REVENUE | REVENUE: There have been no significant changes to the nature of the Company's revenues or the revenue recognition policies and practices of the Company since December 31, 2021, which are described in Note 19 to the Consolidated Financial Statements in Item 8 of SJI’s and SJG's Annual Report on Form 10-K for the year ended December 31, 2021. Disaggregated revenues from contracts with customers are disclosed below, by operating segment (in thousands). Three Months Ended SJG Utility Operations ETG Utility Operations Wholesale Energy Operations Retail Services Renewables Corporate Services and Intersegment Total Customer Type: Residential $ 36,727 $ 18,481 $ — $ 530 $ — $ — $ 55,738 Commercial & Industrial 29,397 20,789 624,866 — 7,409 (8,030) 674,431 OSS & Capacity Release 4,742 — — — — — 4,742 Other 447 192 — 1,389 — 215 2,243 $ 71,313 $ 39,462 $ 624,866 $ 1,919 $ 7,409 $ (7,815) $ 737,154 Product/Service Line: Gas $ 71,313 $ 39,462 $ 624,866 $ — $ — $ (8,030) $ 727,611 Solar — — — — 1,158 — 1,158 Fuel Cells — — — — 6,180 — 6,180 Other — — — 1,919 71 215 2,205 $ 71,313 $ 39,462 $ 624,866 $ 1,919 $ 7,409 $ (7,815) $ 737,154 Nine Months Ended SJG Utility Operations ETG Utility Operations Wholesale Energy Operations Retail Services Renewables Corporate Services and Intersegment Total Customer Type: Residential $ 306,124 $ 171,765 $ — $ 1,562 $ — $ — $ 479,451 Commercial & Industrial 143,934 106,880 1,599,474 21 18,321 (19,977) 1,848,653 OSS & Capacity Release 14,166 — — — — — 14,166 Other 3,568 683 — 4,048 — — 8,299 $ 467,792 $ 279,328 $ 1,599,474 $ 5,631 $ 18,321 $ (19,977) $ 2,350,569 Product/Service Line: Gas $ 467,792 $ 279,328 $ 1,599,474 $ — $ — $ (19,977) $ 2,326,617 Electric — — — 21 — — 21 Solar — — — — 4,195 — 4,195 Fuel Cells — — — — 13,283 — 13,283 Other — — — 5,610 843 — 6,453 $ 467,792 $ 279,328 $ 1,599,474 $ 5,631 $ 18,321 $ (19,977) $ 2,350,569 Three Months Ended September 30, 2021 SJG Utility Operations ETG Utility Operations Wholesale Energy Operations Retail Services Renewables Corporate Services and Intersegment Total Customer Type: Residential $ 33,075 $ 18,993 $ — $ 488 $ — $ — $ 52,556 Commercial & Industrial 27,538 18,269 406,985 2,846 7,352 (1,333) 461,657 OSS & Capacity Release 2,504 — — — — — 2,504 Other 668 376 — 1,502 — (180) 2,366 $ 63,785 $ 37,638 $ 406,985 $ 4,836 $ 7,352 $ (1,513) $ 519,083 Product/Service Line: Gas $ 63,785 $ 37,638 $ 406,985 $ — $ — $ (1,294) $ 507,114 Electric — — — 2,846 — (39) 2,807 Solar — — — — 1,961 — 1,961 Fuel Cells — — — — 5,063 — 5,063 Landfills — — — — 328 — 328 Other — — — 1,990 — (180) 1,810 $ 63,785 $ 37,638 $ 406,985 $ 4,836 $ 7,352 $ (1,513) $ 519,083 Nine Months Ended SJG Utility Operations ETG Utility Operations Wholesale Energy Operations Retail Services Renewables Corporate Services and Intersegment Total Customer Type: Residential $ 250,697 $ 156,254 $ 1,482 $ — $ — $ 408,433 Commercial & Industrial 119,565 89,464 1,032,181 6,409 17,980 (8,955) 1,256,644 OSS & Capacity Release 7,053 — — — — — 7,053 Other 2,086 748 — 3,469 — (385) 5,918 $ 379,401 $ 246,466 $ 1,032,181 $ 11,360 $ 17,980 $ (9,340) $ 1,678,048 Product/ Service Line: Gas $ 379,401 $ 246,466 $ 1,032,181 $ — $ — $ (8,790) $ 1,649,258 Electric — — — 6,409 — (165) 6,244 Solar — — — — 4,776 — 4,776 Fuel Cells — — — — 12,167 — 12,167 Landfills — — — — 1,037 — 1,037 Other — — — 4,951 — (385) 4,566 $ 379,401 $ 246,466 $ 1,032,181 $ 11,360 $ 17,980 $ (9,340) $ 1,678,048 The SJG balance is a part of the SJG Utility Operations segment, and is before intercompany eliminations with other SJI entities. Revenues on the condensed consolidated statements of (loss)/income that are not with contracts with customers consist of (a) revenues from alternative revenue programs at the SJG and ETG utility operating segments (primarily CIP and WNC), (b) both utility and nonutility realized revenue from derivative contracts at the SJG and ETG Utility Operations, Wholesale Energy Operations and Retail Services operating segments, and (c) unrealized revenues from derivative contracts at the Wholesale Energy Operations and Retail Services operating segments. The Utilities' rate mechanisms that qualify as alternative revenue programs are described in Note 10 to the Consolidated Financial Statements in Item 8 of SJI’s and SJG's Annual Report on Form 10-K for the year ended December 31, 2021. Total revenues arising from alternative revenue programs at SJI were $3.5 million and $0.4 million for the three months ended September 30, 2022 and 2021, respectively, and $(5.6) million and $2.5 million for the nine months ended September 30, 2022 and 2021, respectively. Total revenues arising from alternative revenue programs at SJG were $0.8 million and $1.0 million for the three months ended September 30, 2022 and 2021, respectively, and $(6.0) million and $0.9 million for the nine months ended September 30, 2022 and 2021, respectively. The following table provides information about SJI's and SJG's receivables (excluding SJG receivables from related parties) and unbilled revenue from contracts with customers (in thousands): Accounts Receivable (A) Unbilled Revenue (B) SJI (including SJG and all other consolidated subsidiaries): Beginning balance as of January 1, 2022 $ 343,835 $ 87,357 Ending balance as of September 30, 2022 352,437 22,021 Increase (Decrease) $ 8,602 $ (65,336) Beginning balance as of January 1, 2021 $ 278,723 $ 85,423 Ending balance as of September 30, 2021 272,286 26,783 Increase (Decrease) $ (6,437) $ (58,640) SJG: Beginning balance as of January 1, 2022 $ 125,848 $ 43,236 Ending balance as of September 30, 2022 99,727 11,258 Increase (Decrease) $ (26,121) $ (31,978) Beginning balance as of January 1, 2021 $ 88,657 $ 46,837 Ending balance as of September 30, 2021 83,031 8,288 Increase (Decrease) $ (5,626) $ (38,549) (A) A receivable is SJI's and SJG's right to consideration that is unconditional, as only the passage of time is required before payment is expected from the customer. |