Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | May 01, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
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 | 122,407,427 | |
Entity Central Index Key | 0000091928 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Stock - $1.25 par value per share | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock - $1.25 par value per share | |
Trading Symbol | SJI | |
Security Exchange Name | NYSE | |
5.625% Junior Subordinated Notes due 2079 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 5.625% Junior Subordinated Notes due 2079 | |
Trading Symbol | SJIJ | |
Security Exchange Name | NYSE | |
Corporate Units | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Corporate Units | |
Trading Symbol | SJIV | |
Security Exchange Name | NYSE | |
South Jersey Gas Company | ||
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-22211 | |
Entity Registrant Name | South Jersey Gas Co | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 21-0398330 | |
Entity Address, Address Line One | 1 South Jersey Plaza | |
Entity Address, City or Town | Folsom | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08037 | |
City Area Code | (609) | |
Local Phone Number | 561-9000 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 2,339,139 | |
Entity Central Index Key | 0001035216 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating Revenues: | ||
Utility | $ 490,219 | $ 402,616 |
Nonutility | 334,359 | 271,684 |
Total Operating Revenues | 824,578 | 674,300 |
Operating Expenses: | ||
Operations and Maintenance | 78,978 | 70,103 |
Depreciation | 33,957 | 31,812 |
Energy and Other Taxes | 4,775 | 3,983 |
Total Operating Expenses | 625,978 | 477,472 |
Operating Income | 198,600 | 196,828 |
Other Income and Expense | 2,603 | 2,068 |
Interest Charges | (31,579) | (31,459) |
Income Before Income Taxes | 169,624 | 167,437 |
Income Taxes | (40,666) | (41,769) |
Equity in Earnings of Affiliated Companies | 456 | 3,130 |
Income from Continuing Operations | 129,414 | 128,798 |
Loss from Discontinued Operations - (Net of tax benefit) | (70) | (71) |
Net Income | 129,344 | 128,727 |
Less: Income Attributable to Noncontrolling Interests | 135 | 129 |
Net Income Attributable to South Jersey Industries, Inc. | $ 129,209 | $ 128,598 |
Basic Earnings Per Common Share: | ||
Continuing Operations (in dollars per share) | $ 1.10 | $ 1.28 |
Discontinued Operations (in dollars per share) | 0 | 0 |
Net Income (in dollars per share) | 1.10 | 1.28 |
Less: income attributable to noncontrolling interests (in dollars per share) | $ 0 | $ 0 |
Average Shares of Common Stock Outstanding - Basic (in shares) | 118,167 | 100,845 |
Diluted Earnings per Common Share: | ||
Continuing Operations (in dollars per share) | $ 1.08 | $ 1.26 |
Discontinued Operations (in dollars per share) | 0 | 0 |
Net Income (in dollars per share) | 1.08 | 1.26 |
Subtract/Add: Income (loss) attributable to noncontrolling interests (in dollars per share) | $ 0 | $ 0 |
Average Shares of Common Stock Outstanding - Diluted (in shares) | 119,747 | 101,937 |
Utility | ||
Operating Expenses: | ||
Cost of Sales - (Excluding depreciation and amortization) | $ 200,504 | $ 126,513 |
Nonutility | ||
Operating Expenses: | ||
Cost of Sales - (Excluding depreciation and amortization) | $ 307,764 | $ 245,061 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 129,344 | $ 128,727 |
Other Comprehensive Income - Net of Tax: | ||
Reclassification of Unrealized Gain on Derivatives - Other to Net Income, net of tax | 9 | 8 |
Other Comprehensive Income - Net of Tax | 9 | 8 |
Comprehensive Income | 129,353 | 128,735 |
Less: Comprehensive Income Attributable to Noncontrolling Interests | 135 | 129 |
Comprehensive Income Attributable to South Jersey Industries, Inc. | $ 129,218 | $ 128,606 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other Comprehensive Income - Net of Tax: | ||
Reclassification of unrealized gain on derivatives - other to net income, net of tax | $ (4) | $ (4) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Cash Flows [Abstract] | ||
Net Cash Provided by Operating Activities | $ 306,957 | $ 198,463 |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (121,473) | (105,380) |
Investment in Contract Receivables | (5,704) | (6,166) |
Proceeds from Contract Receivables | 3,427 | 3,370 |
Investment in Affiliates | (20,769) | (196) |
Return of Investment in Affiliates | 4,000 | 0 |
Advances to Affiliates | (12,105) | 0 |
Net Repayment of Notes Receivable - Affiliates | 0 | 311 |
Divestiture Working Capital Settlement | 0 | (267) |
Investment in Subsidiary, Net of Cash Acquired | (5,660) | 0 |
Other | 0 | (4,000) |
Net Cash Used in Investing Activities | (158,284) | (112,328) |
Cash Flows from Financing Activities: | ||
Net Repayments of Short-Term Credit Facilities | (243,300) | (425,100) |
Proceeds from Issuance of Long-Term Debt | 0 | 300,000 |
Principal Repayments of Long-Term Debt | (2,500) | (2,500) |
Payments for Issuance of Long-Term Debt | 0 | (9,108) |
Proceeds from Sale of Common Stock | 100,380 | 42,272 |
Payments for the Issuance of Common Stock | 0 | (1,662) |
Capital Distributions to Noncontrolling Interests in Subsidiaries | (130) | 0 |
Capital Contributions of Noncontrolling Interests in Subsidiaries | 43 | 0 |
Net Cash Used in Financing Activities | (145,507) | (96,098) |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 3,166 | (9,963) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 29,440 | 41,831 |
Cash, Cash Equivalents and Restricted Cash at End of Period | $ 32,606 | $ 31,868 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment: | ||
Utility Plant, at original cost | $ 5,775,603 | $ 5,682,805 |
Accumulated Depreciation | (997,976) | (975,619) |
Nonutility Property and Equipment, at cost | 262,704 | 240,503 |
Accumulated Depreciation | (37,342) | (35,367) |
Property, Plant and Equipment - Net | 5,002,989 | 4,912,322 |
Investments: | ||
Available-for-Sale Securities | 37 | 37 |
Restricted | 84 | 686 |
Investment in Affiliates | 53,884 | 38,509 |
Total Investments | 54,005 | 39,232 |
Current Assets: | ||
Cash and Cash Equivalents | 32,522 | 28,754 |
Accounts Receivable | 407,313 | 343,835 |
Unbilled Revenues | 74,296 | 87,357 |
Provision for Uncollectibles | (46,969) | (41,763) |
Notes Receivable - Affiliates | 2,995 | 5,695 |
Natural Gas in Storage, average cost | 19,613 | 59,744 |
Materials and Supplies, average cost | 1,082 | 1,053 |
Prepaid Taxes | 12,100 | 33,977 |
Derivatives - Energy Related Assets | 150,133 | 95,041 |
Other Prepayments and Current Assets | 24,271 | 25,269 |
Total Current Assets | 677,356 | 638,962 |
Regulatory and Other Noncurrent Assets: | ||
Regulatory Assets | 624,229 | 672,416 |
Derivatives - Energy Related Assets | 52,102 | 22,488 |
Notes Receivable - Affiliates | 79,080 | 64,254 |
Contract Receivables | 47,103 | 45,339 |
Goodwill | 706,960 | 706,960 |
Other | 213,002 | 206,699 |
Total Regulatory and Other Noncurrent Assets | 1,722,476 | 1,718,156 |
Total Assets | 7,456,826 | 7,308,672 |
Equity: | ||
Common Stock | 153,009 | 146,675 |
Premium on Common Stock | 1,653,313 | 1,559,060 |
Treasury Stock (at par) | (255) | (287) |
Accumulated Other Comprehensive Loss | (26,720) | (26,729) |
Retained Earnings | 403,244 | 310,433 |
Total South Jersey Industries, Inc. Equity | 2,182,591 | 1,989,152 |
Noncontrolling Interests | 10,337 | 10,289 |
Total Equity | 2,192,928 | 1,999,441 |
Long-Term Debt | 3,187,571 | 3,189,009 |
Total Capitalization | 5,380,499 | 5,188,450 |
Current Liabilities: | ||
Notes Payable | 90,700 | 334,000 |
Current Portion of Long-Term Debt | 66,076 | 66,076 |
Accounts Payable | 358,632 | 330,164 |
Customer Deposits and Credit Balances | 26,581 | 40,355 |
Environmental Remediation Costs | 37,506 | 40,905 |
Taxes Accrued | 7,844 | 4,937 |
Derivatives - Energy Related Liabilities | 93,458 | 60,002 |
Deferred Contract Revenues | 532 | 753 |
Derivatives - Other Current | 435 | 568 |
Dividends Payable | 36,398 | 0 |
Interest Accrued | 37,580 | 23,611 |
Other Current Liabilities | 53,049 | 54,311 |
Total Current Liabilities | 808,791 | 955,682 |
Deferred Credits and Other Noncurrent Liabilities: | ||
Deferred Income Taxes - Net | 241,220 | 198,901 |
Environmental Remediation Costs | 123,109 | 125,176 |
Asset Retirement Obligations | 231,113 | 229,030 |
Derivatives - Energy Related Liabilities | 34,681 | 16,079 |
Derivatives - Other Noncurrent | 5,582 | 7,432 |
Regulatory Liabilities | 443,639 | 398,951 |
Other | 188,192 | 188,971 |
Total Deferred Credits and Other Noncurrent Liabilities | 1,267,536 | 1,164,540 |
Commitments and Contingencies (Note 11) | ||
Total Capitalization and Liabilities | $ 7,456,826 | $ 7,308,672 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Total | Total South Jersey Industries, Inc. Equity | Common Stock | Premium on Common Stock | Treasury Stock | AOCL | Retained Earnings | NCI |
Beginning balance at Dec. 31, 2020 | $ 1,666,876 | $ 1,660,881 | $ 125,740 | $ 1,218,000 | $ (321) | $ (38,216) | $ 355,678 | $ 5,995 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | 128,727 | 128,598 | 128,598 | 129 | ||||
Other Comprehensive Income, Net of Tax | 8 | 8 | 8 | |||||
Common Stock Issued or Granted Through Equity Offering or Stock Plans | 40,303 | 40,303 | 2,475 | 37,771 | 57 | |||
Contract Liability Adjustment (see Note 4) | (62,219) | (62,219) | (62,219) | |||||
Cash Dividends Declared - Common Stock | (30,453) | (30,453) | (30,453) | |||||
Ending balance at Mar. 31, 2021 | 1,743,242 | 1,737,118 | 128,215 | 1,193,552 | (264) | (38,208) | 453,823 | 6,124 |
Beginning balance at Dec. 31, 2021 | 1,999,441 | 1,989,152 | 146,675 | 1,559,060 | (287) | (26,729) | 310,433 | 10,289 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income | 129,344 | 129,209 | 129,209 | 135 | ||||
Other Comprehensive Income, Net of Tax | 9 | 9 | 9 | |||||
Common Stock Issued or Granted Through Equity Offering or Stock Plans | 100,619 | 100,619 | 6,334 | 94,253 | 32 | |||
Cash Dividends Declared - Common Stock | (36,398) | (36,398) | (36,398) | |||||
Capital Distributions to Noncontrolling Interests in Subsidiaries | (130) | (130) | ||||||
Capital Contributions of Noncontrolling Interest in Subsidiary | 43 | 43 | ||||||
Ending balance at Mar. 31, 2022 | $ 2,192,928 | $ 2,182,591 | $ 153,009 | $ 1,653,313 | $ (255) | $ (26,720) | $ 403,244 | $ 10,337 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared (in dollars per share) | $ 0.310 | $ 0.303 |
South Jersey Gas Company Statem
South Jersey Gas Company Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating Revenues: | ||
Revenues | $ 824,578 | $ 674,300 |
Operating Expenses: | ||
Operations and Maintenance | 78,978 | 70,103 |
Depreciation | 33,957 | 31,812 |
Energy and Other Taxes | 4,775 | 3,983 |
Total Operating Expenses | 625,978 | 477,472 |
Total Operating Income | 198,600 | 196,828 |
Other Income and Expense | 2,603 | 2,068 |
Interest Charges | (31,579) | (31,459) |
Income Before Income Taxes | 169,624 | 167,437 |
Income Taxes | (40,666) | (41,769) |
Net Income | 129,344 | 128,727 |
South Jersey Gas Company | ||
Operating Revenues: | ||
Revenues | 322,263 | 251,399 |
Operating Expenses: | ||
Cost of Sales - (Excluding depreciation and amortization) | 129,868 | 74,537 |
Operations and Maintenance | 44,226 | 37,268 |
Depreciation | 20,467 | 19,208 |
Energy and Other Taxes | 2,000 | 1,544 |
Total Operating Expenses | 196,561 | 132,557 |
Total Operating Income | 125,702 | 118,842 |
Other Income and Expense | 1,539 | 1,615 |
Interest Charges | (9,723) | (9,725) |
Income Before Income Taxes | 117,518 | 110,732 |
Income Taxes | (28,876) | (27,114) |
Net Income | $ 88,642 | $ 83,618 |
South Jersey Gas Company Stat_2
South Jersey Gas Company Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net Income | $ 129,344 | $ 128,727 |
Other Comprehensive Income - Net of Tax: | ||
Reclassification of Unrealized Gain on Derivatives - Other to Net Income, net of tax | 9 | 8 |
Other Comprehensive Income, Net of Tax | 9 | 8 |
Comprehensive Income | 129,353 | 128,735 |
South Jersey Gas Company | ||
Net Income | 88,642 | 83,618 |
Other Comprehensive Income - Net of Tax: | ||
Reclassification of Unrealized Gain on Derivatives - Other to Net Income, net of tax | 9 | 8 |
Other Comprehensive Income, Net of Tax | 9 | 8 |
Comprehensive Income | $ 88,651 | $ 83,626 |
South Jersey Gas Company Stat_3
South Jersey Gas Company Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Reclassification of unrealized gain on derivatives - other to net income, net of tax | $ (4) | $ (4) |
South Jersey Gas Company | ||
Reclassification of unrealized gain on derivatives - other to net income, net of tax | $ (4) | $ (4) |
South Jersey Gas Company Stat_4
South Jersey Gas Company Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flows from Operating Activities: | ||
Net Cash Provided by Operating Activities | $ 306,957 | $ 198,463 |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (121,473) | (105,380) |
Investment in Contract Receivables | (5,704) | (6,166) |
Proceeds from Contract Receivables | 3,427 | 3,370 |
Net Cash Used in Investing Activities | (158,284) | (112,328) |
Cash Flows from Financing Activities: | ||
Net Repayments of Short-Term Credit Facilities | (243,300) | (425,100) |
Principal Repayments of Long-Term Debt | (2,500) | (2,500) |
Payments for Issuance of Long-Term Debt | 0 | (9,108) |
Net Cash Used in Financing Activities | (145,507) | (96,098) |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | 3,166 | (9,963) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 29,440 | 41,831 |
Cash, Cash Equivalents and Restricted Cash at End of Period | 32,606 | 31,868 |
South Jersey Gas Company | ||
Cash Flows from Operating Activities: | ||
Net Cash Provided by Operating Activities | 153,136 | 125,284 |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (48,613) | (61,437) |
Investment in Contract Receivables | (5,528) | (6,166) |
Proceeds from Contract Receivables | 3,427 | 3,370 |
Net Cash Used in Investing Activities | (50,714) | (64,233) |
Cash Flows from Financing Activities: | ||
Net Repayments of Short-Term Credit Facilities | (100,700) | (47,500) |
Principal Repayments of Long-Term Debt | (2,500) | (2,500) |
Payments for Issuance of Long-Term Debt | 0 | (9) |
Net Cash Used in Financing Activities | (103,200) | (50,009) |
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | (778) | 11,042 |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 4,046 | 6,424 |
Cash, Cash Equivalents and Restricted Cash at End of Period | $ 3,268 | $ 17,466 |
South Jersey Gas Company Balanc
South Jersey Gas Company Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Utility Plant, at original cost | $ 5,775,603 | $ 5,682,805 |
Accumulated Depreciation | (997,976) | (975,619) |
Investments: | ||
Restricted Investments | 84 | 686 |
Total Investments | 54,005 | 39,232 |
Current Assets: | ||
Cash and Cash Equivalents | 32,522 | 28,754 |
Accounts Receivable | 407,313 | 343,835 |
Provision for Uncollectibles | (46,969) | (41,763) |
Natural Gas in Storage, average cost | 19,613 | 59,744 |
Materials and Supplies, average cost | 1,082 | 1,053 |
Prepaid Taxes | 12,100 | 33,977 |
Derivatives - Energy Related Assets | 150,133 | 95,041 |
Other Prepayments and Current Assets | 24,271 | 25,269 |
Total Current Assets | 677,356 | 638,962 |
Regulatory and Other Noncurrent Assets: | ||
Regulatory Assets | 624,229 | 672,416 |
Contract Receivables | 47,103 | 45,339 |
Derivatives - Energy Related Assets | 52,102 | 22,488 |
Other | 213,002 | 206,699 |
Total Regulatory and Other Noncurrent Assets | 1,722,476 | 1,718,156 |
Total Identifiable Assets | 7,456,826 | 7,308,672 |
Equity: | ||
Common Stock | 153,009 | 146,675 |
Premium on Common Stock | 1,653,313 | 1,559,060 |
Accumulated Other Comprehensive Loss | (26,720) | (26,729) |
Retained Earnings | 403,244 | 310,433 |
Total South Jersey Industries, Inc. Equity | 2,182,591 | 1,989,152 |
Long-Term Debt | 3,187,571 | 3,189,009 |
Total Capitalization | 5,380,499 | 5,188,450 |
Current Liabilities: | ||
Notes Payable | 90,700 | 334,000 |
Current Portion of Long-Term Debt | 66,076 | 66,076 |
Derivatives - Energy Related Liabilities | 93,458 | 60,002 |
Derivatives - Other Current | 435 | 568 |
Customer Deposits and Credit Balances | 26,581 | 40,355 |
Environmental Remediation Costs | 37,506 | 40,905 |
Taxes Accrued | 7,844 | 4,937 |
Interest Accrued | 37,580 | 23,611 |
Other Current Liabilities | 53,049 | 54,311 |
Total Current Liabilities | 808,791 | 955,682 |
Regulatory and Other Noncurrent Liabilities: | ||
Regulatory Liabilities | 443,639 | 398,951 |
Deferred Income Taxes - Net | 241,220 | 198,901 |
Environmental Remediation Costs | 123,109 | 125,176 |
Asset Retirement Obligations | 231,113 | 229,030 |
Derivatives - Energy Related Liabilities | 34,681 | 16,079 |
Derivatives - Other Noncurrent | 5,582 | 7,432 |
Other | 188,192 | 188,971 |
Total Regulatory and Other Noncurrent Liabilities | 1,267,536 | 1,164,540 |
Commitments and Contingencies (Note 11) | ||
Total Capitalization and Liabilities | 7,456,826 | 7,308,672 |
South Jersey Gas Company | ||
Assets | ||
Utility Plant, at original cost | 3,659,722 | 3,613,360 |
Accumulated Depreciation | (672,148) | (656,829) |
Property, Plant and Equipment - Net | 2,987,574 | 2,956,531 |
Investments: | ||
Restricted Investments | 34 | 686 |
Total Investments | 34 | 686 |
Current Assets: | ||
Cash and Cash Equivalents | 3,234 | 3,360 |
Accounts Receivable | 174,489 | 125,848 |
Accounts Receivable - Related Parties | 3,840 | 7,591 |
Unbilled Revenues | 40,977 | 43,236 |
Provision for Uncollectibles | (28,366) | (25,166) |
Natural Gas in Storage, average cost | 6,296 | 23,143 |
Materials and Supplies, average cost | 606 | 606 |
Prepaid Taxes | 7,825 | 17,252 |
Derivatives - Energy Related Assets | 32,804 | 9,396 |
Other Prepayments and Current Assets | 14,537 | 13,413 |
Total Current Assets | 256,242 | 218,679 |
Regulatory and Other Noncurrent Assets: | ||
Regulatory Assets | 429,882 | 482,745 |
Contract Receivables | 46,861 | 45,247 |
Derivatives - Energy Related Assets | 440 | 507 |
Other | 63,340 | 63,502 |
Total Regulatory and Other Noncurrent Assets | 540,523 | 592,001 |
Total Identifiable Assets | 3,784,373 | 3,767,897 |
Equity: | ||
Common Stock | 5,848 | 5,848 |
Premium on Common Stock | 505,244 | 505,244 |
Accumulated Other Comprehensive Loss | (22,967) | (22,976) |
Retained Earnings | 1,080,520 | 991,878 |
Total South Jersey Industries, Inc. Equity | 1,568,645 | 1,479,994 |
Long-Term Debt | 1,008,396 | 1,010,727 |
Total Capitalization | 2,577,041 | 2,490,721 |
Current Liabilities: | ||
Notes Payable | 7,300 | 108,000 |
Current Portion of Long-Term Debt | 31,084 | 31,084 |
Accounts Payable - Commodity | 41,259 | 31,846 |
Accounts Payable - Other | 44,004 | 33,162 |
Accounts Payable - Related Parties | 5,608 | 12,901 |
Derivatives - Energy Related Liabilities | 595 | 2,520 |
Derivatives - Other Current | 435 | 568 |
Customer Deposits and Credit Balances | 15,216 | 25,232 |
Environmental Remediation Costs | 22,643 | 27,575 |
Taxes Accrued | 8,194 | 3,615 |
Interest Accrued | 14,882 | 11,604 |
Other Current Liabilities | 17,180 | 11,365 |
Total Current Liabilities | 208,400 | 299,472 |
Regulatory and Other Noncurrent Liabilities: | ||
Regulatory Liabilities | 217,866 | 222,411 |
Deferred Income Taxes - Net | 473,400 | 443,402 |
Environmental Remediation Costs | 62,827 | 64,389 |
Asset Retirement Obligations | 104,395 | 103,371 |
Derivatives - Energy Related Liabilities | 0 | 324 |
Derivatives - Other Noncurrent | 5,582 | 7,432 |
Other | 134,862 | 136,375 |
Total Regulatory and Other Noncurrent Liabilities | 998,932 | 977,704 |
Commitments and Contingencies (Note 11) | ||
Total Capitalization and Liabilities | $ 3,784,373 | $ 3,767,897 |
South Jersey Gas Company Stat_5
South Jersey Gas Company Statements of Changes in Common Equity (Unaudited) - USD ($) $ in Thousands | Total | South Jersey Gas Company | Common StockSouth Jersey Gas Company | Premium on Common StockSouth Jersey Gas Company | AOCLSouth Jersey Gas Company | Retained EarningsSouth Jersey Gas Company |
Beginning balance at Dec. 31, 2020 | $ 1,303,726 | $ 5,848 | $ 465,244 | $ (31,606) | $ 864,240 | |
Net Income | $ 128,598 | 83,618 | 83,618 | |||
Other Comprehensive Income, Net of Tax | 8 | 8 | 8 | |||
Ending balance at Mar. 31, 2021 | 1,387,352 | 5,848 | 465,244 | (31,598) | 947,858 | |
Beginning balance at Dec. 31, 2021 | 1,989,152 | 1,479,994 | 5,848 | 505,244 | (22,976) | 991,878 |
Net Income | 129,209 | 88,642 | 88,642 | |||
Other Comprehensive Income, Net of Tax | 9 | 9 | 9 | |||
Ending balance at Mar. 31, 2022 | $ 2,182,591 | $ 1,568,645 | $ 5,848 | $ 505,244 | $ (22,967) | $ 1,080,520 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
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. • 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. ▪ 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. Marina includes the Catamaran joint venture that was entered into for the purpose of developing, owning and operating renewable energy projects, and supporting SJI's commitment to clean energy initiatives. Catamaran owns Annadale and Bronx Midco, operators of fuel cell projects in New York, in which Marina, through Catamaran, owns 93% and 92%, respectively. Catamaran also owns a solar generation site in Massachusetts, in which Marina, through Catamaran, owns 90%. The remaining ownership percentages are recorded as NCIs in the condensed consolidated financial statements. The principal wholly-owned subsidiaries of Marina are: • Marina owns, directly and through wholly-owned subsidiaries, solar energy projects in New Jersey. • ACLE, BCLE, SCLE and SXLE own landfill gas-to-energy production facilities in Atlantic, Burlington, Salem and Sussex Counties, respectively, located in New Jersey. ACLE ceased operations on September 30, 2021, while BCLE, SCLE and SXLE ceased operations on June 1, 2020. ▪ SJESP receives commissions on appliance service contracts from a third party. ▪ Midstream invests in infrastructure and other midstream projects, including the PennEast project for which development ceased in September 2021. 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 that matches end users with suppliers for the procurement of natural gas and electricity. • EnerConnex, an aggregator, broker and consultant in the retail and wholesale energy markets 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, of which SJEI previously held a 25% interest. • SJI Renewable Energy Ventures, LLC, which holds our equity interest in REV. • SJI RNG Devco, LLC, which includes our renewable natural gas development rights and costs incurred in order to develop certain dairy farms, along with the Red River joint venture which was formed on March 22, 2022 (see Note 16). MERGER AGREEMENT - On February 23, 2022, SJI announced that it had signed a Merger Agreement with NJ Boardwalk Holdings LLC, a Delaware limited liability company (“Parent”) and Boardwalk Merger Sub, Inc., a New Jersey corporation and a wholly-owned subsidiary of Parent (“Merger Sub”), pursuant to which, Merger Sub will be merged with and into the Company (the "Merger"), with the Company surviving the Merger as a wholly-owned subsidiary of Parent. Each of Parent and Merger Sub are affiliates of Infrastructure Investments Fund. Following completion of the transaction, SJI intends to delist its shares from the New York Stock Exchange. At the effective time of the Merger (the “Effective Time”), each share of SJI’s common stock issued and outstanding immediately before the Effective Time will be converted into the right to receive $36.00 in cash, without interest. SJI’s shareholders will be asked to vote on the adoption of the Merger Agreement and the Merger at the Company's annual shareholders' meeting to be held on May 10, 2022. The closing of the Merger is subject to customary conditions, including the receipt of regulatory approvals by the BPU, and that the Merger Agreement be adopted by at least a majority of the votes cast by shareholders entitled to vote thereon at the meeting. The Merger Agreement places limitations on SJI’s ability to engage in certain types of transactions without Parent’s consent between the signing of the Merger Agreement and the Effective Time, including limitations on SJI’s ability to issue dividends other than consistent with its past practices, acquire other businesses, issue equity of SJI (except in the ordinary course pursuant to equity compensation plans) and, subject to certain exceptions, incurring certain indebtedness for borrowed money. The Merger Agreement contains certain termination rights, including the right of SJI or Parent to terminate if the Merger is not consummated within 12 months after signing, subject to certain extensions and exceptions. Under the terms of the Merger Agreement, the Company may be required to pay Parent a termination fee of $140.0 million if the Merger Agreement is terminated under certain specified circumstances. The Merger Agreement additionally provides that Parent pay the Company a termination fee of $255.0 million under certain specified circumstances. In connection with the Merger Agreement, two complaints have been filed as individual actions in United States District Courts. See Note 11. On April 11, 2022, the Company filed a definitive proxy statement with the SEC in connection with the Merger. On May 3, 2022, the Company filed additional proxy soliciting materials related to the Merger. On April 25, 2022, the Company filed a joint petition, together with Parent and Merger Sub, to the BPU seeking authority for approval of an indirect change of control of ETG and SJG, effectuated by the Merger Agreement. This matter is pending BPU approval. 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. 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 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, 2021. There were no significant changes in or changes in the application of the Company’s significant or critical accounting policies or estimation procedures for the three months ended March 31, 2022 as compared with the significant accounting policies described in the Company’s audited consolidated financial statements for the year ended December 31, 2021. ESTIMATES AND ASSUMPTIONS - The condensed consolidated financial statements were prepared to conform with GAAP, which requires management to make 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, legal contingencies, pension and other postretirement benefit costs, revenue recognition, goodwill, evaluation of equity method investments for other-than-temporary impairment, income taxes, and allowance for credit losses. Estimates may be subject to future uncertainties, including the continued evolution of the COVID-19 pandemic and its impact on our operations and economic conditions, which could affect the fair value of the ETG reporting unit and its goodwill balance (see Note 17), as well as the allowance for credit losses and the total impact and potential recovery of incremental costs associated with COVID-19 (see Notes 5 and 8, respectively). IMPAIRMENT OF LONG-LIVED ASSETS - See Note 1 to the Consolidated Financial Statements under "Impairment of Long-Lived Assets" in Item 8 of the Form 10-K for the year ended December 31, 2021 for additional information regarding the Company's policy on impairments of long-lived assets. No impairments of long-lived assets were identified at SJI or SJG for the three months ended March 31, 2022 and 2021, respectively. REGULATION - The Utilities are subject to the rules and regulations of the BPU . See Note 7 for a discussion of the Utilities' rate structure and regulatory actions. The Utilities maintain their accounts according to the BPU's prescribed Uniform System of Accounts. The Utilities follow the accounting for regulated enterprises prescribed by ASC 980, Regulated Operations , which 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 perio ds. See Note 8 for more information related to regulatory assets and liabilities. OPERATING REVENUES - Gas and electric revenues are recognized in the period the commodity is delivered to customers. For retail customers (including customers of 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 15. 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, and operating revenues for SJRG include realized and unrealized gains and losses on energy-related derivative instruments. 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 commissions received related to AEP and EnerConnex energy procurement service contracts, on a monthly basis as the commissions are earned. Marina recognizes revenue for renewable energy projects when output is generated and delivered to the customer, and 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 the delivery of gas and electricity being considered an essential service, with delivery to customers continuing in a timely manner with no delays or operational shutdowns taking place to date. To the extent that the pandemic does impact our ability to deliver in the future, operating revenues could be impacted. Currently, the impact of the pandemic on the collectability of our accounts receivable continues to be monitored, but such receivables have traditionally been included in rate recovery (see Note 8). 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 . Certain deferred income taxes are recorded with offsetting regulatory assets or liabilities by the Company to recognize that income taxes will be recovered or refunded through future rates. A valuation allowance is recorded when it is more likely than not that any of SJI's or SJG's deferred tax assets will not be realized. As of both March 31, 2022 and December 31, 2021, SJI had a total federal and state valuation allowance of $22.5 million recorded on the condensed consolidated balance sheets. See Note 4 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, 2021 for information related to these valuation allowances. SJG believes that they will generate sufficient future taxable income to realize the income tax benefits related to their net deferred tax assets. The Company evaluates certain tax benefits that have been recorded in the financial statements for uncertainties. In 2021, SJG recorded a reserve of $13.9 million for a portion of tax benefits related to tax positions taken in prior years. The reserve is recorded in Other Noncurrent Liabilities in the condensed consolidated balance sheets as of both March 31, 2022 and December 31, 2021. The amount of income taxes we pay is subject to ongoing audits by federal and state tax authorities, which could result in proposed assessments. Future results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period any assessments are determined or resolved or as such statutory audit periods are closed. We are not aware of any other matters that would result in significant changes to the amount of unrecognized income tax benefits reflected on the condensed consolidated balance sheets as of March 31, 2022. 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. The Company recognizes ITC on eligible assets in the year in which the project commences commercial operations. Among other requirements, such credits require projects to have commenced construction by a certain date. Accordingly, projects are eligible for a 26% ITC for projects that commence construction in 2020-2022, 22% for projects that commence construction in 2023, and 10% for projects that commence construction thereafter. ITCs recorded during the three months ended March 31, 2022 were not material. No ITC was recorded during the three months ended March 31, 2021. GOODWILL - See Note 17. LEASES - There have been no significant changes to the nature or balances of the Company's leases since December 31, 2021, 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, 2021. 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 2020-04: Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting ASU 2021-01: Reference Rate Reform (Topic 848) The amendments in ASU 2020-04 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. The amendments in ASU 2021-01 clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to changes in the interest rates used for margining, discounting, or contract price alignment for derivative instruments that are being implemented as part of the market-wide transition to new reference rates (commonly referred to as the "discounting transition"). 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. Adoption of this guidance did not have a material impact on the financial statement results of SJI or SJG. 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 Adoption of this guidance did not have a material impact on the financial statement results of SJI or SJG. Standards Not Yet Effective: Standard Description Date of Adoption Application Effect on the Financial Statements of SJI and SJG ASU 2021-10: Government Assistance (ASC 832): Disclosures by Business Entities about Government Assistance This ASU requires disclosure in the notes to annual financial statements of government financial assistance from local, (city, town, county, municipal), regional, and federal governments and entities related to those governments. Required disclosure for government assistance transactions includes: 1) information about the nature of transactions and the related accounting policy used to account for the transactions; 2) the line items on the balance sheet and income statement that are affected by the transactions and the amounts applicable to each financial statement line item; and 3) significant terms and conditions of the transactions, including commitments and contingencies. Annual periods beginning January 1, 2022; early adoption is permitted. Either (1) prospectively to all transactions that are reflected in financial statements at the date of initial application and to all transactions that are entered into after adoption (2) retrospectively to those transactions Since this ASU is disclosure only, adoption will not have an impact on the financial statement results of SJI or SJG. Management is currently determining the impact that adoption of this guidance will have on the disclosures of SJI and SJG. ASU 2021-08: Business Combinations (ASC 805): Accounting for Contract Assets and Contract Liabilities From Contracts With Customers The amendments to ASC 805 in this ASU require an acquirer to account for revenue contracts acquired in a business combination in accordance with ASC 606 as if it had originated the contracts. The acquirer may assess how the acquiree applied ASC 606 to determine what to record for the acquired contracts. The standard also provides practical expedients for acquirers when recognizing and measuring acquired contract assets and contract liabilities from a business combination. January 1, 2023; early adoption is permitted, including adoption in an interim period Prospectively to business combinations occurring on or after the effective date of the amendments These amendments have not yet been adopted and management is currently evaluating whether to adopt this amendment prior to the effective date. |
STOCK-BASED COMPENSATION PLAN
STOCK-BASED COMPENSATION PLAN | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION PLAN | STOCK-BASED COMPENSATION PLAN: Under SJI's Omnibus Equity Compensation Plan (Plan), shares, stock appreciation rights, and options may be issued to SJI’s officers (Officers), non-employee directors (Directors) and other key employees. Grants to Officers and other key employees - 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 grants containing market-based performance targets use SJI's TSR relative to a peer group to measure performance. As these TSR-related performance-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 market goals. The fair value of TSR-related performance-based restricted stock awards on the date of grant is estimated using a Monte Carlo simulation model. Performance-based grants containing earnings-based performance targets use pre-defined CEGR goals for SJI to measure performance. As 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. Grants to Directors - No restricted shares were granted to Directors during the three months ended March 31, 2022 and March 31, 2021. 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 at March 31, 2022, 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 - 2020 - TSR 31,957 $ 25.51 34.8 % 0.21 % 2020 - CEGR, Time 80,644 $ 25.19 N/A N/A 2021 - TSR 35,091 $ 28.11 39.9 % 0.27 % 2021 - CEGR, Time 171,526 $ 25.33 N/A N/A 2022 - TSR 37,608 $ 35.05 43.6 % 1.83 % 2022 - CEGR, Time 147,327 $ 35.05 N/A N/A Directors - 2021 54,419 $ 24.75 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 twelve month 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 months ended March 31, 2022 and 2021 (in thousands): Three Months Ended 2022 2021 Officers & Key Employees $ 1,317 $ 1,264 Directors 112 10 Total Cost 1,429 1,274 Capitalized (38) (23) Net Expense $ 1,391 $ 1,251 As of March 31, 2022, there was $10.4 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 2.2 years. The following table summarizes information regarding restricted stock award activity for SJI during the three months ended March 31, 2022, excluding accrued dividend equivalents: Officers and Other Key Employees Directors Weighted Nonvested Shares Outstanding, January 1, 2022 492,475 54,419 $ 26.72 Granted 184,935 — $ 35.05 Cancelled/Forfeited (71,775) — $ 25.86 Vested (101,482) — $ 30.25 Nonvested Shares Outstanding, March 31, 2022 504,153 54,419 $ 28.69 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. 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. A change in control could result in such shares becoming non-forfeitable or immediately payable in cash. At the Effective Time of the Merger, each share granted and outstanding under the Plan immediately before the Effective Time will be converted into the right to receive $36.00 in cash, without interest. During the three months ended March 31, 2022, SJI issued 70,872 shares to its Officers and other key employees at a market value of $2.3 million. During the three months ended March 31, 2021, SJI issued 110,891 shares at a market value of $2.7 million. These issued shares include shares deferred for payout in prior periods. |
AFFILIATIONS, DISCONTINUED OPER
AFFILIATIONS, DISCONTINUED OPERATIONS AND RELATED-PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2022 | |
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. See Note 3 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, 2021 for a timeline of events related to PennEast, including the determination by the PennEast partners that further development of the project is no longer supported, and thus all further development of the project has ceased. 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; however, it owns cogeneration, long-lived assets for which Energenic has been pursuing project development opportunities. Marina has notes related to Energenic; such notes are secured by the cogeneration assets. See Note 3 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, 2021 for more information regarding these assets and notes, including the impairment charge recorded in the fourth quarter of 2021 due to a determination that future development of a project is no longer probable. 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 SJEX 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 $11.6 million and $7.4 million for the three months ended March 31, 2022 and 2021, respectively. REV - SJI Renewable Energy Ventures, LLC has a 35% equity interest in REV, an LNG distributor and developer of LNG and RNG assets and projects. Red River - SJI RNG Devco, LLC has an 80% equity interest in Red River, an entity that processes raw biogas derived from agricultural feedstock into renewable biomethane for pipeline injection. AFFILIATE TRANSACTIONS - S JI made net investments in and net advances to unconsolidated affiliates of $28.9 million for the three months ended March 31, 2022; net investments in and net advances to unconsolidated affiliates for the three months ended March 31, 2021 were not material. As of March 31, 2022 and December 31, 2021, the outstanding balance of Notes Receivable – Affiliates was $82.1 million and $69.9 million, respectively. These Notes Receivable-Affiliates balances are comprised of: • As of March 31, 2022 and December 31, 2021, $77.4 million and $62.6 million, respectively, of the notes are related to REV, which accrue interest at variable rates. • As of both March 31, 2022 and December 31, 2021, $2.0 million of the notes are related to Energenic. Such notes are secured by Energenic's cogeneration assets for energy service projects and are to be repaid through 2025, although the Company does not expect to realize amounts above its share of the remaining fair value of Energenic's cogeneration assets, and thus the Company does not accrue interest. Current losses at Energenic have been offset against the Notes Receivable – Affiliates balance in recent years as our investment in the Energenic affiliate has been reduced to zero as a result of previous losses. • As of March 31, 2022 and December 31, 2021, $2.7 million and $5.3 million, respectively, of unsecured notes which 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 March 31, 2022 and December 31, 2021, SJI had a net asset of approximately $53.9 million and $38.5 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 March 31, 2022 and December 31, 2021 is limited to its combined investments in these entities, which includes related Notes Receivable-Affiliates, in the aggregate amount of $136.0 million and $108.5 million, respectively. DISCONTINUED OPERATIONS - There have been no significant changes to the nature or balances of SJI's discontinued operations since December 31, 2021, which are defined and described in Note 3 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, 2021. GUARANTEES - SJI has issued guarantees to third parties on behalf of its consolidated subsidiaries. See Note 11. SJI RELATED-PARTY TRANSACTIONS - On April 1, 2022, SJRG and ETG entered into an AMA whereby SJRG manages the pipeline capacity of ETG. This AMA expires on March 31, 2024. Under the AMA, SJRG pays ETG an annual fee of $3.6 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. SJG RELATED-PARTY TRANSACTIONS - There have been no significant changes in the nature of SJG’s related-party transactions since December 31, 2021. See Note 3 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, 2021 for a description of related parties and 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 2022 2021 Operating Revenues/Affiliates: SJRG $ 8,280 6,329 Other 21 21 Total Operating Revenues/Affiliates $ 8,301 $ 6,350 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 2022 2021 Costs of Sales/Affiliates (Excluding depreciation and amortization) SJRG $ 80 $ 1,367 Operations Expense/Affiliates: SJI (parent company only) $ 6,372 $ 5,564 SJIU 1,006 960 Millennium 930 866 Other 18 73 Total Operations Expense/Affiliates $ 8,326 $ 7,463 |
COMMON STOCK
COMMON STOCK | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
COMMON STOCK | COMMON STOCK: The following shares were issued and outstanding for SJI: 2022 Beginning Balance, January 1 117,340,493 New Issuances During the Period: Settlement of Equity Forward Sale Agreement 4,996,062 Stock-Based Compensation Plan 70,872 Ending Balance, March 31 122,407,427 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. There were 2,339,139 shares of SJG's common stock (par value $2.50 per share) outstanding as of March 31, 2022. SJG did not issue any new shares during the period. SJIU owns all of the outstanding common stock of SJG. On March 22, 2021, SJI offered 10,250,000 shares of its common stock, par value $1.25 per share, at a public offering price of $22.25 per share, with 1,899,859 shares issued in March 2021. See Note 6 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, 2021 for a description of this transaction and the additional issuances that occurred in 2021. On March 18, 2022, the remaining 4,996,062 forward shares were issued under the forward sale agreement for proceeds of $100.4 million, net of issuance fees that were not material. The forward price used to determine cash proceeds received by SJI was calculated based on the initial forward sale price, as adjusted for underwriting fees, interest rate adjustments as specified in the forward sale agreement and any dividends paid on our common stock during the forward period. At the Effective Time of the Merger, SJI's common stock outstanding immediately before the Effective Time will be converted into the right to receive $36.00 in cash, without interest. EQUITY AND CONVERTIBLE UNITS - See Note 6 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, 2021 for a description of the issuances of equity units that occurred in March 2021. Total interest recorded related to the equity units during the three months ended March 31, 2022 was $0.2 million related to the contract adjustment liabilities to the holders of the equity units and is recorded within Interest Charges on the condensed consolidated statements of income. The contract adjustment liabilities are recorded in Other Current and Noncurrent Liabilities on the condensed consolidated balance sheet and were $23.8 million and $28.9 million, respectively, as of March 31, 2022, and $23.8 million and $34.6 million, respectively, as of December 31, 2021. The convertible units consist of the following (in thousands): March 31, 2022 December 31, 2021 Principal amount: 2021 Series B Remarketable Junior Subordinated Notes due 2029 Principal (A) $ 335,000 $ 335,000 Unamortized debt discount and issuance costs (A) 8,808 9,110 Net carrying amount $ 326,192 $ 325,890 Carrying amount of the equity component (B) $ — $ — (A) Included in the condensed consolidated balance sheets within Long-Term Debt. (B) There is no equity portion as of March 31, 2022 and December 31, 2021 for these Notes. During the three months ended March 31, 2022 and 2021, the Company reco gnized $4.9 million an d $2.7 million, respectively, of co upon interest expense, all of which was included in Interest Charges on the condens ed consolidated statements of income. During those periods, the amortization of debt discount and issuance costs was not material. As of March 31, 2022, the effective interest rate was 2.1% on these Notes. SJI's EPS — SJI's basic EPS is based on the weighted-average number of common shares outstanding. SJI's diluted EPS includes consideration of the effect of SJI's restricted stock as discussed in Note 2, along with the impact of the Equity Units and Convertible Units discussed above, accounted for under the treasury stock method. For the three months ended March 31, 2022 and 2021, the shares required for inclusion in the denominator for the diluted EPS calculation were 1,579,626 and 1,091,313, respectively. 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 the first three months of 2022 or 2021. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2022 | |
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): March 31, 2022 Balance Sheet Line Item SJI SJG Cash and Cash Equivalents $ 32,522 $ 3,234 Restricted Investments 84 34 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 32,606 $ 3,268 December 31, 2021 Balance Sheet Line Item SJI SJG Cash and Cash Equivalents $ 28,754 $ 3,360 Restricted Investments 686 686 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 29,440 $ 4,046 The carrying amounts of the Restricted Investments for both SJI and SJG approximate their fair values at March 31, 2022 and December 31, 2021, which would be included in Level 1 of the fair value hierarchy (see Note 13). ALLOWANCE FOR CREDIT LOSSES - Accounts receivable and unbilled revenues 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 for the three months ended March 31, 2022 and 2021 is as follows (in thousands): Three Months Ended March 31, 2022 2021 SJI (includes SJG and all other consolidated subsidiaries): Balance at beginning of period $ 41,763 $ 30,582 Provision for expected credit losses 2,453 2,409 Regulated assets (a) 4,044 4,134 Recoveries of accounts previously written off 79 230 Uncollectible accounts written off (1,370) (1,500) Balance at end of period $ 46,969 $ 35,855 SJG: Balance at beginning of period $ 25,166 $ 17,359 Provision for expected credit losses 1,834 1,760 Regulated assets (a) 1,752 2,194 Recoveries of accounts previously written off 42 127 Uncollectible accounts written off (428) (967) Balance at end of period $ 28,366 $ 20,473 (a) Deferral of incremental costs related to the COVID-19 pandemic as a regulatory asset, resulting from a July 2, 2020 BPU Order (see Note 8). NOTES RECEIVABLE-AFFILIATES - The carrying amounts of the Note Receivable - Affiliates balances approximate their fair values at March 31, 2022 and December 31, 2021, which would be included in Level 2 of the fair value hierarchy. See Note 3 for information about these balances and Note 13 for information about the fair value hierarchy. CONTRACT 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 three In addition, as part of the EET program, SJG and ETG provide funding to customers to upgrade equipment for the purpose of promoting energy efficiency. The terms of these loans range from two There have been no material impacts to this risk of uncollectibility as a result of COVID-19. The carrying amounts of these receivables approximate their fair value at March 31, 2022 and December 31, 2021, which would be included in Level 2 of the fair value hierarchy (see Note 13). CREDIT RISK - As of March 31, 2022, there were no individual counterparties that totaled more than five percent of SJI's current and noncurrent Derivatives - Energy Related Assets. 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 March 31, 2022 and December 31, 2021, except as noted below (in thousands): March 31, 2022 December 31, 2021 SJI (includes SJG and all consolidated entities) Estimated fair values of long-term debt $ 3,384,680 $ 3,653,868 Carrying amounts of long-term debt, including current maturities (A) $ 3,253,647 $ 3,255,085 Net of: Unamortized debt issuance costs $ 37,446 $ 38,462 Unamortized debt discounts $ 5,113 $ 5,135 SJG Estimated fair values of long-term debt $ 1,047,429 $ 1,171,657 Carrying amounts of long-term debt, including current maturities $ 1,039,480 $ 1,041,811 Net of: Unamortized debt issuance costs $ 8,557 $ 8,726 (A) SJI Long-Term Debt on the condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021 includes $5.7 million and $5.6 million of finance leases, respectively. 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). |
SEGMENTS OF BUSINESS
SEGMENTS OF BUSINESS | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENTS OF BUSINESS | SEGMENTS OF BUSINESS: ASC 280 , Segment Reporting, establishes standards for reporting information about operating segments and requires that a public business enterprise report financial and descriptive information about its reportable operating segments. Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the CODM in deciding how to allocate resources and in assessing performance. The operating segments reflect the financial information regularly evaluated by the CODM, which for SJI is the Company's Chief Executive Officer. The operating segments are as follows: • SJG utility operations consist primarily of natural gas distribution to residential, commercial and industrial customers in southern New Jersey. • ETG utility operations consist primarily of natural gas distribution to residential, commercial and industrial customers in northern and central New Jersey. • Wholesale energy operations include the activities of SJRG and SJEX. • Retail services operations includes the activities of SJE, SJESP and SJEI, as well as our equity interest in Millennium. • Renewables consists of: ◦ The Catamaran joint venture, which owns Annadale and Bronx Midco, along with a solar project in Massachusetts. ◦ Solar-generation sites located in New Jersey. ◦ The activities of ACLE, BCLE, SCLE and SXLE, which have all ceased operations. • Decarbonization consists of ◦ SJI Renewables Energy Ventures, LLC, which includes our equity interest in REV, which is included in Equity in Earnings of Affiliated Companies on the condensed consolidated statements of income. ◦ SJI RNG Devco, LLC, which includes costs incurred to develop renewable natural gas operations at certain dairy farms along with the related development rights acquired in 2020. Also included here is the Red River joint venture that was formed in March 2022. • Midstream invests in infrastructure and other midstream projects, including an investment in PennEast for which development ceased in September 2021. • Corporate & Services segment includes costs related to financing, acquisitions and divestitures, and other unallocated costs. • Intersegment represents intercompany transactions among the above SJI consolidated entities. SJI groups its utility businesses under its wholly-owned subsidiary SJIU. This group consists of gas utility operations of SJG and ETG. SJI groups its nonutility operations into separate categori es: Energy Management; Energy Production; Midstream; and Corporate & Services. Energy Management includes wholesale energy and retail services. Energy Production in cludes renewables and decarbonization. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. See Note 1. Information about SJI’s operations in different reportable operating segments is presented below (in thousands). All prior periods were revised to conform to the new segment alignment noted above. Three Months Ended 2022 2021 Operating Revenues: SJI Utilities: SJG Utility Operations $ 322,263 $ 251,399 ETG Utility Operations 176,236 157,545 Subtotal SJI Utilities 498,499 408,944 Energy Management: Wholesale Energy Operations 327,497 261,910 Retail Services 2,069 3,896 Subtotal Energy Management 329,566 265,806 Energy Production: Renewables 5,356 6,423 Decarbonization — — Subtotal Energy Production 5,356 6,423 Corporate and Services 16,434 13,793 Subtotal 849,855 694,966 Intersegment Sales (25,277) (20,666) Total Operating Revenues $ 824,578 $ 674,300 Three Months Ended 2022 2021 Operating Income: SJI Utilities: SJG Utility Operations $ 125,702 $ 118,842 ETG Utility Operations 59,284 58,020 Subtotal SJI Utilities 184,986 176,862 Energy Management: Wholesale Energy Operations 17,451 17,308 Retail Services 1,179 (220) Subtotal Energy Management 18,630 17,088 Energy Production: Renewables (580) 2,700 Decarbonization (445) — Subtotal Energy Production (1,025) 2,700 Corporate and Services (3,991) 178 Total Operating Income $ 198,600 $ 196,828 Three Months Ended 2022 2021 Property Additions: SJI Utilities: SJG Utility Operations $ 51,146 $ 53,409 ETG Utility Operations 51,603 41,130 Subtotal SJI Utilities 102,749 94,539 Energy Management: Wholesale Energy Operations — — Retail Services — — Subtotal Energy Management — — Energy Production: Renewables 5,483 773 Decarbonization 17,321 836 Subtotal Energy Production 22,804 1,609 Midstream — 4 Corporate and Services 1,518 744 Total Property Additions $ 127,071 $ 96,896 March 31, 2022 December 31, 2021 Identifiable Assets: SJI Utilities: SJG Utility Operations $ 3,784,373 $ 3,767,897 ETG Utility Operations 2,852,249 2,788,465 Subtotal SJI Utilities 6,636,622 6,556,362 Energy Management: Wholesale Energy Operations 281,716 278,995 Retail Services 20,179 25,741 Subtotal Energy Management 301,895 304,736 Energy Production: Renewables 190,316 195,791 Decarbonization 195,091 138,787 Subtotal Energy Production 385,407 334,578 Midstream 4,517 8,970 Discontinued Operations 25 47 Corporate and Services 362,381 370,899 Intersegment Assets (234,021) (266,920) Total Identifiable Assets $ 7,456,826 $ 7,308,672 |
RATES AND REGULATORY ACTIONS
RATES AND REGULATORY ACTIONS | 3 Months Ended |
Mar. 31, 2022 | |
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. Except as described below, there have been no significant regulatory actions or changes to the Utilities' rate structures since December 31, 2021. 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, 2021. SJG: Effective January 1, 2022, the BPU approved the Company's June 2021 AIRP II petition, to roll into base rates $69.0 million of investments placed into service during the period of July 1, 2020 through September 30, 2021. The result was an increase in annual revenue of $6.7 million. In the first quarter of 2022: • The BPU issued an Order resolving SJG's 2021 Tax Act Rider petition, with a revised Rider H credit rate effective April 1, 2022 in order to refund approximately $11.7 million for the period beginning October 1, 2021 and ending September 30, 2022. • The BPU also approved a decrease in SJG's EET rate effective April 1, 2022, reflecting a $1.1 million decrease in revenues related to the recovery of costs of energy efficiency programs. In April 2022, SJG filed a petition with the BPU requesting a base rate revenue increase of $73.1 million, primarily to obtain a return on and of new capital investments made by SJG since the settlement of its last base rate case in 2020. The matter is pending before the BPU. ETG: In December 2021, ETG filed a petition with the BPU requesting a base rate revenue increase, which was updated in February 2022 to a requested increase of $72.9 million, primarily to obtain a return on new capital investments made by ETG since the settlement of its last base rate case in 2019. This matter is pending before the BPU. |
REGULATORY ASSETS AND REGULATOR
REGULATORY ASSETS AND REGULATORY LIABILITIES | 3 Months Ended |
Mar. 31, 2022 | |
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, 2021, 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, 2021. The Utilities' Regulatory Assets as of March 31, 2022 and December 31, 2021 consisted of the following items (in thousands): March 31, 2022 SJG ETG Total SJI Environmental Remediation Costs: Expended - Net $ 150,400 $ 21,609 $ 172,009 Liability for Future Expenditures 91,470 74,729 166,199 Deferred ARO Costs 49,311 35,519 84,830 Deferred Pension and Other Postretirement Benefit Costs - Unrecognized Prior Service Cost — 30,062 30,062 Deferred Pension and Other Postretirement Benefit Costs 47,504 813 48,317 Deferred Gas Costs - Net 369 — 369 CIP Receivable 14,522 4,215 18,737 SBC Receivable (excluding RAC) 7,637 — 7,637 Deferred Interest Rate Contracts 6,017 — 6,017 EET/EEP 16,786 3,980 20,766 AFUDC - Equity Related Deferrals 12,345 — 12,345 WNC — 1,160 1,160 Deferred COVID-19 Costs 9,401 12,604 22,005 Other Regulatory Assets 24,120 9,656 33,776 Total Regulatory Assets $ 429,882 $ 194,347 $ 624,229 December 31, 2021 SJG ETG Total SJI Environmental Remediation Costs: Expended - Net $ 151,630 $ 13,972 $ 165,602 Liability for Future Expenditures 97,964 77,830 175,794 Deferred ARO Costs 47,784 33,872 81,656 Deferred Pension and Other Postretirement Benefit Costs - Unrecognized Prior Service Cost — 30,881 30,881 Deferred Pension and Other Postretirement Benefit Costs 47,504 813 48,317 Deferred Gas Costs - Net 38,234 — 38,234 CIP Receivable 17,776 2,955 20,731 SBC Receivable (excluding RAC) 7,519 — 7,519 Deferred Interest Rate Contracts 8,002 — 8,002 EET/EEP 20,632 5,199 25,831 AFUDC - Equity Related Deferrals 12,199 — 12,199 WNC — 4,269 4,269 Deferred COVID-19 Costs 7,687 10,225 17,912 Other Regulatory Assets 25,814 9,655 35,469 Total Regulatory Assets $ 482,745 $ 189,671 $ 672,416 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, and EET/EEP, 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 as discussed in Note 15 of SJI's and SJG's Annual Report on Form 10-K for the year ended December 31, 2021. The BPU allows SJG and ETG to recover the deferred costs not recovered from insurance carriers through their RAC mechanisms over seven-year periods after the costs are incurred. DEFERRED GAS COSTS - NET - Over/under collections of gas costs are monitored through SJG's and ETG's BGSS clause. Included in SJG's balance as of March 31, 2022 and December 31, 2021 is $17.1 million and $21.3 million, respectively, of costs related to a previous pricing dispute on a long-term gas supply contract. As of June 1, 2021, SJG has begun to recover these costs from its customers through the BGSS clause. SJG’s Deferred Gas Costs - Net are in an under-recovered position, resulting in a regulatory asset as of March 31, 2022 and December 31, 2021. The decrease in these assets is primarily due to the recoveries from customers exceeding the actual gas commodity costs and changes in valuations of hedged natural gas positions. ETG's Deferred Gas Costs-Net are in an over-recovered position, resulting in a regulatory liability as of March 31, 2022 and December 31, 2021, see the Regulatory Liabilities table below. CIP RECEIVABLE - The CIP tracking mechanism at SJG adjusts earnings when the actual usage per customer experienced during the period varies from an established baseline usage per customer. For SJG, actual usage per customer was more than the established baseline during the first three months of 2022, resulting in a reduction of the regulatory asset at March 31, 2022 as compared to December 31, 2021. This is primarily the result of colder than normal weather experienced in the region. For ETG, actual usage per customer was less than the established baseline during the first three months of 2022, resulting in an increase to the regulatory asset at March 31, 2022. ETG has not begun recovering against this regulatory asset as the CIP was established on July 1, 2021. EET/EEP - The EET/EEP Regulatory Assets of SJG and ETG decreased primarily due to recoveries in excess of expenditures. WNC - The tariffs for ETG included a weather normalization clause that reduced customer bills when weather was colder than normal and increased customer bills when weather was warmer than normal. The WNC deferral ended May 31, 2021 and was replaced by the CIP effective July 1, 2021. As such, the WNC regulatory asset will continue to decrease due to collections until the balance is fully recovered. DEFERRED COVID-19 COSTS - 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. On September 14, 2021, the BPU extended this period to December 31, 2022. The Company is required to file quarterly reports with the BPU, along with a petition of recovery of such incremental costs with the BPU by December 31, 2022 or within 60 days of the close of the tracking period, whichever is later. The deferred balance is 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. As of March 31, 2022 and December 31, 2021, ETG deferred $12.6 million and $10.2 million, respectively, and SJG deferred $9.4 million and $7.7 million, respectively, specifically related to changes in payment patterns observed to date and consideration of macroeconomic factors. The Utilities have continued the suspension of disconnects for nonpayment by our customers, based on an executive order issued by the Governor of New Jersey in 2020, in which water, gas and electricity providers were barred from cutting services to New Jersey residents. On June 14, 2021, the Governor ended the shutoff moratorium effective July 1, 2021, but established a grace period that ran through the end of 2021. In December 2021, the Governor extended this grace period to March 15, 2022. During the grace period, disconnections for residential customers for nonpayment were prohibited, and low and moderate income households had until March 15, 2022 to work out how to pay back any outstanding bills. On March 25, 2022, the BPU approved an order which amended the existing customer bill of rights. These amendments require the Company to continue service for customers who submit an application for State-administered utility assistance programs prior to June 15, 2022. The Company is required to continue service through the date that the application is either approved or rejected by the respective State agency. The Utilities Regulatory Liabilities as of March 31, 2022 and December 31, 2021 consisted of the following items (in thousands): March 31, 2022 SJG ETG Total SJI Excess Plant Removal Costs $ 12,392 $ 34,826 $ 47,218 Excess Deferred Taxes 199,350 110,265 309,615 Deferred Gas Costs - Net — 75,416 75,416 Other Regulatory Liabilities 6,124 5,266 11,390 Total Regulatory Liabilities $ 217,866 $ 225,773 $ 443,639 December 31, 2021 SJG ETG Total SJI Excess Plant Removal Costs $ 12,125 $ 33,988 $ 46,113 Excess Deferred Taxes 206,902 111,003 317,905 Deferred Gas Costs - Net — 28,842 28,842 Other Regulatory Liabilities 3,384 2,707 6,091 Total Regulatory Liabilities $ 222,411 $ 176,540 $ 398,951 EXCESS DEFERRED TAXES - This liability is recognized as a result of Tax Reform enacted into law on December 22, 2017. The decrease in this regulatory liability from December 31, 2021 to March 31, 2022 is related to excess tax amounts returned to customers through customer billings. See Note 10 of SJI's and SJG's Annual Report on Form 10-K for the year ended December 31, 2021. DEFERRED GAS COSTS - NET - Over/under collections of gas costs are monitored through ETG's BGSS mechanism. 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 purchase are also included in the BGSS, subject to BPU approval, along with amounts to be returned to customers under the AMA with SJRG as discussed in Note 3 as well as Note 1 of SJI's and SJG's Annual Report on Form 10-K for the year ended December 31, 2021. The increase from December 31, 2021 to March 31, 2022 is primarily driven by the change in the value of the energy related derivative contracts as well as an increase in the amounts to be returned to customers under the AMA due to variable profit sharing. OTHER REGULATORY LIABILITIES - This liability primarily represents recoveries in excess of expenditures for the SBC programs, which include the CEP/CLEP, USF and LL mechanisms. |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFITS | 3 Months Ended |
Mar. 31, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
PENSION AND OTHER POSTRETIREMENT BENEFITS | PENSION AND OTHER POSTRETIREMENT BENEFITS: For the three months ended March 31, 2022 and 2021, 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 2022 2021 Service Cost $ 1,319 $ 1,591 Interest Cost 3,415 3,236 Expected Return on Plan Assets (6,201) (5,834) Amortizations: Prior Service Cost 18 25 Actuarial Loss 1,839 3,194 Net Periodic Benefit Cost 390 2,212 Capitalized Benefit Cost (491) (566) Deferred Benefit Cost (Credit) 334 (316) Total Net Periodic Benefit Expense $ 233 $ 1,330 Other Postretirement Benefits Three Months Ended 2022 2021 Service Cost $ 173 $ 212 Interest Cost 502 475 Expected Return on Plan Assets (1,692) (1,436) Amortizations: Prior Service Cost (156) (156) Actuarial Loss 35 273 Net Periodic Benefit Cost (1,138) (632) Capitalized Benefit Cost (60) (106) Deferred Benefit Cost 532 337 Total Net Periodic Benefit Expense $ (666) $ (401) The Pension Benefits Net Periodic Benefit Cost incurred by SJG was approximately $0.1 million and $1.6 million of the totals presented in the table above for the three months ended March 31, 2022 and 2021, 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 $(1.1) million and $(0.5) million of the totals presented in the table above for the three months ended March 31, 2022 and 2021, 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. No contributions were made to the pension plans by either SJI or SJG during the three months ended March 31, 2022 or 2021. Future pension contributions by SJI cannot be determined at this time. Payments related to the unfunded SERP for SJG are expected to be approximately $3.9 million in 2022. 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, 2021 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 | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 were as follows (in thousands): Company Total Facility Usage Available Liquidity Expiration Date SJI: SJI Syndicated Revolving Credit Facility $ 500,000 $ 60,400 (A) $ 439,600 September 2026 SJG: Commercial Paper Program/Revolving Credit Facility 250,000 9,200 (B) 240,800 September 2026 ETG: ETG Revolving Credit Facility 250,000 39,400 (C) 210,600 September 2026 Total $ 1,000,000 $ 109,000 $ 891,000 (A) Includes letters of credit outstanding in the amount of $15.4 million, which is used for various construction and operating activities. (B) Includes letters of credit outstanding in the amount of $1.9 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. For SJI and SJG, the amount of usage shown in the table above, less the letters of credit noted in (A)-(C) for SJI and (B) for SJG above, equals the amounts recorded as Notes Payable on the respective condensed consolidated balance sheets as of March 31, 2022. SJI, SJG and ETG (collectively, the "Borrowers") have an unsecured, five-year master revolving credit facility (the "Credit Facility") with a syndicate of banks, which expires on September 1, 2026, unless earlier terminated or extended in accordance with its terms. There have been no significant changes to the nature or balances of this Credit Facility, except for the usage shown in the table above, since December 31, 2021, which are described in Note 13 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, 2021. There have been no significant changes to the nature or balances of SJG's commercial paper program since December 31, 2021, which are described in Note 13 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, 2021. Although there can be no assurance, management believes that actions presently being taken to pay off or refinance the short-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. SJI, SJG and ETG were all in compliance with the financial covenants in their respective borrowing arrangements described herein and in Note 14 as of March 31, 2022. The consummation of the Merger would constitute a "Change in Control" under the Revolving Credit Facility, and, as such, would create an event of default, resulting in amounts outstanding being payable. The Parent has secured a debt commitment letter to provide funding to repay, if necessary, any borrowings outstanding at the time of such a Change in Control. The weighted average interest rate on these borrowings, which changes daily, were as follows: March 31, 2022 March 31, 2021 Weighted average interest rate on borrowings: SJI (inclusive of SJG, ETG and SJIU) 1.21 % 1.40 % SJG 0.39 % 0.19 % Average borrowings and maximum amounts outstanding on these facilities were as follows (in thousands): Three Months Ended March 31, 2022 2021 Average borrowings outstanding, not including LOC: SJI (inclusive of all subsidiaries' facilities) $ 268,243 $ 366,500 SJG $ 59,738 $ 21,200 Maximum amounts outstanding, not including LOC: SJI (inclusive of all subsidiaries' facilities) $ 375,300 $ 452,900 SJG $ 108,000 $ 47,500 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENT AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES: Except as described below, there have been no significant changes to the Company's commitments and contingencies since December 31, 2021, which are 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, 2021. GAS SUPPLY CONTRACTS - SJG has certain commitments for both pipeline capacity and gas supply for which SJG pays fees regardless of usage. Those commitments, as of March 31, 2022, averaged $92.9 million annually and totaled $419.5 million over the contracts’ lives; the increase since December 31, 2021 is due to two executed contracts in the first quarter of 2022 with Adelphia and Columbia pipelines. Approximately 46% of the financial commitments under these contracts expire during the next five years. SJG expects to renew each of these contracts under renewal provisions as provided in each contract. SJG recovers all such prudently incurred fees through rates via the BGSS. GUARANTEES — As of March 31, 2022, SJI had issued $11.4 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. AFFILIATE LOANS - SJI has provided $77.4 million and $62.6 million in capital contribution loans to REV, which are recorded in Notes Receivable - Affiliates on the condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021, respectively (see Note 3). The amount of capital contribution loans may be amended upward from time to time at the sole discretion of SJI. COLLECTIVE BARGAINING AGREEMENTS — SJI and its subsidiaries employed 1,172 and 1,173 employees as of March 31, 2022 and December 31, 2021, respectively. SJG employed 430 and 432 employees as of March 31, 2022 and December 31, 2021, respectively. As of March 31, 2022, 292 of the total number of employees were represented by labor unions at SJG, and 232 were represented by a labor union at ETG. As of December 31, 2021, 289 of the total number of employees were represented by labor unions at SJG, and 233 were represented by a labor union at ETG. Collective bargaining agreements with unions that represent SJG employees include agreements with IBEW Local 1293, which was finalized in February 2022 and now runs through February 2025, and with IAM Local 76 which runs through August 2025. A collective bargaining agreement with UWUA Local 424 that represents unionized ETG employees runs through November 2022. The labor agreements cover wage increases, health and welfare benefits, paid time off programs, and other benefits. At ETG, 68 employees voted to certify as a new bargaining unit effective November 23, 2021, for which SJI is actively negotiating a new collective bargaining agreement. CONVERTIBLE UNITS - See Notes 6 and 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, 2021 for a description of the issuances of convertible units and the respective obligations. 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. 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. In August 2018, the State of New Jersey filed a civil enforcement action in the New Jersey Superior Court, Atlantic County, 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. Assessment of the nature and extent of the alleged damages requires substantial analysis from multiple experts. To date, discovery has not yet taken place and there is limited precedent on a number of the legal matters involved. As a result, SJG is currently evaluating the merits of the State of New Jersey’s allegations. All parties have agreed to and begun mediation efforts. SJG intends to vigorously defend itself in this matter, however, an adverse outcome in the litigation could have a material impact on SJI's and SJG's results of operations, financial condition and liquidity. SJG recorded a liability based on its best-estimate of the probable outcome of this matter as of March 31, 2022. This manufactured gas plant site has been fully remediated as discussed under "Environmental Remediation Costs" below. In connection with the Merger Agreement and the transactions contemplated thereby, eight purported Company shareholders have filed lawsuits under federal securities laws, five in the United States District Court for the Southern District of New York, one in the United States District Court for the Eastern District of New York, one in the United States District Court for the District of New Jersey and one in the United States District Court for the Eastern District of Pennsylvania, challenging the adequacy of the disclosures made in the preliminary proxy statement filed by the Company with the SEC on March 30, 2022. These cases are captioned Stein v. South Jersey Industries, et al., Case No. 1:22-cv-02647, Finger v. South Jersey Industries, et al., Case No. 1:22-cv-03226, Kaufmann v. South Jersey Industries, et al., Case No. 1:22-cv-03255, Hopkins v. South Jersey Industries, et al., Case No. 1:22-cv-01972, Przyborowski v. South Jersey Industries, et al., Case No. 1:22-cv-02202, Justice v. South Jersey Industries, et al., Case No. 2:22-cv-01495, Brining v. South Jersey Industries, et. al., Case No. 1:22-cv-03384, and Jones v. South Jersey Industries, et. al., Case No. 1:22-cv-03424, respectively. The Complaints generally allege that the preliminary proxy statement filed by the Company with the SEC on March 30, 2022 misrepresents and/or omits certain purportedly material information relating to the Company’s financial projections and the analyses performed for the Board in connection with the Merger Agreement. The Complaints assert violations of Sections 14(a) and 20(a) of the Exchange Act and Rule 14a-9 promulgated thereunder against the Company and the members of its Board. The Complaints seek, among other things, an injunction enjoining the shareholder vote on the Merger and the consummation of the Merger unless and until certain additional information is disclosed to Company shareholders, costs of the action, including plaintiffs’ attorneys’ fees and experts’ fees, and other relief the court may deem just and proper. In response to these lawsuits, on May 3, 2022, the Company filed additional proxy soliciting materials related to the Merger. The Company cannot predict the outcomes of the Complaints. The Company believes that the Complaints are without merit and the Company and the individual defendants intend to vigorously defend against the Complaints and any subsequently filed similar actions. SJI has accrued approximately $10.8 million and $11.3 million related to all claims in the aggregate as of March 31, 2022 and December 31, 2021, respectively, of which SJG has accrued approximately $10.0 million as of both March 31, 2022 and December 31, 2021. ENVIRONMENTAL REMEDIATION COSTS — Except as noted under "Litigation" above, there have been no significant changes to the status of SJI’s environmental remediation efforts since December 31, 2021, 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, 2021. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 3 Months Ended |
Mar. 31, 2022 | |
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. Management takes an active role in the risk management process and has developed policies and procedures that require specific administrative and business functions to assist in identifying, assessing and controlling various risks. Management reviews any open positions in accordance with strict policies to limit exposure to market risk. These derivative instruments include forward contracts, swap agreements, options contracts and futures contracts. As of March 31, 2022, 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) 69.0 13.7 Expected future sales of natural gas (in MMdts) 81.3 0.4 Basis and Index related net purchase contracts (in MMdts) 76.4 8.7 The expected future purchases and sales of electricity are not material. 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 for SJI. These unrealized pre-tax (losses) were $(21.3) million and $(0.1) million for the three months ended March 31, 2022 and 2021, 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 (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 March 31, 2022 and December 31, 2021, SJI had $66.6 million and $22.1 million, respectively, and SJG had $32.6 million and $7.1 million, respectively, of unrealized gains included in its BGSS related to energy-related com modity contracts. SJG has 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. The fair value represents the amount SJG would have to pay the counterparty to terminate these contracts as of those dates. As of March 31, 2022, SJG’s active interest rate swaps were as follows: Notional Amount Fixed Interest Rate Start Date Maturity $ 12,500,000 3.530% 12/1/2006 2/1/2036 $ 12,500,000 3.430% 12/1/2006 2/1/2036 For the unrealized gains and losses on 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 gains (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 March 31, 2022 and December 31, 2021, are as follows (in thousands): SJI (includes SJG and all other consolidated subsidiaries): Derivatives not designated as hedging instruments under GAAP March 31, 2022 December 31, 2021 Assets Liabilities Assets Liabilities Energy-related commodity contracts: Derivatives - Energy Related - Current $ 150,133 $ 93,458 $ 95,041 $ 60,002 Derivatives - Energy Related - Non-Current 52,102 34,681 22,488 16,079 Interest rate contracts: Derivatives - Other - Current — 435 — 568 Derivatives - Other - Noncurrent — 5,582 — 7,432 Total Derivatives $ 202,235 $ 134,156 $ 117,529 $ 84,081 SJG: Derivatives not designated as hedging instruments under GAAP March 31, 2022 December 31, 2021 Assets Liabilities Assets Liabilities Energy-related commodity contracts: Derivatives – Energy Related – Current $ 32,804 $ 595 $ 9,396 $ 2,520 Derivatives – Energy Related – Non-Current 440 — 507 324 Interest rate contracts: Derivatives – Other - Current — 435 — 568 Derivatives – Other - Noncurrent — 5,582 — 7,432 Total Derivatives $ 33,244 $ 6,612 $ 9,903 $ 10,844 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 March 31, 2022 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 $ 202,235 $ — $ 202,235 $ (73,066) (A) $ (75,456) $ 53,713 Derivatives - Energy Related Liabilities $ (128,139) $ — $ (128,139) $ 73,066 (B) $ — $ (55,073) Derivatives - Other $ (6,017) $ — $ (6,017) $ — $ — $ (6,017) SJG: Derivatives - Energy Related Assets $ 33,244 $ — $ 33,244 $ (5) (A) $ (16,084) $ 17,155 Derivatives - Energy Related Liabilities $ (595) $ — $ (595) $ 5 (B) $ — $ (590) Derivatives - Other $ (6,017) $ — $ (6,017) $ — $ — $ (6,017) As of December 31, 2021 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 $ 117,529 $ — $ 117,529 $ (57,804) (A) $ (32,782) $ 26,943 Derivatives - Energy Related Liabilities $ (76,081) $ — $ (76,081) $ 57,804 (B) $ — $ (18,277) Derivatives - Other $ (8,000) $ — $ (8,000) $ — $ — $ (8,000) SJG: Derivatives - Energy Related Assets $ 9,903 $ — $ 9,903 $ (1,780) (A) $ — $ 8,123 Derivatives - Energy Related Liabilities $ (2,844) $ — $ (2,844) $ 1,780 (B) $ — $ (1,064) Derivatives - Other $ (8,000) $ — $ (8,000) $ — $ — $ (8,000) (A) The balances at March 31, 2022 and December 31, 2021 were related to derivative liabilities which can be net settled against derivative assets. (B) The balances at March 31, 2022 and December 31, 2021 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 are as follows (in thousands): Three Months Ended Derivatives Previously in Cash Flow Hedging Relationships under GAAP 2022 2021 SJI (includes SJG and all other consolidated subsidiaries): Interest Rate Contracts: Losses reclassified from AOCL into income (a) $ (13) $ (12) SJG: Interest Rate Contracts: Losses reclassified from AOCL into income (a) $ (13) $ (12) (a) Included in Interest Charges Three Months Ended Derivatives Not Designated as Hedging Instruments under GAAP 2022 2021 SJI (no balances for SJG; includes all other consolidated subsidiaries): Losses on energy-related commodity contracts (a) $ (21,268) $ (44) (a) Included in Operating Revenues - Nonutility 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 March 31, 2022 is not material. The amount SJI would have been required to pay to settle the instruments immediately or post collateral to its counterparties if the credit-risk-related contingent features underlying these agreements were triggered on March 31, 2022 after offsetting asset positions with the same counterparties under master netting arrangements, is also not material. |
FAIR VALUE OF FINANCIAL ASSETS
FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 Total Level 1 Level 2 Level 3 SJI (includes SJG and all other consolidated subsidiaries): Assets Available-for-Sale Securities (A) $ 37 $ 37 $ — $ — Derivatives – Energy Related Assets (B) 202,235 119,438 65,413 17,384 $ 202,272 $ 119,475 $ 65,413 $ 17,384 SJG: Assets Derivatives – Energy Related Assets (B) $ 33,244 $ 20,879 $ 107 $ 12,258 $ 33,244 $ 20,879 $ 107 $ 12,258 SJI (includes SJG and all other consolidated subsidiaries): Liabilities Derivatives – Energy Related Liabilities (B) $ 128,139 $ 10,415 $ 98,110 $ 19,614 Derivatives – Other (C) 6,017 — 6,017 — $ 134,156 $ 10,415 $ 104,127 $ 19,614 SJG: Liabilities Derivatives – Energy Related Liabilities (B) $ 595 $ 5 $ 582 $ 8 Derivatives – Other (C) 6,017 — 6,017 — $ 6,612 $ 5 $ 6,599 $ 8 As of December 31, 2021 Total Level 1 Level 2 Level 3 SJI (includes SJG and all other consolidated subsidiaries): Assets Available-for-Sale Securities (A) $ 37 $ 37 $ — $ — Derivatives – Energy Related Assets (B) 117,529 56,260 52,277 8,992 $ 117,566 $ 56,297 $ 52,277 $ 8,992 SJG: Assets Derivatives – Energy Related Assets (B) $ 9,903 $ 4,648 $ 1,617 $ 3,638 $ 9,903 $ 4,648 $ 1,617 $ 3,638 SJI (includes SJG and all other consolidated subsidiaries): Liabilities Derivatives – Energy Related Liabilities (B) $ 76,081 $ 21,879 $ 45,890 $ 8,312 Derivatives – Other (C) 8,000 — 8,000 — $ 84,081 $ 21,879 $ 53,890 $ 8,312 SJG: Liabilities Derivatives – Energy Related Liabilities (B) $ 2,844 $ 1,780 $ 1,064 $ — Derivatives – Other (C) 8,000 — 8,000 — $ 10,844 $ 1,780 $ 9,064 $ — 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. (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. 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. 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. 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 – 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. 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 March 31, 2022 Valuation Technique Significant Unobservable Input Range Assets Liabilities Forward Contract - Natural Gas $17,384 $19,614 Discounted Cash Flow Forward price (per dt) $2.27 - $12.20 [$5.27] (A) Type Fair Value at December 31, 2021 Valuation Technique Significant Unobservable Input Range Assets Liabilities Forward Contract - Natural Gas $8,916 $8,107 Discounted Cash Flow Forward price (per dt) $1.77 - $8.30 [$3.73] (A) SJG: Type Fair Value at March 31, 2022 Valuation Technique Significant Unobservable Input Range Assets Liabilities Forward Contract - Natural Gas $ 12,258 $ 8 Discounted Cash Flow Forward price (per dt) $4.37 - $11.52 [$6.92] (A) Type Fair Value at December 31, 2021 Valuation Technique Significant Unobservable Input Range Assets Liabilities Forward Contract - Natural Gas $ 3,638 $ — Discounted Cash Flow Forward price (per dt) $3.75 - $5.66 [$4.94] (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 Three Months Ended SJI (includes SJG and all other consolidated subsidiaries): Balance at beginning of period $ 680 $ 11,006 Other Changes in Fair Value from Continuing and New Contracts, Net (398) 5,477 Settlements (2,512) (5,063) Balance at end of period $ (2,230) $ 11,420 SJG: Balance at beginning of period $ 3,638 $ 3,385 Other Changes in Fair Value from Continuing and New Contracts, Net 12,250 3,391 Settlements (3,638) (3,385) Balance at end of period $ 12,250 $ 3,391 |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2022 | |
Long-term Debt, Unclassified [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT: Except as described below, there have been no significant changes to SJI's or SJG's long-term debt since December 31, 2021. See Note 14 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, 2021. The consummation of the Merger would constitute a "Change in Control" under certain long-term debt agreements, and, as such, would provide applicable debt holders the right to have their debt repurchased. If the debt holders elect repayment, the Parent has secured a debt commitment letter to provide funding to repay those amounts. In March 2022, SJG repaid $2.5 million of 4.84% MTNs, which are due annually with the final payment due March 2026. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE: There have been no significant changes to the nature of the Company's revenues or the revenue recognition policies and practices of the Company since December 31, 2021, 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, 2021. Disaggregated revenues from contracts with customers are disclosed below, by operating segment (in thousands). Three Months Ended SJG Utility Operations ETG Utility Operations Wholesale Energy Operations Retail Services Renewables Corporate Services and Intersegment Total Customer Type: Residential $ 208,728 $ 117,538 $ 527 $ — $ — $ 326,793 Commercial & Industrial 77,889 58,867 447,411 21 5,356 (8,708) 580,836 OSS & Capacity Release 4,902 — — — — — 4,902 Other 913 188 — 1,393 — (135) 2,359 $ 292,432 $ 176,593 $ 447,411 $ 1,941 $ 5,356 $ (8,843) $ 914,890 Product/Service Line: Gas $ 292,432 $ 176,593 $ 447,411 $ — $ — $ (8,708) $ 907,728 Electric — — — 21 — — 21 Solar — — — — 1,016 — 1,016 Fuel Cells — — — — 3,748 — 3,748 Other — — — 1,920 592 (135) 2,377 $ 292,432 $ 176,593 $ 447,411 $ 1,941 $ 5,356 $ (8,843) $ 914,890 Three Months Ended SJG Utility Operations ETG Utility Operations Wholesale Energy Operations Retail Services Renewables Corporate Services and Intersegment Total Customer Type: Residential $ 166,589 $ 105,904 $ — $ 512 $ — $ — $ 273,005 Commercial & Industrial 60,313 49,654 373,967 1,607 6,423 (6,777) 485,187 OSS & Capacity Release 2,299 — — — — — 2,299 Other 761 192 — 935 — (96) 1,792 $ 229,962 $ 155,750 $ 373,967 $ 3,054 $ 6,423 $ (6,873) $ 762,283 Product/ Service Line: Gas $ 229,962 $ 155,750 $ 373,967 $ — $ — $ (6,699) $ 752,980 Electric — — — 1,607 — (78) 1,529 Solar — — — — 1,911 — 1,911 Landfills — — — — 425 — 425 Fuel Cells — — — — 4,087 — 4,087 Other — — — 1,447 — (96) 1,351 $ 229,962 $ 155,750 $ 373,967 $ 3,054 $ 6,423 $ (6,873) $ 762,283 The SJG balance is a part of the SJG Utility Operations segment, and is before intercompany eliminations with other SJI entities. Revenues on the condensed consolidated statements of income that are not with contracts with customers consist of (a) revenues from alternative revenue programs at the SJG and ETG utility operating segments (primarily CIP and WNC), (b) both utility and nonutility realized revenue from derivative contracts at the SJG and ETG Utility Operations, Wholesale Energy Operations and Retail Services operating segments, and (c) unrealized revenues from derivative contracts at the Wholesale Energy Operations and Retail Services operating segments. The Utilities' 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, 2021. Total revenues arising from alternative revenue programs at SJI were $(6.2) million and $1.0 million for the three months ended March 31, 2022 and 2021, respectively. Total revenues arising from alternative revenue programs at SJG were $(5.8) million and $(0.8) million for the three months ended March 31, 2022 and 2021, respectively. 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, 2022 $ 343,835 $ 87,357 Ending balance as of March 31, 2022 407,313 74,296 Increase (Decrease) $ 63,478 $ (13,061) Beginning balance as of January 1, 2021 $ 278,723 $ 85,423 Ending balance as of March 31, 2021 327,832 68,155 Increase (Decrease) $ 49,109 $ (17,268) SJG: Beginning balance as of January 1, 2022 $ 125,848 $ 43,236 Ending balance as of March 31, 2022 174,489 40,977 Increase (Decrease) $ 48,641 $ (2,259) Beginning balance as of January 1, 2021 $ 88,657 $ 46,837 Ending balance as of March 31, 2021 130,286 35,362 Increase (Decrease) $ 41,629 $ (11,475) (A) 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 | 3 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
ACQUISITION & BUSINESS COMBINATIONS | ACQUISITIONS & BUSINESS COMBINATIONS: Bronx Midco Catamaran and a third party formed Bronx Midco, of which Catamaran owns 99%. On June 9, 2021, Bronx Midco purchased a fuel cell project totaling 5 MW in Bronx, New York that is in the process of being constructed and, while we estimate the project could go live in 2022, due to the possibility of additional permitting and/or construction delays, this project may be delayed until 2023. Marina, through its ownership in Catamaran, has a 92% ownership interest in Bronx Midco, and, as a result, Marina 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 fuel cell project includes a land lease and working capital. The total expected cost of the fuel cell project is $60.1 million, of which the partners have paid $34.1 million as of March 31, 2022. Of this total, Marina invested $31.4 million as of March 31, 2022. To account for the third party partner's interest in Bronx Midco, Marina recorded $2.7 million of NCIs in Total Equity on the condensed consolidated balance sheets as of March 31, 2022. The major depreciable assets of the Bronx Midco fuel cell project are the fuel cell modules, which will be depreciated over their estimated useful lives of 35 years once placed in service. The lease cost associated with the land lease is being recognized on a straight-line basis over the lease term of 35 years. All assets and financial results of Bronx Midco are included in the Renewables segment. As this project is not yet placed into service, no revenues have been recorded, expenses incurred in the Company's condensed consolidated statements of income in the three months ended March 31, 2022 and 2021 are not material, and no ITC has been recorded. Red River On March 22, 2022, SJI, through its wholly-owned subsidiary SJI RNG Devco, LLC, formed the Red River joint venture with two third party partners, of which SJI RNG Devco, LLC has an 80% ownership interest. Red River was formed for the purpose of building anaerobic digesters on certain dairy farms to produce RNG for injection into natural gas pipelines, and supporting SJI's commitment to decarbonization. There has been no activity among this joint venture as of March 31, 2022. Notes 1 and 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, 2021 describe the asset acquisitions and business combinations that occurred in 2021 and 2020. |
GOODWILL AND IDENTIFIABLE INTAN
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS | GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS: GOODWILL - See Note 21 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, 2021 for a description of the Company's goodwill accounting policies and annual impairment test. The Company determined that, during the three months ended March 31, 2022, there were not indicators of impairment of the goodwill associated with its reporting units, and as such did not perform a quantitative analysis. The qualitative factors analyzed also included macroeconomic conditions related to the COVID-19 pandemic. There were no impairments recorded for the three months ended March 31, 2022 and 2021. Should economic conditions deteriorate in future periods or become 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. As of both March 31, 2022 and December 31, 2021, SJI had $707.0 million of goodwill, including $700.2 million in the ETG Utility Operations segment and $6.8 million included in the Retail Services segment. IDENTIFIABLE INTANGIBLE ASSETS - The primary identifiable intangible assets of the Company are customer relationships within the Retail Services segment, interconnection and power purchase agreements at Annadale (collectively "Annadale intangible assets"), and an AMA within the ETG Utility Operations segment which expired on March 31, 2022. Total SJI amortization expense related to identifiable intangible assets was $1.5 million for both the three months ended March 31, 2022 and 2021. No impairment charges were recorded on identifiable intangible assets during the three months ended March 31, 2022 or 2021. Other than amortization, there were no significant changes to the identifiable intangible assets since December 31, 2021. For more information, see Note 21 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, 2021. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS: The following events occurred in April/May 2022: • SJRG and ETG entered into an AMA whereby SJRG manages the pipeline capacity of ETG. See Note 3. • SJG filed a petition with the BPU requesting a base revenue increase to obtain a return on and of new capital investments. See Note 7. • In connection with the Merger Agreement, the Company filed a definitive proxy statement with the SEC, along with additional proxy soliciting materials. See Note 1. • The Company filed a joint petition to the BPU seeking authority for approval of an indirect change of control of ETG and SJG, effectuated by the Merger Agreement. This matter is pending BPU approval. See Note 1. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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. • 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. ▪ 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. Marina includes the Catamaran joint venture that was entered into for the purpose of developing, owning and operating renewable energy projects, and supporting SJI's commitment to clean energy initiatives. Catamaran owns Annadale and Bronx Midco, operators of fuel cell projects in New York, in which Marina, through Catamaran, owns 93% and 92%, respectively. Catamaran also owns a solar generation site in Massachusetts, in which Marina, through Catamaran, owns 90%. The remaining ownership percentages are recorded as NCIs in the condensed consolidated financial statements. The principal wholly-owned subsidiaries of Marina are: • Marina owns, directly and through wholly-owned subsidiaries, solar energy projects in New Jersey. • ACLE, BCLE, SCLE and SXLE own landfill gas-to-energy production facilities in Atlantic, Burlington, Salem and Sussex Counties, respectively, located in New Jersey. ACLE ceased operations on September 30, 2021, while BCLE, SCLE and SXLE ceased operations on June 1, 2020. ▪ SJESP receives commissions on appliance service contracts from a third party. ▪ Midstream invests in infrastructure and other midstream projects, including the PennEast project for which development ceased in September 2021. 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 that matches end users with suppliers for the procurement of natural gas and electricity. • EnerConnex, an aggregator, broker and consultant in the retail and wholesale energy markets 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, of which SJEI previously held a 25% interest. • SJI Renewable Energy Ventures, LLC, which holds our equity interest in REV. • SJI RNG Devco, LLC, which includes our renewable natural gas development rights and costs incurred in order to develop certain dairy farms, along with the Red River joint venture which was formed on March 22, 2022 (see Note 16). |
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. 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 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, 2021. There were no significant changes in or changes in the application of the Company’s significant or critical accounting policies or estimation procedures for the three months ended March 31, 2022 as compared with the significant accounting policies described in the Company’s audited consolidated financial statements for the year ended December 31, 2021. |
ESTIMATES AND ASSUMPTIONS | ESTIMATES AND ASSUMPTIONS - The condensed consolidated financial statements were prepared to conform with GAAP, which requires management to make 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, legal contingencies, pension and other postretirement benefit costs, revenue recognition, goodwill, evaluation of equity method investments for other-than-temporary impairment, income taxes, and allowance for credit losses. Estimates may be subject to future uncertainties, including the continued evolution of the COVID-19 pandemic and its impact on our operations and economic conditions, which could affect the fair value of the ETG reporting unit and its goodwill balance (see Note 17), as well as the allowance for credit losses and the total impact and potential recovery of incremental costs associated with COVID-19 (see Notes 5 and 8, respectively). |
IMPAIRMENT OF LONG LIVED ASSETS | IMPAIRMENT OF LONG-LIVED ASSETS - See Note 1 to the Consolidated Financial Statements under "Impairment of Long-Lived Assets" in Item 8 of the Form 10-K for the year ended December 31, 2021 for additional information regarding the Company's policy on impairments of long-lived assets. |
REGULATION | REGULATION - The Utilities are subject to the rules and regulations of the BPU . See Note 7 for a discussion of the Utilities' rate structure and regulatory actions. The Utilities maintain their accounts according to the BPU's prescribed Uniform System of Accounts. The Utilities follow the accounting for regulated enterprises prescribed by ASC 980, Regulated Operations , which 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 perio ds. See Note 8 for |
OPERATING REVENUES | OPERATING REVENUES - Gas and electric revenues are recognized in the period the commodity is delivered to customers. For retail customers (including customers of 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 15. 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, and operating revenues for SJRG include realized and unrealized gains and losses on energy-related derivative instruments. 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 commissions received related to AEP and EnerConnex energy procurement service contracts, on a monthly basis as the commissions are earned. Marina recognizes revenue for renewable energy projects when output is generated and delivered to the customer, and 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 the delivery of gas and electricity being considered an essential service, with delivery to customers continuing in a timely manner with no delays or operational shutdowns taking place to date. To the extent that the pandemic does impact our ability to deliver in the future, operating revenues could be impacted. Currently, the impact of the pandemic on the collectability of our accounts receivable continues to be monitored, but such receivables have traditionally been included in rate recovery (see Note 8). |
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 |
LEASES | LEASES - There have been no significant changes to the nature or balances of the Company's leases since December 31, 2021, 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, 2021. |
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 2020-04: Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting ASU 2021-01: Reference Rate Reform (Topic 848) The amendments in ASU 2020-04 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. The amendments in ASU 2021-01 clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to changes in the interest rates used for margining, discounting, or contract price alignment for derivative instruments that are being implemented as part of the market-wide transition to new reference rates (commonly referred to as the "discounting transition"). 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. Adoption of this guidance did not have a material impact on the financial statement results of SJI or SJG. 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 Adoption of this guidance did not have a material impact on the financial statement results of SJI or SJG. Standards Not Yet Effective: Standard Description Date of Adoption Application Effect on the Financial Statements of SJI and SJG ASU 2021-10: Government Assistance (ASC 832): Disclosures by Business Entities about Government Assistance This ASU requires disclosure in the notes to annual financial statements of government financial assistance from local, (city, town, county, municipal), regional, and federal governments and entities related to those governments. Required disclosure for government assistance transactions includes: 1) information about the nature of transactions and the related accounting policy used to account for the transactions; 2) the line items on the balance sheet and income statement that are affected by the transactions and the amounts applicable to each financial statement line item; and 3) significant terms and conditions of the transactions, including commitments and contingencies. Annual periods beginning January 1, 2022; early adoption is permitted. Either (1) prospectively to all transactions that are reflected in financial statements at the date of initial application and to all transactions that are entered into after adoption (2) retrospectively to those transactions Since this ASU is disclosure only, adoption will not have an impact on the financial statement results of SJI or SJG. Management is currently determining the impact that adoption of this guidance will have on the disclosures of SJI and SJG. ASU 2021-08: Business Combinations (ASC 805): Accounting for Contract Assets and Contract Liabilities From Contracts With Customers The amendments to ASC 805 in this ASU require an acquirer to account for revenue contracts acquired in a business combination in accordance with ASC 606 as if it had originated the contracts. The acquirer may assess how the acquiree applied ASC 606 to determine what to record for the acquired contracts. The standard also provides practical expedients for acquirers when recognizing and measuring acquired contract assets and contract liabilities from a business combination. January 1, 2023; early adoption is permitted, including adoption in an interim period Prospectively to business combinations occurring on or after the effective date of the amendments These amendments have not yet been adopted and management is currently evaluating whether to adopt this amendment prior to the effective date. |
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) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of 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 2020-04: Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting ASU 2021-01: Reference Rate Reform (Topic 848) The amendments in ASU 2020-04 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. The amendments in ASU 2021-01 clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to changes in the interest rates used for margining, discounting, or contract price alignment for derivative instruments that are being implemented as part of the market-wide transition to new reference rates (commonly referred to as the "discounting transition"). 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. Adoption of this guidance did not have a material impact on the financial statement results of SJI or SJG. 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 Adoption of this guidance did not have a material impact on the financial statement results of SJI or SJG. Standards Not Yet Effective: Standard Description Date of Adoption Application Effect on the Financial Statements of SJI and SJG ASU 2021-10: Government Assistance (ASC 832): Disclosures by Business Entities about Government Assistance This ASU requires disclosure in the notes to annual financial statements of government financial assistance from local, (city, town, county, municipal), regional, and federal governments and entities related to those governments. Required disclosure for government assistance transactions includes: 1) information about the nature of transactions and the related accounting policy used to account for the transactions; 2) the line items on the balance sheet and income statement that are affected by the transactions and the amounts applicable to each financial statement line item; and 3) significant terms and conditions of the transactions, including commitments and contingencies. Annual periods beginning January 1, 2022; early adoption is permitted. Either (1) prospectively to all transactions that are reflected in financial statements at the date of initial application and to all transactions that are entered into after adoption (2) retrospectively to those transactions Since this ASU is disclosure only, adoption will not have an impact on the financial statement results of SJI or SJG. Management is currently determining the impact that adoption of this guidance will have on the disclosures of SJI and SJG. ASU 2021-08: Business Combinations (ASC 805): Accounting for Contract Assets and Contract Liabilities From Contracts With Customers The amendments to ASC 805 in this ASU require an acquirer to account for revenue contracts acquired in a business combination in accordance with ASC 606 as if it had originated the contracts. The acquirer may assess how the acquiree applied ASC 606 to determine what to record for the acquired contracts. The standard also provides practical expedients for acquirers when recognizing and measuring acquired contract assets and contract liabilities from a business combination. January 1, 2023; early adoption is permitted, including adoption in an interim period Prospectively to business combinations occurring on or after the effective date of the amendments These amendments have not yet been adopted and management is currently evaluating whether to adopt this amendment prior to the effective date. |
STOCK-BASED COMPENSATION PLAN (
STOCK-BASED COMPENSATION PLAN (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 at March 31, 2022, 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 - 2020 - TSR 31,957 $ 25.51 34.8 % 0.21 % 2020 - CEGR, Time 80,644 $ 25.19 N/A N/A 2021 - TSR 35,091 $ 28.11 39.9 % 0.27 % 2021 - CEGR, Time 171,526 $ 25.33 N/A N/A 2022 - TSR 37,608 $ 35.05 43.6 % 1.83 % 2022 - CEGR, Time 147,327 $ 35.05 N/A N/A Directors - 2021 54,419 $ 24.75 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 months ended March 31, 2022 and 2021 (in thousands): Three Months Ended 2022 2021 Officers & Key Employees $ 1,317 $ 1,264 Directors 112 10 Total Cost 1,429 1,274 Capitalized (38) (23) Net Expense $ 1,391 $ 1,251 |
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 three months ended March 31, 2022, excluding accrued dividend equivalents: Officers and Other Key Employees Directors Weighted Nonvested Shares Outstanding, January 1, 2022 492,475 54,419 $ 26.72 Granted 184,935 — $ 35.05 Cancelled/Forfeited (71,775) — $ 25.86 Vested (101,482) — $ 30.25 Nonvested Shares Outstanding, March 31, 2022 504,153 54,419 $ 28.69 |
AFFILIATIONS, DISCONTINUED OP_2
AFFILIATIONS, DISCONTINUED OPERATIONS AND RELATED-PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
Schedule 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 2022 2021 Operating Revenues/Affiliates: SJRG $ 8,280 6,329 Other 21 21 Total Operating Revenues/Affiliates $ 8,301 $ 6,350 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 2022 2021 Costs of Sales/Affiliates (Excluding depreciation and amortization) SJRG $ 80 $ 1,367 Operations Expense/Affiliates: SJI (parent company only) $ 6,372 $ 5,564 SJIU 1,006 960 Millennium 930 866 Other 18 73 Total Operations Expense/Affiliates $ 8,326 $ 7,463 |
COMMON STOCK (Tables)
COMMON STOCK (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Common Stock Shares Issued and Outstanding | The following shares were issued and outstanding for SJI: 2022 Beginning Balance, January 1 117,340,493 New Issuances During the Period: Settlement of Equity Forward Sale Agreement 4,996,062 Stock-Based Compensation Plan 70,872 Ending Balance, March 31 122,407,427 |
Schedule of Convertible Units | The convertible units consist of the following (in thousands): March 31, 2022 December 31, 2021 Principal amount: 2021 Series B Remarketable Junior Subordinated Notes due 2029 Principal (A) $ 335,000 $ 335,000 Unamortized debt discount and issuance costs (A) 8,808 9,110 Net carrying amount $ 326,192 $ 325,890 Carrying amount of the equity component (B) $ — $ — (A) Included in the condensed consolidated balance sheets within Long-Term Debt. (B) There is no equity portion as of March 31, 2022 and December 31, 2021 for these Notes. |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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): March 31, 2022 Balance Sheet Line Item SJI SJG Cash and Cash Equivalents $ 32,522 $ 3,234 Restricted Investments 84 34 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 32,606 $ 3,268 December 31, 2021 Balance Sheet Line Item SJI SJG Cash and Cash Equivalents $ 28,754 $ 3,360 Restricted Investments 686 686 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 29,440 $ 4,046 |
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): March 31, 2022 Balance Sheet Line Item SJI SJG Cash and Cash Equivalents $ 32,522 $ 3,234 Restricted Investments 84 34 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 32,606 $ 3,268 December 31, 2021 Balance Sheet Line Item SJI SJG Cash and Cash Equivalents $ 28,754 $ 3,360 Restricted Investments 686 686 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 29,440 $ 4,046 |
Schedule of Allowance for Credit Losses | ALLOWANCE FOR CREDIT LOSSES - Accounts receivable and unbilled revenues 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 for the three months ended March 31, 2022 and 2021 is as follows (in thousands): Three Months Ended March 31, 2022 2021 SJI (includes SJG and all other consolidated subsidiaries): Balance at beginning of period $ 41,763 $ 30,582 Provision for expected credit losses 2,453 2,409 Regulated assets (a) 4,044 4,134 Recoveries of accounts previously written off 79 230 Uncollectible accounts written off (1,370) (1,500) Balance at end of period $ 46,969 $ 35,855 SJG: Balance at beginning of period $ 25,166 $ 17,359 Provision for expected credit losses 1,834 1,760 Regulated assets (a) 1,752 2,194 Recoveries of accounts previously written off 42 127 Uncollectible accounts written off (428) (967) Balance at end of period $ 28,366 $ 20,473 |
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 March 31, 2022 and December 31, 2021, except as noted below (in thousands): March 31, 2022 December 31, 2021 SJI (includes SJG and all consolidated entities) Estimated fair values of long-term debt $ 3,384,680 $ 3,653,868 Carrying amounts of long-term debt, including current maturities (A) $ 3,253,647 $ 3,255,085 Net of: Unamortized debt issuance costs $ 37,446 $ 38,462 Unamortized debt discounts $ 5,113 $ 5,135 SJG Estimated fair values of long-term debt $ 1,047,429 $ 1,171,657 Carrying amounts of long-term debt, including current maturities $ 1,039,480 $ 1,041,811 Net of: Unamortized debt issuance costs $ 8,557 $ 8,726 |
SEGMENTS OF BUSINESS (Tables)
SEGMENTS OF BUSINESS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segments of Business | Information about SJI’s operations in different reportable operating segments is presented below (in thousands). All prior periods were revised to conform to the new segment alignment noted above. Three Months Ended 2022 2021 Operating Revenues: SJI Utilities: SJG Utility Operations $ 322,263 $ 251,399 ETG Utility Operations 176,236 157,545 Subtotal SJI Utilities 498,499 408,944 Energy Management: Wholesale Energy Operations 327,497 261,910 Retail Services 2,069 3,896 Subtotal Energy Management 329,566 265,806 Energy Production: Renewables 5,356 6,423 Decarbonization — — Subtotal Energy Production 5,356 6,423 Corporate and Services 16,434 13,793 Subtotal 849,855 694,966 Intersegment Sales (25,277) (20,666) Total Operating Revenues $ 824,578 $ 674,300 Three Months Ended 2022 2021 Operating Income: SJI Utilities: SJG Utility Operations $ 125,702 $ 118,842 ETG Utility Operations 59,284 58,020 Subtotal SJI Utilities 184,986 176,862 Energy Management: Wholesale Energy Operations 17,451 17,308 Retail Services 1,179 (220) Subtotal Energy Management 18,630 17,088 Energy Production: Renewables (580) 2,700 Decarbonization (445) — Subtotal Energy Production (1,025) 2,700 Corporate and Services (3,991) 178 Total Operating Income $ 198,600 $ 196,828 Three Months Ended 2022 2021 Property Additions: SJI Utilities: SJG Utility Operations $ 51,146 $ 53,409 ETG Utility Operations 51,603 41,130 Subtotal SJI Utilities 102,749 94,539 Energy Management: Wholesale Energy Operations — — Retail Services — — Subtotal Energy Management — — Energy Production: Renewables 5,483 773 Decarbonization 17,321 836 Subtotal Energy Production 22,804 1,609 Midstream — 4 Corporate and Services 1,518 744 Total Property Additions $ 127,071 $ 96,896 March 31, 2022 December 31, 2021 Identifiable Assets: SJI Utilities: SJG Utility Operations $ 3,784,373 $ 3,767,897 ETG Utility Operations 2,852,249 2,788,465 Subtotal SJI Utilities 6,636,622 6,556,362 Energy Management: Wholesale Energy Operations 281,716 278,995 Retail Services 20,179 25,741 Subtotal Energy Management 301,895 304,736 Energy Production: Renewables 190,316 195,791 Decarbonization 195,091 138,787 Subtotal Energy Production 385,407 334,578 Midstream 4,517 8,970 Discontinued Operations 25 47 Corporate and Services 362,381 370,899 Intersegment Assets (234,021) (266,920) Total Identifiable Assets $ 7,456,826 $ 7,308,672 |
REGULATORY ASSETS AND REGULAT_2
REGULATORY ASSETS AND REGULATORY LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Schedule of Regulatory Assets | The Utilities' Regulatory Assets as of March 31, 2022 and December 31, 2021 consisted of the following items (in thousands): March 31, 2022 SJG ETG Total SJI Environmental Remediation Costs: Expended - Net $ 150,400 $ 21,609 $ 172,009 Liability for Future Expenditures 91,470 74,729 166,199 Deferred ARO Costs 49,311 35,519 84,830 Deferred Pension and Other Postretirement Benefit Costs - Unrecognized Prior Service Cost — 30,062 30,062 Deferred Pension and Other Postretirement Benefit Costs 47,504 813 48,317 Deferred Gas Costs - Net 369 — 369 CIP Receivable 14,522 4,215 18,737 SBC Receivable (excluding RAC) 7,637 — 7,637 Deferred Interest Rate Contracts 6,017 — 6,017 EET/EEP 16,786 3,980 20,766 AFUDC - Equity Related Deferrals 12,345 — 12,345 WNC — 1,160 1,160 Deferred COVID-19 Costs 9,401 12,604 22,005 Other Regulatory Assets 24,120 9,656 33,776 Total Regulatory Assets $ 429,882 $ 194,347 $ 624,229 December 31, 2021 SJG ETG Total SJI Environmental Remediation Costs: Expended - Net $ 151,630 $ 13,972 $ 165,602 Liability for Future Expenditures 97,964 77,830 175,794 Deferred ARO Costs 47,784 33,872 81,656 Deferred Pension and Other Postretirement Benefit Costs - Unrecognized Prior Service Cost — 30,881 30,881 Deferred Pension and Other Postretirement Benefit Costs 47,504 813 48,317 Deferred Gas Costs - Net 38,234 — 38,234 CIP Receivable 17,776 2,955 20,731 SBC Receivable (excluding RAC) 7,519 — 7,519 Deferred Interest Rate Contracts 8,002 — 8,002 EET/EEP 20,632 5,199 25,831 AFUDC - Equity Related Deferrals 12,199 — 12,199 WNC — 4,269 4,269 Deferred COVID-19 Costs 7,687 10,225 17,912 Other Regulatory Assets 25,814 9,655 35,469 Total Regulatory Assets $ 482,745 $ 189,671 $ 672,416 |
Schedule of Regulatory Liabilities | The Utilities Regulatory Liabilities as of March 31, 2022 and December 31, 2021 consisted of the following items (in thousands): March 31, 2022 SJG ETG Total SJI Excess Plant Removal Costs $ 12,392 $ 34,826 $ 47,218 Excess Deferred Taxes 199,350 110,265 309,615 Deferred Gas Costs - Net — 75,416 75,416 Other Regulatory Liabilities 6,124 5,266 11,390 Total Regulatory Liabilities $ 217,866 $ 225,773 $ 443,639 December 31, 2021 SJG ETG Total SJI Excess Plant Removal Costs $ 12,125 $ 33,988 $ 46,113 Excess Deferred Taxes 206,902 111,003 317,905 Deferred Gas Costs - Net — 28,842 28,842 Other Regulatory Liabilities 3,384 2,707 6,091 Total Regulatory Liabilities $ 222,411 $ 176,540 $ 398,951 |
PENSION AND OTHER POSTRETIREM_2
PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Net Periodic Benefit Costs | For the three months ended March 31, 2022 and 2021, 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 2022 2021 Service Cost $ 1,319 $ 1,591 Interest Cost 3,415 3,236 Expected Return on Plan Assets (6,201) (5,834) Amortizations: Prior Service Cost 18 25 Actuarial Loss 1,839 3,194 Net Periodic Benefit Cost 390 2,212 Capitalized Benefit Cost (491) (566) Deferred Benefit Cost (Credit) 334 (316) Total Net Periodic Benefit Expense $ 233 $ 1,330 Other Postretirement Benefits Three Months Ended 2022 2021 Service Cost $ 173 $ 212 Interest Cost 502 475 Expected Return on Plan Assets (1,692) (1,436) Amortizations: Prior Service Cost (156) (156) Actuarial Loss 35 273 Net Periodic Benefit Cost (1,138) (632) Capitalized Benefit Cost (60) (106) Deferred Benefit Cost 532 337 Total Net Periodic Benefit Expense $ (666) $ (401) |
LINES OF CREDIT AND SHORT-TER_2
LINES OF CREDIT AND SHORT-TERM BORROWINGS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Line of Credit Facility [Abstract] | |
Schedule of Credit Facilities and Available Liquidity | Credit facilities and available liquidity as of March 31, 2022 were as follows (in thousands): Company Total Facility Usage Available Liquidity Expiration Date SJI: SJI Syndicated Revolving Credit Facility $ 500,000 $ 60,400 (A) $ 439,600 September 2026 SJG: Commercial Paper Program/Revolving Credit Facility 250,000 9,200 (B) 240,800 September 2026 ETG: ETG Revolving Credit Facility 250,000 39,400 (C) 210,600 September 2026 Total $ 1,000,000 $ 109,000 $ 891,000 (A) Includes letters of credit outstanding in the amount of $15.4 million, which is used for various construction and operating activities. (B) Includes letters of credit outstanding in the amount of $1.9 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. The weighted average interest rate on these borrowings, which changes daily, were as follows: March 31, 2022 March 31, 2021 Weighted average interest rate on borrowings: SJI (inclusive of SJG, ETG and SJIU) 1.21 % 1.40 % SJG 0.39 % 0.19 % Average borrowings and maximum amounts outstanding on these facilities were as follows (in thousands): Three Months Ended March 31, 2022 2021 Average borrowings outstanding, not including LOC: SJI (inclusive of all subsidiaries' facilities) $ 268,243 $ 366,500 SJG $ 59,738 $ 21,200 Maximum amounts outstanding, not including LOC: SJI (inclusive of all subsidiaries' facilities) $ 375,300 $ 452,900 SJG $ 108,000 $ 47,500 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | As of March 31, 2022, 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) 69.0 13.7 Expected future sales of natural gas (in MMdts) 81.3 0.4 Basis and Index related net purchase contracts (in MMdts) 76.4 8.7 |
Summary of Interest Rate Swaps | As of March 31, 2022, SJG’s active interest rate swaps were as follows: Notional Amount Fixed Interest Rate Start Date Maturity $ 12,500,000 3.530% 12/1/2006 2/1/2036 $ 12,500,000 3.430% 12/1/2006 2/1/2036 |
Fair Value of Derivative Instruments | The fair values of all derivative instruments, as reflected in the condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021, are as follows (in thousands): SJI (includes SJG and all other consolidated subsidiaries): Derivatives not designated as hedging instruments under GAAP March 31, 2022 December 31, 2021 Assets Liabilities Assets Liabilities Energy-related commodity contracts: Derivatives - Energy Related - Current $ 150,133 $ 93,458 $ 95,041 $ 60,002 Derivatives - Energy Related - Non-Current 52,102 34,681 22,488 16,079 Interest rate contracts: Derivatives - Other - Current — 435 — 568 Derivatives - Other - Noncurrent — 5,582 — 7,432 Total Derivatives $ 202,235 $ 134,156 $ 117,529 $ 84,081 SJG: Derivatives not designated as hedging instruments under GAAP March 31, 2022 December 31, 2021 Assets Liabilities Assets Liabilities Energy-related commodity contracts: Derivatives – Energy Related – Current $ 32,804 $ 595 $ 9,396 $ 2,520 Derivatives – Energy Related – Non-Current 440 — 507 324 Interest rate contracts: Derivatives – Other - Current — 435 — 568 Derivatives – Other - Noncurrent — 5,582 — 7,432 Total Derivatives $ 33,244 $ 6,612 $ 9,903 $ 10,844 |
Offsetting Arrangements | Information related to these offsetting arrangements were as follows (in thousands): As of March 31, 2022 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 $ 202,235 $ — $ 202,235 $ (73,066) (A) $ (75,456) $ 53,713 Derivatives - Energy Related Liabilities $ (128,139) $ — $ (128,139) $ 73,066 (B) $ — $ (55,073) Derivatives - Other $ (6,017) $ — $ (6,017) $ — $ — $ (6,017) SJG: Derivatives - Energy Related Assets $ 33,244 $ — $ 33,244 $ (5) (A) $ (16,084) $ 17,155 Derivatives - Energy Related Liabilities $ (595) $ — $ (595) $ 5 (B) $ — $ (590) Derivatives - Other $ (6,017) $ — $ (6,017) $ — $ — $ (6,017) As of December 31, 2021 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 $ 117,529 $ — $ 117,529 $ (57,804) (A) $ (32,782) $ 26,943 Derivatives - Energy Related Liabilities $ (76,081) $ — $ (76,081) $ 57,804 (B) $ — $ (18,277) Derivatives - Other $ (8,000) $ — $ (8,000) $ — $ — $ (8,000) SJG: Derivatives - Energy Related Assets $ 9,903 $ — $ 9,903 $ (1,780) (A) $ — $ 8,123 Derivatives - Energy Related Liabilities $ (2,844) $ — $ (2,844) $ 1,780 (B) $ — $ (1,064) Derivatives - Other $ (8,000) $ — $ (8,000) $ — $ — $ (8,000) (A) The balances at March 31, 2022 and December 31, 2021 were related to derivative liabilities which can be net settled against derivative assets. (B) The balances at March 31, 2022 and December 31, 2021 were related to derivative assets which can be net settled against derivative liabilities. |
Effect of Derivatives on Income | The effect of derivative instruments on the condensed consolidated statements of income are as follows (in thousands): Three Months Ended Derivatives Previously in Cash Flow Hedging Relationships under GAAP 2022 2021 SJI (includes SJG and all other consolidated subsidiaries): Interest Rate Contracts: Losses reclassified from AOCL into income (a) $ (13) $ (12) SJG: Interest Rate Contracts: Losses reclassified from AOCL into income (a) $ (13) $ (12) (a) Included in Interest Charges Three Months Ended Derivatives Not Designated as Hedging Instruments under GAAP 2022 2021 SJI (no balances for SJG; includes all other consolidated subsidiaries): Losses on energy-related commodity contracts (a) $ (21,268) $ (44) (a) Included in Operating Revenues - Nonutility |
FAIR VALUE OF FINANCIAL ASSET_2
FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial 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 March 31, 2022 Total Level 1 Level 2 Level 3 SJI (includes SJG and all other consolidated subsidiaries): Assets Available-for-Sale Securities (A) $ 37 $ 37 $ — $ — Derivatives – Energy Related Assets (B) 202,235 119,438 65,413 17,384 $ 202,272 $ 119,475 $ 65,413 $ 17,384 SJG: Assets Derivatives – Energy Related Assets (B) $ 33,244 $ 20,879 $ 107 $ 12,258 $ 33,244 $ 20,879 $ 107 $ 12,258 SJI (includes SJG and all other consolidated subsidiaries): Liabilities Derivatives – Energy Related Liabilities (B) $ 128,139 $ 10,415 $ 98,110 $ 19,614 Derivatives – Other (C) 6,017 — 6,017 — $ 134,156 $ 10,415 $ 104,127 $ 19,614 SJG: Liabilities Derivatives – Energy Related Liabilities (B) $ 595 $ 5 $ 582 $ 8 Derivatives – Other (C) 6,017 — 6,017 — $ 6,612 $ 5 $ 6,599 $ 8 As of December 31, 2021 Total Level 1 Level 2 Level 3 SJI (includes SJG and all other consolidated subsidiaries): Assets Available-for-Sale Securities (A) $ 37 $ 37 $ — $ — Derivatives – Energy Related Assets (B) 117,529 56,260 52,277 8,992 $ 117,566 $ 56,297 $ 52,277 $ 8,992 SJG: Assets Derivatives – Energy Related Assets (B) $ 9,903 $ 4,648 $ 1,617 $ 3,638 $ 9,903 $ 4,648 $ 1,617 $ 3,638 SJI (includes SJG and all other consolidated subsidiaries): Liabilities Derivatives – Energy Related Liabilities (B) $ 76,081 $ 21,879 $ 45,890 $ 8,312 Derivatives – Other (C) 8,000 — 8,000 — $ 84,081 $ 21,879 $ 53,890 $ 8,312 SJG: Liabilities Derivatives – Energy Related Liabilities (B) $ 2,844 $ 1,780 $ 1,064 $ — Derivatives – Other (C) 8,000 — 8,000 — $ 10,844 $ 1,780 $ 9,064 $ — 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. (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. 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. 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. 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 – 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. |
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 March 31, 2022 Valuation Technique Significant Unobservable Input Range Assets Liabilities Forward Contract - Natural Gas $17,384 $19,614 Discounted Cash Flow Forward price (per dt) $2.27 - $12.20 [$5.27] (A) Type Fair Value at December 31, 2021 Valuation Technique Significant Unobservable Input Range Assets Liabilities Forward Contract - Natural Gas $8,916 $8,107 Discounted Cash Flow Forward price (per dt) $1.77 - $8.30 [$3.73] (A) SJG: Type Fair Value at March 31, 2022 Valuation Technique Significant Unobservable Input Range Assets Liabilities Forward Contract - Natural Gas $ 12,258 $ 8 Discounted Cash Flow Forward price (per dt) $4.37 - $11.52 [$6.92] (A) Type Fair Value at December 31, 2021 Valuation Technique Significant Unobservable Input Range Assets Liabilities Forward Contract - Natural Gas $ 3,638 $ — Discounted Cash Flow Forward price (per dt) $3.75 - $5.66 [$4.94] (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 Measurements 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 Three Months Ended SJI (includes SJG and all other consolidated subsidiaries): Balance at beginning of period $ 680 $ 11,006 Other Changes in Fair Value from Continuing and New Contracts, Net (398) 5,477 Settlements (2,512) (5,063) Balance at end of period $ (2,230) $ 11,420 SJG: Balance at beginning of period $ 3,638 $ 3,385 Other Changes in Fair Value from Continuing and New Contracts, Net 12,250 3,391 Settlements (3,638) (3,385) Balance at end of period $ 12,250 $ 3,391 |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregated revenues from contracts with customers are disclosed below, by operating segment (in thousands). Three Months Ended SJG Utility Operations ETG Utility Operations Wholesale Energy Operations Retail Services Renewables Corporate Services and Intersegment Total Customer Type: Residential $ 208,728 $ 117,538 $ 527 $ — $ — $ 326,793 Commercial & Industrial 77,889 58,867 447,411 21 5,356 (8,708) 580,836 OSS & Capacity Release 4,902 — — — — — 4,902 Other 913 188 — 1,393 — (135) 2,359 $ 292,432 $ 176,593 $ 447,411 $ 1,941 $ 5,356 $ (8,843) $ 914,890 Product/Service Line: Gas $ 292,432 $ 176,593 $ 447,411 $ — $ — $ (8,708) $ 907,728 Electric — — — 21 — — 21 Solar — — — — 1,016 — 1,016 Fuel Cells — — — — 3,748 — 3,748 Other — — — 1,920 592 (135) 2,377 $ 292,432 $ 176,593 $ 447,411 $ 1,941 $ 5,356 $ (8,843) $ 914,890 Three Months Ended SJG Utility Operations ETG Utility Operations Wholesale Energy Operations Retail Services Renewables Corporate Services and Intersegment Total Customer Type: Residential $ 166,589 $ 105,904 $ — $ 512 $ — $ — $ 273,005 Commercial & Industrial 60,313 49,654 373,967 1,607 6,423 (6,777) 485,187 OSS & Capacity Release 2,299 — — — — — 2,299 Other 761 192 — 935 — (96) 1,792 $ 229,962 $ 155,750 $ 373,967 $ 3,054 $ 6,423 $ (6,873) $ 762,283 Product/ Service Line: Gas $ 229,962 $ 155,750 $ 373,967 $ — $ — $ (6,699) $ 752,980 Electric — — — 1,607 — (78) 1,529 Solar — — — — 1,911 — 1,911 Landfills — — — — 425 — 425 Fuel Cells — — — — 4,087 — 4,087 Other — — — 1,447 — (96) 1,351 $ 229,962 $ 155,750 $ 373,967 $ 3,054 $ 6,423 $ (6,873) $ 762,283 |
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, 2022 $ 343,835 $ 87,357 Ending balance as of March 31, 2022 407,313 74,296 Increase (Decrease) $ 63,478 $ (13,061) Beginning balance as of January 1, 2021 $ 278,723 $ 85,423 Ending balance as of March 31, 2021 327,832 68,155 Increase (Decrease) $ 49,109 $ (17,268) SJG: Beginning balance as of January 1, 2022 $ 125,848 $ 43,236 Ending balance as of March 31, 2022 174,489 40,977 Increase (Decrease) $ 48,641 $ (2,259) Beginning balance as of January 1, 2021 $ 88,657 $ 46,837 Ending balance as of March 31, 2021 130,286 35,362 Increase (Decrease) $ 41,629 $ (11,475) (A) 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. |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | Feb. 23, 2022USD ($)$ / shares | Mar. 31, 2022USD ($)county | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Aug. 07, 2020 | Aug. 06, 2020 |
Public Utilities, General Disclosures [Line Items] | ||||||
Impairment, long-lived asset | $ 0 | |||||
Valuation allowance | $ 22,500,000 | $ 22,500,000 | ||||
Reserve from prior period tax positions | $ 13,900,000 | |||||
Income tax credits | $ 0 | |||||
NJ Boardwalk Holdings LLC | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Merger agreement, sale price per share (in dollars per share) | $ / shares | $ 36 | |||||
Merger agreement, termination period | 12 months | |||||
Merger agreement, contingent termination fee, payable | $ 140,000,000 | |||||
Merger agreement, contingent termination fee, receivable | $ 255,000,000 | |||||
EnerConnex, LLC | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Equity interest acquired (as a percent) | 75.00% | |||||
Equity interest in acquiree previously held (as a percent) | 25.00% | |||||
ETG Utility Operations | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Number of counties in which entity operates | county | 7 | |||||
South Jersey Gas Company | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Number of counties in which entity operates | county | 7 | |||||
Impairment, long-lived asset | $ 0 | |||||
Marina Energy LLC | Annadale | Annadale | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Ownership by parent (as a percent) | 93.00% | |||||
Marina Energy LLC | Annadale | Bronx Midco LLC | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Ownership by parent (as a percent) | 92.00% | |||||
Marina Energy LLC | Solar Energy Projects Acquisition | Annadale | Bronx Midco LLC | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Ownership by parent (as a percent) | 90.00% |
STOCK-BASED COMPENSATION PLAN -
STOCK-BASED COMPENSATION PLAN - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Feb. 23, 2022 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Service period of shares (in years) | 3 years | ||
Number of options granted (in shares) | 0 | 0 | |
Number of options outstanding (in shares) | 0 | 0 | |
Expected volatility, measurement period | 3 years | ||
Unrecognized compensation cost of awards granted under the plan | $ 10.4 | ||
Weighted average period over which unrecognized compensation cost is to be recognized. | 2 years 2 months 12 days | ||
NJ Boardwalk Holdings LLC | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Merger agreement, sale price per share (in dollars per share) | $ 36 | ||
Directors | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Vesting period of shares | 12 months | ||
Director shares vested | 100.00% | ||
Time-based Restricted Stock | Year one | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Service period of shares (in years) | 1 year | ||
Time-based Restricted Stock | Year two | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Service period of shares (in years) | 2 years | ||
Time-based Restricted Stock | Year three | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Service period of shares (in years) | 3 years | ||
Time-based Restricted Stock | Officers & Key Employees | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Vesting period of shares | 3 years | ||
Payout limit of vested shares | 100.00% | ||
Number of shares awarded (in shares) | 110,891 | ||
Fair value of shares awarded | $ 2.3 | $ 2.7 | |
Time-based Restricted Stock | Officers & Key Employees | Year one | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Vesting percentage | 33.33% | ||
Time-based Restricted Stock | Officers & Key Employees | Year two | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Vesting percentage | 33.33% | ||
Time-based Restricted Stock | Officers & Key Employees | Year three | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Vesting percentage | 33.33% | ||
Performance-based Restricted Shares | Officers & Key Employees | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Vesting period of shares | 3 years | ||
Restricted Stock | Officers & Key Employees | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Number of shares granted (in shares) | 184,935 | 0 | |
Restricted Stock | Officers & Key Employees | South Jersey Gas Company | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Number of shares granted (in shares) | 21,784 | 0 | |
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) | 0 | 0 | |
Stock Appreciation Rights (SARs) | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Number of shares granted (in shares) | 0 | 0 | |
Performance Shares | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Vesting period of shares | 3 years |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLAN - Nonvested Restricted Stock Awards and Fair Value Assumptions (Details) | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Directors | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares outstanding (in shares) | shares | 54,419 |
Fair value per share (in dollars per share) | $ / shares | $ 24.75 |
2020 - TSR | Officers & Key Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares outstanding (in shares) | shares | 31,957 |
Fair value per share (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 | 80,644 |
Fair value per share (in dollars per share) | $ / shares | $ 25.19 |
2021 - TSR | Officers & Key Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares outstanding (in shares) | shares | 35,091 |
Fair value per share (in dollars per share) | $ / shares | $ 28.11 |
Expected Volatility | 39.90% |
Risk-Free Interest Rate | 0.27% |
2021 - CEGR, Time | Officers & Key Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares outstanding (in shares) | shares | 171,526 |
Fair value per share (in dollars per share) | $ / shares | $ 25.33 |
2022 - TSR | Officers & Key Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares outstanding (in shares) | shares | 37,608 |
Fair value per share (in dollars per share) | $ / shares | $ 35.05 |
Expected Volatility | 43.60% |
Risk-Free Interest Rate | 1.83% |
2022 - CEGR, Time | Officers & Key Employees | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares outstanding (in shares) | shares | 147,327 |
Fair value per share (in dollars per share) | $ / shares | $ 35.05 |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLAN - Schedule of Stock Based Compensation Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total Cost | $ 1,429 | $ 1,274 |
Capitalized | (38) | (23) |
Net Expense | 1,391 | 1,251 |
Officers & Key Employees | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total Cost | 1,317 | 1,264 |
Directors | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total Cost | $ 112 | $ 10 |
STOCK-BASED COMPENSATION PLAN_4
STOCK-BASED COMPENSATION PLAN - Restricted Stock Activity (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restricted Stock | ||
Weighted Average Fair Value | ||
Nonvested shares outstanding, beginning balance (in dollars per share) | $ 26.72 | |
Granted (in dollars per share) | 35.05 | |
Cancelled/forfeited (in dollars per share) | 25.86 | |
Vested (in dollars per share) | 30.25 | |
Nonvested shares outstanding, ending balance (in dollars per share) | $ 28.69 | |
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 (in shares) | 492,475 | |
Granted (in shares) | 184,935 | 0 |
Cancelled/forfeited (in shares) | (71,775) | |
Vested (in shares) | (101,482) | |
Nonvested shares outstanding, ending balance (in shares) | 504,153 | |
Directors | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Nonvested shares outstanding, ending balance (in shares) | 54,419 | |
Weighted Average Fair Value | ||
Nonvested shares outstanding, ending balance (in dollars per share) | $ 24.75 | |
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 (in shares) | 54,419 | |
Granted (in shares) | 0 | 0 |
Cancelled/forfeited (in shares) | 0 | |
Vested (in shares) | 0 | |
Nonvested shares outstanding, ending balance (in shares) | 54,419 |
AFFILIATIONS, DISCONTINUED OP_3
AFFILIATIONS, DISCONTINUED OPERATIONS AND RELATED-PARTY TRANSACTIONS - Narrative (Details) - USD ($) | Apr. 01, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Schedule of Equity Method Investments [Line Items] | ||||
Investments in unconsolidated affiliates | $ (28,900,000) | $ 0 | ||
Notes receivable - affiliate | 82,100,000 | $ 69,900,000 | ||
Investment in Affiliates | 53,884,000 | 38,509,000 | ||
Net asset - included in investment in affiliates and other noncurrent liabilities | 53,900,000 | 38,500,000 | ||
Combined equity contributions and the notes receivable - affiliate | 136,000,000 | 108,500,000 | ||
Energenic US LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investment in Affiliates | $ 0 | |||
PennEast Pipeline Company, LLC (PennEast) | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interest (as a percent) | 20.00% | |||
Millennium Account Services, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interest (as a percent) | 50.00% | |||
Potato Creek, LLC (Potato Creek) | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interest (as a percent) | 30.00% | |||
REV LNG | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interest (as a percent) | 35.00% | |||
Red River | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interest (as a percent) | 80.00% | |||
Equity Method Investee | REV LNG | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Related party notes receivable | $ 77,400,000 | 62,600,000 | ||
ETG Utility Operations | Subsequent Event | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Minimum annual fee for long-term asset management agreement | $ 3,600,000 | |||
Unsecured promissory notes | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Notes receivable - affiliate | 2,700,000 | 5,300,000 | ||
Secured Debt | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Related party notes receivable | $ 2,000,000 | $ 2,000,000 | ||
Marina Energy LLC | Energenic US LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interest (as a percent) | 50.00% | |||
South Jersey Energy Company | EnergyMark | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity interest (as a percent) | 33.00% | |||
South Jersey Resource Group | EnergyMark | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Total operating revenue, affiliates | $ 11,600,000 | $ 7,400,000 |
AFFILIATIONS, DISCONTINUED OP_4
AFFILIATIONS, DISCONTINUED OPERATIONS AND RELATED-PARTY TRANSACTIONS - Related Party Transactions (Details) - South Jersey Gas Company - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating Revenues/Affiliates: | ||
Total Operating Revenues/Affiliates | $ 8,301 | $ 6,350 |
Operations Expense/Affiliates: | ||
Total Operations Expense/Affiliates | 8,326 | 7,463 |
SJRG | ||
Operating Revenues/Affiliates: | ||
Total Operating Revenues/Affiliates | 8,280 | 6,329 |
Cost of sales/affiliates | 80 | 1,367 |
SJI (parent company only) | ||
Operations Expense/Affiliates: | ||
Total Operations Expense/Affiliates | 6,372 | 5,564 |
SJIU | ||
Operations Expense/Affiliates: | ||
Total Operations Expense/Affiliates | 1,006 | 960 |
Millennium | ||
Operations Expense/Affiliates: | ||
Total Operations Expense/Affiliates | 930 | 866 |
Other | ||
Operating Revenues/Affiliates: | ||
Total Operating Revenues/Affiliates | 21 | 21 |
Operations Expense/Affiliates: | ||
Total Operations Expense/Affiliates | $ 18 | $ 73 |
COMMON STOCK - Summary of Share
COMMON STOCK - Summary of Shares Issued and Outstanding (Details) | 3 Months Ended |
Mar. 31, 2022shares | |
Common Stock [Roll Forward] | |
Beginning balance (in shares) | 117,340,493 |
New Issuances During the Period: | |
Settlement of Equity Forward Sale Agreement (in shares) | 4,996,062 |
Stock-based compensation plan (in shares) | 70,872 |
Ending balance (in shares) | 122,407,427 |
COMMON STOCK - Narrative (Detai
COMMON STOCK - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 18, 2022 | Mar. 22, 2021 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Feb. 23, 2022 | Dec. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Par value of common stock (in dollars per share) | $ 1.25 | ||||||
Shares of common stock outstanding (in shares) | 122,407,427 | 117,340,493 | |||||
Number of shares issued (in shares) | 4,996,062 | ||||||
Interest expense, stock sale contract value adjustment | $ 0.2 | ||||||
Stock sale contract liability, current | 23.8 | $ 23.8 | |||||
Stock sale contract liability, noncurrent | $ 28.9 | $ 34.6 | |||||
Incremental shares included in diluted EPS calculation (in shares) | 1,579,626 | 1,091,313 | |||||
NJ Boardwalk Holdings LLC | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Merger agreement, sale price per share (in dollars per share) | $ 36 | ||||||
Public Stock Offering | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Par value of common stock (in dollars per share) | $ 1.25 | ||||||
Number of shares offered (in shares) | 10,250,000 | ||||||
Price per share (in dollars per share) | $ 22.25 | ||||||
Number of shares issued (in shares) | 1,899,859 | ||||||
Private Placement | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares issued (in shares) | 4,996,062 | ||||||
Net proceeds from public offering, after underwriting discounts and commissions | $ 100.4 | ||||||
2021 Series B Remarketable Junior Subordinated Notes due 2029 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Effective interest rate (as a percent) | 2.10% | ||||||
Convertible | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Interest expense, coupon | $ 4.9 | $ 2.7 | |||||
South Jersey Gas Company | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Par value of common stock (in dollars per share) | $ 2.50 | ||||||
Shares of common stock outstanding (in shares) | 2,339,139 |
COMMON STOCK - Summary of Conve
COMMON STOCK - Summary of Convertible Units (Details) - Convertible - 2021 Series B Remarketable Junior Subordinated Notes due 2029 - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Principal | $ 335,000 | $ 335,000 |
Unamortized debt discount and issuance costs | 8,808 | 9,110 |
Net carrying amount | $ 326,192 | 325,890 |
Carrying amount of the equity component | $ 0 |
FINANCIAL INSTRUMENTS - Cash, C
FINANCIAL INSTRUMENTS - Cash, Cash Equivalents and Restricted Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and Cash Equivalents | $ 32,522 | $ 28,754 | ||
Restricted Investments | 84 | 686 | ||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | 32,606 | 29,440 | $ 31,868 | $ 41,831 |
South Jersey Gas Company | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and Cash Equivalents | 3,234 | 3,360 | ||
Restricted Investments | 34 | 686 | ||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 3,268 | $ 4,046 | $ 17,466 | $ 6,424 |
FINANCIAL INSTRUMENTS - Schedul
FINANCIAL INSTRUMENTS - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | $ 41,763 | $ 30,582 |
Provision for expected credit losses | 2,453 | 2,409 |
Regulated assets | 4,044 | 4,134 |
Recoveries of accounts previously written off | 79 | 230 |
Uncollectible accounts written off | (1,370) | (1,500) |
Balance at end of period | 46,969 | 35,855 |
South Jersey Gas Company | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | 25,166 | 17,359 |
Provision for expected credit losses | 1,834 | 1,760 |
Regulated assets | 1,752 | 2,194 |
Recoveries of accounts previously written off | 42 | 127 |
Uncollectible accounts written off | (428) | (967) |
Balance at end of period | $ 28,366 | $ 20,473 |
FINANCIAL INSTRUMENTS - Narrati
FINANCIAL INSTRUMENTS - Narrative (Details) - South Jersey Gas Company - Financing Receivable - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Inputs, Level 2 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying amount of loans, net of unamortized discounts | $ 1.6 | $ 1.7 |
Loans for upgrading equipment for energy efficiency | 57.7 | 55.4 |
Current portion of EET loans receivable | 11.7 | 11.1 |
Loans for upgrading equipment for energy efficiency, noncurrent | $ 46 | $ 44.3 |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Initial term of note (in years) | 3 years | |
Loans for upgrading equipment for energy efficiency, term (in years) | 2 years | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Initial term of note (in years) | 5 years | |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Net of: | ||
Finance lease, lease liability | $ 5,700 | $ 5,600 |
Fair Value, Inputs, Level 2 | ||
Debt Instrument [Line Items] | ||
Estimated fair values of long-term debt | 3,384,680 | 3,653,868 |
Carrying amounts of long-term debt, including current maturities | 3,253,647 | 3,255,085 |
Net of: | ||
Unamortized debt issuance costs | 37,446 | 38,462 |
Unamortized debt discounts | 5,113 | 5,135 |
South Jersey Gas Company | Fair Value, Inputs, Level 2 | ||
Debt Instrument [Line Items] | ||
Estimated fair values of long-term debt | 1,047,429 | 1,171,657 |
Carrying amounts of long-term debt, including current maturities | 1,039,480 | 1,041,811 |
Net of: | ||
Unamortized debt issuance costs | $ 8,557 | $ 8,726 |
SEGMENTS OF BUSINESS (Details)
SEGMENTS OF BUSINESS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Total Operating Revenues | $ 824,578 | $ 674,300 | |
Total Operating Income | 198,600 | 196,828 | |
Total Property Additions | 127,071 | 96,896 | |
Total Identifiable Assets | 7,456,826 | $ 7,308,672 | |
Discontinued Operations | |||
Segment Reporting Information [Line Items] | |||
Total Identifiable Assets | 25 | 47 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Total Operating Revenues | 849,855 | 694,966 | |
Operating Segments | Corporate and Services | |||
Segment Reporting Information [Line Items] | |||
Total Operating Revenues | 16,434 | 13,793 | |
Total Operating Income | (3,991) | 178 | |
Total Property Additions | 1,518 | 744 | |
Total Identifiable Assets | 362,381 | 370,899 | |
Operating Segments | Midstream | |||
Segment Reporting Information [Line Items] | |||
Total Property Additions | 0 | 4 | |
Total Identifiable Assets | 4,517 | 8,970 | |
Operating Segments | SJI Utilities | Subtotal SJI Utilities | |||
Segment Reporting Information [Line Items] | |||
Total Operating Revenues | 498,499 | 408,944 | |
Total Operating Income | 184,986 | 176,862 | |
Total Property Additions | 102,749 | 94,539 | |
Total Identifiable Assets | 6,636,622 | 6,556,362 | |
Operating Segments | SJI Utilities | SJG Utility Operations | |||
Segment Reporting Information [Line Items] | |||
Total Operating Revenues | 322,263 | 251,399 | |
Total Operating Income | 125,702 | 118,842 | |
Total Property Additions | 51,146 | 53,409 | |
Total Identifiable Assets | 3,784,373 | 3,767,897 | |
Operating Segments | SJI Utilities | ETG Utility Operations | |||
Segment Reporting Information [Line Items] | |||
Total Operating Revenues | 176,236 | 157,545 | |
Total Operating Income | 59,284 | 58,020 | |
Total Property Additions | 51,603 | 41,130 | |
Total Identifiable Assets | 2,852,249 | 2,788,465 | |
Operating Segments | Energy Management | Subtotal Energy Management | |||
Segment Reporting Information [Line Items] | |||
Total Operating Revenues | 329,566 | 265,806 | |
Total Operating Income | 18,630 | 17,088 | |
Total Property Additions | 0 | 0 | |
Total Identifiable Assets | 301,895 | 304,736 | |
Operating Segments | Energy Management | Wholesale Energy Operations | |||
Segment Reporting Information [Line Items] | |||
Total Operating Revenues | 327,497 | 261,910 | |
Total Operating Income | 17,451 | 17,308 | |
Total Property Additions | 0 | 0 | |
Total Identifiable Assets | 281,716 | 278,995 | |
Operating Segments | Energy Management | Retail Services | |||
Segment Reporting Information [Line Items] | |||
Total Operating Revenues | 2,069 | 3,896 | |
Total Operating Income | 1,179 | (220) | |
Total Property Additions | 0 | 0 | |
Total Identifiable Assets | 20,179 | 25,741 | |
Operating Segments | Energy Production | Decarbonization | |||
Segment Reporting Information [Line Items] | |||
Total Operating Revenues | 0 | 0 | |
Total Operating Income | (445) | 0 | |
Total Property Additions | 17,321 | 836 | |
Total Identifiable Assets | 195,091 | 138,787 | |
Operating Segments | Energy Production | Subtotal Energy Production | |||
Segment Reporting Information [Line Items] | |||
Total Operating Revenues | 5,356 | 6,423 | |
Total Operating Income | (1,025) | 2,700 | |
Total Property Additions | 22,804 | 1,609 | |
Total Identifiable Assets | 385,407 | 334,578 | |
Operating Segments | Energy Production | Renewables | |||
Segment Reporting Information [Line Items] | |||
Total Operating Revenues | 5,356 | 6,423 | |
Total Operating Income | (580) | 2,700 | |
Total Property Additions | 5,483 | 773 | |
Total Identifiable Assets | 190,316 | 195,791 | |
Intersegment | |||
Segment Reporting Information [Line Items] | |||
Total Operating Revenues | (25,277) | $ (20,666) | |
Total Identifiable Assets | $ (234,021) | $ (266,920) |
RATES AND REGULATORY ACTIONS (D
RATES AND REGULATORY ACTIONS (Details) - USD ($) $ in Millions | Jan. 01, 2022 | Feb. 24, 2022 | Mar. 31, 2022 | Apr. 30, 2022 |
New Jersey Board of Public Utilities | ETG Utility Operations | ||||
Schedule of Capitalization [Line Items] | ||||
Requested revenue increase (decrease) | $ 72.9 | |||
South Jersey Gas Company | Annual EET Rate Adjustment | ||||
Schedule of Capitalization [Line Items] | ||||
Requested revenue increase (decrease) | $ 1.6 | |||
South Jersey Gas Company | New Jersey Board of Public Utilities | Subsequent Event | ||||
Schedule of Capitalization [Line Items] | ||||
Investment amount | $ 73.1 | |||
South Jersey Gas Company | Accelerated Infrastructure Replacement Program | ||||
Schedule of Capitalization [Line Items] | ||||
Requested revenue increase (decrease) | $ 6.7 | |||
South Jersey Gas Company | Accelerated Infrastructure Replacement Program | New Jersey Board of Public Utilities | ||||
Schedule of Capitalization [Line Items] | ||||
Requested revenue increase (decrease) | $ 69 | |||
South Jersey Gas Company | Tax Reform | ||||
Schedule of Capitalization [Line Items] | ||||
Requested revenue increase (decrease) | 11.7 | |||
South Jersey Gas Company | Recovery Of Costs Of Energy Efficiency Programs | ||||
Schedule of Capitalization [Line Items] | ||||
Requested revenue increase (decrease) | $ 1.1 |
REGULATORY ASSETS AND REGULAT_3
REGULATORY ASSETS AND REGULATORY LIABILITIES - Regulatory Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
South Jersey Gas Company | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | $ 429,882 | $ 482,745 |
South Jersey Gas Company | Environmental Remediation Costs: Expended - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 150,400 | 151,630 |
South Jersey Gas Company | Liability for Future Expenditures | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 91,470 | 97,964 |
South Jersey Gas Company | Deferred ARO Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 49,311 | 47,784 |
South Jersey Gas Company | Deferred Pension and Other Postretirement Benefit Costs - Unrecognized Prior Service Cost | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
South Jersey Gas Company | Deferred Pension and Other Postretirement Benefit Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 47,504 | 47,504 |
South Jersey Gas Company | Deferred Gas Costs - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 369 | 38,234 |
South Jersey Gas Company | CIP Receivable | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 14,522 | 17,776 |
South Jersey Gas Company | SBC Receivable (excluding RAC) | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 7,637 | 7,519 |
South Jersey Gas Company | Deferred Interest Rate Contracts | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 6,017 | 8,002 |
South Jersey Gas Company | EET/EEP | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 16,786 | 20,632 |
South Jersey Gas Company | AFUDC - Equity Related Deferrals | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 12,345 | 12,199 |
South Jersey Gas Company | WNC | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
South Jersey Gas Company | Deferred COVID-19 Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 9,401 | 7,687 |
South Jersey Gas Company | Other Regulatory Assets | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 24,120 | 25,814 |
SJI | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 624,229 | 672,416 |
SJI | Environmental Remediation Costs: Expended - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 172,009 | 165,602 |
SJI | Liability for Future Expenditures | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 166,199 | 175,794 |
SJI | Deferred ARO Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 84,830 | 81,656 |
SJI | Deferred Pension and Other Postretirement Benefit Costs - Unrecognized Prior Service Cost | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 30,062 | 30,881 |
SJI | Deferred Pension and Other Postretirement Benefit Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 48,317 | 48,317 |
SJI | Deferred Gas Costs - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 369 | 38,234 |
SJI | CIP Receivable | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 18,737 | 20,731 |
SJI | SBC Receivable (excluding RAC) | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 7,637 | 7,519 |
SJI | Deferred Interest Rate Contracts | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 6,017 | 8,002 |
SJI | EET/EEP | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 20,766 | 25,831 |
SJI | AFUDC - Equity Related Deferrals | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 12,345 | 12,199 |
SJI | WNC | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 1,160 | 4,269 |
SJI | Deferred COVID-19 Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 22,005 | 17,912 |
SJI | Other Regulatory Assets | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 33,776 | 35,469 |
ETG Utility Operations | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 194,347 | 189,671 |
ETG Utility Operations | Environmental Remediation Costs: Expended - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 21,609 | 13,972 |
ETG Utility Operations | Liability for Future Expenditures | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 74,729 | 77,830 |
ETG Utility Operations | Deferred ARO Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 35,519 | 33,872 |
ETG Utility Operations | Deferred Pension and Other Postretirement Benefit Costs - Unrecognized Prior Service Cost | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 30,062 | 30,881 |
ETG Utility Operations | Deferred Pension and Other Postretirement Benefit Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 813 | 813 |
ETG Utility Operations | Deferred Gas Costs - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ETG Utility Operations | CIP Receivable | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 4,215 | 2,955 |
ETG Utility Operations | SBC Receivable (excluding RAC) | ||
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/EEP | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 3,980 | 5,199 |
ETG Utility Operations | AFUDC - Equity Related Deferrals | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ETG Utility Operations | WNC | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 1,160 | 4,269 |
ETG Utility Operations | Deferred COVID-19 Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 12,604 | 10,225 |
ETG Utility Operations | Other Regulatory Assets | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | $ 9,656 | $ 9,655 |
REGULATORY ASSETS AND REGULAT_4
REGULATORY ASSETS AND REGULATORY LIABILITIES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
South Jersey Gas Company | |||
Regulatory Assets [Line Items] | |||
Regulatory assets | $ 429,882 | $ 482,745 | |
South Jersey Gas Company | Environmental Remediation | |||
Regulatory Assets [Line Items] | |||
Original recovery period of expenditures | 7 years | ||
South Jersey Gas Company | Deferred COVID-19 Costs | |||
Regulatory Assets [Line Items] | |||
Regulatory assets | $ 9,401 | 7,687 | |
South Jersey Gas Company | Judicial Ruling | Pricing dispute, long-term gas supply contract | |||
Regulatory Assets [Line Items] | |||
Amount paid to third party supplier | 17,100 | $ 1,600 | 21,300 |
ETG Utility Operations | Deferred COVID-19 Costs | |||
Regulatory Assets [Line Items] | |||
Regulatory assets | $ 12,600 | $ 10,200 |
REGULATORY ASSETS AND REGULAT_5
REGULATORY ASSETS AND REGULATORY LIABILITIES - Regulatory Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
South Jersey Gas Company | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | $ 217,866 | $ 222,411 |
South Jersey Gas Company | Excess Plant Removal Costs | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 12,392 | 12,125 |
South Jersey Gas Company | Excess Deferred Taxes | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 199,350 | 206,902 |
South Jersey Gas Company | Deferred Gas Costs - Net | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 0 | 0 |
South Jersey Gas Company | Other Regulatory Liabilities | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 6,124 | 3,384 |
SJI | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 443,639 | 398,951 |
SJI | Excess Plant Removal Costs | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 47,218 | 46,113 |
SJI | Excess Deferred Taxes | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 309,615 | 317,905 |
SJI | Deferred Gas Costs - Net | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 75,416 | 28,842 |
SJI | Other Regulatory Liabilities | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 11,390 | 6,091 |
ETG Utility Operations | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 225,773 | 176,540 |
ETG Utility Operations | Excess Plant Removal Costs | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 34,826 | 33,988 |
ETG Utility Operations | Excess Deferred Taxes | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 110,265 | 111,003 |
ETG Utility Operations | Deferred Gas Costs - Net | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 75,416 | 28,842 |
ETG Utility Operations | Other Regulatory Liabilities | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | $ 5,266 | $ 2,707 |
PENSION AND OTHER POSTRETIREM_3
PENSION AND OTHER POSTRETIREMENT BENEFITS - Schedule of Defined Benefit Plans Disclosure (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service Cost | $ 1,319 | $ 1,591 |
Interest Cost | 3,415 | 3,236 |
Expected Return on Plan Assets | (6,201) | (5,834) |
Amortizations: | ||
Prior Service Cost | 18 | 25 |
Actuarial Loss | 1,839 | 3,194 |
Net Periodic Benefit Cost | 390 | 2,212 |
Capitalized Benefit Cost | (491) | (566) |
Deferred Benefit Cost (Credit) | 334 | (316) |
Total Net Periodic Benefit Expense | 233 | 1,330 |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service Cost | 173 | 212 |
Interest Cost | 502 | 475 |
Expected Return on Plan Assets | (1,692) | (1,436) |
Amortizations: | ||
Prior Service Cost | (156) | (156) |
Actuarial Loss | 35 | 273 |
Net Periodic Benefit Cost | (1,138) | (632) |
Capitalized Benefit Cost | (60) | (106) |
Deferred Benefit Cost (Credit) | 532 | 337 |
Total Net Periodic Benefit Expense | $ (666) | $ (401) |
PENSION AND OTHER POSTRETIREM_4
PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
South Jersey Gas Company | Pricing dispute, long-term gas supply contract | Judicial Ruling | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Amount paid to third party supplier | $ 17,100,000 | $ 1,600,000 | $ 21,300,000 |
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit cost | 390,000 | $ 2,212,000 | |
Contributions | 0 | ||
Pension Benefits | South Jersey Gas Company | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit cost | $ 100,000 | ||
Weighted average expected long term rate of return on plan assets (as a percent) | 7.25% | 7.25% | |
Contributions | $ 0 | ||
Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit cost | $ (1,138,000) | (632,000) | |
Other Postretirement Benefits | South Jersey Gas Company | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit cost | $ 1,100,000 | $ 500,000 | |
Weighted average expected long term rate of return on plan assets (as a percent) | 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 | $ 3,900,000 |
LINES OF CREDIT AND SHORT-TER_3
LINES OF CREDIT AND SHORT-TERM BORROWINGS - Schedule of Lines of Credit (Details) | Mar. 31, 2022USD ($) |
Line of Credit | |
Line of Credit Facility [Line Items] | |
Total Facility | $ 1,000,000,000 |
Usage | 109,000,000 |
Available Liquidity | 891,000,000 |
SJI | Line of Credit | Line of Credit | |
Line of Credit Facility [Line Items] | |
Total Facility | 500,000,000 |
Usage | 60,400,000 |
Available Liquidity | 439,600,000 |
Letters of credit outstanding | 15,400,000 |
South Jersey Gas Company | Line of Credit | Line of Credit | |
Line of Credit Facility [Line Items] | |
Letters of credit outstanding | 1,900,000 |
South Jersey Gas Company | Commercial Paper and Letters of Credit | Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Total Facility | 250,000,000 |
Usage | 9,200,000 |
Available Liquidity | 240,800,000 |
ETG | Line of Credit | Line of Credit | |
Line of Credit Facility [Line Items] | |
Letters of credit outstanding | 1,000,000 |
ETG | Line of Credit | Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Total Facility | 250,000,000 |
Usage | 39,400,000 |
Available Liquidity | $ 210,600,000 |
LINES OF CREDIT AND SHORT-TER_4
LINES OF CREDIT AND SHORT-TERM BORROWINGS - Narrative (Details) | Sep. 01, 2021 |
Line of Credit | Revolving Credit Facility | Master Revolving Credit Facility (the "Credit Agreement") | |
Line of Credit Facility [Line Items] | |
Term of agreement (in years) | 5 years |
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 Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Line of Credit Facility [Line Items] | ||
Maximum amounts outstanding | $ 375,300 | $ 452,900 |
South Jersey Gas Company | ||
Line of Credit Facility [Line Items] | ||
Maximum amounts outstanding | $ 108,000 | $ 47,500 |
Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Weighted average interest rate on borrowings (as a percent) | 1.21% | 1.40% |
Average borrowings outstanding, not including LOC | $ 268,243 | $ 366,500 |
Line of Credit | South Jersey Gas Company | ||
Line of Credit Facility [Line Items] | ||
Weighted average interest rate on borrowings (as a percent) | 0.39% | 0.19% |
Average borrowings outstanding, not including LOC | $ 59,738 | $ 21,200 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($)employeecontractlawsuitdecatherm | Dec. 31, 2021USD ($)employee | |
Loss Contingencies [Line Items] | ||
Annual supply contract fees | $ 92.9 | |
Total supply contract fees | $ 419.5 | |
Number of supply contracts executed | contract | 2 | |
Supply contracts, percentage of financial commitment to expire within five years | 46.00% | |
Number of employees | employee | 1,172 | 1,173 |
Approximate amount accrued related to all claims | $ 10.8 | $ 11.3 |
Complaints In Connection With Merger Agreement | ||
Loss Contingencies [Line Items] | ||
Number of complaints filed | decatherm | 8 | |
Lawsuits Filed in the United States District Court for the Southern District of New York | ||
Loss Contingencies [Line Items] | ||
Number of complaints filed | lawsuit | 5 | |
Lawsuits Filed in the United States District Court for the Eastern District of New York | ||
Loss Contingencies [Line Items] | ||
Number of complaints filed | lawsuit | 1 | |
Lawsuits Filed in the United States District Court for the District of New Jersey | ||
Loss Contingencies [Line Items] | ||
Number of complaints filed | lawsuit | 1 | |
Lawsuits Filed in the United States District Court for the Eastern District of Pennsylvania | ||
Loss Contingencies [Line Items] | ||
Number of complaints filed | lawsuit | 1 | |
REV LNG | ||
Loss Contingencies [Line Items] | ||
Committed capital contribution | $ 77.4 | $ 62.6 |
South Jersey Gas Company | ||
Loss Contingencies [Line Items] | ||
Number of employees | employee | 430 | 432 |
Approximate amount accrued related to all claims | $ 10 | $ 10 |
South Jersey Gas Company | Unionized Collective Bargaining Agreements | ||
Loss Contingencies [Line Items] | ||
Number of employees with labor union representation | employee | 292 | 289 |
Parental Guarantee | ||
Loss Contingencies [Line Items] | ||
Parental guarantees | $ 11.4 | |
Contract term | 1 year | |
ETG Utility Operations | Unionized Collective Bargaining Agreements | ||
Loss Contingencies [Line Items] | ||
Number of employees with labor union representation | employee | 232 | 233 |
DERIVATIVE INSTRUMENTS - Outsta
DERIVATIVE INSTRUMENTS - Outstanding Contracts (Details) MMcfe in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($)MMcfe | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Energy Related Derivative | |||
Derivative [Line Items] | |||
Unrealized gains (losses) | $ | $ 66.6 | $ 22.1 | |
Derivatives not designated as hedging instruments under GAAP | |||
Derivative [Line Items] | |||
Gain (loss) on energy related derivative instruments not designated as hedging instruments | $ | $ (21.3) | $ (0.1) | |
Derivatives not designated as hedging instruments under GAAP | Expected future purchases of natural gas (in MMdts) | Purchases | |||
Derivative [Line Items] | |||
Notional amount (natural gas in mmcfe and electricity in mwh) | 69,000 | ||
Derivatives not designated as hedging instruments under GAAP | Expected future purchases of natural gas (in MMdts) | Sales | |||
Derivative [Line Items] | |||
Notional amount (natural gas in mmcfe and electricity in mwh) | 81,300 | ||
Derivatives not designated as hedging instruments under GAAP | Basis and Index related net purchase contracts (in MMdts) | |||
Derivative [Line Items] | |||
Notional amount (natural gas in mmcfe and electricity in mwh) | 76,400 | ||
South Jersey Gas Company | Energy Related Derivative | |||
Derivative [Line Items] | |||
Unrealized gains (losses) | $ | $ 32.6 | $ 7.1 | |
South Jersey Gas Company | Derivatives not designated as hedging instruments under GAAP | Expected future purchases of natural gas (in MMdts) | Purchases | |||
Derivative [Line Items] | |||
Notional amount (natural gas in mmcfe and electricity in mwh) | 13,700 | ||
South Jersey Gas Company | Derivatives not designated as hedging instruments under GAAP | Expected future purchases of natural gas (in MMdts) | Sales | |||
Derivative [Line Items] | |||
Notional amount (natural gas in mmcfe and electricity in mwh) | 400 | ||
South Jersey Gas Company | Derivatives not designated as hedging instruments under GAAP | Basis and Index related net purchase contracts (in MMdts) | |||
Derivative [Line Items] | |||
Notional amount (natural gas in mmcfe and electricity in mwh) | 8,700 |
DERIVATIVE INSTRUMENTS - Intere
DERIVATIVE INSTRUMENTS - Interest Rate Swaps (Details) - South Jersey Gas Company | Mar. 31, 2022USD ($) |
Interest Rate Swap, $12,500,000 Contract 1 | |
Derivative [Line Items] | |
Notional Amount | $ 12,500,000 |
Fixed Interest Rate | 3.53% |
Interest Rate Swap, $12,500,000 Contract 2 | |
Derivative [Line Items] | |
Notional Amount | $ 12,500,000 |
Fixed Interest Rate | 3.43% |
DERIVATIVE INSTRUMENTS - Fair V
DERIVATIVE INSTRUMENTS - Fair Value of all Derivative Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Energy-related commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Assets | $ 202,235 | $ 117,529 |
Liabilities | 0 | 0 |
Energy-related commodity contracts | South Jersey Gas Company | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 33,244 | 9,903 |
Liabilities | 0 | 0 |
Derivatives not designated as hedging instruments under GAAP | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 202,235 | 117,529 |
Liabilities | 134,156 | 84,081 |
Derivatives not designated as hedging instruments under GAAP | South Jersey Gas Company | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 33,244 | 9,903 |
Liabilities | 6,612 | 10,844 |
Derivatives not designated as hedging instruments under GAAP | Energy-related commodity contracts | Derivatives - Energy Related - Current | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 150,133 | 95,041 |
Liabilities | 93,458 | 60,002 |
Derivatives not designated as hedging instruments under GAAP | Energy-related commodity contracts | Derivatives - Energy Related - Current | South Jersey Gas Company | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 32,804 | 9,396 |
Liabilities | 595 | 2,520 |
Derivatives not designated as hedging instruments under GAAP | Energy-related commodity contracts | Derivatives - Energy Related - Non-Current | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 52,102 | 22,488 |
Liabilities | 34,681 | 16,079 |
Derivatives not designated as hedging instruments under GAAP | Energy-related commodity contracts | Derivatives - Energy Related - Non-Current | South Jersey Gas Company | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 440 | 507 |
Liabilities | 0 | 324 |
Derivatives not designated as hedging instruments under GAAP | Interest rate contracts | Derivatives - Other - Current | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 435 | 568 |
Derivatives not designated as hedging instruments under GAAP | Interest rate contracts | Derivatives - Other - Current | South Jersey Gas Company | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 435 | 568 |
Derivatives not designated as hedging instruments under GAAP | Interest rate contracts | Derivatives - Other - Noncurrent | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 5,582 | 7,432 |
Derivatives not designated as hedging instruments under GAAP | Interest rate contracts | Derivatives - Other - Noncurrent | South Jersey Gas Company | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 0 |
Liabilities | $ 5,582 | $ 7,432 |
DERIVATIVE INSTRUMENTS - Offset
DERIVATIVE INSTRUMENTS - Offsetting Arrangements (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Energy-related commodity contracts | ||
Offsetting Derivative Assets | ||
Gross amounts of recognized assets/liabilities | $ 202,235 | $ 117,529 |
Gross amount offset in the balance sheet | 0 | 0 |
Net amounts of assets/liabilities in balance sheet | 202,235 | 117,529 |
Gross amounts not offset in the balance sheet, financial instruments | (73,066) | (57,804) |
Gross amounts not offset in the balance sheet, cash collateral posted/(received) | (75,456) | (32,782) |
Net amount | 53,713 | 26,943 |
Offsetting Derivative Liabilities | ||
Gross amounts of recognized assets/liabilities | (128,139) | (76,081) |
Gross amount offset in the balance sheet | 0 | 0 |
Net amounts of assets/liabilities in balance sheet | (128,139) | (76,081) |
Gross amounts not offset in the balance sheet, financial instruments | 73,066 | 57,804 |
Gross amounts not offset in the balance sheet, cash collateral posted/(received) | 0 | 0 |
Net amount | (55,073) | (18,277) |
Energy-related commodity contracts | South Jersey Gas Company | ||
Offsetting Derivative Assets | ||
Gross amounts of recognized assets/liabilities | 33,244 | 9,903 |
Gross amount offset in the balance sheet | 0 | 0 |
Net amounts of assets/liabilities in balance sheet | 33,244 | 9,903 |
Gross amounts not offset in the balance sheet, financial instruments | (5) | (1,780) |
Gross amounts not offset in the balance sheet, cash collateral posted/(received) | (16,084) | 0 |
Net amount | 17,155 | 8,123 |
Offsetting Derivative Liabilities | ||
Gross amounts of recognized assets/liabilities | (595) | (2,844) |
Gross amount offset in the balance sheet | 0 | 0 |
Net amounts of assets/liabilities in balance sheet | (595) | (2,844) |
Gross amounts not offset in the balance sheet, financial instruments | 5 | 1,780 |
Gross amounts not offset in the balance sheet, cash collateral posted/(received) | 0 | 0 |
Net amount | (590) | (1,064) |
Other | ||
Offsetting Derivative Liabilities | ||
Gross amounts of recognized assets/liabilities | (6,017) | (8,000) |
Gross amount offset in the balance sheet | 0 | 0 |
Net amounts of assets/liabilities in balance sheet | (6,017) | (8,000) |
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 | (6,017) | (8,000) |
Other | South Jersey Gas Company | ||
Offsetting Derivative Liabilities | ||
Gross amounts of recognized assets/liabilities | (6,017) | (8,000) |
Gross amount offset in the balance sheet | 0 | 0 |
Net amounts of assets/liabilities in balance sheet | (6,017) | (8,000) |
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 | $ (6,017) | $ (8,000) |
DERIVATIVE INSTRUMENTS - Effect
DERIVATIVE INSTRUMENTS - Effect of Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest rate contracts | Non-Utility Revenue | ||
Interest Rate Derivatives [Abstract] | ||
Losses reclassified from AOCL into income | $ (13) | $ (12) |
South Jersey Gas Company | Interest rate contracts | Non-Utility Revenue | ||
Interest Rate Derivatives [Abstract] | ||
Losses reclassified from AOCL into income | (13) | (12) |
Derivatives not designated as hedging instruments under GAAP | ||
Interest Rate Derivatives [Abstract] | ||
Losses on energy-related commodity contracts | (21,300) | (100) |
Derivatives not designated as hedging instruments under GAAP | Energy-related commodity contracts | ||
Interest Rate Derivatives [Abstract] | ||
Losses on energy-related commodity contracts | $ (21,268) | $ (44) |
FAIR VALUE OF FINANCIAL ASSET_3
FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES - Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Available-for-Sale Securities | $ 37 | $ 37 |
Fair Value, Measurements, Recurring | ||
Assets | ||
Available-for-Sale Securities | 37 | 37 |
Derivatives - energy related assets | 202,235 | 117,529 |
Total assets | 202,272 | 117,566 |
Liabilities | ||
Derivatives - energy related liabilities | 128,139 | 76,081 |
Derivatives - other | 6,017 | 8,000 |
Total liabilities | 134,156 | 84,081 |
Fair Value, Measurements, Recurring | South Jersey Gas Company | ||
Assets | ||
Derivatives - energy related assets | 33,244 | 9,903 |
Total assets | 33,244 | 9,903 |
Liabilities | ||
Derivatives - energy related liabilities | 595 | 2,844 |
Derivatives - other | 6,017 | 8,000 |
Total liabilities | 6,612 | 10,844 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets | ||
Available-for-Sale Securities | 37 | 37 |
Derivatives - energy related assets | 119,438 | 56,260 |
Total assets | 119,475 | 56,297 |
Liabilities | ||
Derivatives - energy related liabilities | 10,415 | 21,879 |
Derivatives - other | 0 | 0 |
Total liabilities | 10,415 | 21,879 |
Fair Value, Measurements, Recurring | Level 1 | South Jersey Gas Company | ||
Assets | ||
Derivatives - energy related assets | 20,879 | 4,648 |
Total assets | 20,879 | 4,648 |
Liabilities | ||
Derivatives - energy related liabilities | 5 | 1,780 |
Derivatives - other | 0 | 0 |
Total liabilities | 5 | 1,780 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Available-for-Sale Securities | 0 | 0 |
Derivatives - energy related assets | 65,413 | 52,277 |
Total assets | 65,413 | 52,277 |
Liabilities | ||
Derivatives - energy related liabilities | 98,110 | 45,890 |
Derivatives - other | 6,017 | 8,000 |
Total liabilities | 104,127 | 53,890 |
Fair Value, Measurements, Recurring | Level 2 | South Jersey Gas Company | ||
Assets | ||
Derivatives - energy related assets | 107 | 1,617 |
Total assets | 107 | 1,617 |
Liabilities | ||
Derivatives - energy related liabilities | 582 | 1,064 |
Derivatives - other | 6,017 | 8,000 |
Total liabilities | 6,599 | 9,064 |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets | ||
Available-for-Sale Securities | 0 | 0 |
Derivatives - energy related assets | 17,384 | 8,992 |
Total assets | 17,384 | 8,992 |
Liabilities | ||
Derivatives - energy related liabilities | 19,614 | 8,312 |
Derivatives - other | 0 | 0 |
Total liabilities | 19,614 | 8,312 |
Fair Value, Measurements, Recurring | Level 3 | South Jersey Gas Company | ||
Assets | ||
Derivatives - energy related assets | 12,258 | 3,638 |
Total assets | 12,258 | 3,638 |
Liabilities | ||
Derivatives - energy related liabilities | 8 | 0 |
Derivatives - other | 0 | 0 |
Total liabilities | $ 8 | $ 0 |
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 - Natural Gas $ in Thousands | Mar. 31, 2022USD ($)$ / decatherm | Dec. 31, 2021USD ($)$ / decatherm |
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Assets | $ | $ 17,384 | $ 8,916 |
Liabilities | $ | 19,614 | 8,107 |
South Jersey Gas Company | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Assets | $ | 12,258 | 3,638 |
Liabilities | $ | $ 8 | $ 0 |
Minimum | Forward price (per dt) | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Derivative, measurement input | 2.27 | 1.77 |
Minimum | South Jersey Gas Company | Forward price (per dt) | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Derivative, measurement input | 4.37 | 3.75 |
Maximum | Forward price (per dt) | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Derivative, measurement input | 12.20 | 8.30 |
Maximum | South Jersey Gas Company | Forward price (per dt) | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Derivative, measurement input | 11.52 | 5.66 |
Weighted Average | Forward price (per dt) | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Derivative, measurement input | 5.27 | 3.73 |
Weighted Average | South Jersey Gas Company | Forward price (per dt) | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Derivative, measurement input | 6.92 | 4.94 |
FAIR VALUE OF FINANCIAL ASSET_5
FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES - Changes in Measurements (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | $ 680 | $ 11,006 |
Other Changes in Fair Value from Continuing and New Contracts, Net | (398) | 5,477 |
Settlements | (2,512) | (5,063) |
Balance at end of period | (2,230) | 11,420 |
South Jersey Gas Company | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | 3,638 | 3,385 |
Other Changes in Fair Value from Continuing and New Contracts, Net | 12,250 | 3,391 |
Settlements | (3,638) | (3,385) |
Balance at end of period | $ 12,250 | $ 3,391 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - Series due 2026, 4.84 percent - Mortgages - South Jersey Gas Company $ in Millions | 1 Months Ended |
Mar. 31, 2022USD ($) | |
Debt Instrument [Line Items] | |
Repayments of debt | $ 2.5 |
Interest rate | 4.84% |
REVENUE - Disaggregated Revenue
REVENUE - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 914,890 | $ 762,283 |
Gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 907,728 | 752,980 |
Electric | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 21 | 1,529 |
Solar | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,016 | 1,911 |
Landfills | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 425 | |
Fuel Cells | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,748 | 4,087 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,377 | 1,351 |
Residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 326,793 | 273,005 |
Commercial & Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 580,836 | 485,187 |
OSS & Capacity Release | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 4,902 | 2,299 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,359 | 1,792 |
Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,393 | |
SJG Utility Operations | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 292,432 | 229,962 |
SJG Utility Operations | Gas | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 292,432 | 229,962 |
SJG Utility Operations | Residential | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 208,728 | 166,589 |
SJG Utility Operations | Commercial & Industrial | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 77,889 | 60,313 |
SJG Utility Operations | OSS & Capacity Release | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 4,902 | 2,299 |
SJG Utility Operations | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 913 | 761 |
ETG Utility Operations | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 176,593 | 155,750 |
ETG Utility Operations | Gas | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 176,593 | 155,750 |
ETG Utility Operations | Residential | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 117,538 | 105,904 |
ETG Utility Operations | Commercial & Industrial | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 58,867 | 49,654 |
ETG Utility Operations | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 188 | 192 |
Wholesale Energy Operations | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 447,411 | 373,967 |
Wholesale Energy Operations | Gas | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 447,411 | 373,967 |
Wholesale Energy Operations | Commercial & Industrial | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 447,411 | 373,967 |
Retail Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,941 | 3,054 |
Retail Services | Electric | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 21 | 1,607 |
Retail Services | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,920 | 1,447 |
Retail Services | Residential | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 527 | 512 |
Retail Services | Commercial & Industrial | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 21 | 1,607 |
Retail Services | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 935 | |
Renewables | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 5,356 | 6,423 |
Renewables | Solar | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,016 | 1,911 |
Renewables | Landfills | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 425 | |
Renewables | Fuel Cells | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,748 | 4,087 |
Renewables | Other | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 592 | |
Renewables | Commercial & Industrial | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 5,356 | 6,423 |
Corporate and Services | Intersegment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (8,843) | (6,873) |
Corporate and Services | Gas | Intersegment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (8,708) | (6,699) |
Corporate and Services | Electric | Intersegment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | (78) |
Corporate and Services | Other | Intersegment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (135) | (96) |
Corporate and Services | Residential | Intersegment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | |
Corporate and Services | Commercial & Industrial | Intersegment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (8,708) | (6,777) |
Corporate and Services | Other | Intersegment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ (135) | $ (96) |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues from alternative revenue programs | $ (6.2) | $ 1 |
South Jersey Gas Company | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues from alternative revenue programs | $ (5.8) | $ (0.8) |
REVENUE - Accounts Receivable (
REVENUE - Accounts Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts Receivable | ||||
Disaggregation of Revenue [Line Items] | ||||
Contracts with customers, asset | $ 407,313 | $ 327,832 | $ 343,835 | $ 278,723 |
Increase (decrease) in contracts with customers, asset | 63,478 | 49,109 | ||
Unbilled Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Contracts with customers, asset | 74,296 | 68,155 | 87,357 | 85,423 |
Increase (decrease) in contracts with customers, asset | (13,061) | (17,268) | ||
South Jersey Gas Company | Accounts Receivable | ||||
Disaggregation of Revenue [Line Items] | ||||
Contracts with customers, asset | 174,489 | 130,286 | 125,848 | 88,657 |
Increase (decrease) in contracts with customers, asset | 48,641 | 41,629 | ||
South Jersey Gas Company | Unbilled Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Contracts with customers, asset | 40,977 | 35,362 | $ 43,236 | $ 46,837 |
Increase (decrease) in contracts with customers, asset | $ (2,259) | $ (11,475) |
ACQUISITIONS & BUSINESS COMBI_2
ACQUISITIONS & BUSINESS COMBINATIONS - Narrative (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022USD ($) | Mar. 22, 2022 | Jun. 09, 2021MW | |
Catamaran | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Number of megawatts produced by fuel cell projects | MW | 5 | ||
Bronx Midco LLC | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Amount invested | $ 60.1 | ||
Bronx Midco LLC | Catamaran | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Ownership interest (as a percent) | 99.00% | ||
Amount invested | 34.1 | ||
Bronx Midco LLC | Marina Energy LLC | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Amount invested | 31.4 | ||
Non-controlling interest | $ 2.7 | ||
Useful life of fuel cell modules (in years) | 35 years | ||
Finance lease term | 35 years | ||
Bronx Midco LLC | Marina Energy LLC | Catamaran | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Ownership by parent (as a percent) | 92.00% | ||
Red River | SJI | Devco, LLC | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Ownership by parent (as a percent) | 80.00% |
GOODWILL AND IDENTIFIABLE INT_2
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Goodwill [Line Items] | |||
Goodwill | $ 706,960,000 | $ 706,960,000 | |
Amortization expense | 1,500,000 | $ 1,500,000 | |
Impairment of identifiable intangible assets | 0 | $ 0 | |
ETG Utility Operations | |||
Goodwill [Line Items] | |||
Goodwill | 700,200,000 | 700,200,000 | |
Retail Services | |||
Goodwill [Line Items] | |||
Goodwill | $ 6,800,000 | $ 6,800,000 |