DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION Document | 9 Months Ended | |
Sep. 30, 2014 | Nov. 03, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'SOUTH JERSEY GAS Co | ' |
Entity Central Index Key | '0001035216 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 2,339,139 |
CONDENSED_STATEMENTS_OF_INCOME
CONDENSED STATEMENTS OF INCOME (UNAUDITED) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Operating Revenues | $60,952 | $59,674 | $340,656 | $300,308 |
Operating Expenses: | ' | ' | ' | ' |
Cost of Sales (Excluding depreciation) | 23,400 | 24,717 | 151,572 | 128,427 |
Operations | 20,769 | 18,613 | 73,181 | 62,132 |
Maintenance | 3,275 | 3,353 | 9,715 | 10,140 |
Depreciation | 9,342 | 8,654 | 27,562 | 25,128 |
Energy and Other Taxes | 798 | 1,052 | 2,813 | 5,332 |
Total Operating Expenses | 57,584 | 56,389 | 264,843 | 231,159 |
Operating Income | 3,368 | 3,285 | 75,813 | 69,149 |
Other Income and Expense | 2,186 | 764 | 4,749 | 3,024 |
Interest Charges | -4,046 | -2,629 | -12,680 | -8,379 |
Income Before Income Taxes | 1,508 | 1,420 | 67,882 | 63,794 |
Income Taxes | -534 | -471 | -25,440 | -23,511 |
Net Income | $974 | $949 | $42,442 | $40,283 |
CONDENSED_STATEMENTS_OF_COMPRE
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' | ||||
Net Income | $974 | $949 | $42,442 | $40,283 | ||||
Other Comprehensive (Loss) Gain - Net of Tax: | ' | ' | ' | ' | ||||
Unrealized (Loss) Gain on Available-for-Sale Securities | -613 | [1] | 221 | [1] | -397 | [1] | -76 | [1] |
Unrealized Gain on Derivatives - Other | 6 | [1] | 7 | [1] | 21 | [1] | 21 | [1] |
Other Comprehensive (Loss) Gain - Net of Tax | -607 | [1] | 228 | [1] | -376 | [1] | -55 | [1] |
Comprehensive Income | $367 | $1,177 | $42,066 | $40,228 | ||||
[1] | Determined using a combined statutory tax rate of 41% . |
CONDENSED_STATEMENTS_OF_COMPRE1
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Combined statutory tax rate | 41.00% | 41.00% | 41.00% | 41.00% |
CONDENSED_STATEMENTS_OF_CASH_F
CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Cash Flows [Abstract] | ' | ' |
Net Cash Provided by Operating Activities | $55,242 | $109,974 |
Cash Flows from Investing Activities: | ' | ' |
Capital Expenditures | -139,393 | -118,383 |
Net Purchase of Restricted Investments in Margin Accounts | -1,391 | -809 |
Investment in Long-Term Receivables | -4,881 | -5,012 |
Proceeds from Long-Term Receivables | 5,075 | 5,376 |
Net Cash Used in Investing Activities | -140,590 | -118,828 |
Cash Flows from Financing Activities: | ' | ' |
Net (Repayments of)/Borrowings from Short-Term Credit Facilities | -6,200 | 7,900 |
Proceeds from Issuance of Long-Term Debt | 89,000 | 0 |
Principal Repayments of Long-Term Debt | -21,000 | -25,000 |
Payments for Issuance of Long-Term Debt | -627 | -30 |
Additional Investment by Shareholder | 25,000 | 25,000 |
Net Cash Provided by Financing Activities | 86,173 | 7,870 |
Net Increase (Decrease) in Cash and Cash Equivalents | 825 | -984 |
Cash and Cash Equivalents at Beginning of Period | 2,020 | 2,678 |
Cash and Cash Equivalents at End of Period | $2,845 | $1,694 |
CONDENSED_BALANCE_SHEETS_UNAUD
CONDENSED BALANCE SHEETS (UNAUDITED) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Property, Plant and Equipment: | ' | ' | ||
Utility Plant, at original cost | $1,955,876 | $1,816,804 | ||
Accumulated Depreciation | -410,413 | -392,029 | ||
Property, Plant and Equipment - Net | 1,545,463 | 1,424,775 | ||
Investments: | ' | ' | ||
Available-for-Sale Securities | 8,990 | 8,696 | ||
Restricted Investments | 2,071 | 680 | ||
Total Investments | 11,061 | 9,376 | ||
Current Assets: | ' | ' | ||
Cash and Cash Equivalents | 2,845 | 2,020 | ||
Accounts Receivable | 55,301 | 60,317 | ||
Accounts Receivable - Related Parties | 810 | 968 | ||
Unbilled Revenues | 7,820 | 41,510 | ||
Provision for Uncollectibles | -6,004 | -4,553 | ||
Natural Gas in Storage, average cost | 31,420 | 20,811 | ||
Materials and Supplies, average cost | 1,195 | 1,798 | ||
Deferred Income Taxes - Net | 30,434 | 23,309 | ||
Prepaid Taxes | 20,838 | 7,683 | ||
Derivatives - Energy Related Assets | 360 | 1,222 | ||
Other Prepayments and Current Assets | 4,233 | 3,819 | ||
Total Current Assets | 149,252 | 158,904 | ||
Regulatory and Other Noncurrent Assets: | ' | ' | ||
Regulatory Assets | 332,243 | 296,081 | ||
Unamortized Debt Issuance Costs | 7,578 | 6,523 | ||
Long-Term Receivables | 10,076 | 10,252 | ||
Derivatives - Energy Related Assets | 47 | 278 | ||
Other | 2,884 | 2,937 | ||
Total Regulatory and Other Noncurrent Assets | 352,828 | 316,071 | ||
Total Assets | 2,058,604 | 1,909,126 | ||
Common Equity: | ' | ' | ||
Common Stock, Par Value $2.50 per share: Authorized - 4,000,000 shares Outstanding - 2,339,139 shares | 5,848 | 5,848 | ||
Other Paid-In Capital and Premium on Common Stock | 250,972 | 225,972 | ||
Accumulated Other Comprehensive Loss | -11,245 | [1],[2] | -10,869 | [1] |
Retained Earnings | 432,460 | 390,018 | ||
Total Common Equity | 678,035 | 610,969 | ||
Long-Term Debt | 533,000 | 454,000 | ||
Total Capitalization | 1,211,035 | 1,064,969 | ||
Current Liabilities: | ' | ' | ||
Notes Payable | 59,300 | 65,500 | ||
Current Portion of Long-Term Debt | 10,000 | 21,000 | ||
Accounts Payable - Commodity | 11,479 | 24,232 | ||
Accounts Payable - Other | 40,210 | 32,072 | ||
Accounts Payable - Related Parties | 3,646 | 6,638 | ||
Derivatives - Energy Related Liabilities | 3,069 | 711 | ||
Customer Deposits and Credit Balances | 20,173 | 15,089 | ||
Environmental Remediation Costs | 21,429 | 15,422 | ||
Taxes Accrued | 1,650 | 1,767 | ||
Pension Benefits | 1,241 | 1,241 | ||
Interest Accrued | 5,060 | 6,039 | ||
Other Current Liabilities | 4,145 | 5,629 | ||
Total Current Liabilities | 181,402 | 195,340 | ||
Regulatory and Other Noncurrent Liabilities: | ' | ' | ||
Regulatory Liabilities | 46,104 | 60,949 | ||
Deferred Income Taxes - Net | 414,681 | 380,975 | ||
Environmental Remediation Costs | 98,435 | 104,070 | ||
Asset Retirement Obligations | 41,842 | 41,178 | ||
Pension and Other Postretirement Benefits | 50,926 | 48,197 | ||
Investment Tax Credits | 201 | 360 | ||
Derivatives - Energy Related Liabilities | 199 | 48 | ||
Derivatives - Other | 5,778 | 3,735 | ||
Other | 8,001 | 9,305 | ||
Total Regulatory and Other Noncurrent Liabilities | 666,167 | 648,817 | ||
Commitments and Contingencies | ' | ' | ||
Total Capitalization and Liabilities | $2,058,604 | $1,909,126 | ||
[1] | Determined using a combined statutory tax rate of 41%. | |||
[2] | Determined using a combined statutory tax rate of 41% . |
CONDENSED_BALANCE_SHEETS_UNAUD1
CONDENSED BALANCE SHEETS (UNAUDITED) (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Common Stock, Par Value (in dollars per share) | $2.50 | $2.50 |
Authorized (in shares) | 4,000,000 | 4,000,000 |
Outstanding (in shares) | 2,339,139 | 2,339,139 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: | |
THE ENTITY - South Jersey Industries, Inc. (SJI) owns all of the outstanding common stock of South Jersey Gas Company (SJG or the Company), a regulated natural gas utility. SJG distributes natural gas in the seven southern most counties of New Jersey. In our opinion, the condensed financial statements reflect all normal and recurring adjustments needed to fairly present our financial position and operating results at the dates and for the periods presented. SJG’s business is 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 Securities and Exchange Commission, the accompanying condensed financial statements contain certain condensed financial information and exclude certain note disclosures normally included in annual audited financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). These condensed financial statements should be read in conjunction with SJG’s Annual Report on Form 10-K for the year ended December 31, 2013 for a more complete discussion of our accounting policies and certain other information. | |
Certain reclassifications have been made to the prior periods regulatory assets disclosure to conform to the current period presentation. The deferred pipeline integrity cost and allowance for funds used during construction (AFUDC) - equity related deferrals previously included in "Other Regulatory Assets" were reclassified to the line items "Pipeline Integrity Cost" and "AFUDC - Equity Related Deferrals", respectively, in the regulatory asset table disclosed in Note 4. | |
REVENUE AND THROUGHPUT - BASED TAXES - SJG collects certain revenue-based energy taxes from its customers. Such taxes include New Jersey State Sales Tax and Public Utilities Assessment (PUA). State sales tax is recorded as a liability when billed to customers and is not included in revenue or operating expenses. The PUA is included in both revenues and cost of sales, and totaled $0.2 million and $0.1 million for the three months ended September 30, 2014 and 2013, respectively and $0.8 million and $0.6 million for the nine months ended September 30, 2014 and 2013, respectively. In prior years, SJG collected a throughput-based energy tax from customers in the form of a Transitional Energy Facility Assessment (TEFA). The TEFA was eliminated effective January 1, 2014. | |
NEW ACCOUNTING PRONOUNCEMENTS — Other than as described below, no new accounting pronouncement issued or effective during 2014 or 2013 had, or is expected to have, a material impact on the condensed financial statements. | |
In July 2013, the FASB issued Accounting Standard Update (ASU) 2013-11, Balance Sheet Presentation of an Unrecognized Income Tax Benefit for a Net Operating Loss or Tax Credit Carryforward. This ASU provides that a liability related to an unrecognized tax benefit should be offset against a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance did not have an impact on the Company's financial statement results. | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), This ASU supersedes the revenue recognition requirements in FASB ASC 605, Revenue Recognition, and in most industry-specific topics. The new guidance identifies how and when entities should recognize revenue. The new rules establish a core principle requiring the recognition of revenue to depict the transfer of promised goods or service to customers in an amount reflecting the consideration to which the entity expects to be entitled in exchange for such goods or services. The new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Management is currently determining the impact that adoption of this guidance will have on the Company's financial statement results. | |
In August 2014, the FASB issued ASU 2014-15, "Presentation of Financial Statements - Going Concern (Subtopic 205-40); Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern," The new guidance requires management of a company to evaluate whether there is substantial doubt about the company's ability to continue as a going concern. This ASU is effective for the annual reporting period ending after December 15, 2016, and for interim and annual reporting periods thereafter, with early adoption permitted. Management does not expect this standard to have an impact on the Company's financial statements upon adoption. |
STOCKBASED_COMPENSATION_PLANS
STOCK-BASED COMPENSATION PLANS | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
STOCK-BASED COMPENSATION PLANS | ' | |||||||||||||
STOCK-BASED COMPENSATION PLANS: | ||||||||||||||
Officers and other key employees of SJG participate in the Stock-Based Compensation Plan (Plan) of SJI. Restricted shares issued under the Plan vest over a three-year period and are subject to SJI achieving certain market or earnings-based performance targets as compared to a peer group average, which can cause the actual amount of shares that ultimately vest to range from between 0% to 150% of the original share units granted. Grants containing market-based performance targets use SJI's total shareholder return (TSR) relative to a peer group to measure performance. Grants containing earnings-based targets are based on SJI's earnings per share (EPS) growth rate relative to a peer group to measure performance. | ||||||||||||||
See Note 2 to the Financial Statements in Item 8 of SJG's Annual Report on Form 10-K as of December 31, 2013 for the related accounting policy. | ||||||||||||||
The following table summarizes the SJI nonvested restricted stock awards pertaining to SJG outstanding at September 30, 2014, and the assumptions used to estimate the fair value of the awards: | ||||||||||||||
Grant Date | Shares | Fair Value | Expected | Risk-Free | ||||||||||
Outstanding | Per Share | Volatility | Interest Rate | |||||||||||
Jan. 2012 - TSR | 3,533 | $ | 51.23 | 22.5 | % | 0.43 | % | |||||||
Jan. 2012 - EPS | 3,533 | $ | 56.93 | n/a | n/a | |||||||||
Jan. 2013 - TSR | 4,001 | $ | 44.38 | 21.1 | % | 0.4 | % | |||||||
Jan. 2013 - EPS | 4,001 | $ | 51.18 | n/a | n/a | |||||||||
Jan. 2014 - TSR | 5,197 | $ | 44.32 | 20 | % | 0.8 | % | |||||||
Jan. 2014 - EPS | 5,197 | $ | 54.44 | 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 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. | ||||||||||||||
The cost for restricted stock awards during 2014 and 2013 is approximately $0.1 million per quarter. | ||||||||||||||
As of September 30, 2014, there was $0.6 million of total unrecognized compensation cost related to nonvested share-based compensation awards granted under the Plan. That cost is expected to be recognized over a weighted average period of 1.9 years. | ||||||||||||||
The following table summarizes information regarding restricted stock award activity during the nine months ended September 30, 2014, excluding accrued dividend equivalents: | ||||||||||||||
Shares | Weighted | |||||||||||||
Average | ||||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Nonvested Shares Outstanding, January 1, 2014 | 15,068 | $ | 50.73 | |||||||||||
Granted | 10,394 | $ | 49.38 | |||||||||||
Nonvested Shares Outstanding, September 30, 2014 | 25,462 | $ | 50.18 | |||||||||||
Performance targets during the three-year vesting period were not attained for the January 2011 grant that vested at December 31, 2013. As a result, no shares were awarded in 2014. During the nine months ended September 30, 2013, SJI awarded 12,901 shares that had vested at December 31, 2012, to SJG's officers and other key employees at a market value of $0.6 million. SJG has a policy of making cash payments to SJI to satisfy its obligations under the Plan. Cash payments to SJI during each of the nine months ended September 30, 2014 and 2013 were approximately $0.4 million relating to stock awards. Additionally, a change in control could result in the nonvested shares becoming nonforfeitable or immediately payable in cash. |
RATES_AND_REGULATORY_ACTIONS
RATES AND REGULATORY ACTIONS | 9 Months Ended |
Sep. 30, 2014 | |
Public Utilities, General Disclosures [Abstract] | ' |
RATES AND REGULATORY ACTIONS | ' |
RATES AND REGULATORY ACTIONS: | |
SJG is subject to the rules and regulations of the New Jersey Board of Public Utilities (BPU). | |
Effective October 1, 2014, the BPU granted SJG a base rate increase of $20 million, which was predicated in part upon a 7.10% rate of return on rate base that included a 9.75% return on common equity. The $20 million base rate increase includes approximately $7.5 million associated with previously approved Accelerated Infrastructure Replacement Program (AIRP) investments that were rolled into rate base. SJG was also permitted to recover regulatory assets contained in its petition and reduce its composite depreciation rate from 2.4% to 2.1%. | |
In May 2014, SJG filed its annual Energy Efficiency Tracker (EET) petition requesting a 0.19% increase in rates to recover the costs of, and the allowed return on, prior investments associated with energy efficiency programs. The petition is currently pending. Effective October 1, 2014, the BPU approved a revenue increase of $2.2 million associated with prior annual EET filings. | |
Also effective October 1, 2014, the BPU approved a $6.4 million decrease in revenues associated with the Company’s Societal Benefits Program. | |
In May 2014, SJG received BPU approval to continue the Conservation Incentive Program (CIP), with certain modifications. | |
Also in May 2014, SJG filed its annual Basic Gas Supply Service (BGSS) and CIP petition, requesting a $4.9 million increase in annual revenues. The Petition proposes to recover over a two-year period higher than normal gas costs caused by colder than normal weather. The Petition also proposes to return to customers, through a reduction to the current CIP rate, excess margin recoveries caused by colder than normal weather. Provisional rates were approved by the BPU effective October 1, 2014. | |
In September 2014, the BPU approved the statewide Universal Service Fund (USF) budget of $71.8 million for all the State’s gas utilities. The Company’s portion of the total is approximately $7.9 million. Effective October 1, 2014, the BPU approved a $2.6 million increase to the Company’s USF recoveries. | |
In August 2014, the BPU approved SJG’s Storm Hardening and Reliability Program (SHARP), authorizing SJG to invest $103.5 million over three years for system hardening on barrier islands. SJG will earn on a return on these investments as they are made and will reflect the investments in base rates through annual rate adjustments. | |
In January 2014, SJG credited the accounts of our periodic BGSS customers with refunds totaling $11.2 million based on a projected over collection, at that time, due to lower gas costs. | |
There have been no other significant regulatory actions or changes to SJG's rate structure since December 31, 2013. See Note 3 to the Financial Statements in Item 8 of SJG's Form 10-K as of December 31, 2013. |
REGULATORY_ASSETS_AND_LIABILIT
REGULATORY ASSETS AND LIABILITIES | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Regulatory Assets and Liabilities Disclosure [Abstract] | ' | |||||||
REGULATORY ASSETS AND LIABILITIES | ' | |||||||
REGULATORY ASSETS AND LIABILITIES: | ||||||||
There have been no significant changes to the nature of SJG’s regulatory assets and liabilities since December 31, 2013, which are described in Notes 3 and 4 to the Financial Statements in Item 8 of SJG’s Form 10-K as of December 31, 2013. | ||||||||
Regulatory Assets consisted of the following items (in thousands): | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Environmental Remediation Costs: | ||||||||
Expended - Net | $ | 28,520 | $ | 29,945 | ||||
Liability for Future Expenditures | 119,864 | 119,492 | ||||||
Deferred Asset Retirement Obligation Costs | 31,598 | 31,142 | ||||||
Deferred Pension and Other Postretirement Benefit Costs | 59,284 | 59,284 | ||||||
Deferred Gas Costs - Net | 47,008 | — | ||||||
Conservation Incentive Program Receivable | — | 10,526 | ||||||
Societal Benefit Costs Receivable | 1,974 | 10,408 | ||||||
Premium for Early Retirement of Debt | — | 955 | ||||||
Deferred Interest Rate Contracts (Note 11) | 5,778 | 3,735 | ||||||
Energy Efficiency Tracker | 15,906 | 10,420 | ||||||
Pipeline Supplier Service Charges | 5,857 | 7,106 | ||||||
Pipeline Integrity Cost | 3,342 | 2,902 | ||||||
AFUDC - Equity Related Deferrals | 10,657 | 7,810 | ||||||
Other Regulatory Assets | 2,455 | 2,356 | ||||||
Total Regulatory Assets | $ | 332,243 | $ | 296,081 | ||||
DEFERRED GAS COSTS - NET - Over/under collections of gas costs are monitored through SJG's BGSS mechanism. Net undercollected gas costs are classified as a regulatory asset and net overcollected gas costs are classified as a regulatory liability. Derivative contracts used to hedge natural gas purchases are also included in the BGSS, subject to BPU approval. The change from a $19.1 million regulatory liability at December 31, 2013 to a $47.0 million regulatory asset at September 30, 2014 was due to the actual cost of the commodity incurred during the first nine months of 2014 exceeding the gas costs recovered from the customers as a result of higher prices. | ||||||||
CONSERVATION INCENTIVE PROGRAM (CIP) RECEIVABLE – The CIP tracking mechanism adjusts earnings when actual usage per customer experienced during the period varies from an established baseline usage per customer. Actual usage per customer was greater than the established baseline during the first nine months of 2014 resulting in a payable that is recorded in the table below as a regulatory liability. The change from a receivable to a related payable is primarily the result of colder weather experienced in the region during the first and second quarters of 2014. | ||||||||
SOCIETAL BENEFIT COSTS RECEIVABLE - This regulatory asset primarily represents the deferred expenses under the New Jersey Clean Energy Program which is a mechanism designed to recover costs associated with energy efficiency and renewable energy programs. The decrease in the asset is due to colder weather experienced in the region during the first half of 2014 resulting in increased recoveries of the deferred expense. | ||||||||
Regulatory Liabilities consisted of the following items (in thousands): | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Excess Plant Removal Costs | $ | 37,405 | $ | 40,029 | ||||
Deferred Revenues-Net | — | 19,067 | ||||||
Conservation Incentive Program Payable | 7,899 | — | ||||||
Other Regulatory Liabilities | 800 | 1,853 | ||||||
Total Regulatory Liabilities | $ | 46,104 | $ | 60,949 | ||||
EXCESS PLANT REMOVAL COSTS - Represents amounts accrued in excess of actual utility plant removal costs incurred to date. The decrease in the balance from year-end is due to an amortization as a credit to depreciation expense, as required as part of our September 2010 base rate increase, and an increase in retirement activity related to the AIRP projects. | ||||||||
DEFERRED REVENUES - NET - Over/under collections of gas costs are monitored through SJG's BGSS mechanism. Net undercollected gas costs are classified as a regulatory asset and net overcollected gas costs are classified as a regulatory liability. Derivative contracts used to hedge natural gas purchases are also included in the BGSS, subject to BPU approval. See "Deferred Gas -Costs - Net" above. | ||||||||
CONSERVATION INCENTIVE PROGRAM PAYABLE – The CIP tracking mechanism adjusts earnings when actual usage per customer experienced during the period varies from an established baseline usage per customer. See "Conservation Incentive Program (CIP) Receivable" above. |
RELATEDPARTY_TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||||
RELATED-PARTY TRANSACTIONS | ' | |||||||||||||||
RELATED-PARTY TRANSACTIONS: | ||||||||||||||||
There have been no significant changes in the nature of SJG’s related-party transactions since December 31, 2013. See Note 5 to the Financial Statements in Item 8 of SJG’s Form 10-K as of December 31, 2013 for a detailed description of such transactions. | ||||||||||||||||
A summary of related party transactions, excluding pass-through items, included in Operating Revenues were as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Operating Revenues/Affiliates: | ||||||||||||||||
SJRG | $ | 169 | $ | 344 | $ | 552 | $ | 1,194 | ||||||||
Marina | 278 | 335 | 914 | 973 | ||||||||||||
Other | — | — | — | 1 | ||||||||||||
Total Operating Revenue/Affiliates | $ | 447 | $ | 679 | $ | 1,466 | $ | 2,168 | ||||||||
Related-party transactions, excluding pass-through items, included in Operating Expenses were as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Costs of Sales/Affiliates (Excluding depreciation): | ||||||||||||||||
SJRG | $ | 1,686 | $ | 5,436 | $ | 8,612 | $ | 11,105 | ||||||||
Energy-Related Derivative (Gains) / Losses * | ||||||||||||||||
SJRG | $ | (92 | ) | $ | 389 | $ | (1,612 | ) | $ | 568 | ||||||
* Contracts used to hedge natural gas purchases. Included in Cost of Sales on the Condensed Statement of Income. | ||||||||||||||||
Operations Expense/Affiliates | ||||||||||||||||
SJI | $ | 2,901 | $ | 2,737 | $ | 10,079 | $ | 8,613 | ||||||||
SJIS** | — | 1,330 | — | 4,264 | ||||||||||||
Millennium | 687 | 665 | 1,982 | 2,014 | ||||||||||||
Other | (111 | ) | (103 | ) | (327 | ) | (336 | ) | ||||||||
Total Operations Expense/Affiliates | $ | 3,477 | $ | 4,629 | $ | 11,734 | $ | 14,555 | ||||||||
** SJIS was dissolved effective January 1, 2014. All services previously provided by SJIS are currently being provided by SJI. |
FINANCIAL_INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended | |
Sep. 30, 2014 | ||
Financial Instruments, Owned, at Fair Value [Abstract] | ' | |
FINANCIAL INSTRUMENTS | ' | |
FINANCIAL INSTRUMENTS: | ||
RESTRICTED INVESTMENTS - In accordance with the terms of our tax-exempt first mortgage bonds, unused proceeds are required to be escrowed pending approved construction expenditures. As of both September 30, 2014 and December 31, 2013, the escrowed proceeds, including interest earned, totaled $0.1 million. SJG established a margin account with SJRG in conjunction with SJG's risk management activities as detailed in Note 11. The funds provided by SJG will increase or decrease as the number and value of outstanding energy-related contracts held with SJRG changes. As of September 30, 2014 and December 31, 2013, the balance held with SJRG totaled $0.1 million and $0.5 million, respectively. SJG also established a margin account with another counterparty in conjunction with SJG's risk management activities as detailed in Note 11. The funds provided by SJG will increase or decrease as the number and value of outstanding energy-related contracts held with this counterparty changes. As of September 30, 2014, the balance held with this counterparty totaled $1.8 million. There was no balance held with this counterparty as of December 31, 2013. The carrying amounts of the Restricted Investments approximate their fair value at September 30, 2014 and December 31, 2013, which would be included in Level 1 of the fair value hierarchy. (See Note 10 - Fair Value of Financial Assets and Financial Liabilities.) | ||
LONG-TERM RECEIVABLES – SJG provides financing to customers for the purpose of attracting conversions to natural gas heating systems from competing fuel sources. The terms of these loans call for customers to make monthly payments over a period of up to five years with no interest. The carrying amounts of such loans were $14.9 million and $15.0 million as of September 30, 2014 and December 31, 2013, respectively. The current portion of these receivables is reflected in Accounts Receivable and the non-current portion is reflected in Long-Term Receivables on the condensed balance sheets. The carrying amounts noted above are net of unamortized discounts resulting from imputed interest in the amount of $1.2 million as of both September 30, 2014 and December 31, 2013. The annualized amortization to interest is not material to SJG’s financial statements. The carrying amounts of these receivables approximate their fair value at September 30, 2014 and December 31, 2013, which would be included in Level 2 of the fair value hierarchy. (See Note 10 - Fair Value of Financial Assets and Financial Liabilities.) | ||
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 SJG's financial instruments approximate their fair values at September 30, 2014 and December 31, 2013, except as noted below. | ||
• | For Long-Term Debt, in estimating the fair value, we use the present value of remaining cash flows at the balance sheet date. We based the estimates on interest rates available to SJG at the end of each period for debt with similar terms and maturities (Level 2 in the fair value hierarchy. See Note 10 - Fair Value of Financial Assets and Financial Liabilities.) The estimated fair values of SJG's long-term debt, including current maturities, as of September 30, 2014 and December 31, 2013, were $572.2 million and $486.5 million, respectively. The carrying amounts of SJG's long-term debt, including current maturities, as of September 30, 2014 and December 31, 2013 were $543.0 million and $475.0 million, respectively. |
LINES_OF_CREDIT
LINES OF CREDIT | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Line of Credit Facility [Abstract] | ' | |||||||||||||
LINES OF CREDIT | ' | |||||||||||||
LINES OF CREDIT: | ||||||||||||||
Credit facilities and available liquidity as of September 30, 2014 were as follows (in thousands): | ||||||||||||||
Total Facility | Usage | Available Liquidity | Expiration Date | |||||||||||
Commercial Paper Program/ Revolving Credit Facility | $ | 200,000 | $ | 59,300 | $ | 140,700 | May-18 | |||||||
Uncommitted Bank Lines | 10,000 | — | 10,000 | Various | ||||||||||
Total | $ | 210,000 | $ | 59,300 | $ | 150,700 | ||||||||
The SJG revolving credit facility is provided by a syndicate of banks and contains one financial covenant limiting the ratio of indebtedness to total capitalization (as defined in the credit agreement) to not more than 0.65 to 1 measured at the end of each fiscal quarter. SJG was in compliance with this covenant as of September 30, 2014. | ||||||||||||||
SJG manages a commercial paper program under which SJG may issue short-term, unsecured promissory notes to qualified investors up to a maximum aggregate amount outstanding at any time of $200.0 million. The notes have fixed maturities which vary by note, but may not exceed 270 days from the date of issue. Proceeds from the notes are used for general corporate purposes. SJG uses the commercial paper program in tandem with the $200.0 million revolving credit facility and does not expect the principal amount of borrowings outstanding under the commercial paper program and the credit facility at any time to exceed an aggregate of $200.0 million. | ||||||||||||||
Average borrowings outstanding under these credit facilities during the nine months ended September 30, 2014 and 2013 were $40.9 million and $90.5 million, respectively. The maximum amount outstanding under these credit facilities during the nine months ended September 30, 2014 and 2013 were $70.1 million and $119.9 million, respectively. | ||||||||||||||
Based upon the existing credit facilities and a regular dialogue with our banks, we believe that there will continue to be sufficient credit available to meet our business’ future liquidity needs. Borrowings under these credit facilities are at market rates. The weighted average interest rate on these borrowings, which changes daily, was 0.26% and 0.34% at September 30, 2014 and 2013, respectively. |
PENSION_AND_OTHER_POSTRETIREME
PENSION AND OTHER POSTRETIREMENT BENEFITS | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
PENSION AND OTHER POSTRETIREMENT BENEFITS | ' | |||||||||||||||
PENSION AND OTHER POSTRETIREMENT BENEFITS: | ||||||||||||||||
For the three and nine months ended September 30, 2014 and 2013, net periodic benefit cost related to the employee and officer pension and other postretirement benefit plans consisted of the following components (in thousands): | ||||||||||||||||
Pension Benefits | Pension Benefits | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Service Cost | $ | 536 | $ | 1,040 | $ | 2,468 | $ | 3,120 | ||||||||
Interest Cost | 1,819 | 1,811 | 5,873 | 5,434 | ||||||||||||
Expected Return on Plan Assets | (2,233 | ) | (2,286 | ) | (7,143 | ) | (6,859 | ) | ||||||||
Amortizations: | ||||||||||||||||
Prior Service Cost | 30 | 48 | 96 | 144 | ||||||||||||
Actuarial Loss | 957 | 1,729 | 3,101 | 5,185 | ||||||||||||
Net Periodic Benefit Cost | 1,109 | 2,342 | 4,395 | 7,024 | ||||||||||||
Capitalized Benefit Costs | (577 | ) | (1,218 | ) | (2,285 | ) | (3,653 | ) | ||||||||
Total Net Periodic Benefit Expense | $ | 532 | $ | 1,124 | $ | 2,110 | $ | 3,371 | ||||||||
Other Postretirement Benefits | Other Postretirement Benefits | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Service Cost | $ | 28 | $ | 212 | $ | 372 | $ | 637 | ||||||||
Interest Cost | 171 | 509 | 1,191 | 1,526 | ||||||||||||
Expected Return on Plan Assets | (202 | ) | (443 | ) | (1,148 | ) | (1,329 | ) | ||||||||
Amortizations: | ||||||||||||||||
Prior Service Cost (Credits) | 11 | (53 | ) | 63 | (159 | ) | ||||||||||
Actuarial Loss | 73 | 324 | 407 | 972 | ||||||||||||
Net Periodic Benefit Cost | 81 | 549 | 885 | 1,647 | ||||||||||||
Capitalized Benefit Costs | (42 | ) | (285 | ) | (460 | ) | (856 | ) | ||||||||
Total Net Periodic Benefit Expense | $ | 39 | $ | 264 | $ | 425 | $ | 791 | ||||||||
Capitalized benefit costs reflected in the table above relate to our construction program. | ||||||||||||||||
SJG contributed $9.1 million to the pension plans in January 2013. No contributions have been made or are expected to be made to the pension plans during 2014. Payments related to the unfunded Supplemental Executive Retirement Plan (SERP) are expected to approximate $1.2 million in 2014. We also have a regulatory obligation to contribute approximately $3.6 million annually to the other postretirement benefit plans’ trusts, less direct costs incurred. | ||||||||||||||||
See Note 11 to the Financial Statements in Item 8 of SJG’s Form 10-K as of December 31, 2013 for additional information related to SJG’s pension and other postretirement benefits. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES: | |
STANDBY LETTER OF CREDIT - SJG provided a $25.2 million letter of credit under a separate facility outside of its revolving credit facility to support variable-rate demand bonds issued through the New Jersey Economic Development Authority (NJEDA) to finance the expansion of SJG’s natural gas distribution system. | |
ENVIRONMENTAL REMEDIATION COSTS - SJG incurred and recorded costs for environmental cleanup of 12 sites where SJG or its predecessors operated gas manufacturing plants. SJG stopped manufacturing gas in the 1950s. There have been no significant changes to the status of SJG’s environmental remediation efforts since December 31, 2013, as described in Note 12 to the Financial Statements in Item 8 of SJG’s Form 10-K as of December 31, 2013. | |
GAS SUPPLY RELATED CONTRACTS - In the normal course of conducting business, we have entered into long-term contracts for natural gas supplies, firm transportation and gas storage service. The earliest date at which any of the primary terms of these contracts expire is March 2015. The transportation and storage agreements entered into between us and each of our interstate pipeline service providers were done so in accordance with their respective FERC-approved tariff. Our cumulative obligation for gas supply related demand charges and reservation fees paid for these services averages approximately $3.9 million per month and is recovered on a current basis through the BGSS. | |
PENDING LITIGATION - We are subject to claims arising in the ordinary course of business and other legal proceedings. We accrue liabilities related to these claims when we can reasonably estimate the amount or range of amounts of probable settlement costs or other charges for these claims. The Company has accrued approximately $0.5 million related to all claims in the aggregate as of both September 30, 2014 and December 31, 2013. Management does not believe that it is reasonably possible that there will be a material change in the Company's estimated liability in the near term and does not currently anticipate the disposition of any known claims that would have a material effect on the Company's financial position, results of operations or cash flows. | |
COLLECTIVE BARGAINING AGREEMENTS - Unionized personnel represent approximately 60% of our workforce at September 30, 2014. The Company has collective bargaining agreements with two unions who represent these employees: the International Brotherhood of Electrical Workers (IBEW) operates under a collective bargaining agreement that runs through February 2017; and the International Association of Machinists and Aerospace Workers (IAM) operates under a collective bargaining agreement that was renegotiated this year and expires in August 2017. |
FAIR_VALUE_OF_FINANCIAL_ASSETS
FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES | ' | |||||||||||||||
FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES: | ||||||||||||||||
GAAP establishes a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques. The levels of the hierarchy are described below: | ||||||||||||||||
• | Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities. | |||||||||||||||
• | Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. | |||||||||||||||
• | Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. | |||||||||||||||
Assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of financial assets and financial liabilities and their placement within the fair value hierarchy. | ||||||||||||||||
For financial assets and financial liabilities measured at fair value on a recurring basis, information about the fair value measurements for each major category is as follows (in thousands): | ||||||||||||||||
As of September 30, 2014 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | ||||||||||||||||
Available-for-Sale Securities (A) | $ | 8,990 | $ | 8,990 | $ | — | $ | — | ||||||||
Derivatives – Energy Related Assets (B) | 407 | 405 | 2 | — | ||||||||||||
$ | 9,397 | $ | 9,395 | $ | 2 | $ | — | |||||||||
Liabilities | ||||||||||||||||
Derivatives – Energy Related Liabilities (B) | $ | 3,268 | $ | 1,287 | $ | 1,981 | $ | — | ||||||||
Derivatives – Other (C) | 5,778 | — | 5,778 | — | ||||||||||||
$ | 9,046 | $ | 1,287 | $ | 7,759 | $ | — | |||||||||
As of December 31, 2013 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | ||||||||||||||||
Available-for-Sale Securities (A) | $ | 8,696 | $ | 8,696 | $ | — | $ | — | ||||||||
Derivatives - Energy Related Assets (B) | 1,500 | 1,409 | 91 | — | ||||||||||||
$ | 10,196 | $ | 10,105 | $ | 91 | $ | — | |||||||||
Liabilities | ||||||||||||||||
Derivatives - Energy Related Liabilities (B) | $ | 759 | $ | 155 | $ | 604 | $ | — | ||||||||
Derivatives - Other (C) | 3,735 | — | 3,735 | — | ||||||||||||
$ | 4,494 | $ | 155 | $ | 4,339 | $ | — | |||||||||
(A) Available-for-Sale Securities include securities that are traded in active markets. 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 to ensure the prices are observable which includes consideration of actual transaction volumes, market delivery points, bid-ask spreads and contract duration. | ||||||||||||||||
(C) Derivatives – Other, include interest rate swaps that 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. | ||||||||||||||||
DERIVATIVE_INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS | ' | ||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS: | |||||||||||||||||||||||||
SJG is involved in buying, selling, transporting and storing natural gas and is subject to market risk on expected future purchases and sales due to commodity price fluctuations. The Company, through its affiliate South Jersey Resources Group (SJRG) and another counterparty, uses a variety of derivative instruments to limit this exposure to market risk in accordance with strict corporate guidelines. These derivative instruments include forward contracts, futures contracts, swap agreements and options contracts. As of September 30, 2014, SJG had outstanding derivative contracts intended to limit the exposure to market risk on 8.6 million decatherms (MMdts) of expected future purchases of natural gas and 0.3 MMdts of expected future sales of natural gas. In addition to these derivative contracts, SJG had basis and index related purchase and sales contracts totaling 3.9 MMdts. These contracts, which do not qualify for the normal purchase and sale exemption and 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 balance sheets. The costs or benefits of these short-term contracts are recoverable through SJG’s BGSS clause, subject to BPU approval. As a result, the net unrealized pre-tax gains and losses for these energy-related commodity contracts are included with realized gains and losses in Regulatory Assets or Regulatory Liabilities on the condensed balance sheets. As of September 30, 2014 and December 31, 2013, SJG had $2.5 million of unrealized losses and $0.7 million of unrealized gains, respectively, included in its BGSS related to open financial contracts. | |||||||||||||||||||||||||
The Company has also entered into interest rate derivatives to hedge exposure to increasing interest rates and the impact of those rates on cash flows of variable-rate debt. These interest rate derivatives, which have not been designated as hedging instruments under GAAP, are measured at fair value and recorded in Derivatives-Other on the condensed balance sheets. The fair value represents the amount SJG would have to pay the counterparty to terminate these contracts as of those dates. There have been no significant changes to the Company’s active interest rate swaps since December 31, 2013, which are described in Note 1 to the Financial Statements in Item 8 of SJG’s Annual Report on Form 10-K as of December 31, 2013. Subject to BPU approval, the market value upon termination of these interest rate derivatives can be recovered in rates and, therefore, these unrealized losses have been included in Regulatory Assets on the condensed balance sheets. | |||||||||||||||||||||||||
We previously used derivative transactions known as “Treasury Locks” to hedge against the impact on our cash flows of possible interest rate increases on debt issued in September 2005. The initial $1.4 million cost of the Treasury Locks has been included in Accumulated Other Comprehensive Loss and is being amortized over the 30-year life of the associated debt issue. As of both September 30, 2014 and December 31, 2013, the unamortized balance was approximately $1.0 million . | |||||||||||||||||||||||||
The fair values of all derivative instruments, as reflected in the condensed balance sheets as of September 30, 2014 and December 31, 2013, are as follows (in thousands): | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments under GAAP | September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||||
Energy related commodity contracts: | |||||||||||||||||||||||||
Derivatives – Energy Related – Current | $ | 360 | $ | 3,069 | $ | 1,222 | $ | 711 | |||||||||||||||||
Derivatives – Energy Related – Non-Current | 47 | 199 | 278 | 48 | |||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||||
Derivatives – Other | — | 5,778 | — | 3,735 | |||||||||||||||||||||
Total derivatives not designated as hedging instruments under GAAP | 407 | 9,046 | 1,500 | 4,494 | |||||||||||||||||||||
Total Derivatives | $ | 407 | $ | 9,046 | $ | 1,500 | $ | 4,494 | |||||||||||||||||
For derivative instruments disclosed in the table above, information as to the presentation on the condensed balance sheets is as follows (in thousands): | |||||||||||||||||||||||||
As of September 30, 2014: | |||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Derivatives - Energy Related Assets | $ | 407 | $ | — | $ | 407 | $ | (405 | ) | (A) | $ | — | $ | 2 | |||||||||||
Derivatives - Energy Related Liabilities | (3,268 | ) | — | (3,268 | ) | 405 | (B) | 882 | (1,981 | ) | |||||||||||||||
Derivatives - Other | (5,778 | ) | — | (5,778 | ) | — | — | (5,778 | ) | ||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Derivatives - Energy Related Assets | $ | 1,500 | $ | — | $ | 1,500 | $ | (155 | ) | (A) | $ | (498 | ) | $ | 847 | ||||||||||
Derivatives - Energy Related Liabilities | (759 | ) | — | (759 | ) | 155 | (B) | — | (604 | ) | |||||||||||||||
Derivatives - Other | (3,735 | ) | — | (3,735 | ) | — | — | (3,735 | ) | ||||||||||||||||
(A) The balances at September 30, 2014 and December 31, 2013 were related to derivative liabilities which can be net settled against derivative assets. | |||||||||||||||||||||||||
(B) The balances at September 30, 2014 and December 31, 2013 were related to derivative assets which can be net settled against derivative liabilities. | |||||||||||||||||||||||||
The effect of derivative instruments on the condensed statements of income for the three and nine months ended September 30, 2014 and 2013 are as follows (in thousands): | |||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Interest Rate Contracts: | |||||||||||||||||||||||||
Losses reclassified from Accumulated Other Comprehensive Loss into income (a) | $ | (12 | ) | $ | (12 | ) | $ | (36 | ) | $ | (36 | ) | |||||||||||||
(a) Included in Interest Charges | |||||||||||||||||||||||||
Net realized loss of $1.2 million and $0.4 million associated with SJG's energy related financial commodity contracts for the three months ended September 30, 2014 and 2013, and gain of $2.4 million and loss of $0.6 million for the nine month ended September 30, 2014 and 2013, respectively, are not included in the above table. These contracts are part of SJG’s regulated risk management activities that serve to mitigate BGSS costs passed on to its customers. As these transactions are entered into pursuant to, and recoverable through, regulatory riders, any changes in the value of SJG’s energy related financial commodity contracts are deferred in Regulatory Assets or Liabilities, as applicable, and there is no impact to earnings. |
LONGTERM_DEBT
LONG-TERM DEBT | 9 Months Ended |
Sep. 30, 2014 | |
Long-term Debt, Unclassified [Abstract] | ' |
LONG-TERM DEBT | ' |
LONG-TERM DEBT: | |
In January 2014, SJG issued $30.0 million aggregate principal amount of 4.23% Medium Term Notes (MTN's) due January 2030. | |
In June 2014, SJG entered into a $200.0 million multiple-draw term facility offered by a syndicate of banks which expires in June, 2017. SJG can draw under this facility through June, 2016 and this facility bears interest at a floating rate based on LIBOR plus a spread determined by SJG's credit ratings. As of September 30, 2014, SJG had borrowed an aggregate $59.0 million under this facility and the proceeds were used to pay down short-term debt. | |
In July 2014, SJG retired $11.0 million aggregate principal amount of 4.52% MTN's at maturity. In September 2014, SJG retired $10.0 million aggregate principal amount of 5.115% MTN's at maturity. | |
We retire debt when it is cost effective as permitted by the debt agreements. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ' | |||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS: | ||||||||||||||||
The changes in Accumulated Other Comprehensive Loss (AOCL) for the three and nine months ended September 30, 2014 are as follows (in thousands): | ||||||||||||||||
Postretirement Liability Adjustment | Unrealized Gain (Loss) on Derivatives-Other | Unrealized Gain (Loss) on Available-for-Sale Securities | Total | |||||||||||||
Balance at July 1, 2014 (a) | $ | (10,672 | ) | $ | (579 | ) | $ | 613 | $ | (10,638 | ) | |||||
Other comprehensive loss before reclassifications | — | — | (53 | ) | (53 | ) | ||||||||||
Amounts reclassified from AOCL (b) | — | 6 | (560 | ) | (554 | ) | ||||||||||
Net current period other comprehensive income (loss) | — | 6 | (613 | ) | (607 | ) | ||||||||||
Balance at September 30, 2014 (a) | $ | (10,672 | ) | $ | (573 | ) | $ | — | $ | (11,245 | ) | |||||
Postretirement Liability Adjustment | Unrealized Gain (Loss) on Derivatives-Other | Unrealized Gain (Loss) on Available-for-Sale Securities | Total | |||||||||||||
Balance at January 1, 2014 (a) | $ | (10,672 | ) | $ | (594 | ) | $ | 397 | $ | (10,869 | ) | |||||
Other comprehensive income before reclassifications | — | — | 163 | 163 | ||||||||||||
Amounts reclassified from AOCL (b) | — | 21 | (560 | ) | (539 | ) | ||||||||||
Net current period other comprehensive income (loss) | — | 21 | (397 | ) | (376 | ) | ||||||||||
Balance at September 30, 2014 (a) | $ | (10,672 | ) | $ | (573 | ) | $ | — | $ | (11,245 | ) | |||||
(a) Determined using a combined statutory tax rate of 41%. | ||||||||||||||||
(b) See table below. | ||||||||||||||||
The reclassifications out of AOCL during the three and nine months ended September 30, 2014 are as follows (in thousands): | ||||||||||||||||
Components of AOCL | Amounts Reclassified from AOCL (in thousands) | Affected Line Item in the Condensed Statements of Income | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
30-Sep-14 | 30-Sep-14 | |||||||||||||||
Unrealized Gain on Derivatives-Other - Interest Rate Contracts designated as cash flow hedges | $ | 12 | $ | 36 | Interest Charges | |||||||||||
Unrealized Loss on Available-for-Sale Securities | (946 | ) | (946 | ) | Other Income & Expense | |||||||||||
(934 | ) | (910 | ) | Income Before Income Taxes | ||||||||||||
Income Taxes (a) | (380 | ) | (371 | ) | Income Taxes (a) | |||||||||||
Losses from reclassifications for the period net of tax | $ | (554 | ) | $ | (539 | ) | ||||||||||
(a) Determined using a combined statutory tax rate of 41%. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
REVENUE AND THROUGHPUT BASED TAXES | ' |
REVENUE AND THROUGHPUT - BASED TAXES - SJG collects certain revenue-based energy taxes from its customers. Such taxes include New Jersey State Sales Tax and Public Utilities Assessment (PUA). State sales tax is recorded as a liability when billed to customers and is not included in revenue or operating expenses. | |
NEW ACCOUNTING PRONOUNCEMENTS | ' |
NEW ACCOUNTING PRONOUNCEMENTS — Other than as described below, no new accounting pronouncement issued or effective during 2014 or 2013 had, or is expected to have, a material impact on the condensed financial statements. | |
In July 2013, the FASB issued Accounting Standard Update (ASU) 2013-11, Balance Sheet Presentation of an Unrecognized Income Tax Benefit for a Net Operating Loss or Tax Credit Carryforward. This ASU provides that a liability related to an unrecognized tax benefit should be offset against a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance did not have an impact on the Company's financial statement results. | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), This ASU supersedes the revenue recognition requirements in FASB ASC 605, Revenue Recognition, and in most industry-specific topics. The new guidance identifies how and when entities should recognize revenue. The new rules establish a core principle requiring the recognition of revenue to depict the transfer of promised goods or service to customers in an amount reflecting the consideration to which the entity expects to be entitled in exchange for such goods or services. The new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Management is currently determining the impact that adoption of this guidance will have on the Company's financial statement results. | |
In August 2014, the FASB issued ASU 2014-15, "Presentation of Financial Statements - Going Concern (Subtopic 205-40); Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern," The new guidance requires management of a company to evaluate whether there is substantial doubt about the company's ability to continue as a going concern. This ASU is effective for the annual reporting period ending after December 15, 2016, and for interim and annual reporting periods thereafter, with early adoption permitted. Management does not expect this standard to have an impact on the Company's financial statements upon adoption. | |
FAIR VALUE | ' |
(A) Available-for-Sale Securities include securities that are traded in active markets. 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 to ensure the prices are observable which includes consideration of actual transaction volumes, market delivery points, bid-ask spreads and contract duration. | |
(C) Derivatives – Other, include interest rate swaps that 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. |
STOCKBASED_COMPENSATION_PLANS_
STOCK-BASED COMPENSATION PLANS (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Summary of the SJI nonvested restricted stock awards pertaining to SJG outstanding at and the assumptions used to estimate the fair value of the awards | ' | |||||||||||||
The following table summarizes the SJI nonvested restricted stock awards pertaining to SJG outstanding at September 30, 2014, and the assumptions used to estimate the fair value of the awards: | ||||||||||||||
Grant Date | Shares | Fair Value | Expected | Risk-Free | ||||||||||
Outstanding | Per Share | Volatility | Interest Rate | |||||||||||
Jan. 2012 - TSR | 3,533 | $ | 51.23 | 22.5 | % | 0.43 | % | |||||||
Jan. 2012 - EPS | 3,533 | $ | 56.93 | n/a | n/a | |||||||||
Jan. 2013 - TSR | 4,001 | $ | 44.38 | 21.1 | % | 0.4 | % | |||||||
Jan. 2013 - EPS | 4,001 | $ | 51.18 | n/a | n/a | |||||||||
Jan. 2014 - TSR | 5,197 | $ | 44.32 | 20 | % | 0.8 | % | |||||||
Jan. 2014 - EPS | 5,197 | $ | 54.44 | n/a | n/a | |||||||||
Summary of the information regarding restricted stock award activity excluding accrued dividend equivalents | ' | |||||||||||||
The following table summarizes information regarding restricted stock award activity during the nine months ended September 30, 2014, excluding accrued dividend equivalents: | ||||||||||||||
Shares | Weighted | |||||||||||||
Average | ||||||||||||||
Grant Date | ||||||||||||||
Fair Value | ||||||||||||||
Nonvested Shares Outstanding, January 1, 2014 | 15,068 | $ | 50.73 | |||||||||||
Granted | 10,394 | $ | 49.38 | |||||||||||
Nonvested Shares Outstanding, September 30, 2014 | 25,462 | $ | 50.18 | |||||||||||
REGULATORY_ASSETS_AND_LIABILIT1
REGULATORY ASSETS AND LIABILITIES (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Regulatory Assets and Liabilities Disclosure [Abstract] | ' | |||||||
Schedule of Regulatory Assets | ' | |||||||
Regulatory Assets consisted of the following items (in thousands): | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Environmental Remediation Costs: | ||||||||
Expended - Net | $ | 28,520 | $ | 29,945 | ||||
Liability for Future Expenditures | 119,864 | 119,492 | ||||||
Deferred Asset Retirement Obligation Costs | 31,598 | 31,142 | ||||||
Deferred Pension and Other Postretirement Benefit Costs | 59,284 | 59,284 | ||||||
Deferred Gas Costs - Net | 47,008 | — | ||||||
Conservation Incentive Program Receivable | — | 10,526 | ||||||
Societal Benefit Costs Receivable | 1,974 | 10,408 | ||||||
Premium for Early Retirement of Debt | — | 955 | ||||||
Deferred Interest Rate Contracts (Note 11) | 5,778 | 3,735 | ||||||
Energy Efficiency Tracker | 15,906 | 10,420 | ||||||
Pipeline Supplier Service Charges | 5,857 | 7,106 | ||||||
Pipeline Integrity Cost | 3,342 | 2,902 | ||||||
AFUDC - Equity Related Deferrals | 10,657 | 7,810 | ||||||
Other Regulatory Assets | 2,455 | 2,356 | ||||||
Total Regulatory Assets | $ | 332,243 | $ | 296,081 | ||||
Schedule of Regulatory Liabilities | ' | |||||||
Regulatory Liabilities consisted of the following items (in thousands): | ||||||||
September 30, 2014 | December 31, 2013 | |||||||
Excess Plant Removal Costs | $ | 37,405 | $ | 40,029 | ||||
Deferred Revenues-Net | — | 19,067 | ||||||
Conservation Incentive Program Payable | 7,899 | — | ||||||
Other Regulatory Liabilities | 800 | 1,853 | ||||||
Total Regulatory Liabilities | $ | 46,104 | $ | 60,949 | ||||
RELATEDPARTY_TRANSACTIONS_Tabl
RELATED-PARTY TRANSACTIONS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||||
Summary of related party transactions | ' | |||||||||||||||
A summary of related party transactions, excluding pass-through items, included in Operating Revenues were as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Operating Revenues/Affiliates: | ||||||||||||||||
SJRG | $ | 169 | $ | 344 | $ | 552 | $ | 1,194 | ||||||||
Marina | 278 | 335 | 914 | 973 | ||||||||||||
Other | — | — | — | 1 | ||||||||||||
Total Operating Revenue/Affiliates | $ | 447 | $ | 679 | $ | 1,466 | $ | 2,168 | ||||||||
Related-party transactions, excluding pass-through items, included in Operating Expenses were as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Costs of Sales/Affiliates (Excluding depreciation): | ||||||||||||||||
SJRG | $ | 1,686 | $ | 5,436 | $ | 8,612 | $ | 11,105 | ||||||||
Energy-Related Derivative (Gains) / Losses * | ||||||||||||||||
SJRG | $ | (92 | ) | $ | 389 | $ | (1,612 | ) | $ | 568 | ||||||
* Contracts used to hedge natural gas purchases. Included in Cost of Sales on the Condensed Statement of Income. | ||||||||||||||||
Operations Expense/Affiliates | ||||||||||||||||
SJI | $ | 2,901 | $ | 2,737 | $ | 10,079 | $ | 8,613 | ||||||||
SJIS** | — | 1,330 | — | 4,264 | ||||||||||||
Millennium | 687 | 665 | 1,982 | 2,014 | ||||||||||||
Other | (111 | ) | (103 | ) | (327 | ) | (336 | ) | ||||||||
Total Operations Expense/Affiliates | $ | 3,477 | $ | 4,629 | $ | 11,734 | $ | 14,555 | ||||||||
** SJIS was dissolved effective January 1, 2014. All services previously provided by SJIS are currently being provided by SJI. |
LINES_OF_CREDIT_Tables
LINES OF CREDIT (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Line of Credit Facility [Abstract] | ' | |||||||||||||
Schedule of lines of credit | ' | |||||||||||||
Credit facilities and available liquidity as of September 30, 2014 were as follows (in thousands): | ||||||||||||||
Total Facility | Usage | Available Liquidity | Expiration Date | |||||||||||
Commercial Paper Program/ Revolving Credit Facility | $ | 200,000 | $ | 59,300 | $ | 140,700 | May-18 | |||||||
Uncommitted Bank Lines | 10,000 | — | 10,000 | Various | ||||||||||
Total | $ | 210,000 | $ | 59,300 | $ | 150,700 | ||||||||
PENSION_AND_OTHER_POSTRETIREME1
PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Schedule of defined benefit plans disclosures | ' | |||||||||||||||
For the three and nine months ended September 30, 2014 and 2013, net periodic benefit cost related to the employee and officer pension and other postretirement benefit plans consisted of the following components (in thousands): | ||||||||||||||||
Pension Benefits | Pension Benefits | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Service Cost | $ | 536 | $ | 1,040 | $ | 2,468 | $ | 3,120 | ||||||||
Interest Cost | 1,819 | 1,811 | 5,873 | 5,434 | ||||||||||||
Expected Return on Plan Assets | (2,233 | ) | (2,286 | ) | (7,143 | ) | (6,859 | ) | ||||||||
Amortizations: | ||||||||||||||||
Prior Service Cost | 30 | 48 | 96 | 144 | ||||||||||||
Actuarial Loss | 957 | 1,729 | 3,101 | 5,185 | ||||||||||||
Net Periodic Benefit Cost | 1,109 | 2,342 | 4,395 | 7,024 | ||||||||||||
Capitalized Benefit Costs | (577 | ) | (1,218 | ) | (2,285 | ) | (3,653 | ) | ||||||||
Total Net Periodic Benefit Expense | $ | 532 | $ | 1,124 | $ | 2,110 | $ | 3,371 | ||||||||
Other Postretirement Benefits | Other Postretirement Benefits | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Service Cost | $ | 28 | $ | 212 | $ | 372 | $ | 637 | ||||||||
Interest Cost | 171 | 509 | 1,191 | 1,526 | ||||||||||||
Expected Return on Plan Assets | (202 | ) | (443 | ) | (1,148 | ) | (1,329 | ) | ||||||||
Amortizations: | ||||||||||||||||
Prior Service Cost (Credits) | 11 | (53 | ) | 63 | (159 | ) | ||||||||||
Actuarial Loss | 73 | 324 | 407 | 972 | ||||||||||||
Net Periodic Benefit Cost | 81 | 549 | 885 | 1,647 | ||||||||||||
Capitalized Benefit Costs | (42 | ) | (285 | ) | (460 | ) | (856 | ) | ||||||||
Total Net Periodic Benefit Expense | $ | 39 | $ | 264 | $ | 425 | $ | 791 | ||||||||
FAIR_VALUE_OF_FINANCIAL_ASSETS1
FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair value of assets and liabilities | ' | |||||||||||||||
For financial assets and financial liabilities measured at fair value on a recurring basis, information about the fair value measurements for each major category is as follows (in thousands): | ||||||||||||||||
As of September 30, 2014 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | ||||||||||||||||
Available-for-Sale Securities (A) | $ | 8,990 | $ | 8,990 | $ | — | $ | — | ||||||||
Derivatives – Energy Related Assets (B) | 407 | 405 | 2 | — | ||||||||||||
$ | 9,397 | $ | 9,395 | $ | 2 | $ | — | |||||||||
Liabilities | ||||||||||||||||
Derivatives – Energy Related Liabilities (B) | $ | 3,268 | $ | 1,287 | $ | 1,981 | $ | — | ||||||||
Derivatives – Other (C) | 5,778 | — | 5,778 | — | ||||||||||||
$ | 9,046 | $ | 1,287 | $ | 7,759 | $ | — | |||||||||
As of December 31, 2013 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | ||||||||||||||||
Available-for-Sale Securities (A) | $ | 8,696 | $ | 8,696 | $ | — | $ | — | ||||||||
Derivatives - Energy Related Assets (B) | 1,500 | 1,409 | 91 | — | ||||||||||||
$ | 10,196 | $ | 10,105 | $ | 91 | $ | — | |||||||||
Liabilities | ||||||||||||||||
Derivatives - Energy Related Liabilities (B) | $ | 759 | $ | 155 | $ | 604 | $ | — | ||||||||
Derivatives - Other (C) | 3,735 | — | 3,735 | — | ||||||||||||
$ | 4,494 | $ | 155 | $ | 4,339 | $ | — | |||||||||
(A) Available-for-Sale Securities include securities that are traded in active markets. 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 to ensure the prices are observable which includes consideration of actual transaction volumes, market delivery points, bid-ask spreads and contract duration. | ||||||||||||||||
(C) Derivatives – Other, include interest rate swaps that 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. |
DERIVATIVE_INSTRUMENTS_Tables
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Fair value of derivative instruments | ' | ||||||||||||||||||||||||
The fair values of all derivative instruments, as reflected in the condensed balance sheets as of September 30, 2014 and December 31, 2013, are as follows (in thousands): | |||||||||||||||||||||||||
Derivatives not designated as hedging instruments under GAAP | September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||||
Energy related commodity contracts: | |||||||||||||||||||||||||
Derivatives – Energy Related – Current | $ | 360 | $ | 3,069 | $ | 1,222 | $ | 711 | |||||||||||||||||
Derivatives – Energy Related – Non-Current | 47 | 199 | 278 | 48 | |||||||||||||||||||||
Interest rate contracts: | |||||||||||||||||||||||||
Derivatives – Other | — | 5,778 | — | 3,735 | |||||||||||||||||||||
Total derivatives not designated as hedging instruments under GAAP | 407 | 9,046 | 1,500 | 4,494 | |||||||||||||||||||||
Total Derivatives | $ | 407 | $ | 9,046 | $ | 1,500 | $ | 4,494 | |||||||||||||||||
Offsetting assets and liabilities | ' | ||||||||||||||||||||||||
For derivative instruments disclosed in the table above, information as to the presentation on the condensed balance sheets is as follows (in thousands): | |||||||||||||||||||||||||
As of September 30, 2014: | |||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Derivatives - Energy Related Assets | $ | 407 | $ | — | $ | 407 | $ | (405 | ) | (A) | $ | — | $ | 2 | |||||||||||
Derivatives - Energy Related Liabilities | (3,268 | ) | — | (3,268 | ) | 405 | (B) | 882 | (1,981 | ) | |||||||||||||||
Derivatives - Other | (5,778 | ) | — | (5,778 | ) | — | — | (5,778 | ) | ||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Derivatives - Energy Related Assets | $ | 1,500 | $ | — | $ | 1,500 | $ | (155 | ) | (A) | $ | (498 | ) | $ | 847 | ||||||||||
Derivatives - Energy Related Liabilities | (759 | ) | — | (759 | ) | 155 | (B) | — | (604 | ) | |||||||||||||||
Derivatives - Other | (3,735 | ) | — | (3,735 | ) | — | — | (3,735 | ) | ||||||||||||||||
(A) The balances at September 30, 2014 and December 31, 2013 were related to derivative liabilities which can be net settled against derivative assets. | |||||||||||||||||||||||||
(B) The balances at September 30, 2014 and December 31, 2013 were related to derivative assets which can be net settled against derivative liabilities. | |||||||||||||||||||||||||
Derivatives in cash flow hedging relationships | ' | ||||||||||||||||||||||||
The effect of derivative instruments on the condensed statements of income for the three and nine months ended September 30, 2014 and 2013 are as follows (in thousands): | |||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Interest Rate Contracts: | |||||||||||||||||||||||||
Losses reclassified from Accumulated Other Comprehensive Loss into income (a) | $ | (12 | ) | $ | (12 | ) | $ | (36 | ) | $ | (36 | ) | |||||||||||||
(a) Included in Interest Charges |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Schedule of changes in accumulated other comprehensive loss (AOCL) | ' | |||||||||||||||
The changes in Accumulated Other Comprehensive Loss (AOCL) for the three and nine months ended September 30, 2014 are as follows (in thousands): | ||||||||||||||||
Postretirement Liability Adjustment | Unrealized Gain (Loss) on Derivatives-Other | Unrealized Gain (Loss) on Available-for-Sale Securities | Total | |||||||||||||
Balance at July 1, 2014 (a) | $ | (10,672 | ) | $ | (579 | ) | $ | 613 | $ | (10,638 | ) | |||||
Other comprehensive loss before reclassifications | — | — | (53 | ) | (53 | ) | ||||||||||
Amounts reclassified from AOCL (b) | — | 6 | (560 | ) | (554 | ) | ||||||||||
Net current period other comprehensive income (loss) | — | 6 | (613 | ) | (607 | ) | ||||||||||
Balance at September 30, 2014 (a) | $ | (10,672 | ) | $ | (573 | ) | $ | — | $ | (11,245 | ) | |||||
Postretirement Liability Adjustment | Unrealized Gain (Loss) on Derivatives-Other | Unrealized Gain (Loss) on Available-for-Sale Securities | Total | |||||||||||||
Balance at January 1, 2014 (a) | $ | (10,672 | ) | $ | (594 | ) | $ | 397 | $ | (10,869 | ) | |||||
Other comprehensive income before reclassifications | — | — | 163 | 163 | ||||||||||||
Amounts reclassified from AOCL (b) | — | 21 | (560 | ) | (539 | ) | ||||||||||
Net current period other comprehensive income (loss) | — | 21 | (397 | ) | (376 | ) | ||||||||||
Balance at September 30, 2014 (a) | $ | (10,672 | ) | $ | (573 | ) | $ | — | $ | (11,245 | ) | |||||
(a) Determined using a combined statutory tax rate of 41%. | ||||||||||||||||
(b) See table below. | ||||||||||||||||
Reclassifications out of AOCL | ' | |||||||||||||||
The reclassifications out of AOCL during the three and nine months ended September 30, 2014 are as follows (in thousands): | ||||||||||||||||
Components of AOCL | Amounts Reclassified from AOCL (in thousands) | Affected Line Item in the Condensed Statements of Income | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
30-Sep-14 | 30-Sep-14 | |||||||||||||||
Unrealized Gain on Derivatives-Other - Interest Rate Contracts designated as cash flow hedges | $ | 12 | $ | 36 | Interest Charges | |||||||||||
Unrealized Loss on Available-for-Sale Securities | (946 | ) | (946 | ) | Other Income & Expense | |||||||||||
(934 | ) | (910 | ) | Income Before Income Taxes | ||||||||||||
Income Taxes (a) | (380 | ) | (371 | ) | Income Taxes (a) | |||||||||||
Losses from reclassifications for the period net of tax | $ | (554 | ) | $ | (539 | ) | ||||||||||
(a) Determined using a combined statutory tax rate of 41%. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Amount of Transitional Energy Facility Assessment and Public Utilities Assessment included in revenues and cost of sales | $0.20 | $0.10 | $0.80 | $0.60 |
STOCKBASED_COMPENSATION_PLANS_1
STOCK-BASED COMPENSATION PLANS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period of shares | ' | ' | ' | ' | ' | ' | '3 years | '3 years |
Shares Outstanding (in shares) | 25,462 | ' | ' | ' | ' | ' | 25,462 | ' |
Fair Value Per Share (in dollars per share) | $50.18 | ' | ' | ' | ' | ' | $50.18 | ' |
Cost of Restricted Stock Awards | $0.10 | $0.10 | $0.10 | $0.10 | $0.10 | $0.10 | ' | ' |
Unrecognized compensation cost of awards granted under the plan | 0.6 | ' | ' | ' | ' | ' | 0.6 | ' |
Weighted average period over which unrecognized compensation cost is to be recognized (in years) | ' | ' | ' | ' | ' | ' | '1 year 10 months 24 days | ' |
Shares [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Nonvested Shares Outstanding, beginning balance (in shares) | ' | ' | 15,068 | ' | ' | ' | 15,068 | ' |
Granted (in shares) | ' | ' | ' | ' | ' | ' | 10,394 | ' |
Nonvested Shares Outstanding, ending balance (in shares) | 25,462 | ' | ' | ' | ' | ' | 25,462 | ' |
Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value, Nonvested Shares Outstanding, beginning balance (in dollars per share) | ' | ' | $50.73 | ' | ' | ' | $50.73 | ' |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | ' | ' | ' | ' | ' | ' | $49.38 | ' |
Weighted Average Grant Date Fair Value, Nonvested Shares Outstanding, ending balance (in dollars per share) | $50.18 | ' | ' | ' | ' | ' | $50.18 | ' |
Number of shares awarded during the period | ' | ' | ' | ' | ' | ' | 0 | 12,901 |
Market value of shares awarded | ' | ' | ' | ' | ' | ' | ' | 0.6 |
Cash payments to SJI relating to stock awards | ' | ' | ' | ' | ' | ' | $0.40 | $0.40 |
Grant Date January 2012 - TSR | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Shares Outstanding (in shares) | 3,533 | ' | ' | ' | ' | ' | 3,533 | ' |
Fair Value Per Share (in dollars per share) | $51.23 | ' | ' | ' | ' | ' | $51.23 | ' |
Expected Volatility | ' | ' | ' | ' | ' | ' | 22.50% | ' |
Risk-Free Interest Rate | ' | ' | ' | ' | ' | ' | 0.43% | ' |
Shares [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Nonvested Shares Outstanding, ending balance (in shares) | 3,533 | ' | ' | ' | ' | ' | 3,533 | ' |
Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value, Nonvested Shares Outstanding, ending balance (in dollars per share) | $51.23 | ' | ' | ' | ' | ' | $51.23 | ' |
Grant Date January 2012 - EPS | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Shares Outstanding (in shares) | 3,533 | ' | ' | ' | ' | ' | 3,533 | ' |
Fair Value Per Share (in dollars per share) | $56.93 | ' | ' | ' | ' | ' | $56.93 | ' |
Shares [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Nonvested Shares Outstanding, ending balance (in shares) | 3,533 | ' | ' | ' | ' | ' | 3,533 | ' |
Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value, Nonvested Shares Outstanding, ending balance (in dollars per share) | $56.93 | ' | ' | ' | ' | ' | $56.93 | ' |
Grant Date January 2013 - TSR | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Shares Outstanding (in shares) | 4,001 | ' | ' | ' | ' | ' | 4,001 | ' |
Fair Value Per Share (in dollars per share) | $44.38 | ' | ' | ' | ' | ' | $44.38 | ' |
Expected Volatility | ' | ' | ' | ' | ' | ' | 21.10% | ' |
Risk-Free Interest Rate | ' | ' | ' | ' | ' | ' | 0.40% | ' |
Shares [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Nonvested Shares Outstanding, ending balance (in shares) | 4,001 | ' | ' | ' | ' | ' | 4,001 | ' |
Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value, Nonvested Shares Outstanding, ending balance (in dollars per share) | $44.38 | ' | ' | ' | ' | ' | $44.38 | ' |
Grant Date January 2013 - EPS | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Shares Outstanding (in shares) | 4,001 | ' | ' | ' | ' | ' | 4,001 | ' |
Fair Value Per Share (in dollars per share) | $51.18 | ' | ' | ' | ' | ' | $51.18 | ' |
Shares [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Nonvested Shares Outstanding, ending balance (in shares) | 4,001 | ' | ' | ' | ' | ' | 4,001 | ' |
Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value, Nonvested Shares Outstanding, ending balance (in dollars per share) | $51.18 | ' | ' | ' | ' | ' | $51.18 | ' |
Grant Date January 2014, TSR | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Shares Outstanding (in shares) | 5,197 | ' | ' | ' | ' | ' | 5,197 | ' |
Fair Value Per Share (in dollars per share) | $44.32 | ' | ' | ' | ' | ' | $44.32 | ' |
Expected Volatility | ' | ' | ' | ' | ' | ' | 20.00% | ' |
Risk-Free Interest Rate | ' | ' | ' | ' | ' | ' | 0.80% | ' |
Shares [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Nonvested Shares Outstanding, ending balance (in shares) | 5,197 | ' | ' | ' | ' | ' | 5,197 | ' |
Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value, Nonvested Shares Outstanding, ending balance (in dollars per share) | $44.32 | ' | ' | ' | ' | ' | $44.32 | ' |
Grant Date January 2014, EPS | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Shares Outstanding (in shares) | 5,197 | ' | ' | ' | ' | ' | 5,197 | ' |
Fair Value Per Share (in dollars per share) | $54.44 | ' | ' | ' | ' | ' | $54.44 | ' |
Shares [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Nonvested Shares Outstanding, ending balance (in shares) | 5,197 | ' | ' | ' | ' | ' | 5,197 | ' |
Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value, Nonvested Shares Outstanding, ending balance (in dollars per share) | $54.44 | ' | ' | ' | ' | ' | $54.44 | ' |
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% | ' |
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 | ' | ' | ' | ' | ' | ' | 150.00% | ' |
RATES_AND_REGULATORY_ACTIONS_D
RATES AND REGULATORY ACTIONS (Details) (USD $) | 1 Months Ended | 24 Months Ended | 0 Months Ended | 1 Months Ended | |||||||
In Millions, unless otherwise specified | Aug. 31, 2014 | Dec. 31, 2013 | Oct. 01, 2014 | Oct. 01, 2014 | 31-May-14 | Oct. 01, 2014 | Oct. 01, 2014 | 31-May-14 | Jan. 31, 2014 | Sep. 30, 2014 | Oct. 01, 2014 |
Subsequent Event | Accelerated Infrastructure Replacement Program | Energy Efficiency Tracker | Energy Efficiency Tracker | Societal Benefits Program | Basic Gas Supply Service | Basic Gas Supply Service | Universal Service Fund | Universal Service Fund | |||
Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | ||||||||
Schedule of Capitalization [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public utilities, approved base rate increase | ' | ' | $20 | $7.50 | ' | ' | ' | ' | ' | ' | ' |
Public utilities, rate of return on base rate | ' | ' | 7.10% | ' | ' | ' | ' | ' | ' | ' | ' |
Public utilities, return on common equity | ' | ' | 9.75% | ' | ' | ' | ' | ' | ' | ' | ' |
Costs requested for deferral, storm related | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Public utilities, annual depreciation reduction attributable to petition | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (decrease) in amount of regulatory costs approved | ' | ' | ' | ' | ' | 2.2 | -6.4 | 4.9 | ' | 7.9 | ' |
Amount of regulatory costs approved, percent change in recoveries | ' | ' | ' | ' | 0.19% | ' | ' | ' | ' | ' | ' |
Proposed recovery period of expenditures | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' |
Amount of regulatory costs approved, statewide | ' | ' | ' | ' | ' | ' | ' | ' | ' | 71.8 | ' |
Amount of regulatory costs not yet approved, annual revenue impact | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.6 |
BGSS refunds made to customers | ' | ' | ' | ' | ' | ' | ' | ' | 11.2 | ' | ' |
Investment requested to be recovered through SHARP | $103.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment requested to be recovered through SHARP, term | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
REGULATORY_ASSETS_AND_LIABILIT2
REGULATORY ASSETS AND LIABILITIES (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Regulatory Assets [Line Items] | ' | ' |
Total regulatory assets | $332,243 | $296,081 |
Environmental Remediation Costs: Expended - Net | ' | ' |
Regulatory Assets [Line Items] | ' | ' |
Total regulatory assets | 28,520 | 29,945 |
Environmental Remediation Costs: Liability for Future Expenditures | ' | ' |
Regulatory Assets [Line Items] | ' | ' |
Total regulatory assets | 119,864 | 119,492 |
Deferred Asset Retirement Obligation Costs | ' | ' |
Regulatory Assets [Line Items] | ' | ' |
Total regulatory assets | 31,598 | 31,142 |
Deferred Pension and Other Postretirement Benefit Costs | ' | ' |
Regulatory Assets [Line Items] | ' | ' |
Total regulatory assets | 59,284 | 59,284 |
Deferred Gas Costs - Net | ' | ' |
Regulatory Assets [Line Items] | ' | ' |
Total regulatory assets | 47,008 | 0 |
Conservation Incentive Program Receivable | ' | ' |
Regulatory Assets [Line Items] | ' | ' |
Total regulatory assets | 0 | 10,526 |
Societal Benefit Costs Receivable | ' | ' |
Regulatory Assets [Line Items] | ' | ' |
Total regulatory assets | 1,974 | 10,408 |
Premium for Early Retirement of debt | ' | ' |
Regulatory Assets [Line Items] | ' | ' |
Total regulatory assets | 0 | 955 |
Deferred Interest Rate Contracts | ' | ' |
Regulatory Assets [Line Items] | ' | ' |
Total regulatory assets | 5,778 | 3,735 |
Energy Efficiency Tracker | ' | ' |
Regulatory Assets [Line Items] | ' | ' |
Total regulatory assets | 15,906 | 10,420 |
Pipeline Supplier Service Charges | ' | ' |
Regulatory Assets [Line Items] | ' | ' |
Total regulatory assets | 5,857 | 7,106 |
Pipeline Integrity Cost | ' | ' |
Regulatory Assets [Line Items] | ' | ' |
Total regulatory assets | 3,342 | 2,902 |
AFUDC - Equity Related Deferrals | ' | ' |
Regulatory Assets [Line Items] | ' | ' |
Total regulatory assets | 10,657 | 7,810 |
Other Regulatory Assets | ' | ' |
Regulatory Assets [Line Items] | ' | ' |
Total regulatory assets | $2,455 | $2,356 |
REGULATORY_ASSETS_AND_LIABILIT3
REGULATORY ASSETS AND LIABILITIES REGULATORY ASSETS AND LIABILITIES 2 (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Regulatory Liabilities [Line Items] | ' | ' |
Regulatory Liabilities | $46,104 | $60,949 |
Excess Plant Removal Costs | ' | ' |
Regulatory Liabilities [Line Items] | ' | ' |
Regulatory Liabilities | 37,405 | 40,029 |
Deferred Revenues - Net | ' | ' |
Regulatory Liabilities [Line Items] | ' | ' |
Regulatory Liabilities | 0 | 19,067 |
Conservation Incentive Program Payable | ' | ' |
Regulatory Liabilities [Line Items] | ' | ' |
Regulatory Liabilities | 7,899 | 0 |
Other Regulatory Liabilities | ' | ' |
Regulatory Liabilities [Line Items] | ' | ' |
Regulatory Liabilities | $800 | $1,853 |
RELATEDPARTY_TRANSACTIONS_Deta
RELATED-PARTY TRANSACTIONS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||||
Operating Revenues/Affiliates | $447 | $679 | $1,466 | $2,168 | ||||
Operations Expense/Affiliates | 3,477 | 4,629 | 11,734 | 14,555 | ||||
SJRG | ' | ' | ' | ' | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||||
Operating Revenues/Affiliates | 169 | 344 | 552 | 1,194 | ||||
Costs of Sales/Affiliates (Excluding depreciation) | 1,686 | 5,436 | 8,612 | 11,105 | ||||
Energy-Related Derivative (Gains) / Losses | -92 | [1] | 389 | [1] | -1,612 | [1] | 568 | [1] |
Marina | ' | ' | ' | ' | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||||
Operating Revenues/Affiliates | 278 | 335 | 914 | 973 | ||||
Other | ' | ' | ' | ' | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||||
Operating Revenues/Affiliates | 0 | 0 | 0 | 1 | ||||
Operations Expense/Affiliates | -111 | -103 | -327 | -336 | ||||
SJI | ' | ' | ' | ' | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||||
Operations Expense/Affiliates | 2,901 | 2,737 | 10,079 | 8,613 | ||||
SJIS | ' | ' | ' | ' | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||||
Operations Expense/Affiliates | 0 | [2] | 1,330 | [2] | 0 | [2] | 4,264 | [2] |
Millennium | ' | ' | ' | ' | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ||||
Operations Expense/Affiliates | $687 | $665 | $1,982 | $2,014 | ||||
[1] | Contracts used to hedge natural gas purchases. Included in Cost of Sales on the Condensed Statement of Income. | |||||||
[2] | SJIS was dissolved effective January 1, 2014. All services previously provided by SJIS are currently being provided by SJI. |
FINANCIAL_INSTRUMENTS_Details
FINANCIAL INSTRUMENTS (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Schedule of Financial Instruments [Line Items] | ' | ' |
Restricted investments held in escrow | $100,000 | $100,000 |
Margin accounts with selected counterparties to support risk management activities | 100,000 | 500,000 |
Restricted investments, energy-related contracts | 1,800,000 | 0 |
Estimated fair value of long-term debt | 572,200,000 | 486,500,000 |
Carrying amount of long-term debt | 543,000,000 | 475,000,000 |
Financing Receivable | ' | ' |
Schedule of Financial Instruments [Line Items] | ' | ' |
Long-term receivables, net of unamortized discount | 14,900,000 | 15,000,000 |
Imputed interest | $1,200,000 | $1,200,000 |
LINES_OF_CREDIT_Details
LINES OF CREDIT (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Line of Credit Facility [Line Items] | ' | ' |
Total Facility | $210,000,000 | ' |
Usage | 59,300,000 | ' |
Available Liquidity | 150,700,000 | ' |
Average borrowings outstanding during the period | 40,900,000 | 90,500,000 |
Maximum amounts outstanding during the period | 70,100,000 | 119,900,000 |
Weighted average borrowing cost | 0.26% | 0.34% |
Revolving Credit Facility | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Total Facility | 200,000,000 | ' |
Usage | 59,300,000 | ' |
Available Liquidity | 140,700,000 | ' |
Expiration Date | 'May 2018 | ' |
Uncommitted Bank Lines | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Total Facility | 10,000,000 | ' |
Usage | 0 | ' |
Available Liquidity | 10,000,000 | ' |
Expiration Date | 'Various | ' |
South Jersey Gas Commercial Paper Program | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Total Facility | $200,000,000 | ' |
Fixed maturities of notes, at maximum number of days (in days) | '270 days | ' |
Minimum | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Financial covenant, ratio of indebtedness to consolidated total capitalization minimum | 0.65 | ' |
PENSION_AND_OTHER_POSTRETIREME2
PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Pension Benefits | ' | ' | ' | ' | ' |
Net periodic benefit cost [Abstract] | ' | ' | ' | ' | ' |
Service cost | ' | $536,000 | $1,040,000 | $2,468,000 | $3,120,000 |
Interest cost | ' | 1,819,000 | 1,811,000 | 5,873,000 | 5,434,000 |
Expected return on plan assets | ' | -2,233,000 | -2,286,000 | -7,143,000 | -6,859,000 |
Amortizations [Abstract] | ' | ' | ' | ' | ' |
Prior service cost (credits) | ' | 30,000 | 48,000 | 96,000 | 144,000 |
Actuarial loss | ' | 957,000 | 1,729,000 | 3,101,000 | 5,185,000 |
Net Periodic Benefit Cost | ' | 1,109,000 | 2,342,000 | 4,395,000 | 7,024,000 |
Capitalized benefit costs | ' | -577,000 | -1,218,000 | -2,285,000 | -3,653,000 |
Total net periodic benefit expense | ' | 532,000 | 1,124,000 | 2,110,000 | 3,371,000 |
Contributions | 9,100,000 | ' | ' | 0 | ' |
Other Postretirement Benefits | ' | ' | ' | ' | ' |
Net periodic benefit cost [Abstract] | ' | ' | ' | ' | ' |
Service cost | ' | 28,000 | 212,000 | 372,000 | 637,000 |
Interest cost | ' | 171,000 | 509,000 | 1,191,000 | 1,526,000 |
Expected return on plan assets | ' | -202,000 | -443,000 | -1,148,000 | -1,329,000 |
Amortizations [Abstract] | ' | ' | ' | ' | ' |
Prior service cost (credits) | ' | 11,000 | -53,000 | 63,000 | -159,000 |
Actuarial loss | ' | 73,000 | 324,000 | 407,000 | 972,000 |
Net Periodic Benefit Cost | ' | 81,000 | 549,000 | 885,000 | 1,647,000 |
Capitalized benefit costs | ' | -42,000 | -285,000 | -460,000 | -856,000 |
Total net periodic benefit expense | ' | 39,000 | 264,000 | 425,000 | 791,000 |
Defined benefit plan regulatory obligation to contribute to the plan during the period | ' | ' | ' | 3,600,000 | ' |
Supplemental Employee Retirement Plans, Defined Benefit | ' | ' | ' | ' | ' |
Amortizations [Abstract] | ' | ' | ' | ' | ' |
Estimated future contributions | ' | ' | ' | $1,200,000 | ' |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2013 | |
unions | sites | |
sites | ||
Loss Contingencies [Line Items] | ' | ' |
Letter of credit provided | $210,000,000 | ' |
Number of sites for environmental cleanup | ' | 12 |
Monthly gas supply related demand charges and reservation fees | 3,900,000 | ' |
Estimated litigation liability | 500,000 | 500,000 |
Percentage of personnel represented in collective bargaining agreements | 60.00% | ' |
Number of unions | 2 | ' |
Standby Letter of Credit | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Letter of credit provided | $25,200,000 | ' |
FAIR_VALUE_OF_FINANCIAL_ASSETS2
FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES (Details) (Fair Value, Measurements, Recurring, USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Total [Member] | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Available-for-sale Securities | $8,990 | [1] | $8,696 | [1] |
Derivatives - Energy Related Assets | 407 | [2] | 1,500 | [2] |
Total Assets | 9,397 | 10,196 | ||
Liabilities [Abstract] | ' | ' | ||
Derivatives - Energy Related Liabilities | 3,268 | [2] | 759 | [2] |
Derivatives - Other | 5,778 | [3] | 3,735 | [3] |
Total Liabilities | 9,046 | 4,494 | ||
Level 1 | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Available-for-sale Securities | 8,990 | [1] | 8,696 | [1] |
Derivatives - Energy Related Assets | 405 | [2] | 1,409 | [2] |
Total Assets | 9,395 | 10,105 | ||
Liabilities [Abstract] | ' | ' | ||
Derivatives - Energy Related Liabilities | 1,287 | [2] | 155 | [2] |
Derivatives - Other | 0 | [3] | 0 | [3] |
Total Liabilities | 1,287 | 155 | ||
Level 2 | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Available-for-sale Securities | 0 | [1] | 0 | [1] |
Derivatives - Energy Related Assets | 2 | [2] | 91 | [2] |
Total Assets | 2 | 91 | ||
Liabilities [Abstract] | ' | ' | ||
Derivatives - Energy Related Liabilities | 1,981 | [2] | 604 | [2] |
Derivatives - Other | 5,778 | [3] | 3,735 | [3] |
Total Liabilities | 7,759 | 4,339 | ||
Level 3 | ' | ' | ||
Assets [Abstract] | ' | ' | ||
Available-for-sale Securities | 0 | [1] | 0 | [1] |
Derivatives - Energy Related Assets | 0 | [2] | 0 | [2] |
Total Assets | 0 | 0 | ||
Liabilities [Abstract] | ' | ' | ||
Derivatives - Energy Related Liabilities | 0 | [2] | 0 | [2] |
Derivatives - Other | 0 | [3] | 0 | [3] |
Total Liabilities | $0 | $0 | ||
[1] | Available-for-Sale Securities include securities that are traded in active markets. 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. | |||
[2] | Derivatives b 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 to ensure the prices are observable which includes consideration of actual transaction volumes, market delivery points, bid-ask spreads and contract duration. | |||
[3] | Derivatives b Other, include interest rate swaps that 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. |
DERIVATIVE_INSTRUMENTS_Details
DERIVATIVE INSTRUMENTS (Details) (USD $) | 1 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2005 | Sep. 30, 2014 | Dec. 31, 2013 |
Derivative [Line Items] | ' | ' | ' |
Unrealized gains (losses) included in its BGSS related to open financial contracts | ' | ($2.50) | $0.70 |
Initial cost of Treasury Locks | 1.4 | ' | ' |
Amortization period of Treasury Locks (in years) | '30 years | ' | ' |
Unamortized balance of Treasury Locks | ' | $1 | $1 |
Basis and Index Related Purchase and Sales Contracts | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Outstanding derivative contracts notional amount (MMdts) | ' | 3.9 | ' |
Natural Gas (in MMdts) | Derivative Transaction Type, Purchase | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Outstanding derivative contracts notional amount (MMdts) | ' | 8.6 | ' |
Natural Gas (in MMdts) | Derivative Transaction Type, Sale | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Outstanding derivative contracts notional amount (MMdts) | ' | 0.3 | ' |
DERIVATIVE_INSTRUMENTS_2_Detai
DERIVATIVE INSTRUMENTS 2 (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value Derivative Assets | $407 | $1,500 |
Fair value Derivative Liabilities | 9,046 | 4,494 |
Not Designated as Hedging Instrument | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value Derivative Assets | 407 | 1,500 |
Fair value Derivative Liabilities | 9,046 | 4,494 |
Commodity Contract | Not Designated as Hedging Instrument | Derivatives-Energy Related-Current | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value Derivative Assets | 360 | 1,222 |
Fair value Derivative Liabilities | 3,069 | 711 |
Commodity Contract | Not Designated as Hedging Instrument | Derivatives-Energy Related-NonCurrent | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value Derivative Assets | 47 | 278 |
Fair value Derivative Liabilities | 199 | 48 |
Interest Rate Contract | Not Designated as Hedging Instrument | Derivatives-Other | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Fair value Derivative Assets | 0 | 0 |
Fair value Derivative Liabilities | $5,778 | $3,735 |
DERIVATIVE_INSTRUMENTS_DERIVAT
DERIVATIVE INSTRUMENTS DERIVATIVE INSTRUMENTS 3 (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Commodity Contract | ' | ' | ||
Offsetting Derivative Assets [Abstract] | ' | ' | ||
Gross amounts of recognized assets/liabilities | $407 | $1,500 | ||
Gross amount offset in the balance sheet | 0 | 0 | ||
Net amounts of assets/liabilities in balance sheet | 407 | 1,500 | ||
Gross amounts not offset in the balance sheet, Financial Instruments | -405 | [1] | -155 | [1] |
Gross amounts not offset in the balance sheet, Cash Collateral Posted | 0 | -498 | ||
Net amount | 2 | 847 | ||
Offsetting Derivative Liabilities [Abstract] | ' | ' | ||
Gross amounts of recognized assets/liabilities | -3,268 | -759 | ||
Gross amount offset in the balance sheet | 0 | 0 | ||
Net amounts of assets/liabilities in balance sheet | -3,268 | -759 | ||
Gross amounts not offset in the balance sheet, Financial Instruments | 405 | [2] | 155 | [2] |
Gross amounts not offset in the balance sheet, Cash Collateral Posted | 882 | 0 | ||
Net amount | -1,981 | -604 | ||
Interest Rate Contract | ' | ' | ||
Offsetting Derivative Liabilities [Abstract] | ' | ' | ||
Gross amounts of recognized assets/liabilities | -5,778 | -3,735 | ||
Gross amount offset in the balance sheet | 0 | 0 | ||
Net amounts of assets/liabilities in balance sheet | -5,778 | -3,735 | ||
Gross amounts not offset in the balance sheet, Financial Instruments | 0 | 0 | ||
Gross amounts not offset in the balance sheet, Cash Collateral Posted | 0 | 0 | ||
Net amount | ($5,778) | ($3,735) | ||
[1] | The balances at September 30, 2014 and December 31, 2013 were related to derivative liabilities which can be net settled against derivative assets. | |||
[2] | The balances at September 30, 2014 and December 31, 2013 were related to derivative assets which can be net settled against derivative liabilities. |
DERIVATIVE_INSTRUMENTS_4_Detai
DERIVATIVE INSTRUMENTS 4 (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' | ' | ' | ||||
Losses reclassified from Accumulated Other Comprehensive Loss into income | ($12,000) | [1] | ($12,000) | [1] | ($36,000) | [1] | ($36,000) | [1] |
Net Realized gains (losses), derivative instruments, energy-related contracts | ($1,200,000) | ($400,000) | $2,400,000 | ($600,000) | ||||
[1] | Included in Interest Charges |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Jul. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Jan. 31, 2014 |
Medium-term notes | Medium-term notes | Line of Credit | Line of Credit | Mortgages | |||
Series Due January 2030, 4.23% | |||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Debt issued | ' | ' | ' | ' | ' | ' | $30,000,000 |
Stated interest rate | ' | ' | 5.12% | 4.52% | ' | ' | 4.23% |
Borrowing capacity | 210,000,000 | ' | ' | ' | ' | 200,000,000 | ' |
Carrying amount of long-term debt | 543,000,000 | 475,000,000 | ' | ' | 59,000,000 | ' | ' |
Debt retired | ' | ' | $10,000,000 | $11,000,000 | ' | ' | ' |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' | ||||
Beginning balance | ($10,638) | [1] | ' | ($10,869) | [2] | ' | ||
Other comprehensive income before reclassifications | -53 | ' | 163 | ' | ||||
Amounts reclassified from AOCL | -554 | [3] | ' | -539 | [3] | ' | ||
Other Comprehensive (Loss) Gain - Net of Tax | -607 | [1] | 228 | [1] | -376 | [1] | -55 | [1] |
Ending balance | -11,245 | [1],[2] | ' | -11,245 | [1],[2] | ' | ||
Combined statutory tax rate | 41.00% | 41.00% | 41.00% | 41.00% | ||||
Postretirement Liability Adjustment | ' | ' | ' | ' | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' | ||||
Beginning balance | -10,672 | [1] | ' | -10,672 | [2] | ' | ||
Other comprehensive income before reclassifications | 0 | ' | 0 | ' | ||||
Amounts reclassified from AOCL | 0 | [3] | ' | 0 | [3] | ' | ||
Other Comprehensive (Loss) Gain - Net of Tax | 0 | ' | 0 | ' | ||||
Ending balance | -10,672 | [1],[2] | ' | -10,672 | [1],[2] | ' | ||
Unrealized Gain (Loss) on Derivatives-Other | ' | ' | ' | ' | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' | ||||
Beginning balance | -579 | [1] | ' | -594 | [2] | ' | ||
Other comprehensive income before reclassifications | 0 | ' | 0 | ' | ||||
Amounts reclassified from AOCL | 6 | [3] | ' | 21 | [3] | ' | ||
Other Comprehensive (Loss) Gain - Net of Tax | 6 | ' | 21 | ' | ||||
Ending balance | -573 | [1],[2] | ' | -573 | [1],[2] | ' | ||
Unrealized Gain (Loss) on Available-for-Sale Securities | ' | ' | ' | ' | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' | ||||
Beginning balance | 613 | [1] | ' | 397 | [2] | ' | ||
Other comprehensive income before reclassifications | -53 | ' | 163 | ' | ||||
Amounts reclassified from AOCL | -560 | [3] | ' | -560 | [3] | ' | ||
Other Comprehensive (Loss) Gain - Net of Tax | -613 | ' | -397 | ' | ||||
Ending balance | $0 | [1],[2] | ' | $0 | [1],[2] | ' | ||
[1] | Determined using a combined statutory tax rate of 41% . | |||||||
[2] | Determined using a combined statutory tax rate of 41%. | |||||||
[3] | See table below. |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE LOSS 2 (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Interest Charges | $4,046 | $2,629 | $12,680 | $8,379 | ||
Other Income and Expense | -2,186 | -764 | -4,749 | -3,024 | ||
Income Before Income Taxes | -1,508 | -1,420 | -67,882 | -63,794 | ||
Income Taxes | 534 | 471 | 25,440 | 23,511 | ||
Net Income | -974 | -949 | -42,442 | -40,283 | ||
Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | ' | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Income Before Income Taxes | -934 | ' | -910 | ' | ||
Income Taxes | -380 | [1] | ' | -371 | [1] | ' |
Net Income | -554 | ' | -539 | ' | ||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gain (Loss) on Derivatives-Other | ' | ' | ' | ' | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Interest Charges | 12 | ' | 36 | ' | ||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gain (Loss) on Available-for-Sale Securities | ' | ' | ' | ' | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Other Income and Expense | ($946) | ' | ($946) | ' | ||
[1] | Determined using a combined statutory tax rate of 41%. |