Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 01, 2018 | |
Document Information [Line Items] | ||
Entity Registrant Name | SOUTH JERSEY INDUSTRIES INC | |
Entity Central Index Key | 91,928 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 85,506,217 | |
SJG Utility Operations | ||
Document Information [Line Items] | ||
Entity Registrant Name | SOUTH JERSEY GAS Co | |
Entity Central Index Key | 1,035,216 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 2,339,139 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Operating Revenues (See Note 16): | ||||
Nonutility | $ 217,002 | $ 161,654 | $ 658,906 | $ 554,150 |
Total Operating Revenues | 302,480 | 227,127 | 1,051,755 | 897,330 |
Cost of Sales - (Excluding depreciation and amortization) | ||||
- Utility | 23,238 | 28,217 | 128,536 | 131,927 |
Cost of Goods and Services Sold | 209,874 | 140,598 | 533,440 | 503,715 |
Operations (See Note 1) | 74,413 | 37,377 | 179,464 | 112,865 |
Impairment Charges (See Note 1) | 0 | 43,966 | 99,233 | 44,221 |
Maintenance | 8,602 | 4,615 | 22,276 | 14,268 |
Depreciation | 22,350 | 24,914 | 71,783 | 73,793 |
Energy and Other Taxes | 2,595 | 1,517 | 6,277 | 5,139 |
Total Operating Expenses | 341,072 | 281,204 | 1,041,009 | 885,928 |
Operating Loss (See Note 1) | (38,592) | (54,077) | 10,746 | 11,402 |
Other Income and Expense (See Note 1) | 1,406 | 1,075 | 5,141 | 6,700 |
Interest Charges | (26,534) | (10,567) | (60,067) | (38,291) |
Loss Before Income Taxes | (63,720) | (63,569) | (44,180) | (20,189) |
Income Taxes | 16,649 | 24,765 | 12,206 | 8,439 |
Equity in Earnings of Affiliated Companies | 1,429 | 1,256 | 3,845 | 4,337 |
Loss from Continuing Operations | (45,642) | (37,548) | (28,129) | (7,413) |
Loss from Discontinued Operations - (Net of tax benefit) | (43) | (45) | (135) | (122) |
Net Loss | $ (45,685) | $ (37,593) | $ (28,264) | $ (7,535) |
Basic Earnings Per Common Share: | ||||
Continuing Operations (in dollars per share) | $ (0.53) | $ (0.47) | $ (0.34) | $ (0.09) |
Discontinued Operations (in dollars per share) | 0 | 0 | 0 | 0 |
Basic Earnings Per Common Share (in dollars per share) | $ (0.53) | $ (0.47) | $ (0.34) | $ (0.09) |
Average Shares of Common Stock Outstanding - Basic (in shares) | 85,506 | 79,549 | 83,082 | 79,539 |
Diluted Earnings Per Common Share: | ||||
Continuing Operations (in dollars per share) | $ (0.53) | $ (0.47) | $ (0.34) | $ (0.09) |
Discontinued Operations (in dollars per share) | 0 | 0 | 0 | 0 |
Diluted Earnings Per Common Share (in dollars per share) | $ (0.53) | $ (0.47) | $ (0.34) | $ (0.09) |
Average Shares of Common Stock Outstanding - Diluted (in shares) | 85,506 | 79,549 | 83,082 | 79,539 |
Dividends Declared Per Common Share (in dollars per share) | $ 0.28 | $ 0.27 | $ 0.84 | $ 0.81 |
SJG Utility Operations | ||||
Operating Revenues (See Note 16): | ||||
Total Operating Revenues | $ 56,371 | $ 66,755 | $ 367,631 | $ 346,820 |
Cost of Sales - (Excluding depreciation and amortization) | ||||
Cost of Revenue | 16,079 | 29,499 | 125,266 | 135,567 |
Operations (See Note 1) | 24,536 | 22,599 | 81,174 | 69,229 |
Maintenance | 6,892 | 4,615 | 20,566 | 14,268 |
Depreciation | 14,703 | 13,226 | 43,467 | 38,813 |
Energy and Other Taxes | 988 | 865 | 2,741 | 3,032 |
Total Operating Expenses | 63,198 | 70,804 | 273,214 | 260,909 |
Operating Loss (See Note 1) | (6,827) | (4,049) | 94,417 | 85,911 |
Other Income and Expense (See Note 1) | 2,141 | 1,027 | 5,258 | 3,108 |
Interest Charges | (7,108) | (6,437) | (20,835) | (18,392) |
Loss Before Income Taxes | (11,794) | (9,459) | 78,840 | 70,627 |
Income Taxes | 2,818 | 3,688 | (19,500) | (27,654) |
Net Loss | (8,976) | (5,771) | 59,340 | 42,973 |
Gas | ||||
Operating Revenues (See Note 16): | ||||
Utility | $ 85,478 | $ 65,473 | $ 392,849 | $ 343,180 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Net Loss | $ (45,685) | $ (37,593) | $ (28,264) | $ (7,535) | |
Other Comprehensive Income, Net of Tax: | |||||
Unrealized Gain on Derivatives - Other | 8 | 7 | 25 | 1,529 | |
Other Comprehensive Income - Net of Tax | [1] | 8 | 7 | 25 | 1,529 |
Comprehensive Loss | (45,677) | (37,586) | $ (28,239) | $ (6,006) | |
Combined statutory tax rate | 27.00% | 40.00% | |||
SJG Utility Operations | |||||
Net Loss | (8,976) | (5,771) | $ 59,340 | $ 42,973 | |
Other Comprehensive Income, Net of Tax: | |||||
Unrealized Gain on Derivatives - Other | 8 | 7 | 25 | 21 | |
Other Comprehensive Income - Net of Tax | [2] | 8 | 7 | 25 | 21 |
Comprehensive Loss | $ (8,968) | $ (5,764) | $ 59,365 | $ 42,994 | |
Combined statutory tax rate | 27.00% | 40.00% | |||
[1] | Determined using a combined average statutory tax rate of approximately 27% and 40% in 2018 and 2017, respectively. | ||||
[2] | Determined using a combined average statutory tax rate of approximately 27% and 40% in 2018 and 2017, respectively. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Net Cash Provided by Operating Activities | $ 173,396 | $ 127,081 |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (200,770) | (205,604) |
Cash Paid for Acquisition, Net of Cash Acquired | (1,740,375) | 0 |
Asset Management Agreement, Long-term Contract, Consideration Paid | (11,389) | 0 |
Proceeds from Sale of Property, Plant & Equipment | 51 | 3,547 |
Investment in Long-Term Receivables | (6,167) | (6,670) |
Proceeds from Long-Term Receivables | 7,414 | 7,468 |
Notes Receivable | 0 | 3,000 |
Purchase of Company-Owned Life Insurance | (1,148) | (8,765) |
Investment in Affiliate | (9,524) | (22,434) |
Net Repayment of Notes Receivable - Affiliate | 1,360 | 41 |
Net Cash Used in Investing Activities | (1,960,548) | (229,417) |
Cash Flows from Financing Activities: | ||
Net Borrowings from (Repayments of) Short-Term Credit Facilities | 75,000 | (16,000) |
Proceeds from Issuance of Long-Term Debt | 1,592,500 | 446,000 |
Principal Repayments of Long-Term Debt | (10,000) | (292,400) |
Payments for Issuance of Long-Term Debt | (16,914) | (3,744) |
Net Settlement of Restricted Stock | (776) | (751) |
Dividends on Common Stock | (46,233) | (43,353) |
Proceeds from Sale of Common Stock | 173,750 | 0 |
Payments for the Issuance of Common Stock | (6,554) | 0 |
Net Cash Provided by Financing Activities | 1,760,773 | 89,752 |
Net Decrease in Cash, Cash Equivalents and Restricted Cash | (26,379) | (12,584) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 39,695 | 31,910 |
Cash, Cash Equivalents and Restricted Cash at End of Period | 13,316 | 19,326 |
SJG Utility Operations | ||
Net Cash Provided by Operating Activities | 86,788 | 73,186 |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (168,654) | (183,875) |
Investment in Long-Term Receivables | (6,167) | (6,670) |
Purchase of Company-Owned Life Insurance | 0 | (4,875) |
Proceeds from Long-Term Receivables | 7,414 | 7,468 |
Net Cash Used in Investing Activities | (167,407) | (187,952) |
Cash Flows from Financing Activities: | ||
Net Borrowings from (Repayments of) Short-Term Credit Facilities | 88,200 | (104,300) |
Proceeds from Issuance of Long-Term Debt | 0 | 396,000 |
Principal Repayments of Long-Term Debt | (10,000) | (215,000) |
Payments for Issuance of Long-Term Debt | (21) | (2,030) |
Additional Investment by Shareholder | 0 | 40,000 |
Net Cash Provided by Financing Activities | 78,179 | 114,670 |
Net Decrease in Cash, Cash Equivalents and Restricted Cash | (2,440) | (96) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 4,619 | 1,391 |
Cash, Cash Equivalents and Restricted Cash at End of Period | $ 2,179 | $ 1,295 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment: | ||
Utility Plant, at original cost | $ 4,200,565 | $ 2,652,244 |
Accumulated Depreciation | (781,824) | (498,161) |
Nonutility Property and Equipment, at cost | 161,250 | 741,027 |
Accumulated Depreciation | (49,888) | (194,913) |
Property, Plant and Equipment - Net | 3,530,103 | 2,700,197 |
Investments: | ||
Available-for-Sale Securities | 36 | 36 |
Restricted Investments | 10,002 | 31,876 |
Investment in Affiliates | 74,811 | 62,292 |
Total Investments | 84,849 | 94,204 |
Current Assets: | ||
Cash and Cash Equivalents | 3,314 | 7,819 |
Accounts Receivable | 220,561 | 202,379 |
Unbilled Revenues | 29,313 | 73,377 |
Provision for Uncollectibles | (20,292) | (13,988) |
Notes Receivable - Affiliate | 3,552 | 4,913 |
Natural Gas in Storage, average cost | 84,373 | 48,513 |
Materials and Supplies, average cost | 4,574 | 4,239 |
Prepaid Taxes | 28,185 | 41,355 |
Derivatives - Energy Related Assets | 27,414 | 42,139 |
Assets Held For Sale | 329,622 | 0 |
Other Prepayments and Current Assets | 26,703 | 28,247 |
Total Current Assets | 737,319 | 438,993 |
Regulatory and Other Noncurrent Assets: | ||
Regulatory Assets | 628,977 | 469,224 |
Derivatives - Energy Related Assets | 8,014 | 5,988 |
Notes Receivable - Affiliate | 13,275 | 13,275 |
Contract Receivables | 27,934 | 28,721 |
Goodwill | 759,826 | 3,578 |
Other (See Note 1) | 124,225 | 110,906 |
Total Regulatory and Other Noncurrent Assets | 1,562,251 | 631,692 |
Total Assets | 5,914,522 | 3,865,086 |
Equity: | ||
Common Stock | 106,883 | 99,436 |
Other Paid-In Capital and Premium on Common Stock | 843,064 | 709,658 |
Treasury Stock (at par) | (287) | (271) |
Accumulated Other Comprehensive Loss | (36,740) | (36,765) |
Retained Earnings | 321,912 | 420,351 |
Total Equity | 1,234,832 | 1,192,409 |
Long-Term Debt | 1,281,000 | 1,122,999 |
Total Capitalization | 2,515,832 | 2,315,408 |
Current Liabilities: | ||
Notes Payable | 421,400 | 346,400 |
Current Portion of Long-Term Debt | 1,482,734 | 63,809 |
Accounts Payable | 383,465 | 284,899 |
Customer Deposits and Credit Balances | 35,109 | 43,398 |
Environmental Remediation Costs | 59,799 | 66,372 |
Taxes Accrued | 3,924 | 2,932 |
Derivatives - Energy Related Liabilities | 23,469 | 46,938 |
Deferred Contract Revenues | 407 | 259 |
Derivatives - Other Current | 339 | 748 |
Dividends Payable | 23,942 | 0 |
Interest Accrued | 12,125 | 9,079 |
Pension Benefits | 2,388 | 2,388 |
Other Current Liabilities | 22,053 | 15,860 |
Total Current Liabilities | 2,471,154 | 883,082 |
Deferred Credits and Other Noncurrent Liabilities: | ||
Deferred Income Taxes - Net | 85,840 | 86,884 |
Pension and Other Postretirement Benefits | 114,765 | 101,544 |
Environmental Remediation Costs | 163,047 | 106,483 |
Asset Retirement Obligations | 44,255 | 59,497 |
Derivatives - Energy Related Liabilities | 3,997 | 6,025 |
Derivatives - Other Noncurrent | 5,125 | 9,622 |
Regulatory Liabilities | 481,512 | 287,105 |
Other | 28,995 | 9,436 |
Total Deferred Credits and Other Noncurrent Liabilities | 927,536 | 666,596 |
Commitments and Contingencies (Note 11) | ||
Total Capitalization and Liabilities | 5,914,522 | 3,865,086 |
SJG Utility Operations | ||
Property, Plant and Equipment: | ||
Utility Plant, at original cost | 2,812,128 | 2,652,244 |
Accumulated Depreciation | (519,924) | (498,161) |
Property, Plant and Equipment - Net | 2,292,204 | 2,154,083 |
Investments: | ||
Restricted Investments | 532 | 2,912 |
Total Investments | 532 | 2,912 |
Current Assets: | ||
Cash and Cash Equivalents | 1,647 | 1,707 |
Accounts Receivable | 72,010 | 78,571 |
Accounts Receivable - Related Parties | 2,235 | 988 |
Unbilled Revenues | 7,995 | 54,980 |
Provision for Uncollectibles | (14,327) | (13,799) |
Natural Gas in Storage, average cost | 19,629 | 14,932 |
Materials and Supplies, average cost | 706 | 825 |
Prepaid Taxes | 25,667 | 38,326 |
Derivatives - Energy Related Assets | 7,951 | 7,327 |
Other Prepayments and Current Assets | 10,498 | 12,670 |
Total Current Assets | 134,011 | 196,527 |
Regulatory and Other Noncurrent Assets: | ||
Regulatory Assets | 494,331 | 469,224 |
Long-Term Receivables | 25,390 | 25,851 |
Derivatives - Energy Related Assets | 2 | 5 |
Other (See Note 1) | 19,914 | 17,372 |
Total Regulatory and Other Noncurrent Assets | 539,637 | 512,452 |
Total Assets | 2,966,384 | 2,865,974 |
Equity: | ||
Common Stock | 5,848 | 5,848 |
Other Paid-In Capital and Premium on Common Stock | 355,744 | 355,744 |
Accumulated Other Comprehensive Loss | (25,972) | (25,997) |
Retained Earnings | 645,177 | 585,838 |
Total Equity | 980,797 | 921,433 |
Long-Term Debt | 573,441 | 758,052 |
Total Capitalization | 1,554,238 | 1,679,485 |
Current Liabilities: | ||
Notes Payable | 140,200 | 52,000 |
Current Portion of Long-Term Debt | 238,909 | 63,809 |
Customer Deposits and Credit Balances | 27,051 | 41,656 |
Accounts Payable - Commodity | 30,365 | 43,341 |
Accounts Payable - Other | 49,654 | 41,365 |
Accounts Payable - Related Parties | 7,090 | 17,029 |
Environmental Remediation Costs | 40,682 | 66,040 |
Taxes Accrued | 1,665 | 1,760 |
Derivatives - Energy Related Liabilities | 2,804 | 9,270 |
Derivatives - Other Current | 291 | 389 |
Interest Accrued | 4,832 | 7,615 |
Pension Benefits | 2,353 | 2,353 |
Other Current Liabilities | 6,066 | 7,027 |
Total Current Liabilities | 551,962 | 353,654 |
Deferred Credits and Other Noncurrent Liabilities: | ||
Deferred Income Taxes - Net | 311,274 | 280,746 |
Pension and Other Postretirement Benefits | 94,305 | 88,871 |
Environmental Remediation Costs | 111,298 | 105,656 |
Asset Retirement Obligations | 43,451 | 58,714 |
Derivatives - Energy Related Liabilities | 68 | 170 |
Derivatives - Other Noncurrent | 4,751 | 6,639 |
Regulatory Liabilities | 290,033 | 287,105 |
Other | 5,004 | 4,934 |
Total Deferred Credits and Other Noncurrent Liabilities | 860,184 | 832,835 |
Total Capitalization and Liabilities | $ 2,966,384 | $ 2,865,974 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: GENERAL - South Jersey Industries, Inc. (SJI or the Company) provides a variety of energy-related products and services primarily through the following wholly-owned subsidiaries: ▪ SJI Utilities, Inc. (SJIU) is a holding company that owns South Jersey Gas Company ("SJG"), and, as of July 1, 2018, Elizabethtown Gas Company ("ETG") and Elkton Gas Company ("ELK") (see "Acquisition" below). * SJG is a regulated natural gas utility which distributes natural gas in the seven southernmost counties of New Jersey. * ETG is a regulated natural gas utility which distributes natural gas in seven counties in northern and central New Jersey. * ELK is a regulated natural gas utility which distributes natural gas in northern Maryland. ▪ South Jersey Energy Company (SJE) acquires and markets natural gas and electricity to retail end users and provides total energy management services to commercial, industrial and residential customers. ▪ South Jersey Resources Group, LLC (SJRG) markets natural gas storage, commodity and transportation assets along with fuel management services on a wholesale basis in the mid-Atlantic, Appalachian and southern states. ▪ South Jersey Exploration, LLC (SJEX) owns oil, gas and mineral rights in the Marcellus Shale region of Pennsylvania. ▪ Marina Energy, LLC (Marina) develops and operates on-site energy-related projects. It currently operates projects in New Jersey, Maryland, Massachusetts and Vermont. The significant wholly-owned subsidiaries of Marina include: • ACB Energy Partners, LLC (ACB) owns and operates a natural gas fueled combined heating, cooling and power facility located in Atlantic City, New Jersey. • AC Landfill Energy, LLC (ACLE), BC Landfill Energy, LLC (BCLE), SC Landfill Energy, LLC (SCLE) and SX Landfill Energy, LLC (SXLE) own and operate landfill gas-to-energy production facilities in Atlantic, Burlington, Salem and Sussex Counties located in New Jersey. • MCS Energy Partners, LLC (MCS), NBS Energy Partners, LLC (NBS) and SBS Energy Partners, LLC (SBS) own and operate solar-generation sites located in New Jersey. These entities were sold in October 2018 (see Note 18). ▪ South Jersey Energy Service Plus, LLC (SJESP) serviced residential and small commercial HVAC systems, installed small commercial HVAC systems, provided plumbing services and serviced appliances under warranty via a subcontractor arrangement as well as on a time and materials basis. On September 1, 2017, SJESP sold certain assets of its residential and small commercial HVAC and plumbing business to a third party. SJESP continues to receive commissions paid on service contracts from the third party and will do so on a going forward basis. ▪ SJI Midstream, LLC (Midstream) invests in infrastructure and other midstream projects, including a current project to build an approximately 118 -mile natural gas pipeline in Pennsylvania and New Jersey. BASIS OF PRESENTATION - SJI's condensed consolidated financial statements include the accounts of SJI, its wholly-owned subsidiaries (including SJG) and subsidiaries in which SJI has a controlling interest. All significant intercompany accounts and transactions have been eliminated in consolidation. Beginning as of the date of their acquisition, July 1, 2018, SJI is reporting on a consolidated basis the combined operations of ETG and ELK, along with its other wholly-owned and controlled subsidiaries. As permitted by the rules and regulations of the Securities and Exchange Commission (SEC), the accompanying unaudited condensed consolidated financial statements of SJI and SJG contain certain condensed financial information and exclude certain footnote disclosures normally included in annual audited consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). These financial statements should be read in conjunction with SJI’s and SJG's Annual Reports on Form 10-K for the year ended December 31, 2017 . In management’s opinion, the unaudited condensed consolidated financial statements of SJI and SJG reflect all normal recurring adjustments needed to fairly present their respective financial positions, operating results and cash flows at the dates and for the periods presented. SJI’s and SJG's businesses are subject to seasonal fluctuations and, accordingly, this interim financial information should not be the basis for estimating the full year’s operating results. Certain reclassifications have been made to SJI's and SJG's prior period unaudited condensed consolidated statements of income to conform to the current period presentation, as follows: • The non-service cost components of net periodic pension and postretirement benefit costs are now included as a reduction to Other Income and Expense, as opposed to being recorded as an Operations Expense, to conform with ASU 2017-07, which is described below under "New Accounting Pronouncements." This caused a reduction to both Operations Expense and Other Income on the unaudited condensed consolidated statements of income for the three and nine months ended September 30, 2017. This also caused a reclassification to SJI's prior period segments disclosure in Note 6 to increase Operating Income within both the Gas Utility Operations and Corporate & Services segments for the three and nine months ended September 30, 2017. • Impairment Charges, which were previously presented as part of Operations Expense, are now presented as a separate line item under Operating Expenses in the unaudited condensed consolidated statements of income. This caused a reduction to Operations Expense for the three and nine months ended September 30, 2017. Certain reclassifications have been made to SJI's prior period segments disclosures to conform to the current period presentation. The activities of SJI Midstream, which were presented in the Corporate & Services segment during the three and nine months ended September 30, 2017, are now separated into the Midstream segment for the same periods in 2018. This caused prior period reclassifications to Interest Charges, Income Taxes and Property Additions in Note 6. Certain reclassifications have been made to SJI's prior period unaudited condensed consolidated balance sheets to conform to the current period presentation. Identifiable Intangible Assets are now recorded in Other Noncurrent Assets as of September 30, 2018, causing a prior period reclassification to the unaudited condensed consolidated balance sheets as of December 31, 2017. ACQUISITION - On July 1, 2018, SJI, through its wholly-owned subsidiary SJIU, acquired the assets of ETG and ELK from Pivotal Utility Holdings, Inc., a subsidiary of Southern Company Gas (collectively, the "Acquisition"), for total consideration of $1.7 billion (see Note 17). In the second quarter of 2018, SJI completed public equity offerings and issued long-term debt to help fund the Acquisition (see Notes 4 and 14, respectively). AGREEMENT TO SELL SOLAR ASSETS - On June 27, 2018, the Company, through its wholly-owned subsidiary, Marina, entered into a series of agreements whereby Marina will sell its portfolio of solar energy assets (the “Transaction”) to a third-party buyer. As part of the Transaction, Marina has agreed to sell its distributed solar energy projects located at 143 sites across New Jersey, Maryland, Massachusetts and Vermont with total capacity of approximately 204 MW and a net book value as of June 30, 2018 of $428.9 million (the “Projects”). Total consideration for the Transaction is approximately $347.9 million in cash. As part of the Transaction, Marina will sell the assets comprising the Projects or, in some cases, 100% of the equity interests of certain special purpose companies wholly-owned by Marina that own the assets comprising certain Projects, including MCS, NBS and SBS. The sale of individual Projects will occur on a rolling basis as the conditions precedent to each closing are satisfied, including obtaining certain regulatory filings and receipt of consents to assignment of project contracts and permits. Depending on the timing of closing with respect to individual Projects, the individual purchase prices for those Projects may be adjusted to account for Project revenues retained by Marina during the period prior to such closings, with a maximum aggregate downward adjustment of approximately $5.4 million . Also in connection with the Transaction, Marina will lease certain of the Projects that have not yet passed the fifth anniversary of their placed-in-service dates for U.S. federal income tax purposes back from the buyer from the date each such project is acquired by the buyer until the later of the first anniversary of the applicable acquisition date and the fifth anniversary of the applicable placed-in-service date of the project. The Company currently expects that all but one of the Projects will satisfy all closing conditions on or before December 31, 2018; the remaining Project is expected to satisfy all closing conditions on or before August 31, 2019. In July 2018, as part of the agreement to sell solar assets, Marina received a cash payment of $62.5 million for the sale of certain solar renewable energy credits ("SRECs"). The Company has recorded all of the assets related to these projects as Assets Held For Sale on the unaudited condensed consolidated balance sheet as of September 30, 2018, where they will remain until closing conditions have been met and the assets are transferred to the buyer. In October 2018, SJI closed on the sale of certain Projects, including MCS, NBS and SBS (see Note 18). IMPAIRMENT OF LONG-LIVED ASSETS - Long-lived assets that are held and used are reviewed for impairment whenever events or changes in circumstances indicate carrying values may not be recoverable. Such reviews are performed in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification (ASC) Topic 360 (ASC 360). An impairment loss is indicated if the total future estimated undiscounted cash flows expected from an asset are less than its carrying value. An impairment charge is measured by the difference between an asset's carrying amount and fair value with the difference recorded within Operating Expenses on the condensed consolidated statements of income. Fair values can be determined by a variety of valuation methods, including third-party appraisals, sales prices of similar assets, and present value techniques. The Transaction described above under "Agreement to Sell Solar Assets" triggered an indicator of impairment in the second quarter 2018 as the purchase price was less than the carrying amount for several of the assets being sold (but not all of them) and, as a result, several assets were considered to be impaired. The Company measured the impairment loss as the difference between the carrying amount of the respective assets and the fair value, which was determined using the purchase price and the expected cash flows from the assets, including potential price reductions resulting from the timing needed to satisfy all required closing conditions. As a result, the Company recorded an impairment charge within the on-site energy production segment of $99.2 million (pre-tax) in Impairment Charges on the unaudited condensed consolidated statements of income during the nine months ended September 30, 2018 , to reduce the carrying amount of several assets to their fair market value. The Company estimated the purchase price with the expectation that all but one of the Projects will satisfy all closing conditions on or before December 31, 2018; the remaining Project is expected to satisfy all closing conditions on or before August 31, 2019. No impairment charges were identified at SJI for the three months ended September 30, 2018. SJI recorded impairment charges of $43.9 million and $44.2 million for the three and nine months ended September 30, 2017 , respectively, primarily due to a decline in the market prices of Maryland SRECs, combined with an increase of operating expenses at the on-site energy production segment. No impairments were identified at SJG for the three and nine months ended September 30, 2018 or 2017, respectively. GAS EXPLORATION AND DEVELOPMENT - SJI capitalizes all costs associated with gas property acquisition, exploration and development activities under the full cost method of accounting. Capitalized costs include costs related to unproved properties, which are not amortized until proved reserves are found or it is determined that the unproved properties are impaired. All costs related to unproved properties are reviewed quarterly to determine if impairment has occurred. No impairment charges were recorded on these properties during the three and nine months ended September 30, 2018 or 2017 . As of September 30, 2018 and December 31, 2017 , $8.6 million and $8.7 million , respectively, related to interests in unproved properties in Pennsylvania, net of amortization, is included with Nonutility Property and Equipment and Other Noncurrent Assets on SJI's condensed consolidated balance sheets. TREASURY STOCK - SJI uses the par value method of accounting for treasury stock. As of September 30, 2018 and December 31, 2017 , SJI held 229,222 and 216,642 shares of treasury stock, respectively. These shares are related to deferred compensation arrangements where the amounts earned are held in the stock of SJI. ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION (AFUDC) - SJI and SJG record AFUDC, which represents the estimated debt and equity costs of capital funds that are necessary to finance the construction of new regulated facilities. While cash is not realized currently, AFUDC increases the regulated revenue requirement and is included in rate base and recovered over the service life of the asset through a higher rate base and higher depreciation. INCOME TAXES - Deferred income taxes are provided for all significant temporary differences between the book and taxable bases of assets and liabilities in accordance with ASC 740 - “Income Taxes.” A valuation allowance is established when it is determined that it is more likely than not that a deferred tax asset will not be realized. On December 22, 2017, the Tax Cuts and Jobs Act ("Tax Reform") was enacted into law, changing various corporate income tax provisions within the Internal Revenue Code. The law became effective January 1, 2018 but was required to be accounted for in the period of enactment, as such SJI adopted the new requirements in the fourth quarter of 2017. SJI and SJG were impacted in several ways as a result of Tax Reform, including provisions related to the permanent reduction in the U.S. federal corporate income tax rate from 35% to 21%, modification of bonus depreciation and changes to the deductibility of certain business-related expenses. The SEC staff issued Staff Accounting Bulletin 118 (SAB 118), which provides guidance on accounting for the tax effects of Tax Reform. SAB 118 provides a measurement period that should not extend beyond one year from the enactment date of Tax Reform for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of Tax Reform for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of Tax Reform is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of Tax Reform. SJI and SJG were able to make reasonable, good faith estimates of certain effects and, therefore, recorded provisional adjustments for the following: the tax rules regarding the appropriate bonus deprecation rate that should be applied to assets placed in service after September 27, 2017, including the information required to compute the applicable depreciable tax basis. Further, Tax Reform is unclear in certain respects and will require interpretations and implementing regulations by the Internal Revenue Service, as well as state tax authorities. Tax Reform could also be subject to potential amendments and technical corrections which could impact the Company’s financial statements. Any required changes to the provisional estimates would result in the recording of regulatory assets or liabilities to the extent such amounts are probable of settlement or recovery through customer rates and a net change to income tax expense for any other amounts. Final adjustments to the provisional amounts are expected to be recorded by the fourth quarter of 2018. The accounting for all other applicable provisions of Tax Reform is considered complete based on the current interpretation. BUSINESS COMBINATION - The Company applies the acquisition method to account for business combinations. The consideration transferred for an acquisition is the fair value of the assets transferred, the liabilities incurred by the acquirer and the equity interests issued by the acquirer. Acquisition related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The excess of the consideration transferred over the fair value of the identifiable net assets acquired is recorded as goodwill (see Note 17). GOODWILL - Goodwill represents future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration paid or transferred over the fair value of identifiable net assets acquired. Goodwill is not amortized, but instead is subject to impairment testing on an annual basis, and between annual tests whenever events or changes in circumstances indicate that the fair value of a reporting unit may be below its carrying amount. No such events have occurred during the three and nine months ended September 30, 2018 . Goodwill on the unaudited condensed consolidated balance sheets of SJI consisted of $759.8 million as of September 30, 2018 as compared to $3.6 million as of December 31, 2017. The increase of $756.2 million was due to consideration transferred in excess of the fair value of the identifiable net assets acquired as a result of the Acquisition (see Note 17). There is no goodwill on the unaudited condensed balance sheets of SJG. ASSET MANAGEMENT AGREEMENT (AMA) - On July 1, 2018, SJRG purchased from a third party an AMA whereby SJRG will manage the pipeline capacity of ETG. Total cash payment was $11.4 million . The AMA expires on March 31, 2022. Under the AMA, SJRG will pay ETG an annual fee of $4.25 million , plus additional profit sharing as defined in the AMA. The amounts received by ETG will be credited to its Basic Gas Supply Service ( BGSS) clause and returned to its ratepayers. The total purchase price was allocated as follows (in thousands): Natural Gas in Storage $ 9,685 Intangible Asset 19,200 Profit Sharing - Other Liabilities (17,546 ) Total Consideration $ 11,339 As of September 30, 2018 the balance of the intangible asset is $17.9 million and is recorded to Other Assets on the unaudited condensed consolidated balance sheets of SJI, with the reduction being due to amortization. As of September 30, 2018, the balance in the liability is $18.2 million and is recorded to Regulatory Liabilities on the unaudited condensed consolidated balance sheets of SJI as of September 30, 2018, with the change resulting from profit sharing earned during the third quarter. NEW ACCOUNTING PRONOUNCEMENTS - Other than as described below, no new accounting pronouncements issued or effective during 2018 or 2017 had, or are expected to have, a material impact on the condensed consolidated financial statements of SJI, or the condensed financial statements of SJG. In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASC Topic 606). This ASU supersedes the revenue recognition requirements in FASB ASC 605, Revenue Recognition , and most industry-specific topics. The core principle under this new standard is for an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount reflecting the consideration to which the entity expects to be entitled in exchange for such goods or services, with a five-step model for recognizing and measuring revenue from contracts with customers. The new standard also requires enhanced disclosure regarding the nature, amount, timing and uncertainty of revenues and the related cash flows arising from contracts with customers. In connection with this new standard, the FASB has issued several amendments to ASU 2014-09, as follows: • In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) . This standard improves the implementation guidance on principal versus agent considerations and whether an entity reports revenue on a gross or net basis. • In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing . This standard clarifies identifying performance obligations and the licensing implementation guidance. • In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients . This standard provides additional guidance on (a) the objective of the collectibility criterion, (b) the presentation of sales tax collected from customers, (c) the measurement date of non-cash consideration received, (d) practical expedients in respect of contract modifications and completed contracts at transition, and (e) disclosure of the effects of the accounting change in the period of adoption. • In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers , which amends certain narrow aspects of the guidance, including the disclosure of remaining performance obligations and prior-period performance obligations, as well as other amendments to the guidance on loan guarantee fees, contract costs, refund liabilities, advertising costs and the clarification of certain examples. The new guidance in ASU 2014-09, as well as all amendments discussed above, was effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. On January 1, 2018, SJI and SJG adopted ASU 2014-09 and all amendments, in accordance with the guidance in ASC 606. SJI and SJG adopted the new guidance using the modified retrospective method applied to those contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with the historic accounting under ASC 605. See Note 16. The methods of recognizing revenue for SJI's and SJG's contracts with customers is the same under ASC 605 and ASC 606, as revenues from contracts that SJI and SJG have with customers are currently recorded as gas or electricity is delivered to the customer, which is consistent with the new guidance under ASC 606. As such, there was no significant impact to revenues for the three and nine months ended September 30, 2018 for SJI or SJG as a result of applying ASC 606, and there was no cumulative catch-up to retained earnings for SJI or SJG under the modified retrospective method for changes in accounting for revenues. Further, there were no significant changes to SJI's or SJG's business processes, systems or internal controls over financial reporting needed to support recognition and disclosure under the new guidance. Some revenue arrangements, such as alternative revenue programs and derivative contracts, are excluded from the scope of ASC 606 and, therefore, will be presented separately from revenues under ASC 606 on SJI and SJG's footnote disclosures (see Note 16). In March 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires lessees to recognize substantially all leases on their balance sheet as a right-of-use asset and corresponding lease liability, including leases currently accounted for as operating leases. The new standard also will result in enhanced quantitative and qualitative disclosures, including significant judgments made by management, to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing leases. The accounting for leases by the lessor remains relatively the same. In connection with this new standard, the FASB has issued the following amendments to ASU 2016-02: • In January 2018, the FASB issued an amendment to clarify the application of the new lease guidance to land easements and provided relief concerning adoption efforts for existing land easements that are not accounted for as leases under current GAAP. • In July 2018, the FASB issued ASU 2018-10 and 2018-11, which included a number of technical corrections and improvements to this standard, including an additional option for transition. The guidance initially required a modified retrospective transition method of adoption, under which lessees and lessors were to recognize and measure leases at the beginning of the earliest period presented. The additional, optional transition method allows an entity to initially apply the requirements of the lease standard at the adoption date, and avoid restating the comparative periods. The new guidance in ASU 2016-02, as well as all amendments discussed above, is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Management has formed an implementation team that has completed the process of inventorying all current contracts, including those of newly acquired ETG and ELK, and has determined the population of leases that will be in scope under the new guidance. Management is currently evaluating the impact that adoption of the guidance on these identified leases will have on SJI's and SJG's financial statements.SJI and SJG plan to elect the optional transition method. The Company does not plan to early adopt the new guidance. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The update simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount. The amendments in this update are effective for annual and any interim impairment tests performed in periods beginning after December 31, 2019. Management is currently determining the impact that adoption of this guidance will have on the financial statements of SJI and SJG. In March 2017, the FASB issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU is designed to improve guidance related to the presentation of defined benefit costs in the income statement. In particular, this ASU requires an employer to report the service cost component in the same line item(s) as other compensation costs and requires the other components of net periodic pension and postretirement benefit costs to be separately presented in the unaudited condensed consolidated statements of income outside of operating income. The standard was effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Adoption of this guidance was applied retrospectively and did not have a material impact on the financial statements of SJI or SJG; however, current and prior period presentation on the condensed consolidated statements of income were modified for SJI and SJG to conform to this guidance, as described under “Basis of Presentation” above. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . This ASU is intended to improve the financial reporting of hedging relationships so that it represents a more faithful portrayal of an entity’s risk management activities (i.e. to help financial statement users understand an entity’s risk exposures and the manner in which hedging strategies are used to manage them), as well as to further simplify the application of the hedge accounting guidance in GAAP. The standard is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods. Management is currently determining the impact that adoption of this guidance will have on the financial statements of SJI and SJG. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income . This ASU allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from Tax Reform. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Reform and will improve the usefulness of information reported to financial statement users. The standard is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. Management is currently determining the impact that adoption of this guidance will have on the financial statements of SJI and SJG. In March 2018, the FASB issued ASU 2018-04, Investments—Debt Securities (Topic 320) and Regulated Operations (Topic 980): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273 (SEC Update) . This ASU incorporates recent SEC guidance which was issued in order to make the relevant interpretive guidance consistent with current authoritative accounting and auditing guidance and SEC rules and regulation. ASU No. 2018-04 was effective upon issuance. Adoption of this guidance did not have an impact on the financial statement results of SJI or SJG. In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . This ASU aligns the accounting for share-based payment awards issued to employees and nonemployees. Under the new guidance, equity-classified share-based payment awards issued to nonemployees will now be measured on the grant date, instead of the previous requirement to remeasure the awards through the performance completion date. For performance conditions, compensation cost associated with the award will be recognized when achievement of the performance condition is probable, rather than upon achievement of the performance condition. The current requirement to reassess the classification (equity or liability) for nonemployee awards upon vesting will be eliminated, except for awards in the form of convertible instruments. The standard is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. Management is currently determining the impact that adoption of this guidance will have on the financial statements of SJI and SJG. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This ASU modifies the disclosure requirements on the timing of liquidation of an investee's assets and the description of measurement uncertainty at the reporting date. Entities are now required to disclose: (1) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements; and (2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. Further, the standard eliminates disclosure requirements with respect to: (1) the transfers between Level 1 and Level 2 of the fair value hierarchy; (2) the po |
STOCK-BASED COMPENSATION PLAN
STOCK-BASED COMPENSATION PLAN | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION PLAN | STOCK-BASED COMPENSATION PLAN: On April 30, 2015, the shareholders of SJI approved the adoption of SJI's 2015 Omnibus Equity Compensation Plan (Plan), replacing the Amended and Restated 1997 Stock-Based Compensation Plan that had terminated on January 26, 2015. Under the Plan, shares may be issued to SJI’s officers (Officers), non-employee directors (Directors) and other key employees. No options were granted or outstanding during the nine months ended September 30, 2018 and 2017 . No stock appreciation rights have been issued under the plans. During the nine months ended September 30, 2018 and 2017 , SJI granted 201,858 and 167,734 restricted shares, respectively, to Officers and other key employees under the Plan. Performance-based restricted shares vest over a three -year period and are subject to SJI achieving certain market and earnings-based performance targets, which can cause the actual amount of shares that ultimately vest to range from 0% to 200% of the original shares granted. SJI grants time-based shares of restricted stock, one-third of which vest annually over a three -year period and which are limited to a 100% payout. Vesting of time-based grants is contingent upon SJI achieving a return on equity (ROE) of at least 7% during the initial year of the grant and meeting the service requirement. Provided that the 7% ROE requirement is met in the initial year, payout is solely contingent upon the service requirement being met in years two and three of the grant. Beginning in 2018, the vesting and payout of time-based shares of restricted stock is only contingent upon the service requirement being met in years one , two , and three of the grant. During the nine months ended September 30, 2018 and 2017 , Officers and other key employees were granted 67,479 and 53,058 shares of time-based restricted stock, respectively, which are included in the shares noted above. Grants containing market-based performance targets use SJI's total shareholder return (TSR) relative to a peer group to measure performance. As TSR-based grants are contingent upon market and service conditions, SJI is required to measure and recognize stock-based compensation expense based on the fair value at the date of grant on a straight-line basis over the requisite three -year period of each award. In addition, SJI identifies specific forfeitures of share-based awards, and compensation expense is adjusted accordingly over the requisite service period. Compensation expense is not adjusted based on the actual achievement of performance goals. The fair value of TSR-based restricted stock awards on the date of grant is estimated using a Monte Carlo simulation model. Earnings-based performance targets include pre-defined EGR and ROE goals to measure performance. Beginning in 2016, performance targets include pre-defined compounded earnings annual growth rate (CEGR) for SJI. As EGR-based, ROE-based and CEGR-based grants are contingent upon performance and service conditions, SJI is required to measure and recognize stock-based compensation expense based on the fair value at the date of grant over the requisite three -year period of each award. The fair value is measured as the market price at the date of grant. The initial accruals of compensation expense are based on the estimated number of shares expected to vest, assuming the requisite service is rendered and probable outcome of the performance condition is achieved. That estimate is revised if subsequent information indicates that the actual number of shares is likely to differ from previous estimates. Compensation expense is ultimately adjusted based on the actual achievement of service and performance targets. During the nine months ended September 30, 2018 and 2017 , SJI granted 26,416 and 30,394 restricted shares, respectively, to Directors. Shares issued to Directors vest over twelve months and contain no performance conditions. As a result, 100% of the shares granted generally vest. The following table summarizes the nonvested restricted stock awards outstanding for SJI at September 30, 2018 and the assumptions used to estimate the fair value of the awards: Grants Shares Outstanding Fair Value Per Share Expected Volatility Risk-Free Interest Rate Officers & Key Employees - 2016 - TSR 51,587 $ 22.53 18.1 % 1.31 % 2016 - CEGR, Time 65,104 $ 23.52 N/A N/A 2017 - TSR 44,376 $ 32.17 20.8 % 1.47 % 2017 - CEGR, Time 72,992 $ 33.69 N/A N/A 2018 - TSR 61,009 $ 31.05 21.9 % 2.00 % 2018 - CEGR, Time 124,072 $ 31.23 N/A N/A Directors - 2018 26,416 $ 31.16 N/A N/A Expected volatility is based on the actual volatility of SJI’s share price over the preceding three -year period as of the valuation date. The risk-free interest rate is based on the zero-coupon U.S. Treasury Bond, with a term equal to the three -year term of the Officers’ and other key employees’ restricted shares. As notional dividend equivalents are credited to the holders during the three -year service period, no reduction to the fair value of the award is required. As the Directors’ restricted stock awards contain no performance conditions and dividends are paid or credited to the holder during the requisite service period, the fair value of these awards are equal to the market value of the shares on the date of grant. The following table summarizes the total stock-based compensation cost to SJI for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Officers & Key Employees $ 549 $ 1,087 $ 2,739 $ 3,274 Directors 206 256 617 767 Total Cost 755 1,343 3,356 4,041 Capitalized (101 ) (96 ) (303 ) (288 ) Net Expense $ 654 $ 1,247 $ 3,053 $ 3,753 As of September 30, 2018 , there was $6.3 million of total unrecognized compensation cost related to nonvested stock-based compensation awards granted under the plans. 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 for SJI during the nine months ended September 30, 2018 , excluding accrued dividend equivalents: Officers and Other Key Employees Directors Weighted Average Fair Value Nonvested Shares Outstanding, January 1, 2018 342,793 30,394 $ 28.60 Granted 201,858 26,416 $ 31.17 Cancelled/Forfeited (80,610 ) — $ 28.72 Vested (44,901 ) (30,394 ) $ 30.56 Nonvested Shares Outstanding, September 30, 2018 419,140 26,416 $ 29.56 During the nine months ended September 30, 2018 and 2017 , SJI awarded 67,130 shares to its Officers and other key employees at a market value of $2.0 million , and 65,628 shares at a market value of $2.2 million , respectively. During the nine months ended September 30, 2018 and 2017 , SJI also granted 26,416 and 30,394 shares to its Directors at a market value of $0.8 million and $1.0 million , respectively. SJI has a policy of issuing new shares to satisfy its obligations under the Plan; therefore, there are no cash payment requirements resulting from the normal operation of the Plan. However, a change in control could result in such shares becoming nonforfeitable or immediately payable in cash. At the discretion of the Officers, Directors and other key employees, the receipt of vested shares can be deferred until future periods. These deferred shares are included in Treasury Stock on the condensed consolidated balance sheets. Officers and other key employees of SJG participate in the stock-based compensation plans of SJI. During the nine months ended September 30, 2018 and 2017 , SJG officers and other key employees were granted 32,924 and 24,001 shares of SJI restricted stock, respectively. The cost of outstanding stock awards for SJG during the nine months ended September 30, 2018 and 2017 was $0.5 million and $0.3 million , respectively. Approximately 60% of these costs were capitalized on SJG's condensed balance sheets to Utility Plant. |
AFFILIATIONS, DISCONTINUED OPER
AFFILIATIONS, DISCONTINUED OPERATIONS AND RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
AFFILIATIONS, DISCONTINUED OPERATIONS AND RELATED PARTY TRANSACTIONS | AFFILIATIONS, DISCONTINUED OPERATIONS AND RELATED-PARTY TRANSACTIONS: AFFILIATIONS — The following affiliated entities are accounted for under the equity method: PennEast Pipeline Company, LLC (PennEast) - Midstream has a 20% investment in PennEast, which is planning to construct an approximately 118 -mile natural gas pipeline that will extend from Northeastern Pennsylvania into New Jersey. Energenic – US, LLC (Energenic) - Marina and a joint venture partner formed Energenic, in which Marina has a 50% equity interest. Energenic developed and operated on-site, self-contained, energy-related projects. Millennium Account Services, LLC (Millennium) - SJI and a joint venture partner formed Millennium, in which SJI has a 50% equity interest. Millennium reads utility customers’ meters on a monthly basis for a fee. Potato Creek, LLC (Potato Creek) - SJI and a joint venture partner formed Potato Creek, in which SJI has a 30% equity interest. Potato Creek owns and manages the oil, gas and mineral rights of certain real estate in Pennsylvania. EnergyMark, LLC (EnergyMark) - SJE has a 33% investment in EnergyMark, an entity that acquires and markets natural gas to retail end users. SJRG had net sales to EnergyMark of $7.7 million and $7.5 million for the three months ended September 30, 2018 and 2017, respectively , and $29.0 million and $28.1 million for the nine months ended September 30, 2018 and 2017, respectively . EnerConnex, LLC (EnerConnex) - In the second quarter of 2018, SJI entered into an agreement to obtain a 25% investment in EnerConnex, which is a retail and wholesale broker and consultant that matches end users with suppliers for the procurement of natural gas and electricity. The investment made by SJI in EnerConnex was not material. During the first nine months of 2018 and 2017 , SJI made net investments in unconsolidated affiliates of $8.2 million and $22.4 million , respectively. As of September 30, 2018 and December 31, 2017 , the outstanding balance of Notes Receivable – Affiliate was $16.8 million and $18.2 million , respectively. As of September 30, 2018 , $13.6 million of these notes were secured by property, plant and equipment of the affiliates, accrue interest at 7.5% and are to be repaid through 2025 . The remaining $3.2 million of these notes are unsecured and accrue interest at variable rates. SJI holds significant variable interests in these entities but is not the primary beneficiary. Consequently, these entities are accounted for under the equity method because SJI does not have both (a) the power to direct the activities of the entity that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the entity that could potentially be significant to the entity or the right to receive benefits from the entity that could potentially be significant to the entity. As of September 30, 2018 , SJI had a net asset of approximately $74.8 million included in Investment in Affiliates on the condensed consolidated balance sheets related to equity method investees, in addition to Notes Receivable – Affiliate as discussed above. SJI’s maximum exposure to loss from these entities as of September 30, 2018 , is limited to its combined equity contributions and the Notes Receivable-Affiliate in the aggregate amount of $91.6 million . DISCONTINUED OPERATIONS - Discontinued Operations consist of the environmental remediation activities related to the properties of South Jersey Fuel, Inc. (SJF) and the product liability litigation and environmental remediation activities related to the prior business of The Morie Company, Inc. (Morie). SJF is a subsidiary of Energy & Minerals, Inc. (EMI), an SJI subsidiary, which previously operated a fuel oil business. Morie is the former sand mining and processing subsidiary of EMI. EMI sold the common stock of Morie in 1996. SJI conducts tests annually to estimate the environmental remediation costs for these properties (see Note 11). Summarized operating results of the discontinued operations for the three and nine months ended September 30, 2018 and 2017 , were (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Loss before Income Taxes: Sand Mining $ 3 $ (17 ) $ (30 ) $ (49 ) Fuel Oil (57 ) (53 ) (139 ) (139 ) Income Tax Benefits 11 25 34 66 Loss from Discontinued Operations — Net $ (43 ) $ (45 ) $ (135 ) $ (122 ) Earnings Per Common Share from Discontinued Operations — Net: Basic and Diluted $ — $ — $ — $ — SJG RELATED-PARTY TRANSACTIONS - There have been no significant changes in the nature of SJG’s related-party transactions since December 31, 2017 . See Note 3 to the Financial Statements in Item 8 of SJI's and SJG’s Form 10-K for the year ended December 31, 2017 for a detailed description of the related parties and their associated transactions. A summary of related-party transactions involving SJG, excluding pass-through items, included in SJG's Operating Revenues were as follows (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Operating Revenues/Affiliates: SJRG $ 691 $ 1,210 $ 4,388 $ 3,421 Marina 89 72 281 219 Other 23 21 69 63 Total Operating Revenue/Affiliates $ 803 $ 1,303 $ 4,738 $ 3,703 Related-party transactions involving SJG, excluding pass-through items, included in SJG's Cost of Sales and Operating Expenses were as follows (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Costs of Sales/Affiliates (Excluding depreciation and amortization) SJRG* $ 1,094 $ 1,453 $ 28,525 $ 12,399 Operations Expense/Affiliates: SJI $ 6,148 $ 4,316 $ 19,899 $ 15,354 Millennium 750 717 2,191 2,137 Other (112 ) (173 ) (344 ) (253 ) Total Operations Expense/Affiliates $ 6,786 $ 4,860 $ 21,746 $ 17,238 *As discussed in Note 1 to the Consolidated Financial Statements in Item 8 of SJI’s and SJG's Annual Report on Form 10-K for the year ended December 31, 2017 , revenues and expenses related to the energy trading activities of the wholesale energy operations at SJRG are presented on a net basis in Operating Revenues – Nonutility on the condensed consolidated income statement. |
COMMON STOCK
COMMON STOCK | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
COMMON STOCK | COMMON STOCK: The following shares were issued and outstanding for SJI: 2018 Beginning Balance, January 1 79,549,080 New Issuances During the Period: Public Equity Offering 5,889,830 Stock-Based Compensation Plan 67,308 Ending Balance, September 30 85,506,218 The par value ( $1.25 per share) of stock issued was recorded in Common Stock and the net excess over par value of approximately $133.4 million was recorded in Premium on Common Stock. There were 2,339,139 shares of SJG's common stock (par value $2.50 per share) outstanding as of September 30, 2018 . SJG did not issue any new shares during the period. SJIU owns all of the outstanding common stock of SJG. PUBLIC OFFERINGS - In April 2018, the Company completed the following public offerings, the net proceeds of which were used to fund a portion of the consideration paid for the assets of ETG and ELK (see Notes 1 and 17): • SJI offered 12,669,491 shares of its common stock, par value $1.25 per share, at a public offering price of $29.50 per share. Of the offered shares, 5,889,830 shares were issued at closing, including 1,652,542 shares pursuant to the underwriters’ option. The gross proceeds from these shares was $173.7 million , with net proceeds, after deducting underwriting discounts and commissions, of $167.7 million . The remaining 6,779,661 shares of common stock ("Forward Shares") are to be sold by Bank of America, N.A., as forward seller, pursuant to a forward sale agreement. The Company received no proceeds from the sale of the Forward Shares at the closing, and has not received proceeds as of September 30, 2018 . SJI has an option to settle the forward sale agreement by delivering newly issued shares of SJI common stock and receive proceeds, subject to certain adjustments, from the sale of those shares, assuming one or more future physical settlements of the forward sale agreement, no later than April 2019. SJI may also choose to settle the forward sale contract with a cash payment, or multiple cash payments, no later than April 2019. In the event SJI elects to settle all or a portion of the forward sale contract with a cash payment, no additional shares of SJI common stock would be issued under the forward sale contract for the portions that were cash settled. • SJI issued and sold 5,750,000 Equity Units, initially in the form of Corporate Units, which included 750,000 Corporate Units pursuant to the underwriters’ option. Each Corporate Unit has a stated amount of $50 and is comprised of (a) a purchase contract obligating the holder to purchase from the Company, and for the Company to sell to the holder for a price in cash of $50 , on the purchase contract settlement date, or April 15, 2021, subject to earlier termination or settlement, a certain number of shares of common stock; and (b) a 1/20, or 5% , undivided beneficial ownership interest in $1,000 principal amount of SJI’s 2018 Series A 3.70% Remarketable Junior Subordinated Notes due 2031. SJI will pay the holder quarterly contract adjustment payments at a rate of 3.55% per year on the stated amount of $50 per Equity Unit, in respect of each purchase contract, subject to the Company's right to defer these payments. No deferral period will extend beyond the purchase contract settlement date. The contract adjustment payments are payable quarterly on January 15, April 15, July 15 and October 15 of each year (except that if such date is not a business day, contract adjustment payments will be payable on the following business day, without adjustment), commencing on July 15, 2018. The contract adjustment payments will be subordinated to all of the Company's existing and future “Priority Indebtedness” and will be structurally subordinated to all liabilities of our subsidiaries. The present value of the contract adjustment payments due through April 15, 2021 will be initially charged to Shareholders’ Equity, with an offsetting credit to Other Current and Noncurrent Liabilities on the condensed consolidated balance sheet. These liabilities are accreted over the life of the purchase contract by interest charges to the income statement based on a constant rate calculation. Subsequent contract adjustment payments reduce this liability.This offering resulted in gross proceeds of approximately $287.5 million , with net proceeds, after deducting underwriting discounts and commissions, of $278.9 million . As of September 30, 2018 , the net proceeds, after amortization of the underwriting discounts, are recorded as Long-Term Debt on the unaudited condensed consolidated balance sheets (see Note 14). SJI's EARNINGS PER COMMON SHARE (EPS) - SJI's Basic EPS is based on the weighted-average number of common shares outstanding. The incremental shares of 1,245,564 and 138,346 for the three months ended September 30, 2018 and 2017, respectively, and 742,313 and 137,003 for the nine months ended September 30, 2018 and 2017, respectively, were not included in the denominator for the diluted EPS calculation because they would have an antidilutive effect on EPS. These additional shares relate to SJI's restricted stock as discussed in Note 2, along with the impact of the Forward Shares and Equity Units discussed above, accounted for under the treasury stock method. DIVIDEND REINVESTMENT PLAN (DRP) — SJI offers a DRP which allows participating shareholders to purchase shares of SJI common stock by automatic reinvestment of dividends or optional purchases. SJI currently purchases shares on the open market to fund share purchases by DRP participants, and as a result SJI did not raise any equity capital through the DRP in 2017 or 2018. SJI does not intend to issue equity capital via the DRP in 2018. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2018 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS: RESTRICTED INVESTMENTS — SJI and SJG maintain margin accounts with selected counterparties to support their risk management activities. The balances required to be held in these margin accounts increase as the net value of the outstanding energy-related contracts with the respective counterparties decrease. As of September 30, 2018 and December 31, 2017 , SJI's balances (including SJG) in these accounts totaled $10.0 million and $31.6 million , respectively, held by the counterparty, which is recorded in Restricted Investments on the unaudited condensed consolidated balance sheets. As of September 30, 2018 and December 31, 2017 , SJG's balance held by the counterparty totaled $0.5 million and $2.9 million and was recorded in Restricted Investments on the unaudited condensed balance sheets. The carrying amounts of the Restricted Investments for both SJI and SJG approximate their fair values at September 30, 2018 and December 31, 2017 , which would be included in Level 1 of the fair value hierarchy (see Note 13). The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets that sum to the total of the same such amounts shown in the unaudited condensed consolidated statements of cash flows (in thousands): As of September 30, 2018 Balance Sheet Line Item SJI SJG Cash and Cash Equivalents $ 3,314 $ 1,647 Restricted Investments 10,002 532 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 13,316 $ 2,179 As of December 31, 2017 Balance Sheet Line Item SJI SJG Cash and Cash Equivalents $ 7,819 $ 1,707 Restricted Investments 31,876 2,912 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 39,695 $ 4,619 NOTES RECEIVABLE-AFFILIATES - As of September 30, 2018 , SJI had approximately $13.6 million included in Notes Receivable - Affiliate on the unaudited condensed consolidated balance sheets, due from Energenic, which is secured by its cogeneration assets for energy service projects. This note is subject to a reimbursement agreement that secures reimbursement for SJI, from its joint venture partner, of a proportionate share of any amounts that are not repaid. LONG-TERM RECEIVABLES - SJG provides financing to customers for the purpose of attracting conversions to natural gas heating systems from competing fuel sources. The terms of these loans call for customers to make monthly payments over periods ranging from five to ten years, with no interest. The carrying amounts of such loans were $5.5 million and $7.0 million as of September 30, 2018 and December 31, 2017 , respectively. The current portion of these receivables is reflected in Accounts Receivable and the non-current portion is reflected in Contract Receivables on the unaudited condensed consolidated balance sheets. The carrying amounts noted above are net of unamortized discounts resulting from imputed interest in the amount of $ 0.6 million and $0.7 million as of September 30, 2018 and December 31, 2017 , respectively. The annualized amortization to interest is not material to SJI’s or SJG's unaudited condensed consolidated financial statements. The carrying amounts of these receivables approximate their fair value at September 30, 2018 and December 31, 2017 , which would be included in Level 2 of the fair value hierarchy (see Note 13). CREDIT RISK - As of September 30, 2018 , SJI had approximately $12.2 million , or 34.5% , of the current and noncurrent Derivatives – Energy Related Assets transacted with three counterparties. These counterparties are investment grade rated. FINANCIAL INSTRUMENTS NOT CARRIED AT FAIR VALUE - The fair value of a financial instrument is the market price to sell an asset or transfer a liability at the measurement date. The carrying amounts of SJI's and SJG's financial instruments approximate their fair values at September 30, 2018 and December 31, 2017 , except as noted below. • For Long-Term Debt, in estimating the fair value, SJI and SJG use the present value of remaining cash flows at the balance sheet date. SJI and SJG based the estimates on interest rates available at the end of each period for debt with similar terms and maturities (Level 2 in the fair value hierarchy, see Note 13). • The estimated fair values of SJI's long-term debt (which includes SJG and all consolidated subsidiaries), including current maturities, as of September 30, 2018 and December 31, 2017 , were $2.79 billion and $1.22 billion , respectively. The carrying amounts of SJI's long-term debt, including current maturities, as of September 30, 2018 and December 31, 2017 , were $2.76 billion and $1.19 billion , respectively. SJI's carrying amounts as of September 30, 2018 and December 31, 2017 are net of unamortized debt issuance costs of $22.9 million and $17.4 million , respectively. • The estimated fair values of SJG's long-term debt, including current maturities, as of September 30, 2018 and December 31, 2017 , were $801.5 million and $838.5 million , respectively. The carrying amount of SJG's long-term debt, including current maturities, as of September 30, 2018 and December 31, 2017 , was $812.3 million and $821.9 million , respectively. The carrying amounts as of September 30, 2018 and December 31, 2017 are net of unamortized debt issuance costs of $6.8 million and $7.3 million , respectively. OTHER FINANCIAL INSTRUMENTS - The carrying amounts of SJI's and SJG's other financial instruments approximate their fair values at September 30, 2018 and December 31, 2017 . |
SEGMENTS OF BUSINESS
SEGMENTS OF BUSINESS | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENTS OF BUSINESS | SEGMENTS OF BUSINESS: SJI operates in several different reportable operating segments which reflect the financial information regularly evaluated by the chief operating decision maker ("CODM"). These segments are as follows: • SJG utility operations consist primarily of natural gas distribution to residential, commercial and industrial customers in southern New Jersey. • ETG utility operations consist of natural gas distribution to residential, commercial and industrial customers in northern and central New Jersey. • ELK utility operations consist of natural gas distribution to residential, commercial and industrial customers in Maryland. • Wholesale energy operations include the activities of SJRG and SJEX. • SJE is involved in both retail gas and retail electric activities. ◦ Retail gas and other operations include natural gas acquisition and transportation service business lines. ◦ Retail electric operations consist of electricity acquisition and transportation to commercial, industrial and residential customers. • On-site energy production consists of Marina's thermal energy facility and other energy-related projects. Also included in this segment are the activities of ACB, ACLE, BCLE, SCLE, SXLE, MCS, NBS and SBS. As discussed in Notes 1 and 18, in October 2018, Marina closed on the sale of the first group of sites related to Marina's portfolio of solar energy assets to a third party. Included in this group of sites were the wholly-owned subsidiaries of MCS, NBS and SBS. • Appliance service operations includes SJESP, which serviced residential and small commercial HVAC systems, installed small commercial HVAC systems, provided plumbing services and serviced appliances under warranty via a subcontractor arrangement as well as on a time and materials basis. On September 1, 2017, SJESP sold certain assets of its residential and small commercial HVAC and plumbing business to a third party. SJESP continues to receive commissions paid on service contracts from the third party and will do so on a going forward basis. • Midstream was formed to invest in infrastructure and other midstream projects, including a current project to build a natural gas pipeline in Pennsylvania and New Jersey. • Corporate & Services segment includes the costs related to Acquistion, along with other unallocated costs. SJI groups its utility businesses under its wholly-owned subsidiary SJI Utilities (SJIU). This group consists of gas utility operations of SJG, ETG and ELK. SJI groups its nonutility operations into two categories: Energy Group and Energy Services. Energy Group includes wholesale energy, retail gas and other, and retail electric operations. Energy Services includes on-site energy production and appliance service operations. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Intersegment sales and transfers are treated as if the sales or transfers were to third parties at current market prices. Information about SJI’s operations in different reportable operating segments is presented below (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Operating Revenues: SJI Utilities: SJG Utility Operations $ 56,371 $ 66,755 $ 367,631 $ 346,820 ETG Utility Operations 29,117 — 29,117 — ELK Utility Operations 770 — 770 — Subtotal SJI Utilities 86,258 66,755 397,518 346,820 Energy Group: Wholesale Energy Operations 134,867 70,741 392,430 274,667 Retail Gas and Other Operations 18,292 18,156 81,661 76,793 Retail Electric Operations 51,269 45,316 137,966 136,893 Subtotal Energy Group 204,428 134,213 612,057 488,353 Energy Services: On-Site Energy Production 15,317 29,942 61,208 74,689 Appliance Service Operations 509 1,552 1,480 5,190 Subtotal Energy Services 15,826 31,494 62,688 79,879 Corporate and Services 9,126 9,577 33,208 32,186 Subtotal 315,638 242,039 1,105,471 947,238 Intersegment Sales (13,158 ) (14,912 ) (53,716 ) (49,908 ) Total Operating Revenues $ 302,480 $ 227,127 $ 1,051,755 $ 897,330 Three Months Ended Nine Months Ended 2018 2017 2018 2017 Operating (Loss) Income (See Note 1): SJI Utilities: SJG Utility Operations $ (6,827 ) $ (4,049 ) $ 94,417 $ 85,911 ETG Utility Operations (19,808 ) — (19,808 ) — ELK Utility Operations (518 ) — (518 ) — Subtotal SJI Utilities (27,153 ) (4,049 ) 74,091 85,911 Energy Group: Wholesale Energy Operations (11,992 ) (11,346 ) 53,193 (41,163 ) Retail Gas and Other Operations 590 (574 ) (3,509 ) (3,801 ) Retail Electric Operations 557 (344 ) 1,443 2,117 Subtotal Energy Group (10,845 ) (12,264 ) 51,127 (42,847 ) Energy Services: On-Site Energy Production 2,966 (38,351 ) (98,023 ) (35,216 ) Appliance Service Operations (322 ) (392 ) 623 (398 ) Subtotal Energy Services 2,644 (38,743 ) (97,400 ) (35,614 ) Corporate and Services (3,238 ) 979 (17,072 ) 3,952 Total Operating (Loss) Income $ (38,592 ) $ (54,077 ) $ 10,746 $ 11,402 Depreciation and Amortization: SJI Utilities: SJG Utility Operations $ 20,427 $ 17,751 $ 61,016 $ 52,559 ETG Utility Operations 6,403 — 6,403 — ELK Utility Operations 94 — 94 — Subtotal SJI Utilities 26,924 17,751 67,513 52,559 Energy Group: Wholesale Energy Operations 36 31 88 92 Retail Gas and Other Operations 75 80 228 247 Subtotal Energy Group 111 111 316 339 Energy Services: On-Site Energy Production 1,210 11,731 21,805 34,998 Appliance Service Operations — 43 — 153 Subtotal Energy Services 1,210 11,774 21,805 35,151 Corporate and Services 2,651 448 11,816 1,267 Total Depreciation and Amortization $ 30,896 $ 30,084 $ 101,450 $ 89,316 Interest Charges (See Note 1): SJI Utilities SJG Utility Operations $ 7,108 $ 6,437 $ 20,835 $ 18,392 ETG Utility Operations 4,835 — 4,835 — ELK Utility Operations 3 — 3 — Subtotal SJI Utilities 11,946 6,437 25,673 18,392 Energy Group: Wholesale Energy Operations — (162 ) — 3,031 Retail Gas and Other Operations 141 55 392 204 Subtotal Energy Group 141 (107 ) 392 3,235 Energy Services: On-Site Energy Production 4,115 3,549 12,060 13,240 Midstream 541 160 1,446 795 Corporate and Services 15,303 4,895 36,141 14,442 Subtotal 32,046 14,934 75,712 50,104 Intersegment Borrowings (5,512 ) (4,367 ) (15,645 ) (11,813 ) Total Interest Charges $ 26,534 $ 10,567 $ 60,067 $ 38,291 Three Months Ended Nine Months Ended 2018 2017 2018 2017 Income Taxes (See Note 1): SJI Utilities: SJG Utility Operations $ (2,818 ) $ (3,688 ) $ 19,500 $ 27,654 ETG Utility Operations (6,866 ) — (6,866 ) — ELK Utility Operations (143 ) — (143 ) — Subtotal SJI Utilities (9,827 ) (3,688 ) 12,491 27,654 Energy Group: Wholesale Energy Operations (3,036 ) (4,281 ) 13,613 (16,984 ) Retail Gas and Other Operations 144 (225 ) (916 ) (1,265 ) Retail Electric Operations 157 (141 ) 406 866 Subtotal Energy Group (2,735 ) (4,647 ) 13,103 (17,383 ) Energy Services: On-Site Energy Production (331 ) (16,270 ) (27,977 ) (19,120 ) Appliance Service Operations 171 (220 ) 408 (201 ) Subtotal Energy Services (160 ) (16,490 ) (27,569 ) (19,321 ) Midstream (100 ) — (60 ) (85 ) Corporate and Services (3,827 ) 60 (10,171 ) 696 Total Income Taxes $ (16,649 ) $ (24,765 ) $ (12,206 ) $ (8,439 ) Property Additions (See Note 1): SJI Utilities: SJG Utility Operations $ 63,342 $ 59,179 $ 178,727 $ 187,587 ETG Utility Operations 18,637 — 18,637 — ELK Utility Operations 129 — 129 — Subtotal SJI Utilities 82,108 59,179 197,493 187,587 Energy Group: Wholesale Energy Operations — — 32 5 Retail Gas and Other Operations 186 204 495 632 Subtotal Energy Group 186 204 527 637 Energy Services: On-Site Energy Production 696 1,633 2,379 11,899 Appliance Service Operations — — — 260 Subtotal Energy Services 696 1,633 2,379 12,159 Midstream (279 ) 42 31 200 Corporate and Services — 63 11,549 991 Total Property Additions $ 82,711 $ 61,121 $ 211,979 $ 201,574 September 30, 2018 December 31, 2017 Identifiable Assets: SJI Utilities: SJG Utility Operations $ 2,966,384 $ 2,865,974 ETG Utility Operations 2,044,378 — ELK Utility Operations 15,158 — Subtotal SJI Utilities 5,025,920 2,865,974 Energy Group: Wholesale Energy Operations 187,258 208,785 Retail Gas and Other Operations 43,899 56,935 Retail Electric Operations 41,367 34,923 Subtotal Energy Group 272,524 300,643 Energy Services: On-Site Energy Production 477,573 582,587 Appliance Service Operations 28 1,338 Subtotal Energy Services 477,601 583,925 Midstream 70,753 63,112 Discontinued Operations 1,781 1,757 Corporate and Services 621,152 711,038 Intersegment Assets (555,209 ) (661,363 ) Total Identifiable Assets $ 5,914,522 $ 3,865,086 |
RATES AND REGULATORY ACTIONS
RATES AND REGULATORY ACTIONS | 9 Months Ended |
Sep. 30, 2018 | |
Public Utilities, General Disclosures [Abstract] | |
RATES AND REGULATORY ACTIONS | RATES AND REGULATORY ACTIONS: SJG and ETG are subject to the rules and regulations of the New Jersey Board of Public Utilities (BPU). SJG: In March 2018, SJG filed a petition with the BPU seeking to continue its existing Energy Efficiency Programs (EEP), with modifications, and to implement new programs ( “EEP IV”) for a five -year period with a proposed budget of approximately $195.4 million and with the same rate recovery mechanism that exists for its current EEP's. Under its existing EEP's, SJG is permitted to recover incremental operating and maintenance expenses and earn a return of, and return on, program investments. The BPU approved this matter in October 2018 (see Note 18). In June 2018, SJG filed its ninth annual Energy Efficiency Tracker (“EET”) rate adjustment petition, requesting a $1.6 million decrease in revenues to continue recovering the costs of, and the allowed return on, prior investments associated with its EEPs. The matter is currently pending BPU approval. In July 2018, SJG filed its annual Societal Benefits Clause ("SBC") petition, requesting a net $3.4 million decrease, including tax, in SBC- related revenues. The SBC is comprised of three sub-components, including the Remediation Adjustment Clause ("RAC"), the Clean Energy Program ("CLEP") and the Transportation Initiation Clause ("TIC"). The matter is currently pending BPU approval. In September 2018, the BPU approved the following SJG requests: • A $65.5 million increase in the Basic Gas Supply Service ("BGSS") annual revenues and a $26.4 million decrease in Conservation Incentive Program ("CIP") annual revenues, both effective October 1, 2018, on a provisional basis, associated with the 2018-2019 BGSS/CIP year, which runs from October 1, 2018 through September 30, 2019. The matter is currently pending final BPU approval. • An increase in annual revenues from base rates of $6.6 million to reflect the roll-in of $60.4 million of Accelerated Infrastructure Replacement Program ("AIRP II") investments made from July 1, 2017 through June 30, 2018, effective October 1, 2018. • The Statewide Universal Service Fund ("USF") annual 2018-2019 budget for all of the New Jersey's gas utilities, which included a $0.9 million increase in SJG's USF recoveries, effective October 1, 2018. • The authorization to implement changes in the corporate tax rate, from 35% to 21% , within SJG's base rate, in accordance with Tax Reform, including: ◦ A final base rate adjustment to reflect an annual revenue reduction of approximately $25.9 million ; ◦ A one-time customer refund of approximately $13.8 million , including interest, for over collected tax during the period January 1, 2018 through September 30, 2018; and ◦ A customer refund of approximately $27.5 million for the "Unprotected" Excess Deferred Income Tax through a separate tariff rider over a five -year period. The refund related to the "Protected" Excess Deferred Tax will be addressed no later than March 31, 2019. The BGSS, CIP and USF approvals do not impact SJG's earnings. They represent changes in the cash requirement of SJG corresponding to cost changes and/or previous over/under recoveries from ratepayers associated with each respective mechanism. There have been no other significant regulatory actions or changes to SJG's rate structure since December 31, 2017 . See Note 10 to the Consolidated Financial Statements in Item 8 of SJI's and SJG's Annual Report on Form 10-K for the year ended December 31, 2017 . ETG: As part of the Acquisition approval by the BPU, the Company was required to provide ETG customers with a credit of $15.0 million within ninety days of the Acquisition closing date, which was July 1, 2018. ETG provided a one-time bill credit to all of its customers in the September billing cycle. In December 2017, the BPU adopted new rules related to utility Infrastructure Investment and Recovery ("IIT") to encourage utilities to implement infrastructure investment programs ("IIP"). ETG filed an IIP request with the BPU in October 2018 (see Note 18). In June 2017, the BPU approved a base rate settlement, effective July 1, 2017, which granted ETG a base rate increase of $13.3 million based on a 9.6% return on equity. In March 2018, ETG filed a petition with the BPU requesting an annual reduction of $10.9 million , effective April 1, 2018, which reflected the reduced corporate tax rate. The BPU authorized ETG to implement its proposed base rate reduction on April 1, 2018 on an interim basis and in June 2018, the BPU approved ETG's interim base rate reduction as permanent. Also in March 2018, ETG requested authorization to issue a one-time customer refund in a billing cycle during or before September 2018 for over-collected tax during the period January 1, 2018 though March 31, 2018. In June 2018, the BPU authorized a one-time customer refund of over-collected tax during the period of January 1, 2018 through June 30, 2018. During the three months ended September 30, 2018, ETG issued a one-time customer refund of $4.8 million , including interest, for over-collected tax during the period January 1, 2018 through June 30, 2018. ELK: ELK is subject to the rules and regulations of the Maryland Public Service Commission ("MPSC"). As part of the Acquisition approval by the MPSC, the Company was required to provide ELK customers with a one-time bill credit of $0.3 million . Bill credits were applied in the October billing cycle to ELK customers. In June 2018, ELK filed a base rate case application with the MPSC. In September 2018, ELK revised the application to request an annual revenue increase of $0.3 million . ELK expects the base rate case to be concluded in 2019. |
REGULATORY ASSETS AND REGULATOR
REGULATORY ASSETS AND REGULATORY LIABILITIES | 9 Months Ended |
Sep. 30, 2018 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
REGULATORY ASSETS AND REGULATORY LIABILITIES | REGULATORY ASSETS AND REGULATORY LIABILITIES: There have been no significant changes to the nature of SJG’s regulatory assets and liabilities since December 31, 2017 , which are described in Note 11 to the Consolidated Financial Statements in Item 8 of SJI’s and SJG's Annual Report on Form 10-K for the year ended December 31, 2017 . As of December 31, 2017, SJI had no regulatory assets or regulatory liabilities other than those of SJG; as of September 30, 2018, SJI's regulatory assets and liabilities include those of SJG, ETG and ELK. SJI's and SJG's Regulatory Assets consisted of the following items (in thousands): September 30, 2018 December 31, 2017 SJG ETG ELK Total SJI Total SJI and SJG Environmental Remediation Costs: Expended - Net $ 128,142 $ 7,728 $ — $ 135,870 $ 100,327 Liability for Future Expenditures 151,980 69,833 — 221,813 171,696 Deferred Asset Retirement Obligation Costs 30,448 — — 30,448 42,368 Deferred Pension and Other Postretirement Benefit Costs 78,211 41,706 — 119,917 78,211 Deferred Gas Costs - Net 71,247 — 678 71,925 16,838 Conservation Incentive Program Receivable 1,009 — — 1,009 26,652 Societal Benefit Costs Receivable 2,196 — — 2,196 2,484 Deferred Interest Rate Contracts 5,042 — — 5,042 7,028 Energy Efficiency Tracker 2,914 — — 2,914 2,094 Pipeline Supplier Service Charges 640 — — 640 708 Pipeline Integrity Cost 5,133 — — 5,133 5,280 AFUDC - Equity Related Deferrals 13,646 — — 13,646 12,785 Weather Normalization — 6,253 225 6,478 — Other Regulatory Assets 3,723 8,173 50 11,946 2,753 Total Regulatory Assets $ 494,331 $ 133,693 $ 953 $ 628,977 $ 469,224 ENVIRONMENTAL REMEDIATION COSTS - SJG and ETG have two regulatory assets associated with environmental costs related to the cleanup of environmental sites. SJG has 12 sites where SJG or its predecessors previously operated gas manufacturing plants, while ETG is subject to environmental remediation liabilities associated with six former manufactured gas plant sites in New Jersey. The first asset, "Environmental Remediation Cost: Expended - Net," represents what was actually spent to clean up the sites, less recoveries through the Remediation Adjustment Clause ("RAC") and insurance carriers. These costs meet the deferral requirements of GAAP, as the BPU allows SJG and ETG to recover such expenditures through the RAC. The other asset, "Environmental Remediation Cost: Liability for Future Expenditures," relates to estimated future expenditures required to complete the remediation of these sites. SJG and ETG recorded this estimated amount as a regulatory asset with the corresponding current and noncurrent liabilities on the unaudited condensed consolidated balance sheets under the captions "Current Liabilities" (both SJI and SJG), "Deferred Credits and Other Noncurrent Liabilities" (SJI) and "Regulatory and Other Noncurrent Liabilities" (SJG). The BPU allows SJG to recover the deferred costs over a seven -year period after costs are incurred. Accrued environmental remediation costs at ETG of $77.6 million have been recorded on the unaudited condensed consolidated balance sheets of SJI as of September 30, 2018. These environmental remediation expenditures are recoverable from customers through rate mechanisms approved by the BPU. DEFERRED ASSET RETIREMENT OBLIGATION COSTS - SJG records asset retirement obligations primarily related to the legal obligation to cut and cap gas distribution pipelines when taking those pipelines out of service. Deferred asset retirement obligation costs represent the period to period passage of time (accretion) and the revision to cash flows originally estimated to settle the retirement obligation. The Deferred Asset Retirement Obligation Costs regulatory asset decreased $11.9 million from December 31, 2017 to September 30, 2018, due to revisions to the settlement timing, retirement costs, and changes to inflation and discount rates used to measure the expected retirement costs. A corresponding decrease was made to the Asset Retirement Obligation liability, thus having no impact on earnings. DEFERRED PENSION AND OTHER POST RETIREMENT BENEFIT COSTS - This account includes $41.7 million related to ETG's unrecognized prior service cost and actuarial gains/losses that may be recovered through future rates for ETG. DEFERRED GAS COSTS - NET - Over/Under collections of gas costs are monitored through SJG's and ETG's BGSS bill credit. 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 BGSS regulatory asset at SJI and SJG increased $55.1 million and $54.4 million , respectively, from December 31, 2017 to September 30 , 2018, primarily due to the actual gas commodity costs exceeding recoveries from customers. CONSERVATION INCENTIVE PROGRAM ("CIP") RECEIVABLE – The CIP tracking mechanism at SJG adjusts earnings when actual usage per customer experienced during the period varies from an established baseline usage per customer. Actual usage per customer was more than the established baseline during the first nine months of 2018, resulting in a decrease in the receivable. This is primarily the result of cold weather experienced in the region. WEATHER NORMALIZATION - The tariffs for ETG include a weather normalization clause that reduces customer bills when winter weather is colder than normal and increases customer bills when winter weather is warmer than normal. SJI's and SJG's Regulatory Liabilities consisted of the following items (in thousands): September 30, 2018 December 31, 2017 SJG ETG ELK Total SJI Total SJI and SJG Excess Plant Removal Costs $ 22,167 $ 47,873 $ 1,379 $ 71,419 $ 23,295 Excess Deferred Taxes 267,866 119,572 1,231 388,669 263,810 Amounts to be Refunded to Customers — 18,227 — 18,227 — Other Regulatory Liabilities — 2,864 333 3,197 — Total Regulatory Liabilities $ 290,033 $ 188,536 $ 2,943 $ 481,512 $ 287,105 EXCESS PLANT REMOVAL COSTS - SJG and ETG accrue and collect for cost of removal of their utility property. This regulatory liability represents customer collections in excess of actual expenditures, which will be returned to customers as a reduction to depreciation expense. The increase from December 31, 2017 is due to the addition of ETG and ELK. EXCESS DEFERRED TAXES - As disclosed in Note 11 to the Consolidated Financial Statements in Item 8 of SJI’s and SJG's Annual Report on Form 10-K for the year ended December 31, 2017 , the Excess Deferred Tax balance relates to Tax Reform enacted into law on December 22, 2017 (see Note 1). The increase in this regulatory liability at SJI of $124.9 million during the first nine months of 2018 includes those excess deferred income tax liabilities of ETG and ELK resulting from Tax Reform. The increase in this regulatory liability at SJG of $4.1 million during the first nine months of 2018 is related to excess tax amounts that were billed to customers in the first quarter of 2018, which, pending approval by the BPU of the refund methodology, are expected to be returned to customers in September 2018. AMOUNTS TO BE REFUNDED TO CUSTOMERS - See "AMA" section in Note 1. |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFITS | 9 Months Ended |
Sep. 30, 2018 | |
Defined Benefit Plan [Abstract] | |
PENSION AND OTHER POSTRETIREMENT BENEFITS | PENSION AND OTHER POSTRETIREMENT BENEFITS: For the three and nine months ended September 30, 2018 and 2017 , net periodic benefit cost related to the employee and officer pension and other postretirement benefit plans for SJI consisted of the following components (in thousands): Pension Benefits Three Months Ended Nine Months Ended 2018 2017 2018 2017 Service Cost $ 1,875 $ 1,247 $ 4,691 $ 3,741 Interest Cost 3,818 2,943 9,642 8,829 Expected Return on Plan Assets (5,256 ) (3,526 ) (12,908 ) (10,579 ) Amortizations: Prior Service Cost 26 33 84 98 Actuarial Loss 2,878 2,570 8,642 7,712 Net Periodic Benefit Cost 3,341 3,267 10,151 9,801 Capitalized Benefit Cost (762 ) (1,143 ) (1,799 ) (3,542 ) Deferred Benefit Cost (594 ) (95 ) (1,719 ) (395 ) Total Net Periodic Benefit Expense $ 1,985 $ 2,029 $ 6,633 $ 5,864 Other Postretirement Benefits Three Months Ended Nine Months Ended 2018 2017 2018 2017 Service Cost $ 251 $ 228 $ 692 $ 683 Interest Cost 644 604 1,720 1,813 Expected Return on Plan Assets (1,129 ) (853 ) (3,012 ) (2,558 ) Amortizations: Prior Service Cost (74 ) (86 ) (246 ) (258 ) Actuarial Loss 223 310 674 928 Net Periodic Benefit Cost (85 ) 203 (172 ) 608 Capitalized Benefit Cost 263 66 258 (35 ) Total Net Periodic Benefit Expense $ 178 $ 269 $ 86 $ 573 The Pension Benefits Net Periodic Benefit Cost incurred by SJG was approximately $2.3 million of the totals presented in the table above for both the three months ended September 30, 2018 and 2017 , and $6.7 million and $7.1 million of the totals presented in the table above for the nine months ended September 30, 2018 and 2017, respectively. For the three months ended September 30 , 2018, and 2017, the Other Postretirement Benefits Net Periodic Benefit Cost incurred by SJG was $(0.5) million and $(0.1) million, respectively, of the totals presented in the table above. For the nine months ended September 30 , 2018 and 2017, the Other Postretirement Benefits Net Periodic Benefit Cost incurred by SJG was $(0.5) million and less than $(0.1) million , respectively, of the totals presented in the table above. Capitalized benefit costs reflected in the table above relate to SJG’s construction program. Effective January 1, 2018, SJI and SJG adopted FASB ASU 2017-07 which stipulates that only the service cost component of net benefit cost is eligible for capitalization. In SJG's rate case settlement in October 2017, The BPU allowed the deferral until the next base rate case of incremental expense associated with the adoption. SJI contributed $10.0 million to the pension plans, of which SJG contributed $8.0 million , in January 2017. No contributions were made to the pension plans by either SJI or SJG during the nine months ended September 30, 2018 . SJI and SJG do not expect to make any additional contributions to the pension plans in 2018; however, changes in future investment performance and discount rates may ultimately result in a contribution. Payments related to the unfunded supplemental executive retirement plan (SERP) are expected to be approximately $2.4 million in 2018 . As part of the ETG and ELK acquisition, SJI acquired the entities’ existing pension and other post-employment benefit plans. The plans include a qualified defined benefit, trusteed, pension plan covering most eligible employees. The qualified pension plan is funded in accordance with requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA). The Company also provides certain non-qualified defined benefit and defined contribution pension plans for a selected group of the Company's management and highly compensated employees. Benefits under these non-qualified pension plans are funded on a cash basis. In addition, the entities also have a postretirement benefit plan, which provides certain medical care and life insurance benefits for eligible retired employees through a postretirement benefit plan. SJI's Pension and Other Postretirement Benefits Liabilities increased by approximately $7.2 million as a result of the acquired pension and other post-employment benefit plans per the above. See Note 12 to the Consolidated Financial Statements in Item 8 of SJI’s and SJG's Annual Report on Form 10-K for the year ended December 31, 2017 for additional information related to SJI’s and SJG's pension and other postretirement benefits. |
LINES OF CREDIT
LINES OF CREDIT | 9 Months Ended |
Sep. 30, 2018 | |
Line of Credit Facility [Abstract] | |
LINES OF CREDIT | LINES OF CREDIT: Credit facilities and available liquidity as of September 30, 2018 were as follows (in thousands): Company Total Facility Usage Available Liquidity Expiration Date SJI: SJI Syndicated Revolving Credit Facility $ 400,000 $ 209,500 (A) $ 190,500 August 2022 Revolving Credit Facility 50,000 50,000 — September 2019 Total SJI 450,000 259,500 190,500 SJG: Commercial Paper Program/Revolving Credit Facility 200,000 141,000 (B) 59,000 August 2022 Uncommitted Bank Line 10,000 — 10,000 August 2019 Total SJG 210,000 141,000 69,000 ETG/ELK: ETG/ELK Revolving Credit Facility 200,000 27,800 172,200 June 2020 Total $ 860,000 $ 428,300 $ 431,700 (A) Includes letters of credit outstanding in the amount of $6.1 million . (B) Includes letters of credit outstanding in the amount of 0.8 million . On June 26, 2018, SJI (as a guarantor to ELK obligation under this revolving credit agreement) and ETG and ELK (as Borrowers) entered into a $200.0 million , two -year revolving credit agreement with several lenders. The revolving credit agreement provides for the extension of credit to the Borrowers in a total aggregate amount of $200.0 million ( $175.0 million for ETG; $25.0 million for ELK), in the form of revolving loans up to a full amount of $200.0 million , swingline loans in an amount not to exceed an aggregate of $20.0 million and letters of credit in an amount not to exceed an aggregate of $50.0 million , each at the applicable interest rates specified in the revolving credit agreement. Subject to certain conditions set forth in the revolving credit agreement, ETG may increase the revolving credit facility up to a maximum aggregate amount of $50.0 million (for a total revolving facility of up to $250.0 million ). This facility contains one financial covenant, limiting the ratio of indebtedness to total capitalization (as defined in the credit agreement) of each Borrower to not more than 0.70 to 1, measured at the end of each fiscal quarter. ETG and ELK were in compliance with this covenant at September 30, 2018. As of September 30, 2018, outstanding loans from this credit facility amount to $ 27.8 million . The SJG and ETG/ELK facilities are restricted as to use and availability specifically to SJG and ETG/ELK, respectively; however, if necessary, the SJI facilities can also be used to support the liquidity needs of SJG, ETG or ELK. Borrowings under these credit facilities are at market rates. SJI's weighted average interest rate on these borrowings (which includes SJG and ETG), which changes daily, was 2.68% and 2.26% at September 30, 2018 and 2017 , respectively. SJG did not have any outstanding borrowings at September 30, 2017 under its credit facility; however, SJG did have $140.2 million outstanding (exclusive of letters of credit) under the commercial paper program at September 30, 2018. SJG's weighted average interest rate on these borrowings, which changes daily, was 2.42% at September 30, 2018 . SJI's average borrowings outstanding under these credit facilities (which includes SJG and ETG/ELK), not including letters of credit, during the nine months ended September 30, 2018 and 2017 were $258.8 million and $260.9 million , respectively. SJG's average borrowings outstanding under its credit facilities during the nine months ended September 30, 2018 and 2017 were $67.9 million and $17.0 million , respectively. The SJI, SJG and ETG/ELK principal credit facilities are provided by a syndicate of banks. In January 2018, the Note Purchase Agreements ("NPA") for Senior Unsecured Notes issued by SJI, as well as the credit agreements with its syndicate of banks, were amended to reflect a financial covenant limiting the ratio of indebtedness to total capitalization (as defined in the respective NPA or credit agreement) to not more than 0.70 to 1, measured at the end of each fiscal quarter. For SJI, the equity units are treated as equity (as opposed to how they are classified on the unaudited condensed consolidated balance sheet, as long-term debt) for purposes of the covenant calculation. Further, in the event that SJI receives less than $500.0 million of net cash proceeds from the issuance of equity or equity-linked securities, that financial covenant limiting the ratio of indebtedness to total capitalization (as defined in the respective NPA or credit agreement) increases to not more than 0.75 to 1, measured at the end of each fiscal quarter, for a period of one year following the closing of the acquisition of ETG and ELK. SJI and SJG were in compliance with this covenant as of September 30, 2018 . However, one SJG bank facility still contains a financial covenant limiting the ratio of indebtedness to total capitalization (as defined in the respective credit agreement) to not more than 0.65 to 1 measured at the end of each fiscal quarter. As a result, SJG must ensure that the ratio of indebtedness to total capitalization (as defined in the respective credit agreement) does not exceed 0.65 to 1, as measured at the end of each fiscal quarter. SJG is was in compliance with this covenant as of September 30, 2018. SJG has a commercial paper program under which SJG may issue short-term, unsecured promissory notes to qualified investors up to a maximum aggregate amount outstanding at any time of $200.0 million . The notes have fixed maturities which vary by note, but may not exceed 270 days from the date of issue. Proceeds from the notes are used for general corporate purposes. SJG uses the commercial paper program in tandem with its $200.0 million revolving credit facility and does not expect the principal amount of borrowings outstanding under the commercial paper program and the credit facility at any time to exceed an aggregate of $200.0 million . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES: GUARANTEES — As of September 30, 2018 , SJI had issued $6.9 million of parental guarantees on behalf of an unconsolidated subsidiary. These guarantees generally expire within the next two years and were issued to enable the subsidiary to market retail natural gas. GAS SUPPLY CONTRACTS - In the normal course of business, SJG, SJRG and ETG have entered into long-term contracts for natural gas supplies, firm transportation and gas storage service. The transportation and storage service agreements with interstate pipeline suppliers were made under Federal Energy Regulatory Commission ("FERC") approved tariffs. SJG and ETG's cumulative obligation for gas supply-related demand charges and reservation fees paid to suppliers for these services averages approximately $5.7 million and $3.9 million per month, respectively, and is recovered on a current basis through the BGSS. SJRG's cumulative obligation for demand charges and reservation fees paid to suppliers for these services is approximately $0.5 million per month. SJRG has also committed to purchase a minimum of 752,500 dts/d and up to 892,500 dts/d of natural gas, from various suppliers, for terms ranging from 4 to 10 years at index-based prices. ETG has an Asset Management Agreement ("AMA") with SJRG for transportation and storage capacity to meet natural gas demands. The AMA is valid through March 31, 2022. It also requires SJRG to pay minimum annual fees of $4.25 million to ETG and includes tiered margin sharing levels between ETG and SJRG (see Note 1). TRANSITION SERVICES AGREEMENT ("TSA") - SJI has entered into a TSA with Southern Company Gas whereby the latter will provide certain administrative and operational services through no later than January 31, 2020. COLLECTIVE BARGAINING AGREEMENTS — Unionized personnel represent approximately 45% and 58% of SJI's and SJG's workforce at September 30, 2018 , respectively. SJI has collective bargaining agreements with three unions that represent these employees: the International Brotherhood of Electrical Workers ("IBEW") Local 1293, the International Association of Machinists and Aerospace Workers ("IAM") Local 76 and United Workers Union of America ("UWUA") Local 424. SJG employees represented by the IBEW operate under a collective bargaining agreement that runs through February 2022. SJG's remaining unionized employees are represented by the IAM and operate under a collective bargaining agreement that runs through August 2021. ETG employees represented by the UWUA operate under a collective bargaining agreement that runs through November 2019. STANDBY LETTERS OF CREDIT — As of September 30, 2018 , SJI provided $6.1 million of standby letters of credit through its revolving credit facility to enable SJE to market retail electricity and for various construction and operating activities. SJG provided a $0.8 million letter of credit under its revolving credit facility to support the remediation of environmental conditions at certain locations in SJG's service territory. SJG has provided $25.1 million of additional letters of credit under a separate facility outside of the 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. EQUITY AND CORPORATE UNITS - As part of the issuance of Equity and Corporate Units, the Company has a purchase contract obligating the holder of the units to purchase from the Company, and for the Company to sell to the holder for a price in cash of $50 , a certain number of shares of common stock. See Note 4. PENDING LITIGATION — SJI and SJG are subject to claims arising in the ordinary course of business and other legal proceedings. SJI has been named in, among other actions, certain gas supply contract disputes and certain product liability claims related to a former sand mining subsidiary. SJI is currently involved in a pricing dispute related to two long-term gas supply contracts. On May 8, 2017, a jury from the United States District Court for the District of Colorado returned a verdict in favor of the plaintiff supplier. On July 21, 2017, the Court entered Final Judgment against SJG and SJRG. As a result of this ruling, SJG and SJRG have accrued, including interest, $21.9 million and $56.3 million , respectively, from the first quarter of 2017 through September 30, 2018 . We believe that the amount to be paid by SJG reflects a gas cost that ultimately will be recovered from SJG’s customers through adjusted rates. As such, $21.9 million was recorded as both an Accounts Payable and an increase in Regulatory Assets on the unaudited condensed consolidated balance sheets of both SJI and SJG as of September 30, 2018 . Similarly, $56.3 million was associated with SJRG and was also recorded as an Accounts Payable on the unaudited condensed consolidated balance sheets of SJI as of September 30, 2018 , with charges of $1.4 million and $2.7 million to Cost of Sales - Nonutility on the unaudited condensed consolidated statements of income of SJI for the three and nine months ended September 30, 2018 , respectively. SJI also recorded $0.3 million and $0.7 million to Interest Charges on the unaudited condensed consolidated statements of income for the three and nine months ended September 30, 2018 , respectively. In April 2018, SJI filed an appeal of this judgment. During the pendency of the appeal, SJI continues to dispute the supplier invoices received and has created a reserve to reflect the differences between the invoices and paid amounts. The plaintiff supplier filed a second related lawsuit against SJG and SJRG in the United States District Court for the District of Colorado on December 21, 2017, alleging that SJG and SJRG have continued to breach the gas supply contracts notwithstanding the judgment in the prior lawsuit. The plaintiff supplier is seeking recovery of the amounts disputed by SJI since the earlier judgment, and a declaration regarding the price under the disputed contracts going forward until the contracts terminate in October 2019. The outcome of this lawsuit will be determined by the outcome in the pending appeal of the first lawsuit. All reserves related to this second lawsuit are recorded as part of the accrued amounts disclosed above. In August 2018, the State of New Jersey filed a civil enforcement action against SJG and several other current and former owners of certain property in Atlantic City, NJ where SJG and its predecessors previously operated manufactured gas plant. SJG is currently working with a licensed state remediation professional to remediate the site. The State of New Jersey is alleging damage to the State's natural resources and seeking payment for damages to those natural resources. The Company is currently evaluating the merits of the allegations and, at this time, can provide no assessment of the claim or assurance regarding its outcome. Liabilities related to claims are accrued when the amount or range of amounts of probable settlement costs or other charges for these claims can be reasonably estimated. For matters other than the disputes noted above, SJI has accrued approximately $3.1 million and $3.0 million related to all claims in the aggregate as of September 30, 2018 and December 31, 2017 , respectively, of which SJG has accrued approximately $0.8 million and $0.7 million as of September 30, 2018 and December 31, 2017 , respectively. Although SJI and SJG do not presently believe that these matters will have a material adverse effect on its business, given the inherent uncertainties in such situations, SJI and SJG can provide no assurance regarding the outcome of litigation. ENVIRONMENTAL REMEDIATION COSTS — SJG incurred and recorded costs for environmental remediation of 12 sites where SJG or its predecessors operated gas manufacturing plants. SJG stopped manufacturing gas in the 1950s. ETG is subject to environmental remediation liabilities associated with six former manufactured gas plant sites in New Jersey. These environmental remediation expenditures are recoverable from customers through rate mechanisms approved by the BPU. SJI and some of its nonutility subsidiaries also recorded costs for environmental cleanup of sites where SJF previously operated a fuel oil business and Morie maintained equipment, fueling stations and storage. Other than the changes discussed in Note 8 to the unaudited condensed consolidated financial statements, along with the addition of ETG noted above, there have been no changes to the status of SJI’s environmental remediation efforts since December 31, 2017 , as described in Note 15 to the Consolidated Financial Statements in Item 8 of SJI’s and SJG's Annual Report on Form 10-K for the year ended December 31, 2017 . |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS: Certain SJI subsidiaries, including SJG, are involved in buying, selling, transporting and storing natural gas and buying and selling retail electricity for their own accounts as well as managing these activities for third parties. These subsidiaries are subject to market risk on expected future purchases and sales due to commodity price fluctuations. SJI and SJG use a variety of derivative instruments to limit this exposure to market risk in accordance with strict corporate guidelines. These derivative instruments include forward contracts, swap agreements, options contracts and futures contracts. As of September 30, 2018 , SJI and SJG had outstanding derivative contracts as follows (1 MMdts = one million decatherms; 1 MMmWh = one million megawatt hours): SJI Consolidated SJG Derivative contracts intended to limit exposure to market risk to: Expected future purchases of natural gas (in MMdts) 74.5 8.9 Expected future sales of natural gas (in MMdts) 53.8 0.3 Expected future purchases of electricity (in MMmWh) 1.9 — Expected future sales of electricity (in MMmWh) 1.5 — Basis and Index related net purchase (sale) contracts (in MMdts) 87.6 1.1 These contracts, which have not been designated as hedging instruments under GAAP, are measured at fair value and recorded in Derivatives - Energy Related Assets or Derivatives - Energy Related Liabilities on the unaudited condensed consolidated balance sheets of SJI and SJG. For SJE and SJRG contracts, the net unrealized pre-tax gains (losses) for these energy-related commodity contracts are included with realized gains (losses) in Operating Revenues – Nonutility on the unaudited condensed consolidated statements of income for SJI. These pre-tax gains (losses) were $(11.2) million and $(4.6) million for the three months ended September 30, 2018 and 2017, respectively , and $6.0 million and $2.2 million for the nine months ended September 30, 2018 and 2017, respectively . For ETG's and SJG's contracts, the costs or benefits are recoverable through the BGSS clause, subject to BPU approval. As a result, the net unrealized pre-tax gains and losses for these energy-related commodity contracts are included with realized gains and losses in Regulatory Assets or Regulatory Liabilities on the unaudited condensed consolidated balance sheets of SJI (ETG and SJG) and SJG. As of September 30, 2018 and December 31, 2017 , SJI had $4.7 million and $(2.1) million , respectively, and SJG had $5.1 million and $(2.1) million , respectively, of unrealized gains (losses) included in its BGSS related to energy-related commodity contracts. SJI, including SJG, has also entered into interest rate derivatives to hedge exposure to increasing interest rates and the impact of those rates on cash flows of variable-rate debt. These interest rate derivatives, some of which had been designated as hedging instruments under GAAP, are measured at fair value and recorded in Derivatives - Other on the unaudited condensed consolidated balance sheets. Hedge accounting has been discontinued prospectively for these derivatives. As a result, any unrealized gains and losses on these derivatives, that were previously included in Accumulated Other Comprehensive Loss ("AOCL") on the unaudited condensed consolidated balance sheets, are being recorded in earnings over the remaining life of the derivative. In March 2017, SJI entered into a new interest rate derivative and amended the existing interest rate derivative linked to unrealized losses previously recorded in AOCL. SJI reclassified $2.4 million of pre-tax unrealized loss in AOCL to Interest Charges on the unaudited condensed consolidated statements of income as a result of the prior hedged transactions being deemed probable of not occurring. For SJI and SJG interest rate derivatives, the fair value represents the amount SJI and SJG would have to pay the counterparty to terminate these contracts as of those dates. As of September 30, 2018 , SJI’s active interest rate swaps were as follows: Notional Amount Fixed Interest Rate Start Date Maturity Obligor $ 20,000,000 3.049% 3/15/2017 3/15/2027 SJI $ 20,000,000 3.049% 3/15/2017 3/15/2027 SJI $ 10,000,000 3.049% 3/15/2017 3/15/2027 SJI $ 12,500,000 3.530% 12/1/2006 2/1/2036 SJG $ 12,500,000 3.430% 12/1/2006 2/1/2036 SJG The unrealized gains and losses on interest rate derivatives that are not designated as cash flow hedges are included in Interest Charges in the condensed consolidated statements of income. However, for selected interest rate derivatives at SJG, management believes that, subject to BPU approval, the market value upon termination can be recovered in rates and, therefore, these unrealized losses have been included in Other Regulatory Assets in the condensed consolidated balance sheets. The fair values of all derivative instruments, as reflected in the condensed consolidated balance sheets as of September 30, 2018 and December 31, 2017 , are as follows (in thousands): SJI (includes SJG and all other consolidated subsidiaries): Derivatives not designated as hedging instruments under GAAP September 30, 2018 December 31, 2017 Assets Liabilities Assets Liabilities Energy-related commodity contracts: Derivatives - Energy Related - Current $ 27,414 $ 23,469 $ 42,139 $ 46,938 Derivatives - Energy Related - Non-Current 8,014 3,997 5,988 6,025 Interest rate contracts: Derivatives - Other - Current — 339 — 748 Derivatives - Other - Noncurrent — 5,125 — 9,622 Total derivatives not designated as hedging instruments under GAAP $ 35,428 $ 32,930 $ 48,127 $ 63,333 Total Derivatives $ 35,428 $ 32,930 $ 48,127 $ 63,333 SJG: Derivatives not designated as hedging instruments under GAAP September 30, 2018 December 31, 2017 Assets Liabilities Assets Liabilities Energy-related commodity contracts: Derivatives – Energy Related – Current $ 7,951 $ 2,804 $ 7,327 $ 9,270 Derivatives – Energy Related – Non-Current 2 68 5 170 Interest rate contracts: Derivatives – Other Current — 291 — 389 Derivatives – Other Noncurrent — 4,751 — 6,639 Total derivatives not designated as hedging instruments under GAAP $ 7,953 $ 7,914 $ 7,332 $ 16,468 Total Derivatives $ 7,953 $ 7,914 $ 7,332 $ 16,468 SJI and SJG enter into derivative contracts with counterparties, some of which are subject to master netting arrangements, which allow net settlements under certain conditions. These derivatives are presented at gross fair values on the condensed consolidated balance sheets. As of September 30, 2018 and December 31, 2017 , information related to these offsetting arrangements were as follows (in thousands): As of September 30, 2018 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 SJI (includes SJG and all other consolidated subsidiaries): Derivatives - Energy Related Assets $ 35,428 $ — $ 35,428 $ (9,872 ) (A) $ — $ 25,556 Derivatives - Energy Related Liabilities $ (27,466 ) $ — $ (27,466 ) $ 9,872 (B) $ 3,070 $ (14,524 ) Derivatives - Other $ (5,464 ) $ — $ (5,464 ) $ — $ — $ (5,464 ) SJG: Derivatives - Energy Related Assets $ 7,953 $ — $ 7,953 $ (287 ) (A) $ — $ 7,666 Derivatives - Energy Related Liabilities $ (2,872 ) $ — $ (2,872 ) $ 287 (B) $ — $ (2,585 ) Derivatives - Other $ (5,042 ) $ — $ (5,042 ) $ — $ — $ (5,042 ) As of December 31, 2017 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 SJI (includes SJG and all other consolidated subsidiaries): Derivatives - Energy Related Assets $ 48,127 $ — $ 48,127 $ (24,849 ) (A) $ — $ 23,278 Derivatives - Energy Related Liabilities $ (52,963 ) $ — $ (52,963 ) $ 24,849 (B) $ 8,832 $ (19,282 ) Derivatives - Other $ (10,370 ) $ — $ (10,370 ) $ — $ — $ (10,370 ) SJG: Derivatives - Energy Related Assets $ 7,332 $ — $ 7,332 $ (208 ) (A) $ — $ 7,124 Derivatives - Energy Related Liabilities $ (9,440 ) $ — $ (9,440 ) $ 208 (B) $ 1,543 $ (7,689 ) Derivatives - Other $ (7,028 ) $ — $ (7,028 ) $ — $ — $ (7,028 ) (A) The balances at September 30, 2018 and December 31, 2017 were related to derivative liabilities which can be net settled against derivative assets. (B) The balances at September 30, 2018 and December 31, 2017 were related to derivative assets which can be net settled against derivative liabilities. The effect of derivative instruments on the condensed consolidated statements of income for the three and nine months ended September 30, 2018 and 2017 are as follows (in thousands): Three Months Ended Nine Months Ended Derivatives in Cash Flow Hedging Relationships under GAAP 2018 2017 2018 2017 SJI (includes SJG and all other consolidated subsidiaries): Interest Rate Contracts: Losses reclassified from AOCL into income (a) $ (11 ) $ (12 ) $ (35 ) $ (2,511 ) SJG: Interest Rate Contracts: Losses reclassified from AOCL into income (a) $ (11 ) $ (12 ) (35 ) (36 ) (a) Included in Interest Charges Three Months Ended Nine Months Ended Derivatives Not Designated as Hedging Instruments under GAAP 2018 2017 2018 2017 SJI (includes SJG and all other consolidated subsidiaries): (Losses) Gains on energy-related commodity contracts (a) $ (11,225 ) $ (4,632 ) $ 5,950 $ 2,200 Gains (Losses) on interest rate contracts (b) 673 52 2,921 (1,332 ) Total $ (10,552 ) $ (4,580 ) $ 8,871 $ 868 (a) Included in Operating Revenues - Nonutility (b) Included in Interest Charges Certain of SJI’s derivative instruments contain provisions that require immediate payment or demand immediate and ongoing collateralization on derivative instruments in net liability positions in the event of a material adverse change in the credit standing of SJI. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a liability position on September 30, 2018 , is $0.7 million . If the credit-risk-related contingent features underlying these agreements were triggered on September 30, 2018 , SJI would have been required to settle the instruments immediately or post collateral to its counterparties of approximately $0.5 million after offsetting asset positions with the same counterparties under master netting arrangements. |
FAIR VALUE OF FINANCIAL ASSETS
FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 Total Level 1 Level 2 Level 3 SJI (includes SJG and all other consolidated subsidiaries): Assets Available-for-Sale Securities (A) $ 36 $ 36 $ — $ — Derivatives – Energy Related Assets (B) 35,428 1,817 10,952 22,659 $ 35,464 $ 1,853 $ 10,952 $ 22,659 SJG: Assets Derivatives – Energy Related Assets (B) $ 7,953 $ 405 $ — $ 7,548 $ 7,953 $ 405 $ — $ 7,548 SJI (includes SJG and all other consolidated subsidiaries): Liabilities Derivatives – Energy Related Liabilities (B) $ 27,466 $ 3,991 $ 11,120 $ 12,355 Derivatives – Other (C) 5,464 — 5,464 — $ 32,930 $ 3,991 $ 16,584 $ 12,355 SJG: Liabilities Derivatives – Energy Related Liabilities (B) $ 2,872 $ 287 $ 1,653 $ 932 Derivatives – Other (C) 5,042 — 5,042 — $ 7,914 $ 287 $ 6,695 $ 932 As of December 31, 2017 Total Level 1 Level 2 Level 3 SJI (includes SJG and all other consolidated subsidiaries): Assets Available-for-Sale Securities (A) $ 36 $ 36 $ — $ — Derivatives – Energy Related Assets (B) 48,127 5,155 21,869 21,103 $ 48,163 $ 5,191 $ 21,869 $ 21,103 SJG: Assets Derivatives – Energy Related Assets (B) $ 7,332 $ 208 $ 230 $ 6,894 $ 7,332 $ 208 $ 230 $ 6,894 SJI (includes SJG and all other consolidated subsidiaries): Liabilities Derivatives – Energy Related Liabilities (B) $ 52,963 $ 10,687 $ 24,283 $ 17,993 Derivatives – Other (C) 10,370 — 10,370 — $ 63,333 $ 10,687 $ 34,653 $ 17,993 SJG: Liabilities Derivatives – Energy Related Liabilities (B) $ 9,440 $ 1,750 $ 2,848 $ 4,842 Derivatives – Other (C) 7,028 — 7,028 — $ 16,468 $ 1,750 $ 9,876 $ 4,842 (A) Available-for-Sale Securities include securities that are traded in active markets and securities that are not traded publicly. The securities traded in active markets are valued using the quoted principal market close prices that are provided by the trustees and are categorized in Level 1 in the fair value hierarchy. (B) Derivatives – Energy Related Assets and Liabilities are traded in both exchange-based and non-exchange-based markets. Exchange-based contracts are valued using unadjusted quoted market sources in active markets and are categorized in Level 1 in the fair value hierarchy. Certain non-exchange-based contracts are valued using indicative price quotations available through brokers or over-the-counter, on-line exchanges and are categorized in Level 2. These price quotations reflect the average of the bid-ask mid-point prices and are obtained from sources that management believes provide the most liquid market. For non-exchange-based derivatives that trade in less liquid markets with limited pricing information, model inputs generally would include both observable and unobservable inputs. In instances where observable data is unavailable, management considers the assumptions that market participants would use in valuing the asset or liability. This includes assumptions about market risks such as liquidity, volatility and contract duration. Such instruments are categorized in Level 3 as the model inputs generally are not observable. Significant Unobservable Inputs - Management uses the discounted cash flow model to value Level 3 physical and financial forward contracts, which calculates mark-to-market valuations based on forward market prices, original transaction prices, volumes, risk-free rate of return and credit spreads. Inputs to the valuation model are reviewed and revised as needed, based on historical information, updated market data, market liquidity and relationships, and changes in third party pricing sources. The validity of the mark-to-market valuations and changes in mark-to-market valuations from period to period are examined and qualified against historical expectations by the risk management function. If any discrepancies are identified during this process, the mark-to-market valuations or the market pricing information is evaluated further and adjusted, if necessary. Level 3 valuation methods for natural gas derivative contracts include utilizing another location in close proximity adjusted for certain pipeline charges to derive a basis value. The significant unobservable inputs used in the fair value measurement of certain natural gas contracts consist of forward prices developed based on industry-standard methodologies. Significant increases (decreases) in these forward prices for purchases of natural gas would result in a directionally similar impact to the fair value measurement and for sales of natural gas would result in a directionally opposite impact to the fair value measurement. Level 3 valuation methods for electric represent the value of the contract marked to the forward wholesale curve, as provided by daily exchange quotes for delivered electricity. The significant unobservable inputs used in the fair value measurement of electric contracts consist of fixed contracted electric load profiles; therefore, no change in unobservable inputs would occur. Unobservable inputs are updated daily using industry-standard techniques. 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 are valued using quoted prices on commonly quoted intervals, which are interpolated for periods different than the quoted intervals, as inputs to a market valuation model. Market inputs can generally be verified and model selection does not involve significant management judgment. The following table provides quantitative information regarding significant unobservable inputs in Level 3 fair value measurements (in thousands): SJI (includes SJG and all other consolidated subsidiaries) : Type Fair Value at September 30, 2018 Valuation Technique Significant Unobservable Input Range [Weighted Average] Assets Liabilities Forward Contract - Natural Gas $13,821 $9,497 Discounted Cash Flow Forward price (per dt) $1.64 - $9.82 [$3.23] (A) Forward Contract - Electric $8,838 $2,858 Discounted Cash Flow Fixed electric load profile (on-peak) 0% - 100.00% [53.88%] (B) Fixed electric load profile (off-peak) 0.00% - 100.00% [46.12%] (B) Type Fair Value at December 31, 2017 Valuation Technique Significant Unobservable Input Range [Weighted Average] Assets Liabilities Forward Contract - Natural Gas $13,519 $15,686 Discounted Cash Flow Forward price (per dt) $1.79 - $12.09 [$3.01] (A) Forward Contract - Electric $7,584 $2,307 Discounted Cash Flow Fixed electric load profile (on-peak) 36.36% - 100.00% [53.39%] (B) Fixed electric load profile (off-peak) 0.00% - 63.64% [46.61%] (B) SJG: Type Fair Value at September 30, 2018 Valuation Technique Significant Unobservable Input Range Assets Liabilities Forward Contract - Natural Gas $ 7,548 $ 932 Discounted Cash Flow Forward price (per dt) $2.67- $7.07 [$4.80] (A) Type Fair Value at December 31, 2017 Valuation Technique Significant Unobservable Input Range Assets Liabilities Forward Contract - Natural Gas $ 6,894 $ 4,842 Discounted Cash Flow Forward price (per dt) $2.42 - $6.67 [$5.25] (A) (A) Represents the range, along with the weighted average, of forward prices for the sale and purchase of natural gas. (B) Represents the range, along with the weighted average, of the percentage of contracted usage that is loaded during on-peak hours versus off-peak. The changes in fair value measurements of Derivatives – Energy Related Assets and Liabilities for the three and nine months ended September 30, 2018 and 2017 , using significant unobservable inputs (Level 3), are as follows (in thousands): Three Months Ended Nine Months Ended SJI (includes SJG and all other consolidated subsidiaries): Balance at beginning of period $ 18,361 $ 3,110 Other Changes in Fair Value from Continuing and New Contracts, Net (4,426 ) 5,778 Settlements (3,631 ) 1,416 Balance at end of period $ 10,304 $ 10,304 SJG: Balance at beginning of period $ 5,997 $ 2,052 Other Changes in Fair Value from Continuing and New Contracts, Net 619 6,616 Settlements — (2,052 ) Balance at end of period $ 6,616 $ 6,616 Three Months Ended Nine Months Ended SJI (includes SJG and all other consolidated subsidiaries): Balance at beginning of period $ 17,401 $ 9,035 Other Changes in Fair Value from Continuing and New Contracts, Net 1,352 8,346 Transfers out of Level 3 (A) (206 ) (954 ) Settlements (4,781 ) (2,661 ) Balance at end of period $ 13,766 $ 13,766 SJG: Balance at beginning of period $ 6,933 $ 926 Other Changes in Fair Value from Continuing and New Contracts, Net (1,603 ) 5,330 Transfers out of Level 3 (A) (206 ) (206 ) Settlements — (926 ) Balance at end of period $ 5,124 $ 5,124 Total gains (losses) included in earnings for SJI for the three and nine months ended September 30, 2018 that are attributable to the change in unrealized gains (losses) relating to those assets and liabilities included in Level 3 still held as of September 30, 2018 , are $(4.4) million and $5.8 million , respectively. These gains (losses) are included in Operating Revenues-Nonutility on the condensed consolidated statements of income. |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Sep. 30, 2018 | |
Long-term Debt, Unclassified [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT: In January 2018, SJI issued the following Medium Term Notes (MTN's): (a) $25.0 million aggregate principal amount of 3.32% Senior Notes, Series 2017A-2, due January 2025 and (b) $25.0 million aggregate principal amount of 3.56% Senior Notes, Series 2017B-2, due January 2028. In April 2018, SJI entered into a Note Purchase Agreement (NPA) that provides for the issuance by the Company of an aggregate of $250.0 million of senior unsecured notes. During the second quarter of 2018, the Company issued these senior unsecured notes as follows: (a) $90.0 million aggregate principal amount of 3.18% Senior Notes, Series 2018A, due April 2021; (b) $80.0 million aggregate principal amount of 3.82% Senior Notes, Series 2018B, due 2028; and (c) $80.0 million aggregate principal amount of 3.92% Senior Notes, Series 2018C, due 2030. In April 2018, SJI completed a public offering of Equity Units for gross proceeds of $287.5 million (see Note 4). As of September 30, 2018 , these Equity Units were not converted into equity; as such, the net proceeds, after amortization of the underwriting discounts, of $279.1 million are recorded as Long-Term Debt on the condensed consolidated balance sheets. On June 20, 2018, SJI issued an aggregate of $475.0 million of Floating Rate Senior Notes, Series 2018D, due 2019 on the one-year anniversary of the date of initial issuance. These notes will be repaid using the proceeds of the various contemplated asset sales or refinanced. On June 26, 2018, ETG (Borrower) and SJI (Guarantor) entered into a $530.0 million , 364 -day term loan credit agreement with several lenders. SJI guaranteed this facility until the closing of the Acquisition (see Notes 1 and 17). On June 28, 2018, the lenders funded the term loan facility. At the election of the Company, the term loans will bear interest at a variable base rate or a variable LIBOR. The facility contains among others, a financial covenant, limiting the ratio of total indebtedness to total capitalization of the Company (as defined in the term loan credit agreement) by no more than 0.70 to 1.0, measured at the end of each fiscal quarter. The Company was in compliance with this covenant at September 30, 2018. The April 2018 and June 2018 debt issuances were used to fund the Acquisition, which closed July 1, 2018 (see Notes 1 and 17). In August 2018, SJG retired $10.0 million of 7.97% MTN's. SJI and SJG did not issue or retire any other long-term debt during the nine months ended September 30, 2018 . |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS: The following table summarizes the changes in SJI's accumulated other comprehensive loss (AOCL) for the three and nine months ended September 30, 2018 (in thousands): Postretirement Liability Adjustment Unrealized Gain (Loss) on Derivatives-Other Unrealized Gain (Loss) on Available-for-Sale Securities Other Comprehensive Income (Loss) of Affiliated Companies Total Balance at July 1, 2018 (a) $ (36,262 ) $ (379 ) $ (10 ) $ (97 ) $ (36,748 ) Other comprehensive income before reclassifications — — — — — Amounts reclassified from AOCL (b) — 8 — — 8 Net current period other comprehensive income — 8 — — 8 Balance at September 30, 2018 (a) $ (36,262 ) $ (371 ) $ (10 ) $ (97 ) $ (36,740 ) Postretirement Liability Adjustment Unrealized Gain (Loss) on Derivatives-Other Unrealized Gain (Loss) on Available-for-Sale Securities Other Comprehensive Income (Loss) of Affiliated Companies Total Balance at January 1, 2018 (a) $ (36,262 ) $ (396 ) $ (10 ) $ (97 ) $ (36,765 ) Other comprehensive income before reclassifications — — — — — Amounts reclassified from AOCL (b) — 25 — — 25 Net current period other comprehensive income — 25 — — 25 Balance at September 30, 2018 (a) $ (36,262 ) $ (371 ) $ (10 ) $ (97 ) $ (36,740 ) (a) Determined using a combined average statutory tax rate of 27% . (b) See table below. The following table provides details about reclassifications out of SJI's AOCL for the three and nine months ended September 30, 2018 (in thousands): Components of AOCL Amounts Reclassified from AOCL Affected Line Item in the Condensed Consolidated Statements of Income Three Months Ended Nine Months Ended Unrealized Loss on Derivatives-Other - interest rate contracts designated as cash flow hedges $ 11 $ 35 Interest Charges Income Taxes (3 ) (10 ) Income Taxes (a) Losses from reclassifications for the period net of tax $ 8 $ 25 (a) Determined using a combined average statutory tax rate of 27% . The following table summarizes the changes in SJG's AOCL for the three and nine months ended September 30, 2018 (in thousands): Postretirement Liability Adjustment Unrealized Gain (Loss) on Derivatives-Other Total Balance at July 1, 2018 (a) $ (25,507 ) $ (473 ) $ (25,980 ) Other comprehensive loss before reclassifications — — — Amounts reclassified from AOCL (b) — 8 8 Net current period other comprehensive income — 8 8 Balance at September 30, 2018 (a) $ (25,507 ) $ (465 ) $ (25,972 ) Postretirement Liability Adjustment Unrealized Gain (Loss) on Derivatives-Other Total Balance at January 1, 2018 (a) $ (25,507 ) $ (490 ) $ (25,997 ) Other comprehensive loss before reclassifications — — — Amounts reclassified from AOCL (b) — 25 25 Net current period other comprehensive income (loss) — 25 25 Balance at September 30, 2018 (a) $ (25,507 ) $ (465 ) $ (25,972 ) (a) Determined using a combined average statutory tax rate of 27% . (b) See table below. The reclassifications out of SJG's AOCL during the three and nine months ended September 30, 2018 are as follows (in thousands): Components of AOCL Amounts Reclassified from AOCL Affected Line Item in the Condensed Statements of Income Three Months Ended Nine Months Ended Unrealized Loss in on Derivatives - Other - Interest Rate Contracts designated as cash flow hedges $ 11 $ 35 Interest Charges Income Taxes (3 ) (10 ) Income Taxes (a) Losses from reclassifications for the period net of tax $ 8 $ 25 (a) Determined using a combined average statutory tax rate of 27% . |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE: At contract inception, SJI and SJG assess the goods and services promised in all of its contracts with customers, and identifies a performance obligation for each promise to transfer to a customer a distinct good or service. As applicable for each revenue stream and customer contract type, SJI and SJG follow two approaches: • SJI and SJG have elected the Practical Expedient in ASC 606 for recognizing revenue on contracts with customers on a portfolio of performance obligations with similar characteristics, as we reasonably expect the effects of applying the guidance to the portfolio would not differ materially from applying it to individual contracts. • SJI and SJG apply the accounting guidance for recognizing revenue on contracts with customers on a series of distinct goods and services as one performance obligation, as long as the distinct goods and services are part of a series that are substantially the same and satisfied over time, and the same method would be used to measure progress towards satisfaction of the performance obligation. All performance obligations noted below under "Revenue Recognized Over Time" apply this guidance. Below is a listing of all performance obligations that arise from contracts with customers, along with details on the satisfaction of each performance obligation, the significant payment terms, and the nature of the goods and services being transferred: Revenue Recognized Over Time: Reportable Segment Performance Obligation Description SJG Utility Operations; ETG Gas Utility Operations; ELK Gas Utility Operations; Wholesale Energy Operations; Retail Gas and Other Operations Natural Gas SJG, ETG and ELK sell natural gas to residential, commercial and industrial customers, and price is based on regulated tariff rates which are established by the BPU or the MPSC, as applicable. There is an implied contract with a customer for the purchase, delivery, and sale of gas, and the customer is billed monthly, with payment due within 30 days. SJRG sells natural gas to commercial customers at either a fixed quantity or at variable quantities based on a customer's needs. Payment is due on the 25th of each month for the previous month's deliveries. SJE sells natural gas to commercial, industrial and residential customers at fixed prices throughout the life of the contract, with the customer billed monthly and payment due within 30 days. For all four segments, revenue is currently being recognized over time based upon volumes delivered (i.e., unit of output) or through the passage of time ratably as the customer uses natural gas, which represents satisfaction of the performance obligation. SJG Utility Operations; ETG Gas Utility Operations; ELK Gas Utility Operations; Wholesale Energy Operations Pipeline transportation capacity SJG, ETG and SJRG sell pipeline transportation capacity on a wholesale basis to various customers on the interstate pipeline system and transport natural gas purchased directly from producers or suppliers to their customers. These contracts to sell this capacity are at a price, quantity and time period agreed to by both parties determined on a contract by contract basis. Payment is due on the 25th of each month for the previous month's deliveries. Revenue is currently being recognized over time based upon volumes delivered (i.e., unit of output) or through the passage of time ratably coinciding with the delivery of gas and the customer obtaining control, which represents satisfaction of the performance obligation. Wholesale Energy Operations Fuel Management Services SJRG currently has eleven fuel supply management contracts where SJRG has acquired pipeline transportation capacity that allows SJRG to match end users, many of which are merchant generators, with producers looking to find a long-term solution for their supply. Natural gas is sold to the merchant generator daily based on its needs, with payment made either weekly or biweekly depending on the contract. Revenue is currently being recognized over time based upon volumes delivered (i.e., unit of output) coinciding with the delivery of gas and the customer obtaining control, which represents satisfaction of the performance obligation. Retail Electric Operations Electricity SJE sells electricity to commercial, industrial and residential customers at fixed prices throughout the life of the contract, with the customer billed monthly and payment due within 30 days. Revenue is currently being recognized over time based upon volumes delivered (i.e., unit of output) or through the passage of time ratably coinciding with the delivery of electricity and the customer obtaining control, which represents satisfaction of the performance obligation. On-Site Energy Production Solar Marina has several wholly-owned solar projects that earn revenue based on electricity generated. The customer pays monthly as electricity is being generated, with payment due within 30 days. The performance obligation is satisfied as kwh's of energy are generated (i.e., unit of output), which is when revenue is recognized. As disclosed in Note 1, solar assets are in the process of being sold to a third party; however, as of September 30, 2018, all solar assets were still owned by Marina. On-Site Energy Production Marina Thermal Facility Marina has a contract with a casino and resort in Atlantic City, NJ to provide cooling, heating and emergency power. There are multiple performance obligations with this contract, including electric, chilled water and hot water, and each of these are considered distinct and separately identifiable, and they are all priced separately. These performance obligations are satisfied over time ratably as they are used by the customer, who is billed monthly. Payment is due within 30 days. Revenue Recognized at a Point in Time: Reportable Segment Performance Obligation Description On-Site Energy Production SREC's The customer is billed based on a contracted amount of SREC's to be sold, with the price based on the market price of the SRECs at the time of generation. This does not represent variable consideration as the price is known and established at the time of generation and delivery to the customer. The performance obligation is satisfied at the point in time the SREC is delivered to the customer, which is when revenue is recognized. Payment terms are approximately 10 days subsequent to delivery. As disclosed in Note 1, SJI has entered into an agreement to sell SREC's generated to a third party; as a result, no revenue with customers from SREC agreements was recorded for the three months ended September 30, 2018. For all revenue streams listed above, revenue is recognized using the Practical Expedient in ASC 606 which allows an entity to recognize revenue in the amount that is invoiced, as long as that amount corresponds to the value to the customer ("Invoiced Practical Expedient"). SJI's and SJG's contracts with customers discussed above are at prices that are known to the customer at the time of delivery, either through a fixed contractual price or market prices that are established and tied to each delivery. These amounts match the value to the customer as they are purchasing and obtaining the good or service on the same day at the agreed-upon price. This eliminates any variable consideration in transaction price, and as a result revenue is recognized at this price at the time of delivery. SJI and SJG have determined that the above methods provide a faithful depiction of the transfer of goods or services to the customer. For all above performance obligations, SJI's and SJG's efforts are expended throughout the contract based on seasonality and customer needs. Further, for various contracts among each performance obligation, SJI and SJG may have a stand ready obligation to provide goods or services on an as needed basis to the customer. Because the Invoiced Practical Expedient is used for recognizing revenue, SJI and SJG further adopted the Practical Expedient in ASC 606 that allows both company's to not disclose additional information regarding remaining performance obligations. SJI revenues from contracts with customers totaled $314.5 million and $960.3 million for the three and nine months ended September 30, 2018, respectively . SJG revenues from contracts with customers totaled $49.5 million and $307.5 million for the three and nine months ended September 30, 2018, respectively . The SJG balance is a part of the SJG utility operating segment, and is before intercompany eliminations with other SJI entities. Revenues on the condensed consolidated statements of income that are not with contracts with customers consist of (a) revenues from alternative revenue programs at the SJG, ETG and ELK gas utility operating segments, and (b) both utility and nonutility revenue from derivative contracts at the SJG and ETG gas utility, wholesale energy, retail gas and retail electric operating segments. SJI and SJG disaggregate revenue from contracts with customers into customer type and product line. SJI and SJG have determined that disaggregating revenue into these categories achieves the disclosure objective in ASC 606 to depict how the nature, timing and uncertainty of revenue and cash flows are affected by economic factors. Further, disaggregating revenue into these categories is consistent with information regularly reviewed by the CODM in evaluating the financial performance of SJI's operating segments. SJG only operates in the SJG Utility Operations segment. See Note 6 for further information regarding SJI's operating segments. Disaggregated revenues from contracts with customers, by both customer type and product line, are disclosed below, by operating segment, for the three and nine months ended September 30, 2018 (in thousands): Three Months Ended SJG Utility Operations ETG Utility Operations ELK Utility Operations Wholesale Energy Operations Retail Gas and Other Operations Retail Electric Operations On-Site Energy Production Appliance Service Operations Corporate Services and Intersegment Total Customer Type: Residential $ 26,683 $ 16,193 $ 222 $ — $ — $ 9,691 $ — $ 509 $ — $ 53,298 Commercial & Industrial 19,109 11,946 496 173,363 12,487 27,755 15,317 — (4,032 ) 256,441 OSS & Capacity Release 3,066 — — — — — — — — 3,066 Other 658 978 26 — — — — — — 1,662 $ 49,516 $ 29,117 $ 744 $ 173,363 $ 12,487 $ 37,446 $ 15,317 $ 509 $ (4,032 ) $ 314,467 Product Line: Gas $ 49,516 $ 29,117 $ 718 $ 173,363 $ 12,487 $ — $ — $ — $ (1,579 ) $ 263,622 Electric — — — — — 37,446 — — (2,453 ) 34,993 Solar — — — — — — 5,392 — — 5,392 CHP — — — — — — 8,151 — — 8,151 Landfills — — — — — — 1,774 — — 1,774 Other — — 26 — — — — 509 — 535 $ 49,516 $ 29,117 $ 744 $ 173,363 $ 12,487 $ 37,446 $ 15,317 $ 509 $ (4,032 ) $ 314,467 Nine Months Ended SJG Utility Operations ETG Utility Operations ELK Utility Operations Wholesale Energy Operations Retail Gas and Other Operations Retail Electric Operations On-Site Energy Production Appliance Service Operations Corporate Services and Intersegment Total Customer Type: Residential $ 217,927 $ 16,193 $ 222 $ — $ — $ 24,178 $ — $ 1,480 $ — $ 260,000 Commercial & Industrial 78,478 11,946 496 423,585 60,854 72,135 61,208 — (20,508 ) 688,194 OSS & Capacity Release 9,242 — — — — — — — — 9,242 Other 1,860 978 26 — — — — — — 2,864 $ 307,507 $ 29,117 $ 744 $ 423,585 $ 60,854 $ 96,313 $ 61,208 $ 1,480 $ (20,508 ) $ 960,300 Product Line: Gas $ 307,507 $ 29,117 $ 718 $ 423,585 $ 60,854 $ — $ — $ — $ (8,067 ) $ 813,714 Electric — — — — — 96,313 — — (6,134 ) 90,179 Solar — — — — — — 33,133 — (6,307 ) 26,826 CHP — — — — — — 23,165 — — 23,165 Landfills — — — — — — 4,910 — — 4,910 Other — — 26 — — — — 1,480 — 1,506 $ 307,507 $ 29,117 $ 744 $ 423,585 $ 60,854 $ 96,313 $ 61,208 $ 1,480 $ (20,508 ) $ 960,300 The following table provides information about SJI's and SJG's receivables and unbilled revenue from contracts with customers (in thousands): Accounts Receivable (1) Unbilled Revenue (2) SJI (including SJG and all other consolidated subsidiaries): Beginning balance as of 1/1/18 $ 202,379 $ 73,377 Ending balance as of 9/30/18 220,561 29,313 Increase (Decrease) $ 18,182 $ (44,064 ) SJG: Beginning balance as of 1/1/18 $ 78,571 $ 54,980 Ending balance as of 9/30/18 72,010 7,995 Increase (Decrease) $ (6,561 ) $ (46,985 ) (1) Included in Accounts Receivable in the condensed consolidated balance sheets. A receivable is SJI's and SJG's right to consideration that is unconditional, as only the passage of time is required before payment is expected from the customer. All of SJI's and SJG's Accounts Receivable arise from contracts with customers. (2) Included in Unbilled Revenues in the condensed consolidated balance sheets. All unbilled revenue for SJI and SJG arises from contracts with customers. Unbilled revenue relates to SJI's and SJG's right to receive payment for commodity delivered but not yet billed. This represents contract assets that arise from contracts with customers, which is defined in ASC 606 as the right to payment in exchange for goods already transferred to a customer, excluding any amounts presented as a receivable. The unbilled revenue is transferred to accounts receivable when billing occurs and the rights to collection become unconditional. The change in unbilled revenues for the nine months ended September 30, 2018 is due primarily to the timing difference between SJI and SJG delivering the commodity to the customer and the customer actually receiving the bill for payment. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | BUSINESS COMBINATION: On July 1, 2018, the Company completed the previously announced acquisitions of ETG and ELK from Pivotal Utility Holdings, Inc., a subsidiary of Southern Company Gas (collectively, the "Acquisition"). The Company completed the Acquisition for total consideration of $1.74 billion in cash, inclusive of $40.4 million of certain net working capital adjustments. Of the total, $1.73 billion relates to the acquisition of ETG, while $11.0 million relates to the acquisition of the ELK. In the second quarter of 2018, the Company completed public equity offerings and issued long-term debt to help fund the Acquisition (see Notes 4 and 14, respectively). The Acquisition supports the Company’s strategy of earnings growth derived from high-quality, regulated utilities. Further, the Acquisition expands the Company’s customer base in the natural gas industry, which drives efficiencies by providing a greater operating scale. Preliminary purchase price allocations The Acquisition was accounted for as a business combination using the acquisition method of accounting in accordance with GAAP, which includes GAAP for regulated operations. Under the acquisition method of accounting, the total estimated purchase price of an acquisition is allocated to the net assets based on their estimated fair values. ETG's and ELK's regulated natural gas distribution operations are subject to rate-setting authorities of the BPU and the MPSC, respectively, which includes provisions in place that provide revenues to recover costs of service, including a carrying charge on most net assets and liabilities. Given the regulatory environment under which ETG and ELK operate, the historical book value of the assets acquired and liabilities assumed approximate fair value. The Company has not finalized its valuation of certain assets and liabilities in connection with the Acquisition. As such, the estimated measurements recorded to date are subject to change and these changes, if any, could be material. Any changes will be recorded as adjustments to the fair value of those assets and liabilities and residual amounts will be allocated to goodwill. The final valuation adjustments may also require adjustment to the consolidated statements of operations and cash flows. The final determination of these fair values will be completed as soon as possible but no later than one year from the Acquisition date. The preliminary purchase price for the Acquisition has been allocated to the assets acquired and liabilities assumed as of the acquisition date and is as follows: (in thousands) ETG and ELK Property, Plant and Equipment $ 1,089,071 Accounts Receivable 39,023 Natural Gas in Storage 12,204 Materials and Supplies 345 Other Prepayments and Current Assets 200 Regulatory Assets 137,334 Goodwill 756,247 Total assets acquired 2,034,424 Accounts Payable 13,173 Other Current Liabilities 9,241 Environmental Remediation Costs - Current 7,100 Pension and Other Postretirement Benefits 7,183 Environmental Remediation Costs - Non Current 67,532 Regulatory Liabilities 188,510 Other 1,310 Total liabilities assumed 294,049 Total net assets acquired $ 1,740,375 Goodwill of $756.2 million arising from the Acquisition includes the potential synergies between ETG, ELK and the Company. The goodwill, which is deductible for income tax purposes, was assigned to the ETG and ELK Utility Operations segments. Conditions of approval The Acquisition was subject to regulatory approval from the BPU and the MPSC. Approvals were obtained from both commissions, subject to various conditions. As a requirement for approval of ETG, the BPU mandated that the Company pay $15.0 million to existing ETG customers in the form of a one-time credit. As a requirement for approval of ELK, the MPSC mandated that the Company pay $0.3 million to existing ELK customers in the form of a one-time payout. See Note 7 to the unaudited condensed consolidated financial statements. Other key conditions of approval related to the acquisition include but are not limited to ETG filing a base rate case no later than June 2020. Prior to its next base rate case, ETG will be required to maintain a capital structure that consists of no less than 46% common equity which excludes goodwill. In addition, the Company will need to complete a refinancing related to its $530.0 million 364 -day term loan credit agreement to a long term permanent financing plan within 180 days of the close. Financial information of the acquirees The amount of ETG and ELK revenues included in the Company's unaudited condensed consolidated statement of income for both the three and nine months ended September 30, 2018 is $29.9 million . The amount of ETG and ELK earnings included in the Company's condensed unaudited consolidated statements of income for both the three and nine months ended September 30, 2018 is a net loss of $18.2 million . During the three and nine months ended September 30, 2018, the Company recorded $19.8 million and $47.1 million of acquisition-related expenses directly related to the Acquisition. Included in both periods is $15.3 million payments to customers under "Conditions of approval" above. Supplemental disclosure of pro forma information The following supplemental unaudited pro forma information presents the combined results of SJI, ETG, and ELK as if the Acquisition occurred on January 1, 2017. This supplemental pro forma information has been prepared for comparative purposes and does not purport to be indicative of what would have occurred had the Acquisition been made on January 1, 2017, nor is it indicative of any future results. The pro forma results include adjustments for the financing impact of the Acquisition, along with the tax-related impacts. Other material non-recurring adjustments are reflected in the pro forma and described below: (In thousands, except per share data) Three Months Ended Nine Months Ended 2018 2017 2018 2017 Revenues $ 302,480 $ 258,021 $ 1,240,240 $ 1,106,409 Net (loss) income $ (25,116 ) $ (46,393 ) $ 38,307 $ (33,008 ) Earnings (loss) per share $ (0.29 ) $ (0.54 ) $ 0.46 $ (0.39 ) The supplemental unaudited pro forma net income for the three and nine months ended September 30, 2018 were adjusted to exclude $18.9 million and $32.1 million , respectively, of acquisition-related costs, which includes one-time regulatory approval costs, but excludes financing adjustments and recurring charges. The supplemental unaudited pro forma net income for the nine months ended September 30, 2017 were adjusted to include $46.5 million of acquisition-related costs, which excludes financing adjustments and recurring charges. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS: In October 2018, Marina closed on the sale of two tranches of sites related to the sale of Marina's portfolio of solar energy assets to a third-party buyer (see Note 1). Included in these tranches of sites were the wholly-owned subsidiaries of MCS, NBS and SBS. Total consideration received in October 2018 was approximately $117.8 million , while total consideration received on the transaction to date is $180.3 million , which includes $62.5 million of SREC's received in July 2018 (see Note 1). In October 2018, the Company announced it will offer an early retirement incentive program (ERIP) for eligible non-union employees. The Company also announced that it will eliminate retiree medical benefits for current active non-union employees. Consistent with acquisition approval, SJI was required to develop a plan, in concert with the BPU, to address the remaining aging infrastructure at ETG. In October 2018, ETG filed an IIP petition with the BPU seeking authorization to recover the costs associated with its proposed investment of approximately $518.0 million from 2019-2023 necessary to, among other things, replace its cast-iron and low-pressure vintage main and related services. The design of ETGs IIP includes a request for timely recovery of ETG's investment on a semi-annual basis through a separate Rider recovery mechanism. A final decision from the BPU is anticipated in 2019. In October 2018, SJG entered into an unsecured, $400.0 million term loan credit agreement (the “Credit Agreement”), under which SJG can borrow up to an aggregate of $400.0 million until October 2019. All loans under the Credit Agreement become due and payable in April 2020. Any amounts repaid prior to the maturity date cannot be reborrowed. In October 2018, SJG received approval from the BPU on its EEP and EEP IV programs. See Note 7. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
GENERAL | GENERAL - South Jersey Industries, Inc. (SJI or the Company) provides a variety of energy-related products and services primarily through the following wholly-owned subsidiaries: ▪ SJI Utilities, Inc. (SJIU) is a holding company that owns South Jersey Gas Company ("SJG"), and, as of July 1, 2018, Elizabethtown Gas Company ("ETG") and Elkton Gas Company ("ELK") (see "Acquisition" below). * SJG is a regulated natural gas utility which distributes natural gas in the seven southernmost counties of New Jersey. * ETG is a regulated natural gas utility which distributes natural gas in seven counties in northern and central New Jersey. * ELK is a regulated natural gas utility which distributes natural gas in northern Maryland. ▪ South Jersey Energy Company (SJE) acquires and markets natural gas and electricity to retail end users and provides total energy management services to commercial, industrial and residential customers. ▪ South Jersey Resources Group, LLC (SJRG) markets natural gas storage, commodity and transportation assets along with fuel management services on a wholesale basis in the mid-Atlantic, Appalachian and southern states. ▪ South Jersey Exploration, LLC (SJEX) owns oil, gas and mineral rights in the Marcellus Shale region of Pennsylvania. ▪ Marina Energy, LLC (Marina) develops and operates on-site energy-related projects. It currently operates projects in New Jersey, Maryland, Massachusetts and Vermont. The significant wholly-owned subsidiaries of Marina include: • ACB Energy Partners, LLC (ACB) owns and operates a natural gas fueled combined heating, cooling and power facility located in Atlantic City, New Jersey. • AC Landfill Energy, LLC (ACLE), BC Landfill Energy, LLC (BCLE), SC Landfill Energy, LLC (SCLE) and SX Landfill Energy, LLC (SXLE) own and operate landfill gas-to-energy production facilities in Atlantic, Burlington, Salem and Sussex Counties located in New Jersey. • MCS Energy Partners, LLC (MCS), NBS Energy Partners, LLC (NBS) and SBS Energy Partners, LLC (SBS) own and operate solar-generation sites located in New Jersey. These entities were sold in October 2018 (see Note 18). ▪ South Jersey Energy Service Plus, LLC (SJESP) serviced residential and small commercial HVAC systems, installed small commercial HVAC systems, provided plumbing services and serviced appliances under warranty via a subcontractor arrangement as well as on a time and materials basis. On September 1, 2017, SJESP sold certain assets of its residential and small commercial HVAC and plumbing business to a third party. SJESP continues to receive commissions paid on service contracts from the third party and will do so on a going forward basis. ▪ SJI Midstream, LLC (Midstream) invests in infrastructure and other midstream projects, including a current project to build an approximately 118 -mile natural gas pipeline in Pennsylvania and New Jersey. |
BASIS OF PRESENTATION | BASIS OF PRESENTATION - SJI's condensed consolidated financial statements include the accounts of SJI, its wholly-owned subsidiaries (including SJG) and subsidiaries in which SJI has a controlling interest. All significant intercompany accounts and transactions have been eliminated in consolidation. Beginning as of the date of their acquisition, July 1, 2018, SJI is reporting on a consolidated basis the combined operations of ETG and ELK, along with its other wholly-owned and controlled subsidiaries. As permitted by the rules and regulations of the Securities and Exchange Commission (SEC), the accompanying unaudited condensed consolidated financial statements of SJI and SJG contain certain condensed financial information and exclude certain footnote disclosures normally included in annual audited consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). These financial statements should be read in conjunction with SJI’s and SJG's Annual Reports on Form 10-K for the year ended December 31, 2017 . In management’s opinion, the unaudited condensed consolidated financial statements of SJI and SJG reflect all normal recurring adjustments needed to fairly present their respective financial positions, operating results and cash flows at the dates and for the periods presented. SJI’s and SJG's businesses are subject to seasonal fluctuations and, accordingly, this interim financial information should not be the basis for estimating the full year’s operating results. |
RECLASSIFICATIONS | Certain reclassifications have been made to SJI's and SJG's prior period unaudited condensed consolidated statements of income to conform to the current period presentation, as follows: • The non-service cost components of net periodic pension and postretirement benefit costs are now included as a reduction to Other Income and Expense, as opposed to being recorded as an Operations Expense, to conform with ASU 2017-07, which is described below under "New Accounting Pronouncements." This caused a reduction to both Operations Expense and Other Income on the unaudited condensed consolidated statements of income for the three and nine months ended September 30, 2017. This also caused a reclassification to SJI's prior period segments disclosure in Note 6 to increase Operating Income within both the Gas Utility Operations and Corporate & Services segments for the three and nine months ended September 30, 2017. • Impairment Charges, which were previously presented as part of Operations Expense, are now presented as a separate line item under Operating Expenses in the unaudited condensed consolidated statements of income. This caused a reduction to Operations Expense for the three and nine months ended September 30, 2017. Certain reclassifications have been made to SJI's prior period segments disclosures to conform to the current period presentation. The activities of SJI Midstream, which were presented in the Corporate & Services segment during the three and nine months ended September 30, 2017, are now separated into the Midstream segment for the same periods in 2018. This caused prior period reclassifications to Interest Charges, Income Taxes and Property Additions in Note 6. Certain reclassifications have been made to SJI's prior period unaudited condensed consolidated balance sheets to conform to the current period presentation. Identifiable Intangible Assets are now recorded in Other Noncurrent Assets as of September 30, 2018, causing a prior period reclassification to the unaudited condensed consolidated balance sheets as of December 31, 2017. |
IMPAIRMENT OF LONG-LIVED ASSETS | IMPAIRMENT OF LONG-LIVED ASSETS - Long-lived assets that are held and used are reviewed for impairment whenever events or changes in circumstances indicate carrying values may not be recoverable. Such reviews are performed in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification (ASC) Topic 360 (ASC 360). An impairment loss is indicated if the total future estimated undiscounted cash flows expected from an asset are less than its carrying value. An impairment charge is measured by the difference between an asset's carrying amount and fair value with the difference recorded within Operating Expenses on the condensed consolidated statements of income. Fair values can be determined by a variety of valuation methods, including third-party appraisals, sales prices of similar assets, and present value techniques. The Transaction described above under "Agreement to Sell Solar Assets" triggered an indicator of impairment in the second quarter 2018 as the purchase price was less than the carrying amount for several of the assets being sold (but not all of them) and, as a result, several assets were considered to be impaired. The Company measured the impairment loss as the difference between the carrying amount of the respective assets and the fair value, which was determined using the purchase price and the expected cash flows from the assets, including potential price reductions resulting from the timing needed to satisfy all required closing conditions. As a result, the Company recorded an impairment charge within the on-site energy production segment of $99.2 million (pre-tax) in Impairment Charges on the unaudited condensed consolidated statements of income during the nine months ended September 30, 2018 , to reduce the carrying amount of several assets to their fair market value. The Company estimated the purchase price with the expectation that all but one of the Projects will satisfy all closing conditions on or before December 31, 2018; the remaining Project is expected to satisfy all closing conditions on or before August 31, 2019. |
GAS EXPLORATION AND DEVELOPMENT | GAS EXPLORATION AND DEVELOPMENT - SJI capitalizes all costs associated with gas property acquisition, exploration and development activities under the full cost method of accounting. Capitalized costs include costs related to unproved properties, which are not amortized until proved reserves are found or it is determined that the unproved properties are impaired. All costs related to unproved properties are reviewed quarterly to determine if impairment has occurred. |
TREASURY STOCK | TREASURY STOCK - SJI uses the par value method of accounting for treasury stock. |
ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION (AFUDC) | ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION (AFUDC) - SJI and SJG record AFUDC, which represents the estimated debt and equity costs of capital funds that are necessary to finance the construction of new regulated facilities. While cash is not realized currently, AFUDC increases the regulated revenue requirement and is included in rate base and recovered over the service life of the asset through a higher rate base and higher depreciation. |
INCOME TAXES | INCOME TAXES - Deferred income taxes are provided for all significant temporary differences between the book and taxable bases of assets and liabilities in accordance with ASC 740 - “Income Taxes.” A valuation allowance is established when it is determined that it is more likely than not that a deferred tax asset will not be realized. On December 22, 2017, the Tax Cuts and Jobs Act ("Tax Reform") was enacted into law, changing various corporate income tax provisions within the Internal Revenue Code. The law became effective January 1, 2018 but was required to be accounted for in the period of enactment, as such SJI adopted the new requirements in the fourth quarter of 2017. SJI and SJG were impacted in several ways as a result of Tax Reform, including provisions related to the permanent reduction in the U.S. federal corporate income tax rate from 35% to 21%, modification of bonus depreciation and changes to the deductibility of certain business-related expenses. The SEC staff issued Staff Accounting Bulletin 118 (SAB 118), which provides guidance on accounting for the tax effects of Tax Reform. SAB 118 provides a measurement period that should not extend beyond one year from the enactment date of Tax Reform for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of Tax Reform for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of Tax Reform is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of Tax Reform. SJI and SJG were able to make reasonable, good faith estimates of certain effects and, therefore, recorded provisional adjustments for the following: the tax rules regarding the appropriate bonus deprecation rate that should be applied to assets placed in service after September 27, 2017, including the information required to compute the applicable depreciable tax basis. Further, Tax Reform is unclear in certain respects and will require interpretations and implementing regulations by the Internal Revenue Service, as well as state tax authorities. Tax Reform could also be subject to potential amendments and technical corrections which could impact the Company’s financial statements. Any required changes to the provisional estimates would result in the recording of regulatory assets or liabilities to the extent such amounts are probable of settlement or recovery through customer rates and a net change to income tax expense for any other amounts. Final adjustments to the provisional amounts are expected to be recorded by the fourth quarter of 2018. The accounting for all other applicable provisions of Tax Reform is considered complete based on the current interpretation. |
BUSINESS COMBINATION | BUSINESS COMBINATION - The Company applies the acquisition method to account for business combinations. The consideration transferred for an acquisition is the fair value of the assets transferred, the liabilities incurred by the acquirer and the equity interests issued by the acquirer. Acquisition related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The excess of the consideration transferred over the fair value of the identifiable net assets acquired is recorded as goodwill (see Note 17). |
GOODWILL | GOODWILL - Goodwill represents future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration paid or transferred over the fair value of identifiable net assets acquired. Goodwill is not amortized, but instead is subject to impairment testing on an annual basis, and between annual tests whenever events or changes in circumstances indicate that the fair value of a reporting unit may be below its carrying amount. No such events have occurred during the three and nine months ended September 30, 2018 . |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS - Other than as described below, no new accounting pronouncements issued or effective during 2018 or 2017 had, or are expected to have, a material impact on the condensed consolidated financial statements of SJI, or the condensed financial statements of SJG. In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASC Topic 606). This ASU supersedes the revenue recognition requirements in FASB ASC 605, Revenue Recognition , and most industry-specific topics. The core principle under this new standard is for an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount reflecting the consideration to which the entity expects to be entitled in exchange for such goods or services, with a five-step model for recognizing and measuring revenue from contracts with customers. The new standard also requires enhanced disclosure regarding the nature, amount, timing and uncertainty of revenues and the related cash flows arising from contracts with customers. In connection with this new standard, the FASB has issued several amendments to ASU 2014-09, as follows: • In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) . This standard improves the implementation guidance on principal versus agent considerations and whether an entity reports revenue on a gross or net basis. • In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing . This standard clarifies identifying performance obligations and the licensing implementation guidance. • In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients . This standard provides additional guidance on (a) the objective of the collectibility criterion, (b) the presentation of sales tax collected from customers, (c) the measurement date of non-cash consideration received, (d) practical expedients in respect of contract modifications and completed contracts at transition, and (e) disclosure of the effects of the accounting change in the period of adoption. • In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers , which amends certain narrow aspects of the guidance, including the disclosure of remaining performance obligations and prior-period performance obligations, as well as other amendments to the guidance on loan guarantee fees, contract costs, refund liabilities, advertising costs and the clarification of certain examples. The new guidance in ASU 2014-09, as well as all amendments discussed above, was effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. On January 1, 2018, SJI and SJG adopted ASU 2014-09 and all amendments, in accordance with the guidance in ASC 606. SJI and SJG adopted the new guidance using the modified retrospective method applied to those contracts that were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with the historic accounting under ASC 605. See Note 16. The methods of recognizing revenue for SJI's and SJG's contracts with customers is the same under ASC 605 and ASC 606, as revenues from contracts that SJI and SJG have with customers are currently recorded as gas or electricity is delivered to the customer, which is consistent with the new guidance under ASC 606. As such, there was no significant impact to revenues for the three and nine months ended September 30, 2018 for SJI or SJG as a result of applying ASC 606, and there was no cumulative catch-up to retained earnings for SJI or SJG under the modified retrospective method for changes in accounting for revenues. Further, there were no significant changes to SJI's or SJG's business processes, systems or internal controls over financial reporting needed to support recognition and disclosure under the new guidance. Some revenue arrangements, such as alternative revenue programs and derivative contracts, are excluded from the scope of ASC 606 and, therefore, will be presented separately from revenues under ASC 606 on SJI and SJG's footnote disclosures (see Note 16). In March 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires lessees to recognize substantially all leases on their balance sheet as a right-of-use asset and corresponding lease liability, including leases currently accounted for as operating leases. The new standard also will result in enhanced quantitative and qualitative disclosures, including significant judgments made by management, to provide greater insight into the extent of revenue and expense recognized and expected to be recognized from existing leases. The accounting for leases by the lessor remains relatively the same. In connection with this new standard, the FASB has issued the following amendments to ASU 2016-02: • In January 2018, the FASB issued an amendment to clarify the application of the new lease guidance to land easements and provided relief concerning adoption efforts for existing land easements that are not accounted for as leases under current GAAP. • In July 2018, the FASB issued ASU 2018-10 and 2018-11, which included a number of technical corrections and improvements to this standard, including an additional option for transition. The guidance initially required a modified retrospective transition method of adoption, under which lessees and lessors were to recognize and measure leases at the beginning of the earliest period presented. The additional, optional transition method allows an entity to initially apply the requirements of the lease standard at the adoption date, and avoid restating the comparative periods. The new guidance in ASU 2016-02, as well as all amendments discussed above, is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Management has formed an implementation team that has completed the process of inventorying all current contracts, including those of newly acquired ETG and ELK, and has determined the population of leases that will be in scope under the new guidance. Management is currently evaluating the impact that adoption of the guidance on these identified leases will have on SJI's and SJG's financial statements.SJI and SJG plan to elect the optional transition method. The Company does not plan to early adopt the new guidance. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The update simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount. The amendments in this update are effective for annual and any interim impairment tests performed in periods beginning after December 31, 2019. Management is currently determining the impact that adoption of this guidance will have on the financial statements of SJI and SJG. In March 2017, the FASB issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU is designed to improve guidance related to the presentation of defined benefit costs in the income statement. In particular, this ASU requires an employer to report the service cost component in the same line item(s) as other compensation costs and requires the other components of net periodic pension and postretirement benefit costs to be separately presented in the unaudited condensed consolidated statements of income outside of operating income. The standard was effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Adoption of this guidance was applied retrospectively and did not have a material impact on the financial statements of SJI or SJG; however, current and prior period presentation on the condensed consolidated statements of income were modified for SJI and SJG to conform to this guidance, as described under “Basis of Presentation” above. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities . This ASU is intended to improve the financial reporting of hedging relationships so that it represents a more faithful portrayal of an entity’s risk management activities (i.e. to help financial statement users understand an entity’s risk exposures and the manner in which hedging strategies are used to manage them), as well as to further simplify the application of the hedge accounting guidance in GAAP. The standard is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods. Management is currently determining the impact that adoption of this guidance will have on the financial statements of SJI and SJG. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income . This ASU allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from Tax Reform. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Reform and will improve the usefulness of information reported to financial statement users. The standard is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. Management is currently determining the impact that adoption of this guidance will have on the financial statements of SJI and SJG. In March 2018, the FASB issued ASU 2018-04, Investments—Debt Securities (Topic 320) and Regulated Operations (Topic 980): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273 (SEC Update) . This ASU incorporates recent SEC guidance which was issued in order to make the relevant interpretive guidance consistent with current authoritative accounting and auditing guidance and SEC rules and regulation. ASU No. 2018-04 was effective upon issuance. Adoption of this guidance did not have an impact on the financial statement results of SJI or SJG. In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . This ASU aligns the accounting for share-based payment awards issued to employees and nonemployees. Under the new guidance, equity-classified share-based payment awards issued to nonemployees will now be measured on the grant date, instead of the previous requirement to remeasure the awards through the performance completion date. For performance conditions, compensation cost associated with the award will be recognized when achievement of the performance condition is probable, rather than upon achievement of the performance condition. The current requirement to reassess the classification (equity or liability) for nonemployee awards upon vesting will be eliminated, except for awards in the form of convertible instruments. The standard is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. Management is currently determining the impact that adoption of this guidance will have on the financial statements of SJI and SJG. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This ASU modifies the disclosure requirements on the timing of liquidation of an investee's assets and the description of measurement uncertainty at the reporting date. Entities are now required to disclose: (1) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements; and (2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. Further, the standard eliminates disclosure requirements with respect to: (1) the transfers between Level 1 and Level 2 of the fair value hierarchy; (2) the policy for timing of transfers between levels; and (3) the valuation process for Level 3 fair value measurements. The standard is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The new disclosure requirement for unrealized gains and losses, the range and weighted average of significant unobservable inputs and the narrative description of measurement uncertainty should be applied prospectively. All other amendments should be applied retrospectively to all periods presented upon their effective date. Management is currently determining the impact that adoption of this guidance will have on the financial statements of SJI and SJG. In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20) Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plan. This ASU eliminates requirements for certain disclosures such as the amount and timing of plan assets expected to be returned to the employer and the amount of future annual benefits covered by insurance contracts. The standard added new disclosures such as for sponsors of the defined benefit plans to provide information relating to the weighted-average interest crediting rate for cash balance plans and other plans with promised interest crediting rates and an explanation for significant gains or losses related to changes in the benefit obligations for the period. The standard is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. Management is currently determining the impact that adoption of this guidance will have on the financial statements of SJI and SJG. In August 2018, the FASB issued ASU 2018-15, Intangibles, Goodwill and Other Internal-Use Software (Topic 350): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. This ASU aligns the requirements for capitalizing implementation costs for hosting arrangements (services) with costs for internal-use software (assets). As a result, certain implementation costs incurred in hosting arrangements will be deferred and amortized. This standard is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. SJI and SJG early adopted this ASU during the third quarter 2018, which resulted in capitalizing implementation costs for hosting arrangements per the new guidance. This did not represent a change to current practices, or to the financial statements of SJI and SJG. |
FAIR VALUE OF FINANCIAL INSTRUMENTS, POLICY | (A) Available-for-Sale Securities include securities that are traded in active markets and securities that are not traded publicly. The securities traded in active markets are valued using the quoted principal market close prices that are provided by the trustees and are categorized in Level 1 in the fair value hierarchy. (B) Derivatives – Energy Related Assets and Liabilities are traded in both exchange-based and non-exchange-based markets. Exchange-based contracts are valued using unadjusted quoted market sources in active markets and are categorized in Level 1 in the fair value hierarchy. Certain non-exchange-based contracts are valued using indicative price quotations available through brokers or over-the-counter, on-line exchanges and are categorized in Level 2. These price quotations reflect the average of the bid-ask mid-point prices and are obtained from sources that management believes provide the most liquid market. For non-exchange-based derivatives that trade in less liquid markets with limited pricing information, model inputs generally would include both observable and unobservable inputs. In instances where observable data is unavailable, management considers the assumptions that market participants would use in valuing the asset or liability. This includes assumptions about market risks such as liquidity, volatility and contract duration. Such instruments are categorized in Level 3 as the model inputs generally are not observable. Significant Unobservable Inputs - Management uses the discounted cash flow model to value Level 3 physical and financial forward contracts, which calculates mark-to-market valuations based on forward market prices, original transaction prices, volumes, risk-free rate of return and credit spreads. Inputs to the valuation model are reviewed and revised as needed, based on historical information, updated market data, market liquidity and relationships, and changes in third party pricing sources. The validity of the mark-to-market valuations and changes in mark-to-market valuations from period to period are examined and qualified against historical expectations by the risk management function. If any discrepancies are identified during this process, the mark-to-market valuations or the market pricing information is evaluated further and adjusted, if necessary. Level 3 valuation methods for natural gas derivative contracts include utilizing another location in close proximity adjusted for certain pipeline charges to derive a basis value. The significant unobservable inputs used in the fair value measurement of certain natural gas contracts consist of forward prices developed based on industry-standard methodologies. Significant increases (decreases) in these forward prices for purchases of natural gas would result in a directionally similar impact to the fair value measurement and for sales of natural gas would result in a directionally opposite impact to the fair value measurement. Level 3 valuation methods for electric represent the value of the contract marked to the forward wholesale curve, as provided by daily exchange quotes for delivered electricity. The significant unobservable inputs used in the fair value measurement of electric contracts consist of fixed contracted electric load profiles; therefore, no change in unobservable inputs would occur. Unobservable inputs are updated daily using industry-standard techniques. 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 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. GAAP establishes a hierarchy that prioritizes fair value measurements based on the types of inputs used for the various valuation techniques. The levels of the hierarchy are described below: • Level 1: Observable inputs, such as quoted prices in active markets for identical assets or liabilities. • Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. • Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. Assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of financial assets and financial liabilities and their placement within the fair value hierarchy. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Asset Managment Agreement Contract Purchase | The total purchase price was allocated as follows (in thousands): Natural Gas in Storage $ 9,685 Intangible Asset 19,200 Profit Sharing - Other Liabilities (17,546 ) Total Consideration $ 11,339 |
STOCK-BASED COMPENSATION PLAN (
STOCK-BASED COMPENSATION PLAN (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of the nonvested restricted stock awards outstanding and the assumptions used to estimate the fair value of the awards | The following table summarizes the nonvested restricted stock awards outstanding for SJI at September 30, 2018 and the assumptions used to estimate the fair value of the awards: Grants Shares Outstanding Fair Value Per Share Expected Volatility Risk-Free Interest Rate Officers & Key Employees - 2016 - TSR 51,587 $ 22.53 18.1 % 1.31 % 2016 - CEGR, Time 65,104 $ 23.52 N/A N/A 2017 - TSR 44,376 $ 32.17 20.8 % 1.47 % 2017 - CEGR, Time 72,992 $ 33.69 N/A N/A 2018 - TSR 61,009 $ 31.05 21.9 % 2.00 % 2018 - CEGR, Time 124,072 $ 31.23 N/A N/A Directors - 2018 26,416 $ 31.16 N/A N/A |
Summary of the total stock-based compensation cost for the period | The following table summarizes the total stock-based compensation cost to SJI for the three and nine months ended September 30, 2018 and 2017 (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Officers & Key Employees $ 549 $ 1,087 $ 2,739 $ 3,274 Directors 206 256 617 767 Total Cost 755 1,343 3,356 4,041 Capitalized (101 ) (96 ) (303 ) (288 ) Net Expense $ 654 $ 1,247 $ 3,053 $ 3,753 |
Summary of information regarding restricted stock award activity during the period excluding accrued dividend equivalents | The following table summarizes information regarding restricted stock award activity for SJI during the nine months ended September 30, 2018 , excluding accrued dividend equivalents: Officers and Other Key Employees Directors Weighted Average Fair Value Nonvested Shares Outstanding, January 1, 2018 342,793 30,394 $ 28.60 Granted 201,858 26,416 $ 31.17 Cancelled/Forfeited (80,610 ) — $ 28.72 Vested (44,901 ) (30,394 ) $ 30.56 Nonvested Shares Outstanding, September 30, 2018 419,140 26,416 $ 29.56 |
AFFILIATIONS, DISCONTINUED OP_2
AFFILIATIONS, DISCONTINUED OPERATIONS AND RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Summary of operating results of discontinued operations | Summarized operating results of the discontinued operations for the three and nine months ended September 30, 2018 and 2017 , were (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Loss before Income Taxes: Sand Mining $ 3 $ (17 ) $ (30 ) $ (49 ) Fuel Oil (57 ) (53 ) (139 ) (139 ) Income Tax Benefits 11 25 34 66 Loss from Discontinued Operations — Net $ (43 ) $ (45 ) $ (135 ) $ (122 ) Earnings Per Common Share from Discontinued Operations — Net: Basic and Diluted $ — $ — $ — $ — |
Summary of related party transactions | A summary of related-party transactions involving SJG, excluding pass-through items, included in SJG's Operating Revenues were as follows (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Operating Revenues/Affiliates: SJRG $ 691 $ 1,210 $ 4,388 $ 3,421 Marina 89 72 281 219 Other 23 21 69 63 Total Operating Revenue/Affiliates $ 803 $ 1,303 $ 4,738 $ 3,703 Related-party transactions involving SJG, excluding pass-through items, included in SJG's Cost of Sales and Operating Expenses were as follows (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Costs of Sales/Affiliates (Excluding depreciation and amortization) SJRG* $ 1,094 $ 1,453 $ 28,525 $ 12,399 Operations Expense/Affiliates: SJI $ 6,148 $ 4,316 $ 19,899 $ 15,354 Millennium 750 717 2,191 2,137 Other (112 ) (173 ) (344 ) (253 ) Total Operations Expense/Affiliates $ 6,786 $ 4,860 $ 21,746 $ 17,238 *As discussed in Note 1 to the Consolidated Financial Statements in Item 8 of SJI’s and SJG's Annual Report on Form 10-K for the year ended December 31, 2017 , revenues and expenses related to the energy trading activities of the wholesale energy operations at SJRG are presented on a net basis in Operating Revenues – Nonutility on the condensed consolidated income statement. |
COMMON STOCK (Tables)
COMMON STOCK (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Schedule of common stock shares issued and outstanding | The following shares were issued and outstanding for SJI: 2018 Beginning Balance, January 1 79,549,080 New Issuances During the Period: Public Equity Offering 5,889,830 Stock-Based Compensation Plan 67,308 Ending Balance, September 30 85,506,218 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Reconciliation of cash and cash equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets that sum to the total of the same such amounts shown in the unaudited condensed consolidated statements of cash flows (in thousands): As of September 30, 2018 Balance Sheet Line Item SJI SJG Cash and Cash Equivalents $ 3,314 $ 1,647 Restricted Investments 10,002 532 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 13,316 $ 2,179 As of December 31, 2017 Balance Sheet Line Item SJI SJG Cash and Cash Equivalents $ 7,819 $ 1,707 Restricted Investments 31,876 2,912 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 39,695 $ 4,619 |
Reconciliation of restricted cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets that sum to the total of the same such amounts shown in the unaudited condensed consolidated statements of cash flows (in thousands): As of September 30, 2018 Balance Sheet Line Item SJI SJG Cash and Cash Equivalents $ 3,314 $ 1,647 Restricted Investments 10,002 532 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 13,316 $ 2,179 As of December 31, 2017 Balance Sheet Line Item SJI SJG Cash and Cash Equivalents $ 7,819 $ 1,707 Restricted Investments 31,876 2,912 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 39,695 $ 4,619 |
SEGMENTS OF BUSINESS (Tables)
SEGMENTS OF BUSINESS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segments of Business | Information about SJI’s operations in different reportable operating segments is presented below (in thousands): Three Months Ended Nine Months Ended 2018 2017 2018 2017 Operating Revenues: SJI Utilities: SJG Utility Operations $ 56,371 $ 66,755 $ 367,631 $ 346,820 ETG Utility Operations 29,117 — 29,117 — ELK Utility Operations 770 — 770 — Subtotal SJI Utilities 86,258 66,755 397,518 346,820 Energy Group: Wholesale Energy Operations 134,867 70,741 392,430 274,667 Retail Gas and Other Operations 18,292 18,156 81,661 76,793 Retail Electric Operations 51,269 45,316 137,966 136,893 Subtotal Energy Group 204,428 134,213 612,057 488,353 Energy Services: On-Site Energy Production 15,317 29,942 61,208 74,689 Appliance Service Operations 509 1,552 1,480 5,190 Subtotal Energy Services 15,826 31,494 62,688 79,879 Corporate and Services 9,126 9,577 33,208 32,186 Subtotal 315,638 242,039 1,105,471 947,238 Intersegment Sales (13,158 ) (14,912 ) (53,716 ) (49,908 ) Total Operating Revenues $ 302,480 $ 227,127 $ 1,051,755 $ 897,330 Three Months Ended Nine Months Ended 2018 2017 2018 2017 Operating (Loss) Income (See Note 1): SJI Utilities: SJG Utility Operations $ (6,827 ) $ (4,049 ) $ 94,417 $ 85,911 ETG Utility Operations (19,808 ) — (19,808 ) — ELK Utility Operations (518 ) — (518 ) — Subtotal SJI Utilities (27,153 ) (4,049 ) 74,091 85,911 Energy Group: Wholesale Energy Operations (11,992 ) (11,346 ) 53,193 (41,163 ) Retail Gas and Other Operations 590 (574 ) (3,509 ) (3,801 ) Retail Electric Operations 557 (344 ) 1,443 2,117 Subtotal Energy Group (10,845 ) (12,264 ) 51,127 (42,847 ) Energy Services: On-Site Energy Production 2,966 (38,351 ) (98,023 ) (35,216 ) Appliance Service Operations (322 ) (392 ) 623 (398 ) Subtotal Energy Services 2,644 (38,743 ) (97,400 ) (35,614 ) Corporate and Services (3,238 ) 979 (17,072 ) 3,952 Total Operating (Loss) Income $ (38,592 ) $ (54,077 ) $ 10,746 $ 11,402 Depreciation and Amortization: SJI Utilities: SJG Utility Operations $ 20,427 $ 17,751 $ 61,016 $ 52,559 ETG Utility Operations 6,403 — 6,403 — ELK Utility Operations 94 — 94 — Subtotal SJI Utilities 26,924 17,751 67,513 52,559 Energy Group: Wholesale Energy Operations 36 31 88 92 Retail Gas and Other Operations 75 80 228 247 Subtotal Energy Group 111 111 316 339 Energy Services: On-Site Energy Production 1,210 11,731 21,805 34,998 Appliance Service Operations — 43 — 153 Subtotal Energy Services 1,210 11,774 21,805 35,151 Corporate and Services 2,651 448 11,816 1,267 Total Depreciation and Amortization $ 30,896 $ 30,084 $ 101,450 $ 89,316 Interest Charges (See Note 1): SJI Utilities SJG Utility Operations $ 7,108 $ 6,437 $ 20,835 $ 18,392 ETG Utility Operations 4,835 — 4,835 — ELK Utility Operations 3 — 3 — Subtotal SJI Utilities 11,946 6,437 25,673 18,392 Energy Group: Wholesale Energy Operations — (162 ) — 3,031 Retail Gas and Other Operations 141 55 392 204 Subtotal Energy Group 141 (107 ) 392 3,235 Energy Services: On-Site Energy Production 4,115 3,549 12,060 13,240 Midstream 541 160 1,446 795 Corporate and Services 15,303 4,895 36,141 14,442 Subtotal 32,046 14,934 75,712 50,104 Intersegment Borrowings (5,512 ) (4,367 ) (15,645 ) (11,813 ) Total Interest Charges $ 26,534 $ 10,567 $ 60,067 $ 38,291 Three Months Ended Nine Months Ended 2018 2017 2018 2017 Income Taxes (See Note 1): SJI Utilities: SJG Utility Operations $ (2,818 ) $ (3,688 ) $ 19,500 $ 27,654 ETG Utility Operations (6,866 ) — (6,866 ) — ELK Utility Operations (143 ) — (143 ) — Subtotal SJI Utilities (9,827 ) (3,688 ) 12,491 27,654 Energy Group: Wholesale Energy Operations (3,036 ) (4,281 ) 13,613 (16,984 ) Retail Gas and Other Operations 144 (225 ) (916 ) (1,265 ) Retail Electric Operations 157 (141 ) 406 866 Subtotal Energy Group (2,735 ) (4,647 ) 13,103 (17,383 ) Energy Services: On-Site Energy Production (331 ) (16,270 ) (27,977 ) (19,120 ) Appliance Service Operations 171 (220 ) 408 (201 ) Subtotal Energy Services (160 ) (16,490 ) (27,569 ) (19,321 ) Midstream (100 ) — (60 ) (85 ) Corporate and Services (3,827 ) 60 (10,171 ) 696 Total Income Taxes $ (16,649 ) $ (24,765 ) $ (12,206 ) $ (8,439 ) Property Additions (See Note 1): SJI Utilities: SJG Utility Operations $ 63,342 $ 59,179 $ 178,727 $ 187,587 ETG Utility Operations 18,637 — 18,637 — ELK Utility Operations 129 — 129 — Subtotal SJI Utilities 82,108 59,179 197,493 187,587 Energy Group: Wholesale Energy Operations — — 32 5 Retail Gas and Other Operations 186 204 495 632 Subtotal Energy Group 186 204 527 637 Energy Services: On-Site Energy Production 696 1,633 2,379 11,899 Appliance Service Operations — — — 260 Subtotal Energy Services 696 1,633 2,379 12,159 Midstream (279 ) 42 31 200 Corporate and Services — 63 11,549 991 Total Property Additions $ 82,711 $ 61,121 $ 211,979 $ 201,574 September 30, 2018 December 31, 2017 Identifiable Assets: SJI Utilities: SJG Utility Operations $ 2,966,384 $ 2,865,974 ETG Utility Operations 2,044,378 — ELK Utility Operations 15,158 — Subtotal SJI Utilities 5,025,920 2,865,974 Energy Group: Wholesale Energy Operations 187,258 208,785 Retail Gas and Other Operations 43,899 56,935 Retail Electric Operations 41,367 34,923 Subtotal Energy Group 272,524 300,643 Energy Services: On-Site Energy Production 477,573 582,587 Appliance Service Operations 28 1,338 Subtotal Energy Services 477,601 583,925 Midstream 70,753 63,112 Discontinued Operations 1,781 1,757 Corporate and Services 621,152 711,038 Intersegment Assets (555,209 ) (661,363 ) Total Identifiable Assets $ 5,914,522 $ 3,865,086 |
REGULATORY ASSETS AND REGULAT_2
REGULATORY ASSETS AND REGULATORY LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Schedule of Regulatory Assets | SJI's and SJG's Regulatory Assets consisted of the following items (in thousands): September 30, 2018 December 31, 2017 SJG ETG ELK Total SJI Total SJI and SJG Environmental Remediation Costs: Expended - Net $ 128,142 $ 7,728 $ — $ 135,870 $ 100,327 Liability for Future Expenditures 151,980 69,833 — 221,813 171,696 Deferred Asset Retirement Obligation Costs 30,448 — — 30,448 42,368 Deferred Pension and Other Postretirement Benefit Costs 78,211 41,706 — 119,917 78,211 Deferred Gas Costs - Net 71,247 — 678 71,925 16,838 Conservation Incentive Program Receivable 1,009 — — 1,009 26,652 Societal Benefit Costs Receivable 2,196 — — 2,196 2,484 Deferred Interest Rate Contracts 5,042 — — 5,042 7,028 Energy Efficiency Tracker 2,914 — — 2,914 2,094 Pipeline Supplier Service Charges 640 — — 640 708 Pipeline Integrity Cost 5,133 — — 5,133 5,280 AFUDC - Equity Related Deferrals 13,646 — — 13,646 12,785 Weather Normalization — 6,253 225 6,478 — Other Regulatory Assets 3,723 8,173 50 11,946 2,753 Total Regulatory Assets $ 494,331 $ 133,693 $ 953 $ 628,977 $ 469,224 |
Schedule of Regulatory Liabilities | SJI's and SJG's Regulatory Liabilities consisted of the following items (in thousands): September 30, 2018 December 31, 2017 SJG ETG ELK Total SJI Total SJI and SJG Excess Plant Removal Costs $ 22,167 $ 47,873 $ 1,379 $ 71,419 $ 23,295 Excess Deferred Taxes 267,866 119,572 1,231 388,669 263,810 Amounts to be Refunded to Customers — 18,227 — 18,227 — Other Regulatory Liabilities — 2,864 333 3,197 — Total Regulatory Liabilities $ 290,033 $ 188,536 $ 2,943 $ 481,512 $ 287,105 |
PENSION AND OTHER POSTRETIREM_2
PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Defined Benefit Plan [Abstract] | |
Schedule of defined benefit plans disclosures | For the three and nine months ended September 30, 2018 and 2017 , net periodic benefit cost related to the employee and officer pension and other postretirement benefit plans for SJI consisted of the following components (in thousands): Pension Benefits Three Months Ended Nine Months Ended 2018 2017 2018 2017 Service Cost $ 1,875 $ 1,247 $ 4,691 $ 3,741 Interest Cost 3,818 2,943 9,642 8,829 Expected Return on Plan Assets (5,256 ) (3,526 ) (12,908 ) (10,579 ) Amortizations: Prior Service Cost 26 33 84 98 Actuarial Loss 2,878 2,570 8,642 7,712 Net Periodic Benefit Cost 3,341 3,267 10,151 9,801 Capitalized Benefit Cost (762 ) (1,143 ) (1,799 ) (3,542 ) Deferred Benefit Cost (594 ) (95 ) (1,719 ) (395 ) Total Net Periodic Benefit Expense $ 1,985 $ 2,029 $ 6,633 $ 5,864 Other Postretirement Benefits Three Months Ended Nine Months Ended 2018 2017 2018 2017 Service Cost $ 251 $ 228 $ 692 $ 683 Interest Cost 644 604 1,720 1,813 Expected Return on Plan Assets (1,129 ) (853 ) (3,012 ) (2,558 ) Amortizations: Prior Service Cost (74 ) (86 ) (246 ) (258 ) Actuarial Loss 223 310 674 928 Net Periodic Benefit Cost (85 ) 203 (172 ) 608 Capitalized Benefit Cost 263 66 258 (35 ) Total Net Periodic Benefit Expense $ 178 $ 269 $ 86 $ 573 |
LINES OF CREDIT (Tables)
LINES OF CREDIT (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Line of Credit Facility [Abstract] | |
Schedule of lines of credit | Credit facilities and available liquidity as of September 30, 2018 were as follows (in thousands): Company Total Facility Usage Available Liquidity Expiration Date SJI: SJI Syndicated Revolving Credit Facility $ 400,000 $ 209,500 (A) $ 190,500 August 2022 Revolving Credit Facility 50,000 50,000 — September 2019 Total SJI 450,000 259,500 190,500 SJG: Commercial Paper Program/Revolving Credit Facility 200,000 141,000 (B) 59,000 August 2022 Uncommitted Bank Line 10,000 — 10,000 August 2019 Total SJG 210,000 141,000 69,000 ETG/ELK: ETG/ELK Revolving Credit Facility 200,000 27,800 172,200 June 2020 Total $ 860,000 $ 428,300 $ 431,700 (A) Includes letters of credit outstanding in the amount of $6.1 million . (B) Includes letters of credit outstanding in the amount of 0.8 million . |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding derivative contracts | As of September 30, 2018 , SJI and SJG had outstanding derivative contracts as follows (1 MMdts = one million decatherms; 1 MMmWh = one million megawatt hours): SJI Consolidated SJG Derivative contracts intended to limit exposure to market risk to: Expected future purchases of natural gas (in MMdts) 74.5 8.9 Expected future sales of natural gas (in MMdts) 53.8 0.3 Expected future purchases of electricity (in MMmWh) 1.9 — Expected future sales of electricity (in MMmWh) 1.5 — Basis and Index related net purchase (sale) contracts (in MMdts) 87.6 1.1 |
Schedule of notional amounts of outstanding derivative positions | As of September 30, 2018 , SJI’s active interest rate swaps were as follows: Notional Amount Fixed Interest Rate Start Date Maturity Obligor $ 20,000,000 3.049% 3/15/2017 3/15/2027 SJI $ 20,000,000 3.049% 3/15/2017 3/15/2027 SJI $ 10,000,000 3.049% 3/15/2017 3/15/2027 SJI $ 12,500,000 3.530% 12/1/2006 2/1/2036 SJG $ 12,500,000 3.430% 12/1/2006 2/1/2036 SJG |
Fair value of derivative instruments | The fair values of all derivative instruments, as reflected in the condensed consolidated balance sheets as of September 30, 2018 and December 31, 2017 , are as follows (in thousands): SJI (includes SJG and all other consolidated subsidiaries): Derivatives not designated as hedging instruments under GAAP September 30, 2018 December 31, 2017 Assets Liabilities Assets Liabilities Energy-related commodity contracts: Derivatives - Energy Related - Current $ 27,414 $ 23,469 $ 42,139 $ 46,938 Derivatives - Energy Related - Non-Current 8,014 3,997 5,988 6,025 Interest rate contracts: Derivatives - Other - Current — 339 — 748 Derivatives - Other - Noncurrent — 5,125 — 9,622 Total derivatives not designated as hedging instruments under GAAP $ 35,428 $ 32,930 $ 48,127 $ 63,333 Total Derivatives $ 35,428 $ 32,930 $ 48,127 $ 63,333 SJG: Derivatives not designated as hedging instruments under GAAP September 30, 2018 December 31, 2017 Assets Liabilities Assets Liabilities Energy-related commodity contracts: Derivatives – Energy Related – Current $ 7,951 $ 2,804 $ 7,327 $ 9,270 Derivatives – Energy Related – Non-Current 2 68 5 170 Interest rate contracts: Derivatives – Other Current — 291 — 389 Derivatives – Other Noncurrent — 4,751 — 6,639 Total derivatives not designated as hedging instruments under GAAP $ 7,953 $ 7,914 $ 7,332 $ 16,468 Total Derivatives $ 7,953 $ 7,914 $ 7,332 $ 16,468 |
Offsetting assets | As of September 30, 2018 and December 31, 2017 , information related to these offsetting arrangements were as follows (in thousands): As of September 30, 2018 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 SJI (includes SJG and all other consolidated subsidiaries): Derivatives - Energy Related Assets $ 35,428 $ — $ 35,428 $ (9,872 ) (A) $ — $ 25,556 Derivatives - Energy Related Liabilities $ (27,466 ) $ — $ (27,466 ) $ 9,872 (B) $ 3,070 $ (14,524 ) Derivatives - Other $ (5,464 ) $ — $ (5,464 ) $ — $ — $ (5,464 ) SJG: Derivatives - Energy Related Assets $ 7,953 $ — $ 7,953 $ (287 ) (A) $ — $ 7,666 Derivatives - Energy Related Liabilities $ (2,872 ) $ — $ (2,872 ) $ 287 (B) $ — $ (2,585 ) Derivatives - Other $ (5,042 ) $ — $ (5,042 ) $ — $ — $ (5,042 ) As of December 31, 2017 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 SJI (includes SJG and all other consolidated subsidiaries): Derivatives - Energy Related Assets $ 48,127 $ — $ 48,127 $ (24,849 ) (A) $ — $ 23,278 Derivatives - Energy Related Liabilities $ (52,963 ) $ — $ (52,963 ) $ 24,849 (B) $ 8,832 $ (19,282 ) Derivatives - Other $ (10,370 ) $ — $ (10,370 ) $ — $ — $ (10,370 ) SJG: Derivatives - Energy Related Assets $ 7,332 $ — $ 7,332 $ (208 ) (A) $ — $ 7,124 Derivatives - Energy Related Liabilities $ (9,440 ) $ — $ (9,440 ) $ 208 (B) $ 1,543 $ (7,689 ) Derivatives - Other $ (7,028 ) $ — $ (7,028 ) $ — $ — $ (7,028 ) (A) The balances at September 30, 2018 and December 31, 2017 were related to derivative liabilities which can be net settled against derivative assets. (B) The balances at September 30, 2018 and December 31, 2017 were related to derivative assets which can be net settled against derivative liabilities. |
Offsetting liabilities | As of September 30, 2018 and December 31, 2017 , information related to these offsetting arrangements were as follows (in thousands): As of September 30, 2018 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 SJI (includes SJG and all other consolidated subsidiaries): Derivatives - Energy Related Assets $ 35,428 $ — $ 35,428 $ (9,872 ) (A) $ — $ 25,556 Derivatives - Energy Related Liabilities $ (27,466 ) $ — $ (27,466 ) $ 9,872 (B) $ 3,070 $ (14,524 ) Derivatives - Other $ (5,464 ) $ — $ (5,464 ) $ — $ — $ (5,464 ) SJG: Derivatives - Energy Related Assets $ 7,953 $ — $ 7,953 $ (287 ) (A) $ — $ 7,666 Derivatives - Energy Related Liabilities $ (2,872 ) $ — $ (2,872 ) $ 287 (B) $ — $ (2,585 ) Derivatives - Other $ (5,042 ) $ — $ (5,042 ) $ — $ — $ (5,042 ) As of December 31, 2017 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 SJI (includes SJG and all other consolidated subsidiaries): Derivatives - Energy Related Assets $ 48,127 $ — $ 48,127 $ (24,849 ) (A) $ — $ 23,278 Derivatives - Energy Related Liabilities $ (52,963 ) $ — $ (52,963 ) $ 24,849 (B) $ 8,832 $ (19,282 ) Derivatives - Other $ (10,370 ) $ — $ (10,370 ) $ — $ — $ (10,370 ) SJG: Derivatives - Energy Related Assets $ 7,332 $ — $ 7,332 $ (208 ) (A) $ — $ 7,124 Derivatives - Energy Related Liabilities $ (9,440 ) $ — $ (9,440 ) $ 208 (B) $ 1,543 $ (7,689 ) Derivatives - Other $ (7,028 ) $ — $ (7,028 ) $ — $ — $ (7,028 ) (A) The balances at September 30, 2018 and December 31, 2017 were related to derivative liabilities which can be net settled against derivative assets. (B) The balances at September 30, 2018 and December 31, 2017 were related to derivative assets which can be net settled against derivative liabilities. |
Derivatives in cash flow hedging relationships | The effect of derivative instruments on the condensed consolidated statements of income for the three and nine months ended September 30, 2018 and 2017 are as follows (in thousands): Three Months Ended Nine Months Ended Derivatives in Cash Flow Hedging Relationships under GAAP 2018 2017 2018 2017 SJI (includes SJG and all other consolidated subsidiaries): Interest Rate Contracts: Losses reclassified from AOCL into income (a) $ (11 ) $ (12 ) $ (35 ) $ (2,511 ) SJG: Interest Rate Contracts: Losses reclassified from AOCL into income (a) $ (11 ) $ (12 ) (35 ) (36 ) (a) Included in Interest Charges Three Months Ended Nine Months Ended Derivatives Not Designated as Hedging Instruments under GAAP 2018 2017 2018 2017 SJI (includes SJG and all other consolidated subsidiaries): (Losses) Gains on energy-related commodity contracts (a) $ (11,225 ) $ (4,632 ) $ 5,950 $ 2,200 Gains (Losses) on interest rate contracts (b) 673 52 2,921 (1,332 ) Total $ (10,552 ) $ (4,580 ) $ 8,871 $ 868 (a) Included in Operating Revenues - Nonutility (b) Included in Interest Charges |
FAIR VALUE OF FINANCIAL ASSET_2
FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 Total Level 1 Level 2 Level 3 SJI (includes SJG and all other consolidated subsidiaries): Assets Available-for-Sale Securities (A) $ 36 $ 36 $ — $ — Derivatives – Energy Related Assets (B) 35,428 1,817 10,952 22,659 $ 35,464 $ 1,853 $ 10,952 $ 22,659 SJG: Assets Derivatives – Energy Related Assets (B) $ 7,953 $ 405 $ — $ 7,548 $ 7,953 $ 405 $ — $ 7,548 SJI (includes SJG and all other consolidated subsidiaries): Liabilities Derivatives – Energy Related Liabilities (B) $ 27,466 $ 3,991 $ 11,120 $ 12,355 Derivatives – Other (C) 5,464 — 5,464 — $ 32,930 $ 3,991 $ 16,584 $ 12,355 SJG: Liabilities Derivatives – Energy Related Liabilities (B) $ 2,872 $ 287 $ 1,653 $ 932 Derivatives – Other (C) 5,042 — 5,042 — $ 7,914 $ 287 $ 6,695 $ 932 As of December 31, 2017 Total Level 1 Level 2 Level 3 SJI (includes SJG and all other consolidated subsidiaries): Assets Available-for-Sale Securities (A) $ 36 $ 36 $ — $ — Derivatives – Energy Related Assets (B) 48,127 5,155 21,869 21,103 $ 48,163 $ 5,191 $ 21,869 $ 21,103 SJG: Assets Derivatives – Energy Related Assets (B) $ 7,332 $ 208 $ 230 $ 6,894 $ 7,332 $ 208 $ 230 $ 6,894 SJI (includes SJG and all other consolidated subsidiaries): Liabilities Derivatives – Energy Related Liabilities (B) $ 52,963 $ 10,687 $ 24,283 $ 17,993 Derivatives – Other (C) 10,370 — 10,370 — $ 63,333 $ 10,687 $ 34,653 $ 17,993 SJG: Liabilities Derivatives – Energy Related Liabilities (B) $ 9,440 $ 1,750 $ 2,848 $ 4,842 Derivatives – Other (C) 7,028 — 7,028 — $ 16,468 $ 1,750 $ 9,876 $ 4,842 (A) Available-for-Sale Securities include securities that are traded in active markets and securities that are not traded publicly. The securities traded in active markets are valued using the quoted principal market close prices that are provided by the trustees and are categorized in Level 1 in the fair value hierarchy. (B) Derivatives – Energy Related Assets and Liabilities are traded in both exchange-based and non-exchange-based markets. Exchange-based contracts are valued using unadjusted quoted market sources in active markets and are categorized in Level 1 in the fair value hierarchy. Certain non-exchange-based contracts are valued using indicative price quotations available through brokers or over-the-counter, on-line exchanges and are categorized in Level 2. These price quotations reflect the average of the bid-ask mid-point prices and are obtained from sources that management believes provide the most liquid market. For non-exchange-based derivatives that trade in less liquid markets with limited pricing information, model inputs generally would include both observable and unobservable inputs. In instances where observable data is unavailable, management considers the assumptions that market participants would use in valuing the asset or liability. This includes assumptions about market risks such as liquidity, volatility and contract duration. Such instruments are categorized in Level 3 as the model inputs generally are not observable. Significant Unobservable Inputs - Management uses the discounted cash flow model to value Level 3 physical and financial forward contracts, which calculates mark-to-market valuations based on forward market prices, original transaction prices, volumes, risk-free rate of return and credit spreads. Inputs to the valuation model are reviewed and revised as needed, based on historical information, updated market data, market liquidity and relationships, and changes in third party pricing sources. The validity of the mark-to-market valuations and changes in mark-to-market valuations from period to period are examined and qualified against historical expectations by the risk management function. If any discrepancies are identified during this process, the mark-to-market valuations or the market pricing information is evaluated further and adjusted, if necessary. Level 3 valuation methods for natural gas derivative contracts include utilizing another location in close proximity adjusted for certain pipeline charges to derive a basis value. The significant unobservable inputs used in the fair value measurement of certain natural gas contracts consist of forward prices developed based on industry-standard methodologies. Significant increases (decreases) in these forward prices for purchases of natural gas would result in a directionally similar impact to the fair value measurement and for sales of natural gas would result in a directionally opposite impact to the fair value measurement. Level 3 valuation methods for electric represent the value of the contract marked to the forward wholesale curve, as provided by daily exchange quotes for delivered electricity. The significant unobservable inputs used in the fair value measurement of electric contracts consist of fixed contracted electric load profiles; therefore, no change in unobservable inputs would occur. Unobservable inputs are updated daily using industry-standard techniques. 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 are valued using quoted prices on commonly quoted intervals, which are interpolated for periods different than the quoted intervals, as inputs to a market valuation model. Market inputs can generally be verified and model selection does not involve significant management judgment. |
Quantitative information regarding significant unobservable inputs, assets | The following table provides quantitative information regarding significant unobservable inputs in Level 3 fair value measurements (in thousands): SJI (includes SJG and all other consolidated subsidiaries) : Type Fair Value at September 30, 2018 Valuation Technique Significant Unobservable Input Range [Weighted Average] Assets Liabilities Forward Contract - Natural Gas $13,821 $9,497 Discounted Cash Flow Forward price (per dt) $1.64 - $9.82 [$3.23] (A) Forward Contract - Electric $8,838 $2,858 Discounted Cash Flow Fixed electric load profile (on-peak) 0% - 100.00% [53.88%] (B) Fixed electric load profile (off-peak) 0.00% - 100.00% [46.12%] (B) Type Fair Value at December 31, 2017 Valuation Technique Significant Unobservable Input Range [Weighted Average] Assets Liabilities Forward Contract - Natural Gas $13,519 $15,686 Discounted Cash Flow Forward price (per dt) $1.79 - $12.09 [$3.01] (A) Forward Contract - Electric $7,584 $2,307 Discounted Cash Flow Fixed electric load profile (on-peak) 36.36% - 100.00% [53.39%] (B) Fixed electric load profile (off-peak) 0.00% - 63.64% [46.61%] (B) SJG: Type Fair Value at September 30, 2018 Valuation Technique Significant Unobservable Input Range Assets Liabilities Forward Contract - Natural Gas $ 7,548 $ 932 Discounted Cash Flow Forward price (per dt) $2.67- $7.07 [$4.80] (A) Type Fair Value at December 31, 2017 Valuation Technique Significant Unobservable Input Range Assets Liabilities Forward Contract - Natural Gas $ 6,894 $ 4,842 Discounted Cash Flow Forward price (per dt) $2.42 - $6.67 [$5.25] (A) (A) Represents the range, along with the weighted average, of forward prices for the sale and purchase of natural gas. (B) Represents the range, along with the weighted average, of the percentage of contracted usage that is loaded during on-peak hours versus off-peak. |
Quantitative information regarding significant unobservable inputs, liabilities | The following table provides quantitative information regarding significant unobservable inputs in Level 3 fair value measurements (in thousands): SJI (includes SJG and all other consolidated subsidiaries) : Type Fair Value at September 30, 2018 Valuation Technique Significant Unobservable Input Range [Weighted Average] Assets Liabilities Forward Contract - Natural Gas $13,821 $9,497 Discounted Cash Flow Forward price (per dt) $1.64 - $9.82 [$3.23] (A) Forward Contract - Electric $8,838 $2,858 Discounted Cash Flow Fixed electric load profile (on-peak) 0% - 100.00% [53.88%] (B) Fixed electric load profile (off-peak) 0.00% - 100.00% [46.12%] (B) Type Fair Value at December 31, 2017 Valuation Technique Significant Unobservable Input Range [Weighted Average] Assets Liabilities Forward Contract - Natural Gas $13,519 $15,686 Discounted Cash Flow Forward price (per dt) $1.79 - $12.09 [$3.01] (A) Forward Contract - Electric $7,584 $2,307 Discounted Cash Flow Fixed electric load profile (on-peak) 36.36% - 100.00% [53.39%] (B) Fixed electric load profile (off-peak) 0.00% - 63.64% [46.61%] (B) SJG: Type Fair Value at September 30, 2018 Valuation Technique Significant Unobservable Input Range Assets Liabilities Forward Contract - Natural Gas $ 7,548 $ 932 Discounted Cash Flow Forward price (per dt) $2.67- $7.07 [$4.80] (A) Type Fair Value at December 31, 2017 Valuation Technique Significant Unobservable Input Range Assets Liabilities Forward Contract - Natural Gas $ 6,894 $ 4,842 Discounted Cash Flow Forward price (per dt) $2.42 - $6.67 [$5.25] (A) (A) Represents the range, along with the weighted average, of forward prices for the sale and purchase of natural gas. (B) Represents the range, along with the weighted average, of the percentage of contracted usage that is loaded during on-peak hours versus off-peak. |
Changes in fair value using significant unobservable inputs | The changes in fair value measurements of Derivatives – Energy Related Assets and Liabilities for the three and nine months ended September 30, 2018 and 2017 , using significant unobservable inputs (Level 3), are as follows (in thousands): Three Months Ended Nine Months Ended SJI (includes SJG and all other consolidated subsidiaries): Balance at beginning of period $ 18,361 $ 3,110 Other Changes in Fair Value from Continuing and New Contracts, Net (4,426 ) 5,778 Settlements (3,631 ) 1,416 Balance at end of period $ 10,304 $ 10,304 SJG: Balance at beginning of period $ 5,997 $ 2,052 Other Changes in Fair Value from Continuing and New Contracts, Net 619 6,616 Settlements — (2,052 ) Balance at end of period $ 6,616 $ 6,616 Three Months Ended Nine Months Ended SJI (includes SJG and all other consolidated subsidiaries): Balance at beginning of period $ 17,401 $ 9,035 Other Changes in Fair Value from Continuing and New Contracts, Net 1,352 8,346 Transfers out of Level 3 (A) (206 ) (954 ) Settlements (4,781 ) (2,661 ) Balance at end of period $ 13,766 $ 13,766 SJG: Balance at beginning of period $ 6,933 $ 926 Other Changes in Fair Value from Continuing and New Contracts, Net (1,603 ) 5,330 Transfers out of Level 3 (A) (206 ) (206 ) Settlements — (926 ) Balance at end of period $ 5,124 $ 5,124 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Schedule of changes in accumulated other comprehensive loss (AOCL) | The following table summarizes the changes in SJG's AOCL for the three and nine months ended September 30, 2018 (in thousands): Postretirement Liability Adjustment Unrealized Gain (Loss) on Derivatives-Other Total Balance at July 1, 2018 (a) $ (25,507 ) $ (473 ) $ (25,980 ) Other comprehensive loss before reclassifications — — — Amounts reclassified from AOCL (b) — 8 8 Net current period other comprehensive income — 8 8 Balance at September 30, 2018 (a) $ (25,507 ) $ (465 ) $ (25,972 ) Postretirement Liability Adjustment Unrealized Gain (Loss) on Derivatives-Other Total Balance at January 1, 2018 (a) $ (25,507 ) $ (490 ) $ (25,997 ) Other comprehensive loss before reclassifications — — — Amounts reclassified from AOCL (b) — 25 25 Net current period other comprehensive income (loss) — 25 25 Balance at September 30, 2018 (a) $ (25,507 ) $ (465 ) $ (25,972 ) (a) Determined using a combined average statutory tax rate of 27% . (b) See table below. The following table summarizes the changes in SJI's accumulated other comprehensive loss (AOCL) for the three and nine months ended September 30, 2018 (in thousands): Postretirement Liability Adjustment Unrealized Gain (Loss) on Derivatives-Other Unrealized Gain (Loss) on Available-for-Sale Securities Other Comprehensive Income (Loss) of Affiliated Companies Total Balance at July 1, 2018 (a) $ (36,262 ) $ (379 ) $ (10 ) $ (97 ) $ (36,748 ) Other comprehensive income before reclassifications — — — — — Amounts reclassified from AOCL (b) — 8 — — 8 Net current period other comprehensive income — 8 — — 8 Balance at September 30, 2018 (a) $ (36,262 ) $ (371 ) $ (10 ) $ (97 ) $ (36,740 ) Postretirement Liability Adjustment Unrealized Gain (Loss) on Derivatives-Other Unrealized Gain (Loss) on Available-for-Sale Securities Other Comprehensive Income (Loss) of Affiliated Companies Total Balance at January 1, 2018 (a) $ (36,262 ) $ (396 ) $ (10 ) $ (97 ) $ (36,765 ) Other comprehensive income before reclassifications — — — — — Amounts reclassified from AOCL (b) — 25 — — 25 Net current period other comprehensive income — 25 — — 25 Balance at September 30, 2018 (a) $ (36,262 ) $ (371 ) $ (10 ) $ (97 ) $ (36,740 ) (a) Determined using a combined average statutory tax rate of 27% . (b) See table below. |
Reclassifications out of AOCL | The reclassifications out of SJG's AOCL during the three and nine months ended September 30, 2018 are as follows (in thousands): Components of AOCL Amounts Reclassified from AOCL Affected Line Item in the Condensed Statements of Income Three Months Ended Nine Months Ended Unrealized Loss in on Derivatives - Other - Interest Rate Contracts designated as cash flow hedges $ 11 $ 35 Interest Charges Income Taxes (3 ) (10 ) Income Taxes (a) Losses from reclassifications for the period net of tax $ 8 $ 25 (a) Determined using a combined average statutory tax rate of 27% . The following table provides details about reclassifications out of SJI's AOCL for the three and nine months ended September 30, 2018 (in thousands): Components of AOCL Amounts Reclassified from AOCL Affected Line Item in the Condensed Consolidated Statements of Income Three Months Ended Nine Months Ended Unrealized Loss on Derivatives-Other - interest rate contracts designated as cash flow hedges $ 11 $ 35 Interest Charges Income Taxes (3 ) (10 ) Income Taxes (a) Losses from reclassifications for the period net of tax $ 8 $ 25 (a) Determined using a combined average statutory tax rate of 27% . |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | Below is a listing of all performance obligations that arise from contracts with customers, along with details on the satisfaction of each performance obligation, the significant payment terms, and the nature of the goods and services being transferred: Revenue Recognized Over Time: Reportable Segment Performance Obligation Description SJG Utility Operations; ETG Gas Utility Operations; ELK Gas Utility Operations; Wholesale Energy Operations; Retail Gas and Other Operations Natural Gas SJG, ETG and ELK sell natural gas to residential, commercial and industrial customers, and price is based on regulated tariff rates which are established by the BPU or the MPSC, as applicable. There is an implied contract with a customer for the purchase, delivery, and sale of gas, and the customer is billed monthly, with payment due within 30 days. SJRG sells natural gas to commercial customers at either a fixed quantity or at variable quantities based on a customer's needs. Payment is due on the 25th of each month for the previous month's deliveries. SJE sells natural gas to commercial, industrial and residential customers at fixed prices throughout the life of the contract, with the customer billed monthly and payment due within 30 days. For all four segments, revenue is currently being recognized over time based upon volumes delivered (i.e., unit of output) or through the passage of time ratably as the customer uses natural gas, which represents satisfaction of the performance obligation. SJG Utility Operations; ETG Gas Utility Operations; ELK Gas Utility Operations; Wholesale Energy Operations Pipeline transportation capacity SJG, ETG and SJRG sell pipeline transportation capacity on a wholesale basis to various customers on the interstate pipeline system and transport natural gas purchased directly from producers or suppliers to their customers. These contracts to sell this capacity are at a price, quantity and time period agreed to by both parties determined on a contract by contract basis. Payment is due on the 25th of each month for the previous month's deliveries. Revenue is currently being recognized over time based upon volumes delivered (i.e., unit of output) or through the passage of time ratably coinciding with the delivery of gas and the customer obtaining control, which represents satisfaction of the performance obligation. Wholesale Energy Operations Fuel Management Services SJRG currently has eleven fuel supply management contracts where SJRG has acquired pipeline transportation capacity that allows SJRG to match end users, many of which are merchant generators, with producers looking to find a long-term solution for their supply. Natural gas is sold to the merchant generator daily based on its needs, with payment made either weekly or biweekly depending on the contract. Revenue is currently being recognized over time based upon volumes delivered (i.e., unit of output) coinciding with the delivery of gas and the customer obtaining control, which represents satisfaction of the performance obligation. Retail Electric Operations Electricity SJE sells electricity to commercial, industrial and residential customers at fixed prices throughout the life of the contract, with the customer billed monthly and payment due within 30 days. Revenue is currently being recognized over time based upon volumes delivered (i.e., unit of output) or through the passage of time ratably coinciding with the delivery of electricity and the customer obtaining control, which represents satisfaction of the performance obligation. On-Site Energy Production Solar Marina has several wholly-owned solar projects that earn revenue based on electricity generated. The customer pays monthly as electricity is being generated, with payment due within 30 days. The performance obligation is satisfied as kwh's of energy are generated (i.e., unit of output), which is when revenue is recognized. As disclosed in Note 1, solar assets are in the process of being sold to a third party; however, as of September 30, 2018, all solar assets were still owned by Marina. On-Site Energy Production Marina Thermal Facility Marina has a contract with a casino and resort in Atlantic City, NJ to provide cooling, heating and emergency power. There are multiple performance obligations with this contract, including electric, chilled water and hot water, and each of these are considered distinct and separately identifiable, and they are all priced separately. These performance obligations are satisfied over time ratably as they are used by the customer, who is billed monthly. Payment is due within 30 days. Revenue Recognized at a Point in Time: Reportable Segment Performance Obligation Description On-Site Energy Production SREC's The customer is billed based on a contracted amount of SREC's to be sold, with the price based on the market price of the SRECs at the time of generation. This does not represent variable consideration as the price is known and established at the time of generation and delivery to the customer. The performance obligation is satisfied at the point in time the SREC is delivered to the customer, which is when revenue is recognized. Payment terms are approximately 10 days subsequent to delivery. As disclosed in Note 1, SJI has entered into an agreement to sell SREC's generated to a third party; as a result, no revenue with customers from SREC agreements was recorded for the three months ended September 30, 2018. |
Disaggregation of Revenue | Disaggregated revenues from contracts with customers, by both customer type and product line, are disclosed below, by operating segment, for the three and nine months ended September 30, 2018 (in thousands): Three Months Ended SJG Utility Operations ETG Utility Operations ELK Utility Operations Wholesale Energy Operations Retail Gas and Other Operations Retail Electric Operations On-Site Energy Production Appliance Service Operations Corporate Services and Intersegment Total Customer Type: Residential $ 26,683 $ 16,193 $ 222 $ — $ — $ 9,691 $ — $ 509 $ — $ 53,298 Commercial & Industrial 19,109 11,946 496 173,363 12,487 27,755 15,317 — (4,032 ) 256,441 OSS & Capacity Release 3,066 — — — — — — — — 3,066 Other 658 978 26 — — — — — — 1,662 $ 49,516 $ 29,117 $ 744 $ 173,363 $ 12,487 $ 37,446 $ 15,317 $ 509 $ (4,032 ) $ 314,467 Product Line: Gas $ 49,516 $ 29,117 $ 718 $ 173,363 $ 12,487 $ — $ — $ — $ (1,579 ) $ 263,622 Electric — — — — — 37,446 — — (2,453 ) 34,993 Solar — — — — — — 5,392 — — 5,392 CHP — — — — — — 8,151 — — 8,151 Landfills — — — — — — 1,774 — — 1,774 Other — — 26 — — — — 509 — 535 $ 49,516 $ 29,117 $ 744 $ 173,363 $ 12,487 $ 37,446 $ 15,317 $ 509 $ (4,032 ) $ 314,467 Nine Months Ended SJG Utility Operations ETG Utility Operations ELK Utility Operations Wholesale Energy Operations Retail Gas and Other Operations Retail Electric Operations On-Site Energy Production Appliance Service Operations Corporate Services and Intersegment Total Customer Type: Residential $ 217,927 $ 16,193 $ 222 $ — $ — $ 24,178 $ — $ 1,480 $ — $ 260,000 Commercial & Industrial 78,478 11,946 496 423,585 60,854 72,135 61,208 — (20,508 ) 688,194 OSS & Capacity Release 9,242 — — — — — — — — 9,242 Other 1,860 978 26 — — — — — — 2,864 $ 307,507 $ 29,117 $ 744 $ 423,585 $ 60,854 $ 96,313 $ 61,208 $ 1,480 $ (20,508 ) $ 960,300 Product Line: Gas $ 307,507 $ 29,117 $ 718 $ 423,585 $ 60,854 $ — $ — $ — $ (8,067 ) $ 813,714 Electric — — — — — 96,313 — — (6,134 ) 90,179 Solar — — — — — — 33,133 — (6,307 ) 26,826 CHP — — — — — — 23,165 — — 23,165 Landfills — — — — — — 4,910 — — 4,910 Other — — 26 — — — — 1,480 — 1,506 $ 307,507 $ 29,117 $ 744 $ 423,585 $ 60,854 $ 96,313 $ 61,208 $ 1,480 $ (20,508 ) $ 960,300 |
Contract with Customer, Asset and Liability | The following table provides information about SJI's and SJG's receivables and unbilled revenue from contracts with customers (in thousands): Accounts Receivable (1) Unbilled Revenue (2) SJI (including SJG and all other consolidated subsidiaries): Beginning balance as of 1/1/18 $ 202,379 $ 73,377 Ending balance as of 9/30/18 220,561 29,313 Increase (Decrease) $ 18,182 $ (44,064 ) SJG: Beginning balance as of 1/1/18 $ 78,571 $ 54,980 Ending balance as of 9/30/18 72,010 7,995 Increase (Decrease) $ (6,561 ) $ (46,985 ) (1) Included in Accounts Receivable in the condensed consolidated balance sheets. A receivable is SJI's and SJG's right to consideration that is unconditional, as only the passage of time is required before payment is expected from the customer. All of SJI's and SJG's Accounts Receivable arise from contracts with customers. (2) Included in Unbilled Revenues in the condensed consolidated balance sheets. All unbilled revenue for SJI and SJG arises from contracts with customers. Unbilled revenue relates to SJI's and SJG's right to receive payment for commodity delivered but not yet billed. This represents contract assets that arise from contracts with customers, which is defined in ASC 606 as the right to payment in exchange for goods already transferred to a customer, excluding any amounts presented as a receivable. The unbilled revenue is transferred to accounts receivable when billing occurs and the rights to collection become unconditional. The change in unbilled revenues for the nine months ended September 30, 2018 is due primarily to the timing difference between SJI and SJG delivering the commodity to the customer and the customer actually receiving the bill for payment. |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The preliminary purchase price for the Acquisition has been allocated to the assets acquired and liabilities assumed as of the acquisition date and is as follows: (in thousands) ETG and ELK Property, Plant and Equipment $ 1,089,071 Accounts Receivable 39,023 Natural Gas in Storage 12,204 Materials and Supplies 345 Other Prepayments and Current Assets 200 Regulatory Assets 137,334 Goodwill 756,247 Total assets acquired 2,034,424 Accounts Payable 13,173 Other Current Liabilities 9,241 Environmental Remediation Costs - Current 7,100 Pension and Other Postretirement Benefits 7,183 Environmental Remediation Costs - Non Current 67,532 Regulatory Liabilities 188,510 Other 1,310 Total liabilities assumed 294,049 Total net assets acquired $ 1,740,375 |
Business Acquisition, Pro Forma Information | The pro forma results include adjustments for the financing impact of the Acquisition, along with the tax-related impacts. Other material non-recurring adjustments are reflected in the pro forma and described below: (In thousands, except per share data) Three Months Ended Nine Months Ended 2018 2017 2018 2017 Revenues $ 302,480 $ 258,021 $ 1,240,240 $ 1,106,409 Net (loss) income $ (25,116 ) $ (46,393 ) $ 38,307 $ (33,008 ) Earnings (loss) per share $ (0.29 ) $ (0.54 ) $ 0.46 $ (0.39 ) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018USD ($)countymishares | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)countymishares | Sep. 30, 2017USD ($) | Jul. 01, 2018USD ($) | Dec. 31, 2017USD ($)shares | |
Accounting Policies [Abstract] | ||||||
Length of pipeline (in miles) | mi | 118 | 118 | ||||
Public utility assessment | $ 200,000 | |||||
Amount of costs related to interests in proved and unproved properties in Pennsylvania, net of amortization | $ 8,600,000 | $ 8,600,000 | $ 8,700,000 | |||
Shares of treasury stock held (in shares) | shares | 229,222 | 229,222 | 216,642 | |||
Goodwill | $ 759,826,000 | $ 759,826,000 | $ 756,247,000 | $ 3,578,000 | ||
Public Utilities, General Disclosures [Line Items] | ||||||
Impairment charge | 43,900,000 | $ 44,200,000 | ||||
Identified impairments | $ 0 | 0 | $ 0 | 0 | ||
SJG Utility Operations | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Number of counties in which entity operates | county | 7 | 7 | ||||
Impairment charge | $ 0 | $ 0 | $ 0 | $ 0 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | Solar assets | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Amount of impairment to solar assets | $ 99,200,000 | $ 99,200,000 | ||||
Elizabethtown Gas | ||||||
Public Utilities, General Disclosures [Line Items] | ||||||
Number of counties in which entity operates | county | 7 | 7 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business Acquisition (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Sep. 30, 2018 | Sep. 30, 2017 |
Business Acquisition [Line Items] | |||
Payment to acquire assets | $ 200,770 | $ 205,604 | |
ETG Utility Operations | |||
Business Acquisition [Line Items] | |||
Payment to acquire assets | $ 1,700,000 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Solar Asset Sale (Details) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Jul. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Jun. 27, 2018USD ($)siteMW | Dec. 31, 2017USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Impairment charge | $ 43,900,000 | $ 44,200,000 | ||||||
Regulatory assets | $ 469,224,000 | |||||||
SJG Utility Operations | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Impairment charge | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Regulatory assets | $ 494,331,000 | $ 494,331,000 | ||||||
Solar assets | Marina | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Consideration for Solar Renewable Energy Credits (SRECs) | $ 62,500,000 | |||||||
Solar assets | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Regulatory assets | $ 428,900,000 | |||||||
Marina | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Number of solar energy sites | site | 143 | |||||||
Capacity of solar energy projects | MW | 204 | |||||||
Consideration for solar assets | $ 347,900,000 | |||||||
Consideration for Solar Renewable Energy Credits (SRECs) | $ 62,500,000 | |||||||
Ownership interest prior to disposal | 100.00% | |||||||
Potential aggregate downward adjustment | $ 5,400,000 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Jul. 01, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | |||
Goodwill | $ 759,826 | $ 756,247 | $ 3,578 |
Consideration Transferred in Excess of Fair Value of ETG/ELK (see Note 17) | 756,200 | ||
South Jersey Industries Inc | |||
Goodwill [Line Items] | |||
Goodwill | $ 759,800 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Asset Management Agreement (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Sep. 30, 2018 | Sep. 30, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Payments to purchase asset management agreement | $ 11,400 | $ 11,389 | $ 0 |
Minimum annual fee for long-term asset management contract | 4,250 | ||
Natural Gas in Storage | 9,685 | ||
Intangible Asset | 19,200 | 17,900 | |
Profit Sharing - Other Liabilities | 17,546 | $ 18,200 | |
Total Consideration | $ 11,339 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLAN (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2018 | Jun. 30, 2017 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Number of options granted (in shares) | 0 | 0 | ||||||
Number of options outstanding (in shares) | 0 | 0 | ||||||
Vesting period of shares | 3 years | |||||||
Service period of shares | 3 years | |||||||
Fair value per share (in dollars per share) | $ 29.56 | $ 28.60 | $ 29.56 | |||||
Expected volatility, measurement period | 3 years | |||||||
Total Cost | $ 755 | $ 1,343 | $ 3,356 | $ 4,041 | ||||
Capitalized | (101) | (96) | (303) | (288) | ||||
Net Expense | $ 654 | 1,247 | $ 3,053 | 3,753 | ||||
Unrecognized compensation cost of awards granted under the plan | $ 6,300 | |||||||
Weighted average period over which unrecognized compensation cost is to be recognized | 1 year 10 months 24 days | |||||||
Additional disclosures [Abstract] | ||||||||
Weighted average fair value nonvested shares-beginning balance (in dollars per share) | $ 28.60 | |||||||
Weighted average fair value nonvested shares-granted during the period (in dollars per share) | 31.17 | |||||||
Weighted average fair value nonvested shares- forfeited during the period (in dollars per share) | 28.72 | |||||||
Weighted average fair value nonvested shares-vested during the period (in dollars per share) | 30.56 | |||||||
Weighted average fair value nonvested shares-ending balance (in dollars per share) | $ 29.56 | $ 29.56 | ||||||
SJG Utility Operations | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Costs capitalized | 60.00% | |||||||
Officers and Key Employees | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Number of shares granted (in shares) | 201,858 | |||||||
Shares outstanding (in shares) | 419,140 | 342,793 | 419,140 | |||||
Total Cost | $ 549 | 1,087 | $ 2,739 | $ 3,274 | ||||
Number of shares awarded | 67,130 | 65,628 | ||||||
Fair value of shares issued | $ 2,000 | $ 2,200 | ||||||
Restricted stock award activity, excluding accrued dividend equivalents [Roll Forward] | ||||||||
Nonvested shares outstanding, beginning balance (in shares) | 342,793 | |||||||
Granted (in shares) | 201,858 | |||||||
Cancelled/Forfeited (in shares) | (80,610) | |||||||
Vested (in shares) | (44,901) | |||||||
Nonvested shares outstanding, ending balance (in shares) | 419,140 | 419,140 | ||||||
Officers and Key Employees | 2016 - TSR | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Shares outstanding (in shares) | 51,587 | 51,587 | 51,587 | |||||
Fair value per share (in dollars per share) | $ 22.53 | $ 22.53 | $ 22.53 | |||||
Expected volatility | 18.10% | |||||||
Risk-free interest rate | 1.31% | |||||||
Restricted stock award activity, excluding accrued dividend equivalents [Roll Forward] | ||||||||
Nonvested shares outstanding, ending balance (in shares) | 51,587 | 51,587 | ||||||
Additional disclosures [Abstract] | ||||||||
Weighted average fair value nonvested shares-ending balance (in dollars per share) | $ 22.53 | $ 22.53 | ||||||
Officers and Key Employees | 2016 - CEGR, Time | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Shares outstanding (in shares) | 65,104 | 65,104 | 65,104 | |||||
Fair value per share (in dollars per share) | $ 23.52 | $ 23.52 | $ 23.52 | |||||
Restricted stock award activity, excluding accrued dividend equivalents [Roll Forward] | ||||||||
Nonvested shares outstanding, ending balance (in shares) | 65,104 | 65,104 | ||||||
Additional disclosures [Abstract] | ||||||||
Weighted average fair value nonvested shares-ending balance (in dollars per share) | $ 23.52 | $ 23.52 | ||||||
Officers and Key Employees | 2017 - TSR | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Shares outstanding (in shares) | 44,376 | 44,376 | 44,376 | |||||
Fair value per share (in dollars per share) | $ 32.17 | $ 32.17 | $ 32.17 | |||||
Expected volatility | 20.80% | |||||||
Risk-free interest rate | 1.47% | |||||||
Restricted stock award activity, excluding accrued dividend equivalents [Roll Forward] | ||||||||
Nonvested shares outstanding, ending balance (in shares) | 44,376 | 44,376 | ||||||
Additional disclosures [Abstract] | ||||||||
Weighted average fair value nonvested shares-ending balance (in dollars per share) | $ 32.17 | $ 32.17 | ||||||
Officers and Key Employees | 2017 - CEGR, Time | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Shares outstanding (in shares) | 72,992 | 72,992 | 72,992 | |||||
Fair value per share (in dollars per share) | $ 33.69 | $ 33.69 | $ 33.69 | |||||
Restricted stock award activity, excluding accrued dividend equivalents [Roll Forward] | ||||||||
Nonvested shares outstanding, ending balance (in shares) | 72,992 | 72,992 | ||||||
Additional disclosures [Abstract] | ||||||||
Weighted average fair value nonvested shares-ending balance (in dollars per share) | $ 33.69 | $ 33.69 | ||||||
Officers and Key Employees | 2018 - TSR | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Shares outstanding (in shares) | 61,009 | 61,009 | 61,009 | |||||
Fair value per share (in dollars per share) | $ 31.05 | $ 31.05 | $ 31.05 | |||||
Expected volatility | 21.90% | |||||||
Risk-free interest rate | 2.00% | |||||||
Restricted stock award activity, excluding accrued dividend equivalents [Roll Forward] | ||||||||
Nonvested shares outstanding, ending balance (in shares) | 61,009 | 61,009 | ||||||
Additional disclosures [Abstract] | ||||||||
Weighted average fair value nonvested shares-ending balance (in dollars per share) | $ 31.05 | $ 31.05 | ||||||
Officers and Key Employees | 2018 - CEGR, Time | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Shares outstanding (in shares) | 124,072 | 124,072 | 124,072 | |||||
Fair value per share (in dollars per share) | $ 31.23 | $ 31.23 | $ 31.23 | |||||
Restricted stock award activity, excluding accrued dividend equivalents [Roll Forward] | ||||||||
Nonvested shares outstanding, ending balance (in shares) | 124,072 | 124,072 | ||||||
Additional disclosures [Abstract] | ||||||||
Weighted average fair value nonvested shares-ending balance (in dollars per share) | $ 31.23 | $ 31.23 | ||||||
Director | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Number of shares granted (in shares) | 26,416 | 30,394 | ||||||
Vesting period of shares | 12 months | |||||||
Director shares vested | 100.00% | |||||||
Shares outstanding (in shares) | 26,416 | 30,394 | 26,416 | |||||
Total Cost | $ 206 | $ 256 | $ 617 | $ 767 | ||||
Fair value of shares issued | $ 800 | $ 1,000 | ||||||
Restricted stock award activity, excluding accrued dividend equivalents [Roll Forward] | ||||||||
Nonvested shares outstanding, beginning balance (in shares) | 30,394 | |||||||
Granted (in shares) | 26,416 | 30,394 | ||||||
Cancelled/Forfeited (in shares) | 0 | |||||||
Vested (in shares) | (30,394) | |||||||
Nonvested shares outstanding, ending balance (in shares) | 26,416 | 26,416 | ||||||
Director | 2018 | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Shares outstanding (in shares) | 26,416 | 26,416 | 26,416 | |||||
Fair value per share (in dollars per share) | $ 31.16 | $ 31.16 | $ 31.16 | |||||
Restricted stock award activity, excluding accrued dividend equivalents [Roll Forward] | ||||||||
Nonvested shares outstanding, ending balance (in shares) | 26,416 | 26,416 | ||||||
Additional disclosures [Abstract] | ||||||||
Weighted average fair value nonvested shares-ending balance (in dollars per share) | $ 31.16 | $ 31.16 | ||||||
Stock Appreciation Rights | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Number of shares granted (in shares) | 0 | |||||||
Restricted stock award activity, excluding accrued dividend equivalents [Roll Forward] | ||||||||
Granted (in shares) | 0 | |||||||
Restricted Stock | Year one | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Vesting period of shares | 1 year | |||||||
Restricted Stock | Year two | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Vesting period of shares | 2 years | |||||||
Service period of shares | 2 years | |||||||
Restricted Stock | Year three | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Vesting period of shares | 3 years | |||||||
Service period of shares | 3 years | |||||||
Restricted Stock | Officers and Key Employees | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Number of shares granted (in shares) | 201,858 | 167,734 | ||||||
Restricted stock award activity, excluding accrued dividend equivalents [Roll Forward] | ||||||||
Granted (in shares) | 201,858 | 167,734 | ||||||
Restricted Stock | Officers and Key Employees | Minimum | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Percentage of actual amount of shares that ultimately vest of original share units granted | 0.00% | |||||||
Restricted Stock | Officers and Key Employees | Maximum | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Percentage of actual amount of shares that ultimately vest of original share units granted | 200.00% | |||||||
Restricted Stock | South Jersey Gas Company's officers and other key employees | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Number of shares granted (in shares) | 32,924 | 24,001 | ||||||
Net Expense | $ 500 | $ 300 | ||||||
Restricted stock award activity, excluding accrued dividend equivalents [Roll Forward] | ||||||||
Granted (in shares) | 32,924 | 24,001 | ||||||
Time-based Restricted Stock | Minimum | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Return on equity award threshold | 7.00% | |||||||
Time-based Restricted Stock | Officers and Key Employees | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Number of shares granted (in shares) | 67,479 | 53,058 | ||||||
Vesting period of shares | 3 years | 3 years | ||||||
Payout limit | 100.00% | |||||||
Restricted stock award activity, excluding accrued dividend equivalents [Roll Forward] | ||||||||
Granted (in shares) | 67,479 | 53,058 | ||||||
Time-based Restricted Stock | Officers and Key Employees | Year one | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Percentage of shares vested | 33.00% | |||||||
Time-based Restricted Stock | Officers and Key Employees | Year two | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Percentage of shares vested | 33.00% | |||||||
Time-based Restricted Stock | Officers and Key Employees | Year three | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Percentage of shares vested | 33.00% | |||||||
Total Shareholder Return | ||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||||||
Vesting period of shares | 3 years |
AFFILIATIONS, DISCONTINUED OP_3
AFFILIATIONS, DISCONTINUED OPERATIONS AND RELATED PARTY TRANSACTIONS - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($)mi | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)mi | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||||
Length of pipeline (in miles) | mi | 118 | 118 | |||
Investments in unconsolidated affiliates | $ 8.2 | $ 22.4 | |||
Notes receivable - affiliate | $ 16.8 | $ 16.8 | $ 18.2 | ||
Interest accrual on secured notes receivable | 7.50% | 7.50% | |||
Net asset - included in investment in affiliates and other noncurrent liabilities | $ 74.8 | $ 74.8 | |||
Combined equity contributions and the notes receivable - affiliate | $ 91.6 | ||||
Energenic US LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity interest | 50.00% | 50.00% | |||
Millennium Account Services, LLC (Millennium) | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity interest | 50.00% | 50.00% | |||
Potato Creek, LLC (Potato Creek) | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity interest | 30.00% | 30.00% | |||
PennEast Pipeline Company, LLC (PennEast) | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity interest | 20.00% | 20.00% | |||
EnerConnex, LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity interest | 25.00% | 25.00% | |||
Secured Debt | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Notes receivable - affiliate | $ 13.6 | $ 13.6 | |||
Unsecured Debt | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Notes receivable - affiliate | $ 3.2 | $ 3.2 | |||
South Jersey Energy Company | EnergyMark | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity interest | 33.00% | 33.00% | |||
SJRG | EnergyMark | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Total Operating Revenue/Affiliates | $ 7.7 | $ 7.5 | $ 29 | $ 28.1 |
AFFILIATIONS, DISCONTINUED OP_4
AFFILIATIONS, DISCONTINUED OPERATIONS AND RELATED PARTY TRANSACTIONS - Summarized Operating Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Loss Before Income Taxes: | ||||
Income Tax Benefits | $ 11 | $ 25 | $ 34 | $ 66 |
Loss from Discontinued Operations — Net | $ (43) | $ (45) | $ (135) | $ (122) |
Earnings (Loss) Per Common Share from Discontinued Operations - Net | ||||
Basic and Diluted (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Sand Mining | ||||
Loss Before Income Taxes: | ||||
Loss Before Income Taxes | $ 3 | $ (17) | $ (30) | $ (49) |
Fuel Oil | ||||
Loss Before Income Taxes: | ||||
Loss Before Income Taxes | $ (57) | $ (53) | $ (139) | $ (139) |
AFFILIATIONS, DISCONTINUED OP_5
AFFILIATIONS, DISCONTINUED OPERATIONS AND RELATED PARTY TRANSACTIONS - Related Party Transactions (Details) - SJG - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Operating Revenues/Affiliates: | ||||
Total Operating Revenue/Affiliates | $ 803 | $ 1,303 | $ 4,738 | $ 3,703 |
Operations Expense/Affiliates: | ||||
Total Operations Expense/Affiliates | (6,786) | (4,860) | (21,746) | (17,238) |
SJRG | ||||
Operating Revenues/Affiliates: | ||||
Total Operating Revenue/Affiliates | 691 | 1,210 | 4,388 | 3,421 |
Costs of Sales/Affiliates (Excluding depreciation and amortization) | 1,094 | 1,453 | 28,525 | 12,399 |
Marina | ||||
Operating Revenues/Affiliates: | ||||
Total Operating Revenue/Affiliates | 89 | 72 | 281 | 219 |
SJI | ||||
Operations Expense/Affiliates: | ||||
Total Operations Expense/Affiliates | (6,148) | (4,316) | (19,899) | (15,354) |
Millennium | ||||
Operations Expense/Affiliates: | ||||
Total Operations Expense/Affiliates | (750) | (717) | (2,191) | (2,137) |
Other | ||||
Operating Revenues/Affiliates: | ||||
Total Operating Revenue/Affiliates | 23 | 21 | 69 | 63 |
Operations Expense/Affiliates: | ||||
Total Operations Expense/Affiliates | $ 112 | $ 173 | $ 344 | $ 253 |
COMMON STOCK - Summary of Share
COMMON STOCK - Summary of Shares Issued and Outstanding (Details) | 9 Months Ended |
Sep. 30, 2018shares | |
Common Stock [Roll Forward] | |
Beginning balance (in shares) | 79,549,080 |
New Issuances During the Period: | |
Number of shares issued | 5,889,830 |
Stock-Based Compensation Plan (in shares) | 67,308 |
Ending balance (in shares) | 85,506,218 |
COMMON STOCK - Narrative (Detai
COMMON STOCK - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Par value of common stock (in dollars per share) | $ 1.25 | $ 1.25 | |||
Net excess over par value recorded in premium on common stock | $ 133.4 | ||||
Shares of common stock outstanding (in shares) | 85,506,218 | 85,506,218 | 79,549,080 | ||
Incremental shares included in diluted EPS calculation (in shares) | 1,245,564 | 138,346 | 742,313 | 137,003 | |
SJG Utility Operations | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Par value of common stock (in dollars per share) | $ 2.50 | $ 2.50 | |||
Shares of common stock outstanding (in shares) | 2,339,139 | 2,339,139 |
COMMON STOCK - Public Offerings
COMMON STOCK - Public Offerings (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 9 Months Ended |
Apr. 30, 2018 | Sep. 30, 2018 | |
Class of Stock [Line Items] | ||
Par value of common stock (in dollars per share) | $ 1.25 | |
Number of shares issued | 5,889,830 | |
Interest rate | 7.50% | |
Quarterly contract adjustment payments, percent | 3.55% | |
Common Stock | ||
Class of Stock [Line Items] | ||
Shares available for issuance (in shares) | 12,669,491 | |
Par value of common stock (in dollars per share) | $ 1.25 | |
Price per share (in dollars per share) | $ 29.50 | |
Number of shares issued | 5,889,830 | |
Consideration received, gross | $ 173.7 | |
Consideration received | $ 167.7 | |
Capital Units | ||
Class of Stock [Line Items] | ||
Number of shares issued | 5,750,000 | |
Consideration received, gross | $ 287.5 | |
Consideration received | $ 278.9 | |
Corporate Unit, stated value per share (in dollars per share) | $ 50 | |
Over-Allotment Option | Common Stock | ||
Class of Stock [Line Items] | ||
Number of shares issued | 1,652,542 | |
Over-Allotment Option | Capital Units | ||
Class of Stock [Line Items] | ||
Number of shares issued | 750,000 | |
Bank of America, N.A. | Private Placement | Common Stock | ||
Class of Stock [Line Items] | ||
Number of shares held for forward contract | 6,779,661 | |
Series 2018A, Due 2031 | ||
Class of Stock [Line Items] | ||
Interest rate | 3.70% | |
Series 2018A, Due 2031 | Capital Units | ||
Class of Stock [Line Items] | ||
Interest in notes issued, percent | 5.00% |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Margin accounts with selected counterparties to support risk management activities | $ 10,000 | $ 31,600 | ||
Cash and Cash Equivalents | 3,314 | 7,819 | ||
Restricted Investments | 10,002 | 31,876 | ||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | 13,316 | 39,695 | $ 19,326 | $ 31,910 |
Notes Receivable - Affiliate | 13,275 | 13,275 | ||
Energenic US LLC | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Notes Receivable - Affiliate | 13,600 | |||
SJG Utility Operations | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Margin accounts with selected counterparties to support risk management activities | 500 | 2,900 | ||
Cash and Cash Equivalents | 1,647 | 1,707 | ||
Restricted Investments | 532 | 2,912 | ||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | 2,179 | 4,619 | $ 1,295 | $ 1,391 |
SJG Utility Operations | Financing Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying amount of loans, net of unamortized discounts | 5,500 | 7,000 | ||
Imputed interest of loans | $ 600 | $ 700 | ||
SJG Utility Operations | Financing Receivable | Minimum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Initial term of note | 5 years | |||
SJG Utility Operations | Financing Receivable | Maximum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Initial term of note | 10 years |
FINANCIAL INSTRUMENTS - Credit
FINANCIAL INSTRUMENTS - Credit Risk (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2018USD ($)counterparty | Dec. 31, 2017USD ($) | |
Concentration Risk [Line Items] | ||
Number of counterparties | counterparty | 3 | |
Supplier Concentration Risk | Derivatives Energy Related Assets | ||
Concentration Risk [Line Items] | ||
Current and noncurrent derivatives | $ 12.2 | |
Percentage of current and noncurrent derivatives | 34.50% | |
Financing Receivable | SJG Utility Operations | ||
Concentration Risk [Line Items] | ||
Receivable with Imputed Interest, Discount | $ 0.6 | $ 0.7 |
FINANCIAL INSTRUMENTS - Financi
FINANCIAL INSTRUMENTS - Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Estimated fair value of long-term debt, including current maturities | $ 2,790 | $ 1,220 |
Carrying amount of long-term debt, including current maturities | 2,760 | 1,190 |
Unamortized debt issuance costs | 22.9 | 17.4 |
SJG Utility Operations | ||
Debt Instrument [Line Items] | ||
Estimated fair value of long-term debt, including current maturities | 801.5 | 838.5 |
Carrying amount of long-term debt, including current maturities | 812.3 | 821.9 |
Unamortized debt issuance costs | $ 6.8 | $ 7.3 |
SEGMENTS OF BUSINESS (Details)
SEGMENTS OF BUSINESS (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)category | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | $ 302,480 | $ 227,127 | $ 1,051,755 | $ 897,330 | |
Total Operating (Loss) Income | (38,592) | (54,077) | 10,746 | 11,402 | |
Total Depreciation and Amortization | 30,896 | 30,084 | 101,450 | 89,316 | |
Total Interest Charges | 26,534 | 10,567 | 60,067 | 38,291 | |
Total Income Taxes | (16,649) | (24,765) | (12,206) | (8,439) | |
Total Property Additions | 82,711 | 61,121 | 211,979 | 201,574 | |
Total Identifiable Assets | 5,914,522 | 5,914,522 | $ 3,865,086 | ||
Discontinued Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Identifiable Assets | 1,781 | $ 1,781 | 1,757 | ||
Energy Group and Energy Services | |||||
Segment Reporting Information [Line Items] | |||||
Number of operating categories | category | 2 | ||||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 315,638 | 242,039 | $ 1,105,471 | 947,238 | |
Total Interest Charges | 32,046 | 14,934 | 75,712 | 50,104 | |
Operating Segments | SJG Utility Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 86,258 | 66,755 | 397,518 | 346,820 | |
Total Operating (Loss) Income | (27,153) | (4,049) | 74,091 | 85,911 | |
Total Depreciation and Amortization | 26,924 | 17,751 | 67,513 | 52,559 | |
Total Interest Charges | 11,946 | 6,437 | 25,673 | 18,392 | |
Total Income Taxes | (9,827) | (3,688) | 12,491 | 27,654 | |
Total Property Additions | 82,108 | 59,179 | 197,493 | 187,587 | |
Total Identifiable Assets | 5,025,920 | 5,025,920 | 2,865,974 | ||
Operating Segments | Energy Group: | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 204,428 | 134,213 | 612,057 | 488,353 | |
Total Operating (Loss) Income | (10,845) | (12,264) | 51,127 | (42,847) | |
Total Depreciation and Amortization | 111 | 111 | 316 | 339 | |
Total Interest Charges | 141 | (107) | 392 | 3,235 | |
Total Income Taxes | (2,735) | (4,647) | 13,103 | (17,383) | |
Total Property Additions | 186 | 204 | 527 | 637 | |
Total Identifiable Assets | 272,524 | 272,524 | 300,643 | ||
Operating Segments | Energy Group: | Wholesale Energy Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 134,867 | 70,741 | 392,430 | 274,667 | |
Total Operating (Loss) Income | (11,992) | (11,346) | 53,193 | (41,163) | |
Total Depreciation and Amortization | 36 | 31 | 88 | 92 | |
Total Interest Charges | 0 | (162) | 0 | 3,031 | |
Total Income Taxes | (3,036) | (4,281) | 13,613 | (16,984) | |
Total Property Additions | 0 | 0 | 32 | 5 | |
Total Identifiable Assets | 187,258 | 187,258 | 208,785 | ||
Operating Segments | Energy Group: | Retail Gas and Other Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 18,292 | 18,156 | 81,661 | 76,793 | |
Total Operating (Loss) Income | 590 | (574) | (3,509) | (3,801) | |
Total Depreciation and Amortization | 75 | 80 | 228 | 247 | |
Total Interest Charges | 141 | 55 | 392 | 204 | |
Total Income Taxes | 144 | (225) | (916) | (1,265) | |
Total Property Additions | 186 | 204 | 495 | 632 | |
Total Identifiable Assets | 43,899 | 43,899 | 56,935 | ||
Operating Segments | Energy Group: | Retail Electric Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 51,269 | 45,316 | 137,966 | 136,893 | |
Total Operating (Loss) Income | 557 | (344) | 1,443 | 2,117 | |
Total Income Taxes | 157 | (141) | 406 | 866 | |
Total Identifiable Assets | 41,367 | 41,367 | 34,923 | ||
Operating Segments | Energy Services: | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 15,826 | 31,494 | 62,688 | 79,879 | |
Total Operating (Loss) Income | 2,644 | (38,743) | (97,400) | (35,614) | |
Total Depreciation and Amortization | 1,210 | 11,774 | 21,805 | 35,151 | |
Total Income Taxes | (160) | (16,490) | (27,569) | (19,321) | |
Total Property Additions | 696 | 1,633 | 2,379 | 12,159 | |
Total Identifiable Assets | 477,601 | 477,601 | 583,925 | ||
Operating Segments | Energy Services: | On-Site Energy Production | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 15,317 | 29,942 | 61,208 | 74,689 | |
Total Operating (Loss) Income | 2,966 | (38,351) | (98,023) | (35,216) | |
Total Depreciation and Amortization | 1,210 | 11,731 | 21,805 | 34,998 | |
Total Interest Charges | 4,115 | 3,549 | 12,060 | 13,240 | |
Total Income Taxes | (331) | (16,270) | (27,977) | (19,120) | |
Total Property Additions | 696 | 1,633 | 2,379 | 11,899 | |
Total Identifiable Assets | 477,573 | 477,573 | 582,587 | ||
Operating Segments | Energy Services: | Appliance Service Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 509 | 1,552 | 1,480 | 5,190 | |
Total Operating (Loss) Income | (322) | (392) | 623 | (398) | |
Total Depreciation and Amortization | 0 | 43 | 0 | 153 | |
Total Income Taxes | 171 | (220) | 408 | (201) | |
Total Property Additions | 0 | 0 | 0 | 260 | |
Total Identifiable Assets | 28 | 28 | 1,338 | ||
Corporate and Services | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 9,126 | 9,577 | 33,208 | 32,186 | |
Total Operating (Loss) Income | (3,238) | 979 | (17,072) | 3,952 | |
Total Depreciation and Amortization | 2,651 | 448 | 11,816 | 1,267 | |
Total Interest Charges | 15,303 | 4,895 | 36,141 | 14,442 | |
Total Income Taxes | (3,827) | 60 | (10,171) | 696 | |
Total Property Additions | 0 | 63 | 11,549 | 991 | |
Total Identifiable Assets | 621,152 | 621,152 | 711,038 | ||
Intersegment Sales | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | (13,158) | (14,912) | (53,716) | (49,908) | |
Total Interest Charges | (5,512) | (4,367) | (15,645) | (11,813) | |
Total Identifiable Assets | (555,209) | (555,209) | (661,363) | ||
Elizabethtown Gas | Operating Segments | SJG Utility Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 29,117 | 0 | 29,117 | 0 | |
Total Operating (Loss) Income | (19,808) | 0 | (19,808) | 0 | |
Total Depreciation and Amortization | 6,403 | 0 | 6,403 | 0 | |
Total Interest Charges | 4,835 | 0 | 4,835 | 0 | |
Total Income Taxes | (6,866) | 0 | (6,866) | 0 | |
Total Property Additions | 18,637 | 0 | 18,637 | 0 | |
Total Identifiable Assets | 2,044,378 | 2,044,378 | 0 | ||
Elkton Gas | Operating Segments | SJG Utility Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 770 | 0 | 770 | 0 | |
Total Operating (Loss) Income | (518) | 0 | (518) | 0 | |
Total Depreciation and Amortization | 94 | 0 | 94 | 0 | |
Total Interest Charges | 3 | 0 | 3 | 0 | |
Total Income Taxes | (143) | 0 | (143) | 0 | |
Total Property Additions | 129 | 0 | 129 | 0 | |
Total Identifiable Assets | 15,158 | 15,158 | 0 | ||
SJI Midstream, LLC | |||||
Segment Reporting Information [Line Items] | |||||
Total Identifiable Assets | 70,753 | 70,753 | 63,112 | ||
SJI Midstream, LLC | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Total Interest Charges | 541 | 160 | 1,446 | 795 | |
Total Income Taxes | (100) | 0 | (60) | (85) | |
Total Property Additions | (279) | 42 | 31 | 200 | |
SJG Utility Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 56,371 | 66,755 | 367,631 | 346,820 | |
Total Operating (Loss) Income | (6,827) | (4,049) | 94,417 | 85,911 | |
Total Income Taxes | (2,818) | (3,688) | 19,500 | 27,654 | |
Total Identifiable Assets | 2,966,384 | 2,966,384 | 2,865,974 | ||
SJG Utility Operations | Operating Segments | SJG Utility Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 56,371 | 66,755 | 367,631 | 346,820 | |
Total Operating (Loss) Income | (6,827) | (4,049) | 94,417 | 85,911 | |
Total Depreciation and Amortization | 20,427 | 17,751 | 61,016 | 52,559 | |
Total Interest Charges | 7,108 | 6,437 | 20,835 | 18,392 | |
Total Income Taxes | (2,818) | (3,688) | 19,500 | 27,654 | |
Total Property Additions | 63,342 | $ 59,179 | 178,727 | $ 187,587 | |
Total Identifiable Assets | $ 2,966,384 | $ 2,966,384 | $ 2,865,974 |
RATES AND REGULATORY ACTIONS (D
RATES AND REGULATORY ACTIONS (Details) $ in Millions | Jul. 01, 2017USD ($) | Sep. 30, 2018USD ($)mi | Jul. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) |
Schedule of Capitalization [Line Items] | |||||
Credits due to customers under conditions of approval | $ 15.3 | ||||
Length of pipeline (in miles) | mi | 118 | ||||
SJG Utility Operations | |||||
Schedule of Capitalization [Line Items] | |||||
Approved rate increase (decrease) | $ 25.9 | ||||
New Jersey Board of Public Utilities | Elizabethtown Gas | |||||
Schedule of Capitalization [Line Items] | |||||
Approved rate increase (decrease) | $ 10.9 | ||||
Public utilities, requested rate increase (decrease), amount | $ (13.3) | ||||
Public Utilities, Approved Return on Equity, Percentage | 9.60% | ||||
New Jersey Board of Public Utilities | SJG Utility Operations | |||||
Schedule of Capitalization [Line Items] | |||||
Requested term (in years) | 5 years | ||||
Public utilities, requested rate increase (decrease), amount | $ (195.4) | ||||
Accelerated infrastructure replacement program, remaining balance | 60.4 | ||||
Maryland Public Service Commission [Member] | Elizabethtown Gas | |||||
Schedule of Capitalization [Line Items] | |||||
Approved rate increase (decrease) | $ 0.3 | ||||
AIRP | SJG Utility Operations | |||||
Schedule of Capitalization [Line Items] | |||||
Public utilities, requested rate increase (decrease), amount | (6.6) | ||||
Annual BGSS | SJG Utility Operations | |||||
Schedule of Capitalization [Line Items] | |||||
Approved rate increase (decrease) | 65.5 | ||||
Annual CIP | SJG Utility Operations | |||||
Schedule of Capitalization [Line Items] | |||||
Public utilities, requested rate increase (decrease), amount | 26.4 | ||||
Energy Efficiency Tracker | SJG Utility Operations | |||||
Schedule of Capitalization [Line Items] | |||||
Public utilities, requested rate increase (decrease), amount | $ 1.6 | ||||
Societal Benefits Clause | SJG Utility Operations | |||||
Schedule of Capitalization [Line Items] | |||||
Public utilities, requested rate increase (decrease), amount | $ 3.4 | ||||
Universal Service Fund | SJG Utility Operations | |||||
Schedule of Capitalization [Line Items] | |||||
Increase (Decrease) in Amount of Regulatory Costs Approved | 0.9 | ||||
Over Collected Tax | Elizabethtown Gas | |||||
Schedule of Capitalization [Line Items] | |||||
Credits due to customers under conditions of approval | 4.8 | ||||
Over Collected Tax | SJG Utility Operations | |||||
Schedule of Capitalization [Line Items] | |||||
Credits due to customers under conditions of approval | 13.8 | ||||
Unprotected Excess Deferred Income Tax | SJG Utility Operations | |||||
Schedule of Capitalization [Line Items] | |||||
Credits due to customers under conditions of approval | $ 27.5 | ||||
Customer Refund Term | 5 years | ||||
Elkton Gas | |||||
Schedule of Capitalization [Line Items] | |||||
Credits due to customers under conditions of approval | $ 0.3 | ||||
Business Combination, Customer Bill Credit Applied | 0.3 | ||||
Elizabethtown Gas | |||||
Schedule of Capitalization [Line Items] | |||||
Credits due to customers under conditions of approval | 15 | ||||
Business Combination, Customer Bill Credit Applied | $ 15 |
REGULATORY ASSETS AND REGULAT_3
REGULATORY ASSETS AND REGULATORY LIABILITIES - Regulatory Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | $ 469,224 | |
Environmental Remediation Costs: Expended - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 100,327 | |
Environmental Remediation Costs: Liability for Future Expenditures | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 171,696 | |
Deferred Asset Retirement Obligation Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 42,368 | |
Deferred Pension and Other Postretirement Benefit Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 78,211 | |
Deferred Gas Costs - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 16,838 | |
Conservation Incentive Program Receivable | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 26,652 | |
Societal Benefit Costs Receivable | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 2,484 | |
Deferred Interest Rate Contracts | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 7,028 | |
Energy Efficiency Tracker | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 2,094 | |
Pipeline Supplier Service Charges | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 708 | |
Pipeline Integrity Cost | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 5,280 | |
AFUDC - Equity Related Deferrals | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 12,785 | |
Weather Normalization | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | |
Other Regulatory Assets | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | $ 2,753 | |
SJG Utility Operations | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | $ 494,331 | |
SJG Utility Operations | Environmental Remediation Costs: Expended - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 128,142 | |
SJG Utility Operations | Environmental Remediation Costs: Liability for Future Expenditures | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 151,980 | |
SJG Utility Operations | Deferred Asset Retirement Obligation Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 30,448 | |
SJG Utility Operations | Deferred Pension and Other Postretirement Benefit Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 78,211 | |
SJG Utility Operations | Deferred Gas Costs - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 71,247 | |
SJG Utility Operations | Conservation Incentive Program Receivable | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 1,009 | |
SJG Utility Operations | Societal Benefit Costs Receivable | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 2,196 | |
SJG Utility Operations | Deferred Interest Rate Contracts | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 5,042 | |
SJG Utility Operations | Energy Efficiency Tracker | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 2,914 | |
SJG Utility Operations | Pipeline Supplier Service Charges | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 640 | |
SJG Utility Operations | Pipeline Integrity Cost | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 5,133 | |
SJG Utility Operations | AFUDC - Equity Related Deferrals | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 13,646 | |
SJG Utility Operations | Weather Normalization | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | |
SJG Utility Operations | Other Regulatory Assets | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 3,723 | |
SJI | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 628,977 | |
SJI | Environmental Remediation Costs: Expended - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 135,870 | |
SJI | Environmental Remediation Costs: Liability for Future Expenditures | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 221,813 | |
SJI | Deferred Asset Retirement Obligation Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 30,448 | |
SJI | Deferred Pension and Other Postretirement Benefit Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 119,917 | |
SJI | Deferred Gas Costs - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 71,925 | |
SJI | Conservation Incentive Program Receivable | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 1,009 | |
SJI | Societal Benefit Costs Receivable | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 2,196 | |
SJI | Deferred Interest Rate Contracts | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 5,042 | |
SJI | Energy Efficiency Tracker | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 2,914 | |
SJI | Pipeline Supplier Service Charges | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 640 | |
SJI | Pipeline Integrity Cost | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 5,133 | |
SJI | AFUDC - Equity Related Deferrals | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 13,646 | |
SJI | Weather Normalization | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 6,478 | |
SJI | Other Regulatory Assets | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 11,946 | |
Deferred Revenues - Net | SJG Utility Operations | ||
Regulatory Assets [Line Items] | ||
Increase (Decrease) in Regulatory Assets and Liabilities | 54,400 | |
Deferred Revenues - Net | SJI | ||
Regulatory Assets [Line Items] | ||
Increase (Decrease) in Regulatory Assets and Liabilities | 55,100 | |
Elizabethtown Gas | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 133,693 | |
Elizabethtown Gas | Environmental Remediation Costs: Expended - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 7,728 | |
Elizabethtown Gas | Environmental Remediation Costs: Liability for Future Expenditures | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 69,833 | |
Elizabethtown Gas | Deferred Asset Retirement Obligation Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | |
Elizabethtown Gas | Deferred Pension and Other Postretirement Benefit Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 41,706 | |
Elizabethtown Gas | Deferred Gas Costs - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | |
Elizabethtown Gas | Conservation Incentive Program Receivable | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | |
Elizabethtown Gas | Societal Benefit Costs Receivable | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | |
Elizabethtown Gas | Deferred Interest Rate Contracts | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | |
Elizabethtown Gas | Energy Efficiency Tracker | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | |
Elizabethtown Gas | Pipeline Supplier Service Charges | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | |
Elizabethtown Gas | Pipeline Integrity Cost | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | |
Elizabethtown Gas | AFUDC - Equity Related Deferrals | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | |
Elizabethtown Gas | Weather Normalization | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 6,253 | |
Elizabethtown Gas | Other Regulatory Assets | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 8,173 | |
Elkton Gas | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 953 | |
Elkton Gas | Environmental Remediation Costs: Expended - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | |
Elkton Gas | Environmental Remediation Costs: Liability for Future Expenditures | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | |
Elkton Gas | Deferred Asset Retirement Obligation Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | |
Elkton Gas | Deferred Pension and Other Postretirement Benefit Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | |
Elkton Gas | Deferred Gas Costs - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 678 | |
Elkton Gas | Conservation Incentive Program Receivable | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | |
Elkton Gas | Societal Benefit Costs Receivable | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | |
Elkton Gas | Deferred Interest Rate Contracts | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | |
Elkton Gas | Energy Efficiency Tracker | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | |
Elkton Gas | Pipeline Supplier Service Charges | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | |
Elkton Gas | Pipeline Integrity Cost | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | |
Elkton Gas | AFUDC - Equity Related Deferrals | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | |
Elkton Gas | Weather Normalization | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 225 | |
Elkton Gas | Other Regulatory Assets | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | $ 50 |
REGULATORY ASSETS AND REGULAT_4
REGULATORY ASSETS AND REGULATORY LIABILITIES - Narrative and Regulatory Liabilities (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018USD ($)siteasset | Dec. 31, 2017USD ($) | |
Regulatory Assets and Liabilities Disclosure [Abstract] | ||
Revision of estimate of asset retirement obligation | $ 11,900 | |
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | $ 287,105 | |
Environmental Remediation Expense | 481,512 | 287,105 |
Environmental restoration costs | ||
Regulatory Liabilities [Line Items] | ||
Environmental Remediation Expense | 77,600 | |
Excess Plant Removal Costs | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 23,295 | |
Excess Deferred Taxes | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 263,810 | |
Amounts to be Refunded to Customers | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 0 | |
Other Regulatory Liabilities | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 0 | |
Elizabethtown Gas | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 188,536 | |
Elizabethtown Gas | Excess Plant Removal Costs | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 47,873 | |
Elizabethtown Gas | Excess Deferred Taxes | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 119,572 | |
Elizabethtown Gas | Amounts to be Refunded to Customers | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 18,227 | |
Elizabethtown Gas | Other Regulatory Liabilities | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 2,864 | |
Elkton Gas | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 2,943 | |
Elkton Gas | Excess Plant Removal Costs | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 1,379 | |
Elkton Gas | Excess Deferred Taxes | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 1,231 | |
Elkton Gas | Amounts to be Refunded to Customers | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 0 | |
Elkton Gas | Other Regulatory Liabilities | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | $ 333 | |
Environmental restoration costs | ||
Regulatory Assets [Line Items] | ||
Number of regulatory assets | asset | 2 | |
Original recovery period of expenditures | 7 years | |
Environmental restoration costs | Elizabethtown Gas | ||
Regulatory Assets [Line Items] | ||
Number of sites for environmental cleanup | site | 6 | |
SJI | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | $ 481,512 | |
SJI | Deferred Revenues - Net | ||
Regulatory Assets [Line Items] | ||
Increase in Regulatory Assets | 55,100 | |
SJI | Excess Plant Removal Costs | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 71,419 | |
SJI | Excess Deferred Taxes | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 388,669 | |
Increase in regulatory liabilities | 124,900 | |
SJI | Amounts to be Refunded to Customers | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 18,227 | |
SJI | Other Regulatory Liabilities | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 3,197 | |
SJG | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 290,033 | |
Environmental Remediation Expense | 290,033 | $ 287,105 |
SJG | Deferred Revenues - Net | ||
Regulatory Assets [Line Items] | ||
Increase in Regulatory Assets | 54,400 | |
SJG | Excess Plant Removal Costs | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 22,167 | |
SJG | Excess Deferred Taxes | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 267,866 | |
Increase in regulatory liabilities | 4,100 | |
SJG | Amounts to be Refunded to Customers | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 0 | |
SJG | Other Regulatory Liabilities | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | $ 0 | |
SJG | Environmental restoration costs | ||
Regulatory Assets [Line Items] | ||
Number of sites for environmental cleanup | site | 12 |
PENSION AND OTHER POSTRETIREM_3
PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) | Jul. 01, 2018 | Jan. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Amortizations: | ||||||
Increase (Decrease) in Obligation, Pension and Other Postretirement Benefits | $ 7,200,000 | |||||
Pension Benefits | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Service Cost | $ 1,875,000 | $ 1,247,000 | $ 4,691,000 | $ 3,741,000 | ||
Interest Cost | 3,818,000 | 2,943,000 | 9,642,000 | 8,829,000 | ||
Expected Return on Plan Assets | (5,256,000) | (3,526,000) | (12,908,000) | (10,579,000) | ||
Amortizations: | ||||||
Prior Service Cost | 26,000 | 33,000 | 84,000 | 98,000 | ||
Actuarial Loss | 2,878,000 | 2,570,000 | 8,642,000 | 7,712,000 | ||
Net Periodic Benefit Cost | 3,341,000 | 3,267,000 | 10,151,000 | 9,801,000 | ||
Capitalized Benefit Cost | (762,000) | (1,143,000) | (1,799,000) | (3,542,000) | ||
Deferred Benefit Cost | (594,000) | (95,000) | (1,719,000) | (395,000) | ||
Total Net Periodic Benefit Expense | 1,985,000 | 2,029,000 | 6,633,000 | 5,864,000 | ||
Contributions | $ 10,000,000 | 0 | ||||
Estimated future contributions | 0 | 0 | ||||
Pension Benefits | SJG Utility Operations | ||||||
Amortizations: | ||||||
Net Periodic Benefit Cost | 2,300,000 | 6,700,000 | 7,100,000 | |||
Contributions | $ 8,000,000 | |||||
Estimated future contributions | 0 | 0 | ||||
Other Postretirement Benefits | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Service Cost | 251,000 | 228,000 | 692,000 | 683,000 | ||
Interest Cost | 644,000 | 604,000 | 1,720,000 | 1,813,000 | ||
Expected Return on Plan Assets | (1,129,000) | (853,000) | (3,012,000) | (2,558,000) | ||
Amortizations: | ||||||
Prior Service Cost | (74,000) | (86,000) | (246,000) | (258,000) | ||
Actuarial Loss | 223,000 | 310,000 | 674,000 | 928,000 | ||
Net Periodic Benefit Cost | (85,000) | 203,000 | (172,000) | 608,000 | ||
Capitalized Benefit Cost | 263,000 | 66,000 | 258,000 | (35,000) | ||
Total Net Periodic Benefit Expense | 178,000 | 269,000 | 86,000 | 573,000 | ||
Other Postretirement Benefits | SJG Utility Operations | ||||||
Amortizations: | ||||||
Net Periodic Benefit Cost | $ (100,000) | (500,000) | $ (100,000) | |||
Supplemental executive retirement plan | ||||||
Amortizations: | ||||||
Estimated future contributions | $ 2,400,000 | $ 2,400,000 |
LINES OF CREDIT (Details)
LINES OF CREDIT (Details) | Jul. 01, 2018USD ($) | Jun. 26, 2018USD ($)Covenant | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Apr. 30, 2018USD ($) |
Line of Credit Facility [Line Items] | |||||
Payment to acquire assets | $ 200,770,000 | $ 205,604,000 | |||
SJG Utility Operations | |||||
Line of Credit Facility [Line Items] | |||||
Payment to acquire assets | 168,654,000 | $ 183,875,000 | |||
Commercial Paper and Letters of Credit | SJG Utility Operations | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Usage | 141,000,000 | ||||
Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Total Facility | 860,000,000 | ||||
Usage | 428,300,000 | ||||
Available Liquidity | $ 431,700,000 | ||||
Weighted average interest rate on borrowings | 2.68% | 2.26% | |||
Average borrowings outstanding | $ 258,800,000 | $ 260,900,000 | |||
Debt covenant, ratio of indebtedness to total capitalization, syndicate | 0.70 | ||||
Proceeds from issuance of equity | $ 500,000,000 | ||||
Debt covenant, ratio of indebtedness to total capitalization | 0.75 | ||||
Line of Credit | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Letters of Credit, Maximum Aggregate Amount | $ 50,000,000 | ||||
Line of Credit | SJI | |||||
Line of Credit Facility [Line Items] | |||||
Total Facility | $ 450,000,000 | ||||
Usage | 259,500,000 | ||||
Available Liquidity | 190,500,000 | ||||
Line of Credit | SJI | Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Total Facility | 400,000,000 | ||||
Usage | 209,500,000 | ||||
Available Liquidity | 190,500,000 | ||||
Letters of credit outstanding | 6,100,000 | ||||
Line of Credit | SJI | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Total Facility | 50,000,000 | ||||
Usage | 50,000,000 | ||||
Available Liquidity | 0 | ||||
Line of Credit | Elizabethtown Gas | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Total Facility | 250,000,000 | ||||
Additional aggregate borrowing capacity | 175,000,000 | ||||
Letters of Credit, Maximum Aggregate Amount | 50,000,000 | ||||
Line of Credit | Elkton Gas | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Additional aggregate borrowing capacity | 25,000,000 | ||||
Line of Credit | ETG Utility Operations | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Total Facility | $ 200,000,000 | 200,000,000 | |||
Term (in years) | 2 years | ||||
Additional aggregate borrowing capacity | $ 200,000,000 | ||||
Number of Financial Covenants | Covenant | 1 | ||||
Usage | 27,800,000 | ||||
Available Liquidity | 172,200,000 | ||||
Line of Credit | ETG Utility Operations | Swingline Loan [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Additional aggregate borrowing capacity | $ 20,000,000 | ||||
Line of Credit | SJG Utility Operations | |||||
Line of Credit Facility [Line Items] | |||||
Total Facility | 210,000,000 | ||||
Usage | 141,000,000 | ||||
Available Liquidity | $ 69,000,000 | ||||
Weighted average interest rate on borrowings | 2.42% | ||||
Average borrowings outstanding | $ 67,900,000 | $ 17,000,000 | |||
Debt covenant, ratio of indebtedness to total capitalization | 0.65 | ||||
Line of Credit | SJG Utility Operations | Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Letters of credit outstanding | $ 800,000 | ||||
Line of Credit | SJG Utility Operations | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Total Facility | 200,000,000 | ||||
Available Liquidity | 59,000,000 | ||||
Line of Credit | SJG Utility Operations | Uncommitted Bank Line | |||||
Line of Credit Facility [Line Items] | |||||
Total Facility | 10,000,000 | ||||
Usage | 0 | ||||
Available Liquidity | 10,000,000 | ||||
Unsecured promissory notes | |||||
Line of Credit Facility [Line Items] | |||||
Principal amount issued | $ 250,000,000 | ||||
Unsecured promissory notes | SJG Commercial Paper Program | |||||
Line of Credit Facility [Line Items] | |||||
Total Facility | $ 200,000,000 | ||||
Fixed maturities of notes, at maximum number of days | 270 days | ||||
Commercial Paper | SJG Utility Operations | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Usage | $ 140,200,000 | ||||
ETG Utility Operations | |||||
Line of Credit Facility [Line Items] | |||||
Payment to acquire assets | $ 1,700,000,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | Jul. 01, 2018USD ($) | Sep. 30, 2018USD ($)siteuniondecatherm / daycontract | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)siteuniondecatherm / daycontract | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)siteuniondecatherm / daycontract | Apr. 30, 2018$ / shares | Dec. 31, 2017USD ($) |
Commitment and Contingencies [Line Items] | ||||||||
Minimum annual fee for long-term asset management contract | $ 4,250,000 | |||||||
Percentage of personnel represented by collective bargaining agreements | 45.00% | 45.00% | 45.00% | |||||
Number of unions | union | 3 | 3 | 3 | |||||
Cost of Sales - Nonutility | $ 23,238,000 | $ 28,217,000 | $ 128,536,000 | $ 131,927,000 | ||||
Interest Charges | 26,534,000 | 10,567,000 | 60,067,000 | 38,291,000 | ||||
Approximate amount accrued related to all claims | $ 3,100,000 | $ 3,100,000 | $ 3,100,000 | $ 3,000,000 | ||||
Pricing dispute, long-term gas supply contract | ||||||||
Commitment and Contingencies [Line Items] | ||||||||
Number of long-term gas supply contracts | contract | 2 | 2 | 2 | |||||
Line of Credit | ||||||||
Commitment and Contingencies [Line Items] | ||||||||
Letter of credit provided | $ 860,000,000 | $ 860,000,000 | $ 860,000,000 | |||||
Standby letters of credit | ||||||||
Commitment and Contingencies [Line Items] | ||||||||
Letter of credit provided | $ 6,100,000 | 6,100,000 | $ 6,100,000 | |||||
SJG Utility Operations | ||||||||
Commitment and Contingencies [Line Items] | ||||||||
Cumulative obligation for demand charges and reservation fees per month | $ 5,700,000 | |||||||
Percentage of personnel represented by collective bargaining agreements | 58.00% | 58.00% | 58.00% | |||||
Interest Charges | $ 7,108,000 | $ 6,437,000 | $ 20,835,000 | $ 18,392,000 | ||||
Approximate amount accrued related to all claims | $ 800,000 | $ 800,000 | $ 800,000 | $ 700,000 | ||||
SJG Utility Operations | Environmental restoration costs | ||||||||
Commitment and Contingencies [Line Items] | ||||||||
Number of sites for environmental cleanup | site | 12 | 12 | 12 | |||||
SJG Utility Operations | Pricing dispute, long-term gas supply contract | Judicial ruling | ||||||||
Commitment and Contingencies [Line Items] | ||||||||
Amount to be paid to supplier | $ 21,900,000 | |||||||
SJG Utility Operations | Line of Credit | ||||||||
Commitment and Contingencies [Line Items] | ||||||||
Letter of credit provided | $ 210,000,000 | $ 210,000,000 | 210,000,000 | |||||
SJG Utility Operations | Syndicated Revolving Credit Facility | Line of Credit | ||||||||
Commitment and Contingencies [Line Items] | ||||||||
Letter of credit provided | 200,000,000 | 200,000,000 | 200,000,000 | |||||
SJG Utility Operations | Letters of credit under separate facility | ||||||||
Commitment and Contingencies [Line Items] | ||||||||
Letter of credit provided | $ 25,100,000 | 25,100,000 | $ 25,100,000 | |||||
South Jersey Resources Group | ||||||||
Commitment and Contingencies [Line Items] | ||||||||
Cumulative obligation for demand charges and reservation fees per month | $ 500,000 | |||||||
Minimum purchase commitment (in dts/d) | decatherm / day | 752,500 | 752,500 | 752,500 | |||||
Maximum purchase commitment (in dts/d) | decatherm / day | 892,500 | 892,500 | 892,500 | |||||
Minimum length of contract | 4 years | |||||||
Maximum length of contract | 10 years | |||||||
South Jersey Resources Group | Pricing dispute, long-term gas supply contract | Judicial ruling | ||||||||
Commitment and Contingencies [Line Items] | ||||||||
Amount to be paid to supplier | $ 56,300,000 | |||||||
Cost of Sales - Nonutility | $ 1,400,000 | $ 2,700,000 | ||||||
Interest Charges | 300,000 | 700,000 | ||||||
Accounts Payable | SJG Utility Operations | Pricing dispute, long-term gas supply contract | Judicial ruling | ||||||||
Commitment and Contingencies [Line Items] | ||||||||
Amount to be paid to supplier | 21,900,000 | |||||||
Accounts Payable | South Jersey Resources Group | Pricing dispute, long-term gas supply contract | Judicial ruling | ||||||||
Commitment and Contingencies [Line Items] | ||||||||
Amount to be paid to supplier | 56,300,000 | |||||||
Capital Units | ||||||||
Commitment and Contingencies [Line Items] | ||||||||
Corporate Unit, stated value per share (in dollars per share) | $ / shares | $ 50 | |||||||
Parental guarantee | ||||||||
Commitment and Contingencies [Line Items] | ||||||||
Parental guarantees | $ 6,880,000 | $ 6,880,000 | $ 6,880,000 | |||||
Guarantee expiration period | 2 years | |||||||
Elizabethtown Gas | ||||||||
Commitment and Contingencies [Line Items] | ||||||||
Cumulative obligation for demand charges and reservation fees per month | $ 3,900,000 | |||||||
Minimum annual fee for long-term asset management contract | $ 4,250,000 | |||||||
Elizabethtown Gas | Environmental restoration costs | ||||||||
Commitment and Contingencies [Line Items] | ||||||||
Number of sites for environmental cleanup | site | 6 | 6 | 6 |
DERIVATIVE INSTRUMENTS - Outsta
DERIVATIVE INSTRUMENTS - Outstanding Contracts (Details) MMcfe in Thousands, MWh in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($)MWh | Sep. 30, 2018USD ($)MMcfe | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Derivative [Line Items] | ||||||||
Unrealized gains (losses) | $ 4,700,000 | $ (2,100,000) | ||||||
Reclassified unrealized gain (loss) to interest income (expense) | $ (2,400,000) | |||||||
Interest Rate Swap, $20,000,000 Contract 1 | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | $ 20,000,000 | $ 20,000,000 | $ 20,000,000 | $ 20,000,000 | ||||
Fixed Interest Rate | 3.049% | 3.049% | 3.049% | 3.049% | ||||
Interest Rate Swap, $20,000,000 Contract 2 | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | $ 20,000,000 | $ 20,000,000 | $ 20,000,000 | $ 20,000,000 | ||||
Fixed Interest Rate | 3.049% | 3.049% | 3.049% | 3.049% | ||||
Interest Rate Swap, $10,000,000 | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | ||||
Fixed Interest Rate | 3.049% | 3.049% | 3.049% | 3.049% | ||||
Basis and Index related net purchase (sales) contracts | ||||||||
Derivative [Line Items] | ||||||||
Notional amount (natural gas in mmcfe and electricity in mwh) | MMcfe | 87,600 | |||||||
Derivatives not designated as hedging instruments under GAAP | ||||||||
Derivative [Line Items] | ||||||||
Gain (loss) on energy related derivative instruments not designated as hedging instruments | $ (11,225,000) | $ (4,632,000) | $ 5,950,000 | $ 2,200,000 | ||||
Expected future purchases | ||||||||
Derivative [Line Items] | ||||||||
Notional amount (natural gas in mmcfe and electricity in mwh) | 1.9 | 74,500 | ||||||
Expected future sales | ||||||||
Derivative [Line Items] | ||||||||
Notional amount (natural gas in mmcfe and electricity in mwh) | 1.5 | 53,800 | ||||||
SJG | ||||||||
Derivative [Line Items] | ||||||||
Unrealized gains (losses) | 5,100,000 | $ (2,100,000) | ||||||
SJG | Interest Rate Swap, $12,500,000 Contract 1 | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | $ 12,500,000 | $ 12,500,000 | $ 12,500,000 | $ 12,500,000 | ||||
Fixed Interest Rate | 3.53% | 3.53% | 3.53% | 3.53% | ||||
SJG | Interest Rate Swap, $12,500,000 Contract 2 | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | $ 12,500,000 | $ 12,500,000 | $ 12,500,000 | $ 12,500,000 | ||||
Fixed Interest Rate | 3.43% | 3.43% | 3.43% | 3.43% | ||||
SJG | Expected future purchases | ||||||||
Derivative [Line Items] | ||||||||
Notional amount (natural gas in mmcfe and electricity in mwh) | 0 | 8,900 | ||||||
SJG | Expected future sales | ||||||||
Derivative [Line Items] | ||||||||
Notional amount (natural gas in mmcfe and electricity in mwh) | 0 | 300 | ||||||
SJG | Basis and Index related net purchase (sales) contracts | ||||||||
Derivative [Line Items] | ||||||||
Notional amount (natural gas in mmcfe and electricity in mwh) | MMcfe | 1,100 |
DERIVATIVE INSTRUMENTS - Fair V
DERIVATIVE INSTRUMENTS - Fair Value of all Derivative Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Assets | $ 35,428 | $ 48,127 |
Liabilities | 32,930 | 63,333 |
SJG Utility Operations | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 7,953 | 7,332 |
Liabilities | 7,914 | 16,468 |
Commodity Contract | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 35,428 | 48,127 |
Liabilities | 0 | 0 |
Commodity Contract | SJG Utility Operations | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 7,953 | 7,332 |
Liabilities | 0 | 0 |
Derivatives not designated as hedging instruments under GAAP | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 35,428 | 48,127 |
Liabilities | 32,930 | 63,333 |
Derivatives not designated as hedging instruments under GAAP | SJG Utility Operations | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 7,953 | 7,332 |
Liabilities | 7,914 | 16,468 |
Derivatives not designated as hedging instruments under GAAP | Commodity Contract | Derivatives - Energy Related - Current | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 27,414 | 42,139 |
Liabilities | 23,469 | 46,938 |
Derivatives not designated as hedging instruments under GAAP | Commodity Contract | Derivatives - Energy Related - Current | SJG Utility Operations | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 7,951 | 7,327 |
Liabilities | 2,804 | 9,270 |
Derivatives not designated as hedging instruments under GAAP | Commodity Contract | Derivatives - Energy Related - Non-Current | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 8,014 | 5,988 |
Liabilities | 3,997 | 6,025 |
Derivatives not designated as hedging instruments under GAAP | Commodity Contract | Derivatives - Energy Related - Non-Current | SJG Utility Operations | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 2 | 5 |
Liabilities | 68 | 170 |
Derivatives not designated as hedging instruments under GAAP | Interest rate contracts | Derivatives - Other - Current | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 339 | 748 |
Derivatives not designated as hedging instruments under GAAP | Interest rate contracts | Derivatives - Other - Current | SJG Utility Operations | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 291 | 389 |
Derivatives not designated as hedging instruments under GAAP | Interest rate contracts | Derivatives - Other - Noncurrent | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 5,125 | 9,622 |
Derivatives not designated as hedging instruments under GAAP | Interest rate contracts | Derivatives - Other - Noncurrent | SJG Utility Operations | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 0 |
Liabilities | $ 4,751 | $ 6,639 |
DERIVATIVE INSTRUMENTS - Offset
DERIVATIVE INSTRUMENTS - Offsetting Arrangements (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Offsetting Derivative Assets [Abstract] | ||
Gross amounts of recognized assets/liabilities | $ 35,428 | $ 48,127 |
Offsetting Derivative Liabilities [Abstract] | ||
Gross amount offset in the balance sheet | 32,930 | 63,333 |
SJG | ||
Offsetting Derivative Assets [Abstract] | ||
Gross amounts of recognized assets/liabilities | 7,953 | 7,332 |
Offsetting Derivative Liabilities [Abstract] | ||
Gross amount offset in the balance sheet | 7,914 | 16,468 |
Commodity Contract | ||
Offsetting Derivative Assets [Abstract] | ||
Gross amounts of recognized assets/liabilities | 35,428 | 48,127 |
Gross amount offset in the balance sheet | 0 | 0 |
Net amounts of assets/liabilities in balance sheet | 35,428 | 48,127 |
Gross amounts not offset in the balance sheet, Financial Instruments | (9,872) | (24,849) |
Gross amounts not offset in the balance sheet, Cash Collateral Posted | 0 | 0 |
Net amount | 25,556 | 23,278 |
Offsetting Derivative Liabilities [Abstract] | ||
Gross amounts of recognized assets/liabilities | (27,466) | (52,963) |
Gross amount offset in the balance sheet | 0 | 0 |
Net amounts of assets/liabilities in balance sheet | (27,466) | (52,963) |
Gross amounts not offset in the balance sheet, Financial Instruments | 9,872 | 24,849 |
Gross amounts not offset in the balance sheet, Cash Collateral Posted | 3,070 | 8,832 |
Net amount | (14,524) | (19,282) |
Commodity Contract | SJG | ||
Offsetting Derivative Assets [Abstract] | ||
Gross amounts of recognized assets/liabilities | 7,953 | 7,332 |
Gross amount offset in the balance sheet | 0 | 0 |
Net amounts of assets/liabilities in balance sheet | 7,953 | 7,332 |
Gross amounts not offset in the balance sheet, Financial Instruments | (287) | (208) |
Gross amounts not offset in the balance sheet, Cash Collateral Posted | 0 | 0 |
Net amount | 7,666 | 7,124 |
Offsetting Derivative Liabilities [Abstract] | ||
Gross amounts of recognized assets/liabilities | (2,872) | (9,440) |
Gross amount offset in the balance sheet | 0 | 0 |
Net amounts of assets/liabilities in balance sheet | (2,872) | (9,440) |
Gross amounts not offset in the balance sheet, Financial Instruments | 287 | 208 |
Gross amounts not offset in the balance sheet, Cash Collateral Posted | 0 | 1,543 |
Net amount | (2,585) | (7,689) |
Other | ||
Offsetting Derivative Liabilities [Abstract] | ||
Gross amounts of recognized assets/liabilities | (5,464) | (10,370) |
Gross amount offset in the balance sheet | 0 | 0 |
Net amounts of assets/liabilities in balance sheet | (5,464) | (10,370) |
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 | (5,464) | (10,370) |
Other | SJG | ||
Offsetting Derivative Liabilities [Abstract] | ||
Gross amounts of recognized assets/liabilities | (5,042) | (7,028) |
Gross amount offset in the balance sheet | 0 | 0 |
Net amounts of assets/liabilities in balance sheet | (5,042) | (7,028) |
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 | $ (5,042) | $ (7,028) |
DERIVATIVE INSTRUMENTS - Effect
DERIVATIVE INSTRUMENTS - Effect of Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest Rate Contracts: | ||||
Total | $ (10,552) | $ (4,580) | $ 8,871 | $ 868 |
Fair value of derivative instruments with credit-risk-related features | 700 | 700 | ||
Additional collateral, aggregate fair value | 500 | 500 | ||
Derivatives in Cash Flow Hedging Relationships under GAAP | ||||
Interest Rate Contracts: | ||||
Losses reclassified from AOCL into income | (11) | (12) | (35) | (2,511) |
Derivatives in Cash Flow Hedging Relationships under GAAP | SJG | ||||
Interest Rate Contracts: | ||||
Losses reclassified from AOCL into income | (11) | (12) | (35) | (36) |
Derivatives not designated as hedging instruments under GAAP | ||||
Interest Rate Contracts: | ||||
(Losses) gains on energy-related commodity contracts | (11,225) | (4,632) | 5,950 | 2,200 |
Gains (Losses) on interest rate contracts | $ 673 | $ 52 | $ 2,921 | $ (1,332) |
FAIR VALUE OF FINANCIAL ASSET_3
FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES - Measured on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | $ 36 | $ 36 |
Assets | ||
Derivatives - Energy Related Assets | 35,428 | 48,127 |
Total Assets | 35,464 | 48,163 |
Liabilities | ||
Derivatives - Energy Related Liabilities | 27,466 | 52,963 |
Derivatives - Other | 5,464 | 10,370 |
Total Liabilities | 32,930 | 63,333 |
SJG | ||
Assets | ||
Derivatives - Energy Related Assets | 7,953 | 7,332 |
Total Assets | 7,953 | 7,332 |
Liabilities | ||
Derivatives - Energy Related Liabilities | 2,872 | 9,440 |
Derivatives - Other | 5,042 | 7,028 |
Total Liabilities | 7,914 | 16,468 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 36 | 36 |
Assets | ||
Derivatives - Energy Related Assets | 1,817 | 5,155 |
Total Assets | 1,853 | 5,191 |
Liabilities | ||
Derivatives - Energy Related Liabilities | 3,991 | 10,687 |
Derivatives - Other | 0 | 0 |
Total Liabilities | 3,991 | 10,687 |
Level 1 | SJG | ||
Assets | ||
Derivatives - Energy Related Assets | 405 | 208 |
Total Assets | 405 | 208 |
Liabilities | ||
Derivatives - Energy Related Liabilities | 287 | 1,750 |
Derivatives - Other | 0 | 0 |
Total Liabilities | 287 | 1,750 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Assets | ||
Derivatives - Energy Related Assets | 10,952 | 21,869 |
Total Assets | 10,952 | 21,869 |
Liabilities | ||
Derivatives - Energy Related Liabilities | 11,120 | 24,283 |
Derivatives - Other | 5,464 | 10,370 |
Total Liabilities | 16,584 | 34,653 |
Level 2 | SJG | ||
Assets | ||
Derivatives - Energy Related Assets | 0 | 230 |
Total Assets | 0 | 230 |
Liabilities | ||
Derivatives - Energy Related Liabilities | 1,653 | 2,848 |
Derivatives - Other | 5,042 | 7,028 |
Total Liabilities | 6,695 | 9,876 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Assets | ||
Derivatives - Energy Related Assets | 22,659 | 21,103 |
Total Assets | 22,659 | 21,103 |
Liabilities | ||
Derivatives - Energy Related Liabilities | 12,355 | 17,993 |
Derivatives - Other | 0 | 0 |
Total Liabilities | 12,355 | 17,993 |
Level 3 | SJG | ||
Assets | ||
Derivatives - Energy Related Assets | 7,548 | 6,894 |
Total Assets | 7,548 | 6,894 |
Liabilities | ||
Derivatives - Energy Related Liabilities | 932 | 4,842 |
Derivatives - Other | 0 | 0 |
Total Liabilities | $ 932 | $ 4,842 |
FAIR VALUE OF FINANCIAL ASSET_4
FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES - Quantitative Information Regarding Significant Unobservable Inputs (Details) - Forward Contracts - Fair Value, Inputs, Level 3 $ in Thousands | Sep. 30, 2018USD ($)$ / decatherm | Dec. 31, 2017USD ($)$ / decatherm |
Natural Gas | Minimum | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Forward price (in dollars per dt) | $ / decatherm | 1.64 | 1.79 |
Natural Gas | Minimum | SJG Utility Operations | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Forward price (in dollars per dt) | $ / decatherm | 2.67 | 2.42 |
Natural Gas | Maximum | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Forward price (in dollars per dt) | $ / decatherm | 9.82 | 12.09 |
Natural Gas | Maximum | SJG Utility Operations | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Forward price (in dollars per dt) | $ / decatherm | 7.07 | 6.67 |
Natural Gas | Weighted Average | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Forward price (in dollars per dt) | $ / decatherm | 3.23 | 3.01 |
Natural Gas | Weighted Average | SJG Utility Operations | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Forward price (in dollars per dt) | $ / decatherm | 4.80 | 5.25 |
Electricity | Minimum | On-Peak | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Fixed electric load profile | 0.00% | 36.36% |
Electricity | Minimum | Off-Peak | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Fixed electric load profile | 0.00% | 0.00% |
Electricity | Maximum | On-Peak | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Fixed electric load profile | 100.00% | 100.00% |
Electricity | Maximum | Off-Peak | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Fixed electric load profile | 0.00% | 63.64% |
Electricity | Weighted Average | On-Peak | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Fixed electric load profile | 53.88% | 53.39% |
Electricity | Weighted Average | Off-Peak | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Fixed electric load profile | 46.12% | 46.61% |
Discounted Cash Flow | Natural Gas | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Assets | $ | $ 13,821 | $ 13,519 |
Liabilities | $ | 9,497 | 15,686 |
Discounted Cash Flow | Natural Gas | SJG Utility Operations | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Assets | $ | 7,548 | 6,894 |
Liabilities | $ | 932 | 4,842 |
Discounted Cash Flow | Electricity | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Assets | $ | 8,838 | 7,584 |
Liabilities | $ | $ 2,858 | $ 2,307 |
FAIR VALUE OF FINANCIAL ASSET_5
FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES - Changes in Measurements (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | $ 18,361 | $ 17,401 | $ 3,110 | $ 9,035 |
Other Changes in Fair Value from Continuing and New Contracts, Net | (4,426) | 1,352 | 5,778 | 8,346 |
Transfers out of Level 3 (A) | (206) | (954) | ||
Settlements | (3,631) | (4,781) | 1,416 | (2,661) |
Balance at end of period | 10,304 | 13,766 | 10,304 | 13,766 |
SJG | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | 5,997 | 6,933 | 2,052 | 926 |
Other Changes in Fair Value from Continuing and New Contracts, Net | 619 | (1,603) | 6,616 | 5,330 |
Transfers out of Level 3 (A) | (206) | (206) | ||
Settlements | 0 | 0 | (2,052) | (926) |
Balance at end of period | $ 6,616 | $ 5,124 | $ 6,616 | $ 5,124 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) | Jun. 26, 2018USD ($) | Apr. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Aug. 31, 2018USD ($) | Jun. 20, 2018USD ($) | Jan. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | |||||||
Interest rate | 7.50% | ||||||
Carrying amount of long-term debt, including current maturities | $ 2,760,000,000 | $ 1,190,000,000 | |||||
3.18% Notes, Due April 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount issued | $ 90,000,000 | ||||||
Interest rate | 3.18% | ||||||
Series 2018 B, 3.78% Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount issued | $ 80,000,000 | ||||||
Interest rate | 3.82% | ||||||
Series 2018 C. 3.88% Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount issued | $ 80,000,000 | ||||||
Interest rate | 3.92% | ||||||
Series 2018D Senior Notes, Due 2019 | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount issued | $ 475,000,000 | ||||||
Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount issued | $ 530,000,000 | ||||||
Term (in years) | 364 days | ||||||
Debt covenant, ratio of indebtedness to total capitalization | 0.70 | ||||||
Medium-term notes | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 7.97% | ||||||
Debt Instrument, Repurchased Face Amount | $ 10,000,000 | ||||||
Medium-term notes | Series 2017A-2, Due January 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount issued | $ 25,000,000 | ||||||
Interest rate | 3.32% | ||||||
Medium-term notes | Series 2017B-2, Due January 2028 | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount issued | $ 25,000,000 | ||||||
Interest rate | 3.56% | ||||||
Unsecured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount issued | $ 250,000,000 | ||||||
Capital Units | |||||||
Debt Instrument [Line Items] | |||||||
Consideration received, gross | 287,500,000 | ||||||
Carrying amount of long-term debt, including current maturities | $ 279,100,000 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Summary of Changes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | $ 1,192,409 | ||||
Other comprehensive income before reclassifications | $ 0 | 0 | |||
Amounts reclassified from AOCL | 8 | 25 | |||
Other Comprehensive Income - Net of Tax | [1] | 8 | $ 7 | 25 | $ 1,529 |
Ending balance | 1,234,832 | $ 1,234,832 | |||
Combined statutory tax rate | 27.00% | 40.00% | |||
SJG Utility Operations | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | $ 921,433 | ||||
Other comprehensive income before reclassifications | 0 | 0 | |||
Amounts reclassified from AOCL | 8 | 25 | |||
Other Comprehensive Income - Net of Tax | [2] | 8 | $ 7 | 25 | $ 21 |
Ending balance | 980,797 | $ 980,797 | |||
Combined statutory tax rate | 27.00% | 40.00% | |||
Total | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (36,748) | $ (36,765) | |||
Ending balance | (36,740) | (36,740) | |||
Postretirement Liability Adjustment | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (36,262) | (36,262) | |||
Other comprehensive income before reclassifications | 0 | 0 | |||
Amounts reclassified from AOCL | 0 | 0 | |||
Other Comprehensive Income - Net of Tax | 0 | 0 | |||
Ending balance | (36,262) | (36,262) | |||
Unrealized Gain (Loss) on Derivatives-Other | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (379) | (396) | |||
Other comprehensive income before reclassifications | 0 | 0 | |||
Amounts reclassified from AOCL | 8 | 25 | |||
Other Comprehensive Income - Net of Tax | 8 | 25 | |||
Ending balance | (371) | (371) | |||
Unrealized Gain (Loss) on Available-for-Sale Securities | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (10) | (10) | |||
Other comprehensive income before reclassifications | 0 | 0 | |||
Amounts reclassified from AOCL | 0 | 0 | |||
Other Comprehensive Income - Net of Tax | 0 | 0 | |||
Ending balance | (10) | (10) | |||
Other Comprehensive Income (Loss) of Affiliated Companies | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (97) | (97) | |||
Other comprehensive income before reclassifications | 0 | 0 | |||
Amounts reclassified from AOCL | 0 | 0 | |||
Other Comprehensive Income - Net of Tax | 0 | 0 | |||
Ending balance | (97) | (97) | |||
Total | SJG Utility Operations | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (25,980) | (25,997) | |||
Ending balance | (25,972) | (25,972) | |||
Postretirement Liability Adjustment | SJG Utility Operations | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (25,507) | (25,507) | |||
Other comprehensive income before reclassifications | 0 | 0 | |||
Amounts reclassified from AOCL | 0 | 0 | |||
Other Comprehensive Income - Net of Tax | 0 | 0 | |||
Ending balance | (25,507) | (25,507) | |||
Unrealized Gain (Loss) on Derivatives-Other | SJG Utility Operations | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (473) | (490) | |||
Other comprehensive income before reclassifications | 0 | 0 | |||
Amounts reclassified from AOCL | 8 | 25 | |||
Other Comprehensive Income - Net of Tax | 8 | 25 | |||
Ending balance | $ (465) | $ (465) | |||
[1] | Determined using a combined average statutory tax rate of approximately 27% and 40% in 2018 and 2017, respectively. | ||||
[2] | Determined using a combined average statutory tax rate of approximately 27% and 40% in 2018 and 2017, respectively. |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS - Reclassifications out of AOCL (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income Taxes | $ (16,649) | $ (24,765) | $ (12,206) | $ (8,439) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (8) | $ (25) | ||
Combined statutory tax rate | 27.00% | 40.00% | ||
SJG Utility Operations | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income Taxes | (2,818) | $ (3,688) | $ 19,500 | $ 27,654 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (8) | $ (25) | ||
Combined statutory tax rate | 27.00% | 40.00% | ||
Unrealized Loss in on Derivatives - Other - Interest Rate Contracts designated as cash flow hedges | SJG Utility Operations | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (8) | $ (25) | ||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Loss on Derivatives-Other - interest rate contracts designated as cash flow hedges | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income Taxes | (3) | (10) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (25) | |||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Loss in on Derivatives - Other - Interest Rate Contracts designated as cash flow hedges | SJG Utility Operations | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income Taxes | (3) | (10) | ||
Net Income (Loss) Attributable to Parent | 8 | 25 | ||
Interest Charges | Reclassification out of Accumulated Other Comprehensive Income | Unrealized Loss on Derivatives-Other - interest rate contracts designated as cash flow hedges | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Unrealized Loss on Derivatives-Other - interest rate contracts designated as cash flow hedges | 11 | 35 | ||
Interest Charges | Reclassification out of Accumulated Other Comprehensive Income | Unrealized Loss in on Derivatives - Other - Interest Rate Contracts designated as cash flow hedges | SJG Utility Operations | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Unrealized Loss on Derivatives-Other - interest rate contracts designated as cash flow hedges | $ 11 | $ 35 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 314,467 | $ 960,300 |
SJG Utility Operations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 49,500 | $ 307,500 |
REVENUE Disaggregated Revenue (
REVENUE Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 314,467 | $ 960,300 |
Residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 53,298 | 260,000 |
Commercial & Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 256,441 | 688,194 |
OSS & Capacity Release | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,066 | 9,242 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,662 | 2,864 |
Gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 263,622 | 813,714 |
Electric | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 34,993 | 90,179 |
Solar | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 5,392 | 26,826 |
CHP | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 8,151 | 23,165 |
Landfills | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,774 | 4,910 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 535 | 1,506 |
Wholesale Energy Operations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 173,363 | 423,585 |
Wholesale Energy Operations | Commercial & Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 173,363 | 423,585 |
Wholesale Energy Operations | Gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 173,363 | 423,585 |
Retail Gas and Other Operations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 12,487 | 60,854 |
Retail Gas and Other Operations | Commercial & Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 12,487 | 60,854 |
Retail Gas and Other Operations | Gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 12,487 | 60,854 |
Retail Electric Operations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 37,446 | 96,313 |
Retail Electric Operations | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 9,691 | 24,178 |
Retail Electric Operations | Commercial & Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 27,755 | 72,135 |
Retail Electric Operations | Electric | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 37,446 | 96,313 |
On-Site Energy Production | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 15,317 | 61,208 |
On-Site Energy Production | Commercial & Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 15,317 | 61,208 |
On-Site Energy Production | Solar | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 5,392 | 33,133 |
On-Site Energy Production | CHP | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 8,151 | 23,165 |
On-Site Energy Production | Landfills | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,774 | 4,910 |
Appliance Service Operations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 509 | 1,480 |
Appliance Service Operations | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 509 | 1,480 |
Appliance Service Operations | Commercial & Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | |
Appliance Service Operations | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 509 | 1,480 |
Corporate Services and Intersegment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (4,032) | (20,508) |
Corporate Services and Intersegment | Commercial & Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (4,032) | (20,508) |
Corporate Services and Intersegment | Gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (1,579) | (8,067) |
Corporate Services and Intersegment | Electric | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | (2,453) | (6,134) |
Corporate Services and Intersegment | Solar | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | (6,307) |
SJG Utility Operations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 49,500 | 307,500 |
SJG Utility Operations | Utility Operations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 49,516 | 307,507 |
SJG Utility Operations | Utility Operations | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 26,683 | 217,927 |
SJG Utility Operations | Utility Operations | Commercial & Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 19,109 | 78,478 |
SJG Utility Operations | Utility Operations | OSS & Capacity Release | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,066 | 9,242 |
SJG Utility Operations | Utility Operations | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 658 | 1,860 |
SJG Utility Operations | Utility Operations | Gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 49,516 | 307,507 |
ETG Utility Operations | Utility Operations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 29,117 | 29,117 |
ETG Utility Operations | Utility Operations | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 16,193 | 16,193 |
ETG Utility Operations | Utility Operations | Commercial & Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 11,946 | 11,946 |
ETG Utility Operations | Utility Operations | OSS & Capacity Release | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
ETG Utility Operations | Utility Operations | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 978 | 978 |
ETG Utility Operations | Utility Operations | Gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 29,117 | 29,117 |
ELK Utility Operations | Utility Operations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 744 | 744 |
ELK Utility Operations | Utility Operations | Residential | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 222 | 222 |
ELK Utility Operations | Utility Operations | Commercial & Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 496 | 496 |
ELK Utility Operations | Utility Operations | OSS & Capacity Release | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
ELK Utility Operations | Utility Operations | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 26 | 26 |
ELK Utility Operations | Utility Operations | Gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 718 | $ 718 |
REVENUE Accounts Receivable (De
REVENUE Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Disaggregation of Revenue [Line Items] | ||
Accounts Receivable | $ 220,561 | $ 202,379 |
Unbilled Revenues | 29,313 | 73,377 |
SJG Utility Operations | ||
Disaggregation of Revenue [Line Items] | ||
Accounts Receivable | 72,010 | 78,571 |
Unbilled Revenues | 7,995 | $ 54,980 |
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||
Disaggregation of Revenue [Line Items] | ||
Accounts Receivable | 18,182 | |
Unbilled Revenues | (44,064) | |
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | SJG Utility Operations | ||
Disaggregation of Revenue [Line Items] | ||
Accounts Receivable | (6,561) | |
Unbilled Revenues | $ (46,985) |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) | Jul. 01, 2018 | Jun. 26, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||||
Payments to acquire businesses | $ 1,740,000,000 | ||||||
Working capital adjustment | 40,400,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Property, Plant and Equipment | 1,089,071,000 | ||||||
Accounts Receivable | 39,023,000 | ||||||
Natural Gas in Storage | 12,204,000 | ||||||
Materials and Supplies | 345,000 | ||||||
Other Prepayments and Current Assets | 200,000 | ||||||
Regulatory Assets | 137,334,000 | ||||||
Goodwill | 756,247,000 | $ 759,826,000 | $ 759,826,000 | $ 3,578,000 | |||
Total assets acquired | 2,034,424,000 | ||||||
Accounts Payable | 13,173,000 | ||||||
Other Current Liabilities | 9,241,000 | ||||||
Environmental Remediation Costs - Current | 7,100,000 | ||||||
Pension and Other Postretirement Benefits | 7,183,000 | ||||||
Environmental Remediation Costs - Non Current | 67,532,000 | ||||||
Regulatory Liabilities | 188,510,000 | ||||||
Other | 1,310,000 | ||||||
Total liabilities assumed | 294,049,000 | ||||||
Total net assets acquired | 1,740,375,000 | ||||||
Goodwill deductible for tax purposes | $ 756,200,000 | ||||||
Credits due to customers under conditions of approval | 15,300,000 | 15,300,000 | |||||
Common Equity Percentage Required, Excluding Goodwill | 46.00% | ||||||
ETG and ELK revenues included in the Company's unaudited consolidated statements of income | 29,900,000 | ||||||
ETG and ELK earnings included in the Company's unaudited consolidated statements of income | 18,200,000 | ||||||
Business Acquisition, Pro Forma Information [Abstract] | |||||||
Revenues | 302,480,000 | $ 258,021,000 | 1,240,240,000 | $ 1,106,409,000 | |||
Net (loss) income | $ (25,116,000) | $ (46,393,000) | $ 38,307,000 | $ (33,008,000) | |||
Earnings (loss) per share | $ (0.29) | $ (0.54) | $ 0.46 | $ (0.39) | |||
Acquisition and regulatory approval costs | $ 18,900,000 | $ 32,100,000 | |||||
Acquisition related expenses | 19,800,000 | 47,100,000 | $ 46,500,000 | ||||
Elizabethtown Gas | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire businesses | $ 1,730,000,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Credits due to customers under conditions of approval | 15,000,000 | 15,000,000 | |||||
ETG Utility Operations | |||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
ETG and ELK revenues included in the Company's unaudited consolidated statements of income | 29,900,000 | ||||||
ETG and ELK earnings included in the Company's unaudited consolidated statements of income | 18,200,000 | ||||||
Elkton Gas | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire businesses | $ 10,000,000 | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Credits due to customers under conditions of approval | $ 300,000 | $ 300,000 | |||||
Term Loan | |||||||
Business Acquisition [Line Items] | |||||||
Time to refinance debt from day of close | 180 days | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||||
Principal amount issued | $ 530,000,000 | ||||||
Debt instrument term | 364 days |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Oct. 31, 2018 | Oct. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 |
Subsequent Event [Line Items] | |||||
Payment to acquire assets | $ 200,770 | $ 205,604 | |||
ETG Utility Operations | |||||
Subsequent Event [Line Items] | |||||
Payment to acquire assets | $ 1,700,000 | ||||
Marina | Solar assets | Subsequent event | |||||
Subsequent Event [Line Items] | |||||
Proceeds from sale of productive assets | $ 117,800 | $ 180,300 |
SUBSEQUENT EVENTS Sale of Produ
SUBSEQUENT EVENTS Sale of Productive Assets (Details) - Marina - Solar assets - USD ($) $ in Millions | 1 Months Ended | 4 Months Ended | |
Oct. 31, 2018 | Oct. 31, 2018 | Jul. 31, 2018 | |
Subsequent Event [Line Items] | |||
Consideration for Solar Renewable Energy Credits (SRECs) | $ 62.5 | ||
Subsequent event | |||
Subsequent Event [Line Items] | |||
Proceeds from sale of productive assets | $ 117.8 | $ 180.3 |
SUBSEQUENT EVENTS Rates And Reg
SUBSEQUENT EVENTS Rates And Regulatory Actions (Details) - New Jersey Board of Public Utilities - Elizabethtown Gas - USD ($) $ in Millions | Jul. 01, 2017 | Oct. 31, 2018 |
Subsequent Event [Line Items] | ||
Public utilities, requested rate increase (decrease), amount | $ 13.3 | |
Subsequent event | ||
Subsequent Event [Line Items] | ||
Public utilities, requested rate increase (decrease), amount | $ 518 |
SUBSEQUENT EVENTS Lines of Cred
SUBSEQUENT EVENTS Lines of Credit (Details) $ in Millions | Oct. 31, 2018USD ($) |
Term Loan | Subsequent event | |
Subsequent Event [Line Items] | |
Maximum borrowing capacity on term loan agreement | $ 400 |