] | ||||
Total Operations Expense/Affiliates | 814 | 794 | 2,461 | 2,118 |
Other | ||||
Regulated Operating Revenue [Abstract] | ||||
Total Operating Revenue/Affiliates | 20 | 20 | 59 | 60 |
Operating Expenses [Abstract] | ||||
Total Operations Expense/Affiliates | $ 453 | $ 340 | $ 1,335 | $ 6,790 |
COMMON STOCK - Summary of Share
COMMON STOCK - Summary of Shares Issued and Outstanding (Details) | 9 Months Ended |
Sep. 30, 2020shares | |
Common Stock [Roll Forward] | |
Beginning balance (in shares) | 92,394,155 |
New Issuances During the Period: | |
ATM Equity Offering (in shares) | 8,122,283 |
Stock-Based Compensation Plan (in shares) | 71,474 |
Ending balance (in shares) | 100,587,912 |
COMMON STOCK - Narrative (Detai
COMMON STOCK - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Apr. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Par value of common stock (in dollars per share) | $ 1.25 | $ 1.25 | ||||||
Shares of common stock outstanding (in shares) | 100,587,912 | 100,587,912 | 92,394,155 | |||||
Quarterly contract adjustment payments, percent | 3.55% | |||||||
Incremental shares included in diluted EPS calculation (in shares) | 141,062 | 129,979 | 124,705 | 116,904 | ||||
Corporate Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares issued (in shares) | 5,750,000 | |||||||
Corporate Unit, stated value per share (in dollars per share) | $ 50 | |||||||
ATM Equity Offering Sales Agreement | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Price per share (in dollars per share) | $ 1.25 | $ 24.62 | $ 24.62 | |||||
Consideration received | $ 198,000,000 | $ 200,000,000 | ||||||
Number of shares issued (in shares) | 8,122,283 | |||||||
Over-Allotment Option | Corporate Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares issued (in shares) | 750,000 | |||||||
Series 2018A, Due 2031 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Interest rate | 3.70% | |||||||
Series 2018A, Due 2031 | Corporate Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Interest in notes issued, percent | 5.00% | |||||||
Convertible | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Interest expense, amortization of debt discount and issuance costs | $ 100,000 | $ 100,000 | $ 400,000 | $ 400,000 | ||||
Interest expense, coupon | $ 2,700,000 | 2,700,000 | $ 8,000,000 | 8,000,000 | ||||
Effective interest rate (as a percent) | 4.00% | 4.00% | ||||||
SJG | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Par value of common stock (in dollars per share) | $ 2.50 | $ 2.50 | ||||||
Shares of common stock outstanding (in shares) | 2,339,139 | 2,339,139 | ||||||
Equity infusion | $ 100,000,000 | $ 0 | $ 109,500,000 | $ 0 |
COMMON STOCK - Summary of Conve
COMMON STOCK - Summary of Convertible Units (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Net carrying amount | $ 2,674,441 | $ 2,537,995 |
Convertible | ||
Debt Instrument [Line Items] | ||
Principal | 287,500 | 287,500 |
Unamortized debt discount and issuance costs | 7,323 | 7,737 |
Net carrying amount | 280,177 | 279,763 |
Carrying amount of the equity component | $ 0 | $ 0 |
FINANCIAL INSTRUMENTS - Cash, C
FINANCIAL INSTRUMENTS - Cash, Cash Equivalents and Restricted Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and Cash Equivalents | $ 10,103 | $ 6,417 | ||
Restricted Investments | 199 | 21,964 | ||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | 10,302 | 28,381 | $ 20,873 | $ 31,679 |
SJG | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and Cash Equivalents | 1,528 | 2,678 | ||
Restricted Investments | 199 | 4,073 | ||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 1,727 | $ 6,751 | $ 3,431 | $ 3,262 |
FINANCIAL INSTRUMENTS - Schedul
FINANCIAL INSTRUMENTS - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | $ 30,410 | $ 19,829 |
Provision for expected credit losses | 5,416 | 19,994 |
Recoveries of accounts previously written off | 126 | 688 |
Uncollectible accounts written off | (2,935) | (7,494) |
Balance at end of period | 33,017 | 33,017 |
SJG | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | 14,472 | 14,032 |
Provision for expected credit losses | 4,783 | 8,255 |
Recoveries of accounts previously written off | 4 | 295 |
Uncollectible accounts written off | (2,422) | (5,745) |
Balance at end of period | $ 16,837 | $ 16,837 |
FINANCIAL INSTRUMENTS - Narrati
FINANCIAL INSTRUMENTS - Narrative (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2020USD ($)counterparty | Dec. 31, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of counter parties | counterparty | 2 | |
ETG Utility Operations | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Deferred incremental costs, CARES Act | $ 9.3 | |
Supplier Concentration Risk | Derivatives Energy Related Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current and non current derivatives | $ 5.7 | |
Percentage of current and non current derivatives | 12.20% | |
SJG | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Deferred incremental costs, CARES Act | $ 3.8 | |
SJG | Financing Receivable | Level 2 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying amount of loans, net of unamortized discounts | 2.8 | $ 3.7 |
Imputed interest of loans | 0.4 | 0.5 |
Loans for upgrading equipment for energy efficiency | 42.8 | 33.5 |
Financing Receivable, after Allowance for Credit Loss, Current | 5.9 | 4.6 |
Loans for upgrading equipment for energy efficiency, noncurrent | $ 36.9 | $ 28.9 |
SJG | Financing Receivable | Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Initial term of note (in years) | 5 years | |
SJG | Financing Receivable | Minimum | Level 2 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans for upgrading equipment for energy efficiency, term (in years) | 2 years | |
SJG | Financing Receivable | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Initial term of note (in years) | 10 years | |
SJG | Financing Receivable | Maximum | Level 2 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans for upgrading equipment for energy efficiency, term (in years) | 10 years |
FINANCIAL INSTRUMENTS - Sched_2
FINANCIAL INSTRUMENTS - Schedule of Estimated Fair Values and Carrying Values of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Estimated fair values of long-term debt | $ 2,836,407 | $ 2,734,745 |
Carrying amounts of long-term debt, including current maturities | 2,674,441 | 2,537,995 |
Unamortized debt issuance costs | 29,168 | 25,547 |
Unamortized debt discounts | 5,246 | 5,313 |
SJG | ||
Debt Instrument [Line Items] | ||
Estimated fair values of long-term debt | 1,035,948 | 915,248 |
Carrying amounts of long-term debt, including current maturities | 952,116 | 965,100 |
Unamortized debt issuance costs | $ 9,239 | $ 6,284 |
SEGMENTS OF BUSINESS (Details)
SEGMENTS OF BUSINESS (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020USD ($)project | Mar. 31, 2020project | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)project | Sep. 30, 2019USD ($)project | Dec. 31, 2019USD ($)project | |
Segment Reporting [Abstract] | ||||||
Number of solar energy projects expected to be sold | project | 2 | 2 | 3 | |||
Number of projects sold | project | 1 | 1 | 7 | |||
Segment Reporting Information [Line Items] | ||||||
Total Operating Revenues | $ 261,549 | $ 261,203 | $ 1,055,625 | $ 1,165,435 | ||
Total Operating (Loss) Income | (8,494) | (19,025) | 177,459 | 125,348 | ||
Total Depreciation and Amortization | 37,516 | 33,547 | 110,724 | 98,582 | ||
Total Interest Charges | 27,762 | 28,857 | 88,887 | 85,944 | ||
Total Income Taxes | (19,467) | (10,925) | 13,725 | 9,378 | ||
Total Property Additions | 179,657 | 124,338 | 396,933 | 341,259 | ||
Total Identifiable Assets | 6,308,923 | 6,308,923 | $ 6,365,340 | |||
Discontinued Operations | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Identifiable Assets | 1,790 | 1,790 | 1,766 | |||
Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Operating Revenues | 273,304 | 274,547 | 1,096,603 | 1,206,390 | ||
Total Interest Charges | 29,115 | 32,112 | 94,317 | 96,393 | ||
Operating Segments | Corporate and Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Operating Revenues | 11,488 | 10,252 | 38,116 | 31,438 | ||
Total Operating (Loss) Income | (3,844) | (125) | (3,870) | (5,680) | ||
Total Depreciation and Amortization | 1,267 | 1,094 | 3,704 | 4,092 | ||
Total Interest Charges | 12,490 | 14,433 | 43,332 | 44,496 | ||
Total Income Taxes | (3,187) | (3,299) | (10,982) | (11,715) | ||
Total Property Additions | 715 | 368 | 2,076 | 954 | ||
Total Identifiable Assets | 249,943 | 249,943 | 403,170 | |||
Operating Segments | Midstream | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Interest Charges | 677 | 573 | 1,837 | 1,672 | ||
Total Income Taxes | (58) | (18) | (174) | (83) | ||
Total Property Additions | 29 | 16 | 115 | 35 | ||
Total Identifiable Assets | 90,459 | 90,459 | 83,517 | |||
Operating Segments | SJI Utilities | SJG Utility Operations | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Operating Revenues | 66,190 | 62,039 | 394,066 | 396,505 | ||
Total Operating (Loss) Income | (6,080) | (8,319) | 108,297 | 100,241 | ||
Total Depreciation and Amortization | 25,762 | 23,564 | 76,216 | 69,349 | ||
Total Interest Charges | 8,271 | 7,840 | 23,832 | 23,584 | ||
Total Income Taxes | (3,293) | (3,747) | 23,157 | 20,620 | ||
Total Property Additions | 73,481 | 73,059 | 181,440 | 195,621 | ||
Total Identifiable Assets | 3,383,449 | 3,383,449 | 3,348,555 | |||
Operating Segments | SJI Utilities | ETG Utility Operations | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Operating Revenues | 37,503 | 30,619 | 239,503 | 215,647 | ||
Total Operating (Loss) Income | (3,163) | (5,112) | 57,274 | 41,088 | ||
Total Depreciation and Amortization | 10,391 | 7,461 | 30,370 | 20,932 | ||
Total Interest Charges | 7,398 | 7,165 | 22,321 | 20,106 | ||
Total Income Taxes | (2,475) | (2,065) | 7,869 | 4,028 | ||
Total Property Additions | 45,452 | 50,426 | 149,578 | 142,388 | ||
Total Identifiable Assets | 2,482,155 | 2,482,155 | 2,458,846 | |||
Operating Segments | SJI Utilities | ELK Utility Operations | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Operating Revenues | 285 | 892 | 4,792 | 5,210 | ||
Total Operating (Loss) Income | (374) | (197) | 373 | 401 | ||
Total Depreciation and Amortization | 52 | 158 | 354 | 383 | ||
Total Interest Charges | 2 | 4 | 21 | 15 | ||
Total Income Taxes | (4) | (54) | 186 | 100 | ||
Total Property Additions | 112 | 468 | 971 | 2,096 | ||
Total Identifiable Assets | 0 | 0 | 21,723 | |||
Operating Segments | SJI Utilities | Subtotal SJI Utilities | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Operating Revenues | 103,978 | 93,550 | 638,361 | 617,362 | ||
Total Operating (Loss) Income | (9,617) | (13,628) | 165,944 | 141,730 | ||
Total Depreciation and Amortization | 36,205 | 31,183 | 106,940 | 90,664 | ||
Total Interest Charges | 15,671 | 15,009 | 46,174 | 43,705 | ||
Total Income Taxes | (5,772) | (5,866) | 31,212 | 24,748 | ||
Total Property Additions | 119,045 | 123,953 | 331,989 | 340,105 | ||
Total Identifiable Assets | 5,865,604 | 5,865,604 | 5,829,124 | |||
Operating Segments | Energy Group | Wholesale Energy Operations | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Operating Revenues | 143,338 | 135,856 | 373,308 | 452,346 | ||
Total Operating (Loss) Income | 2,768 | (8,371) | 16,272 | (13,263) | ||
Total Depreciation and Amortization | 14 | 22 | 44 | 70 | ||
Total Income Taxes | 858 | (2,130) | 4,583 | (3,088) | ||
Total Property Additions | 2 | 1 | 2 | 1 | ||
Total Identifiable Assets | 126,973 | 126,973 | 195,576 | |||
Operating Segments | Energy Group | Retail Electric Operations | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Operating Revenues | 7,692 | 22,395 | 29,874 | 65,617 | ||
Total Operating (Loss) Income | (842) | (3) | (2,512) | (3,972) | ||
Total Income Taxes | (233) | 4 | (478) | (814) | ||
Total Identifiable Assets | 21,176 | 21,176 | 30,351 | |||
Operating Segments | Energy Group | Subtotal Energy Group | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Operating Revenues | 151,030 | 158,251 | 403,182 | 517,963 | ||
Total Operating (Loss) Income | 1,926 | (8,374) | 13,760 | (17,235) | ||
Total Depreciation and Amortization | 14 | 22 | 44 | 70 | ||
Total Income Taxes | 625 | (2,126) | 4,105 | (3,902) | ||
Total Property Additions | 2 | 1 | 2 | 1 | ||
Total Identifiable Assets | 148,149 | 148,149 | 225,927 | |||
Operating Segments | Energy Services | On-Site Energy Production | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Operating Revenues | 6,317 | 11,980 | 15,459 | 38,098 | ||
Total Operating (Loss) Income | 2,455 | 2,634 | 143 | 5,049 | ||
Total Depreciation and Amortization | 30 | 1,248 | 36 | 3,756 | ||
Total Interest Charges | 277 | 2,097 | 2,974 | 6,520 | ||
Total Income Taxes | (11,191) | 242 | (10,897) | (115) | ||
Total Property Additions | 59,866 | 0 | 62,751 | 164 | ||
Total Identifiable Assets | 113,050 | 113,050 | 154,021 | |||
Operating Segments | Energy Services | Appliance Service Operations | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Operating Revenues | 491 | 514 | 1,485 | 1,529 | ||
Total Operating (Loss) Income | 586 | 468 | 1,482 | 1,484 | ||
Total Income Taxes | 116 | 142 | 461 | 445 | ||
Operating Segments | Energy Services | Subtotal Energy Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Operating Revenues | 6,808 | 12,494 | 16,944 | 39,627 | ||
Total Operating (Loss) Income | 3,041 | 3,102 | 1,625 | 6,533 | ||
Total Depreciation and Amortization | 30 | 1,248 | 36 | 3,756 | ||
Total Income Taxes | (11,075) | 384 | (10,436) | 330 | ||
Total Property Additions | 59,866 | 0 | 62,751 | 164 | ||
Total Identifiable Assets | 113,050 | 113,050 | 154,021 | |||
Intersegment | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Operating Revenues | (11,755) | (13,344) | (40,978) | (40,955) | ||
Total Interest Charges | (1,353) | $ (3,255) | (5,430) | $ (10,449) | ||
Total Identifiable Assets | $ (160,072) | $ (160,072) | $ (332,185) |
RATES AND REGULATORY ACTIONS (D
RATES AND REGULATORY ACTIONS (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020 | Jul. 31, 2020 | Jun. 30, 2020 | May 31, 2020 | Mar. 31, 2020 | Sep. 30, 2020 | Feb. 29, 2020 | Dec. 31, 2019 | |
ETG Utility Operations | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Regulatory liability | $ 175,637 | $ 175,637 | $ 168,436 | |||||
Regulatory assets | 173,654 | 173,654 | 169,231 | |||||
ETG Utility Operations | Other Regulatory Assets | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Regulatory assets | 18,000 | 18,000 | 9,004 | |||||
ETG Utility Operations | Annual BGSS Filing | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Requested revenue increase (decrease) | $ (21,100) | |||||||
ETG Utility Operations | Annual USF Petition | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Requested revenue increase (decrease) | (300) | |||||||
SJG | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Regulatory liability | 253,302 | 253,302 | 274,482 | |||||
Regulatory assets | 486,070 | 486,070 | 496,177 | |||||
Public utilities, property, plant and equipment | 2,707,480 | 2,707,480 | 2,596,102 | |||||
SJG | Other Regulatory Assets | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Regulatory assets | 25,889 | 25,889 | $ 10,678 | |||||
Increase (decrease) in regulatory assets | 10,100 | |||||||
SJG | Annual BGSS Filing | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Approved rate increase (decrease) | $ (59,400) | |||||||
Recovery term (in years) | 2 years | |||||||
SJG | Annual BGSS Filing | Pricing dispute, long-term gas supply contract | Settled Litigation | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Amount paid to third party supplier | $ 22,900 | |||||||
SJG | Annual CIP Filing | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Approved rate increase (decrease) | 27,400 | |||||||
SJG | Annual USF Petition | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Approved rate increase (decrease) | (300) | |||||||
New Jersey Board of Public Utilities | ETG Utility Operations | IIP Investments | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Requested revenue increase (decrease) | $ 6,800 | |||||||
Public utilities, property, plant and equipment | 63,300 | |||||||
New Jersey Board of Public Utilities | SJG | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Approved rate increase (decrease) | $ 39,500 | |||||||
Approved rate of return on rate base, percentage | 6.90% | |||||||
Approved return on common equity, percentage | 9.60% | |||||||
Approved common equity component, percentage | 54.00% | |||||||
Amortization period (in years) | 5 years | |||||||
New Jersey Board of Public Utilities | SJG | Other Regulatory Assets | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Increase (decrease) in regulatory assets | $ 10,100 | |||||||
New Jersey Board of Public Utilities | SJG | AIRP II Investments | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Public utilities, property, plant and equipment | 58,800 | 58,800 | ||||||
New Jersey Board of Public Utilities | SJG | SHARP II Investments | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Public utilities, property, plant and equipment | 33,300 | 33,300 | ||||||
AIRP II | New Jersey Board of Public Utilities | SJG | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Approved rate increase (decrease) | 6,400 | |||||||
SHARP II | New Jersey Board of Public Utilities | SJG | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Approved rate increase (decrease) | 3,700 | |||||||
Stipulation of Settlement | SJG | Protected Excess Deferred Income Tax | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Net regulatory liability | $ 149,400 | |||||||
Regulatory liability | 181,000 | |||||||
Regulatory assets | 31,600 | |||||||
Stipulation of Settlement | SJG | Unprotected Excess Deferred Income Tax | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Credits due to customers under conditions of approval | $ 44,700 | |||||||
Public utilities, customer refund term (in years) | 5 years | |||||||
Annual EET Rate Adjustment | SJG | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Requested revenue increase (decrease) | $ 5,900 | |||||||
Annual SBC Petition | SJG | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Requested revenue increase (decrease) | 5,500 | |||||||
Annual Tax Act Rider | SJG | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Public utilities, customer refund term (in years) | 3 years | |||||||
Annual Tax Act Rider | SJG | Protected Excess Deferred Income Tax | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Approved rate increase (decrease) | 1,900 | |||||||
Annual Tax Act Rider | SJG | Unprotected Excess Deferred Income Tax | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Approved rate increase (decrease) | 14,900 | |||||||
Annual RAC Rate Adjustment | ETG Utility Operations | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Requested revenue increase (decrease) | (3,200) | $ 6,100 | ||||||
Approved rate increase (decrease) | 6,000 | |||||||
Annual EEP Rate Adjustment | ETG Utility Operations | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Requested revenue increase (decrease) | 3,700 | (200) | 1,000 | |||||
Approved rate increase (decrease) | $ 900 | |||||||
Annual EEP Rate Adjustment | SJG | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Requested revenue increase (decrease) | 6,300 | |||||||
Annual EEP Rate Adjustment | New Jersey Board of Public Utilities | ETG Utility Operations | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Public utilities, property, plant and equipment | $ 100,000 | $ 100,000 | ||||||
Public utilities budget | $ 4,200 | |||||||
Annual WNC/CEP/OSMC Rate Adjustment | ETG Utility Operations | ||||||||
Schedule of Capitalization [Line Items] | ||||||||
Requested revenue increase (decrease) | $ 8,500 |
REGULATORY ASSETS AND REGULAT_3
REGULATORY ASSETS AND REGULATORY LIABILITIES - Regulatory Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
SJG | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | $ 486,070 | $ 496,177 |
SJG | Environmental Remediation Costs: Expended - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 160,828 | 156,279 |
SJG | Environmental Remediation Costs: Liability for Future Expenditures | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 102,889 | 131,262 |
SJG | Environmental Remediation Costs: Insurance Recovery Receivables | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
SJG | Deferred ARO Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 40,858 | 36,515 |
SJG | Deferred Pension Costs - Unrecognized Prior Service Cost | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
SJG | Deferred Pension and Other Postretirement Benefit Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 72,010 | 72,010 |
SJG | Deferred Gas Costs - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 19,222 | 49,469 |
SJG | CIP Receivable | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 16,242 | |
SJG | SBC Receivable | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 2,665 | 1,478 |
SJG | Deferred Interest Rate Contracts | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 10,872 | 7,856 |
SJG | EET | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 16,810 | 12,877 |
SJG | Pipeline Supplier Service Charges | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 457 | 525 |
SJG | Pipeline Integrity Cost | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 5,837 | 6,516 |
SJG | AFUDC - Equity Related Deferrals | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 11,491 | 10,712 |
SJG | Weather Normalization | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
SJG | Other Regulatory Assets | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 25,889 | 10,678 |
SJI | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 659,724 | 665,932 |
SJI | Environmental Remediation Costs: Expended - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 171,095 | 173,234 |
SJI | Environmental Remediation Costs: Liability for Future Expenditures | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 196,000 | 232,345 |
SJI | Environmental Remediation Costs: Insurance Recovery Receivables | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | (13,615) | (20,423) |
SJI | Deferred ARO Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 64,449 | 54,623 |
SJI | Deferred Pension Costs - Unrecognized Prior Service Cost | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 34,940 | 37,378 |
SJI | Deferred Pension and Other Postretirement Benefit Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 73,835 | 73,835 |
SJI | Deferred Gas Costs - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 19,222 | 55,063 |
SJI | CIP Receivable | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 16,242 | |
SJI | SBC Receivable | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 2,665 | 1,478 |
SJI | Deferred Interest Rate Contracts | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 10,872 | 7,856 |
SJI | EET | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 16,810 | 12,877 |
SJI | Pipeline Supplier Service Charges | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 457 | 525 |
SJI | Pipeline Integrity Cost | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 5,837 | 6,516 |
SJI | AFUDC - Equity Related Deferrals | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 11,491 | 10,712 |
SJI | Weather Normalization | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 5,535 | 231 |
SJI | Other Regulatory Assets | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 43,889 | 19,682 |
ETG Utility Operations | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 173,654 | 169,231 |
ETG Utility Operations | Environmental Remediation Costs: Expended - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 10,267 | 16,955 |
ETG Utility Operations | Environmental Remediation Costs: Liability for Future Expenditures | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 93,111 | 101,083 |
ETG Utility Operations | Environmental Remediation Costs: Insurance Recovery Receivables | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | (13,615) | (20,423) |
ETG Utility Operations | Deferred ARO Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 23,591 | 18,108 |
ETG Utility Operations | Deferred Pension Costs - Unrecognized Prior Service Cost | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 34,940 | 37,378 |
ETG Utility Operations | Deferred Pension and Other Postretirement Benefit Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 1,825 | 1,825 |
ETG Utility Operations | Deferred Gas Costs - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 5,301 |
ETG Utility Operations | CIP Receivable | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | |
ETG Utility Operations | SBC Receivable | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ETG Utility Operations | Deferred Interest Rate Contracts | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ETG Utility Operations | EET | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ETG Utility Operations | Pipeline Supplier Service Charges | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ETG Utility Operations | Pipeline Integrity Cost | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ETG Utility Operations | AFUDC - Equity Related Deferrals | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ETG Utility Operations | Weather Normalization | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 5,535 | 0 |
ETG Utility Operations | Other Regulatory Assets | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 18,000 | 9,004 |
ELK Utility Operations | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 524 |
ELK Utility Operations | Environmental Remediation Costs: Expended - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ELK Utility Operations | Environmental Remediation Costs: Liability for Future Expenditures | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ELK Utility Operations | Environmental Remediation Costs: Insurance Recovery Receivables | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ELK Utility Operations | Deferred ARO Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ELK Utility Operations | Deferred Pension Costs - Unrecognized Prior Service Cost | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ELK Utility Operations | Deferred Pension and Other Postretirement Benefit Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ELK Utility Operations | Deferred Gas Costs - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 293 |
ELK Utility Operations | CIP Receivable | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | |
ELK Utility Operations | SBC Receivable | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ELK Utility Operations | Deferred Interest Rate Contracts | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ELK Utility Operations | EET | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ELK Utility Operations | Pipeline Supplier Service Charges | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ELK Utility Operations | Pipeline Integrity Cost | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ELK Utility Operations | AFUDC - Equity Related Deferrals | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ELK Utility Operations | Weather Normalization | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 231 |
ELK Utility Operations | Other Regulatory Assets | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | $ 0 | $ 0 |
REGULATORY ASSETS AND REGULAT_4
REGULATORY ASSETS AND REGULATORY LIABILITIES - Narrative (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020USD ($)site | Dec. 31, 2019USD ($) | |
SJG | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | $ 486,070 | $ 496,177 |
Deferred incremental costs, CARES Act | $ 3,800 | |
SJG | Environmental Remediation | ||
Regulatory Assets [Line Items] | ||
Number of sites for environmental cleanup | site | 12 | |
Original recovery period of expenditures | 7 years | |
SJG | Environmental Remediation Costs: Insurance Recovery Receivables | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | $ 0 | 0 |
SJG | Other Regulatory Assets | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | 25,889 | 10,678 |
Increase (decrease) in regulatory assets | 10,100 | |
SJG | Judicial Ruling | Pricing dispute, long-term gas supply contract | ||
Regulatory Assets [Line Items] | ||
Amount paid to third party supplier | $ 22,900 | 22,900 |
SJG | Unprotected Excess Deferred Income Tax | ||
Regulatory Assets [Line Items] | ||
Period to refund customers | 5 years | |
ETG Utility Operations | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | $ 173,654 | 169,231 |
Deferred incremental costs, CARES Act | $ 9,300 | |
ETG Utility Operations | Environmental Remediation | ||
Regulatory Assets [Line Items] | ||
Number of sites for environmental cleanup | site | 5 | |
ETG Utility Operations | Environmental Remediation Costs: Insurance Recovery Receivables | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | $ (13,615) | (20,423) |
Increase (decrease) in regulatory assets | 6,800 | |
ETG Utility Operations | Other Regulatory Assets | ||
Regulatory Assets [Line Items] | ||
Regulatory assets | $ 18,000 | $ 9,004 |
REGULATORY ASSETS AND REGULAT_5
REGULATORY ASSETS AND REGULATORY LIABILITIES - Regulatory Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
SJG | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | $ 253,302 | $ 274,482 |
SJG | Excess Plant Removal Costs | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 12,849 | 16,333 |
SJG | Excess Deferred Taxes | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 240,453 | 251,355 |
SJG | Deferred Revenues - Net | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 0 | 0 |
SJG | CIP Payable | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 6,794 | |
SJG | Weather Normalization | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 0 | |
SJG | Amounts to be Refunded to Customers | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 0 | 0 |
SJG | Other Regulatory Liabilities | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 0 | 0 |
SJI | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 428,939 | 442,918 |
SJI | Excess Plant Removal Costs | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 50,497 | 52,676 |
SJI | Excess Deferred Taxes | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 355,292 | 369,050 |
SJI | Deferred Revenues - Net | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 15,106 | 52 |
SJI | CIP Payable | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 6,794 | |
SJI | Weather Normalization | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 2,684 | |
SJI | Amounts to be Refunded to Customers | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 7,455 | 10,625 |
SJI | Other Regulatory Liabilities | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 589 | 1,037 |
ETG Utility Operations | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 175,637 | 168,436 |
ETG Utility Operations | Excess Plant Removal Costs | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 37,648 | 36,343 |
ETG Utility Operations | Excess Deferred Taxes | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 114,839 | 117,695 |
ETG Utility Operations | Deferred Revenues - Net | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 15,106 | 52 |
ETG Utility Operations | CIP Payable | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 0 | |
ETG Utility Operations | Weather Normalization | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 2,684 | |
ETG Utility Operations | Amounts to be Refunded to Customers | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 7,455 | 10,625 |
ETG Utility Operations | Other Regulatory Liabilities | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 589 | 1,037 |
ELK Utility Operations | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 0 | 0 |
ELK Utility Operations | Excess Plant Removal Costs | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 0 | 0 |
ELK Utility Operations | Excess Deferred Taxes | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 0 | 0 |
ELK Utility Operations | Deferred Revenues - Net | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 0 | 0 |
ELK Utility Operations | CIP Payable | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 0 | |
ELK Utility Operations | Weather Normalization | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 0 | |
ELK Utility Operations | Amounts to be Refunded to Customers | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 0 | 0 |
ELK Utility Operations | Other Regulatory Liabilities | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | $ 0 | $ 0 |
PENSION AND OTHER POSTRETIREM_3
PENSION AND OTHER POSTRETIREMENT BENEFITS - Schedule of Defined Benefit Plans Disclosure (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service Cost | $ 974 | $ 1,387 | $ 4,349 | $ 4,187 |
Interest Cost | 3,862 | 4,307 | 11,388 | 12,971 |
Expected Return on Plan Assets | (5,569) | (5,077) | (16,473) | (15,213) |
Amortizations: | ||||
Prior Service Cost | 26 | 26 | 79 | 79 |
Actuarial Loss | 2,647 | 2,398 | 8,077 | 7,195 |
Net Periodic Benefit Cost | 1,940 | 3,041 | 7,420 | 9,219 |
Capitalized Benefit Cost | (410) | (454) | (1,470) | (1,423) |
Deferred Benefit Cost | (377) | (516) | (1,193) | (1,710) |
Total Net Periodic Benefit Expense | 1,153 | 2,071 | 4,757 | 6,086 |
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service Cost | 182 | 129 | 511 | 400 |
Interest Cost | 560 | 729 | 1,775 | 2,163 |
Expected Return on Plan Assets | (1,345) | (1,147) | (4,036) | (3,428) |
Amortizations: | ||||
Prior Service Cost | (180) | (144) | (468) | (432) |
Actuarial Loss | 255 | 292 | 640 | 876 |
Net Periodic Benefit Cost | (528) | (141) | (1,578) | (421) |
Capitalized Benefit Cost | 57 | (115) | (157) | (270) |
Deferred Benefit Cost | (90) | 118 | 701 | 352 |
Total Net Periodic Benefit Expense | $ (561) | $ (138) | $ (1,034) | $ (339) |
PENSION AND OTHER POSTRETIREM_4
PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Net Periodic Benefit Cost (Credit) | $ 1,940,000 | $ 3,041,000 | $ 7,420,000 | $ 9,219,000 |
Contributions | 0 | 0 | ||
Expected future employer contributions | 0 | 0 | ||
Pension Benefits | SJG | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Net Periodic Benefit Cost (Credit) | $ 1,600,000 | $ 1,900,000 | $ 5,400,000 | $ 6,300,000 |
Weighted average expected long term rate of return on plan assets (as a percent) | 7.25% | 7.25% | 7.25% | 7.25% |
Contributions | $ 0 | $ 0 | ||
Expected future employer contributions | $ 0 | 0 | ||
Other Postretirement Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Net Periodic Benefit Cost (Credit) | (528,000) | $ (141,000) | (1,578,000) | (421,000) |
Other Postretirement Benefits | SJG | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Net Periodic Benefit Cost (Credit) | $ (100,000) | $ (100,000) | $ (1,500,000) | $ (300,000) |
Weighted average expected long term rate of return on plan assets (as a percent) | 6.75% | 6.75% | 6.75% | 6.75% |
Supplemental executive retirement plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Expected future employer contributions | $ 3,700,000 | $ 3,700,000 |
LINES OF CREDIT AND SHORT-TER_3
LINES OF CREDIT AND SHORT-TERM BORROWINGS - Schedule of Lines of Credit (Details) - USD ($) | Sep. 30, 2020 | Mar. 26, 2020 |
Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Total Facility | $ 1,060,000,000 | |
Usage | 608,400,000 | |
Available Liquidity | 451,600,000 | |
SJI | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Total Facility | 650,000,000 | |
Usage | 349,300,000 | |
Available Liquidity | 300,700,000 | |
SJI | Line of Credit | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Total Facility | 500,000,000 | |
Usage | 199,300,000 | |
Available Liquidity | 300,700,000 | |
Letters of credit outstanding | 9,600,000 | |
SJI | Unsecured Debt | Unsecured Term Loan | ||
Line of Credit Facility [Line Items] | ||
Total Facility | 150,000,000 | $ 150,000,000 |
Usage | 150,000,000 | |
Available Liquidity | 0 | |
SJG | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Total Facility | 210,000,000 | |
Usage | 108,700,000 | |
Available Liquidity | 101,300,000 | |
SJG | Line of Credit | Uncommitted Bank Line | ||
Line of Credit Facility [Line Items] | ||
Total Facility | 10,000,000 | |
Usage | 0 | |
Available Liquidity | 10,000,000 | |
SJG | Line of Credit | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Letters of credit outstanding | 800,000 | |
SJG | Commercial Paper and Letters of Credit | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Total Facility | 200,000,000 | |
Usage | 108,700,000 | |
Available Liquidity | 91,300,000 | |
ETG/SJIU | Line of Credit | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Total Facility | 200,000,000 | |
Usage | 150,400,000 | |
Available Liquidity | 49,600,000 | |
ETG/SJIU | Line of Credit | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Letters of credit outstanding | $ 1,000,000 |
LINES OF CREDIT AND SHORT-TER_4
LINES OF CREDIT AND SHORT-TERM BORROWINGS (Details) | 9 Months Ended | |
Sep. 30, 2020USD ($) | Mar. 26, 2020USD ($) | |
Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Total Facility | $ 1,060,000,000 | |
Debt covenant, ratio of indebtedness to total capitalization, syndicate | 0.70 | |
Line of Credit | SJI | ||
Line of Credit Facility [Line Items] | ||
Total Facility | $ 650,000,000 | |
Line of Credit | SJI | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Total Facility | 500,000,000 | |
Maximum aggregate letters of credit allowed | 200,000,000 | |
Increase in maximum aggregate facility subject to certain conditions | 100,000,000 | |
Maximum aggregate facility, including increase subject to certain conditions | $ 600,000,000 | |
Line of Credit | SJI | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Term (in years) | 5 years | |
Line of Credit | SJI | Swingline Loan | ||
Line of Credit Facility [Line Items] | ||
Additional aggregate borrowing capacity | $ 50,000,000 | |
Line of Credit | SJIU and ETG | ||
Line of Credit Facility [Line Items] | ||
Debt covenant, ratio of indebtedness to total capitalization, syndicate | 0.70 | |
Line of Credit | SJIU and ETG | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Total Facility | $ 200,000,000 | |
Additional aggregate borrowing capacity | 200,000,000 | |
Maximum aggregate letters of credit allowed | 50,000,000 | |
Increase in maximum aggregate facility subject to certain conditions | 50,000,000 | |
Maximum aggregate facility, including increase subject to certain conditions | 250,000,000 | |
Line of Credit | SJIU and ETG | Swingline Loan | ||
Line of Credit Facility [Line Items] | ||
Additional aggregate borrowing capacity | 20,000,000 | |
Unsecured promissory notes | South Jersey Gas Commercial Paper Program | ||
Line of Credit Facility [Line Items] | ||
Total Facility | $ 200,000,000 | |
Fixed maturities of notes, at maximum number of days | 270 days | |
Unsecured promissory notes | SJI | Unsecured Term Loan | ||
Line of Credit Facility [Line Items] | ||
Total Facility | $ 150,000,000 | $ 150,000,000 |
LINES OF CREDIT AND SHORT-TER_5
LINES OF CREDIT AND SHORT-TERM BORROWINGS - Schedule of Lines of Credit (Weighted Average Interest Rates, Average Borrowings, and Maximum Amounts Outstanding) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Line of Credit Facility [Line Items] | ||
Maximum amounts outstanding | $ 872.2 | $ 882.7 |
SJG | ||
Line of Credit Facility [Line Items] | ||
Maximum amounts outstanding | $ 187 | $ 175.3 |
Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Weighted average interest rate on borrowings | 1.26% | 3.00% |
Average borrowings outstanding, not including LOC | $ 516.8 | $ 487.8 |
Line of Credit | SJG | ||
Line of Credit Facility [Line Items] | ||
Weighted average interest rate on borrowings | 0.23% | 2.39% |
Average borrowings outstanding, not including LOC | $ 149 | $ 96.2 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | Jul. 01, 2018USD ($) | Sep. 30, 2020USD ($)sitedecatherm | Dec. 31, 2019USD ($) | Dec. 31, 2018$ / shares |
Loss Contingencies [Line Items] | ||||
Minimum annual fee for long-term asset management agreement | $ 4,250,000 | |||
Percentage of personnel represented, collective bargaining agreements | 43.00% | |||
Approximate amount accrued related to all claims | $ 4,100,000 | $ 3,100,000 | ||
SJG | ||||
Loss Contingencies [Line Items] | ||||
Cumulative obligation for demand charges and reservation fees per month | $ 6,000,000 | |||
Percentage of personnel represented, collective bargaining agreements | 69.00% | |||
Approximate amount accrued related to all claims | $ 1,100,000 | $ 900,000 | ||
SJG | Environmental Remediation | ||||
Loss Contingencies [Line Items] | ||||
Number of sites for environmental cleanup | site | 12 | |||
SJG | Letter of credit under separate facility | ||||
Loss Contingencies [Line Items] | ||||
Letters of credit provided | $ 25,100,000 | |||
ETG Utility Operations | ||||
Loss Contingencies [Line Items] | ||||
Cumulative obligation for demand charges and reservation fees per month | 5,300,000 | |||
South Jersey Resources Group, LLC | ||||
Loss Contingencies [Line Items] | ||||
Cumulative obligation for demand charges and reservation fees per month | $ 1,600,000 | |||
Maximum purchase commitment (in dts/d) | decatherm | 738,250 | |||
Minimum length of contract | 5 years | |||
Maximum length of contract | 11 years | |||
Corporate Units | ||||
Loss Contingencies [Line Items] | ||||
Corporate Unit, stated value per share (in dollars per share) | $ / shares | $ 50 | |||
Parental Guarantee | ||||
Loss Contingencies [Line Items] | ||||
Parental guarantees | $ 10,500,000 | |||
Guarantee expiration period | 1 year | |||
ETG Utility Operations | ||||
Loss Contingencies [Line Items] | ||||
Minimum annual fee for long-term asset management agreement | $ 4,250,000 | |||
ETG Utility Operations | Environmental Remediation | ||||
Loss Contingencies [Line Items] | ||||
Number of sites for environmental cleanup | site | 5 |
DERIVATIVE INSTRUMENTS - Outsta
DERIVATIVE INSTRUMENTS - Outstanding Contracts (Details) MWh in Millions, MMcfe in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)MMcfeMWh | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Energy Related Derivative | |||||
Derivative [Line Items] | |||||
Unrealized gains (losses) | $ 11,400,000 | $ (4,000,000) | |||
Interest Rate Swap, $20,000,00 Contract 1 | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 20,000,000 | $ 20,000,000 | |||
Fixed Interest Rate | 3.049% | 3.049% | |||
Interest Rate Swap, $20,000,000 Contract 2 | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 20,000,000 | $ 20,000,000 | |||
Fixed Interest Rate | 3.049% | 3.049% | |||
Interest Rate Swap, $10,000,000 | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 10,000,000 | $ 10,000,000 | |||
Fixed Interest Rate | 3.049% | 3.049% | |||
Derivatives not designated as hedging instruments under GAAP | |||||
Derivative [Line Items] | |||||
Gain (loss) on energy related derivative instruments not designated as hedging instruments | $ (6,246,000) | $ (6,187,000) | $ (7,807,000) | $ (18,390,000) | |
Derivatives not designated as hedging instruments under GAAP | Energy Related Derivative, Natural Gas | Purchases | |||||
Derivative [Line Items] | |||||
Notional amount (natural gas in mmcfe and electricity in mwh) | MMcfe | 87 | ||||
Derivatives not designated as hedging instruments under GAAP | Energy Related Derivative, Natural Gas | Sales | |||||
Derivative [Line Items] | |||||
Notional amount (natural gas in mmcfe and electricity in mwh) | MMcfe | 101.5 | ||||
Derivatives not designated as hedging instruments under GAAP | Energy Related Derivative, Electricity | Purchases | |||||
Derivative [Line Items] | |||||
Notional amount (natural gas in mmcfe and electricity in mwh) | MWh | 0.1 | ||||
Derivatives not designated as hedging instruments under GAAP | Energy Related Derivative, Electricity | Sales | |||||
Derivative [Line Items] | |||||
Notional amount (natural gas in mmcfe and electricity in mwh) | MWh | 0.1 | ||||
Derivatives not designated as hedging instruments under GAAP | Basis And Index Contracts | |||||
Derivative [Line Items] | |||||
Notional amount (natural gas in mmcfe and electricity in mwh) | MMcfe | 86.7 | ||||
SJG | Energy Related Derivative | |||||
Derivative [Line Items] | |||||
Unrealized gains (losses) | $ 5,700,000 | $ 2,100,000 | |||
SJG | Interest Rate Swap, $12,500,000 Contract 1 | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 12,500,000 | $ 12,500,000 | |||
Fixed Interest Rate | 3.53% | 3.53% | |||
SJG | Interest Rate Swap, $12,500,000 Contract 2 | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 12,500,000 | $ 12,500,000 | |||
Fixed Interest Rate | 3.43% | 3.43% | |||
SJG | Derivatives not designated as hedging instruments under GAAP | Energy Related Derivative, Natural Gas | Purchases | |||||
Derivative [Line Items] | |||||
Notional amount (natural gas in mmcfe and electricity in mwh) | MMcfe | 13.1 | ||||
SJG | Derivatives not designated as hedging instruments under GAAP | Energy Related Derivative, Natural Gas | Sales | |||||
Derivative [Line Items] | |||||
Notional amount (natural gas in mmcfe and electricity in mwh) | MMcfe | 0.7 | ||||
SJG | Derivatives not designated as hedging instruments under GAAP | Energy Related Derivative, Electricity | Purchases | |||||
Derivative [Line Items] | |||||
Notional amount (natural gas in mmcfe and electricity in mwh) | MWh | 0 | ||||
SJG | Derivatives not designated as hedging instruments under GAAP | Energy Related Derivative, Electricity | Sales | |||||
Derivative [Line Items] | |||||
Notional amount (natural gas in mmcfe and electricity in mwh) | MWh | 0 | ||||
SJG | Derivatives not designated as hedging instruments under GAAP | Basis And Index Contracts | |||||
Derivative [Line Items] | |||||
Notional amount (natural gas in mmcfe and electricity in mwh) | MMcfe | 2.6 |
DERIVATIVE INSTRUMENTS - Fair V
DERIVATIVE INSTRUMENTS - Fair Value of all Derivative Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Energy-related commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Assets | $ 46,948 | $ 60,135 |
Liabilities | 0 | 0 |
Energy-related commodity contracts | SJG | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 6,485 | 16,909 |
Liabilities | 0 | 0 |
Derivatives not designated as hedging instruments under GAAP | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 46,948 | 60,135 |
Liabilities | 49,172 | 62,831 |
Derivatives not designated as hedging instruments under GAAP | SJG | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 6,485 | 16,909 |
Liabilities | 11,689 | 22,622 |
Derivatives not designated as hedging instruments under GAAP | Energy-related commodity contracts | Derivatives - Energy Related - Current | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 36,541 | 52,892 |
Liabilities | 25,005 | 41,965 |
Derivatives not designated as hedging instruments under GAAP | Energy-related commodity contracts | Derivatives - Energy Related - Current | SJG | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 6,060 | 16,904 |
Liabilities | 817 | 14,671 |
Derivatives not designated as hedging instruments under GAAP | Energy-related commodity contracts | Derivatives - Energy Related - Non-Current | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 10,407 | 7,243 |
Liabilities | 4,452 | 8,206 |
Derivatives not designated as hedging instruments under GAAP | Energy-related commodity contracts | Derivatives - Energy Related - Non-Current | SJG | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 425 | 5 |
Liabilities | 0 | 95 |
Derivatives not designated as hedging instruments under GAAP | Interest rate contracts | Derivatives - Other - Current | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 2,078 | 1,155 |
Derivatives not designated as hedging instruments under GAAP | Interest rate contracts | Derivatives - Other - Current | SJG | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 709 | 488 |
Derivatives not designated as hedging instruments under GAAP | Interest rate contracts | Derivatives - Other - Noncurrent | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 17,637 | 11,505 |
Derivatives not designated as hedging instruments under GAAP | Interest rate contracts | Derivatives - Other - Noncurrent | SJG | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 0 |
Liabilities | $ 10,163 | $ 7,368 |
DERIVATIVE INSTRUMENTS - Offset
DERIVATIVE INSTRUMENTS - Offsetting Arrangements (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Energy-related commodity contracts | ||
Offsetting Derivative Assets [Abstract] | ||
Gross amounts of recognized assets/liabilities | $ 46,948 | $ 60,135 |
Gross amount offset in the balance sheet | 0 | 0 |
Net amounts of assets/liabilities in balance sheet | 46,948 | 60,135 |
Gross amounts not offset in the balance sheet, Financial Instruments | (24,937) | (32,185) |
Gross amounts not offset in the balance sheet, Cash Collateral Posted/(Received) | (3,706) | 0 |
Net amount | 18,305 | 27,950 |
Offsetting Derivative Liabilities [Abstract] | ||
Gross amounts of recognized assets/liabilities | (29,457) | (50,171) |
Gross amount offset in the balance sheet | 0 | 0 |
Net amounts of assets/liabilities in balance sheet | (29,457) | (50,171) |
Gross amounts not offset in the balance sheet, Financial Instruments | 24,937 | 32,185 |
Gross amounts not offset in the balance sheet, Cash Collateral Posted/(Received) | 0 | 12,878 |
Net amount | (4,520) | (5,108) |
Energy-related commodity contracts | SJG | ||
Offsetting Derivative Assets [Abstract] | ||
Gross amounts of recognized assets/liabilities | 6,485 | 16,909 |
Gross amount offset in the balance sheet | 0 | 0 |
Net amounts of assets/liabilities in balance sheet | 6,485 | 16,909 |
Gross amounts not offset in the balance sheet, Financial Instruments | (338) | (11,860) |
Gross amounts not offset in the balance sheet, Cash Collateral Posted/(Received) | 0 | 0 |
Net amount | 6,147 | 5,049 |
Offsetting Derivative Liabilities [Abstract] | ||
Gross amounts of recognized assets/liabilities | (817) | (14,766) |
Gross amount offset in the balance sheet | 0 | 0 |
Net amounts of assets/liabilities in balance sheet | (817) | (14,766) |
Gross amounts not offset in the balance sheet, Financial Instruments | 338 | 11,860 |
Gross amounts not offset in the balance sheet, Cash Collateral Posted/(Received) | 0 | 2,706 |
Net amount | (479) | (200) |
Other | ||
Offsetting Derivative Liabilities [Abstract] | ||
Gross amounts of recognized assets/liabilities | (19,715) | (12,660) |
Gross amount offset in the balance sheet | 0 | 0 |
Net amounts of assets/liabilities in balance sheet | (19,715) | (12,660) |
Gross amounts not offset in the balance sheet, Financial Instruments | 0 | 0 |
Gross amounts not offset in the balance sheet, Cash Collateral Posted/(Received) | 0 | 0 |
Net amount | (19,715) | (12,660) |
Other | SJG | ||
Offsetting Derivative Liabilities [Abstract] | ||
Gross amounts of recognized assets/liabilities | (10,872) | (7,856) |
Gross amount offset in the balance sheet | 0 | 0 |
Net amounts of assets/liabilities in balance sheet | (10,872) | (7,856) |
Gross amounts not offset in the balance sheet, Financial Instruments | 0 | 0 |
Gross amounts not offset in the balance sheet, Cash Collateral Posted/(Received) | 0 | 0 |
Net amount | $ (10,872) | $ (7,856) |
DERIVATIVE INSTRUMENTS - Effect
DERIVATIVE INSTRUMENTS - Effect of Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||||
Total | $ (5,904) | $ (7,324) | $ (11,847) | $ (22,362) |
Fair value of derivative instruments with credit-risk-related features | 300 | 300 | ||
Additional collateral, aggregate fair value | 100 | 100 | ||
Interest rate contracts | Non-Utility Revenue | ||||
Derivatives, Fair Value [Line Items] | ||||
Losses reclassified from AOCL into income | (12) | (12) | (35) | (35) |
SJG | Interest rate contracts | Non-Utility Revenue | ||||
Derivatives, Fair Value [Line Items] | ||||
Losses reclassified from AOCL into income | (12) | (12) | (35) | (35) |
Derivatives not designated as hedging instruments under GAAP | ||||
Derivative Instruments Not Designated as Hedging Instruments [Abstract] | ||||
Gains (Losses) on energy-related commodity contracts | (6,246) | (6,187) | (7,807) | (18,390) |
Gains (Losses) on interest rate contracts | $ 342 | $ (1,137) | $ (4,040) | $ (3,972) |
FAIR VALUE OF FINANCIAL ASSET_3
FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES - Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities | $ 40 | $ 40 |
Fair Value, Measurements, Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities | 40 | 40 |
Derivatives - Energy Related Assets | 46,948 | 60,135 |
Total Assets | 46,988 | 60,175 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivatives - Energy Related Liabilities | 29,457 | 50,171 |
Derivatives - Other | 19,715 | 12,660 |
Total Liabilities | 49,172 | 62,831 |
Fair Value, Measurements, Recurring | SJG | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivatives - Energy Related Assets | 6,485 | 16,909 |
Total Assets | 6,485 | 16,909 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivatives - Energy Related Liabilities | 817 | 14,766 |
Derivatives - Other | 10,872 | 7,856 |
Total Liabilities | 11,689 | 22,622 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities | 40 | 40 |
Derivatives - Energy Related Assets | 18,953 | 16,931 |
Total Assets | 18,993 | 16,971 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivatives - Energy Related Liabilities | 8,393 | 34,446 |
Derivatives - Other | 0 | 0 |
Total Liabilities | 8,393 | 34,446 |
Fair Value, Measurements, Recurring | Level 1 | SJG | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivatives - Energy Related Assets | 2,181 | 11,860 |
Total Assets | 2,181 | 11,860 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivatives - Energy Related Liabilities | 338 | 14,565 |
Derivatives - Other | 0 | 0 |
Total Liabilities | 338 | 14,565 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities | 0 | 0 |
Derivatives - Energy Related Assets | 16,876 | 17,841 |
Total Assets | 16,876 | 17,841 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivatives - Energy Related Liabilities | 16,354 | 7,936 |
Derivatives - Other | 19,715 | 12,660 |
Total Liabilities | 36,069 | 20,596 |
Fair Value, Measurements, Recurring | Level 2 | SJG | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivatives - Energy Related Assets | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivatives - Energy Related Liabilities | 479 | 187 |
Derivatives - Other | 10,872 | 7,856 |
Total Liabilities | 11,351 | 8,043 |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-Sale Securities | 0 | 0 |
Derivatives - Energy Related Assets | 11,119 | 25,363 |
Total Assets | 11,119 | 25,363 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivatives - Energy Related Liabilities | 4,710 | 7,789 |
Derivatives - Other | 0 | 0 |
Total Liabilities | 4,710 | 7,789 |
Fair Value, Measurements, Recurring | Level 3 | SJG | ||
Assets, Fair Value Disclosure [Abstract] | ||
Derivatives - Energy Related Assets | 4,304 | 5,049 |
Total Assets | 4,304 | 5,049 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivatives - Energy Related Liabilities | 0 | 14 |
Derivatives - Other | 0 | 0 |
Total Liabilities | $ 0 | $ 14 |
FAIR VALUE OF FINANCIAL ASSET_4
FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES - Quantitative Information Regarding Significant Unobservable Inputs (Details) - Forward Contracts - Discounted Cash Flow - Level 3 $ in Thousands | Sep. 30, 2020USD ($)$ / decatherm | Dec. 31, 2019USD ($)$ / decatherm |
Natural Gas | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Assets | $ | $ 10,403 | $ 21,645 |
Liabilities | $ | 4,050 | 4,333 |
Natural Gas | SJG | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Assets | $ | 4,304 | 5,049 |
Liabilities | $ | $ 0 | $ 14 |
Natural Gas | Minimum | Forward price (per dt) | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Derivative, measurement input | $ / decatherm | 0.72 | 1.57 |
Natural Gas | Minimum | SJG | Forward price (per dt) | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Derivative, measurement input | $ / decatherm | 1.05 | 1.85 |
Natural Gas | Maximum | Forward price (per dt) | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Derivative, measurement input | $ / decatherm | 7.09 | 7.28 |
Natural Gas | Maximum | SJG | Forward price (per dt) | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Derivative, measurement input | $ / decatherm | 5.47 | 3.61 |
Natural Gas | Weighted Average | Forward price (per dt) | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Derivative, measurement input | $ / decatherm | 3.18 | 2.38 |
Natural Gas | Weighted Average | SJG | Forward price (per dt) | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Derivative, measurement input | $ / decatherm | 4.03 | 3.02 |
Electricity | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Assets | $ | $ 716 | $ 3,718 |
Liabilities | $ | $ 660 | $ 3,456 |
Electricity | Minimum | Fixed electric load profile (on-peak) | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Derivative, measurement input | 0.4034 | 0 |
Electricity | Minimum | Fixed electric load profile (off-peak) | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Derivative, measurement input | 0 | 0 |
Electricity | Maximum | Fixed electric load profile (on-peak) | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Derivative, measurement input | 1 | 1 |
Electricity | Maximum | Fixed electric load profile (off-peak) | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Derivative, measurement input | 0.5966 | 1 |
Electricity | Weighted Average | Fixed electric load profile (on-peak) | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Derivative, measurement input | 0.6014 | 0.5546 |
Electricity | Weighted Average | Fixed electric load profile (off-peak) | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Derivative, measurement input | 0.3986 | 0.4454 |
FAIR VALUE OF FINANCIAL ASSET_5
FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES - Changes in Measurements (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | $ 12,251 | $ 9,959 | $ 17,574 | $ 16,061 |
Other Changes in Fair Value from Continuing and New Contracts, Net | (3,198) | 6,046 | 3,819 | 10,331 |
Settlements | (2,644) | (4,144) | (14,984) | (14,531) |
Balance at end of period | 6,409 | 11,861 | 6,409 | 11,861 |
SJG | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | 4,365 | 1,708 | 5,035 | 4,928 |
Other Changes in Fair Value from Continuing and New Contracts, Net | (61) | 6,533 | 4,304 | 8,241 |
Settlements | 0 | 0 | (5,035) | (4,928) |
Balance at end of period | $ 4,304 | $ 8,241 | $ 4,304 | $ 8,241 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) | Jul. 31, 2020USD ($) | Apr. 26, 2020USD ($) | Apr. 03, 2020USD ($) | Sep. 30, 2020USD ($) | Oct. 01, 2020USD ($) | May 27, 2020USD ($)tranche | Apr. 16, 2020USD ($)tranche |
Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Total Facility | $ 1,060,000,000 | ||||||
SJI | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Total Facility | 650,000,000 | ||||||
SJI | Variable Rate Note | Notes Payable | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of debt | $ 50,000,000 | ||||||
SJI | Senior Unsecured Notes | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount issued | $ 200,000,000 | ||||||
Number of tranches | tranche | 2 | ||||||
SJI | Senior Notes, Series 2020A | Senior Notes | Tranche A | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount issued | $ 75,000,000 | ||||||
Interest rate | 3.71% | ||||||
SJI | Senior Notes, Series 2020B | Senior Notes | Tranche B | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount issued | $ 125,000,000 | ||||||
Interest rate | 3.91% | ||||||
SJG | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Total Facility | $ 210,000,000 | ||||||
SJG | Medium-term Notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 3.00% | ||||||
Debt paid off | $ 10,000,000 | ||||||
SJG | Senior Secured Notes, Series F, 2020 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount issued | $ 525,000,000 | ||||||
Number of tranches | tranche | 3 | ||||||
SJG | Senior Secured Notes, Series F, 2020 | Senior Notes | Tranche A | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount issued | $ 150,000,000 | ||||||
Interest rate | 3.28% | ||||||
SJG | Senior Secured Notes, Series F, 2020 | Senior Notes | Tranche B | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount issued | $ 250,000,000 | ||||||
Interest rate | 3.93% | ||||||
SJG | Senior Secured Notes, Series F, 2020 | Senior Notes | Tranche C | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount issued | $ 125,000,000 | ||||||
SJG | Senior Secured Notes, Series F, 2020 | Senior Notes | Tranche C | Subsequent Event | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount issued | $ 125,000,000 | ||||||
Interest rate | 3.98% | ||||||
Unsecured Term Loan | SJI | Unsecured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of debt | 100,000,000 | ||||||
Unsecured Term Loan | SJI | Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Total Facility | 200,000,000 | ||||||
Repayments of debt | $ 200,000,000 | ||||||
Unsecured Term Loan | SJG | Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of debt | $ 400,000,000 | ||||||
Revolving Credit Facility | SJI | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of debt | $ 50,000,000 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Summary of Changes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Other comprehensive loss before reclassifications | $ 0 | $ 0 | ||||||
Amounts reclassified from AOCL | 9 | 25 | ||||||
Other Comprehensive Income - Net of Tax | 9 | $ 8 | $ 8 | $ 9 | $ 8 | $ 8 | 25 | $ 25 |
Reclassification of unrealized loss on derivatives, tax benefit (expense) | (3) | (3) | (10) | (10) | ||||
SJG | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Other comprehensive loss before reclassifications | 0 | 0 | ||||||
Amounts reclassified from AOCL | 9 | 25 | ||||||
Other Comprehensive Income - Net of Tax | 9 | 8 | 8 | 9 | 8 | 8 | 25 | 25 |
Reclassification of unrealized loss on derivatives, tax benefit (expense) | (3) | (3) | (10) | $ (10) | ||||
Total | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning Balance | (32,542) | (32,558) | (32,558) | |||||
Other Comprehensive Income - Net of Tax | 9 | 8 | 8 | 9 | 8 | 8 | ||
Ending Balance | (32,533) | (32,542) | (32,533) | |||||
Total | SJG | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning Balance | (27,859) | (27,875) | (27,875) | |||||
Other Comprehensive Income - Net of Tax | 9 | 8 | 8 | $ 9 | $ 8 | $ 8 | ||
Ending Balance | (27,850) | (27,859) | (27,850) | |||||
Postretirement Liability Adjustment | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning Balance | (32,124) | (32,124) | (32,124) | |||||
Other comprehensive loss before reclassifications | 0 | 0 | ||||||
Amounts reclassified from AOCL | 0 | 0 | ||||||
Other Comprehensive Income - Net of Tax | 0 | 0 | ||||||
Ending Balance | (32,124) | (32,124) | (32,124) | |||||
Postretirement Liability Adjustment | SJG | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning Balance | (27,454) | (27,454) | (27,454) | |||||
Other comprehensive loss before reclassifications | 0 | 0 | ||||||
Amounts reclassified from AOCL | 0 | 0 | ||||||
Other Comprehensive Income - Net of Tax | 0 | 0 | ||||||
Ending Balance | (27,454) | (27,454) | (27,454) | |||||
Unrealized Gain (Loss) on Derivatives-Other | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning Balance | (311) | (327) | (327) | |||||
Other comprehensive loss before reclassifications | 0 | 0 | ||||||
Amounts reclassified from AOCL | 9 | 25 | ||||||
Other Comprehensive Income - Net of Tax | 9 | 25 | ||||||
Ending Balance | (302) | (311) | (302) | |||||
Unrealized Gain (Loss) on Derivatives-Other | SJG | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning Balance | (405) | (421) | (421) | |||||
Other comprehensive loss before reclassifications | 0 | 0 | ||||||
Amounts reclassified from AOCL | 9 | 25 | ||||||
Other Comprehensive Income - Net of Tax | 9 | 25 | ||||||
Ending Balance | (396) | (405) | (396) | |||||
Unrealized Gain (Loss) on Available- for-Sale Securities | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning Balance | (10) | (10) | (10) | |||||
Other comprehensive loss before reclassifications | 0 | 0 | ||||||
Amounts reclassified from AOCL | 0 | 0 | ||||||
Other Comprehensive Income - Net of Tax | 0 | 0 | ||||||
Ending Balance | (10) | (10) | (10) | |||||
Other Comprehensive Income (Loss) of Affiliated Companies | ||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||
Beginning Balance | (97) | $ (97) | (97) | |||||
Other comprehensive loss before reclassifications | 0 | 0 | ||||||
Amounts reclassified from AOCL | 0 | 0 | ||||||
Other Comprehensive Income - Net of Tax | 0 | 0 | ||||||
Ending Balance | $ (97) | $ (97) | $ (97) |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues from alternative revenue programs | $ (6.4) | $ 1.2 | $ 26.6 | $ 22.5 |
SJG | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues from alternative revenue programs | $ (5.8) | $ 1.2 | $ 19.6 | $ 27.2 |
REVENUE - Disaggregated Revenue
REVENUE - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Utility | $ 315,148 | $ 268,843 | $ 1,077,434 | $ 1,107,360 |
Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 303,198 | 243,788 | 1,043,638 | 1,026,780 |
Electric | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 4,490 | 12,296 | 15,476 | 40,688 |
Solar | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 5,429 | 3,429 | 8,725 | 12,443 |
CHP | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 7,218 | 3,502 | 21,371 | |
Landfills | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 888 | 1,333 | 3,232 | 4,284 |
Other Product | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 1,143 | 779 | 2,861 | 1,794 |
Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 62,442 | 52,310 | 401,274 | 403,172 |
Commercial and Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 250,252 | 211,999 | 664,471 | 690,120 |
OSS and Capacity Release | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 1,859 | 2,234 | 5,931 | 6,248 |
Other Customer | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 595 | 2,300 | 5,758 | 7,820 |
SJG Utility Operations | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 67,765 | 55,198 | 352,127 | 335,179 |
SJG Utility Operations | Gas | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 67,765 | 55,198 | 352,127 | 335,179 |
SJG Utility Operations | Residential | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 40,900 | 31,256 | 244,114 | 244,889 |
SJG Utility Operations | Commercial and Industrial | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 24,625 | 21,164 | 100,689 | 82,255 |
SJG Utility Operations | OSS and Capacity Release | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 1,859 | 2,234 | 5,931 | 6,248 |
SJG Utility Operations | Other Customer | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 381 | 544 | 1,393 | 1,787 |
ETG Utility Operations | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 38,163 | 30,624 | 232,410 | 220,503 |
ETG Utility Operations | Gas | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 38,163 | 30,624 | 232,410 | 220,503 |
ETG Utility Operations | Residential | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 20,974 | 16,092 | 153,496 | 143,584 |
ETG Utility Operations | Commercial and Industrial | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 16,998 | 12,799 | 74,752 | 71,013 |
ETG Utility Operations | Other Customer | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 191 | 1,733 | 4,162 | 5,906 |
ELK Utility Operations | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 285 | 895 | 4,926 | 5,100 |
ELK Utility Operations | Gas | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 285 | 895 | 4,926 | 5,100 |
ELK Utility Operations | Residential | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 77 | 243 | 2,179 | 2,204 |
ELK Utility Operations | Commercial and Industrial | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 185 | 629 | 2,544 | 2,769 |
ELK Utility Operations | Other Customer | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 23 | 23 | 203 | 127 |
Wholesale Energy Operations | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 197,580 | 158,244 | 456,427 | 469,805 |
Wholesale Energy Operations | Gas | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 197,580 | 158,244 | 456,427 | 469,805 |
Wholesale Energy Operations | Commercial and Industrial | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 197,580 | 158,244 | 456,427 | 469,805 |
Retail Electric Operations | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 4,814 | 14,480 | 17,462 | 46,663 |
Retail Electric Operations | Electric | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 4,814 | 14,480 | 17,462 | 46,663 |
Retail Electric Operations | Residential | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 4,205 | 10,966 | ||
Retail Electric Operations | Commercial and Industrial | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 4,814 | 10,275 | 17,462 | 35,697 |
On-Site Energy Production | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 6,317 | 11,980 | 15,459 | 38,098 |
On-Site Energy Production | Solar | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 5,429 | 3,429 | 8,725 | 12,443 |
On-Site Energy Production | CHP | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 7,218 | 3,502 | 21,371 | |
On-Site Energy Production | Landfills | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 888 | 1,333 | 3,232 | 4,284 |
On-Site Energy Production | Commercial and Industrial | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 6,317 | 11,980 | 15,459 | 38,098 |
Appliance Service Operations | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 491 | 514 | 1,485 | 1,529 |
Appliance Service Operations | Other Product | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 491 | 514 | 1,485 | 1,529 |
Appliance Service Operations | Residential | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 491 | 514 | 1,485 | 1,529 |
Corporate and Services | Corporate Services And Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | (267) | (3,092) | (2,862) | (9,517) |
Corporate and Services | Gas | Corporate Services And Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | (595) | (1,173) | (2,252) | (3,807) |
Corporate and Services | Electric | Corporate Services And Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | (324) | (2,184) | (1,986) | (5,975) |
Corporate and Services | Other Product | Corporate Services And Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 652 | 265 | 1,376 | 265 |
Corporate and Services | Commercial and Industrial | Corporate Services And Intersegment Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | $ (267) | $ (3,092) | $ (2,862) | $ (9,517) |
REVENUE - Accounts Receivable (
REVENUE - Accounts Receivable (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts Receivable | ||||
Disaggregation of Revenue [Line Items] | ||||
Contracts with customers, asset | $ 167,534 | $ 179,108 | $ 253,661 | $ 337,502 |
Increase (Decrease) in contracts with customers, asset | (86,127) | (158,394) | ||
Unbilled Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Contracts with customers, asset | 22,712 | 18,714 | 84,821 | 79,538 |
Increase (Decrease) in contracts with customers, asset | (62,109) | (60,824) | ||
SJG | Accounts Receivable | ||||
Disaggregation of Revenue [Line Items] | ||||
Contracts with customers, asset | 62,447 | 65,511 | 84,940 | 101,572 |
Increase (Decrease) in contracts with customers, asset | (22,493) | (36,061) | ||
SJG | Unbilled Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Contracts with customers, asset | 9,985 | 7,831 | $ 45,016 | $ 43,271 |
Increase (Decrease) in contracts with customers, asset | $ (35,031) | $ (35,440) |
ACQUISITIONS & BUSINESS COMBI_3
ACQUISITIONS & BUSINESS COMBINATIONS - Narrative (Details) $ in Thousands | Aug. 07, 2020USD ($) | Aug. 31, 2019USD ($) | Aug. 21, 2020USD ($) | Sep. 30, 2020USD ($) | Aug. 12, 2020projectMW | Aug. 06, 2020 |
Annadale | ||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||
Number of fuel cell projects | project | 2 | |||||
Number of megawatts produced by fuel cell projects | MW | 7.5 | |||||
Marina | Annadale | ||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||
Property, plant and equipment | $ 58,500 | |||||
Useful life of fuel cell modules (in years) | 35 years | |||||
Finance lease term | 35 years | |||||
Annadale | ||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||
Finance lease term | 35 years | |||||
Annadale | Catamaran | ||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||
Ownership interest (as a percent) | 100.00% | |||||
Annadale | Marina | ||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||
Amount invested | $ 54,300 | |||||
Non-controlling interest | $ 4,200 | |||||
Annadale | Marina | Annadale | ||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||
Ownership by parent (as a percent) | 93.00% | |||||
EnerConnex, LLC | ||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||
Remaining equity interest acquired (as a percent) | 75.00% | |||||
Consideration paid | $ 7,500 | |||||
Equity interest in acquiree previously held (as a percent) | 25.00% | |||||
Remeasurement gain | 2,000 | |||||
Fair value of the previously held equity interest | 2,500 | |||||
Assumed liabilities | $ 154 | |||||
Solar Energy Projects Acquisition | ||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||
Consideration paid | $ 3,800 | |||||
AEP | ||||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||||
Consideration paid | $ 4,000 |
ACQUISITIONS & BUSINESS COMBI_4
ACQUISITIONS & BUSINESS COMBINATIONS - AEP Acquisition (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Aug. 07, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 706,960 | $ 702,070 | |
EnerConnex, LLC | |||
Business Acquisition [Line Items] | |||
Cash | $ 415 | ||
Accounts Receivable | 249 | ||
Identified Intangible Assets | 4,500 | ||
Goodwill | 4,890 | ||
Other Noncurrent Assets | 100 | ||
Total assets acquired | 10,154 | ||
Accounts Payable | 4 | ||
Other Current Liabilities | 150 | ||
Total liabilities assumed | 154 | ||
Total net assets acquired | $ 10,000 |
GOODWILL AND IDENTIFIABLE INT_3
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Goodwill [Line Items] | ||||||
Goodwill | $ 706,960,000 | $ 706,960,000 | $ 702,070,000 | |||
Amortization expense | 1,400,000 | $ 1,500,000 | 4,000,000 | $ 4,600,000 | ||
Impairment of intangible assets (excluding goodwill) | 0 | $ 0 | $ 0 | $ 0 | ||
Minimum | ||||||
Goodwill [Line Items] | ||||||
Useful life of finite-lived intangible assets | 2 years | |||||
Maximum | ||||||
Goodwill [Line Items] | ||||||
Useful life of finite-lived intangible assets | 20 years | |||||
ETG Utility Operations | ||||||
Goodwill [Line Items] | ||||||
Goodwill impairment | 0 | $ 0 | ||||
Goodwill | 700,200,000 | $ 700,200,000 | 700,200,000 | |||
Corporate and Other | ||||||
Goodwill [Line Items] | ||||||
Goodwill | $ 6,800,000 | $ 6,800,000 | $ 1,900,000 |
GOODWILL AND IDENTIFIABLE INT_4
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS - SUMMARY OF CHANGES IN GOODWILL (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance, January 1 | $ 702,070 |
Goodwill from EnerConnex Acquisition | 4,890 |
Ending Balance, September 30 | $ 706,960 |
GOODWILL AND IDENTIFIABLE INT_5
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS - SUMMARY OF INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | $ 26,100 | $ 21,600 |
Accumulated Amortization | (11,743) | (7,733) |
Identifiable Intangible Assets, Net | 14,357 | 13,867 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | 6,900 | 2,400 |
Accumulated Amortization | (223) | (53) |
Identifiable Intangible Assets, Net | 6,677 | 2,347 |
AMA | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Cost | 19,200 | 19,200 |
Accumulated Amortization | (11,520) | (7,680) |
Identifiable Intangible Assets, Net | $ 7,680 | $ 11,520 |
GOODWILL AND IDENTIFIABLE INT_6
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS - FUTURE AMORTIZATION EXPENSE (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 (remaining three months) | $ 1,395 |
2021 | 5,580 |
2022 | 1,740 |
2023 | 460 |
2024 | $ 460 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2020 | Aug. 12, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Finance lease, lease liability | $ 3,051,000 | ||
Percentage of operating leases which are real estate leases | 91.00% | ||
Operating lease, ROU asset | $ 1,600,000 | $ 1,900,000 | |
Operating lease, liability | 1,569,000 | 1,900,000 | |
Accumulated depreciation | 13,389,000 | 13,807,000 | |
Annadale | |||
Lessee, Lease, Description [Line Items] | |||
Finance lease, ROU asset | 3,000,000 | $ 3,100,000 | |
Finance lease, lease liability | $ 3,100,000 | $ 3,100,000 | |
Finance lease term | 35 years | ||
Assets Leased to Others | Marina | |||
Lessee, Lease, Description [Line Items] | |||
Carrying costs of property and equipment under operating lease, net of accumulated depreciation | 68,900,000 | ||
Accumulated depreciation | $ 40,600,000 | ||
Minimum | Real Estate | |||
Lessee, Lease, Description [Line Items] | |||
Term of operating lease | 5 years | ||
Minimum | Property, Plant and Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Term of operating lease | 3 years | ||
Maximum | Real Estate | |||
Lessee, Lease, Description [Line Items] | |||
Term of operating lease | 15 years | ||
Maximum | Property, Plant and Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Term of operating lease | 25 years | ||
SJG | |||
Lessee, Lease, Description [Line Items] | |||
Finance lease, lease liability | $ 0 | ||
Percentage of operating leases which are real estate leases | 68.00% | ||
Operating lease, liability | $ 188,000 |
LEASES - Lease Maturity and Bal
LEASES - Lease Maturity and Balance Sheet Information (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2020 (excluding the nine months ended September 30, 2020) | $ 206,000 | |
2021 | 534,000 | |
2022 | 348,000 | |
2023 | 190,000 | |
2024 | 165,000 | |
Thereafter | 235,000 | |
Total lease payments | 1,678,000 | |
Less imputed interest | 109,000 | |
Total lease liabilities | 1,569,000 | $ 1,900,000 |
Finance Lease, Liability, Payment, Due [Abstract] | ||
2020 (excluding the nine months ended September 30, 2020) | 36,000 | |
2021 | 145,000 | |
2022 | 145,000 | |
2023 | 145,000 | |
2024 | 145,000 | |
Thereafter | 6,557,000 | |
Total lease payments | 7,173,000 | |
Less imputed interest | 4,122,000 | |
Total lease liabilities | 3,051,000 | |
Operating Lease, Liability [Abstract] | ||
Current lease liabilities (included in Other Current Liabilities) | 581,000 | |
Long-term lease liabilities (included in Other Noncurrent Liabilities) | 988,000 | |
Finance Lease Liability [Abstract] | ||
Current lease liabilities (included in Other Current Liabilities) | 0 | |
Long-term lease liabilities (included in Other Noncurrent Liabilities) | $ 3,051,000 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | |
SJG | ||
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2020 (excluding the nine months ended September 30, 2020) | $ 23,000 | |
2021 | 39,000 | |
2022 | 21,000 | |
2023 | 19,000 | |
2024 | 12,000 | |
Thereafter | 102,000 | |
Total lease payments | 216,000 | |
Less imputed interest | 28,000 | |
Total lease liabilities | 188,000 | |
Finance Lease, Liability, Payment, Due [Abstract] | ||
Total lease liabilities | 0 | |
Operating Lease, Liability [Abstract] | ||
Current lease liabilities (included in Other Current Liabilities) | 49,000 | |
Long-term lease liabilities (included in Other Noncurrent Liabilities) | $ 139,000 |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Total operating lease cost | $ 364 | $ 717 | $ 983 | $ 2,317 |
Finance Lease cost, Amortization of ROU assets | 10 | 10 | ||
Finance Lease cost, Interest expense | 18 | 18 | ||
Variable lease cost | 190 | 270 | 491 | 1,070 |
Total lease cost | $ 582 | $ 987 | $ 1,502 | $ 3,387 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Operating cash flows from operating leases | $ 250 | $ 430 | $ 980 | $ 1,230 |
LEASES - Supplemental Non-Cash
LEASES - Supplemental Non-Cash Disclosures (Details) | Sep. 30, 2020 |
Lessee, Lease, Description [Line Items] | |
Weighted-average remaining lease term - operating lease | 4 years 7 months 6 days |
Weighted-average remaining lease term - finance lease | 34 years 10 months 24 days |
Weighted-average discount rate - operating lease | 3.10% |
Weighted-average discount rate - finance lease | 5.00% |
SJG | |
Lessee, Lease, Description [Line Items] | |
Weighted-average remaining lease term - operating lease | 9 years 6 months |
Weighted-average discount rate - operating lease | 3.00% |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | Oct. 16, 2020 | Oct. 01, 2020 | Sep. 30, 2020 | Apr. 16, 2020 |
Subsequent Event [Line Items] | ||||
Common Stock, Shares Authorized | 120,000,000 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Common Stock, Shares Authorized | 220,000,000 | |||
SJG | ||||
Subsequent Event [Line Items] | ||||
Common Stock, Shares Authorized | 122,500,000 | |||
SJG | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Common Stock, Shares Authorized | 222,500,000 | |||
Senior Secured Notes, Series F, 2020 | Senior Secured Notes | SJG | ||||
Subsequent Event [Line Items] | ||||
Principal amount issued | $ 525,000,000 | |||
Senior Secured Notes, Series F, 2020 | Senior Secured Notes | Tranche C | SJG | ||||
Subsequent Event [Line Items] | ||||
Principal amount issued | $ 125,000,000 | |||
Senior Secured Notes, Series F, 2020 | Senior Secured Notes | Tranche C | SJG | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Principal amount issued | $ 125,000,000 | |||
Interest rate | 3.98% |