Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 01, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-6364 | |
Entity Registrant Name | South Jersey Industries, Inc. | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 22-1901645 | |
Title of 12(b) Security | Common Stock - $1.25 par value per share | |
Trading Symbol | SJI | |
Security Exchange Name | NYSE | |
Entity Address, Address Line One | 1 South Jersey Plaza | |
Entity Address, City or Town | Folsom | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08037 | |
City Area Code | (609) | |
Local Phone Number | 561-9000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 92,390,349 | |
Entity Central Index Key | 0000091928 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
SJG Utility Operations | ||
Document Information [Line Items] | ||
Entity File Number | 000-22211 | |
Entity Registrant Name | South Jersey Gas Co | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 21-0398330 | |
Entity Address, Address Line One | 1 South Jersey Plaza | |
Entity Address, City or Town | Folsom | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08037 | |
City Area Code | (609) | |
Local Phone Number | 561-9000 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 2,339,139 | |
Entity Central Index Key | 0001035216 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Operating Revenues: | ||||
Utility | $ 231,840 | $ 201,854 | $ 838,517 | $ 645,833 |
Nonutility | 160,102 | 151,727 | 383,054 | 441,904 |
Total Operating Revenues | 266,934 | 227,330 | 904,232 | 749,275 |
Operating Expenses: | ||||
Operations | 56,608 | 58,007 | 119,434 | 105,051 |
Impairment Charges | 0 | 99,233 | 0 | 99,233 |
Maintenance | 9,273 | 6,812 | 18,903 | 13,674 |
Depreciation | 24,129 | 24,771 | 47,814 | 49,433 |
Energy and Other Taxes | 2,717 | 1,243 | 6,934 | 3,682 |
Total Operating Expenses | 258,068 | 335,862 | 760,813 | 699,937 |
Operating Income (Loss) | 8,866 | (108,532) | 143,419 | 49,338 |
Other Income and Expense | 29 | 974 | 2,604 | 3,735 |
Interest Charges | (28,434) | (19,561) | (57,087) | (33,533) |
Loss Before Income Taxes | (19,539) | (127,119) | 88,936 | 19,540 |
Income Taxes | 4,646 | 31,972 | (20,303) | (4,443) |
Equity in Earnings of Affiliated Companies | 1,589 | 1,354 | 3,762 | 2,416 |
Loss from Continuing Operations | (13,304) | (93,793) | 72,395 | 17,513 |
Loss from Discontinued Operations - (Net of tax benefit) | (95) | (26) | (157) | (92) |
Net Loss | $ (13,399) | $ (93,819) | $ 72,238 | $ 17,421 |
Basic Earnings Per Common Share: | ||||
Continuing Operations (in dollars per share) | $ (0.14) | $ (1.12) | $ 0.79 | $ 0.21 |
Discontinued Operations (in dollars per share) | 0 | 0 | 0 | 0 |
Basic Earnings Per Common Share (in dollars per share) | $ (0.14) | $ (1.12) | $ 0.79 | $ 0.21 |
Average Shares of Common Stock Outstanding - Basic (in shares) | 92,389 | 84,080 | 91,863 | 81,850 |
Diluted Earnings Per Common Share: | ||||
Continuing Operations (in dollars per share) | $ (0.14) | $ (1.12) | $ 0.79 | $ 0.21 |
Discontinued Operations (in dollars per share) | 0 | 0 | 0 | 0 |
Diluted Earnings Per Common Share (in dollars per share) | $ (0.14) | $ (1.12) | $ 0.79 | $ 0.21 |
Average Shares of Common Stock Outstanding - Diluted (in shares) | 92,389 | 84,080 | 91,979 | 82,302 |
SJG Utility Operations | ||||
Operating Revenues: | ||||
Utility | $ 47,000 | $ 64,100 | $ 280,000 | $ 258,000 |
Total Operating Revenues | 76,801 | 334,466 | 311,260 | |
Operating Expenses: | ||||
Cost of Sales - (Excluding depreciation and amortization) | 2,654 | 19,379 | 121,534 | 109,187 |
Operations | 25,194 | 27,268 | 54,291 | 56,638 |
Maintenance | 7,006 | 6,812 | 15,149 | 13,674 |
Depreciation | 16,045 | 14,401 | 31,789 | 28,764 |
Energy and Other Taxes | 1,154 | 498 | 3,143 | 1,753 |
Total Operating Expenses | 52,053 | 68,358 | 225,906 | 210,016 |
Operating Income (Loss) | 10,215 | 8,443 | 108,560 | 101,244 |
Other Income and Expense | 328 | 607 | 2,259 | 3,117 |
Interest Charges | (7,896) | (6,999) | (15,744) | (13,727) |
Loss Before Income Taxes | 2,647 | 2,051 | 95,075 | 90,634 |
Income Taxes | (671) | (482) | (24,368) | (22,318) |
Net Loss | 1,976 | 1,569 | 70,707 | 68,316 |
Gas | ||||
Operating Revenues: | ||||
Utility | 106,832 | 75,603 | 521,178 | 307,371 |
Energy Commodities and Service | ||||
Operating Expenses: | ||||
Cost of Sales - (Excluding depreciation and amortization) | 16,721 | 18,181 | 205,170 | 105,298 |
Nonutility Operations | ||||
Operating Expenses: | ||||
Cost of Sales - (Excluding depreciation and amortization) | $ 148,620 | $ 127,615 | $ 362,558 | $ 323,566 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Net Income (Loss) | $ (13,399) | $ (93,819) | $ 72,238 | $ 17,421 | |
Other Comprehensive Income, Net of Tax: | |||||
Unrealized Gain on Derivatives - Other | 8 | 16 | |||
Unrealized Gain on Derivatives - Other, under previous guidance | 8 | 17 | |||
Other Comprehensive Income - Net of Tax | [1] | 8 | 8 | 16 | 17 |
Comprehensive Loss | (13,391) | (93,811) | $ 72,254 | $ 17,438 | |
Combined statutory tax rate | 27.00% | 25.00% | |||
SJG Utility Operations | |||||
Net Income (Loss) | 1,976 | 1,569 | $ 70,707 | $ 68,316 | |
Other Comprehensive Income, Net of Tax: | |||||
Unrealized Gain on Derivatives - Other | 8 | 16 | |||
Unrealized Gain on Derivatives - Other, under previous guidance | 8 | 17 | |||
Other Comprehensive Income - Net of Tax | [2] | 8 | 8 | 16 | 17 |
Comprehensive Loss | $ 1,984 | $ 1,577 | $ 70,723 | $ 68,333 | |
Combined statutory tax rate | 27.00% | 25.00% | |||
[1] | Determined using a combined average statutory tax rate of approximately 27% and 25% in 2019 and 2018, respectively. | ||||
[2] | Determined using a combined average statutory tax rate of approximately 27% and 25% in 2019 and 2018, respectively. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Net Cash Provided by Operating Activities | $ 216,079 | $ 152,828 |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (256,587) | (125,973) |
Acquisition-related Working Capital Settlement | 15,600 | 0 |
Proceeds from Sale of Property, Plant & Equipment | 24,292 | 0 |
Investment in Long-Term Receivables | (6,585) | (3,947) |
Proceeds from Long-Term Receivables | 4,983 | 5,035 |
Purchase of Company-Owned Life Insurance | 0 | (574) |
Investment in Affiliates | (3,088) | (8,413) |
Advances to Affiliates | (858) | 0 |
Net Repayment of Notes Receivable - Affiliates | 0 | 2,006 |
Net Cash Used in Investing Activities | (222,243) | (131,866) |
Cash Flows from Financing Activities: | ||
Net Borrowings from (Repayments of) Short-Term Credit Facilities | 409,502 | (10,000) |
Proceeds from Issuance of Long-Term Debt | 10,000 | 1,592,500 |
Principal Repayments of Long-Term Debt | (575,000) | 0 |
Payments for Issuance of Long-Term Debt | (1,275) | (13,821) |
Net Settlement of Restricted Stock | 0 | (776) |
Dividends on Common Stock | (26,562) | (22,292) |
Proceeds from Sale of Common Stock | 189,032 | 173,750 |
Payments for the Issuance of Common Stock | 0 | (6,554) |
Net Cash Provided by Financing Activities | 5,697 | 1,712,807 |
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash | (467) | 1,733,769 |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 31,679 | 39,695 |
Cash, Cash Equivalents and Restricted Cash at End of Period | 31,212 | 1,773,464 |
SJG Utility Operations | ||
Net Cash Provided by Operating Activities | 126,275 | 85,263 |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (124,122) | (113,226) |
Investment in Long-Term Receivables | (6,585) | (3,947) |
Proceeds from Long-Term Receivables | 4,983 | 5,035 |
Net Cash Used in Investing Activities | (125,724) | (112,138) |
Cash Flows from Financing Activities: | ||
Net Borrowings from (Repayments of) Short-Term Credit Facilities | (4,398) | 24,400 |
Proceeds from Issuance of Long-Term Debt | 10,000 | 0 |
Payments from Issuance of Long-Term Debt | 0 | (5) |
Net Cash Provided by Financing Activities | 5,602 | 24,395 |
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash | 6,153 | (2,480) |
Cash, Cash Equivalents and Restricted Cash at Beginning of Period | 3,262 | 4,619 |
Cash, Cash Equivalents and Restricted Cash at End of Period | $ 9,415 | $ 2,139 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment: | ||
Utility Plant, at original cost | $ 4,660,845 | $ 4,341,113 |
Accumulated Depreciation | (815,987) | (787,243) |
Nonutility Property and Equipment, at cost | 151,628 | 152,232 |
Accumulated Depreciation | (54,845) | (52,629) |
Property, Plant and Equipment - Net | 3,941,641 | 3,653,473 |
Investments: | ||
Available-for-Sale Securities | 41 | 41 |
Restricted Investments | 19,019 | 1,649 |
Investment in Affiliates | 81,759 | 76,122 |
Total Investments | 100,819 | 77,812 |
Current Assets: | ||
Cash and Cash Equivalents | 12,193 | 30,030 |
Accounts Receivable | 223,314 | 337,502 |
Unbilled Revenues | 21,253 | 79,538 |
Provision for Uncollectibles | (20,508) | (18,842) |
Notes Receivable - Affiliate | 2,804 | 1,945 |
Natural Gas in Storage, average cost | 49,431 | 60,425 |
Materials and Supplies, average cost | 1,751 | 1,743 |
Prepaid Taxes | 38,982 | 30,694 |
Derivatives - Energy Related Assets | 34,988 | 54,021 |
Assets Held For Sale | 28,696 | 59,588 |
Other Prepayments and Current Assets | 36,056 | 26,548 |
Total Current Assets | 428,960 | 663,192 |
Regulatory and Other Noncurrent Assets: | ||
Regulatory Assets | 682,264 | 662,969 |
Derivatives - Energy Related Assets | 11,883 | 7,169 |
Notes Receivable - Affiliate | 13,275 | 13,275 |
Contract Receivables | 29,325 | 27,961 |
Goodwill | 703,864 | 734,607 |
Other | 116,231 | 116,119 |
Total Regulatory and Other Noncurrent Assets | 1,556,842 | 1,562,100 |
Total Assets | 6,028,262 | 5,956,577 |
Equity: | ||
Common Stock | 115,488 | 106,883 |
Premium on Common Stock | 1,024,974 | 843,268 |
Treasury Stock (at par) | (283) | (292) |
Accumulated Other Comprehensive Loss | (26,079) | (26,095) |
Retained Earnings | 362,372 | 343,258 |
Total Equity | 1,476,472 | 1,267,022 |
Long-Term Debt | 1,798,551 | 2,106,863 |
Total Capitalization | 3,275,023 | 3,373,885 |
Current Liabilities: | ||
Notes Payable | 680,002 | 270,500 |
Current Portion of Long-Term Debt | 478,909 | 733,909 |
Accounts Payable | 288,881 | 410,463 |
Customer Deposits and Credit Balances | 33,427 | 32,058 |
Environmental Remediation Costs | 53,230 | 47,592 |
Taxes Accrued | 2,671 | 5,881 |
Derivatives - Energy Related Liabilities | 35,229 | 24,134 |
Deferred Contract Revenues | 1,772 | 1,772 |
Derivatives - Other Current | 1,092 | 588 |
Dividends Payable | 26,562 | 0 |
Interest Accrued | 13,895 | 14,208 |
Pension Benefits | 3,632 | 3,631 |
Other Current Liabilities | 26,766 | 36,102 |
Total Current Liabilities | 1,646,068 | 1,580,838 |
Deferred Credits and Other Noncurrent Liabilities: | ||
Deferred Income Taxes - Net | 89,450 | 85,836 |
Pension and Other Postretirement Benefits | 111,134 | 110,112 |
Environmental Remediation Costs | 201,381 | 206,058 |
Asset Retirement Obligations | 206,741 | 80,163 |
Derivatives - Energy Related Liabilities | 7,278 | 7,256 |
Derivatives - Other Noncurrent | 11,449 | 7,285 |
Regulatory Liabilities | 457,958 | 478,499 |
Other | 21,780 | 26,645 |
Total Deferred Credits and Other Noncurrent Liabilities | 1,107,171 | 1,001,854 |
Commitments and Contingencies (Note 11) | ||
Total Capitalization and Liabilities | 6,028,262 | 5,956,577 |
SJG Utility Operations | ||
Property, Plant and Equipment: | ||
Utility Plant, at original cost | 3,020,518 | 2,907,202 |
Accumulated Depreciation | (546,149) | (523,743) |
Property, Plant and Equipment - Net | 2,474,369 | 2,383,459 |
Investments: | ||
Restricted Investments | 7,798 | 1,278 |
Total Investments | 7,798 | 1,278 |
Current Assets: | ||
Cash and Cash Equivalents | 1,617 | 1,984 |
Accounts Receivable | 90,190 | 101,572 |
Accounts Receivable - Related Parties | 203 | 2,442 |
Unbilled Revenues | 8,415 | 43,271 |
Provision for Uncollectibles | (13,724) | (13,643) |
Natural Gas in Storage, average cost | 13,270 | 16,336 |
Materials and Supplies, average cost | 619 | 619 |
Prepaid Taxes | 28,475 | 28,772 |
Derivatives - Energy Related Assets | 1,829 | 5,464 |
Other Prepayments and Current Assets | 20,500 | 11,280 |
Total Current Assets | 151,394 | 198,097 |
Regulatory and Other Noncurrent Assets: | ||
Regulatory Assets | 499,864 | 492,365 |
Long-Term Receivables | 27,126 | 25,531 |
Derivatives - Energy Related Assets | 0 | 15 |
Other | 23,159 | 17,491 |
Total Regulatory and Other Noncurrent Assets | 550,149 | 535,402 |
Total Assets | 3,183,710 | 3,118,236 |
Equity: | ||
Common Stock | 5,848 | 5,848 |
Premium on Common Stock | 355,744 | 355,744 |
Accumulated Other Comprehensive Loss | (22,341) | (22,357) |
Retained Earnings | 739,494 | 668,787 |
Total Equity | 1,078,745 | 1,008,022 |
Long-Term Debt | 564,808 | 874,507 |
Total Capitalization | 1,643,553 | 1,882,529 |
Current Liabilities: | ||
Notes Payable | 103,102 | 107,500 |
Current Portion of Long-Term Debt | 338,909 | 18,909 |
Accounts Payable - Commodity | 34,065 | 48,490 |
Accounts Payable - Other | 43,577 | 52,966 |
Accounts Payable - Related Parties | 6,265 | 12,563 |
Customer Deposits and Credit Balances | 22,683 | 23,862 |
Environmental Remediation Costs | 39,860 | 33,022 |
Taxes Accrued | 2,141 | 1,891 |
Derivatives - Energy Related Liabilities | 5,996 | 2,146 |
Derivatives - Other Current | 464 | 343 |
Interest Accrued | 7,117 | 7,134 |
Pension Benefits | 3,597 | 3,597 |
Other Current Liabilities | 7,664 | 9,444 |
Total Current Liabilities | 615,440 | 321,867 |
Deferred Credits and Other Noncurrent Liabilities: | ||
Deferred Income Taxes - Net | 350,500 | 325,886 |
Pension and Other Postretirement Benefits | 97,970 | 96,053 |
Environmental Remediation Costs | 110,491 | 115,049 |
Asset Retirement Obligations | 81,631 | 79,890 |
Derivatives - Energy Related Liabilities | 297 | 43 |
Derivatives - Other Noncurrent | 7,236 | 5,524 |
Regulatory Liabilities | 272,370 | 286,539 |
Other | 4,222 | 4,856 |
Total Deferred Credits and Other Noncurrent Liabilities | 924,717 | 913,840 |
Total Capitalization and Liabilities | $ 3,183,710 | $ 3,118,236 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | SJG Utility Operations | Post-Retirement LiabilitySJG Utility Operations | Common Stock | Common StockSJG Utility Operations | Premium on Common Stock | Premium on Common StockSJG Utility Operations | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossSJG Utility Operations | Retained Earnings | Retained EarningsSJG Utility Operations | Postretirement Liability Adjustment | Postretirement Liability AdjustmentSJG Utility Operations | Unrealized Gain (Loss) on Derivatives-Other | [1] | Unrealized Gain (Loss) on Derivatives-OtherSJG Utility Operations | [2] | Unrealized Gain (Loss) on Available-for-Sale Securities | Other Comprehensive Income (Loss) of Affiliated Companies | ||
Beginning balance at Dec. 31, 2017 | $ 1,192,409 | $ 921,433 | $ 99,436 | $ 5,848 | $ 709,658 | $ 355,744 | $ (271) | $ (36,765) | $ (25,997) | $ 420,351 | $ 585,838 | $ (36,262) | $ (25,507) | $ (396) | $ (490) | $ (10) | $ (97) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Net Income (Loss) | 111,240 | 66,747 | 111,240 | 66,747 | ||||||||||||||||||
Other Comprehensive Income, Net of Tax | 9 | 9 | 9 | 9 | 0 | 0 | 9 | 9 | 0 | 0 | ||||||||||||
Common Stock Issued or Granted Through Equity Offering or Stock Plans | 175 | 80 | 98 | (3) | ||||||||||||||||||
Cash Dividends Declared - Common Stock (usd per share) | (22,336) | (22,336) | ||||||||||||||||||||
Ending balance at Mar. 31, 2018 | 1,281,497 | 988,189 | 99,516 | 5,848 | 709,756 | 355,744 | (274) | (36,756) | (25,988) | 509,255 | 652,585 | (36,262) | (25,507) | (387) | (481) | (10) | (97) | |||||
Beginning balance at Dec. 31, 2017 | 1,192,409 | 921,433 | 99,436 | 5,848 | 709,658 | 355,744 | (271) | (36,765) | (25,997) | 420,351 | 585,838 | (36,262) | (25,507) | (396) | (490) | (10) | (97) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||
Changes During Period | 9 | 9 | 9 | 9 | 0 | 0 | 9 | 9 | 0 | 0 | ||||||||||||
Ending balance at Mar. 31, 2018 | 1,281,497 | 988,189 | 99,516 | 5,848 | 709,756 | 355,744 | (274) | (36,756) | (25,988) | 509,255 | 652,585 | (36,262) | (25,507) | (387) | (481) | (10) | (97) | |||||
Beginning balance at Dec. 31, 2017 | 1,192,409 | 921,433 | 99,436 | 5,848 | 709,658 | 355,744 | (271) | (36,765) | (25,997) | 420,351 | 585,838 | (36,262) | (25,507) | (396) | (490) | (10) | (97) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Other Comprehensive Income, Net of Tax | 17 | [3] | 17 | [4] | ||||||||||||||||||
Ending balance at Jun. 30, 2018 | 1,303,717 | 989,766 | 106,882 | 5,848 | 842,327 | 355,744 | (282) | (36,748) | (25,980) | 391,538 | 654,154 | (36,262) | (25,507) | (379) | (473) | (10) | (97) | |||||
Beginning balance at Dec. 31, 2017 | 1,192,409 | 921,433 | 99,436 | 5,848 | 709,658 | 355,744 | (271) | (36,765) | (25,997) | 420,351 | 585,838 | (36,262) | (25,507) | (396) | (490) | (10) | (97) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||
Changes During Period | 17 | [3] | 17 | [4] | ||||||||||||||||||
Ending balance at Jun. 30, 2018 | $ 1,303,717 | $ 989,766 | 106,882 | 5,848 | 842,327 | 355,744 | (282) | (36,748) | (25,980) | 391,538 | 654,154 | (36,262) | (25,507) | (379) | (473) | (10) | (97) | |||||
Additional Statement Information [Abstract] | ||||||||||||||||||||||
Combined statutory tax rate | 25.00% | 25.00% | 25.00% | |||||||||||||||||||
Beginning balance at Mar. 31, 2018 | $ 1,281,497 | $ 988,189 | 99,516 | 5,848 | 709,756 | 355,744 | (274) | (36,756) | (25,988) | 509,255 | 652,585 | (36,262) | (25,507) | (387) | (481) | (10) | (97) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Net Income (Loss) | (93,819) | 1,569 | (93,819) | 1,569 | ||||||||||||||||||
Other Comprehensive Income, Net of Tax | 8 | [3] | 8 | [4] | 8 | 8 | 0 | 0 | 8 | 8 | 0 | 0 | ||||||||||
Common Stock Issued or Granted Through Equity Offering or Stock Plans | 139,929 | 7,366 | 132,571 | (8) | ||||||||||||||||||
Cash Dividends Declared - Common Stock (usd per share) | (23,898) | (23,898) | ||||||||||||||||||||
Ending balance at Jun. 30, 2018 | 1,303,717 | 989,766 | 106,882 | 5,848 | 842,327 | 355,744 | (282) | (36,748) | (25,980) | 391,538 | 654,154 | (36,262) | (25,507) | (379) | (473) | (10) | (97) | |||||
Beginning balance at Mar. 31, 2018 | 1,281,497 | 988,189 | 99,516 | 5,848 | 709,756 | 355,744 | (274) | (36,756) | (25,988) | 509,255 | 652,585 | (36,262) | (25,507) | (387) | (481) | (10) | (97) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||
Changes During Period | 8 | [3] | 8 | [4] | 8 | 8 | 0 | 0 | 8 | 8 | 0 | 0 | ||||||||||
Ending balance at Jun. 30, 2018 | 1,303,717 | 989,766 | 106,882 | 5,848 | 842,327 | 355,744 | (282) | (36,748) | (25,980) | 391,538 | 654,154 | (36,262) | (25,507) | (379) | (473) | (10) | (97) | |||||
Beginning balance at Dec. 31, 2018 | 1,267,022 | 1,008,022 | 106,883 | 5,848 | 843,268 | 355,744 | (292) | (26,095) | (22,357) | 343,258 | 668,787 | (25,626) | (21,901) | (362) | (456) | (10) | (97) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Net Income (Loss) | 85,637 | 68,731 | 85,637 | 68,731 | ||||||||||||||||||
Other Comprehensive Income, Net of Tax | 8 | 8 | 8 | 8 | 0 | 0 | 8 | 8 | 0 | 0 | ||||||||||||
Common Stock Issued or Granted Through Equity Offering or Stock Plans | 188,449 | 8,603 | 179,829 | 17 | ||||||||||||||||||
Cash Dividends Declared - Common Stock (usd per share) | (26,562) | (26,562) | ||||||||||||||||||||
Ending balance at Mar. 31, 2019 | 1,514,554 | 1,076,761 | 115,486 | 5,848 | 1,023,097 | 355,744 | (275) | (26,087) | (22,349) | 402,333 | 737,518 | (25,626) | (21,901) | (354) | (448) | (10) | (97) | |||||
Beginning balance at Dec. 31, 2018 | 1,267,022 | 1,008,022 | 106,883 | 5,848 | 843,268 | 355,744 | (292) | (26,095) | (22,357) | 343,258 | 668,787 | (25,626) | (21,901) | (362) | (456) | (10) | (97) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||
Changes During Period | 8 | 8 | 8 | 8 | 0 | 0 | 8 | 8 | 0 | 0 | ||||||||||||
Ending balance at Mar. 31, 2019 | 1,514,554 | 1,076,761 | 115,486 | 5,848 | 1,023,097 | 355,744 | (275) | (26,087) | (22,349) | 402,333 | 737,518 | (25,626) | (21,901) | (354) | (448) | (10) | (97) | |||||
Beginning balance at Dec. 31, 2018 | 1,267,022 | 1,008,022 | 106,883 | 5,848 | 843,268 | 355,744 | (292) | (26,095) | (22,357) | 343,258 | 668,787 | (25,626) | (21,901) | (362) | (456) | (10) | (97) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Other Comprehensive Income, Net of Tax | 16 | [3] | 16 | [4] | 0 | 0 | 0 | |||||||||||||||
Ending balance at Jun. 30, 2019 | 1,476,472 | 1,078,745 | 115,488 | 5,848 | 1,024,974 | 355,744 | (283) | (26,079) | (22,341) | 362,372 | 739,494 | (25,626) | (21,901) | (346) | (440) | (10) | (97) | |||||
Beginning balance at Dec. 31, 2018 | 1,267,022 | 1,008,022 | 106,883 | 5,848 | 843,268 | 355,744 | (292) | (26,095) | (22,357) | 343,258 | 668,787 | (25,626) | (21,901) | (362) | (456) | (10) | (97) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||
Changes During Period | 16 | [3] | 16 | [4] | 0 | 0 | 0 | |||||||||||||||
Ending balance at Jun. 30, 2019 | $ 1,476,472 | $ 1,078,745 | 115,488 | 5,848 | 1,024,974 | 355,744 | (283) | (26,079) | (22,341) | 362,372 | 739,494 | (25,626) | (21,901) | (346) | (440) | (10) | (97) | |||||
Additional Statement Information [Abstract] | ||||||||||||||||||||||
Combined statutory tax rate | 27.00% | 27.00% | 27.00% | |||||||||||||||||||
Beginning balance at Mar. 31, 2019 | $ 1,514,554 | $ 1,076,761 | 115,486 | 5,848 | 1,023,097 | 355,744 | (275) | (26,087) | (22,349) | 402,333 | 737,518 | (25,626) | (21,901) | (354) | (448) | (10) | (97) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||
Net Income (Loss) | (13,399) | 1,976 | (13,399) | 1,976 | ||||||||||||||||||
Other Comprehensive Income, Net of Tax | 8 | [3] | 8 | [4] | 8 | 8 | 0 | 0 | 8 | 8 | 0 | 0 | ||||||||||
Common Stock Issued or Granted Through Equity Offering or Stock Plans | 1,871 | 2 | 1,877 | (8) | ||||||||||||||||||
Cash Dividends Declared - Common Stock (usd per share) | (26,562) | (26,562) | ||||||||||||||||||||
Ending balance at Jun. 30, 2019 | 1,476,472 | 1,078,745 | 115,488 | 5,848 | 1,024,974 | 355,744 | (283) | (26,079) | (22,341) | 362,372 | 739,494 | (25,626) | (21,901) | (346) | (440) | (10) | (97) | |||||
Beginning balance at Mar. 31, 2019 | 1,514,554 | 1,076,761 | 115,486 | 5,848 | 1,023,097 | 355,744 | (275) | (26,087) | (22,349) | 402,333 | 737,518 | (25,626) | (21,901) | (354) | (448) | (10) | (97) | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||
Changes During Period | 8 | [3] | 8 | [4] | 8 | 8 | 0 | 0 | 8 | 8 | 0 | 0 | ||||||||||
Ending balance at Jun. 30, 2019 | $ 1,476,472 | $ 1,078,745 | $ 115,488 | $ 5,848 | $ 1,024,974 | $ 355,744 | $ (283) | $ (26,079) | $ (22,341) | $ 362,372 | $ 739,494 | $ (25,626) | $ (21,901) | $ (346) | $ (440) | $ (10) | $ (97) | |||||
[1] | (A) Determined using a combined average statutory tax rate of 27% for 2019 and 25% for 2018. | |||||||||||||||||||||
[2] | (A) Determined using a combined average statutory tax rate of 27% for 2019 and 25% for 2018. | |||||||||||||||||||||
[3] | Determined using a combined average statutory tax rate of approximately 27% and 25% in 2019 and 2018, respectively. | |||||||||||||||||||||
[4] | Determined using a combined average statutory tax rate of approximately 27% and 25% in 2019 and 2018, respectively. |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) - Parenthetical - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash Dividends Declared - Common Stock (usd per share) | $ 0.29 | $ 0.28 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: GENERAL - SJI provides a variety of energy-related products and services primarily through the following wholly-owned subsidiaries: ▪ SJIU is a holding company that owns SJG, and, as of July 1, 2018, ETG and 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. ▪ SJE acquires and markets electricity to retail end users. In November 2018, the Company sold SJE's retail gas businesses. ▪ SJRG markets natural gas storage, commodity and transportation assets along with fuel management services on a wholesale basis in the mid-Atlantic, Appalachian and southern states. ▪ SJEX owns oil, gas and mineral rights in the Marcellus Shale region of Pennsylvania. ▪ Marina develops and operates on-site energy-related projects. The significant wholly-owned subsidiaries of Marina include: • ACB, which owns and operates a natural gas fueled combined heating, cooling and power facility located in Atlantic City, New Jersey. • ACLE, BCLE, SCLE and SXLE, which own and operate LFGTE production facilities in Atlantic, Burlington, Salem and Sussex Counties located in New Jersey. ▪ SJESP receives commissions on service contracts from a third party. ▪ 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 direct and indirect wholly-owned subsidiaries (including SJG) and subsidiaries in which SJI has a controlling interest. All significant intercompany accounts and transactions have been eliminated in consolidation. Beginning as of the date of their acquisition, July 1, 2018, SJI is also reporting on a consolidated basis the combined operations of ETG and ELK. As permitted by the rules and regulations of the SEC, the accompanying unaudited condensed consolidated financial statements of SJI and SJG contain certain condensed financial information and exclude certain footnote disclosures normally included in annual audited consolidated financial statements prepared in accordance with GAAP. These financial statements should be read in conjunction with SJI’s and SJG's Annual Reports on Form 10-K for the year ended December 31, 2018 . In management’s opinion, the condensed consolidated financial statements of SJI and SJG reflect all normal recurring adjustments needed to fairly present their respective financial positions, operating results and cash flows at the dates and for the periods presented. SJI’s and SJG's businesses are subject to seasonal fluctuations and, accordingly, this interim financial information should not be the basis for estimating the full year’s operating results. 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 $1.72 billion (see Note 17). 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 agreed to 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 across New Jersey, Maryland, Massachusetts and Vermont (the “Projects”), along with the assets comprising the Projects. The sale of individual Projects is occurring on a rolling basis as the conditions precedent to each closing are satisfied. Also in connection with the Transaction, Marina is leasing 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. During the first six months of 2019, seven projects were sold for total consideration of $24.3 million . The Company currently has one other project that is part of the Transaction and has not yet closed, but is expected to close in 2019. The Company also has two projects that are not part of the Transaction but are also expected to be sold in 2019. The value of all unsold solar assets is $28.7 million and is recorded as Assets Held For Sale on the condensed consolidated balance sheets as of June 30, 2019 , where they will remain until they are transferred to a buyer. 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 FASB ASC Topic 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 Income 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. No impairments were identified at SJI for the three and six months ended June 30, 2019 . SJI recorded an impairment charge within the on-site energy production segment of $99.2 million (pre-tax) during the three and six months ended June 30, 2018 , which was recorded in Impairment Charges on the condensed consolidated statements of income. This impairment charge was the result of the transaction described above under "Agreement to Sell Solar Assets" triggering an indicator of impairment 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. No impairments were identified at SJG for the three and six months ended June 30, 2019 and 2018, 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 six months ended June 30, 2019 or 2018 . As of both June 30, 2019 and December 31, 2018 , $8.6 million related to interests in proved and unproved properties in Pennsylvania, net of amortization, is included with Nonutility Property and Equipment and Other Noncurrent Assets on the condensed consolidated balance sheets. TREASURY STOCK - SJI uses the par value method of accounting for treasury stock. As of June 30, 2019 and December 31, 2018 , SJI held 226,245 and 233,482 shares of treasury stock, respectively. These shares are related to deferred compensation arrangements where the amounts earned are held in the stock of SJI. AFUDC - SJI and SJG record AFUDC, which represents the estimated debt and equity costs of capital funds that are necessary to finance the construction of new 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 FASB ASC Topic 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. 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 - See Note 18. AMA - On July 1, 2018, SJRG purchased from a third party an AMA whereby SJRG manages the pipeline capacity of ETG. Total cash payment was $11.3 million . The AMA expires on March 31, 2022. Under the AMA, SJRG pays ETG an annual fee of $4.25 million , plus additional profit sharing as defined in the AMA. The amounts received by ETG are credited to its BGSS clause and returned to its ratepayers. The total purchase price was allocated as follows (in thousands): Natural Gas in Storage $ 9,685 Intangible Asset 19,200 Profit Sharing - Other Liabilities (17,546 ) Total Consideration $ 11,339 As of June 30, 2019 and December 31, 2018, the balance of the intangible asset is $14.1 million and $16.6 million , respectively, and is recorded to Other Current and Noncurrent Assets on the condensed consolidated balance sheets of SJI, with the reduction being due to amortization. As of June 30, 2019 and December 31, 2018, the balance in the liability is $12.8 million and $17.0 million and is recorded to Regulatory Liabilities on the condensed consolidated balance sheets of SJI, with the change resulting from profit sharing earned. CURRENT PORTION OF LONG-TERM DEBT - As of June 30, 2019 and December 31, 2018, SJI had $478.9 million and $733.9 million , respectively, of long-term debt that is due within one year. The decrease is due to $575.0 million of long-term debt that was paid down in 2019 (see Note 14), partially offset by SJG's term loan of $320.0 million becoming due in April 2020 and classified as current on the condensed consolidated balance sheets. SJI expects to further reduce its debt in 2019 using cash provided from the sale of the remaining solar assets, along with the sale of other assets considered non-core to its business. The remaining long-term debt that is due within one year is expected to be paid by utilizing funds provided from refinancing activity and from the Company's revolving credit facilities. AOCL - SJI and SJG release income tax effects from AOCL on an individual unit of account basis. NEW ACCOUNTING PRONOUNCEMENTS - Other than as described below, no new accounting pronouncement had, or is expected to have, a material impact on the condensed consolidated financial statements of SJI, or the condensed financial statements of SJG. 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 accounted for as operating leases. Topic 842 also resulted 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 (ASU 2018-01) 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 ASUs 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. • In December 2018, the FASB issued ASU 2018-20, Narrow-Scope Improvements for Lessors . The amendments in this ASU permit lessors, as an accounting policy election, to not evaluate whether certain sales taxes and other similar taxes are lessor costs or lessee costs. A lessor making this election will exclude from the consideration in the contract all collections from lessees of taxes within the scope of the election and will provide certain disclosures. The amendments in this ASU related to certain lessor costs also require lessors to exclude from variable payments, and therefore revenue, lessor costs paid by lessees directly to third parties, and require lessors to account for costs excluded from the consideration of a contract that are paid by the lessor and reimbursed by the lessee as variable payments, and record those reimbursed costs as revenue. Lastly, the amendments in this ASU related to recognizing variable payments for contracts with lease and nonlease components require lessors to allocate (rather than recognize as currently required) certain variable payments to the lease and nonlease components when the changes in facts and circumstances on which the variable payment is based occur. • In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842) Codification Improvements . The amendments in this ASU reinstate a Topic 840 explicit exception for lessors that are not manufacturers or dealers for determining fair value of the leased property in Topic 842. This exception specifies that such lessors will use their cost, reflecting any volume or trade discounts that may apply, as the fair value of the underlying asset. However, if significant time lapses between the acquisition of the underlying asset and lease commencement, those lessors will be required to apply the definition of fair value (exit price) in Topic 820. Lastly, the amendments in this ASU added an explicit exception to the Topic 250, Accounting Changes and Error Corrections , paragraph 250-10-50-3 interim disclosure requirements in the Topic 842 transition disclosure requirements. The new guidance in ASU 2016-02, as well as all amendments discussed above, was effective for the Company beginning on January 1, 2019. The impact of adopting Topic 842 did not result in an adjustment to retained earnings as of January 1, 2019. As of January 1, 2019, the Company designed the necessary changes to its existing processes and configured all system requirements to adopt the new standard and applied its provisions to all contracts using the optional transition method discussed above, and by applying certain transition practical expedients. The Company elected the “package of practical expedients,” which permits the Company to not reassess under Topic 842 the Company’s prior conclusions about lease identification, lease classification and initial direct costs. The Company also elected the expedient not to evaluate existing or expired land easements under Topic 842 that were not previously accounted for as leases. The Company has elected not to use hindsight when determining the lease term at the effective date. The Company elected the short-term lease recognition exemption for all leases that qualify. For the leases that qualify, including leases effective at adoption, the Company will not recognize right-of-use assets or lease liabilities. The Company has elected the practical expedient to not separate lease and non-lease components for all leases. The Company’s non-lease components are primarily related to property maintenance on real estate leases, which varies based on future outcomes, and thus is recognized in rent expense when incurred. Additionally, the Company elected to apply a portfolio approach when establishing the discount rate for certain of its leases. The Company has leases for the following classes of underlying assets: equipment, real estate (land and building), and fleet vehicles. After adopting Topic 842, SJI and SJG had operating right-of-use assets of approximately $3.1 million and $0.5 million , respectively, as of January 1, 2019, with operating lease liabilities of the same amounts. The Company did not have any finance leases. The Company determines the initial classification and measurement of its right-of-use assets and lease liabilities at the lease commencement date and thereafter if modified. The lease term includes any renewal options that the Company is reasonably certain to exercise. The present value of lease payments is determined by using the interest rate implicit in the lease, if that rate is readily determinable. Otherwise, the Company uses its incremental borrowing rate, which is determined by using a portfolio approach based on the rate of interest in its existing collateralized term loan facility adjusted for lease term. Rent expense for operating leases is recognized on a straight-line basis over the reasonably certain lease term based on the total lease payments and is included in Operations Expense in the condensed consolidated statements of income. For all leases, rent payments that are based on a fixed index or rate are included in the measurement of right-of-use assets and lease liabilities using the index or rate at the lease commencement date. Rent payments that vary based on changes in future indexes or rates are expensed in the period incurred. For more information on the Company's leases, see Note 19. 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 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 October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities . The amendments in this ASU for determining whether a decision-making fee is a variable interest require reporting entities to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety (as currently required by GAAP). These amendments will create alignment between determining whether a decision-making fee is a variable interest and determining whether a reporting entity within a related party group is the primary beneficiary of a VIE. The standard is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2019 for public companies. 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 April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments . The amendments in this ASU provide codification improvements and further clarification on several topics, including ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , as well as ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) . Since SJI and SJG have adopted the amendments in ASU 2017-12 (with no impact to the financial statements results of SJI or SJG) as of April 25, 2019 (the issuance date of ASU 2019-04), the effective date for the amendments to Topic 815 contained in ASU 2019-04 is as of the beginning of the first annual reporting period beginning after April 25, 2019. Early adoption is permitted, including adoption on any date on or after April 25, 2019. The amendments are effective for fiscal years and interim periods beginning after December 15, 2019. Early adoption in any interim period is permitted. Management is currently determining the impact that adoption of this guidance will have on the financial statements of SJI and SJG. In May 2019, the FASB issued ASU 2019-05, Financial Instruments - Credit Losses (Topic 326) . The amendments in this ASU provide optional targeted transition relief for entities adopting the provisions of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) , which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in ASU 2019-05 provide entities that have certain instruments within the scope of Subtopic 326-20, Financial Instruments - Credit Losses - Measured at Amortized Cost , with an option to irrevocably elect the fair value option in Subtopic 825-10, Financial Instruments - Overall , applied on an instrument-by-instrument basis for eligible instruments, upon adoption of Topic 326. The fair value option election does not apply to held-to-maturity debt securities. An entity that elects the fair value option should subsequently apply the guidance in Subtopics 820-10, Fair Value Measurement - Overall , and 825-10. The amendments in ASU 2019-05, along with ASU 2016-13, are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Management is currently determining the impact that adoption of this guidance will have on the financial statements of SJI and SJG. |
STOCK-BASED COMPENSATION PLAN
STOCK-BASED COMPENSATION PLAN | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION PLAN | STOCK-BASED COMPENSATION PLAN: Under SJI's 2015 Omnibus Equity Compensation Plan (Plan), shares may be issued to SJI’s officers (Officers), non-employee directors (Directors) and other key employees. No options were granted or outstanding during the six months ended June 30, 2019 and 2018 . No stock appreciation rights have been issued under the Plan. During the six months ended June 30, 2019 and 2018 , SJI granted 181,387 and 197,844 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 an 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 solely contingent upon the service requirement being met in years one , two , and three of the grant. During the six months ended June 30, 2019 and 2018 , Officers and other key employees were granted 85,146 and 64,712 shares of time-based restricted stock, respectively, which are included in the shares noted above. Grants containing market-based performance targets use SJI's TSR relative to a peer group to measure performance. As TSR-based grants are contingent upon market and service conditions, SJI is required to measure and recognize stock-based compensation expense based on the fair value at the date of grant on a straight-line basis over the requisite three year period of each award. In addition, SJI identifies specific forfeitures of share-based awards, and compensation expense is adjusted accordingly over the requisite service period. Compensation expense is not adjusted based on the actual achievement of performance goals. The fair value of TSR-based restricted stock awards on the date of grant is estimated using a Monte Carlo simulation model. Earnings-based performance targets include pre-defined EGR and ROE goals to measure performance. Performance targets include pre-defined CEGR for SJI. As EGR-based, ROE-based and CEGR-based grants are contingent upon performance and service conditions, SJI is required to measure and recognize stock-based compensation expense based on the fair value at the date of grant over the requisite three year period of each award. The fair value is measured as the market price at the date of grant. The initial accruals of compensation expense are based on the estimated number of shares expected to vest, assuming the requisite service is rendered and probable outcome of the performance condition is achieved. That estimate is revised if subsequent information indicates that the actual number of shares is likely to differ from previous estimates. Compensation expense is ultimately adjusted based on the actual achievement of service and performance targets. During the six months ended June 30, 2019 and 2018 , SJI granted 30,028 and 26,416 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 June 30, 2019 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 - 2017 - TSR 41,103 $ 32.17 20.8 % 1.47 % 2017 - CEGR, Time 54,677 $ 33.69 N/A N/A 2018 - TSR 51,731 $ 31.05 21.9 % 2.00 % 2018 - CEGR, Time 86,038 $ 31.23 N/A N/A 2019 - TSR 38,934 $ 32.88 23.2 % 2.40 % 2019 - CEGR, Time 139,663 $ 31.26 N/A N/A Directors - 2019 30,028 $ 26.89 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 six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Officers & Key Employees $ 1,534 $ 1,090 $ 2,284 $ 2,190 Directors 202 206 404 412 Total Cost 1,736 1,296 2,688 2,602 Capitalized 47 (101 ) (34 ) (202 ) Net Expense $ 1,783 $ 1,195 $ 2,654 $ 2,400 As of June 30, 2019 , there was $8.6 million of total unrecognized compensation cost related to nonvested stock-based compensation awards granted under the Plan. That cost is expected to be recognized over a weighted average period of 1.9 years. The following table summarizes information regarding restricted stock award activity for SJI during the six months ended June 30, 2019 , excluding accrued dividend equivalents: Officers and Other Key Employees Directors Weighted Average Fair Value Nonvested Shares Outstanding, January 1, 2019 411,809 26,416 $ 29.57 Granted 181,387 30,028 $ 30.94 Cancelled/Forfeited (33,516 ) — $ 31.60 Vested (147,534 ) (26,416 ) $ 26.04 Nonvested Shares Outstanding, June 30, 2019 412,146 30,028 $ 31.46 During the six months ended June 30, 2019 and 2018 , SJI awarded 125,288 shares to its Officers and other key employees at a market value of $3.7 million , and 66,894 shares at a market value of $2.0 million , respectively. During the six months ended June 30, 2019 and 2018 , SJI also awarded 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. SJG - Officers and other key employees of SJG participate in the stock-based compensation plans of SJI. During the six months ended June 30, 2019 and 2018, SJG officers and other key employees were granted 6,095 and 32,185 shares of SJI restricted stock, respectively. The cost of outstanding stock awards for SJG during the six months ended June 30, 2019 and 2018 was $0.1 million and $0.3 million , respectively. Approximately 65% |
AFFILIATIONS, DISCONTINUED OPER
AFFILIATIONS, DISCONTINUED OPERATIONS AND RELATED-PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
AFFILIATIONS, DISCONTINUED OPERATIONS AND RELATED-PARTY TRANSACTIONS | AFFILIATIONS, DISCONTINUED OPERATIONS AND RELATED-PARTY TRANSACTIONS: AFFILIATIONS — The following affiliated entities are accounted for under the equity method: PennEast - Midstream has a 20% investment in PennEast, which is planning to construct an approximately 118 -mile natural gas pipeline that will extend from Northeastern Pennsylvania into New Jersey. Energenic - Marina and a joint venture partner formed Energenic, in which Marina has a 50% equity interest. Energenic developed and operated on-site, self-contained, energy-related projects. Energenic currently does not have any projects that are operational. Millennium - SJI and a joint venture partner formed Millennium, in which SJI has a 50% equity interest. Millennium reads utility customers’ meters on a monthly basis for a fee. Potato Creek - SJI and a joint venture partner formed Potato Creek, in which SJI has a 30% equity interest. Potato Creek owns and manages the oil, gas and mineral rights of certain real estate in Pennsylvania. EnergyMark - SJE has a 33% investment in EnergyMark, an entity that acquires and markets natural gas to retail end users. SJRG had net sales to EnergyMark of $5.3 million and $8.0 million for the three months ended June 30, 2019 and 2018, respectively , and $19.2 million and $21.2 million for the six months ended June 30, 2019 and 2018, respectively. EnerConnex - SJI has 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. During the first six months of 2019 and 2018 , SJI made net investments in unconsolidated affiliates of $3.9 million and $6.4 million , respectively. As of June 30, 2019 and December 31, 2018 , the outstanding balance of Notes Receivable – Affiliate was $16.1 million and $15.2 million , respectively. As of both June 30, 2019 and December 31, 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 . As of June 30, 2019 and December 31, 2018 , the remaining $2.5 million and $1.6 million , respectively, of these notes are unsecured and accrue interest at variable rates. SJI holds significant variable interests in these entities but is not the primary beneficiary. Consequently, these entities are accounted for under the equity method because SJI does not have both (a) the power to direct the activities of the entity that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the entity that could potentially be significant to the entity or the right to receive benefits from the entity that could potentially be significant to the entity. As of June 30, 2019 , SJI had a net asset of approximately $81.8 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 June 30, 2019 , is limited to its combined investments in these entities and the Notes Receivable-Affiliate in the aggregate amount of $97.9 million . DISCONTINUED OPERATIONS - Discontinued Operations consist of the environmental remediation activities related to the properties of SJF and the product liability litigation and environmental remediation activities related to the prior business of Morie. SJF is a subsidiary of EMI, an SJI subsidiary, which previously operated a fuel oil business. Morie is the former sand mining and processing subsidiary of EMI. EMI sold the common stock of Morie in 1996. SJI conducts tests annually to estimate the environmental remediation costs for these properties (see Note 11). Summarized operating results of the discontinued operations for the three and six months ended June 30, 2019 and 2018 , were (in thousands, except per share amounts): Three Months Ended Six Months Ended 2019 2018 2019 2018 Loss before Income Taxes: Sand Mining $ (23 ) $ 7 $ (44 ) $ (33 ) Fuel Oil (96 ) (40 ) (153 ) (81 ) Income Tax Benefits 24 7 40 22 Loss from Discontinued Operations — Net $ (95 ) $ (26 ) $ (157 ) $ (92 ) 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, 2018 . 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, 2018 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 Six Months Ended 2019 2018 2019 2018 Operating Revenues/Affiliates: SJRG $ 1,142 $ 1,109 $ 2,426 $ 3,697 Marina 105 89 221 192 Other 20 23 40 46 Total Operating Revenue/Affiliates $ 1,267 $ 1,221 $ 2,687 $ 3,935 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 Six Months Ended 2019 2018 2019 2018 Costs of Sales/Affiliates (Excluding depreciation and amortization) SJRG* $ 3,335 $ 2,093 $ 6,582 $ 27,431 Operations Expense/Affiliates: SJI $ 5,694 $ 6,708 $ 10,420 $ 13,751 SJIU 578 — 578 — Millennium 789 744 1,552 1,441 Other 426 (117 ) 961 (232 ) Total Operations Expense/Affiliates $ 7,487 $ 7,335 $ 13,511 $ 14,960 *These costs are included in either SJG's Cost of Sales on the condensed statements of income, or Regulatory Assets on the condensed balance sheets. 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, 2018 , 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 | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
COMMON STOCK | COMMON STOCK: The following shares were issued and outstanding for SJI: 2019 Beginning Balance, January 1 85,506,218 New Issuances During the Period: Settlement of Equity Forward Sale Agreement 6,779,661 Stock-Based Compensation Plan 104,470 Ending Balance, June 30 92,390,349 The par value ( $1.25 per share) of stock issued was recorded in Common Stock and the net excess over par value of approximately $181.7 million was recorded in Premium on Common Stock. The increase is discussed under "Forward Shares" below. There were 2,339,139 shares of SJG's common stock (par value $2.50 per share) outstanding as of June 30, 2019 . SJG did not issue any new shares during the period. SJIU owns all of the outstanding common stock of SJG. FORWARD SHARES - In the second quarter of 2018, 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. On January 15, 2019, SJI settled its equity forward sale agreement by physically delivering the remaining 6,779,661 shares of common stock and receiving net cash proceeds of approximately $189.0 million . The forward price used to determine cash proceeds received by SJI at settlement was calculated based on the initial forward sale price, as adjusted for underwriting fees, interest rate adjustments as specified in the equity forward agreement and any dividends paid on our common stock during the forward period. CONVERTIBLE UNITS - In 2018, SJI issued and sold 5,750,000 Equity Units, initially in the form of Corporate Units, which included 750,000 Corporate Units pursuant to the underwriters’ option. Each Corporate Unit has a stated amount of $50 and is comprised of (a) a purchase contract obligating the holder to purchase from the Company, and for the Company to sell to the holder for a price in cash of $50 , on the purchase contract settlement date, or April 15, 2021, subject to earlier termination or settlement, a certain number of shares of common stock; and (b) a 1/20, or 5% , undivided beneficial ownership interest in $1,000 principal amount of SJI’s 2018 Series A 3.70% Remarketable Junior Subordinated Notes due 2031. SJI will pay the holder quarterly contract adjustment payments at a rate of 3.55% per year on the stated amount of $50 per Equity Unit, in respect of each purchase contract, subject to the Company's right to defer these payments. The net proceeds, after amortization of the underwriting discounts, are recorded as Long-Term Debt on the condensed consolidated balance sheets. SJI's EPS — SJI's Basic EPS is based on the weighted-average number of common shares outstanding. The incremental shares required for inclusion in the denominator for the diluted EPS calculation were 115,798 and 452,210 for the six months ended June 30, 2019 and 2018 , respectively. For the three months ended June 30, 2019 and 2018, incremental shares of 100,012 and 806,695 , respectively, were not included in the denominator for the diluted EPS calculation because they would have an antidilutive effect on EPS. These additional shares relate to SJI's restricted stock as discussed in Note 2, along with the impact of the Equity Units discussed above, accounted for under the treasury stock method. DIVIDENDS PER SHARE — SJI's dividends per share were $0.29 and $0.28 for the three months ended June 30, 2019 and 2018 , respectively, and $0.58 and $0.56 for the six months ended June 30, 2019 and 2018 , respectively. Cash dividends were not declared or paid by the Utilities to SJI during the three and six months ended June 30, 2019 or 2018 . ACCUMULATED OTHER COMPREHENSIVE LOSS: The following table summarizes the changes in SJI's AOCL for the three and six months ended June 30, 2019 (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 April 1, 2019 (a) $ (25,626 ) $ (354 ) $ (10 ) $ (97 ) $ (26,087 ) Other comprehensive income before reclassifications — — — — — Amounts reclassified from AOCL (b) — 8 — — 8 Net current period other comprehensive income — 8 — — 8 Balance at June 30, 2019 (a) $ (25,626 ) $ (346 ) $ (10 ) $ (97 ) $ (26,079 ) 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, 2019 (a) $ (25,626 ) $ (362 ) $ (10 ) $ (97 ) $ (26,095 ) Other comprehensive income before reclassifications — — — — — Amounts reclassified from AOCL (b) — 16 — — 16 Net current period other comprehensive income — 16 — — 16 Balance at June 30, 2019 (a) $ (25,626 ) $ (346 ) $ (10 ) $ (97 ) $ (26,079 ) (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 six months ended June 30, 2019 (in thousands): Components of AOCL Amounts Reclassified from AOCL Affected Line Item in the Condensed Consolidated Statements of Income Three Months Ended Six Months Ended Unrealized Loss on Derivatives-Other - interest rate contracts designated as cash flow hedges $ 12 $ 24 Interest Charges Income Taxes (4 ) (8 ) Income Taxes (a) Losses from reclassifications for the period net of tax $ 8 $ 16 (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 six months ended June 30, 2019 (in thousands): Postretirement Liability Adjustment Unrealized Gain (Loss) on Derivatives-Other Total Balance at April 1, 2019 (a) $ (21,901 ) $ (448 ) $ (22,349 ) Other comprehensive loss before reclassifications — — — Amounts reclassified from AOCL (b) — 8 8 Net current period other comprehensive income — 8 8 Balance at June 30, 2019 (a) $ (21,901 ) $ (440 ) $ (22,341 ) Postretirement Liability Adjustment Unrealized Gain (Loss) on Derivatives-Other Total Balance at January 1, 2019 (a) $ (21,901 ) $ (456 ) $ (22,357 ) Other comprehensive loss before reclassifications — — — Amounts reclassified from AOCL (b) — 16 16 Net current period other comprehensive income (loss) — 16 16 Balance at June 30, 2019 (a) $ (21,901 ) $ (440 ) $ (22,341 ) (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 six months ended June 30, 2019 are as follows (in thousands): Components of AOCL Amounts Reclassified from AOCL Affected Line Item in the Condensed Statements of Income Three Months Ended Six Months Ended Unrealized Loss in on Derivatives - Other - Interest Rate Contracts designated as cash flow hedges $ 12 $ 24 Interest Charges Income Taxes (4 ) (8 ) Income Taxes (a) Losses from reclassifications for the period net of tax $ 8 $ 16 (a) Determined using a combined average statutory tax rate of 27% . |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2019 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS: RESTRICTED INVESTMENTS — SJI and SJG maintain margin accounts with certain counterparties to support their risk management activities associated with hedging commodities. The balances required to be held in these margin accounts increase as the net value of the outstanding energy-related contracts with the respective counterparties decrease. As of June 30, 2019 and December 31, 2018 , SJI's balances (including SJG) in these accounts totaled $19.0 million and $1.6 million , respectively, held by the counterparties, which is recorded in Restricted Investments on the condensed consolidated balance sheets. As of June 30, 2019 and December 31, 2018 , SJG's balance held by the counterparties totaled $7.8 million and $1.3 million and was recorded in Restricted Investments on the condensed balance sheets. The carrying amounts of the Restricted Investments for both SJI and SJG approximate their fair values at June 30, 2019 and December 31, 2018 , 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 condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows (in thousands): As of June 30, 2019 Balance Sheet Line Item SJI SJG Cash and Cash Equivalents $ 12,193 $ 1,617 Restricted Investments 19,019 7,798 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 31,212 $ 9,415 As of December 31, 2018 Balance Sheet Line Item SJI SJG Cash and Cash Equivalents $ 30,030 $ 1,984 Restricted Investments 1,649 1,278 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 31,679 $ 3,262 NOTES RECEIVABLE-AFFILIATES - As of June 30, 2019 , SJI had approximately $13.6 million included in Notes Receivable - Affiliate on the 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 $4.5 million and $5.3 million as of June 30, 2019 and December 31, 2018 , respectively. The current portion of these receivables is reflected in Accounts Receivable and the non-current portion is reflected in Contract Receivables on the 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 June 30, 2019 and December 31, 2018 , respectively. The annualized amortization to interest is not material to SJI’s or SJG's condensed consolidated financial statements. The carrying amounts of these receivables approximate their fair value at June 30, 2019 and December 31, 2018 , which would be included in Level 2 of the fair value hierarchy (see Note 13). CREDIT RISK - As of June 30, 2019 , SJI had approximately $15.9 million , or 33.8% , of the current and noncurrent Derivatives – Energy Related Assets transacted with two counterparties. These counterparties are investment-grade rated. FINANCIAL INSTRUMENTS NOT CARRIED AT FAIR VALUE - The fair value of a financial instrument is the market price to sell an asset or transfer a liability at the measurement date. The carrying amounts of SJI's and SJG's financial instruments approximate their fair values at June 30, 2019 and December 31, 2018 , 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 June 30, 2019 and December 31, 2018 , were $2.43 billion and $2.91 billion , respectively. The carrying amounts of SJI's long-term debt, including current maturities, as of June 30, 2019 and December 31, 2018 , were $2.28 billion and $2.84 billion , respectively. SJI's carrying amounts as of June 30, 2019 and December 31, 2018 are net of unamortized debt issuance costs of $25.3 million and $27.0 million , respectively. • The estimated fair values of SJG's long-term debt, including current maturities, as of June 30, 2019 and December 31, 2018 , were $929.3 million and $895.1 million , respectively. The carrying amounts of SJG's long-term debt, including current maturities, as of June 30, 2019 and December 31, 2018 , were $903.7 million and $893.4 million , respectively. The carrying amounts as of June 30, 2019 and December 31, 2018 are net of unamortized debt issuance costs of $6.5 million and $6.8 million , respectively. OTHER FINANCIAL INSTRUMENTS - The carrying amounts of SJI's and SJG's other financial instruments approximate their fair values at June 30, 2019 and December 31, 2018 . |
SEGMENTS OF BUSINESS
SEGMENTS OF BUSINESS | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENTS OF BUSINESS | SEGMENTS OF BUSINESS: SJI operates in several different reportable operating segments which reflect the financial information regularly evaluated by the CODM. These segments are as follows: • SJG utility operations consist primarily of natural gas distribution to residential, commercial and industrial customers in southern New Jersey. • ETG utility operations consist of natural gas distribution to residential, commercial and industrial customers in northern and central New Jersey. • ELK utility operations consist of natural gas distribution to residential, commercial and industrial customers in Maryland. • Wholesale energy operations include the activities of SJRG and SJEX. • Retail gas and other operations at SJE included natural gas acquisition and transportation service business lines. This business was sold on November 30, 2018. • Retail electric operations at SJE 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 and SXLE. • Appliance service operations includes SJESP, which receives commissions on service contracts from a third party. • Midstream was formed to invest in infrastructure and other midstream projects, including a current project to build a natural gas pipeline in Pennsylvania and New Jersey. • Corporate & Services segment includes costs related to the Acquisition, along with other unallocated costs. • Intersegment represents intercompany transactions among the above SJI consolidated entities. SJI groups its utility businesses under its wholly-owned subsidiary SJIU. This group consists of gas utility operations of SJG, ETG and ELK. SJI groups its nonutility operations into separate 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. Information about SJI’s operations in different reportable operating segments is presented below (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Operating Revenues: SJI Utilities: SJG Utility Operations 62,268 $ 76,801 $ 334,466 $ 311,260 ETG Utility Operations 44,854 — 185,028 — ELK Utility Operations 944 — 4,318 — Subtotal SJI Utilities 108,066 76,801 523,812 311,260 Energy Group: Wholesale Energy Operations 126,483 67,220 316,490 257,563 Retail Gas and Other Operations — 23,168 — 63,369 Retail Electric Operations 20,531 42,662 43,222 86,697 Subtotal Energy Group 147,014 133,050 359,712 407,629 Energy Services: On-Site Energy Production 14,788 24,734 26,118 45,891 Appliance Service Operations 484 451 1,015 971 Subtotal Energy Services 15,272 25,185 27,133 46,862 Corporate and Services 11,815 11,082 21,186 24,082 Subtotal 282,167 246,118 931,843 789,833 Intersegment Sales (15,233 ) (18,788 ) (27,611 ) (40,558 ) Total Operating Revenues $ 266,934 $ 227,330 $ 904,232 $ 749,275 Three Months Ended Six Months Ended 2019 2018 2019 2018 Operating Income (Loss): SJI Utilities: SJG Utility Operations $ 10,215 $ 8,443 $ 108,560 $ 101,244 ETG Utility Operations 2,051 — 46,200 — ELK Utility Operations (32 ) — 598 — Subtotal SJI Utilities 12,234 8,443 155,358 101,244 Energy Group: Wholesale Energy Operations (2,386 ) (10,472 ) (4,892 ) 65,185 Retail Gas and Other Operations — 1,659 — (4,099 ) Retail Electric Operations (2,313 ) 1,094 (3,969 ) 886 Subtotal Energy Group (4,699 ) (7,719 ) (8,861 ) 61,972 Energy Services: On-Site Energy Production 1,343 (100,435 ) 1,461 (100,989 ) Appliance Service Operations 421 442 1,016 945 Subtotal Energy Services 1,764 (99,993 ) 2,477 (100,044 ) Corporate and Services (433 ) (9,263 ) (5,555 ) (13,834 ) Total Operating Income (Loss) $ 8,866 $ (108,532 ) $ 143,419 $ 49,338 Depreciation and Amortization: SJI Utilities: SJG Utility Operations $ 23,083 $ 20,274 $ 45,785 $ 40,589 ETG Utility Operations 6,813 — 13,471 — ELK Utility Operations 113 — 225 — Subtotal SJI Utilities 30,009 20,274 59,481 40,589 Energy Group: Wholesale Energy Operations 25 29 48 52 Retail Gas and Other Operations — 78 — 153 Subtotal Energy Group 25 107 48 205 Energy Services: On-Site Energy Production 1,256 10,324 2,508 20,595 Appliance Service Operations — — — — Subtotal Energy Services 1,256 10,324 2,508 20,595 Corporate and Services 1,754 5,951 2,998 9,165 Total Depreciation and Amortization $ 33,044 $ 36,656 $ 65,035 $ 70,554 Interest Charges: SJI Utilities: SJG Utility Operations $ 7,896 $ 6,999 $ 15,744 $ 13,727 ETG Utility Operations 6,620 — 12,941 — ELK Utility Operations 5 — 11 — Subtotal SJI Utilities 14,521 6,999 28,696 13,727 Energy Group: Retail Gas and Other Operations — 105 — 251 Subtotal Energy Group — 105 — 251 Energy Services: On-Site Energy Production 2,138 4,098 4,423 7,945 Midstream 555 479 1,099 905 Corporate and Services 14,659 13,368 30,063 20,838 Subtotal 31,873 25,049 64,281 43,666 Intersegment Borrowings (3,439 ) (5,488 ) (7,194 ) (10,133 ) Total Interest Charges $ 28,434 $ 19,561 $ 57,087 $ 33,533 Three Months Ended Six Months Ended 2019 2018 2019 2018 Income Taxes: SJI Utilities: SJG Utility Operations $ 671 $ 482 $ 24,368 $ 22,318 ETG Utility Operations (809 ) — 6,093 — ELK Utility Operations (9 ) — 154 — Subtotal SJI Utilities (147 ) 482 30,615 22,318 Energy Group: Wholesale Energy Operations (481 ) (2,478 ) (958 ) 16,649 Retail Gas and Other Operations — 474 — (1,060 ) Retail Electric Operations (569 ) 307 (818 ) 249 Subtotal Energy Group (1,050 ) (1,697 ) (1,776 ) 15,838 Energy Services: On-Site Energy Production 121 (26,489 ) (357 ) (27,646 ) Appliance Service Operations 136 106 303 237 Subtotal Energy Services 257 (26,383 ) (54 ) (27,409 ) Midstream (33 ) (22 ) (65 ) 40 Corporate and Services (3,673 ) (4,352 ) (8,417 ) (6,344 ) Total Income Taxes $ (4,646 ) $ (31,972 ) $ 20,303 $ 4,443 Property Additions: SJI Utilities: SJG Utility Operations $ 67,257 $ 65,148 $ 122,562 $ 115,385 ETG Utility Operations 53,938 — 91,962 — ELK Utility Operations 983 — 1,628 — Subtotal SJI Utilities 122,178 65,148 216,152 115,385 Energy Group: Wholesale Energy Operations — 27 — 32 Retail Gas and Other Operations — 136 — 309 Subtotal Energy Group — 163 — 341 Energy Services: On-Site Energy Production 141 570 164 1,683 Subtotal Energy Services 141 570 164 1,683 Midstream 7 99 19 310 Corporate and Services 1 8,204 586 11,549 Total Property Additions $ 122,327 $ 74,184 $ 216,921 $ 129,268 June 30, 2019 December 31, 2018 Identifiable Assets: SJI Utilities: SJG Utility Operations $ 3,183,710 $ 3,118,236 ETG Utility Operations 2,291,156 2,148,175 ELK Utility Operations 19,043 16,482 Subtotal SJI Utilities 5,493,909 5,282,893 Energy Group: Wholesale Energy Operations 177,183 266,417 Retail Gas and Other Operations (A) 141 12,736 Retail Electric Operations 34,394 39,345 Subtotal Energy Group 211,718 318,498 Energy Services: On-Site Energy Production 170,251 195,329 Appliance Service Operations 81 — Subtotal Energy Services 170,332 195,329 Midstream 78,246 72,333 Discontinued Operations 1,742 1,777 Corporate and Services 317,842 387,482 Intersegment Assets (245,527 ) (301,735 ) Total Identifiable Assets $ 6,028,262 $ 5,956,577 (A) As of June 30, 2019, the remaining $0.1 million of assets in the retail gas and other operations segment represents outstanding accounts receivable balances. |
RATES AND REGULATORY ACTIONS
RATES AND REGULATORY ACTIONS | 6 Months Ended |
Jun. 30, 2019 | |
Public Utilities, General Disclosures [Abstract] | |
RATES AND REGULATORY ACTIONS | RATES AND REGULATORY ACTIONS: SJG and ETG are subject to the rules and regulations of the BPU. ELK is subject to the rules and regulations of the MPSC. SJG: In September 2018, the BPU issued an Order approving, on a provisional basis, SJG's request for a $65.5 million increase in the gas cost recoveries associated with the 2018-2019 BGSS year, effective October 1, 2018. The matter was thereafter referred to the Office of Administrative Law for further proceedings. Also, in December 2018, SJG submitted a notice of intent to self-implement a BGSS rate adjustment based on a 5% increase of the monthly bill of a typical residential customer; that adjustment took effect on February 1, 2019. In May 2019, the BPU issued an Order authorizing SJG to spread the $65.5 million recovery of gas costs over a two -year period, resulting in a reduction in the BGSS rate effective May 15, 2019, and a one-time bill credit of approximately $24.0 million . In April 2019, SJG submitted its annual filing, pursuant to the October 2016 BPU approval of the AIRP II, seeking a base rate adjustment to increase annual revenues by approximately $6.5 million to reflect the roll-in of approximately $63.0 million of AIRP II investments placed in service during July 1, 2018 through June 30, 2019. The matter is currently pending BPU approval. In April 2019, SJG submitted its first annual filing, pursuant to the May 2018 BPU approval of the SHARP II, seeking a base rate adjustment to increase annual revenues by approximately $3.0 million to reflect the roll-in of approximately $ 28.3 million of SHARP II investments placed in service during June 1, 2018 through June 30, 2019. The matter is currently pending BPU approval. In June 2019, SJG filed its annual BGSS and CIP filing with the BPU, requesting a $27.6 million decrease in gas cost recoveries related to its BGSS and a $7.6 million decrease in revenues related to its CIP, resulting in a net revenue decrease of $35.2 million . The matter is currently pending BPU approval. SJG does not profit from the sale of the commodity and will pass through the costs of the commodity to the customer. Similarly BGSS recoveries/refunds may impact Operating Revenue and Cost of Sales, however would not have an impact on SJG’s net income. In June 2019, SJG filed its annual EET rate adjustment petition, requesting a $1.3 million increase in revenues to continue recovering the costs of, and the allowed return on, investments associated with its EEPs. The matter is currently pending BPU approval. In June 2019, SJG filed its annual USF petition, along with the State’s other electric and gas utilities. The proposed revenue increase for SJG is approximately $1.0 million . The matter is currently pending BPU approval. In June 2019, SJG filed its first annual Tax Act Rider petition, requesting a rate adjustment to refund approximately $6.8 million related to SJG’s excess deferred income taxes, resulting from the change in the Federal corporate tax rate from 35% to 21% associated with the Tax Reform. The matter is currently pending BPU approval. ETG: In April 2019, ETG filed a petition with the BPU requesting a base rate revenue increase of approximately $65.0 million to recognize the infrastructure investments made to maintain the safety and reliability of its natural gas system. The petition reflects approximately $346.0 million in net plant additions not reflected in ETG’s current rates. The matter is currently pending BPU approval. In April 2019, the BPU issued an Order approving a revenue increase of $1.3 million associated with ETG’s annual EEP rate adjustment filing, effective May 1, 2019. In May 2019, the BPU issued an Order approving a revenue increase of $6.9 million associated with ETG’s annual RAC rate adjustment filing, effective June 1, 2019. In June 2019, the BPU issued an Order approving a $300.0 million IIP effective July 1, 2019. The Order authorized the recovery of costs associated with ETG’s investments of approximately $300.0 million between 2019-2024 to replace its cast-iron and bare steel vintage main and related services. The Order provides for annual recovery of ETG's investments through a separate rate mechanism. In June 2019, ETG along with the other NJ gas utilities filed jointly for statewide USF and Lifeline rate increases with an effective date of October 1, 2019. The proposed revenue increase for ETG is approximately $0.8 million . There have been no other significant regulatory actions or changes to the Utilities' rate structure since December 31, 2018. 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, 2018. |
REGULATORY ASSETS AND REGULATOR
REGULATORY ASSETS AND REGULATORY LIABILITIES | 6 Months Ended |
Jun. 30, 2019 | |
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 the Utilities' regulatory assets and liabilities since December 31, 2018 , 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, 2018 . The Utilities Regulatory Assets as of June 30, 2019 consisted of the following items (in thousands): June 30, 2019 SJG ETG ELK Total SJI Environmental Remediation Costs: Expended - Net $ 136,772 $ 16,510 $ — $ 153,282 Liability for Future Expenditures 150,351 103,349 — 253,700 Deferred ARO Costs 33,659 10,655 128 44,442 Deferred Pension Costs - Unrecognized Prior Service Cost — 38,996 14 39,010 Deferred Pension and Other Postretirement Benefit Costs 79,466 2,607 30 82,103 Deferred Gas Costs - Net 60,993 — 549 61,542 SBC Receivable 150 — — 150 Deferred Interest Rate Contracts 7,700 — — 7,700 Energy Efficiency Tracker 4,919 — — 4,919 Pipeline Supplier Service Charges 571 — — 571 Pipeline Integrity Cost 5,325 — — 5,325 AFUDC - Equity Related Deferrals 10,224 — — 10,224 Weather Normalization — — 252 252 Other Regulatory Assets 9,734 9,085 225 19,044 Total Regulatory Assets $ 499,864 $ 181,202 $ 1,198 $ 682,264 The Utilities Regulatory Assets as of December 31, 2018 consisted of the following items (in thousands): December 31, 2018 SJG ETG ELK Total SJI Environmental Remediation Costs: Expended - Net $ 136,227 $ 10,875 $ — $ 147,102 Liability for Future Expenditures 148,071 104,594 — 252,665 Deferred ARO Costs 31,096 — — 31,096 Deferred Pension Costs - Unrecognized Prior Service Cost — 40,612 14 40,626 Deferred Pension and Other Postretirement Benefit Costs 80,121 2,607 30 82,758 Deferred Gas Costs - Net 57,889 — 289 58,178 SBC Receivable 2,173 — — 2,173 Deferred Interest Rate Contracts 5,867 — — 5,867 Energy Efficiency Tracker 2,319 — — 2,319 Pipeline Supplier Service Charges 617 — — 617 Pipeline Integrity Cost 5,140 — — 5,140 AFUDC - Equity Related Deferrals 13,914 — — 13,914 Weather Normalization — 3,210 139 3,349 Other Regulatory Assets 8,931 8,023 211 17,165 Total Regulatory Assets $ 492,365 $ 169,921 $ 683 $ 662,969 Except where noted below, all regulatory assets are or are expected to be recovered through utility rate charges, as detailed in the following discussion. The Utilities are currently permitted to recover interest on Environmental Remediation Costs, Societal Benefit Costs Receivable, EET and Pipeline Integrity Costs, while the other assets are being recovered without a return on investment. ENVIRONMENTAL REMEDIATION COSTS - SJG and ETG have 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 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 condensed consolidated balance sheets under the captions "Current Liabilities" (SJI and SJG), "Deferred Credits and Other Noncurrent Liabilities" (SJI) and "Regulatory and Other Noncurrent Liabilities" (SJG). The BPU allows SJG to recover the deferred costs over seven year periods after they are incurred. Accrued environmental remediation costs at ETG are recoverable from customers through rate mechanisms approved by the BPU. 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 assets of SJI and SJG increased $3.4 million and $3.1 million , respectively, from December 31, 2018 to June 30, 2019 , primarily due to gas commodity costs exceeding recoveries from customers. OTHER REGULATORY ASSETS - Some of the assets included in Other Regulatory Assets are currently being recovered from ratepayers as approved by the BPU. Management believes the remaining deferred costs are probable of recovery from ratepayers through future utility rates. Included in this number for SJG is the impact of the ERIP on SJG employees, see Note 1 to the Consolidated Financial Statements in Item 8 of SJI’s and SJG's Annual Report on Form 10-K for the year ended December 31, 2018 . The Utilities Regulatory Liabilities as of June 30, 2019 consisted of the following items (in thousands): June 30, 2019 SJG ETG ELK Total SJI Excess Plant Removal Costs $ 17,910 $ 47,827 $ 1,386 $ 67,123 Excess Deferred Taxes 252,854 120,470 1,231 374,555 CIP Payable 1,606 — — 1,606 Weather Normalization — 1,641 — 1,641 Amounts to be Refunded to Customers — 12,750 — 12,750 Other Regulatory Liabilities — 283 — 283 Total Regulatory Liabilities $ 272,370 $ 182,971 $ 2,617 $ 457,958 The Utilities Regulatory Liabilities as of December 31, 2018 consisted of the following items (in thousands): December 31, 2018 SJG ETG ELK Total SJI Excess Plant Removal Costs $ 20,805 $ 47,909 $ 1,393 $ 70,107 Excess Deferred Taxes 259,863 118,757 1,231 379,851 Deferred Revenues - Net — 3,188 — 3,188 CIP Payable 5,871 — — 5,871 Amounts to be Refunded to Customers — 17,039 — 17,039 Other Regulatory Liabilities — 2,443 — 2,443 Total Regulatory Liabilities $ 286,539 $ 189,336 $ 2,624 $ 478,499 EXCESS DEFERRED TAXES - This liability is recognized as a result of Tax Reform (see Notes 1 and 4 to the Consolidated Financial Statements in Item 8 of SJI’s and SJG's Annual Report on Form 10-K for the year ended December 31, 2018 ). The decrease in this liability from December 31, 2018 to June 30, 2019 is related to excess tax amounts returned to customers through customer billings. The Unprotected amount of excess deferred taxes of $26.1 million will be returned to customers over a five year period. The remaining balance will be deferred until SJG's next base rate case as approved by the BPU. 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. The overall reduction of the weather normalization from a $3.2 million regulatory asset at December 31, 2018 to a $1.6 million regulatory liability at June 30, 2019, was due to timing of collections from customers and colder than normal weather during the first three months of the year. DEFERRED REVENUES - NET - Over/under collections of gas costs are monitored through ETG's BGSS mechanism. Net under collected gas costs are classified as a regulatory asset and net over collected gas costs are classified as a regulatory liability. Derivative contracts used to hedge natural gas purchases are also included in the BGSS, subject to BPU approval. The BGSS regulatory liability of ETG increased due to recoveries from customers exceeding actual gas costs. AMOUNTS TO BE REFUNDED TO CUSTOMERS - See "AMA" section in Note 1. |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFITS | 6 Months Ended |
Jun. 30, 2019 | |
Defined Benefit Plan [Abstract] | |
PENSION AND OTHER POSTRETIREMENT BENEFITS | PENSION AND OTHER POSTRETIREMENT BENEFITS: For the three and six months ended June 30, 2019 and 2018 , 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 Six Months Ended 2019 2018 2019 2018 Service Cost $ 1,081 $ 639 $ 2,800 $ 2,816 Interest Cost 4,435 716 8,664 5,824 Expected Return on Plan Assets (4,942 ) (19 ) (10,135 ) (7,652 ) Amortizations: Prior Service Cost 27 (13 ) 53 58 Actuarial Loss 2,360 1,632 4,797 5,764 Net Periodic Benefit Cost 2,961 2,955 6,179 6,810 Capitalized Benefit Cost (374 ) (554 ) (968 ) (1,037 ) Deferred Benefit Cost (653 ) (374 ) (1,194 ) (1,125 ) Total Net Periodic Benefit Expense $ 1,934 $ 2,027 $ 4,017 $ 4,648 Other Postretirement Benefits Three Months Ended Six Months Ended 2019 2018 2019 2018 Service Cost $ 37 $ 360 $ 271 $ 441 Interest Cost 806 859 1,434 1,076 Expected Return on Plan Assets (1,133 ) (1,578 ) (2,282 ) (1,883 ) Amortizations: Prior Service Cost (145 ) (141 ) (288 ) (172 ) Actuarial Loss 321 340 584 451 Net Periodic Benefit Cost (114 ) (160 ) (281 ) (87 ) Capitalized Benefit Cost (99 ) — (155 ) (5 ) Deferred Benefit Cost 119 — 235 — Total Net Periodic Benefit Expense $ (94 ) $ (160 ) $ (201 ) $ (92 ) The Pension Benefits Net Periodic Benefit Cost incurred by SJG was approximately $2.1 million and $1.9 million of the totals presented in the table above for the three months ended June 30, 2019 and 2018 , respectively, and $4.4 million and $4.3 million of the totals presented in the table above for the six months ended June 30, 2019 and 2018 , respectively. For the three months ended June 30, 2019 and 2018 , the Other Postretirement Benefits Net Periodic Benefit Cost incurred by SJG was $(0.1) million and less than $0.1 million , respectively, of the totals presented in the table above, and, for the six months ended June 30, 2019 and 2018, $(0.2) 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 the Utilities' construction programs. Companies with publicly traded equity securities that sponsor a postretirement benefit plan are required to fully recognize, as an asset or liability, the overfunded or underfunded status of its benefit plans and recognize changes in the funded status in the year in which the changes occur. Changes in funded status are generally reported in AOCL; however, since the Utilities recover all prudently incurred pension and postretirement benefit costs from their ratepayers, a significant portion of the changes resulting from the recording of additional liabilities under this requirement is reported as regulatory assets. No contributions were made to the pension plans by either SJI or SJG during the six months ended June 30, 2019 or 2018. SJI and SJG do not expect to make any contributions to the pension plans during the remainder of 2019; however, changes in future investment performance and discount rates may ultimately result in a contribution. Payments related to the unfunded SERP are expected to be approximately $3.6 million in 2019 . As part of the Acquisition, SJI acquired ETG's and ELK's 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 ERISA. The Company also provides certain non-qualified defined benefit and defined contribution pension plans for a selected group of the Company's management and highly compensated employees. Benefits under these non-qualified pension plans are funded on a cash basis. In addition, the entities have a postretirement benefit plan, which provides certain medical care and life insurance benefits for eligible retired employees through a postretirement benefit plan. See Note 12 to the Consolidated Financial Statements in Item 8 of SJI’s and SJG's Annual Report on Form 10-K for the year ended December 31, 2018 for additional information related to SJI’s and SJG's pension and other postretirement benefits. |
LINES OF CREDIT
LINES OF CREDIT | 6 Months Ended |
Jun. 30, 2019 | |
Line of Credit Facility [Abstract] | |
LINES OF CREDIT | LINES OF CREDIT: Credit facilities and available liquidity as of June 30, 2019 were as follows (in thousands): Company Total Facility Usage Available Liquidity Expiration Date SJI: SJI Syndicated Revolving Credit Facility $ 500,000 $ 396,600 (A) $ 103,400 August 2022 Revolving Credit Facility 50,000 50,000 — September 2019 (D) Total SJI 550,000 446,600 103,400 SJG: Commercial Paper Program/Revolving Credit Facility 200,000 104,000 (B) 96,000 August 2022 Uncommitted Bank Line 10,000 — 10,000 August 2019 (D) Total SJG 210,000 104,000 106,000 ETG/ELK: ETG/ELK Revolving Credit Facility 200,000 140,900 (C) 59,100 June 2021 Total $ 960,000 $ 691,500 $ 268,500 (A) Includes letters of credit outstanding in the amount of $9.6 million . (B) Includes letters of credit outstanding in the amount of $0.9 million . (C) Includes letters of credit outstanding in the amount of $1.0 million . (D) SJI and SJG intend to renew these facilities upon expiration. In June 2019, SJI entered into an amendment to its Five Year Revolving Credit Agreement ("Credit Agreement"), expiring in August 2022, that increased by $100.0 million the amount SJI can borrow under the Credit Agreement in the form of revolving loans from a total aggregate amount of $400.0 million to $500.0 million . In addition, as part of the total $500.0 million extension of credit, the Credit Agreement provides for swingline loans (in an amount not to exceed an aggregate of $50.0 million ) and letters of credit (in an amount not to exceed an aggregate of $200.0 million ), each at the applicable interest rates specified in the Credit Agreement. Subject to certain conditions set forth in the Credit Agreement, the Company may increase the revolving credit facility up to a maximum aggregate amount of $100.0 million (for a total facility of up to $600.0 million ), although no lender is obligated to increase its commitment. SJI (as a guarantor to ELK's obligation under this revolving credit agreement), ETG and ELK (as Borrowers) have a $200.0 million revolving credit agreement with several lenders. The revolving credit agreement provides for the extension of credit to the Borrowers in a total aggregate amount of $200.0 million ( $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 June 30, 2019 . In June 2019, this revolving credit agreement was amended to add SJIU as an additional Borrower and to extend the termination date from June 2020 to June 2021. The Utilities' facilities are restricted as to use and availability specifically to the respective Utilities; however, if necessary, the SJI facilities can also be used to support the liquidity needs of the Utilities. All committed facilities contain one financial covenant limiting the ratio of indebtedness to total capitalization of the applicable borrowers (as defined in the respective credit agreements), measured on a quarterly basis. SJI and the Utilities were in compliance with these covenants as of June 30, 2019 . Borrowings under these credit facilities are at market rates. SJI's weighted average interest rate on these borrowings (inclusive of SJG for both periods and ETG/ELK for 2019), which changes daily, was 3.45% and 2.90% at June 30, 2019 and 2018 , respectively. SJG's weighted average interest rate on these borrowings, which changes daily, was 2.60% and 2.33% at June 30, 2019 and 2018 , respectively. SJI's average borrowings outstanding under these credit facilities (inclusive of SJG for both periods and ETG/ELK for 2019), not including letters of credit, during the six months ended June 30, 2019 and 2018 were $347.2 million and $201.6 million , respectively. The maximum amounts outstanding under these credit facilities, not including letters of credit, during the six months ended June 30, 2019 and 2018 were $687.2 million and $397.3 million , respectively. SJG's average borrowings outstanding under its credit facilities during the six months ended June 30, 2019 and 2018 were $72.5 million and $49.3 million , respectively. The maximum amounts outstanding under its credit facilities during the six months ended June 30, 2019 and 2018 were $108.0 million and $85.0 million , respectively. The SJI, SJG and ETG/ELK principal credit facilities are provided by a syndicate of banks. The NPA for Senior Unsecured Notes issued by SJI contains a financial covenant limiting the ratio of indebtedness to total capitalization (as defined in the respective NPA or credit agreement) to not more than 0.70 to 1 , measured at the end of each fiscal quarter. For SJI, the equity units are treated as equity (as opposed to how they are classified on the condensed consolidated balance sheet, as long-term debt) for purposes of the covenant calculation. SJI and SJG were in compliance with this covenant as of June 30, 2019 . 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 June 30, 2019 . 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 . In June 2019, the revolving credit agreement was amended to add SJIU as an additional Borrower. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES: GUARANTEES — As of June 30, 2019 , SJI had issued $8.8 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 FERC-approved tariffs. SJG and ETG's cumulative obligation for gas supply-related demand charges and reservation fees paid to suppliers for these services averages approximately $6.7 million and $5.2 million per month, respectively, and is recovered on a current basis through the BGSS. SJRG's cumulative obligation for demand charges and reservation fees paid to suppliers for these services averages approximately $1.3 million per month. SJRG has also committed to purchase 832,500 dts/d of natural gas, from various suppliers, for terms ranging from 4 to 10 years at index-based prices. ETG has an 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). 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 46% and 67% of SJI's and SJG's workforce at June 30, 2019 , respectively. SJI has collective bargaining agreements with unions that represent these employees: IBEW Local 1293, IAM Local 76 and UWUA Local 424. SJG employees represented by the IBEW operate under a collective bargaining agreement that runs through February 2022. SJG's remaining unionized employees are represented by the IAM and operate under a collective bargaining agreement that runs through August 2021. ETG employees represented by the UWUA operate under a collective bargaining agreement that runs through November 2020. STANDBY LETTERS OF CREDIT — As of June 30, 2019 , SJI provided $9.6 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. ETG provided a $1.0 million letter of credit under its revolving credit facility to support commodity trading activity. SJG provided a $0.9 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 NJEDA to finance the expansion of SJG’s natural gas distribution system. EQUITY AND CORPORATE UNITS - The Company has a contract obligating the holder of the units to purchase from the Company, and for the Company to sell to the holder for a price in cash of $50 , a certain number of shares of common stock. See Note 4. PENDING LITIGATION — SJI and SJG are subject to claims, actions and other legal proceedings arising in the ordinary course of business. Neither SJI nor SJG can make any assurance as to the outcome of any of these actions but, based on an analysis of these claims and consultation with outside counsel, we do not believe that any of these claims, other than described below, will have a material impact on the business or financial statements of SJI or SJG. 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, $22.6 million and $58.9 million , respectively, from the first quarter of 2017 through June 30, 2019 . 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, the $22.6 million associated with SJG was recorded as both an Accounts Payable and an increase in Regulatory Assets on the condensed consolidated balance sheets of both SJI and SJG as of June 30, 2019 . The $58.9 million associated with SJRG was also recorded as an Accounts Payable on the condensed consolidated balance sheets of SJI as of June 30, 2019 . Charges recorded to Cost of Sales - Nonutility on the condensed consolidated statements of income of SJI were $0.4 million and $0.5 million for the three and six months ended June 30, 2019 , respectively, and $0.9 million and $1.0 million for the three and six months ended June 30, 2018, respectively. SJI also recorded to Interest Charges on the condensed consolidated statements of income $0.4 million and $0.7 million for the three and six months ended June 30, 2019 , respectively, and $0.2 million and $0.4 million for the three and six months ended June 30, 2018, respectively. In April 2018, SJI filed an appeal of this judgment which was heard by the Tenth Circuit on January 22, 2019. On August 6, 2019, the Tenth Circuit issued its decision affirming the lower court’s decision and finding that SJG and SJRG breached the contracts and the plaintiff is entitled to damages. SJI has a reserve to reflect the differences between the invoices and paid amounts, and SJI will be required to make payment by September 5, 2019 in an amount not materially different from what has been reserved. 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 decision in the first lawsuit is prejudicial to this second lawsuit and SJI is similarly obligated to pay damages related to this breach of contract claim as well. 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 a manufactured gas plant. The State of New Jersey is alleging damage to the State's natural resources and seeking payment for damages to those natural resources. SJG has been working with a licensed state remediation professional to remediate the site and is currently evaluating the merits of the State of New Jersey's allegations. At this time, SJG cannot reasonably estimate nor provide an assessment of the claim or any assurance regarding its outcome. Liabilities related to claims are accrued when the amount or range of amounts of probable settlement costs or other charges for these claims can be reasonably estimated. For matters other than the disputes noted above, SJI has accrued approximately $2.8 million and $3.2 million related to all claims in the aggregate as of June 30, 2019 and December 31, 2018 , respectively, of which SJG has accrued approximately $0.6 million and $0.9 million as of June 30, 2019 and December 31, 2018 , respectively. ENVIRONMENTAL REMEDIATION COSTS — SJG incurred and recorded costs for environmental cleanup of 12 sites where SJG or its predecessors operated gas manufacturing plants. SJG stopped manufacturing gas in the 1950s. ETG is subject to environmental remediation liabilities associated with 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. There have been no signifcant changes to the status of SJI’s environmental remediation efforts since December 31, 2018 , 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, 2018 . |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 , SJI and SJG had outstanding derivative contracts as follows: SJI Consolidated SJG Derivative contracts intended to limit exposure to market risk to: Expected future purchases of natural gas (in MMdts) 90.8 24.5 Expected future sales of natural gas (in MMdts) 87.7 0.3 Expected future purchases of electricity (in MMmWh) 1.1 Expected future sales of electricity (in MMmWh) 0.9 Basis and Index related net purchase (sale) contracts (in MMdts) 18.8 3.8 These contracts, which have not been designated as hedging instruments under GAAP, are measured at fair value and recorded in Derivatives - Energy Related Assets or Derivatives - Energy Related Liabilities on the condensed consolidated balance sheets of SJI and SJG. For SJE and SJRG contracts, the net unrealized pre-tax gains (losses) for these energy-related commodity contracts are included with realized gains (losses) in Operating Revenues – Nonutility on the condensed consolidated statements of income for SJI. These unrealized pre-tax (losses) gains were $(0.1) million and $(6.2) million for the three months ended June 30, 2019 and 2018, respectively , and $(12.2) million and $17.2 million for the six months ended June 30, 2019 and 2018, respectively . For ETG's and SJG's contracts, the costs or benefits are recoverable through the BGSS clause, subject to BPU approval. As a result, the net unrealized pre-tax gains and losses for SJG and ETG energy-related commodity contracts are included with realized gains and losses in Regulatory Assets or Regulatory Liabilities on the condensed consolidated balance sheets of SJI (ETG and SJG) and SJG. As of June 30, 2019 and December 31, 2018 , SJI had $(9.0) million and $4.1 million , respectively, and SJG had $(4.5) million and $3.3 million , respectively, of unrealized (losses) gains included in its BGSS related to energy-related commodity contracts. SJI, including SJG, has also entered into interest rate derivatives to mitigate exposure to increasing interest rates and the impact of those rates on cash flows of variable-rate debt. These interest rate derivatives are measured at fair value and recorded in Derivatives - Other on the condensed consolidated balance sheets. Any unrealized gains and losses on these derivatives are being recorded in earnings over the remaining life of the derivative. For SJI and SJG interest rate derivatives, the fair value represents the amount SJI and SJG would have to pay the counterparty to terminate these contracts as of those dates. As of June 30, 2019 , 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 June 30, 2019 and December 31, 2018 , are as follows (in thousands): SJI (includes SJG and all other consolidated subsidiaries): Derivatives not designated as hedging instruments under GAAP June 30, 2019 December 31, 2018 Assets Liabilities Assets Liabilities Energy-related commodity contracts: Derivatives - Energy Related - Current $ 34,988 $ 35,229 $ 54,021 $ 24,134 Derivatives - Energy Related - Non-Current 11,883 7,278 7,169 7,256 Interest rate contracts: Derivatives - Other - Current — 1,092 — 588 Derivatives - Other - Noncurrent — 11,449 — 7,285 Total derivatives not designated as hedging instruments under GAAP $ 46,871 $ 55,048 $ 61,190 $ 39,263 Total Derivatives $ 46,871 $ 55,048 $ 61,190 $ 39,263 SJG: Derivatives not designated as hedging instruments under GAAP June 30, 2019 December 31, 2018 Assets Liabilities Assets Liabilities Energy-related commodity contracts: Derivatives – Energy Related – Current $ 1,829 $ 5,996 $ 5,464 $ 2,146 Derivatives – Energy Related – Non-Current — 297 15 43 Interest rate contracts: Derivatives – Other - Current — 464 — 343 Derivatives – Other - Noncurrent — 7,236 — 5,524 Total derivatives not designated as hedging instruments under GAAP $ 1,829 $ 13,993 $ 5,479 $ 8,056 Total Derivatives $ 1,829 $ 13,993 $ 5,479 $ 8,056 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 June 30, 2019 and December 31, 2018 , information related to these offsetting arrangements were as follows (in thousands): As of June 30, 2019 Description Gross amounts of recognized assets/liabilities Gross amount offset in the balance sheet Net amounts of assets/liabilities in balance sheet Gross amounts not offset in the balance sheet Net amount Financial Instruments Cash Collateral Posted SJI (includes SJG and all other consolidated subsidiaries): Derivatives - Energy Related Assets $ 46,871 $ — $ 46,871 $ (25,996 ) (A) $ — $ 20,875 Derivatives - Energy Related Liabilities $ (42,507 ) $ — $ (42,507 ) $ 25,996 (B) $ 10,371 $ (6,140 ) Derivatives - Other $ (12,541 ) $ — $ (12,541 ) $ — $ — $ (12,541 ) SJG: Derivatives - Energy Related Assets $ 1,829 $ — $ 1,829 $ (45 ) (A) $ — $ 1,784 Derivatives - Energy Related Liabilities $ (6,293 ) $ — $ (6,293 ) $ 45 (B) $ 5,794 $ (454 ) Derivatives - Other $ (7,700 ) $ — $ (7,700 ) $ — $ — $ (7,700 ) As of December 31, 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 $ 61,190 $ — $ 61,190 $ (21,045 ) (A) $ (7,252 ) $ 32,893 Derivatives - Energy Related Liabilities $ (31,390 ) $ — $ (31,390 ) $ 21,045 (B) $ — $ (10,345 ) Derivatives - Other $ (7,873 ) $ — $ (7,873 ) $ — $ — $ (7,873 ) SJG: Derivatives - Energy Related Assets $ 5,479 $ — $ 5,479 $ (347 ) (A) $ 688 $ 5,820 Derivatives - Energy Related Liabilities $ (2,189 ) $ — $ (2,189 ) $ 347 (B) $ — $ (1,842 ) Derivatives - Other $ (5,867 ) $ — $ (5,867 ) $ — $ — $ (5,867 ) (A) The balances at June 30, 2019 and December 31, 2018 were related to derivative liabilities which can be net settled against derivative assets. (B) The balances at June 30, 2019 and December 31, 2018 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 six months ended June 30, 2019 and 2018 are as follows (in thousands): Three Months Ended Six Months Ended Derivatives in Cash Flow Hedging Relationships under GAAP 2019 2018 2019 2018 SJI (includes SJG and all other consolidated subsidiaries): Interest Rate Contracts: Losses reclassified from AOCL into income (a) $ (12 ) $ (12 ) $ (24 ) $ (24 ) SJG: Interest Rate Contracts: Losses reclassified from AOCL into income (a) $ (12 ) $ (12 ) (24 ) (24 ) (a) Included in Interest Charges Three Months Ended Six Months Ended Derivatives Not Designated as Hedging Instruments under GAAP 2019 2018 2019 2018 SJI (includes SJG and all other consolidated subsidiaries): (Losses) Gains on energy-related commodity contracts (a) $ (143 ) $ (6,178 ) $ (12,203 ) $ 17,175 (Losses) Gains on interest rate contracts (b) (1,745 ) 620 (2,835 ) 2,248 Total $ (1,888 ) $ (5,558 ) $ (15,038 ) $ 19,423 (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 June 30, 2019 , is less than $0.5 million . If the credit-risk-related contingent features underlying these agreements were triggered on June 30, 2019 , SJI would have been required to settle the instruments immediately or post collateral to its counterparties of less than $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 | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 Total Level 1 Level 2 Level 3 SJI (includes SJG and all other consolidated subsidiaries): Assets Available-for-Sale Securities (A) $ 41 $ 41 $ — $ — Derivatives – Energy Related Assets (B) 46,871 6,935 16,212 23,724 $ 46,912 $ 6,976 $ 16,212 $ 23,724 SJG: Assets Derivatives – Energy Related Assets (B) $ 1,829 $ 45 $ 24 $ 1,760 $ 1,829 $ 45 $ 24 $ 1,760 SJI (includes SJG and all other consolidated subsidiaries): Liabilities Derivatives – Energy Related Liabilities (B) $ 42,507 $ 20,245 $ 8,498 $ 13,764 Derivatives – Other (C) 12,541 — 12,541 — $ 55,048 $ 20,245 $ 21,039 $ 13,764 SJG: Liabilities Derivatives – Energy Related Liabilities (B) $ 6,293 $ 5,839 $ 402 $ 52 Derivatives – Other (C) 7,700 — 7,700 — $ 13,993 $ 5,839 $ 8,102 $ 52 As of December 31, 2018 Total Level 1 Level 2 Level 3 SJI (includes SJG and all other consolidated subsidiaries): Assets Available-for-Sale Securities (A) $ 41 $ 41 $ — $ — Derivatives – Energy Related Assets (B) 61,190 9,955 23,429 27,806 $ 61,231 $ 9,996 $ 23,429 $ 27,806 SJG: Assets Derivatives – Energy Related Assets (B) $ 5,479 $ 348 $ 126 $ 5,005 $ 5,479 $ 348 $ 126 $ 5,005 SJI (includes SJG and all other consolidated subsidiaries): Liabilities Derivatives – Energy Related Liabilities (B) $ 31,390 $ 7,291 $ 12,354 $ 11,745 Derivatives – Other (C) 7,873 — 7,873 — $ 39,263 $ 7,291 $ 20,227 $ 11,745 SJG: Liabilities Derivatives – Energy Related Liabilities (B) $ 2,189 $ 1,035 $ 1,077 $ 77 Derivatives – Other (C) 5,867 — 5,867 — $ 8,056 $ 1,035 $ 6,944 $ 77 (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, except for ranges): SJI (includes SJG and all other consolidated subsidiaries) : Type Fair Value at June 30, 2019 Valuation Technique Significant Unobservable Input Range [Weighted Average] Assets Liabilities Forward Contract - Natural Gas $18,772 $9,815 Discounted Cash Flow Forward price (per dt) $1.69 - $8.31 [$2.50] (A) Forward Contract - Electric $4,952 $3,949 Discounted Cash Flow Fixed electric load profile (on-peak) 40.24% - 100.00% [54.98%] (B) Fixed electric load profile (off-peak) 0.00% - 59.76% [45.02%] (B) Type Fair Value at December 31, 2018 Valuation Technique Significant Unobservable Input Range [Weighted Average] Assets Liabilities Forward Contract - Natural Gas $20,706 $8,976 Discounted Cash Flow Forward price (per dt) $1.56 - $9.00 [$3.12] (A) Forward Contract - Electric $7,100 $2,769 Discounted Cash Flow Fixed electric load profile (on-peak) 0.00% - 100.00% [54.55%] (B) Fixed electric load profile (off-peak) 0.00% - 100.00% [45.45%] (B) SJG: Type Fair Value at June 30, 2019 Valuation Technique Significant Unobservable Input Range Assets Liabilities Forward Contract - Natural Gas $ 1,760 $ 52 Discounted Cash Flow Forward price (per dt) $1.78 - $5.78 [$2.66] (A) Type Fair Value at December 31, 2018 Valuation Technique Significant Unobservable Input Range Assets Liabilities Forward Contract - Natural Gas $ 5,005 $ 77 Discounted Cash Flow Forward price (per dt) $3.13 - $6.00 [$4.53] (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 six months ended June 30, 2019 and 2018 , using significant unobservable inputs (Level 3), are as follows (in thousands): Three Months Ended Six Months Ended SJI (includes SJG and all other consolidated subsidiaries): Balance at beginning of period $ 8,277 $ 16,061 Other Changes in Fair Value from Continuing and New Contracts, Net (A) 6,553 4,285 Settlements (4,870 ) (10,386 ) Balance at end of period $ 9,960 $ 9,960 SJG: Balance at beginning of period $ 1,706 $ 4,928 Other Changes in Fair Value from Continuing and New Contracts, Net (A) 2 1,708 Settlements — (4,928 ) Balance at end of period $ 1,708 $ 1,708 Three Months Ended Six Months Ended SJI (includes SJG and all other consolidated subsidiaries): Balance at beginning of period $ 16,586 $ 3,110 Other Changes in Fair Value from Continuing and New Contracts, Net (A) 6,215 10,204 Settlements (4,440 ) 5,047 Balance at end of period $ 18,361 $ 18,361 SJG: Balance at beginning of period $ (6 ) $ 2,052 Other Changes in Fair Value from Continuing and New Contracts, Net (A) 6,003 5,997 Settlements — (2,052 ) Balance at end of period $ 5,997 $ 5,997 (A) Represents total gains (losses) included in earnings for SJI and SJG for the three and six months ended June 30, 2019 and 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 June 30, 2019 and 2018, respectively. These gains (losses) are included in Operating Revenues-Nonutility on the condensed consolidated statements of income. |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2019 | |
Long-term Debt, Unclassified [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT: During the six months ended June 30, 2019, SJI provided four Notices of Optional Prepayment to the holders of its Floating Rate Senior Notes, Series 2018D, due June 20, 2019 of the Company’s intent to prepay the $475.0 million aggregate principal amount outstanding. As a result of these notices, the Company has repaid the $475.0 million aggregate principal amount in full. During the six months ended June 30, 2019, SJI paid off $60.0 million principal amount outstanding on its 3.30% Senior Notes, Series 2014A-1, due June 26, 2019, and paid off $40.0 million principal amount outstanding on its Floating Rate Senior Notes, Series 2014B-1, due June 26, 2019. Also during the six months ended June 30, 2019, SJG issued $10.0 million of debt by drawing on its $400.0 million term loan credit agreement. All loans under this credit agreement are due and payable in April 2020; as such, the issuance amount is recorded in current portion of long-term debt on the condensed consolidated balance sheets. SJI and SJG did not issue or retire any other long-term debt during the six months ended June 30, 2019 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | COMMON STOCK: The following shares were issued and outstanding for SJI: 2019 Beginning Balance, January 1 85,506,218 New Issuances During the Period: Settlement of Equity Forward Sale Agreement 6,779,661 Stock-Based Compensation Plan 104,470 Ending Balance, June 30 92,390,349 The par value ( $1.25 per share) of stock issued was recorded in Common Stock and the net excess over par value of approximately $181.7 million was recorded in Premium on Common Stock. The increase is discussed under "Forward Shares" below. There were 2,339,139 shares of SJG's common stock (par value $2.50 per share) outstanding as of June 30, 2019 . SJG did not issue any new shares during the period. SJIU owns all of the outstanding common stock of SJG. FORWARD SHARES - In the second quarter of 2018, 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. On January 15, 2019, SJI settled its equity forward sale agreement by physically delivering the remaining 6,779,661 shares of common stock and receiving net cash proceeds of approximately $189.0 million . The forward price used to determine cash proceeds received by SJI at settlement was calculated based on the initial forward sale price, as adjusted for underwriting fees, interest rate adjustments as specified in the equity forward agreement and any dividends paid on our common stock during the forward period. CONVERTIBLE UNITS - In 2018, SJI issued and sold 5,750,000 Equity Units, initially in the form of Corporate Units, which included 750,000 Corporate Units pursuant to the underwriters’ option. Each Corporate Unit has a stated amount of $50 and is comprised of (a) a purchase contract obligating the holder to purchase from the Company, and for the Company to sell to the holder for a price in cash of $50 , on the purchase contract settlement date, or April 15, 2021, subject to earlier termination or settlement, a certain number of shares of common stock; and (b) a 1/20, or 5% , undivided beneficial ownership interest in $1,000 principal amount of SJI’s 2018 Series A 3.70% Remarketable Junior Subordinated Notes due 2031. SJI will pay the holder quarterly contract adjustment payments at a rate of 3.55% per year on the stated amount of $50 per Equity Unit, in respect of each purchase contract, subject to the Company's right to defer these payments. The net proceeds, after amortization of the underwriting discounts, are recorded as Long-Term Debt on the condensed consolidated balance sheets. SJI's EPS — SJI's Basic EPS is based on the weighted-average number of common shares outstanding. The incremental shares required for inclusion in the denominator for the diluted EPS calculation were 115,798 and 452,210 for the six months ended June 30, 2019 and 2018 , respectively. For the three months ended June 30, 2019 and 2018, incremental shares of 100,012 and 806,695 , respectively, were not included in the denominator for the diluted EPS calculation because they would have an antidilutive effect on EPS. These additional shares relate to SJI's restricted stock as discussed in Note 2, along with the impact of the Equity Units discussed above, accounted for under the treasury stock method. DIVIDENDS PER SHARE — SJI's dividends per share were $0.29 and $0.28 for the three months ended June 30, 2019 and 2018 , respectively, and $0.58 and $0.56 for the six months ended June 30, 2019 and 2018 , respectively. Cash dividends were not declared or paid by the Utilities to SJI during the three and six months ended June 30, 2019 or 2018 . ACCUMULATED OTHER COMPREHENSIVE LOSS: The following table summarizes the changes in SJI's AOCL for the three and six months ended June 30, 2019 (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 April 1, 2019 (a) $ (25,626 ) $ (354 ) $ (10 ) $ (97 ) $ (26,087 ) Other comprehensive income before reclassifications — — — — — Amounts reclassified from AOCL (b) — 8 — — 8 Net current period other comprehensive income — 8 — — 8 Balance at June 30, 2019 (a) $ (25,626 ) $ (346 ) $ (10 ) $ (97 ) $ (26,079 ) 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, 2019 (a) $ (25,626 ) $ (362 ) $ (10 ) $ (97 ) $ (26,095 ) Other comprehensive income before reclassifications — — — — — Amounts reclassified from AOCL (b) — 16 — — 16 Net current period other comprehensive income — 16 — — 16 Balance at June 30, 2019 (a) $ (25,626 ) $ (346 ) $ (10 ) $ (97 ) $ (26,079 ) (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 six months ended June 30, 2019 (in thousands): Components of AOCL Amounts Reclassified from AOCL Affected Line Item in the Condensed Consolidated Statements of Income Three Months Ended Six Months Ended Unrealized Loss on Derivatives-Other - interest rate contracts designated as cash flow hedges $ 12 $ 24 Interest Charges Income Taxes (4 ) (8 ) Income Taxes (a) Losses from reclassifications for the period net of tax $ 8 $ 16 (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 six months ended June 30, 2019 (in thousands): Postretirement Liability Adjustment Unrealized Gain (Loss) on Derivatives-Other Total Balance at April 1, 2019 (a) $ (21,901 ) $ (448 ) $ (22,349 ) Other comprehensive loss before reclassifications — — — Amounts reclassified from AOCL (b) — 8 8 Net current period other comprehensive income — 8 8 Balance at June 30, 2019 (a) $ (21,901 ) $ (440 ) $ (22,341 ) Postretirement Liability Adjustment Unrealized Gain (Loss) on Derivatives-Other Total Balance at January 1, 2019 (a) $ (21,901 ) $ (456 ) $ (22,357 ) Other comprehensive loss before reclassifications — — — Amounts reclassified from AOCL (b) — 16 16 Net current period other comprehensive income (loss) — 16 16 Balance at June 30, 2019 (a) $ (21,901 ) $ (440 ) $ (22,341 ) (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 six months ended June 30, 2019 are as follows (in thousands): Components of AOCL Amounts Reclassified from AOCL Affected Line Item in the Condensed Statements of Income Three Months Ended Six Months Ended Unrealized Loss in on Derivatives - Other - Interest Rate Contracts designated as cash flow hedges $ 12 $ 24 Interest Charges Income Taxes (4 ) (8 ) Income Taxes (a) Losses from reclassifications for the period net of tax $ 8 $ 16 (a) Determined using a combined average statutory tax rate of 27% . |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE: At contract inception, SJI and SJG assess the goods and services promised in all of its contracts with customers, and identify a performance obligation for each promise to transfer to a customer a distinct good or service. SJI revenues from contracts with customers totaled $231.8 million and $201.9 million for the three months ended June 30, 2019 and 2018, respectively , and $838.5 million and $645.8 million for the six months ended June 30, 2019 and 2018, respectively. SJG revenues from contracts with customers totaled $47.0 million and $64.1 million for the three months ended June 30, 2019 and 2018, respectively , and $280.0 million and $258.0 million for the six months ended June 30, 2019 and 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 (including CIP, AIRP, SHARP, and WNC), and (b) both utility and nonutility revenue from derivative contracts at the SJG and ETG gas utility, wholesale energy 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 six months ended June 30, 2019 (in thousands): Three Months Ended SJG Utility Operations ETG Utility Operations ELK Utility Operations Wholesale Energy Operations Retail Electric Operations On-Site Energy Production Appliance Service Operations Corporate Services and Intersegment Total Customer Type: Residential $ 28,679 $ 27,503 $ 207 $ — $ 2,953 $ — $ 484 $ — $ 59,826 Commercial & Industrial 15,503 16,065 482 111,794 12,419 14,788 — (3,418 ) 167,633 OSS & Capacity Release 2,244 — — — — — — — 2,244 Other 571 1,527 39 — — — — — 2,137 $ 46,997 $ 45,095 $ 728 $ 111,794 $ 15,372 $ 14,788 $ 484 $ (3,418 ) $ 231,840 Product Line: Gas $ 46,997 $ 45,095 $ 728 $ 111,794 $ — $ — $ — $ (1,234 ) $ 203,380 Electric — — — — 15,372 — — (2,184 ) 13,188 Solar — — — — — 6,438 — — 6,438 CHP — — — — — 6,794 — — 6,794 Landfills — — — — — 1,556 — — 1,556 Other — — — — — — 484 — 484 $ 46,997 $ 45,095 $ 728 $ 111,794 $ 15,372 $ 14,788 $ 484 $ (3,418 ) $ 231,840 Six Months Ended SJG Utility Operations ETG Utility Operations ELK Utility Operations Wholesale Energy Operations Retail Electric Operations On-Site Energy Production Appliance Service Operations Corporate Services and Intersegment Total Customer Type: Residential $ 213,633 $ 127,492 $ 1,961 $ — $ 6,761 $ — $ 1,015 $ — $ 350,862 Commercial & Industrial 61,091 58,213 2,140 311,561 25,422 26,118 — (6,425 ) 478,120 OSS & Capacity Release 4,014 — — — — — — — 4,014 Other 1,243 4,174 104 — — — — — 5,521 $ 279,981 $ 189,879 $ 4,205 $ 311,561 $ 32,183 $ 26,118 $ 1,015 $ (6,425 ) $ 838,517 Product Line: Gas $ 279,981 $ 189,879 $ 4,205 $ 311,561 $ — $ — $ — $ (2,634 ) $ 782,992 Electric — — — — 32,183 — — (3,791 ) 28,392 Solar — — — — — 9,014 — — 9,014 CHP — — — — — 14,153 — — 14,153 Landfills — — — — — 2,951 — — 2,951 Other — — — — — — 1,015 — 1,015 $ 279,981 $ 189,879 $ 4,205 $ 311,561 $ 32,183 $ 26,118 $ 1,015 $ (6,425 ) $ 838,517 Disaggregated revenues from contracts with customers, by both customer type and product line, are disclosed below, by operating segment, for the three and six months ended June 30, 2018 (in thousands): Three Months Ended June 30, 2018 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 $ 43,982 $ — $ — $ — $ — $ 6,391 $ — $ 451 $ — $ 50,824 Commercial & Industrial 18,563 — — 76,376 15,121 22,430 24,734 — (7,705 ) 149,519 OSS & Capacity Release 972 — — — — — — — — 972 Other 539 — — — — — — — — 539 $ 64,056 $ — $ — $ 76,376 $ 15,121 $ 28,821 $ 24,734 $ 451 $ (7,705 ) $ 201,854 Product Line: Gas $ 64,056 $ — $ — $ 76,376 $ 15,121 $ — $ — $ — $ (1,914 ) $ 153,639 Electric — — — — — 28,821 — — (2,012 ) 26,809 Solar — — — — — — 15,905 — (3,779 ) 12,126 CHP — — — — — — 7,161 — — 7,161 Landfills — — — — — — 1,668 — — 1,668 Other — — — — — — — 451 — 451 $ 64,056 $ — $ — $ 76,376 $ 15,121 $ 28,821 $ 24,734 $ 451 $ (7,705 ) $ 201,854 Six Months Ended June 30, 2018 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 $ 191,244 $ — $ — — — $ 14,487 — $ 971 — $ 206,702 Commercial & Industrial 59,368 — — 250,222 48,367 44,380 45,891 — (16,475 ) 431,753 OSS & Capacity Release 6,176 — — — — — — — — 6,176 Other 1,202 — — — — — — — — 1,202 $ 257,990 $ — $ — $ 250,222 $ 48,367 $ 58,867 $ 45,891 $ 971 $ (16,475 ) $ 645,833 Product Line: Gas $ 257,990 $ — $ — $ 250,222 $ 48,367 — — — $ (6,488 ) $ 550,091 Electric — — — — — 58,867 — — (3,680 ) 55,187 Solar — — — — — — 27,741 — (6,307 ) 21,434 CHP — — — — — — 15,014 — — 15,014 Landfills — — — — — — 3,136 — — 3,136 Other — — — — — — — 971 — 971 $ 257,990 $ — $ — $ 250,222 $ 48,367 $ 58,867 $ 45,891 $ 971 $ (16,475 ) $ 645,833 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 1/1/19 $ 337,502 $ 79,538 Ending balance as of 6/30/19 223,314 21,253 Increase (Decrease) $ (114,188 ) $ (58,285 ) Beginning balance as of 1/1/18 $ 202,379 $ 73,377 Ending balance as of 6/30/18 196,601 24,464 Increase (Decrease) $ (5,778 ) $ (48,913 ) SJG: Beginning balance as of 1/1/19 $ 101,572 $ 43,271 Ending balance as of 6/30/19 90,190 8,415 Increase (Decrease) $ (11,382 ) $ (34,856 ) Beginning balance as of 1/1/18 $ 78,571 $ 54,980 Ending balance as of 6/30/18 95,420 9,721 Increase (Decrease) $ 16,849 $ (45,259 ) (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 six months ended June 30, 2019 and 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 COMBINATION
BUSINESS COMBINATION | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | BUSINESS COMBINATION: On July 1, 2018, the Company completed the Acquisition of ETG and ELK. The Company completed the Acquisition for total consideration of $1.72 billion in cash, inclusive of $24.7 million of certain net working capital adjustments. Of the total, $1.71 billion relates to the acquisition of ETG, while $10.9 million relates to the acquisition of ELK. 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. 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 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 $ 1,202,435 Accounts Receivable 45,875 Provision for Uncollectibles (6,579 ) Natural Gas in Storage 12,204 Materials and Supplies 345 Other Prepayments and Current Assets 200 Deferred Income Taxes 39,470 Regulatory Assets 136,212 Goodwill 700,286 Total assets acquired 2,130,448 Accounts Payable 13,089 Other Current Liabilities 9,185 Environmental Remediation Costs - Current 7,100 Pension and Other Postretirement Benefits 3,213 Environmental Remediation Costs - Non Current 66,165 Regulatory Liabilities 192,811 Asset Retirement Obligation 113,093 Other 1,107 Total liabilities assumed 405,763 Total net assets acquired $ 1,724,685 Goodwill of $700.3 million arising from the Acquisition includes the potential synergies between ETG, ELK and the Company. The goodwill, of which $599.7 million is expected to be 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 the acquisition 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. 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, which ETG accomplished with its April 2019 base rate case filing (see Note 7). 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 June 2019, the BPU issued an Order approving a $300.0 million IIP effective July 1, 2019. The Order authorized the recovery of costs associated with ETG’s investments of approximately $300.0 million between 2019-2023 to replace its cast-iron and bare steel vintage main and related services. The Order provides for annual recovery of ETG's investments through a separate rate mechanism. Financial information of the acquirees The amount of ETG and ELK revenues included in the Company's condensed consolidated statement of income for the three and six months ended June 30, 2019 is $45.8 million and $189.3 million , respectively. The amount of ETG and ELK net income (loss) included in the Company's condensed consolidated statement of income for the three and six months ended June 30, 2019 is $(3.9) million and $27.4 million , respectively. |
GOODWILL AND IDENTIFIABLE INTAN
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS | GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS: GOODWILL - Goodwill represents future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration paid or transferred over the fair value of identifiable net assets acquired. Goodwill is not amortized, but instead is subject to impairment testing on an annual basis, and between annual tests whenever events or changes in circumstances indicate that the fair value of a reporting unit may be below its carrying amount. No such events have occurred during the three and six months ended June 30, 2019 . The Company performs its annual goodwill impairment test in the fourth quarter of each fiscal year beginning with a qualitative assessment at the reporting unit level. The reporting unit level is identified by assessing whether the components of our operating segments constitute businesses for which discrete financial information is available, whether segment management regularly reviews the operating results of those components and whether the economic and regulatory characteristics are similar. Factors utilized in the qualitative analysis performed on goodwill in our reporting units include, among other things, macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, company specific operating results and other relevant entity-specific events affecting individual reporting units. In the absence of sufficient qualitative factors, goodwill impairment is determined using a two-step process. Step one identifies potential impairment by comparing the fair value of a reporting unit to the book value, including goodwill. The Company estimates the fair value of a reporting unit using a discounted cash flow analysis. Management also considers other methods, which includes a market multiples analysis. Determining the fair value of a reporting unit requires judgment and the use of significant estimates and assumptions. Such estimates and assumptions include, but are not limited to, forecasts of future operating results, discount and growth rates, capital expenditures, tax rates, and projected terminal values. Changes in estimates or the application of alternative assumptions could produce significantly different results. If the fair value exceeds book value, goodwill of the reporting unit is not considered impaired. If the book value exceeds fair value, proceed to step two, which compares the implied fair value of the reporting unit's goodwill to the book value of the reporting unit goodwill. If the book value of goodwill exceeds the implied fair value, an impairment charge is recognized for the excess. Total goodwill of $703.9 million and $734.6 million is recorded on the condensed consolidated balance sheets as of June 30, 2019 and December 31, 2018 , respectively. As of June 30, 2019 , $700.2 million was included in the ETG Utility Operations segment, $3.6 million was included in the On-Site Energy Production segment, and $0.1 million was included in the ELK Utility Operations segment. As of December 31, 2018 , $730.9 million was included in the ETG Utility Operations segment, $3.6 million was included in the On-Site Energy Production segment, and $0.1 million was included in the ELK Utility Operations segment. SJG does not have any goodwill. A rollforward of the Company's goodwill is as follows (in thousands): 2019 Beginning Balance, January 1 $ 734,607 Acquisition-related Working Capital Settlement (15,600 ) Fair Value Adjustments During Measurement Period (15,143 ) Ending Balance, June 30 $ 703,864 IDENTIFIABLE INTANGIBLE ASSETS - The primary identifiable intangible assets of the Company are customer relationships and the AMA (see Note 1). The Company determines the useful lives of identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Considerations may include the contractual term of any agreement related to the asset, the historical performance of the asset, the Company's long-term strategy for using the asset, any laws or other local regulations which could impact the useful life of the asset, and other economic factors, including competition and specific market conditions. Intangible assets that are deemed to have definite lives (finite-lived intangible assets) are amortized, primarily on a straight-line basis, over their useful lives, generally ranging from 2 to 20 years. The cost (less accumulated amortization) of identifiable intangible assets of $25.1 million and $28.1 million are included in Other Noncurrent Assets on the consolidated balance sheets as of June 30, 2019 and December 31, 2018 , respectively. The decrease from the prior year is due to amortization recorded during the six months ended June 30, 2019 . No impairment charges were recorded on identifiable intangible assets during the three and six months ended June 30, 2019 or 2018. SJG does not have any identifiable intangible assets. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
LEASES | LEASES: SJI and SJG (collectively, the "Company" for purposes of Note 19) is a lessee for the following classes of underlying assets: equipment, real estate (land and building), and fleet vehicles. The Company determines if it is considered a lessee in an arrangement that qualifies as a lease at its inception based on whether or not the contract grants the Company the use of a specifically identified asset for a period of time, as well as both the right to direct the use of that asset and receive the significant economic benefits of the asset. SJI's and SJG's real estate leases, which are comprised primarily of office space and payment centers, represent approximately 77% and 35% , respectively, of operating lease liabilities and generally have a lease term between 5 and 15 years. The remaining operating leases primarily consist of fleet vehicles (SJI only), communication towers, and general office equipment, each with various lease terms ranging between 3 and 25 years. The majority of our leases are comprised of fixed lease payments, with a portion of the Company’s real estate, fleet vehicles, and office equipment leases including lease payments tied to levels of production, maintenance and property taxes, which may be subject to variability. The Company does not have any finance leases. The Company also evaluates contracts in which it is the owner of an underlying asset in the same manner as if it is a lessee, to determine if it should be considered the lessor of that asset. SJI has one contract where it is considered the lessor, see "Thermal Facility" below; SJG is not considered the lessor of any assets. As a practical expedient permitted under Topic 842, the Company has elected to account for the lease and non-lease components as a single lease component for all leases. Lease payments, which may include lease components, non-lease components and non-components, are included in the measurement of the Company’s lease liabilities to the extent that such payments are either fixed amounts or variable amounts that depend on a rate or index as stipulated in the lease contract. The Company discounts its lease liability using an estimated incremental borrowing rate computed based on its existing term loan facility adjusted for lease term. On January 1, 2019, the discount rate used on existing leases at adoption was determined using the remaining lease term and available data as of that date based on the Company's collateralized incremental interest rate to borrow over a comparable term. For new or modified leases starting in 2019, the discount rate is determined using available data at lease commencement and is based on its collateralized incremental interest rate to borrow over the lease term, including any reasonably certain renewal periods. Some of its lease agreements, primarily related to real estate, include Company options to either extend and/or early terminate the lease, the costs of which are included in our lease liability to the extent that such options are reasonably certain of being exercised. Leases with renewal options allow the Company to extend the lease term typically between 1 and 5 years. When determining the lease term, renewal options reasonably certain of being exercised are included in the lease term. When determining if a renewal option is reasonably certain of being exercised, the Company considers several economic factors, including the significance of leasehold improvements incurred on the property, whether the asset is difficult to replace, underlying contractual obligations, or specific characteristics unique to that particular lease that would make it reasonably certain that we would exercise such option. Renewal options were generally not included in the lease term for the Company’s existing leases. The Company does not generally enter into leases involving the construction or design of the underlying asset, and nearly all of the assets we lease are not specialized in nature. Our lease agreements generally do not include restrictions, financial covenants or residual value guarantees. As stated in Note 1, SJI and SJG had $3.1 million and $0.5 million , respectively, of right-of-use assets upon adoption of Topic 842 on January 1, 2019, with lease liabilities of the same amount. As of June 30, 2019 , SJI recognized right-of-use assets and lease liabilities of $2.3 million each for operating leases, with the difference being amortization. The lease liability is comprised of approximately $1.8 million of real estate leases, $0.4 million of equipment leases and $0.1 million of fleet vehicle leases. As of June 30, 2019 , SJG recognized right-of-use assets and lease liabilities of $0.4 million each for operating leases, with the difference also including amortization. The lease liability is comprised of approximately $0.3 million of equipment leases and $0.1 million of real estate leases. SJI and SJG recorded the right-of-use assets in Other Noncurrent Assets and the lease liabilities in Other Current and Noncurrent Liabilities (as shown in the table below) on the condensed consolidated balance sheets as of June 30, 2019 . The maturity of the Company’s operating lease liabilities as of June 30, 2019 is as follows (in thousands): As of June 30, 2019 SJI Consolidated SJG 2019 (excluding the six months ended June 30, 2019) $ 850 $ 91 2020 1,080 152 2021 233 39 2022 65 21 2023 34 19 Thereafter 114 114 Total future minimum lease payments 2,376 436 Less imputed interest 82 38 Total lease payments $ 2,294 $ 398 Included in the condensed consolidated balance sheet Current lease liabilities (included in Other Current Liabilities) $ 1,519 $ 169 Long-term lease liabilities (included in Other Noncurrent Liabilities) 775 229 Total lease liabilities $ 2,294 $ 398 The total operating lease cost for SJI was $0.8 million and $1.6 million during the three and six months ended June 30, 2019 , respectively. The total operating lease cost for SJG was $0.1 million and $0.2 million during the three and six months ended June 30, 2019 , respectively. Short-term lease costs were immaterial for both SJI and SJG. Neither SJI nor SJG had any sublease income during the three and six months ended June 30, 2019 . Operating cash flows from operating leases for SJI were $0.4 million and $0.8 million during the three and six months ended June 30, 2019 , respectively. Operating cash flows from operating leases for SJG were $0.1 million and $0.2 million during the three and six months ended June 30, 2019 , respectively. Neither SJI nor SJG have leases with related parties or leverage lease arrangements. There are no leases that have not yet commenced but that create significant rights and obligations. SJI had $0.4 million and $0.8 million of variable lease payments pertaining to leased back assets during the three and six months ended June 30, 2019 , respectively. As discussed in Note 1 under "Agreement to Sell Solar Assets," SJI has solar assets that are being leased back from the buyer; however these assets were leased back in 2018 and are treated as operating leases. As per the "package of expedients" discussed in Note 1, SJI is not required to reassess under Topic 842 the Company’s prior conclusions about lease identification or classification. The following summarizes our contractual obligations for operating leases and their applicable payment due dates, as of December 31, 2018 under ASC Topic 840, prior to the implementation of ASC 842: Total Up to 1 year Years 2&3 Years 4&5 More than 5 years SJI Consolidated 1,885 838 916 131 — SJG 175 56 112 7 — Supplemental Non-Cash Disclosures SJI and SJG did not record any new leases during the three and six months ended June 30, 2019 . The weighted average remaining lease term for SJI's operating leases is 2.5 years at a weighted average discount rate of 3.0% . The weighted average remaining lease term for SJG's operating leases is 6.6 years at a weighted average discount rate of 3.0% . Thermal Facility Marina is considered to be the lessor of certain thermal energy generating property and equipment under an operating lease which expires in May 2027 . As of June 30, 2019 and December 31, 2018, the carrying costs of this property and equipment under operating lease was $69.9 million and $71.5 million , respectively (net of accumulated depreciation of $39.3 million and $37.7 million , respectively), and is included in Nonutility Property and Equipment in the condensed consolidated balance sheets. Minimum future rentals to be received on this operating lease of property and equipment as of June 30, 2019 for the remainder of 2019 and each of the next five years and in the aggregate are (in thousands): Year ended June 30, 2019 (remaining six months) $ 2,698 2020 5,396 2021 5,396 2022 5,396 2023 5,396 2024 5,396 Thereafter 13,042 Total minimum future rentals $ 42,720 Minimum future rentals do not include additional amounts to be received based on actual use of the leased property. |
LEASES | LEASES: SJI and SJG (collectively, the "Company" for purposes of Note 19) is a lessee for the following classes of underlying assets: equipment, real estate (land and building), and fleet vehicles. The Company determines if it is considered a lessee in an arrangement that qualifies as a lease at its inception based on whether or not the contract grants the Company the use of a specifically identified asset for a period of time, as well as both the right to direct the use of that asset and receive the significant economic benefits of the asset. SJI's and SJG's real estate leases, which are comprised primarily of office space and payment centers, represent approximately 77% and 35% , respectively, of operating lease liabilities and generally have a lease term between 5 and 15 years. The remaining operating leases primarily consist of fleet vehicles (SJI only), communication towers, and general office equipment, each with various lease terms ranging between 3 and 25 years. The majority of our leases are comprised of fixed lease payments, with a portion of the Company’s real estate, fleet vehicles, and office equipment leases including lease payments tied to levels of production, maintenance and property taxes, which may be subject to variability. The Company does not have any finance leases. The Company also evaluates contracts in which it is the owner of an underlying asset in the same manner as if it is a lessee, to determine if it should be considered the lessor of that asset. SJI has one contract where it is considered the lessor, see "Thermal Facility" below; SJG is not considered the lessor of any assets. As a practical expedient permitted under Topic 842, the Company has elected to account for the lease and non-lease components as a single lease component for all leases. Lease payments, which may include lease components, non-lease components and non-components, are included in the measurement of the Company’s lease liabilities to the extent that such payments are either fixed amounts or variable amounts that depend on a rate or index as stipulated in the lease contract. The Company discounts its lease liability using an estimated incremental borrowing rate computed based on its existing term loan facility adjusted for lease term. On January 1, 2019, the discount rate used on existing leases at adoption was determined using the remaining lease term and available data as of that date based on the Company's collateralized incremental interest rate to borrow over a comparable term. For new or modified leases starting in 2019, the discount rate is determined using available data at lease commencement and is based on its collateralized incremental interest rate to borrow over the lease term, including any reasonably certain renewal periods. Some of its lease agreements, primarily related to real estate, include Company options to either extend and/or early terminate the lease, the costs of which are included in our lease liability to the extent that such options are reasonably certain of being exercised. Leases with renewal options allow the Company to extend the lease term typically between 1 and 5 years. When determining the lease term, renewal options reasonably certain of being exercised are included in the lease term. When determining if a renewal option is reasonably certain of being exercised, the Company considers several economic factors, including the significance of leasehold improvements incurred on the property, whether the asset is difficult to replace, underlying contractual obligations, or specific characteristics unique to that particular lease that would make it reasonably certain that we would exercise such option. Renewal options were generally not included in the lease term for the Company’s existing leases. The Company does not generally enter into leases involving the construction or design of the underlying asset, and nearly all of the assets we lease are not specialized in nature. Our lease agreements generally do not include restrictions, financial covenants or residual value guarantees. As stated in Note 1, SJI and SJG had $3.1 million and $0.5 million , respectively, of right-of-use assets upon adoption of Topic 842 on January 1, 2019, with lease liabilities of the same amount. As of June 30, 2019 , SJI recognized right-of-use assets and lease liabilities of $2.3 million each for operating leases, with the difference being amortization. The lease liability is comprised of approximately $1.8 million of real estate leases, $0.4 million of equipment leases and $0.1 million of fleet vehicle leases. As of June 30, 2019 , SJG recognized right-of-use assets and lease liabilities of $0.4 million each for operating leases, with the difference also including amortization. The lease liability is comprised of approximately $0.3 million of equipment leases and $0.1 million of real estate leases. SJI and SJG recorded the right-of-use assets in Other Noncurrent Assets and the lease liabilities in Other Current and Noncurrent Liabilities (as shown in the table below) on the condensed consolidated balance sheets as of June 30, 2019 . The maturity of the Company’s operating lease liabilities as of June 30, 2019 is as follows (in thousands): As of June 30, 2019 SJI Consolidated SJG 2019 (excluding the six months ended June 30, 2019) $ 850 $ 91 2020 1,080 152 2021 233 39 2022 65 21 2023 34 19 Thereafter 114 114 Total future minimum lease payments 2,376 436 Less imputed interest 82 38 Total lease payments $ 2,294 $ 398 Included in the condensed consolidated balance sheet Current lease liabilities (included in Other Current Liabilities) $ 1,519 $ 169 Long-term lease liabilities (included in Other Noncurrent Liabilities) 775 229 Total lease liabilities $ 2,294 $ 398 The total operating lease cost for SJI was $0.8 million and $1.6 million during the three and six months ended June 30, 2019 , respectively. The total operating lease cost for SJG was $0.1 million and $0.2 million during the three and six months ended June 30, 2019 , respectively. Short-term lease costs were immaterial for both SJI and SJG. Neither SJI nor SJG had any sublease income during the three and six months ended June 30, 2019 . Operating cash flows from operating leases for SJI were $0.4 million and $0.8 million during the three and six months ended June 30, 2019 , respectively. Operating cash flows from operating leases for SJG were $0.1 million and $0.2 million during the three and six months ended June 30, 2019 , respectively. Neither SJI nor SJG have leases with related parties or leverage lease arrangements. There are no leases that have not yet commenced but that create significant rights and obligations. SJI had $0.4 million and $0.8 million of variable lease payments pertaining to leased back assets during the three and six months ended June 30, 2019 , respectively. As discussed in Note 1 under "Agreement to Sell Solar Assets," SJI has solar assets that are being leased back from the buyer; however these assets were leased back in 2018 and are treated as operating leases. As per the "package of expedients" discussed in Note 1, SJI is not required to reassess under Topic 842 the Company’s prior conclusions about lease identification or classification. The following summarizes our contractual obligations for operating leases and their applicable payment due dates, as of December 31, 2018 under ASC Topic 840, prior to the implementation of ASC 842: Total Up to 1 year Years 2&3 Years 4&5 More than 5 years SJI Consolidated 1,885 838 916 131 — SJG 175 56 112 7 — Supplemental Non-Cash Disclosures SJI and SJG did not record any new leases during the three and six months ended June 30, 2019 . The weighted average remaining lease term for SJI's operating leases is 2.5 years at a weighted average discount rate of 3.0% . The weighted average remaining lease term for SJG's operating leases is 6.6 years at a weighted average discount rate of 3.0% . Thermal Facility Marina is considered to be the lessor of certain thermal energy generating property and equipment under an operating lease which expires in May 2027 . As of June 30, 2019 and December 31, 2018, the carrying costs of this property and equipment under operating lease was $69.9 million and $71.5 million , respectively (net of accumulated depreciation of $39.3 million and $37.7 million , respectively), and is included in Nonutility Property and Equipment in the condensed consolidated balance sheets. Minimum future rentals to be received on this operating lease of property and equipment as of June 30, 2019 for the remainder of 2019 and each of the next five years and in the aggregate are (in thousands): Year ended June 30, 2019 (remaining six months) $ 2,698 2020 5,396 2021 5,396 2022 5,396 2023 5,396 2024 5,396 Thereafter 13,042 Total minimum future rentals $ 42,720 Minimum future rentals do not include additional amounts to be received based on actual use of the leased property. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT: See Note 11 - Commitments and Contingencies, Pending Litigation for information related to a court decision issued against SJG and SJRG on August 6, 2019 related to an ongoing pricing dispute related to two long-term gas supply contracts. SJI will be required to make payment by September 5, 2019 in an amount not materially different from what has been reserved. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
GENERAL | GENERAL - SJI provides a variety of energy-related products and services primarily through the following wholly-owned subsidiaries: ▪ SJIU is a holding company that owns SJG, and, as of July 1, 2018, ETG and 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. ▪ SJE acquires and markets electricity to retail end users. In November 2018, the Company sold SJE's retail gas businesses. ▪ SJRG markets natural gas storage, commodity and transportation assets along with fuel management services on a wholesale basis in the mid-Atlantic, Appalachian and southern states. ▪ SJEX owns oil, gas and mineral rights in the Marcellus Shale region of Pennsylvania. ▪ Marina develops and operates on-site energy-related projects. The significant wholly-owned subsidiaries of Marina include: • ACB, which owns and operates a natural gas fueled combined heating, cooling and power facility located in Atlantic City, New Jersey. • ACLE, BCLE, SCLE and SXLE, which own and operate LFGTE production facilities in Atlantic, Burlington, Salem and Sussex Counties located in New Jersey. ▪ SJESP receives commissions on service contracts from a third party. ▪ 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 direct and indirect wholly-owned subsidiaries (including SJG) and subsidiaries in which SJI has a controlling interest. All significant intercompany accounts and transactions have been eliminated in consolidation. Beginning as of the date of their acquisition, July 1, 2018, SJI is also reporting on a consolidated basis the combined operations of ETG and ELK. As permitted by the rules and regulations of the SEC, the accompanying unaudited condensed consolidated financial statements of SJI and SJG contain certain condensed financial information and exclude certain footnote disclosures normally included in annual audited consolidated financial statements prepared in accordance with GAAP. These financial statements should be read in conjunction with SJI’s and SJG's Annual Reports on Form 10-K for the year ended December 31, 2018 . In management’s opinion, the condensed consolidated financial statements of SJI and SJG reflect all normal recurring adjustments needed to fairly present their respective financial positions, operating results and cash flows at the dates and for the periods presented. SJI’s and SJG's businesses are subject to seasonal fluctuations and, accordingly, this interim financial information should not be the basis for estimating the full year’s operating results. |
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 FASB ASC Topic 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 Income 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. |
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) | 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 FASB ASC Topic 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. |
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). |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS - Other than as described below, no new accounting pronouncement had, or is expected to have, a material impact on the condensed consolidated financial statements of SJI, or the condensed financial statements of SJG. 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 accounted for as operating leases. Topic 842 also resulted 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 (ASU 2018-01) 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 ASUs 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. • In December 2018, the FASB issued ASU 2018-20, Narrow-Scope Improvements for Lessors . The amendments in this ASU permit lessors, as an accounting policy election, to not evaluate whether certain sales taxes and other similar taxes are lessor costs or lessee costs. A lessor making this election will exclude from the consideration in the contract all collections from lessees of taxes within the scope of the election and will provide certain disclosures. The amendments in this ASU related to certain lessor costs also require lessors to exclude from variable payments, and therefore revenue, lessor costs paid by lessees directly to third parties, and require lessors to account for costs excluded from the consideration of a contract that are paid by the lessor and reimbursed by the lessee as variable payments, and record those reimbursed costs as revenue. Lastly, the amendments in this ASU related to recognizing variable payments for contracts with lease and nonlease components require lessors to allocate (rather than recognize as currently required) certain variable payments to the lease and nonlease components when the changes in facts and circumstances on which the variable payment is based occur. • In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842) Codification Improvements . The amendments in this ASU reinstate a Topic 840 explicit exception for lessors that are not manufacturers or dealers for determining fair value of the leased property in Topic 842. This exception specifies that such lessors will use their cost, reflecting any volume or trade discounts that may apply, as the fair value of the underlying asset. However, if significant time lapses between the acquisition of the underlying asset and lease commencement, those lessors will be required to apply the definition of fair value (exit price) in Topic 820. Lastly, the amendments in this ASU added an explicit exception to the Topic 250, Accounting Changes and Error Corrections , paragraph 250-10-50-3 interim disclosure requirements in the Topic 842 transition disclosure requirements. The new guidance in ASU 2016-02, as well as all amendments discussed above, was effective for the Company beginning on January 1, 2019. The impact of adopting Topic 842 did not result in an adjustment to retained earnings as of January 1, 2019. As of January 1, 2019, the Company designed the necessary changes to its existing processes and configured all system requirements to adopt the new standard and applied its provisions to all contracts using the optional transition method discussed above, and by applying certain transition practical expedients. The Company elected the “package of practical expedients,” which permits the Company to not reassess under Topic 842 the Company’s prior conclusions about lease identification, lease classification and initial direct costs. The Company also elected the expedient not to evaluate existing or expired land easements under Topic 842 that were not previously accounted for as leases. The Company has elected not to use hindsight when determining the lease term at the effective date. The Company elected the short-term lease recognition exemption for all leases that qualify. For the leases that qualify, including leases effective at adoption, the Company will not recognize right-of-use assets or lease liabilities. The Company has elected the practical expedient to not separate lease and non-lease components for all leases. The Company’s non-lease components are primarily related to property maintenance on real estate leases, which varies based on future outcomes, and thus is recognized in rent expense when incurred. Additionally, the Company elected to apply a portfolio approach when establishing the discount rate for certain of its leases. The Company has leases for the following classes of underlying assets: equipment, real estate (land and building), and fleet vehicles. After adopting Topic 842, SJI and SJG had operating right-of-use assets of approximately $3.1 million and $0.5 million , respectively, as of January 1, 2019, with operating lease liabilities of the same amounts. The Company did not have any finance leases. The Company determines the initial classification and measurement of its right-of-use assets and lease liabilities at the lease commencement date and thereafter if modified. The lease term includes any renewal options that the Company is reasonably certain to exercise. The present value of lease payments is determined by using the interest rate implicit in the lease, if that rate is readily determinable. Otherwise, the Company uses its incremental borrowing rate, which is determined by using a portfolio approach based on the rate of interest in its existing collateralized term loan facility adjusted for lease term. Rent expense for operating leases is recognized on a straight-line basis over the reasonably certain lease term based on the total lease payments and is included in Operations Expense in the condensed consolidated statements of income. For all leases, rent payments that are based on a fixed index or rate are included in the measurement of right-of-use assets and lease liabilities using the index or rate at the lease commencement date. Rent payments that vary based on changes in future indexes or rates are expensed in the period incurred. For more information on the Company's leases, see Note 19. 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 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 October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities . The amendments in this ASU for determining whether a decision-making fee is a variable interest require reporting entities to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety (as currently required by GAAP). These amendments will create alignment between determining whether a decision-making fee is a variable interest and determining whether a reporting entity within a related party group is the primary beneficiary of a VIE. The standard is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2019 for public companies. 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 April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments . The amendments in this ASU provide codification improvements and further clarification on several topics, including ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , as well as ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10) . Since SJI and SJG have adopted the amendments in ASU 2017-12 (with no impact to the financial statements results of SJI or SJG) as of April 25, 2019 (the issuance date of ASU 2019-04), the effective date for the amendments to Topic 815 contained in ASU 2019-04 is as of the beginning of the first annual reporting period beginning after April 25, 2019. Early adoption is permitted, including adoption on any date on or after April 25, 2019. The amendments are effective for fiscal years and interim periods beginning after December 15, 2019. Early adoption in any interim period is permitted. Management is currently determining the impact that adoption of this guidance will have on the financial statements of SJI and SJG. In May 2019, the FASB issued ASU 2019-05, Financial Instruments - Credit Losses (Topic 326) . The amendments in this ASU provide optional targeted transition relief for entities adopting the provisions of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) , which introduced the expected credit losses methodology for the measurement of credit losses on financial assets measured at amortized cost basis, replacing the previous incurred loss methodology. The amendments in ASU 2019-05 provide entities that have certain instruments within the scope of Subtopic 326-20, Financial Instruments - Credit Losses - Measured at Amortized Cost , with an option to irrevocably elect the fair value option in Subtopic 825-10, Financial Instruments - Overall , applied on an instrument-by-instrument basis for eligible instruments, upon adoption of Topic 326. The fair value option election does not apply to held-to-maturity debt securities. An entity that elects the fair value option should subsequently apply the guidance in Subtopics 820-10, Fair Value Measurement - Overall , and 825-10. The amendments in ASU 2019-05, along with ASU 2016-13, are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Management is currently determining the impact that adoption of this guidance will have on the financial statements of SJI and SJG. |
FAIR VALUE OF FINANCIAL 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) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Asset Management Agreement Contract Purchase | The total purchase price was allocated as follows (in thousands): Natural Gas in Storage $ 9,685 Intangible Asset 19,200 Profit Sharing - Other Liabilities (17,546 ) Total Consideration $ 11,339 |
STOCK-BASED COMPENSATION PLAN (
STOCK-BASED COMPENSATION PLAN (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of the nonvested restricted stock awards outstanding and the assumptions used to estimate the fair value of the awards | The following table summarizes the nonvested restricted stock awards outstanding for SJI at June 30, 2019 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 - 2017 - TSR 41,103 $ 32.17 20.8 % 1.47 % 2017 - CEGR, Time 54,677 $ 33.69 N/A N/A 2018 - TSR 51,731 $ 31.05 21.9 % 2.00 % 2018 - CEGR, Time 86,038 $ 31.23 N/A N/A 2019 - TSR 38,934 $ 32.88 23.2 % 2.40 % 2019 - CEGR, Time 139,663 $ 31.26 N/A N/A Directors - 2019 30,028 $ 26.89 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 six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Officers & Key Employees $ 1,534 $ 1,090 $ 2,284 $ 2,190 Directors 202 206 404 412 Total Cost 1,736 1,296 2,688 2,602 Capitalized 47 (101 ) (34 ) (202 ) Net Expense $ 1,783 $ 1,195 $ 2,654 $ 2,400 |
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 six months ended June 30, 2019 , excluding accrued dividend equivalents: Officers and Other Key Employees Directors Weighted Average Fair Value Nonvested Shares Outstanding, January 1, 2019 411,809 26,416 $ 29.57 Granted 181,387 30,028 $ 30.94 Cancelled/Forfeited (33,516 ) — $ 31.60 Vested (147,534 ) (26,416 ) $ 26.04 Nonvested Shares Outstanding, June 30, 2019 412,146 30,028 $ 31.46 |
AFFILIATIONS, DISCONTINUED OP_2
AFFILIATIONS, DISCONTINUED OPERATIONS AND RELATED-PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Summary of operating results of discontinued operations | Summarized operating results of the discontinued operations for the three and six months ended June 30, 2019 and 2018 , were (in thousands, except per share amounts): Three Months Ended Six Months Ended 2019 2018 2019 2018 Loss before Income Taxes: Sand Mining $ (23 ) $ 7 $ (44 ) $ (33 ) Fuel Oil (96 ) (40 ) (153 ) (81 ) Income Tax Benefits 24 7 40 22 Loss from Discontinued Operations — Net $ (95 ) $ (26 ) $ (157 ) $ (92 ) 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 Six Months Ended 2019 2018 2019 2018 Operating Revenues/Affiliates: SJRG $ 1,142 $ 1,109 $ 2,426 $ 3,697 Marina 105 89 221 192 Other 20 23 40 46 Total Operating Revenue/Affiliates $ 1,267 $ 1,221 $ 2,687 $ 3,935 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 Six Months Ended 2019 2018 2019 2018 Costs of Sales/Affiliates (Excluding depreciation and amortization) SJRG* $ 3,335 $ 2,093 $ 6,582 $ 27,431 Operations Expense/Affiliates: SJI $ 5,694 $ 6,708 $ 10,420 $ 13,751 SJIU 578 — 578 — Millennium 789 744 1,552 1,441 Other 426 (117 ) 961 (232 ) Total Operations Expense/Affiliates $ 7,487 $ 7,335 $ 13,511 $ 14,960 *These costs are included in either SJG's Cost of Sales on the condensed statements of income, or Regulatory Assets on the condensed balance sheets. 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, 2018 , 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) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of common stock shares issued and outstanding | The following shares were issued and outstanding for SJI: 2019 Beginning Balance, January 1 85,506,218 New Issuances During the Period: Settlement of Equity Forward Sale Agreement 6,779,661 Stock-Based Compensation Plan 104,470 Ending Balance, June 30 92,390,349 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows (in thousands): As of June 30, 2019 Balance Sheet Line Item SJI SJG Cash and Cash Equivalents $ 12,193 $ 1,617 Restricted Investments 19,019 7,798 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 31,212 $ 9,415 As of December 31, 2018 Balance Sheet Line Item SJI SJG Cash and Cash Equivalents $ 30,030 $ 1,984 Restricted Investments 1,649 1,278 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 31,679 $ 3,262 |
Reconciliation of restricted cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows (in thousands): As of June 30, 2019 Balance Sheet Line Item SJI SJG Cash and Cash Equivalents $ 12,193 $ 1,617 Restricted Investments 19,019 7,798 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 31,212 $ 9,415 As of December 31, 2018 Balance Sheet Line Item SJI SJG Cash and Cash Equivalents $ 30,030 $ 1,984 Restricted Investments 1,649 1,278 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 31,679 $ 3,262 |
SEGMENTS OF BUSINESS (Tables)
SEGMENTS OF BUSINESS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segments of Business | Information about SJI’s operations in different reportable operating segments is presented below (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Operating Revenues: SJI Utilities: SJG Utility Operations 62,268 $ 76,801 $ 334,466 $ 311,260 ETG Utility Operations 44,854 — 185,028 — ELK Utility Operations 944 — 4,318 — Subtotal SJI Utilities 108,066 76,801 523,812 311,260 Energy Group: Wholesale Energy Operations 126,483 67,220 316,490 257,563 Retail Gas and Other Operations — 23,168 — 63,369 Retail Electric Operations 20,531 42,662 43,222 86,697 Subtotal Energy Group 147,014 133,050 359,712 407,629 Energy Services: On-Site Energy Production 14,788 24,734 26,118 45,891 Appliance Service Operations 484 451 1,015 971 Subtotal Energy Services 15,272 25,185 27,133 46,862 Corporate and Services 11,815 11,082 21,186 24,082 Subtotal 282,167 246,118 931,843 789,833 Intersegment Sales (15,233 ) (18,788 ) (27,611 ) (40,558 ) Total Operating Revenues $ 266,934 $ 227,330 $ 904,232 $ 749,275 Three Months Ended Six Months Ended 2019 2018 2019 2018 Operating Income (Loss): SJI Utilities: SJG Utility Operations $ 10,215 $ 8,443 $ 108,560 $ 101,244 ETG Utility Operations 2,051 — 46,200 — ELK Utility Operations (32 ) — 598 — Subtotal SJI Utilities 12,234 8,443 155,358 101,244 Energy Group: Wholesale Energy Operations (2,386 ) (10,472 ) (4,892 ) 65,185 Retail Gas and Other Operations — 1,659 — (4,099 ) Retail Electric Operations (2,313 ) 1,094 (3,969 ) 886 Subtotal Energy Group (4,699 ) (7,719 ) (8,861 ) 61,972 Energy Services: On-Site Energy Production 1,343 (100,435 ) 1,461 (100,989 ) Appliance Service Operations 421 442 1,016 945 Subtotal Energy Services 1,764 (99,993 ) 2,477 (100,044 ) Corporate and Services (433 ) (9,263 ) (5,555 ) (13,834 ) Total Operating Income (Loss) $ 8,866 $ (108,532 ) $ 143,419 $ 49,338 Depreciation and Amortization: SJI Utilities: SJG Utility Operations $ 23,083 $ 20,274 $ 45,785 $ 40,589 ETG Utility Operations 6,813 — 13,471 — ELK Utility Operations 113 — 225 — Subtotal SJI Utilities 30,009 20,274 59,481 40,589 Energy Group: Wholesale Energy Operations 25 29 48 52 Retail Gas and Other Operations — 78 — 153 Subtotal Energy Group 25 107 48 205 Energy Services: On-Site Energy Production 1,256 10,324 2,508 20,595 Appliance Service Operations — — — — Subtotal Energy Services 1,256 10,324 2,508 20,595 Corporate and Services 1,754 5,951 2,998 9,165 Total Depreciation and Amortization $ 33,044 $ 36,656 $ 65,035 $ 70,554 Interest Charges: SJI Utilities: SJG Utility Operations $ 7,896 $ 6,999 $ 15,744 $ 13,727 ETG Utility Operations 6,620 — 12,941 — ELK Utility Operations 5 — 11 — Subtotal SJI Utilities 14,521 6,999 28,696 13,727 Energy Group: Retail Gas and Other Operations — 105 — 251 Subtotal Energy Group — 105 — 251 Energy Services: On-Site Energy Production 2,138 4,098 4,423 7,945 Midstream 555 479 1,099 905 Corporate and Services 14,659 13,368 30,063 20,838 Subtotal 31,873 25,049 64,281 43,666 Intersegment Borrowings (3,439 ) (5,488 ) (7,194 ) (10,133 ) Total Interest Charges $ 28,434 $ 19,561 $ 57,087 $ 33,533 Three Months Ended Six Months Ended 2019 2018 2019 2018 Income Taxes: SJI Utilities: SJG Utility Operations $ 671 $ 482 $ 24,368 $ 22,318 ETG Utility Operations (809 ) — 6,093 — ELK Utility Operations (9 ) — 154 — Subtotal SJI Utilities (147 ) 482 30,615 22,318 Energy Group: Wholesale Energy Operations (481 ) (2,478 ) (958 ) 16,649 Retail Gas and Other Operations — 474 — (1,060 ) Retail Electric Operations (569 ) 307 (818 ) 249 Subtotal Energy Group (1,050 ) (1,697 ) (1,776 ) 15,838 Energy Services: On-Site Energy Production 121 (26,489 ) (357 ) (27,646 ) Appliance Service Operations 136 106 303 237 Subtotal Energy Services 257 (26,383 ) (54 ) (27,409 ) Midstream (33 ) (22 ) (65 ) 40 Corporate and Services (3,673 ) (4,352 ) (8,417 ) (6,344 ) Total Income Taxes $ (4,646 ) $ (31,972 ) $ 20,303 $ 4,443 Property Additions: SJI Utilities: SJG Utility Operations $ 67,257 $ 65,148 $ 122,562 $ 115,385 ETG Utility Operations 53,938 — 91,962 — ELK Utility Operations 983 — 1,628 — Subtotal SJI Utilities 122,178 65,148 216,152 115,385 Energy Group: Wholesale Energy Operations — 27 — 32 Retail Gas and Other Operations — 136 — 309 Subtotal Energy Group — 163 — 341 Energy Services: On-Site Energy Production 141 570 164 1,683 Subtotal Energy Services 141 570 164 1,683 Midstream 7 99 19 310 Corporate and Services 1 8,204 586 11,549 Total Property Additions $ 122,327 $ 74,184 $ 216,921 $ 129,268 June 30, 2019 December 31, 2018 Identifiable Assets: SJI Utilities: SJG Utility Operations $ 3,183,710 $ 3,118,236 ETG Utility Operations 2,291,156 2,148,175 ELK Utility Operations 19,043 16,482 Subtotal SJI Utilities 5,493,909 5,282,893 Energy Group: Wholesale Energy Operations 177,183 266,417 Retail Gas and Other Operations (A) 141 12,736 Retail Electric Operations 34,394 39,345 Subtotal Energy Group 211,718 318,498 Energy Services: On-Site Energy Production 170,251 195,329 Appliance Service Operations 81 — Subtotal Energy Services 170,332 195,329 Midstream 78,246 72,333 Discontinued Operations 1,742 1,777 Corporate and Services 317,842 387,482 Intersegment Assets (245,527 ) (301,735 ) Total Identifiable Assets $ 6,028,262 $ 5,956,577 (A) As of June 30, 2019, the remaining $0.1 million of assets in the retail gas and other operations segment represents outstanding accounts receivable balances. |
REGULATORY ASSETS AND REGULAT_2
REGULATORY ASSETS AND REGULATORY LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Schedule of Regulatory Assets | The Utilities Regulatory Assets as of June 30, 2019 consisted of the following items (in thousands): June 30, 2019 SJG ETG ELK Total SJI Environmental Remediation Costs: Expended - Net $ 136,772 $ 16,510 $ — $ 153,282 Liability for Future Expenditures 150,351 103,349 — 253,700 Deferred ARO Costs 33,659 10,655 128 44,442 Deferred Pension Costs - Unrecognized Prior Service Cost — 38,996 14 39,010 Deferred Pension and Other Postretirement Benefit Costs 79,466 2,607 30 82,103 Deferred Gas Costs - Net 60,993 — 549 61,542 SBC Receivable 150 — — 150 Deferred Interest Rate Contracts 7,700 — — 7,700 Energy Efficiency Tracker 4,919 — — 4,919 Pipeline Supplier Service Charges 571 — — 571 Pipeline Integrity Cost 5,325 — — 5,325 AFUDC - Equity Related Deferrals 10,224 — — 10,224 Weather Normalization — — 252 252 Other Regulatory Assets 9,734 9,085 225 19,044 Total Regulatory Assets $ 499,864 $ 181,202 $ 1,198 $ 682,264 The Utilities Regulatory Assets as of December 31, 2018 consisted of the following items (in thousands): December 31, 2018 SJG ETG ELK Total SJI Environmental Remediation Costs: Expended - Net $ 136,227 $ 10,875 $ — $ 147,102 Liability for Future Expenditures 148,071 104,594 — 252,665 Deferred ARO Costs 31,096 — — 31,096 Deferred Pension Costs - Unrecognized Prior Service Cost — 40,612 14 40,626 Deferred Pension and Other Postretirement Benefit Costs 80,121 2,607 30 82,758 Deferred Gas Costs - Net 57,889 — 289 58,178 SBC Receivable 2,173 — — 2,173 Deferred Interest Rate Contracts 5,867 — — 5,867 Energy Efficiency Tracker 2,319 — — 2,319 Pipeline Supplier Service Charges 617 — — 617 Pipeline Integrity Cost 5,140 — — 5,140 AFUDC - Equity Related Deferrals 13,914 — — 13,914 Weather Normalization — 3,210 139 3,349 Other Regulatory Assets 8,931 8,023 211 17,165 Total Regulatory Assets $ 492,365 $ 169,921 $ 683 $ 662,969 |
Schedule of Regulatory Liabilities | The Utilities Regulatory Liabilities as of June 30, 2019 consisted of the following items (in thousands): June 30, 2019 SJG ETG ELK Total SJI Excess Plant Removal Costs $ 17,910 $ 47,827 $ 1,386 $ 67,123 Excess Deferred Taxes 252,854 120,470 1,231 374,555 CIP Payable 1,606 — — 1,606 Weather Normalization — 1,641 — 1,641 Amounts to be Refunded to Customers — 12,750 — 12,750 Other Regulatory Liabilities — 283 — 283 Total Regulatory Liabilities $ 272,370 $ 182,971 $ 2,617 $ 457,958 The Utilities Regulatory Liabilities as of December 31, 2018 consisted of the following items (in thousands): December 31, 2018 SJG ETG ELK Total SJI Excess Plant Removal Costs $ 20,805 $ 47,909 $ 1,393 $ 70,107 Excess Deferred Taxes 259,863 118,757 1,231 379,851 Deferred Revenues - Net — 3,188 — 3,188 CIP Payable 5,871 — — 5,871 Amounts to be Refunded to Customers — 17,039 — 17,039 Other Regulatory Liabilities — 2,443 — 2,443 Total Regulatory Liabilities $ 286,539 $ 189,336 $ 2,624 $ 478,499 |
PENSION AND OTHER POSTRETIREM_2
PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Defined Benefit Plan [Abstract] | |
Schedule of defined benefit plans disclosures | For the three and six months ended June 30, 2019 and 2018 , 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 Six Months Ended 2019 2018 2019 2018 Service Cost $ 1,081 $ 639 $ 2,800 $ 2,816 Interest Cost 4,435 716 8,664 5,824 Expected Return on Plan Assets (4,942 ) (19 ) (10,135 ) (7,652 ) Amortizations: Prior Service Cost 27 (13 ) 53 58 Actuarial Loss 2,360 1,632 4,797 5,764 Net Periodic Benefit Cost 2,961 2,955 6,179 6,810 Capitalized Benefit Cost (374 ) (554 ) (968 ) (1,037 ) Deferred Benefit Cost (653 ) (374 ) (1,194 ) (1,125 ) Total Net Periodic Benefit Expense $ 1,934 $ 2,027 $ 4,017 $ 4,648 Other Postretirement Benefits Three Months Ended Six Months Ended 2019 2018 2019 2018 Service Cost $ 37 $ 360 $ 271 $ 441 Interest Cost 806 859 1,434 1,076 Expected Return on Plan Assets (1,133 ) (1,578 ) (2,282 ) (1,883 ) Amortizations: Prior Service Cost (145 ) (141 ) (288 ) (172 ) Actuarial Loss 321 340 584 451 Net Periodic Benefit Cost (114 ) (160 ) (281 ) (87 ) Capitalized Benefit Cost (99 ) — (155 ) (5 ) Deferred Benefit Cost 119 — 235 — Total Net Periodic Benefit Expense $ (94 ) $ (160 ) $ (201 ) $ (92 ) |
LINES OF CREDIT (Tables)
LINES OF CREDIT (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Line of Credit Facility [Abstract] | |
Schedule of lines of credit | Credit facilities and available liquidity as of June 30, 2019 were as follows (in thousands): Company Total Facility Usage Available Liquidity Expiration Date SJI: SJI Syndicated Revolving Credit Facility $ 500,000 $ 396,600 (A) $ 103,400 August 2022 Revolving Credit Facility 50,000 50,000 — September 2019 (D) Total SJI 550,000 446,600 103,400 SJG: Commercial Paper Program/Revolving Credit Facility 200,000 104,000 (B) 96,000 August 2022 Uncommitted Bank Line 10,000 — 10,000 August 2019 (D) Total SJG 210,000 104,000 106,000 ETG/ELK: ETG/ELK Revolving Credit Facility 200,000 140,900 (C) 59,100 June 2021 Total $ 960,000 $ 691,500 $ 268,500 (A) Includes letters of credit outstanding in the amount of $9.6 million . (B) Includes letters of credit outstanding in the amount of $0.9 million . (C) Includes letters of credit outstanding in the amount of $1.0 million . (D) SJI and SJG intend to renew these facilities upon expiration. |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding derivative contracts | As of June 30, 2019 , SJI and SJG had outstanding derivative contracts as follows: SJI Consolidated SJG Derivative contracts intended to limit exposure to market risk to: Expected future purchases of natural gas (in MMdts) 90.8 24.5 Expected future sales of natural gas (in MMdts) 87.7 0.3 Expected future purchases of electricity (in MMmWh) 1.1 Expected future sales of electricity (in MMmWh) 0.9 Basis and Index related net purchase (sale) contracts (in MMdts) 18.8 3.8 |
Schedule of notional amounts of outstanding derivative positions | As of June 30, 2019 , 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 June 30, 2019 and December 31, 2018 , are as follows (in thousands): SJI (includes SJG and all other consolidated subsidiaries): Derivatives not designated as hedging instruments under GAAP June 30, 2019 December 31, 2018 Assets Liabilities Assets Liabilities Energy-related commodity contracts: Derivatives - Energy Related - Current $ 34,988 $ 35,229 $ 54,021 $ 24,134 Derivatives - Energy Related - Non-Current 11,883 7,278 7,169 7,256 Interest rate contracts: Derivatives - Other - Current — 1,092 — 588 Derivatives - Other - Noncurrent — 11,449 — 7,285 Total derivatives not designated as hedging instruments under GAAP $ 46,871 $ 55,048 $ 61,190 $ 39,263 Total Derivatives $ 46,871 $ 55,048 $ 61,190 $ 39,263 SJG: Derivatives not designated as hedging instruments under GAAP June 30, 2019 December 31, 2018 Assets Liabilities Assets Liabilities Energy-related commodity contracts: Derivatives – Energy Related – Current $ 1,829 $ 5,996 $ 5,464 $ 2,146 Derivatives – Energy Related – Non-Current — 297 15 43 Interest rate contracts: Derivatives – Other - Current — 464 — 343 Derivatives – Other - Noncurrent — 7,236 — 5,524 Total derivatives not designated as hedging instruments under GAAP $ 1,829 $ 13,993 $ 5,479 $ 8,056 Total Derivatives $ 1,829 $ 13,993 $ 5,479 $ 8,056 |
Offsetting assets | As of June 30, 2019 and December 31, 2018 , information related to these offsetting arrangements were as follows (in thousands): As of June 30, 2019 Description Gross amounts of recognized assets/liabilities Gross amount offset in the balance sheet Net amounts of assets/liabilities in balance sheet Gross amounts not offset in the balance sheet Net amount Financial Instruments Cash Collateral Posted SJI (includes SJG and all other consolidated subsidiaries): Derivatives - Energy Related Assets $ 46,871 $ — $ 46,871 $ (25,996 ) (A) $ — $ 20,875 Derivatives - Energy Related Liabilities $ (42,507 ) $ — $ (42,507 ) $ 25,996 (B) $ 10,371 $ (6,140 ) Derivatives - Other $ (12,541 ) $ — $ (12,541 ) $ — $ — $ (12,541 ) SJG: Derivatives - Energy Related Assets $ 1,829 $ — $ 1,829 $ (45 ) (A) $ — $ 1,784 Derivatives - Energy Related Liabilities $ (6,293 ) $ — $ (6,293 ) $ 45 (B) $ 5,794 $ (454 ) Derivatives - Other $ (7,700 ) $ — $ (7,700 ) $ — $ — $ (7,700 ) As of December 31, 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 $ 61,190 $ — $ 61,190 $ (21,045 ) (A) $ (7,252 ) $ 32,893 Derivatives - Energy Related Liabilities $ (31,390 ) $ — $ (31,390 ) $ 21,045 (B) $ — $ (10,345 ) Derivatives - Other $ (7,873 ) $ — $ (7,873 ) $ — $ — $ (7,873 ) SJG: Derivatives - Energy Related Assets $ 5,479 $ — $ 5,479 $ (347 ) (A) $ 688 $ 5,820 Derivatives - Energy Related Liabilities $ (2,189 ) $ — $ (2,189 ) $ 347 (B) $ — $ (1,842 ) Derivatives - Other $ (5,867 ) $ — $ (5,867 ) $ — $ — $ (5,867 ) (A) The balances at June 30, 2019 and December 31, 2018 were related to derivative liabilities which can be net settled against derivative assets. (B) The balances at June 30, 2019 and December 31, 2018 were related to derivative assets which can be net settled against derivative liabilities. |
Offsetting liabilities | As of June 30, 2019 and December 31, 2018 , information related to these offsetting arrangements were as follows (in thousands): As of June 30, 2019 Description Gross amounts of recognized assets/liabilities Gross amount offset in the balance sheet Net amounts of assets/liabilities in balance sheet Gross amounts not offset in the balance sheet Net amount Financial Instruments Cash Collateral Posted SJI (includes SJG and all other consolidated subsidiaries): Derivatives - Energy Related Assets $ 46,871 $ — $ 46,871 $ (25,996 ) (A) $ — $ 20,875 Derivatives - Energy Related Liabilities $ (42,507 ) $ — $ (42,507 ) $ 25,996 (B) $ 10,371 $ (6,140 ) Derivatives - Other $ (12,541 ) $ — $ (12,541 ) $ — $ — $ (12,541 ) SJG: Derivatives - Energy Related Assets $ 1,829 $ — $ 1,829 $ (45 ) (A) $ — $ 1,784 Derivatives - Energy Related Liabilities $ (6,293 ) $ — $ (6,293 ) $ 45 (B) $ 5,794 $ (454 ) Derivatives - Other $ (7,700 ) $ — $ (7,700 ) $ — $ — $ (7,700 ) As of December 31, 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 $ 61,190 $ — $ 61,190 $ (21,045 ) (A) $ (7,252 ) $ 32,893 Derivatives - Energy Related Liabilities $ (31,390 ) $ — $ (31,390 ) $ 21,045 (B) $ — $ (10,345 ) Derivatives - Other $ (7,873 ) $ — $ (7,873 ) $ — $ — $ (7,873 ) SJG: Derivatives - Energy Related Assets $ 5,479 $ — $ 5,479 $ (347 ) (A) $ 688 $ 5,820 Derivatives - Energy Related Liabilities $ (2,189 ) $ — $ (2,189 ) $ 347 (B) $ — $ (1,842 ) Derivatives - Other $ (5,867 ) $ — $ (5,867 ) $ — $ — $ (5,867 ) (A) The balances at June 30, 2019 and December 31, 2018 were related to derivative liabilities which can be net settled against derivative assets. (B) The balances at June 30, 2019 and December 31, 2018 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 six months ended June 30, 2019 and 2018 are as follows (in thousands): Three Months Ended Six Months Ended Derivatives in Cash Flow Hedging Relationships under GAAP 2019 2018 2019 2018 SJI (includes SJG and all other consolidated subsidiaries): Interest Rate Contracts: Losses reclassified from AOCL into income (a) $ (12 ) $ (12 ) $ (24 ) $ (24 ) SJG: Interest Rate Contracts: Losses reclassified from AOCL into income (a) $ (12 ) $ (12 ) (24 ) (24 ) (a) Included in Interest Charges Three Months Ended Six Months Ended Derivatives Not Designated as Hedging Instruments under GAAP 2019 2018 2019 2018 SJI (includes SJG and all other consolidated subsidiaries): (Losses) Gains on energy-related commodity contracts (a) $ (143 ) $ (6,178 ) $ (12,203 ) $ 17,175 (Losses) Gains on interest rate contracts (b) (1,745 ) 620 (2,835 ) 2,248 Total $ (1,888 ) $ (5,558 ) $ (15,038 ) $ 19,423 (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) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 Total Level 1 Level 2 Level 3 SJI (includes SJG and all other consolidated subsidiaries): Assets Available-for-Sale Securities (A) $ 41 $ 41 $ — $ — Derivatives – Energy Related Assets (B) 46,871 6,935 16,212 23,724 $ 46,912 $ 6,976 $ 16,212 $ 23,724 SJG: Assets Derivatives – Energy Related Assets (B) $ 1,829 $ 45 $ 24 $ 1,760 $ 1,829 $ 45 $ 24 $ 1,760 SJI (includes SJG and all other consolidated subsidiaries): Liabilities Derivatives – Energy Related Liabilities (B) $ 42,507 $ 20,245 $ 8,498 $ 13,764 Derivatives – Other (C) 12,541 — 12,541 — $ 55,048 $ 20,245 $ 21,039 $ 13,764 SJG: Liabilities Derivatives – Energy Related Liabilities (B) $ 6,293 $ 5,839 $ 402 $ 52 Derivatives – Other (C) 7,700 — 7,700 — $ 13,993 $ 5,839 $ 8,102 $ 52 As of December 31, 2018 Total Level 1 Level 2 Level 3 SJI (includes SJG and all other consolidated subsidiaries): Assets Available-for-Sale Securities (A) $ 41 $ 41 $ — $ — Derivatives – Energy Related Assets (B) 61,190 9,955 23,429 27,806 $ 61,231 $ 9,996 $ 23,429 $ 27,806 SJG: Assets Derivatives – Energy Related Assets (B) $ 5,479 $ 348 $ 126 $ 5,005 $ 5,479 $ 348 $ 126 $ 5,005 SJI (includes SJG and all other consolidated subsidiaries): Liabilities Derivatives – Energy Related Liabilities (B) $ 31,390 $ 7,291 $ 12,354 $ 11,745 Derivatives – Other (C) 7,873 — 7,873 — $ 39,263 $ 7,291 $ 20,227 $ 11,745 SJG: Liabilities Derivatives – Energy Related Liabilities (B) $ 2,189 $ 1,035 $ 1,077 $ 77 Derivatives – Other (C) 5,867 — 5,867 — $ 8,056 $ 1,035 $ 6,944 $ 77 (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, liabilities | The following table provides quantitative information regarding significant unobservable inputs in Level 3 fair value measurements (in thousands, except for ranges): SJI (includes SJG and all other consolidated subsidiaries) : Type Fair Value at June 30, 2019 Valuation Technique Significant Unobservable Input Range [Weighted Average] Assets Liabilities Forward Contract - Natural Gas $18,772 $9,815 Discounted Cash Flow Forward price (per dt) $1.69 - $8.31 [$2.50] (A) Forward Contract - Electric $4,952 $3,949 Discounted Cash Flow Fixed electric load profile (on-peak) 40.24% - 100.00% [54.98%] (B) Fixed electric load profile (off-peak) 0.00% - 59.76% [45.02%] (B) Type Fair Value at December 31, 2018 Valuation Technique Significant Unobservable Input Range [Weighted Average] Assets Liabilities Forward Contract - Natural Gas $20,706 $8,976 Discounted Cash Flow Forward price (per dt) $1.56 - $9.00 [$3.12] (A) Forward Contract - Electric $7,100 $2,769 Discounted Cash Flow Fixed electric load profile (on-peak) 0.00% - 100.00% [54.55%] (B) Fixed electric load profile (off-peak) 0.00% - 100.00% [45.45%] (B) SJG: Type Fair Value at June 30, 2019 Valuation Technique Significant Unobservable Input Range Assets Liabilities Forward Contract - Natural Gas $ 1,760 $ 52 Discounted Cash Flow Forward price (per dt) $1.78 - $5.78 [$2.66] (A) Type Fair Value at December 31, 2018 Valuation Technique Significant Unobservable Input Range Assets Liabilities Forward Contract - Natural Gas $ 5,005 $ 77 Discounted Cash Flow Forward price (per dt) $3.13 - $6.00 [$4.53] (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 six months ended June 30, 2019 and 2018 , using significant unobservable inputs (Level 3), are as follows (in thousands): Three Months Ended Six Months Ended SJI (includes SJG and all other consolidated subsidiaries): Balance at beginning of period $ 8,277 $ 16,061 Other Changes in Fair Value from Continuing and New Contracts, Net (A) 6,553 4,285 Settlements (4,870 ) (10,386 ) Balance at end of period $ 9,960 $ 9,960 SJG: Balance at beginning of period $ 1,706 $ 4,928 Other Changes in Fair Value from Continuing and New Contracts, Net (A) 2 1,708 Settlements — (4,928 ) Balance at end of period $ 1,708 $ 1,708 Three Months Ended Six Months Ended SJI (includes SJG and all other consolidated subsidiaries): Balance at beginning of period $ 16,586 $ 3,110 Other Changes in Fair Value from Continuing and New Contracts, Net (A) 6,215 10,204 Settlements (4,440 ) 5,047 Balance at end of period $ 18,361 $ 18,361 SJG: Balance at beginning of period $ (6 ) $ 2,052 Other Changes in Fair Value from Continuing and New Contracts, Net (A) 6,003 5,997 Settlements — (2,052 ) Balance at end of period $ 5,997 $ 5,997 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of changes in accumulated other comprehensive loss (AOCL) | The following table summarizes the changes in SJI's AOCL for the three and six months ended June 30, 2019 (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 April 1, 2019 (a) $ (25,626 ) $ (354 ) $ (10 ) $ (97 ) $ (26,087 ) Other comprehensive income before reclassifications — — — — — Amounts reclassified from AOCL (b) — 8 — — 8 Net current period other comprehensive income — 8 — — 8 Balance at June 30, 2019 (a) $ (25,626 ) $ (346 ) $ (10 ) $ (97 ) $ (26,079 ) 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, 2019 (a) $ (25,626 ) $ (362 ) $ (10 ) $ (97 ) $ (26,095 ) Other comprehensive income before reclassifications — — — — — Amounts reclassified from AOCL (b) — 16 — — 16 Net current period other comprehensive income — 16 — — 16 Balance at June 30, 2019 (a) $ (25,626 ) $ (346 ) $ (10 ) $ (97 ) $ (26,079 ) (a) Determined using a combined average statutory tax rate of 27% . (b) See table below. The following table summarizes the changes in SJG's AOCL for the three and six months ended June 30, 2019 (in thousands): Postretirement Liability Adjustment Unrealized Gain (Loss) on Derivatives-Other Total Balance at April 1, 2019 (a) $ (21,901 ) $ (448 ) $ (22,349 ) Other comprehensive loss before reclassifications — — — Amounts reclassified from AOCL (b) — 8 8 Net current period other comprehensive income — 8 8 Balance at June 30, 2019 (a) $ (21,901 ) $ (440 ) $ (22,341 ) Postretirement Liability Adjustment Unrealized Gain (Loss) on Derivatives-Other Total Balance at January 1, 2019 (a) $ (21,901 ) $ (456 ) $ (22,357 ) Other comprehensive loss before reclassifications — — — Amounts reclassified from AOCL (b) — 16 16 Net current period other comprehensive income (loss) — 16 16 Balance at June 30, 2019 (a) $ (21,901 ) $ (440 ) $ (22,341 ) (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 six months ended June 30, 2019 are as follows (in thousands): Components of AOCL Amounts Reclassified from AOCL Affected Line Item in the Condensed Statements of Income Three Months Ended Six Months Ended Unrealized Loss in on Derivatives - Other - Interest Rate Contracts designated as cash flow hedges $ 12 $ 24 Interest Charges Income Taxes (4 ) (8 ) Income Taxes (a) Losses from reclassifications for the period net of tax $ 8 $ 16 (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 six months ended June 30, 2019 (in thousands): Components of AOCL Amounts Reclassified from AOCL Affected Line Item in the Condensed Consolidated Statements of Income Three Months Ended Six Months Ended Unrealized Loss on Derivatives-Other - interest rate contracts designated as cash flow hedges $ 12 $ 24 Interest Charges Income Taxes (4 ) (8 ) Income Taxes (a) Losses from reclassifications for the period net of tax $ 8 $ 16 (a) Determined using a combined average statutory tax rate of 27% . |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregated revenues from contracts with customers, by both customer type and product line, are disclosed below, by operating segment, for the three and six months ended June 30, 2019 (in thousands): Three Months Ended SJG Utility Operations ETG Utility Operations ELK Utility Operations Wholesale Energy Operations Retail Electric Operations On-Site Energy Production Appliance Service Operations Corporate Services and Intersegment Total Customer Type: Residential $ 28,679 $ 27,503 $ 207 $ — $ 2,953 $ — $ 484 $ — $ 59,826 Commercial & Industrial 15,503 16,065 482 111,794 12,419 14,788 — (3,418 ) 167,633 OSS & Capacity Release 2,244 — — — — — — — 2,244 Other 571 1,527 39 — — — — — 2,137 $ 46,997 $ 45,095 $ 728 $ 111,794 $ 15,372 $ 14,788 $ 484 $ (3,418 ) $ 231,840 Product Line: Gas $ 46,997 $ 45,095 $ 728 $ 111,794 $ — $ — $ — $ (1,234 ) $ 203,380 Electric — — — — 15,372 — — (2,184 ) 13,188 Solar — — — — — 6,438 — — 6,438 CHP — — — — — 6,794 — — 6,794 Landfills — — — — — 1,556 — — 1,556 Other — — — — — — 484 — 484 $ 46,997 $ 45,095 $ 728 $ 111,794 $ 15,372 $ 14,788 $ 484 $ (3,418 ) $ 231,840 Six Months Ended SJG Utility Operations ETG Utility Operations ELK Utility Operations Wholesale Energy Operations Retail Electric Operations On-Site Energy Production Appliance Service Operations Corporate Services and Intersegment Total Customer Type: Residential $ 213,633 $ 127,492 $ 1,961 $ — $ 6,761 $ — $ 1,015 $ — $ 350,862 Commercial & Industrial 61,091 58,213 2,140 311,561 25,422 26,118 — (6,425 ) 478,120 OSS & Capacity Release 4,014 — — — — — — — 4,014 Other 1,243 4,174 104 — — — — — 5,521 $ 279,981 $ 189,879 $ 4,205 $ 311,561 $ 32,183 $ 26,118 $ 1,015 $ (6,425 ) $ 838,517 Product Line: Gas $ 279,981 $ 189,879 $ 4,205 $ 311,561 $ — $ — $ — $ (2,634 ) $ 782,992 Electric — — — — 32,183 — — (3,791 ) 28,392 Solar — — — — — 9,014 — — 9,014 CHP — — — — — 14,153 — — 14,153 Landfills — — — — — 2,951 — — 2,951 Other — — — — — — 1,015 — 1,015 $ 279,981 $ 189,879 $ 4,205 $ 311,561 $ 32,183 $ 26,118 $ 1,015 $ (6,425 ) $ 838,517 Disaggregated revenues from contracts with customers, by both customer type and product line, are disclosed below, by operating segment, for the three and six months ended June 30, 2018 (in thousands): Three Months Ended June 30, 2018 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 $ 43,982 $ — $ — $ — $ — $ 6,391 $ — $ 451 $ — $ 50,824 Commercial & Industrial 18,563 — — 76,376 15,121 22,430 24,734 — (7,705 ) 149,519 OSS & Capacity Release 972 — — — — — — — — 972 Other 539 — — — — — — — — 539 $ 64,056 $ — $ — $ 76,376 $ 15,121 $ 28,821 $ 24,734 $ 451 $ (7,705 ) $ 201,854 Product Line: Gas $ 64,056 $ — $ — $ 76,376 $ 15,121 $ — $ — $ — $ (1,914 ) $ 153,639 Electric — — — — — 28,821 — — (2,012 ) 26,809 Solar — — — — — — 15,905 — (3,779 ) 12,126 CHP — — — — — — 7,161 — — 7,161 Landfills — — — — — — 1,668 — — 1,668 Other — — — — — — — 451 — 451 $ 64,056 $ — $ — $ 76,376 $ 15,121 $ 28,821 $ 24,734 $ 451 $ (7,705 ) $ 201,854 Six Months Ended June 30, 2018 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 $ 191,244 $ — $ — — — $ 14,487 — $ 971 — $ 206,702 Commercial & Industrial 59,368 — — 250,222 48,367 44,380 45,891 — (16,475 ) 431,753 OSS & Capacity Release 6,176 — — — — — — — — 6,176 Other 1,202 — — — — — — — — 1,202 $ 257,990 $ — $ — $ 250,222 $ 48,367 $ 58,867 $ 45,891 $ 971 $ (16,475 ) $ 645,833 Product Line: Gas $ 257,990 $ — $ — $ 250,222 $ 48,367 — — — $ (6,488 ) $ 550,091 Electric — — — — — 58,867 — — (3,680 ) 55,187 Solar — — — — — — 27,741 — (6,307 ) 21,434 CHP — — — — — — 15,014 — — 15,014 Landfills — — — — — — 3,136 — — 3,136 Other — — — — — — — 971 — 971 $ 257,990 $ — $ — $ 250,222 $ 48,367 $ 58,867 $ 45,891 $ 971 $ (16,475 ) $ 645,833 |
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 1/1/19 $ 337,502 $ 79,538 Ending balance as of 6/30/19 223,314 21,253 Increase (Decrease) $ (114,188 ) $ (58,285 ) Beginning balance as of 1/1/18 $ 202,379 $ 73,377 Ending balance as of 6/30/18 196,601 24,464 Increase (Decrease) $ (5,778 ) $ (48,913 ) SJG: Beginning balance as of 1/1/19 $ 101,572 $ 43,271 Ending balance as of 6/30/19 90,190 8,415 Increase (Decrease) $ (11,382 ) $ (34,856 ) Beginning balance as of 1/1/18 $ 78,571 $ 54,980 Ending balance as of 6/30/18 95,420 9,721 Increase (Decrease) $ 16,849 $ (45,259 ) (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 six months ended June 30, 2019 and 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 COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The 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 $ 1,202,435 Accounts Receivable 45,875 Provision for Uncollectibles (6,579 ) Natural Gas in Storage 12,204 Materials and Supplies 345 Other Prepayments and Current Assets 200 Deferred Income Taxes 39,470 Regulatory Assets 136,212 Goodwill 700,286 Total assets acquired 2,130,448 Accounts Payable 13,089 Other Current Liabilities 9,185 Environmental Remediation Costs - Current 7,100 Pension and Other Postretirement Benefits 3,213 Environmental Remediation Costs - Non Current 66,165 Regulatory Liabilities 192,811 Asset Retirement Obligation 113,093 Other 1,107 Total liabilities assumed 405,763 Total net assets acquired $ 1,724,685 |
GOODWILL AND IDENTIFIABLE INT_2
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | A rollforward of the Company's goodwill is as follows (in thousands): 2019 Beginning Balance, January 1 $ 734,607 Acquisition-related Working Capital Settlement (15,600 ) Fair Value Adjustments During Measurement Period (15,143 ) Ending Balance, June 30 $ 703,864 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of operating lease maturity | The maturity of the Company’s operating lease liabilities as of June 30, 2019 is as follows (in thousands): As of June 30, 2019 SJI Consolidated SJG 2019 (excluding the six months ended June 30, 2019) $ 850 $ 91 2020 1,080 152 2021 233 39 2022 65 21 2023 34 19 Thereafter 114 114 Total future minimum lease payments 2,376 436 Less imputed interest 82 38 Total lease payments $ 2,294 $ 398 Included in the condensed consolidated balance sheet Current lease liabilities (included in Other Current Liabilities) $ 1,519 $ 169 Long-term lease liabilities (included in Other Noncurrent Liabilities) 775 229 Total lease liabilities $ 2,294 $ 398 |
Contractual obligations of operating leases under previous guidance | The following summarizes our contractual obligations for operating leases and their applicable payment due dates, as of December 31, 2018 under ASC Topic 840, prior to the implementation of ASC 842: Total Up to 1 year Years 2&3 Years 4&5 More than 5 years SJI Consolidated 1,885 838 916 131 — SJG 175 56 112 7 — |
Minimum future rentals to bo be received | Minimum future rentals to be received on this operating lease of property and equipment as of June 30, 2019 for the remainder of 2019 and each of the next five years and in the aggregate are (in thousands): Year ended June 30, 2019 (remaining six months) $ 2,698 2020 5,396 2021 5,396 2022 5,396 2023 5,396 2024 5,396 Thereafter 13,042 Total minimum future rentals $ 42,720 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Jul. 01, 2018USD ($) | Jun. 30, 2019USD ($)projectcountymishares | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)projectcountymishares | Jun. 30, 2018USD ($) | Dec. 31, 2019project | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($)shares |
Public Utilities, General Disclosures [Line Items] | ||||||||
Length of pipeline (in miles) | mi | 118 | 118 | ||||||
Payment to acquire assets | $ 256,587,000 | $ 125,973,000 | ||||||
Number of projects closed | project | 7 | |||||||
Number of solar energy sites | project | 1 | 1 | ||||||
Impairment charge | $ 0 | $ 99,200,000 | $ 0 | 99,200,000 | ||||
Identified impairments | 0 | 0 | 0 | 0 | ||||
Amount of costs related to interests in proved and unproved properties in Pennsylvania, net of amortization | $ 8,600,000 | $ 8,600,000 | $ 8,600,000 | |||||
Shares of treasury stock held (in shares) | shares | 226,245 | 226,245 | 233,482 | |||||
Payments to purchase asset management agreement | $ 11,300,000 | |||||||
Minimum annual fee for long-term asset management contract | 4,250,000 | |||||||
Current portion of long-term debt | $ 478,909,000 | $ 478,909,000 | $ 733,909,000 | |||||
Early repayment of senior debt | 575,000,000 | |||||||
Operating lease right of use asset | 2,700,000 | 2,700,000 | $ 3,100,000 | |||||
Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Proceeds from sale of business | 24,300,000 | |||||||
Value of unsold solar assets | $ 28,700,000 | $ 28,700,000 | ||||||
SJG Utility Operations | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Number of counties in which entity operates | county | 7 | 7 | ||||||
Payment to acquire assets | $ 124,122,000 | 113,226,000 | ||||||
Impairment charge | $ 0 | $ 0 | $ 0 | |||||
Current portion of long-term debt | 338,909,000 | 338,909,000 | $ 18,909,000 | |||||
Operating lease right of use asset | $ 400,000 | $ 400,000 | $ 500,000 | |||||
ETG Utility Operations | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Number of counties in which entity operates | county | 7 | 7 | ||||||
Minimum annual fee for long-term asset management contract | $ 4,250,000 | |||||||
Series 2018D Senior Notes, Due 2019 | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Early repayment of senior debt | 475,000,000 | |||||||
Forecast | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Number of solar energy sites | project | 2 | |||||||
ETG Utility Operations | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Payment to acquire assets | $ 1,720,000,000 | |||||||
Unsecured Term Loan | Credit Agreement | SJG Utility Operations | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Current portion of long-term debt | $ 320,000,000 | $ 320,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Asset Management Agreement (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jul. 01, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Natural Gas in Storage | $ 9,685 | ||
Intangible Asset | $ 14,100 | $ 16,600 | 19,200 |
Profit Sharing - Other Liabilities | $ (12,800) | $ (17,000) | (17,546) |
Total Consideration | $ 11,339 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLAN (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2016 | |
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 | 0 | 0 | |
Vesting period of shares | 3 years | ||||
Service period of shares | 3 years | ||||
Expected volatility, measurement period | 3 years | ||||
Unrecognized compensation cost of awards granted under the plan | $ 8,600 | $ 8,600 | |||
Weighted average period over which unrecognized compensation cost is to be recognized | 1 year 10 months 24 days | ||||
Net Expense | $ 1,783 | $ 1,195 | $ 2,654 | $ 2,400 | |
SJG Utility Operations | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Costs capitalized | 65.00% | ||||
Officers and Key Employees | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Number of shares granted (in shares) | 181,387 | ||||
Number of shares awarded | 125,288 | 66,894 | |||
Fair value of shares issued | $ 3,700 | $ 2,000 | |||
Director | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Number of shares granted (in shares) | 30,028 | 30,394 | |||
Vesting period of shares | 12 months | ||||
Director shares vested | 100.00% | 100.00% | |||
Fair value of shares issued | $ 800 | $ 1,000 | |||
Stock Appreciation Rights | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Number of shares 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) | 181,387 | 197,844 | |||
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) | 6,095 | 32,185 | |||
Net Expense | $ 100 | $ 300 | |||
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) | 85,146 | 64,712 | |||
Vesting period of shares | 3 years | ||||
Payout limit | 100.00% | ||||
Time-based Restricted Stock | Officers and Key Employees | Year one | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Percentage of shares vested | 33.33% | ||||
Time-based Restricted Stock | Officers and Key Employees | Year two | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Percentage of shares vested | 33.33% | ||||
Time-based Restricted Stock | Officers and Key Employees | Year three | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Percentage of shares vested | 33.33% | ||||
Total Shareholder Return | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Vesting period of shares | 3 years | ||||
Restricted Stock Units (RSUs) | Director | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Number of shares granted (in shares) | 26,416 |
STOCK-BASED COMPENSATION PLAN N
STOCK-BASED COMPENSATION PLAN Nonvested Restricted Stock Awards and Fair Value Assumptions (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value nonvested shares-ending balance (in dollars per share) | $ 31.46 | $ 29.57 |
Officers and Key Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding (in shares) | 412,146 | 411,809 |
Director | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding (in shares) | 30,028 | 26,416 |
2017 - TSR | Officers and Key Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding (in shares) | 41,103 | |
Weighted average fair value nonvested shares-ending balance (in dollars per share) | $ 32.17 | |
Expected Volatility | 20.80% | |
Risk-Free Interest Rate | 1.47% | |
2017 - CEGR, Time | Officers and Key Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding (in shares) | 54,677 | |
Weighted average fair value nonvested shares-ending balance (in dollars per share) | $ 33.69 | |
2018 - TSR | Officers and Key Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding (in shares) | 51,731 | |
Weighted average fair value nonvested shares-ending balance (in dollars per share) | $ 31.05 | |
Expected Volatility | 21.90% | |
Risk-Free Interest Rate | 2.00% | |
2018 - CEGR, Time | Officers and Key Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding (in shares) | 86,038 | |
Weighted average fair value nonvested shares-ending balance (in dollars per share) | $ 31.23 | |
2019 - TSR | Officers and Key Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding (in shares) | 38,934 | |
Weighted average fair value nonvested shares-ending balance (in dollars per share) | $ 32.88 | |
Expected Volatility | 23.20% | |
Risk-Free Interest Rate | 2.40% | |
2019 - CEGR, Time | Officers and Key Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding (in shares) | 139,663 | |
Weighted average fair value nonvested shares-ending balance (in dollars per share) | $ 31.26 | |
2019 | Director | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding (in shares) | 30,028 | |
Weighted average fair value nonvested shares-ending balance (in dollars per share) | $ 26.89 |
STOCK-BASED COMPENSATION PLAN S
STOCK-BASED COMPENSATION PLAN Schedule of Stock Based Compensation Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total Cost | $ 1,736 | $ 1,296 | $ 2,688 | $ 2,602 |
Capitalized | 47 | (101) | (34) | (202) |
Net Expense | 1,783 | 1,195 | 2,654 | 2,400 |
Officers and Key Employees | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total Cost | 1,534 | 1,090 | 2,284 | 2,190 |
Director | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total Cost | $ 202 | $ 206 | $ 404 | $ 412 |
STOCK-BASED COMPENSATION PLAN R
STOCK-BASED COMPENSATION PLAN Restricted Stock Activity (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Additional disclosures [Abstract] | ||
Weighted average fair value nonvested shares-ending balance (in dollars per share) | $ 29.57 | |
Weighted average fair value nonvested shares-granted during the period (in dollars per share) | 30.94 | |
Weighted average fair value nonvested shares- cancelled/forfeited during the period (in dollars per share) | 31.60 | |
Weighted average fair value nonvested shares-vested during the period (in dollars per share) | 26.04 | |
Weighted average fair value nonvested shares-ending balance (in dollars per share) | $ 31.46 | |
Officers and Key Employees | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Nonvested shares outstanding, ending balance (in shares) | 411,809 | |
Granted (in shares) | 181,387 | |
Cancelled/Forfeited (in shares) | (33,516) | |
Vested (in shares) | (147,534) | |
Nonvested shares outstanding, ending balance (in shares) | 412,146 | |
Director | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Nonvested shares outstanding, ending balance (in shares) | 26,416 | |
Granted (in shares) | 30,028 | 30,394 |
Cancelled/Forfeited (in shares) | 0 | |
Vested (in shares) | (26,416) | |
Nonvested shares outstanding, ending balance (in shares) | 30,028 |
AFFILIATIONS, DISCONTINUED OP_3
AFFILIATIONS, DISCONTINUED OPERATIONS AND RELATED-PARTY TRANSACTIONS - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)mi | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)mi | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||||
Length of pipeline (in miles) | mi | 118 | 118 | |||
Investments in unconsolidated affiliates | $ 3.9 | $ 6.4 | |||
Notes receivable - affiliate | $ 16.1 | $ 16.1 | $ 15.2 | ||
Interest accrual on secured notes receivable | 7.50% | 7.50% | |||
Net asset - included in investment in affiliates and other noncurrent liabilities | $ 81.8 | $ 81.8 | |||
Combined equity contributions and the notes receivable - affiliate | $ 97.9 | ||||
PennEast Pipeline Company, LLC (PennEast) | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity interest | 20.00% | 20.00% | |||
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% | |||
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 | $ 2.5 | $ 2.5 | $ 1.6 | ||
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 | $ 5.3 | $ 8 | $ 19.2 | $ 21.2 |
AFFILIATIONS, DISCONTINUED OP_4
AFFILIATIONS, DISCONTINUED OPERATIONS AND RELATED-PARTY TRANSACTIONS - Summarized Operating Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Loss Before Income Taxes: | ||||
Income Tax Benefits | $ 24 | $ 7 | $ 40 | $ 22 |
Loss from Discontinued Operations — Net | $ (95) | $ (26) | $ (157) | $ (92) |
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: | $ (23) | $ 7 | $ (44) | $ (33) |
Fuel Oil | ||||
Loss Before Income Taxes: | ||||
Loss before Income Taxes: | $ (96) | $ (40) | $ (153) | $ (81) |
AFFILIATIONS, DISCONTINUED OP_5
AFFILIATIONS, DISCONTINUED OPERATIONS AND RELATED-PARTY TRANSACTIONS - Related Party Transactions (Details) - SJG - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Operating Revenues/Affiliates: | ||||
Total Operating Revenue/Affiliates | $ 1,267 | $ 1,221 | $ 2,687 | $ 3,935 |
Operations Expense/Affiliates: | ||||
Total Operations Expense/Affiliates | 7,487 | 7,335 | 13,511 | 14,960 |
SJRG | ||||
Operating Revenues/Affiliates: | ||||
Total Operating Revenue/Affiliates | 1,142 | 1,109 | 2,426 | 3,697 |
Costs of Sales/Affiliates (Excluding depreciation and amortization) | 3,335 | 2,093 | 6,582 | 27,431 |
Marina | ||||
Operating Revenues/Affiliates: | ||||
Total Operating Revenue/Affiliates | 105 | 89 | 221 | 192 |
SJI | ||||
Operations Expense/Affiliates: | ||||
Total Operations Expense/Affiliates | 5,694 | 6,708 | 10,420 | 13,751 |
SJIU | ||||
Operations Expense/Affiliates: | ||||
Total Operations Expense/Affiliates | 578 | 0 | 578 | 0 |
Millennium | ||||
Operations Expense/Affiliates: | ||||
Total Operations Expense/Affiliates | 789 | 744 | 1,552 | 1,441 |
Other | ||||
Operating Revenues/Affiliates: | ||||
Total Operating Revenue/Affiliates | 20 | 23 | 40 | 46 |
Operations Expense/Affiliates: | ||||
Total Operations Expense/Affiliates | $ 426 | $ (117) | $ 961 | $ (232) |
COMMON STOCK - Summary of Share
COMMON STOCK - Summary of Shares Issued and Outstanding (Details) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value nonvested shares-ending balance (in dollars per share) | $ 31.46 | $ 29.57 |
Common Stock [Roll Forward] | ||
Beginning balance (in shares) | 85,506,218 | |
New Issuances During the Period: | ||
Settlement of Equity Forward Sale Agreement (in shares) | 6,779,661 | |
Stock-Based Compensation Plan (in shares) | 104,470 | |
Ending balance (in shares) | 92,390,349 | 85,506,218 |
Officers and Key Employees | 2017 - TSR | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value nonvested shares-ending balance (in dollars per share) | $ 32.17 | |
Officers and Key Employees | 2017 - CEGR, Time | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value nonvested shares-ending balance (in dollars per share) | 33.69 | |
Officers and Key Employees | 2018 - TSR | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value nonvested shares-ending balance (in dollars per share) | 31.05 | |
Officers and Key Employees | 2018 - CEGR, Time | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value nonvested shares-ending balance (in dollars per share) | 31.23 | |
Officers and Key Employees | 2019 - TSR | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value nonvested shares-ending balance (in dollars per share) | 32.88 | |
Officers and Key Employees | 2019 - CEGR, Time | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value nonvested shares-ending balance (in dollars per share) | $ 31.26 |
COMMON STOCK - Narrative (Detai
COMMON STOCK - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 15, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
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 | $ 181.7 | |||||
Shares of common stock outstanding (in shares) | 92,390,349 | 92,390,349 | 85,506,218 | |||
Number of shares issued | 6,779,661 | |||||
Interest rate | 7.50% | 7.50% | ||||
Quarterly contract adjustment payments, percent | 3.55% | |||||
Incremental shares included in diluted EPS calculation (in shares) | 100,012 | 806,695 | 115,798 | 452,210 | ||
Dividends per share | $ 0.29 | $ 0.28 | $ 0.58 | $ 0.56 | ||
Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Par value of common stock (in dollars per share) | $ 1.25 | 1.25 | ||||
Shares available for issuance (in shares) | 12,669,491 | |||||
Price per share (in dollars per share) | $ 29.50 | $ 29.50 | ||||
Number of shares issued | 5,889,830 | |||||
Consideration received | $ 189 | |||||
Capital Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares issued | 5,750,000 | |||||
Corporate Unit, stated value per share (in dollars per share) | $ 50 | |||||
Over-Allotment Option | Capital Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares issued | 750,000 | |||||
Bank of America, N.A. | Private Placement | Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares held for forward contract | 6,779,661 | |||||
Series 2018A, Due 2031 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Interest rate | 3.70% | |||||
Series 2018A, Due 2031 | Capital Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Interest in notes issued, percent | 5.00% | |||||
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 |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019USD ($)counterparty | Dec. 31, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Margin accounts with selected counterparties to support risk management activities | $ 19,000 | $ 1,600 |
Notes Receivable - Affiliate | $ 13,275 | 13,275 |
Number of counterparties | counterparty | 2 | |
Estimated fair value of long-term debt, including current maturities | $ 2,430,000 | 2,910,000 |
Carrying amount of long-term debt, including current maturities | 2,280,000 | 2,840,000 |
Unamortized debt issuance costs | 25,300 | 27,000 |
Supplier Concentration Risk | Derivatives Energy Related Assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current and noncurrent derivatives | $ 15,900 | |
Percentage of current and noncurrent derivatives | 33.80% | |
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 | 7,800 | 1,300 |
Estimated fair value of long-term debt, including current maturities | 929,300 | 895,100 |
Carrying amount of long-term debt, including current maturities | 903,700 | 893,400 |
Unamortized debt issuance costs | 6,500 | 6,800 |
SJG Utility Operations | Financing Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying amount of loans, net of unamortized discounts | 4,500 | 5,300 |
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 - Cash, C
FINANCIAL INSTRUMENTS - Cash, Cash Equivalents and Restricted Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and Cash Equivalents | $ 12,193 | $ 30,030 | ||
Restricted Investments | 19,019 | 1,649 | ||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | 31,212 | 31,679 | $ 1,773,464 | $ 39,695 |
SJG Utility Operations | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and Cash Equivalents | 1,617 | 1,984 | ||
Restricted Investments | 7,798 | 1,278 | ||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 9,415 | $ 3,262 | $ 2,139 | $ 4,619 |
SEGMENTS OF BUSINESS (Details)
SEGMENTS OF BUSINESS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | $ 266,934 | $ 227,330 | $ 904,232 | $ 749,275 | |
Total Operating Income (Loss) | 8,866 | (108,532) | 143,419 | 49,338 | |
Total Depreciation and Amortization | 33,044 | 36,656 | 65,035 | 70,554 | |
Total Interest Charges | 28,434 | 19,561 | 57,087 | 33,533 | |
Total Income Taxes | (4,646) | (31,972) | 20,303 | 4,443 | |
Total Property Additions | 122,327 | 74,184 | 216,921 | 129,268 | |
Total Identifiable Assets | 6,028,262 | 6,028,262 | $ 5,956,577 | ||
Discontinued Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Identifiable Assets | 1,742 | 1,742 | 1,777 | ||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 282,167 | 246,118 | 931,843 | 789,833 | |
Total Interest Charges | 31,873 | 25,049 | 64,281 | 43,666 | |
Operating Segments | SJG Utility Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 108,066 | 76,801 | 523,812 | 311,260 | |
Total Operating Income (Loss) | 12,234 | 8,443 | 155,358 | 101,244 | |
Total Depreciation and Amortization | 30,009 | 20,274 | 59,481 | 40,589 | |
Total Interest Charges | 14,521 | 6,999 | 28,696 | 13,727 | |
Total Income Taxes | (147) | 482 | 30,615 | 22,318 | |
Total Property Additions | 122,178 | 65,148 | 216,152 | 115,385 | |
Total Identifiable Assets | 5,493,909 | 5,493,909 | 5,282,893 | ||
Operating Segments | Energy Group: | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 147,014 | 133,050 | 359,712 | 407,629 | |
Total Operating Income (Loss) | (4,699) | (7,719) | (8,861) | 61,972 | |
Total Depreciation and Amortization | 25 | 107 | 48 | 205 | |
Total Interest Charges | 0 | 105 | 0 | 251 | |
Total Income Taxes | (1,050) | (1,697) | (1,776) | 15,838 | |
Total Property Additions | 0 | 163 | 0 | 341 | |
Total Identifiable Assets | 211,718 | 211,718 | 318,498 | ||
Operating Segments | Energy Group: | Wholesale Energy Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 126,483 | 67,220 | 316,490 | 257,563 | |
Total Operating Income (Loss) | (2,386) | (10,472) | (4,892) | 65,185 | |
Total Depreciation and Amortization | 25 | 29 | 48 | 52 | |
Total Income Taxes | (481) | (2,478) | (958) | 16,649 | |
Total Property Additions | 0 | 27 | 0 | 32 | |
Total Identifiable Assets | 177,183 | 177,183 | 266,417 | ||
Operating Segments | Energy Group: | Retail Gas and Other Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 0 | 23,168 | 0 | 63,369 | |
Total Operating Income (Loss) | 0 | 1,659 | 0 | (4,099) | |
Total Depreciation and Amortization | 0 | 78 | 0 | 153 | |
Total Interest Charges | 0 | 105 | 0 | 251 | |
Total Income Taxes | 0 | 474 | 0 | (1,060) | |
Total Property Additions | 0 | 136 | 0 | 309 | |
Total Identifiable Assets | 141 | 141 | 12,736 | ||
Operating Segments | Energy Group: | Retail Electric Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 20,531 | 42,662 | 43,222 | 86,697 | |
Total Operating Income (Loss) | (2,313) | 1,094 | (3,969) | 886 | |
Total Income Taxes | (569) | 307 | (818) | 249 | |
Total Identifiable Assets | 34,394 | 34,394 | 39,345 | ||
Operating Segments | Energy Services: | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 15,272 | 25,185 | 27,133 | 46,862 | |
Total Operating Income (Loss) | 1,764 | (99,993) | 2,477 | (100,044) | |
Total Depreciation and Amortization | 1,256 | 10,324 | 2,508 | 20,595 | |
Total Income Taxes | 257 | (26,383) | (54) | (27,409) | |
Total Property Additions | 141 | 570 | 164 | 1,683 | |
Total Identifiable Assets | 170,332 | 170,332 | 195,329 | ||
Operating Segments | Energy Services: | On-Site Energy Production | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 14,788 | 24,734 | 26,118 | 45,891 | |
Total Operating Income (Loss) | 1,343 | (100,435) | 1,461 | (100,989) | |
Total Depreciation and Amortization | 1,256 | 10,324 | 2,508 | 20,595 | |
Total Interest Charges | 2,138 | 4,098 | 4,423 | 7,945 | |
Total Income Taxes | 121 | (26,489) | (357) | (27,646) | |
Total Property Additions | 141 | 570 | 164 | 1,683 | |
Total Identifiable Assets | 170,251 | 170,251 | 195,329 | ||
Operating Segments | Energy Services: | Appliance Service Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 484 | 451 | 1,015 | 971 | |
Total Operating Income (Loss) | 421 | 442 | 1,016 | 945 | |
Total Depreciation and Amortization | 0 | 0 | 0 | 0 | |
Total Income Taxes | 136 | 106 | 303 | 237 | |
Total Identifiable Assets | 81 | 81 | 0 | ||
Corporate and Services | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 11,815 | 11,082 | 21,186 | 24,082 | |
Total Operating Income (Loss) | (433) | (9,263) | (5,555) | (13,834) | |
Total Depreciation and Amortization | 1,754 | 5,951 | 2,998 | 9,165 | |
Total Interest Charges | 14,659 | 13,368 | 30,063 | 20,838 | |
Total Income Taxes | (3,673) | (4,352) | (8,417) | (6,344) | |
Total Property Additions | 1 | 8,204 | 586 | 11,549 | |
Total Identifiable Assets | 317,842 | 317,842 | 387,482 | ||
Intersegment Sales | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | (15,233) | (18,788) | (27,611) | (40,558) | |
Total Interest Charges | (3,439) | (5,488) | (7,194) | (10,133) | |
Total Identifiable Assets | (245,527) | (245,527) | (301,735) | ||
ETG Utility Operations | Operating Segments | SJG Utility Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 44,854 | 0 | 185,028 | 0 | |
Total Operating Income (Loss) | 2,051 | 0 | 46,200 | 0 | |
Total Depreciation and Amortization | 6,813 | 0 | 13,471 | 0 | |
Total Interest Charges | 6,620 | 0 | 12,941 | 0 | |
Total Income Taxes | (809) | 0 | 6,093 | 0 | |
Total Property Additions | 53,938 | 0 | 91,962 | 0 | |
Total Identifiable Assets | 2,291,156 | 2,291,156 | 2,148,175 | ||
ELK Utility Operations | Operating Segments | SJG Utility Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 944 | 0 | 4,318 | 0 | |
Total Operating Income (Loss) | (32) | 0 | 598 | 0 | |
Total Depreciation and Amortization | 113 | 0 | 225 | 0 | |
Total Interest Charges | 5 | 0 | 11 | 0 | |
Total Income Taxes | (9) | 0 | 154 | 0 | |
Total Property Additions | 983 | 0 | 1,628 | 0 | |
Total Identifiable Assets | 19,043 | 19,043 | 16,482 | ||
SJG Utility Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 76,801 | 334,466 | 311,260 | ||
Total Operating Income (Loss) | 10,215 | 8,443 | 108,560 | 101,244 | |
Total Income Taxes | 671 | 482 | 24,368 | 22,318 | |
Total Identifiable Assets | 3,183,710 | 3,183,710 | 3,118,236 | ||
SJG Utility Operations | Operating Segments | SJG Utility Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 62,268 | 76,801 | 334,466 | 311,260 | |
Total Operating Income (Loss) | 10,215 | 8,443 | 108,560 | 101,244 | |
Total Depreciation and Amortization | 23,083 | 20,274 | 45,785 | 40,589 | |
Total Interest Charges | 7,896 | 6,999 | 15,744 | 13,727 | |
Total Income Taxes | 671 | 482 | 24,368 | 22,318 | |
Total Property Additions | 67,257 | 65,148 | 122,562 | 115,385 | |
Total Identifiable Assets | 3,183,710 | 3,183,710 | 3,118,236 | ||
SJI Midstream, LLC | |||||
Segment Reporting Information [Line Items] | |||||
Total Identifiable Assets | 78,246 | 78,246 | $ 72,333 | ||
SJI Midstream, LLC | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Total Interest Charges | 555 | 479 | 1,099 | 905 | |
Total Income Taxes | (33) | (22) | (65) | 40 | |
Total Property Additions | $ 7 | $ 99 | $ 19 | $ 310 |
RATES AND REGULATORY ACTIONS (D
RATES AND REGULATORY ACTIONS (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | May 31, 2019 | Apr. 30, 2019 | Oct. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2019 | |
ETG Utility Operations | ||||||
Schedule of Capitalization [Line Items] | ||||||
Net plant additions not reflected in current rates | $ 346 | |||||
New Jersey Board of Public Utilities | ETG Utility Operations | ||||||
Schedule of Capitalization [Line Items] | ||||||
Requested revenue increase | 65 | |||||
Requested recovery of investment costs not yet approved | $ 300 | |||||
New Jersey Board of Public Utilities | SJG Utility Operations | ||||||
Schedule of Capitalization [Line Items] | ||||||
Requested revenue increase | 3 | |||||
Investment to be recovered by Sharp II | 28.3 | |||||
Annual BGSS Filing | SJG Utility Operations | ||||||
Schedule of Capitalization [Line Items] | ||||||
Approved rate increase (decrease) | $ 65.5 | |||||
Requested revenue increase | $ (27.6) | |||||
Conservation Incentive Program | SJG Utility Operations | ||||||
Schedule of Capitalization [Line Items] | ||||||
Requested revenue increase | $ 7.6 | |||||
Net revenue decrease | $ 35.2 | |||||
Annual EET Rate Adjustments | SJG Utility Operations | ||||||
Schedule of Capitalization [Line Items] | ||||||
Requested revenue increase | 1.3 | |||||
Stipulation of Settlement | SJG Utility Operations | ||||||
Schedule of Capitalization [Line Items] | ||||||
Approved rate increase (decrease) | $ 65.5 | |||||
Period of gas cost recovery | 2 years | |||||
Public utilities bill credit | $ 24 | |||||
Accelerated Infrastructure Replacement Program II | SJG Utility Operations | ||||||
Schedule of Capitalization [Line Items] | ||||||
Requested revenue increase | 6.5 | |||||
Regulatory investment to be recovered by AIRP II | $ 63 | |||||
Annual SBC Filing | ETG Utility Operations | ||||||
Schedule of Capitalization [Line Items] | ||||||
Approved rate increase (decrease) | 0.8 | |||||
Annual SBC Filing | SJG Utility Operations | ||||||
Schedule of Capitalization [Line Items] | ||||||
Requested revenue increase | 1 | |||||
Annual Tax Rider | SJG Utility Operations | ||||||
Schedule of Capitalization [Line Items] | ||||||
Requested revenue increase | 6.8 | |||||
Annual EEP Rate Adjustment | ETG Utility Operations | ||||||
Schedule of Capitalization [Line Items] | ||||||
Approved rate increase (decrease) | $ 1.3 | |||||
Annual RAC Rate Adjustment | ETG Utility Operations | ||||||
Schedule of Capitalization [Line Items] | ||||||
Approved rate increase (decrease) | $ 6.9 |
REGULATORY ASSETS AND REGULAT_3
REGULATORY ASSETS AND REGULATORY LIABILITIES - Regulatory Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
SJG Utility Operations | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | $ 499,864 | $ 492,365 |
SJG Utility Operations | Environmental Remediation Costs: Expended - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 136,772 | 136,227 |
SJG Utility Operations | Environmental Remediation Costs: Liability for Future Expenditures | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 150,351 | 148,071 |
SJG Utility Operations | Deferred ARO Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 33,659 | 31,096 |
SJG Utility Operations | Deferred Pension Costs - Unrecognized Prior Service Cost | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
SJG Utility Operations | Deferred Pension and Other Postretirement Benefit Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 79,466 | 80,121 |
SJG Utility Operations | Deferred Gas Costs - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 60,993 | 57,889 |
SJG Utility Operations | SBC Receivable | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 150 | 2,173 |
SJG Utility Operations | Deferred Interest Rate Contracts | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 7,700 | 5,867 |
SJG Utility Operations | Energy Efficiency Tracker | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 4,919 | 2,319 |
SJG Utility Operations | Pipeline Supplier Service Charges | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 571 | 617 |
SJG Utility Operations | Pipeline Integrity Cost | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 5,325 | 5,140 |
SJG Utility Operations | AFUDC - Equity Related Deferrals | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 10,224 | 13,914 |
SJG Utility Operations | Weather Normalization | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
SJG Utility Operations | Other Regulatory Assets | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 9,734 | 8,931 |
SJI | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 682,264 | 662,969 |
SJI | Environmental Remediation Costs: Expended - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 153,282 | 147,102 |
SJI | Environmental Remediation Costs: Liability for Future Expenditures | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 253,700 | 252,665 |
SJI | Deferred ARO Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 44,442 | 31,096 |
SJI | Deferred Pension Costs - Unrecognized Prior Service Cost | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 39,010 | 40,626 |
SJI | Deferred Pension and Other Postretirement Benefit Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 82,103 | 82,758 |
SJI | Deferred Gas Costs - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 61,542 | 58,178 |
SJI | SBC Receivable | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 150 | 2,173 |
SJI | Deferred Interest Rate Contracts | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 7,700 | 5,867 |
SJI | Energy Efficiency Tracker | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 4,919 | 2,319 |
SJI | Pipeline Supplier Service Charges | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 571 | 617 |
SJI | Pipeline Integrity Cost | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 5,325 | 5,140 |
SJI | AFUDC - Equity Related Deferrals | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 10,224 | 13,914 |
SJI | Weather Normalization | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 252 | 3,349 |
SJI | Other Regulatory Assets | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 19,044 | 17,165 |
ETG Utility Operations | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 181,202 | 169,921 |
ETG Utility Operations | Environmental Remediation Costs: Expended - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 16,510 | 10,875 |
ETG Utility Operations | Environmental Remediation Costs: Liability for Future Expenditures | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 103,349 | 104,594 |
ETG Utility Operations | Deferred ARO Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 10,655 | 0 |
ETG Utility Operations | Deferred Pension Costs - Unrecognized Prior Service Cost | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 38,996 | 40,612 |
ETG Utility Operations | Deferred Pension and Other Postretirement Benefit Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 2,607 | 2,607 |
ETG Utility Operations | Deferred Gas Costs - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ETG Utility Operations | SBC Receivable | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ETG Utility Operations | Deferred Interest Rate Contracts | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ETG Utility Operations | Energy Efficiency Tracker | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ETG Utility Operations | Pipeline Supplier Service Charges | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ETG Utility Operations | Pipeline Integrity Cost | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ETG Utility Operations | AFUDC - Equity Related Deferrals | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ETG Utility Operations | Weather Normalization | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 3,210 |
ETG Utility Operations | Other Regulatory Assets | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 9,085 | 8,023 |
ELK Utility Operations | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 1,198 | 683 |
ELK Utility Operations | Environmental Remediation Costs: Expended - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ELK Utility Operations | Environmental Remediation Costs: Liability for Future Expenditures | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ELK Utility Operations | Deferred ARO Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 128 | 0 |
ELK Utility Operations | Deferred Pension Costs - Unrecognized Prior Service Cost | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 14 | 14 |
ELK Utility Operations | Deferred Pension and Other Postretirement Benefit Costs | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 30 | 30 |
ELK Utility Operations | Deferred Gas Costs - Net | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 549 | 289 |
ELK Utility Operations | SBC Receivable | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ELK Utility Operations | Deferred Interest Rate Contracts | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ELK Utility Operations | Energy Efficiency Tracker | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ELK Utility Operations | Pipeline Supplier Service Charges | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ELK Utility Operations | Pipeline Integrity Cost | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ELK Utility Operations | AFUDC - Equity Related Deferrals | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 0 | 0 |
ELK Utility Operations | Weather Normalization | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | 252 | 139 |
ELK Utility Operations | Other Regulatory Assets | ||
Regulatory Assets [Line Items] | ||
Total Regulatory Assets | $ 225 | $ 211 |
REGULATORY ASSETS AND REGULAT_4
REGULATORY ASSETS AND REGULATORY LIABILITIES - Narrative and Regulatory Liabilities (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019USD ($)siteasset | Dec. 31, 2018USD ($) | |
Environmental restoration costs | ||
Regulatory Assets [Line Items] | ||
Number of regulatory assets | asset | 2 | |
Original recovery period of expenditures | 7 years | |
SJG Utility Operations | ||
Regulatory Assets [Line Items] | ||
Regulatory Liabilities | $ 272,370 | $ 286,539 |
Regulatory assets | $ 499,864 | 492,365 |
SJG Utility Operations | Environmental restoration costs | ||
Regulatory Assets [Line Items] | ||
Number of sites for environmental cleanup | site | 12 | |
SJG Utility Operations | Weather Normalization | ||
Regulatory Assets [Line Items] | ||
Regulatory Liabilities | $ 0 | |
Regulatory assets | 0 | 0 |
SJG Utility Operations | Deferred Revenues - Net | ||
Regulatory Assets [Line Items] | ||
Decrease in regulatory assets | 3,100 | |
SJG Utility Operations | Unprotected Excess Deferred Income Tax | ||
Regulatory Assets [Line Items] | ||
Regulatory Liabilities | $ 26,100 | |
Period to refund to customers | 5 years | |
SJI | ||
Regulatory Assets [Line Items] | ||
Regulatory Liabilities | $ 457,958 | 478,499 |
Regulatory assets | 682,264 | 662,969 |
SJI | Weather Normalization | ||
Regulatory Assets [Line Items] | ||
Regulatory Liabilities | 1,641 | |
Regulatory assets | 252 | 3,349 |
SJI | Deferred Revenues - Net | ||
Regulatory Assets [Line Items] | ||
Decrease in regulatory assets | 3,400 | |
ETG Utility Operations | ||
Regulatory Assets [Line Items] | ||
Regulatory Liabilities | 182,971 | 189,336 |
Regulatory assets | $ 181,202 | 169,921 |
ETG Utility Operations | Environmental restoration costs | ||
Regulatory Assets [Line Items] | ||
Number of sites for environmental cleanup | site | 6 | |
ETG Utility Operations | Weather Normalization | ||
Regulatory Assets [Line Items] | ||
Regulatory Liabilities | $ 1,641 | |
Regulatory assets | 0 | $ 3,210 |
ETG Utility Operations | Weather Normalization | ||
Regulatory Assets [Line Items] | ||
Regulatory Liabilities | $ 1,600 |
REGULATORY ASSETS AND REGULAT_5
REGULATORY ASSETS AND REGULATORY LIABILITIES - Regulatory Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
SJG Utility Operations | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | $ 272,370 | $ 286,539 |
SJI | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 457,958 | 478,499 |
Excess Plant Removal Costs | SJG Utility Operations | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 17,910 | 20,805 |
Excess Plant Removal Costs | SJI | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 67,123 | 70,107 |
Excess Deferred Taxes | SJG Utility Operations | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 252,854 | 259,863 |
Excess Deferred Taxes | SJI | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 374,555 | 379,851 |
Deferred Revenues - Net | SJG Utility Operations | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 0 | |
Deferred Revenues - Net | SJI | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 3,188 | |
CIP Payable | SJG Utility Operations | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 1,606 | 5,871 |
CIP Payable | SJI | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 1,606 | 5,871 |
Amounts to be Refunded to Customers | SJG Utility Operations | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 0 | 0 |
Amounts to be Refunded to Customers | SJI | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 12,750 | 17,039 |
Other Regulatory Liabilities | SJG Utility Operations | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 0 | 0 |
Other Regulatory Liabilities | SJI | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 283 | 2,443 |
ETG Utility Operations | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 182,971 | 189,336 |
ETG Utility Operations | Excess Plant Removal Costs | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 47,827 | 47,909 |
ETG Utility Operations | Excess Deferred Taxes | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 120,470 | 118,757 |
ETG Utility Operations | Deferred Revenues - Net | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 3,188 | |
ETG Utility Operations | CIP Payable | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 0 | 0 |
ETG Utility Operations | Amounts to be Refunded to Customers | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 12,750 | 17,039 |
ETG Utility Operations | Other Regulatory Liabilities | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 283 | 2,443 |
ELK Utility Operations | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 2,617 | 2,624 |
ELK Utility Operations | Excess Plant Removal Costs | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 1,386 | 1,393 |
ELK Utility Operations | Excess Deferred Taxes | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 1,231 | 1,231 |
ELK Utility Operations | Deferred Revenues - Net | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 0 | |
ELK Utility Operations | CIP Payable | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 0 | 0 |
ELK Utility Operations | Amounts to be Refunded to Customers | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 0 | 0 |
ELK Utility Operations | Other Regulatory Liabilities | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 0 | $ 0 |
Weather Normalization | SJG Utility Operations | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 0 | |
Weather Normalization | SJI | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 1,641 | |
Weather Normalization | ETG Utility Operations | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | 1,641 | |
Weather Normalization | ELK Utility Operations | ||
Regulatory Liabilities [Line Items] | ||
Total Regulatory Liabilities | $ 0 |
PENSION AND OTHER POSTRETIREM_3
PENSION AND OTHER POSTRETIREMENT BENEFITS - Schedule of Defined Benefit Plans Disclosure (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service Cost | $ 1,081 | $ 639 | $ 2,800 | $ 2,816 |
Interest Cost | 4,435 | 716 | 8,664 | 5,824 |
Expected Return on Plan Assets | (4,942) | (19) | (10,135) | (7,652) |
Amortizations: | ||||
Prior Service Cost | 27 | (13) | 53 | 58 |
Actuarial Loss | 2,360 | 1,632 | 4,797 | 5,764 |
Net Periodic Benefit Cost | 2,961 | 2,955 | 6,179 | 6,810 |
Capitalized Benefit Cost | (374) | (554) | (968) | (1,037) |
Deferred Benefit Cost | (653) | (374) | (1,194) | (1,125) |
Total Net Periodic Benefit Expense | 1,934 | 2,027 | 4,017 | 4,648 |
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service Cost | 37 | 360 | 271 | 441 |
Interest Cost | 806 | 859 | 1,434 | 1,076 |
Expected Return on Plan Assets | (1,133) | (1,578) | (2,282) | (1,883) |
Amortizations: | ||||
Prior Service Cost | (145) | (141) | (288) | (172) |
Actuarial Loss | 321 | 340 | 584 | 451 |
Net Periodic Benefit Cost | (114) | (160) | (281) | (87) |
Capitalized Benefit Cost | (99) | 0 | (155) | (5) |
Deferred Benefit Cost | 119 | 0 | 235 | 0 |
Total Net Periodic Benefit Expense | $ (94) | $ (160) | $ (201) | $ (92) |
PENSION AND OTHER POSTRETIREM_4
PENSION AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service Cost | $ 1,081,000 | $ 639,000 | $ 2,800,000 | $ 2,816,000 |
Net Periodic Benefit Cost | 2,961,000 | 2,955,000 | 6,179,000 | 6,810,000 |
Contributions | 0 | 0 | ||
Estimated future contributions | 0 | 0 | ||
Pension Benefits | SJG Utility Operations | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Net Periodic Benefit Cost | 2,100,000 | 1,900,000 | 4,400,000 | 4,300,000 |
Contributions | 0 | 0 | ||
Estimated future contributions | 0 | 0 | ||
Other Postretirement Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service Cost | 37,000 | 360,000 | 271,000 | 441,000 |
Net Periodic Benefit Cost | (114,000) | (160,000) | (281,000) | (87,000) |
Other Postretirement Benefits | SJG Utility Operations | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Net Periodic Benefit Cost | (100,000) | $ 100,000 | (200,000) | $ 100,000 |
Supplemental executive retirement plan | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Estimated future contributions | $ 3,600,000 | $ 3,600,000 |
LINES OF CREDIT - Schedule of L
LINES OF CREDIT - Schedule of Lines of Credit (Details) - USD ($) | Jun. 30, 2019 | May 31, 2019 |
Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Total Facility | $ 960,000,000 | |
Usage | 691,500,000 | |
Available Liquidity | 268,500,000 | |
SJI | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Total Facility | 550,000,000 | |
Usage | 446,600,000 | |
Available Liquidity | 103,400,000 | |
SJI | Line of Credit | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Total Facility | 50,000,000 | |
Usage | 50,000,000 | |
Available Liquidity | 0 | |
SJI | Line of Credit | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Total Facility | 500,000,000 | $ 400,000,000 |
Usage | 396,600,000 | |
Available Liquidity | 103,400,000 | |
Letters of credit outstanding | 9,600,000 | |
SJG Utility Operations | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Total Facility | 210,000,000 | |
Usage | 104,000,000 | |
Available Liquidity | 106,000,000 | |
SJG Utility Operations | Line of Credit | Uncommitted Bank Line | ||
Line of Credit Facility [Line Items] | ||
Total Facility | 10,000,000 | |
Usage | 0 | |
Available Liquidity | 10,000,000 | |
SJG Utility Operations | Line of Credit | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Letters of credit outstanding | 900,000 | |
SJG Utility Operations | Commercial Paper and Letters of Credit | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Total Facility | 200,000,000 | |
Usage | 104,000,000 | |
Available Liquidity | 96,000,000 | |
ETG Utility Operations | Line of Credit | Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Total Facility | 200,000,000 | |
Usage | 140,900,000 | |
Available Liquidity | 59,100,000 | |
ETG Utility Operations | Line of Credit | Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Letters of credit outstanding | $ 1,000,000 |
LINES OF CREDIT (Details)
LINES OF CREDIT (Details) - USD ($) | 1 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | May 31, 2019 | |
Line of Credit Facility [Line Items] | ||||
Maximum amount outstanding on lines of credit during the period | $ 687,200,000 | $ 397,300,000 | ||
SJG Utility Operations | ||||
Line of Credit Facility [Line Items] | ||||
Maximum amount outstanding on lines of credit during the period | 108,000,000 | $ 85,000,000 | ||
Commercial Paper and Letters of Credit | SJG Utility Operations | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Total Facility | $ 200,000,000 | 200,000,000 | ||
Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Total Facility | 960,000,000 | $ 960,000,000 | ||
Debt covenant, ratio of indebtedness to total capitalization, syndicate | 0.70 | |||
Weighted average interest rate on borrowings | 3.45% | 2.90% | ||
Average borrowings outstanding | $ 347,200,000 | $ 201,600,000 | ||
Line of Credit | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum aggregate letters of credit allowed | 50,000,000 | 50,000,000 | ||
Line of Credit | SJI | ||||
Line of Credit Facility [Line Items] | ||||
Total Facility | 550,000,000 | 550,000,000 | ||
Line of Credit | SJI | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Increase in borrowing capacity | 100,000,000 | |||
Total Facility | 500,000,000 | 500,000,000 | $ 400,000,000 | |
Maximum aggregate letters of credit allowed | 200,000,000 | 200,000,000 | ||
Increase in maximum aggregate facility subject to certain conditions | 100,000,000 | |||
Maximum aggregate facility, including increase subject to certain conditions | $ 600,000,000 | 600,000,000 | ||
Line of Credit | SJI | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Term (in years) | 5 years | |||
Total Facility | $ 50,000,000 | 50,000,000 | ||
Line of Credit | SJI | Swingline Loan | ||||
Line of Credit Facility [Line Items] | ||||
Additional aggregate borrowing capacity | 50,000,000 | 50,000,000 | ||
Line of Credit | SJG Utility Operations | ||||
Line of Credit Facility [Line Items] | ||||
Total Facility | 210,000,000 | $ 210,000,000 | ||
Weighted average interest rate on borrowings | 2.60% | 2.33% | ||
Average borrowings outstanding | $ 72,500,000 | $ 49,300,000 | ||
Debt covenant, ratio of indebtedness to total capitalization | 0.65 | |||
Line of Credit | SJG Utility Operations | Uncommitted Bank Line | ||||
Line of Credit Facility [Line Items] | ||||
Total Facility | 10,000,000 | $ 10,000,000 | ||
Line of Credit | ETG Utility Operations | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Total Facility | 200,000,000 | 200,000,000 | ||
Additional aggregate borrowing capacity | 200,000,000 | 200,000,000 | ||
Line of Credit | ETG Utility Operations | Swingline Loan | ||||
Line of Credit Facility [Line Items] | ||||
Additional aggregate borrowing capacity | 20,000,000 | 20,000,000 | ||
Line of Credit | ETG Utility Operations | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Total Facility | 250,000,000 | 250,000,000 | ||
Additional aggregate borrowing capacity | 175,000,000 | 175,000,000 | ||
Increase in maximum aggregate facility subject to certain conditions | 50,000,000 | |||
Line of Credit | ELK Utility Operations | Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Additional aggregate borrowing capacity | 25,000,000 | 25,000,000 | ||
Unsecured promissory notes | SJG Commercial Paper Program | ||||
Line of Credit Facility [Line Items] | ||||
Total Facility | $ 200,000,000 | $ 200,000,000 | ||
Fixed maturities of notes, at maximum number of days | 270 days |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | Jul. 01, 2018USD ($) | Jun. 30, 2019USD ($)sitedecatherm / daycontract | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)sitedecatherm / daycontract | Jun. 30, 2018USD ($) | Mar. 31, 2019USD ($) | Jun. 30, 2019USD ($)sitedecatherm / daycontract | Dec. 31, 2018USD ($)$ / shares |
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 | 46.00% | 46.00% | 46.00% | |||||
Interest charges | $ 28,434,000 | $ 19,561,000 | $ 57,087,000 | $ 33,533,000 | ||||
Approximate amount accrued related to all claims | $ 2,800,000 | $ 2,800,000 | $ 2,800,000 | $ 3,200,000 | ||||
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 | $ 960,000,000 | $ 960,000,000 | $ 960,000,000 | |||||
Standby letters of credit | ||||||||
Commitment and Contingencies [Line Items] | ||||||||
Letter of credit provided | $ 9,600,000 | 9,600,000 | $ 9,600,000 | |||||
SJG Utility Operations | ||||||||
Commitment and Contingencies [Line Items] | ||||||||
Cumulative obligation for demand charges and reservation fees per month | $ 6,700,000 | |||||||
Percentage of personnel represented by collective bargaining agreements | 67.00% | 67.00% | 67.00% | |||||
Charges to cost of sales | $ 2,654,000 | 19,379,000 | $ 121,534,000 | 109,187,000 | ||||
Interest charges | 7,896,000 | 6,999,000 | 15,744,000 | 13,727,000 | ||||
Approximate amount accrued related to all claims | $ 600,000 | $ 600,000 | $ 600,000 | $ 900,000 | ||||
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 | $ 22,600,000 | |||||||
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 | Line of Credit | Line of Credit | ||||||||
Commitment and Contingencies [Line Items] | ||||||||
Letters of credit outstanding | 900,000 | 900,000 | 900,000 | |||||
SJG Utility Operations | Letter of Credit [Member] | ||||||||
Commitment and Contingencies [Line Items] | ||||||||
Letter of credit provided | 900,000 | 900,000 | 900,000 | |||||
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 | |||||
ETG Utility Operations | Letter of Credit [Member] | ||||||||
Commitment and Contingencies [Line Items] | ||||||||
Letter of credit provided | $ 1,000,000 | 1,000,000 | $ 1,000,000 | |||||
South Jersey Resources Group | ||||||||
Commitment and Contingencies [Line Items] | ||||||||
Cumulative obligation for demand charges and reservation fees per month | $ 1,300,000 | |||||||
Maximum purchase commitment (in dts/d) | decatherm / day | 832,500 | 832,500 | 832,500 | |||||
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 | $ 58,900,000 | |||||||
Interest charges | $ 400,000 | 200,000 | $ 700,000 | 400,000 | ||||
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 | 22,600,000 | |||||||
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 | $ 58,900,000 | |||||||
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 | $ 8,800,000 | $ 8,800,000 | $ 8,800,000 | |||||
Guarantee expiration period | 2 years | |||||||
ETG Utility Operations | ||||||||
Commitment and Contingencies [Line Items] | ||||||||
Cumulative obligation for demand charges and reservation fees per month | $ 5,200,000 | |||||||
Minimum annual fee for long-term asset management contract | $ 4,250,000 | |||||||
ETG Utility Operations | Environmental restoration costs | ||||||||
Commitment and Contingencies [Line Items] | ||||||||
Number of sites for environmental cleanup | site | 6 | 6 | 6 | |||||
Nonutility Operations | ||||||||
Commitment and Contingencies [Line Items] | ||||||||
Charges to cost of sales | $ 148,620,000 | 127,615,000 | $ 362,558,000 | 323,566,000 | ||||
Nonutility Operations | South Jersey Resources Group | Pricing dispute, long-term gas supply contract | Judicial ruling | ||||||||
Commitment and Contingencies [Line Items] | ||||||||
Charges to cost of sales | $ 400,000 | $ 900,000 | $ 500,000 | $ 1,000,000 |
DERIVATIVE INSTRUMENTS - Outsta
DERIVATIVE INSTRUMENTS - Outstanding Contracts (Details) MWh in Millions, MMcfe in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($)MWh | Jun. 30, 2019USD ($)MMcfe | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Derivative [Line Items] | |||||||
Unrealized gains (losses) | $ (9,000,000) | $ 4,100,000 | |||||
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 (sale) contracts (in MMdts) | |||||||
Derivative [Line Items] | |||||||
Notional amount (natural gas in mmcfe and electricity in mwh) | MMcfe | 18.8 | ||||||
Derivatives not designated as hedging instruments under GAAP | |||||||
Derivative [Line Items] | |||||||
Gain (loss) on energy related derivative instruments not designated as hedging instruments | $ (143,000) | $ (6,178,000) | $ (12,203,000) | $ 17,175,000 | |||
Expected future purchases | |||||||
Derivative [Line Items] | |||||||
Notional amount (natural gas in mmcfe and electricity in mwh) | 1.1 | 90.8 | |||||
Expected future sales | |||||||
Derivative [Line Items] | |||||||
Notional amount (natural gas in mmcfe and electricity in mwh) | 0.9 | 87.7 | |||||
SJG | |||||||
Derivative [Line Items] | |||||||
Unrealized gains (losses) | (4,500,000) | $ 3,300,000 | |||||
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) | 24.5 | ||||||
SJG | Expected future sales | |||||||
Derivative [Line Items] | |||||||
Notional amount (natural gas in mmcfe and electricity in mwh) | 0.3 | ||||||
SJG | Basis and Index related net purchase (sale) contracts (in MMdts) | |||||||
Derivative [Line Items] | |||||||
Notional amount (natural gas in mmcfe and electricity in mwh) | MMcfe | 3.8 |
DERIVATIVE INSTRUMENTS - Fair V
DERIVATIVE INSTRUMENTS - Fair Value of all Derivative Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Assets | $ 46,871 | $ 61,190 |
Liabilities | 55,048 | 39,263 |
SJG Utility Operations | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 1,829 | 5,479 |
Liabilities | 13,993 | 8,056 |
Energy-related commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 46,871 | 61,190 |
Liabilities | 0 | 0 |
Energy-related commodity contracts | SJG Utility Operations | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 1,829 | 5,479 |
Liabilities | 0 | 0 |
Derivatives not designated as hedging instruments under GAAP | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 46,871 | 61,190 |
Liabilities | 55,048 | 39,263 |
Derivatives not designated as hedging instruments under GAAP | SJG Utility Operations | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 1,829 | 5,479 |
Liabilities | 13,993 | 8,056 |
Derivatives not designated as hedging instruments under GAAP | Energy-related commodity contracts | Derivatives - Energy Related - Current | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 34,988 | 54,021 |
Liabilities | 35,229 | 24,134 |
Derivatives not designated as hedging instruments under GAAP | Energy-related commodity contracts | Derivatives - Energy Related - Current | SJG Utility Operations | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 1,829 | 5,464 |
Liabilities | 5,996 | 2,146 |
Derivatives not designated as hedging instruments under GAAP | Energy-related commodity contracts | Derivatives - Energy Related - Non-Current | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 11,883 | 7,169 |
Liabilities | 7,278 | 7,256 |
Derivatives not designated as hedging instruments under GAAP | Energy-related commodity contracts | Derivatives - Energy Related - Non-Current | SJG Utility Operations | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 15 |
Liabilities | 297 | 43 |
Derivatives not designated as hedging instruments under GAAP | Interest rate contracts | Derivatives - Other - Current | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 1,092 | 588 |
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 | 464 | 343 |
Derivatives not designated as hedging instruments under GAAP | Interest rate contracts | Derivatives - Other - Noncurrent | ||
Derivatives, Fair Value [Line Items] | ||
Assets | 0 | 0 |
Liabilities | 11,449 | 7,285 |
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 | $ 7,236 | $ 5,524 |
DERIVATIVE INSTRUMENTS - Offset
DERIVATIVE INSTRUMENTS - Offsetting Arrangements (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Offsetting Derivative Assets [Abstract] | ||
Gross amounts of recognized assets/liabilities | $ 46,871 | $ 61,190 |
Offsetting Derivative Liabilities [Abstract] | ||
Gross amount offset in the balance sheet | 55,048 | 39,263 |
SJG | ||
Offsetting Derivative Assets [Abstract] | ||
Gross amounts of recognized assets/liabilities | 1,829 | 5,479 |
Offsetting Derivative Liabilities [Abstract] | ||
Gross amount offset in the balance sheet | 13,993 | 8,056 |
Energy-related commodity contracts | ||
Offsetting Derivative Assets [Abstract] | ||
Gross amounts of recognized assets/liabilities | 46,871 | 61,190 |
Gross amount offset in the balance sheet | 0 | 0 |
Net amounts of assets/liabilities in balance sheet | 46,871 | 61,190 |
Gross amounts not offset in the balance sheet, Financial Instruments | (25,996) | (21,045) |
Gross amounts not offset in the balance sheet, Cash Collateral Posted | 0 | (7,252) |
Net amount | 20,875 | 32,893 |
Offsetting Derivative Liabilities [Abstract] | ||
Gross amounts of recognized assets/liabilities | (42,507) | (31,390) |
Gross amount offset in the balance sheet | 0 | 0 |
Net amounts of assets/liabilities in balance sheet | (42,507) | (31,390) |
Gross amounts not offset in the balance sheet, Financial Instruments | 25,996 | 21,045 |
Gross amounts not offset in the balance sheet, Cash Collateral Posted | 10,371 | 0 |
Net amount | (6,140) | (10,345) |
Energy-related commodity contracts | SJG | ||
Offsetting Derivative Assets [Abstract] | ||
Gross amounts of recognized assets/liabilities | 1,829 | 5,479 |
Gross amount offset in the balance sheet | 0 | 0 |
Net amounts of assets/liabilities in balance sheet | 1,829 | 5,479 |
Gross amounts not offset in the balance sheet, Financial Instruments | (45) | (347) |
Gross amounts not offset in the balance sheet, Cash Collateral Posted | 0 | 688 |
Net amount | 1,784 | 5,820 |
Offsetting Derivative Liabilities [Abstract] | ||
Gross amounts of recognized assets/liabilities | (6,293) | (2,189) |
Gross amount offset in the balance sheet | 0 | 0 |
Net amounts of assets/liabilities in balance sheet | (6,293) | (2,189) |
Gross amounts not offset in the balance sheet, Financial Instruments | 45 | 347 |
Gross amounts not offset in the balance sheet, Cash Collateral Posted | 5,794 | 0 |
Net amount | (454) | (1,842) |
Other | ||
Offsetting Derivative Liabilities [Abstract] | ||
Gross amounts of recognized assets/liabilities | (12,541) | (7,873) |
Gross amount offset in the balance sheet | 0 | 0 |
Net amounts of assets/liabilities in balance sheet | (12,541) | (7,873) |
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 | (12,541) | (7,873) |
Other | SJG | ||
Offsetting Derivative Liabilities [Abstract] | ||
Gross amounts of recognized assets/liabilities | (7,700) | (5,867) |
Gross amount offset in the balance sheet | 0 | 0 |
Net amounts of assets/liabilities in balance sheet | (7,700) | (5,867) |
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 | $ (7,700) | $ (5,867) |
DERIVATIVE INSTRUMENTS - Effect
DERIVATIVE INSTRUMENTS - Effect of Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest Rate Contracts: | ||||
Total | $ (1,888) | $ (5,558) | $ (15,038) | $ 19,423 |
Fair value of derivative instruments with credit-risk-related features | 500 | 500 | ||
Additional collateral, aggregate fair value | 500 | 500 | ||
Derivatives in Cash Flow Hedging Relationships under GAAP | ||||
Interest Rate Contracts: | ||||
Losses reclassified from AOCL into income | (12) | (12) | (24) | (24) |
Derivatives in Cash Flow Hedging Relationships under GAAP | SJG | ||||
Interest Rate Contracts: | ||||
Losses reclassified from AOCL into income | (12) | (12) | (24) | (24) |
Derivatives not designated as hedging instruments under GAAP | ||||
Interest Rate Contracts: | ||||
(Losses) gains on energy-related commodity contracts | (143) | (6,178) | (12,203) | 17,175 |
(Losses) Gains on interest rate contracts | $ (1,745) | $ 620 | $ (2,835) | $ 2,248 |
FAIR VALUE OF FINANCIAL ASSET_3
FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES - Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | $ 41 | $ 41 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 41 | 41 |
Assets | ||
Derivatives - Energy Related Assets | 46,871 | 61,190 |
Total Assets | 46,912 | 61,231 |
Liabilities | ||
Derivatives - Energy Related Liabilities | 42,507 | 31,390 |
Derivatives - Other | 12,541 | 7,873 |
Total Liabilities | 55,048 | 39,263 |
Fair Value, Measurements, Recurring | SJG | ||
Assets | ||
Derivatives - Energy Related Assets | 1,829 | 5,479 |
Total Assets | 1,829 | 5,479 |
Liabilities | ||
Derivatives - Energy Related Liabilities | 6,293 | 2,189 |
Derivatives - Other | 7,700 | 5,867 |
Total Liabilities | 13,993 | 8,056 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 41 | 41 |
Assets | ||
Derivatives - Energy Related Assets | 6,935 | 9,955 |
Total Assets | 6,976 | 9,996 |
Liabilities | ||
Derivatives - Energy Related Liabilities | 20,245 | 7,291 |
Derivatives - Other | 0 | 0 |
Total Liabilities | 20,245 | 7,291 |
Fair Value, Measurements, Recurring | Level 1 | SJG | ||
Assets | ||
Derivatives - Energy Related Assets | 45 | 348 |
Total Assets | 45 | 348 |
Liabilities | ||
Derivatives - Energy Related Liabilities | 5,839 | 1,035 |
Derivatives - Other | 0 | 0 |
Total Liabilities | 5,839 | 1,035 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 0 | 0 |
Assets | ||
Derivatives - Energy Related Assets | 16,212 | 23,429 |
Total Assets | 16,212 | 23,429 |
Liabilities | ||
Derivatives - Energy Related Liabilities | 8,498 | 12,354 |
Derivatives - Other | 12,541 | 7,873 |
Total Liabilities | 21,039 | 20,227 |
Fair Value, Measurements, Recurring | Level 2 | SJG | ||
Assets | ||
Derivatives - Energy Related Assets | 24 | 126 |
Total Assets | 24 | 126 |
Liabilities | ||
Derivatives - Energy Related Liabilities | 402 | 1,077 |
Derivatives - Other | 7,700 | 5,867 |
Total Liabilities | 8,102 | 6,944 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-Sale Securities | 0 | 0 |
Assets | ||
Derivatives - Energy Related Assets | 23,724 | 27,806 |
Total Assets | 23,724 | 27,806 |
Liabilities | ||
Derivatives - Energy Related Liabilities | 13,764 | 11,745 |
Derivatives - Other | 0 | 0 |
Total Liabilities | 13,764 | 11,745 |
Fair Value, Measurements, Recurring | Level 3 | SJG | ||
Assets | ||
Derivatives - Energy Related Assets | 1,760 | 5,005 |
Total Assets | 1,760 | 5,005 |
Liabilities | ||
Derivatives - Energy Related Liabilities | 52 | 77 |
Derivatives - Other | 0 | 0 |
Total Liabilities | $ 52 | $ 77 |
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 | Jun. 30, 2019USD ($)$ / decatherm | Dec. 31, 2018USD ($)$ / decatherm |
Natural Gas | Minimum | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Forward price (in dollars per dt) | $ / decatherm | 1.69 | 1.56 |
Natural Gas | Minimum | SJG Utility Operations | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Forward price (in dollars per dt) | $ / decatherm | 1.78 | 3.13 |
Natural Gas | Maximum | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Forward price (in dollars per dt) | $ / decatherm | 8.31 | 9 |
Natural Gas | Maximum | SJG Utility Operations | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Forward price (in dollars per dt) | $ / decatherm | 5.78 | 6 |
Natural Gas | Weighted Average | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Forward price (in dollars per dt) | $ / decatherm | 2.50 | 3.12 |
Natural Gas | Weighted Average | SJG Utility Operations | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Forward price (in dollars per dt) | $ / decatherm | 2.66 | 4.53 |
Electricity | Minimum | On-Peak | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Fixed electric load profile | 40.24% | 0.00% |
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 | 59.76% | 100.00% |
Electricity | Weighted Average | On-Peak | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Fixed electric load profile | 54.98% | 54.55% |
Electricity | Weighted Average | Off-Peak | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Fixed electric load profile | 45.02% | 45.45% |
Discounted Cash Flow | Natural Gas | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Assets | $ | $ 18,772 | $ 20,706 |
Liabilities | $ | 9,815 | 8,976 |
Discounted Cash Flow | Natural Gas | SJG Utility Operations | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Assets | $ | 1,760 | 5,005 |
Liabilities | $ | 52 | 77 |
Discounted Cash Flow | Electricity | ||
Fair Value Inputs, Assets And Liabilities, Quantitative Information [Line Items] | ||
Assets | $ | 4,952 | 7,100 |
Liabilities | $ | $ 3,949 | $ 2,769 |
FAIR VALUE OF FINANCIAL ASSET_5
FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES - Changes in Measurements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | $ 8,277 | $ 16,586 | $ 16,061 | $ 3,110 |
Other Changes in Fair Value from Continuing and New Contracts, Net (A) | 6,553 | 6,215 | 4,285 | 10,204 |
Settlements | (4,870) | (4,440) | (10,386) | 5,047 |
Balance at end of period | 9,960 | 18,361 | 9,960 | 18,361 |
SJG | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | 1,706 | (6) | 4,928 | 2,052 |
Other Changes in Fair Value from Continuing and New Contracts, Net (A) | 2 | 6,003 | 1,708 | 5,997 |
Settlements | 0 | 0 | (4,928) | (2,052) |
Balance at end of period | $ 1,708 | $ 5,997 | $ 1,708 | $ 5,997 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jan. 17, 2019 | |
Debt Instrument [Line Items] | ||
Early repayment of senior debt | $ 575,000,000 | |
Interest rate | 7.50% | |
Series 2018D Senior Notes, Due 2019 | ||
Debt Instrument [Line Items] | ||
Principal amount issued | $ 475,000,000 | |
Early repayment of senior debt | $ 475,000,000 | |
Series 2014A-1 Senior Notes, Due 2026 | ||
Debt Instrument [Line Items] | ||
Early repayment of senior debt | $ 60,000,000 | |
Interest rate | 3.30% | |
Series 2014B-1 Senior Notes, Due June 26, 2019 | ||
Debt Instrument [Line Items] | ||
Early repayment of senior debt | $ 40,000,000 | |
Unsecured Term Loan | SJG Utility Operations | Credit Agreement | ||
Debt Instrument [Line Items] | ||
Draw on term loan | 10,000,000 | |
Total Facility | $ 400,000,000 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Summary of Changes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||
Beginning balance | $ 1,514,554 | $ 1,267,022 | $ 1,281,497 | $ 1,192,409 | $ 1,267,022 | $ 1,192,409 | ||||
Other comprehensive income before reclassifications | 0 | 0 | ||||||||
Amounts reclassified from AOCL | 8 | 16 | ||||||||
Other Comprehensive Income - Net of Tax | 8 | [1] | 8 | 8 | [1] | 9 | 16 | [1] | 17 | [1] |
Ending balance | 1,476,472 | 1,514,554 | 1,303,717 | 1,281,497 | $ 1,476,472 | $ 1,303,717 | ||||
Combined statutory tax rate | 27.00% | 25.00% | ||||||||
SJG Utility Operations | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||
Beginning balance | 1,076,761 | 1,008,022 | 988,189 | 921,433 | $ 1,008,022 | $ 921,433 | ||||
Other comprehensive income before reclassifications | 0 | 0 | ||||||||
Amounts reclassified from AOCL | 8 | 16 | ||||||||
Other Comprehensive Income - Net of Tax | 8 | [2] | 8 | 8 | [2] | 9 | 16 | [2] | 17 | [2] |
Ending balance | 1,078,745 | 1,076,761 | 989,766 | 988,189 | $ 1,078,745 | $ 989,766 | ||||
Combined statutory tax rate | 27.00% | 25.00% | ||||||||
Postretirement Liability Adjustment | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||
Beginning balance | (25,626) | (25,626) | (36,262) | (36,262) | $ (25,626) | $ (36,262) | ||||
Other comprehensive income before reclassifications | 0 | 0 | ||||||||
Amounts reclassified from AOCL | 0 | 0 | ||||||||
Other Comprehensive Income - Net of Tax | 0 | 0 | 0 | 0 | 0 | |||||
Ending balance | (25,626) | (25,626) | (36,262) | (36,262) | (25,626) | (36,262) | ||||
Postretirement Liability Adjustment | SJG Utility Operations | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||
Beginning balance | (21,901) | (21,901) | (25,507) | (25,507) | (21,901) | (25,507) | ||||
Other comprehensive income before reclassifications | 0 | 0 | ||||||||
Amounts reclassified from AOCL | 0 | 0 | ||||||||
Other Comprehensive Income - Net of Tax | 0 | 0 | 0 | 0 | 0 | |||||
Ending balance | (21,901) | (21,901) | (25,507) | (25,507) | (21,901) | (25,507) | ||||
Unrealized Gain (Loss) on Derivatives-Other | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||
Beginning balance | (354) | (362) | (362) | |||||||
Other comprehensive income before reclassifications | 0 | 0 | ||||||||
Amounts reclassified from AOCL | 8 | 16 | ||||||||
Other Comprehensive Income - Net of Tax | 8 | 16 | ||||||||
Ending balance | (346) | (354) | (346) | |||||||
Unrealized Gain (Loss) on Derivatives-Other | SJG Utility Operations | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||
Beginning balance | (448) | (456) | (456) | |||||||
Other comprehensive income before reclassifications | 0 | 0 | ||||||||
Amounts reclassified from AOCL | 8 | 16 | ||||||||
Other Comprehensive Income - Net of Tax | 8 | 16 | ||||||||
Ending balance | (440) | (448) | (440) | |||||||
Unrealized Gain (Loss) on Available-for-Sale Securities | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||
Beginning balance | (10) | (10) | (10) | (10) | (10) | (10) | ||||
Other comprehensive income before reclassifications | 0 | 0 | ||||||||
Amounts reclassified from AOCL | 0 | 0 | ||||||||
Other Comprehensive Income - Net of Tax | 0 | 0 | 0 | 0 | 0 | |||||
Ending balance | (10) | (10) | (10) | (10) | (10) | (10) | ||||
Other Comprehensive Income (Loss) of Affiliated Companies | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||
Beginning balance | (97) | (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) | (97) | |||||||
Total | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||
Beginning balance | (26,087) | (26,095) | (36,756) | (36,765) | (26,095) | (36,765) | ||||
Other Comprehensive Income - Net of Tax | 8 | 8 | 8 | 9 | ||||||
Ending balance | (26,079) | (26,087) | (36,748) | (36,756) | (26,079) | (36,748) | ||||
Total | SJG Utility Operations | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||
Beginning balance | (22,349) | (22,357) | (25,988) | (25,997) | (22,357) | (25,997) | ||||
Other Comprehensive Income - Net of Tax | 8 | 8 | 8 | 9 | ||||||
Ending balance | $ (22,341) | $ (22,349) | $ (25,980) | $ (25,988) | $ (22,341) | $ (25,980) | ||||
[1] | Determined using a combined average statutory tax rate of approximately 27% and 25% in 2019 and 2018, respectively. | |||||||||
[2] | Determined using a combined average statutory tax rate of approximately 27% and 25% in 2019 and 2018, respectively. |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS - Reclassifications out of AOCL (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income Taxes | $ (4,646) | $ (31,972) | $ 20,303 | $ 4,443 |
Amounts reclassified from AOCL | 8 | $ 16 | ||
Combined statutory tax rate | 27.00% | 25.00% | ||
SJG Utility Operations | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income Taxes | 671 | $ 482 | $ 24,368 | $ 22,318 |
Amounts reclassified from AOCL | 8 | $ 16 | ||
Combined statutory tax rate | 27.00% | 25.00% | ||
Postretirement Liability Adjustment | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCL | 0 | $ 0 | ||
Postretirement Liability Adjustment | SJG Utility Operations | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCL | 0 | 0 | ||
Unrealized Gain (Loss) on Derivatives-Other | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCL | 8 | 16 | ||
Unrealized Gain (Loss) on Derivatives-Other | SJG Utility Operations | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amounts reclassified from AOCL | 8 | 16 | ||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Investment Gain (Loss) Attributable to Noncontrolling Interest | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income Taxes | (4) | (8) | ||
Amounts reclassified from AOCL | 8 | 16 | ||
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gain (Loss) on Derivatives-Other | SJG Utility Operations | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income Taxes | (4) | (8) | ||
Amounts reclassified from AOCL | 8 | 16 | ||
Interest Charges | Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Investment Gain (Loss) Attributable to Noncontrolling Interest | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Unrealized Loss on Derivatives-Other - interest rate contracts designated as cash flow hedges | 12 | 24 | ||
Interest Charges | Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gain (Loss) on Derivatives-Other | 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 | $ 12 | $ 24 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Utility | $ 231,840 | $ 201,854 | $ 838,517 | $ 645,833 |
SJG Utility Operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | $ 47,000 | $ 64,100 | $ 280,000 | $ 258,000 |
REVENUE - Disaggregated Revenue
REVENUE - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Utility | $ 231,840 | $ 201,854 | $ 838,517 | $ 645,833 |
Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 59,826 | 50,824 | 350,862 | 206,702 |
Commercial & Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 167,633 | 149,519 | 478,120 | 431,753 |
OSS & Capacity Release | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 2,244 | 972 | 4,014 | 6,176 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 2,137 | 539 | 5,521 | 1,202 |
Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 203,380 | 153,639 | 782,992 | 550,091 |
Electric | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 13,188 | 26,809 | 28,392 | 55,187 |
Solar | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 6,438 | 12,126 | 9,014 | 21,434 |
CHP | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 6,794 | 7,161 | 14,153 | 15,014 |
Landfills | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 1,556 | 1,668 | 2,951 | 3,136 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 484 | 451 | 1,015 | 971 |
Wholesale Energy Operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 111,794 | 76,376 | 311,561 | 250,222 |
Wholesale Energy Operations | Commercial & Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 111,794 | 76,376 | 311,561 | 250,222 |
Wholesale Energy Operations | Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 111,794 | 76,376 | 311,561 | 250,222 |
Retail Gas and Other Operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 15,121 | 48,367 | ||
Retail Gas and Other Operations | Commercial & Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 15,121 | 48,367 | ||
Retail Gas and Other Operations | Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 15,121 | 48,367 | ||
Retail Electric Operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 15,372 | 28,821 | 32,183 | 58,867 |
Retail Electric Operations | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 2,953 | 6,391 | 6,761 | 14,487 |
Retail Electric Operations | Commercial & Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 12,419 | 22,430 | 25,422 | 44,380 |
Retail Electric Operations | Electric | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 15,372 | 28,821 | 32,183 | 58,867 |
On-Site Energy Production | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 14,788 | 24,734 | 26,118 | 45,891 |
On-Site Energy Production | Commercial & Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 14,788 | 24,734 | 26,118 | 45,891 |
On-Site Energy Production | Solar | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 6,438 | 15,905 | 9,014 | 27,741 |
On-Site Energy Production | CHP | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 6,794 | 7,161 | 14,153 | 15,014 |
On-Site Energy Production | Landfills | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 1,556 | 1,668 | 2,951 | 3,136 |
Appliance Service Operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 484 | 451 | 1,015 | 971 |
Appliance Service Operations | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 484 | 451 | 1,015 | 971 |
Appliance Service Operations | Commercial & Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 0 | |||
Appliance Service Operations | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 484 | 451 | 1,015 | 971 |
Corporate Services and Intersegment | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | (3,418) | (7,705) | (6,425) | (16,475) |
Corporate Services and Intersegment | Commercial & Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | (3,418) | (7,705) | (6,425) | (16,475) |
Corporate Services and Intersegment | Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | (1,234) | (1,914) | (2,634) | (6,488) |
Corporate Services and Intersegment | Electric | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | (2,184) | (2,012) | (3,791) | (3,680) |
Corporate Services and Intersegment | Solar | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 0 | (3,779) | 0 | (6,307) |
SJG Utility Operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 47,000 | 64,100 | 280,000 | 258,000 |
SJG Utility Operations | Utility Operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 46,997 | 64,056 | 279,981 | 257,990 |
SJG Utility Operations | Utility Operations | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 28,679 | 43,982 | 213,633 | 191,244 |
SJG Utility Operations | Utility Operations | Commercial & Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 15,503 | 18,563 | 61,091 | 59,368 |
SJG Utility Operations | Utility Operations | OSS & Capacity Release | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 2,244 | 972 | 4,014 | 6,176 |
SJG Utility Operations | Utility Operations | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 571 | 539 | 1,243 | 1,202 |
SJG Utility Operations | Utility Operations | Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 46,997 | $ 64,056 | 279,981 | $ 257,990 |
ETG Utility Operations | Utility Operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 45,095 | 189,879 | ||
ETG Utility Operations | Utility Operations | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 27,503 | 127,492 | ||
ETG Utility Operations | Utility Operations | Commercial & Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 16,065 | 58,213 | ||
ETG Utility Operations | Utility Operations | OSS & Capacity Release | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 0 | |||
ETG Utility Operations | Utility Operations | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 1,527 | 4,174 | ||
ETG Utility Operations | Utility Operations | Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 45,095 | 189,879 | ||
ELK Utility Operations | Utility Operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 728 | 4,205 | ||
ELK Utility Operations | Utility Operations | Residential | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 207 | 1,961 | ||
ELK Utility Operations | Utility Operations | Commercial & Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 482 | 2,140 | ||
ELK Utility Operations | Utility Operations | OSS & Capacity Release | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 0 | |||
ELK Utility Operations | Utility Operations | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | 39 | 104 | ||
ELK Utility Operations | Utility Operations | Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Utility | $ 728 | $ 4,205 |
REVENUE - Accounts Receivable (
REVENUE - Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Disaggregation of Revenue [Line Items] | ||||
Accounts Receivable | $ 223,314 | $ 337,502 | $ 196,601 | $ 202,379 |
Unbilled Revenues | 21,253 | 79,538 | 24,464 | 73,377 |
SJG Utility Operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Accounts Receivable | 90,190 | 101,572 | 16,849 | 78,571 |
Unbilled Revenues | 8,415 | $ 43,271 | (45,259) | $ 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 | (114,188) | (5,778) | ||
Unbilled Revenues | (58,285) | (48,913) | ||
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 | (11,382) | 95,420 | ||
Unbilled Revenues | $ (34,856) | $ 9,721 |
BUSINESS COMBINATION (Details)
BUSINESS COMBINATION (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Oct. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||||
Payments to acquire businesses | $ 1,720,000 | ||||
Working capital adjustment | 24,700 | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||
Property, Plant and Equipment | 1,202,435 | ||||
Accounts Receivable | 45,875 | ||||
Provision for Uncollectibles | (6,579) | ||||
Natural Gas in Storage | 12,204 | ||||
Materials and Supplies | 345 | ||||
Other Prepayments and Current Assets | 200 | ||||
Deferred Income Taxes | 39,470 | ||||
Regulatory Assets | 136,212 | ||||
Goodwill | 700,286 | $ 703,864 | $ 703,864 | $ 734,607 | |
Total assets acquired | 2,130,448 | ||||
Accounts Payable | 13,089 | ||||
Other Current Liabilities | 9,185 | ||||
Environmental Remediation Costs - Current | 7,100 | ||||
Pension and Other Postretirement Benefits | 3,213 | ||||
Environmental Remediation Costs - Non Current | 66,165 | ||||
Regulatory Liabilities | 192,811 | ||||
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Asset Retirement Obligation | 113,093 | ||||
Other | 1,107 | ||||
Total liabilities assumed | 405,763 | ||||
Total net assets acquired | 1,724,685 | ||||
Goodwill deductible for tax purposes | 700,300 | 599,700 | 599,700 | ||
ETG and ELK revenues included in the Company's unaudited consolidated statements of income | 45,800 | 189,300 | |||
ETG and ELK earnings included in the Company's unaudited consolidated statements of income | $ (3,900) | $ 27,400 | |||
ETG Utility Operations | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire businesses | 1,710,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||
Credits due to customers under conditions of approval | 15,000 | ||||
ELK Utility Operations | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire businesses | 10,900 | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||
Credits due to customers under conditions of approval | $ 300 | ||||
ETG Utility Operations | New Jersey Board of Public Utilities | |||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |||||
Requested recovery of investment costs not yet approved | $ 300,000 |
GOODWILL AND IDENTIFIABLE INT_3
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Jul. 01, 2018 | |
Goodwill [Line Items] | ||||||
Goodwill | $ 703,864,000 | $ 703,864,000 | $ 734,607,000 | $ 700,286,000 | ||
Identifiable intangible assets | 25,100,000 | 25,100,000 | 28,100,000 | |||
Impairment of intangible assets (excluding goodwill) | 0 | $ 0 | 0 | $ 0 | ||
Business Acquisition, Provisional Accounting Incomplete, Adjustment, Working Capital Settlement | $ (15,600,000) | |||||
Goodwill, Purchase Accounting Adjustments | 15,143,000 | |||||
Minimum | ||||||
Goodwill [Line Items] | ||||||
Useful life of finite-lived intangible assets | 2 years | |||||
Maximum | ||||||
Goodwill [Line Items] | ||||||
Useful life of finite-lived intangible assets | 20 years | |||||
ETG Utility Operations | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 700,200,000 | $ 700,200,000 | $ 730,900,000 | |||
On-Site Energy Production | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 3,600,000 | 3,600,000 | ||||
ELK Utility Operations | ||||||
Goodwill [Line Items] | ||||||
Goodwill | $ 100,000 | $ 100,000 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jan. 01, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Percentage of operating leases which are real estate leases | 77.00% | ||
Operating lease right of use asset | $ 2,700 | $ 2,700 | $ 3,100 |
Operating lease, liability | 2,294 | 2,294 | 3,100 |
Operating lease cost | 800 | 1,600 | |
Operating lease payments due | 400 | 800 | |
Variable lease cost | $ 400 | $ 800 | |
Weighted-average remaining lease term - operating leases | 2 years 6 months | 2 years 6 months | |
Weighted-average discount rate - operating leases | 3.00% | 3.00% | |
Real Estate | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, liability | $ 1,800 | $ 1,800 | |
Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, liability | 400 | 400 | |
Vehicles | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, liability | $ 100 | $ 100 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Renewal term of operating lease | 1 year | 1 year | |
Minimum | Real Estate | |||
Lessee, Lease, Description [Line Items] | |||
Term of operating lease | 5 years | 5 years | |
Minimum | Property, Plant and Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Term of operating lease | 3 years | 3 years | |
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Renewal term of operating lease | 5 years | 5 years | |
Maximum | Real Estate | |||
Lessee, Lease, Description [Line Items] | |||
Term of operating lease | 15 years | 15 years | |
Maximum | Property, Plant and Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Term of operating lease | 25 years | 25 years | |
SJG Utility Operations | |||
Lessee, Lease, Description [Line Items] | |||
Percentage of operating leases which are real estate leases | 35.00% | ||
Operating lease right of use asset | $ 400 | $ 400 | 500 |
Operating lease, liability | 398 | 398 | $ 500 |
Operating lease cost | 100 | 200 | |
Operating lease payments due | $ 100 | $ 200 | |
Weighted-average remaining lease term - operating leases | 6 years 7 months 6 days | 6 years 7 months 6 days | |
Weighted-average discount rate - operating leases | 3.00% | 3.00% | |
SJG Utility Operations | Real Estate | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, liability | $ 100 | $ 100 | |
SJG Utility Operations | Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, liability | $ 300 | $ 300 |
LEASES - Lease Maturity and Bal
LEASES - Lease Maturity and Balance Sheet Information (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 |
SJI Consolidated | ||
2019 (excluding the six months ended June 30, 2019) | $ 850 | |
2020 | 1,080 | |
2021 | 233 | |
2022 | 65 | |
2023 | 34 | |
Thereafter | 114 | |
Total future minimum lease payments | 2,376 | |
Less imputed interest | 82 | |
Total lease payments | 2,294 | $ 3,100 |
Included in the condensed consolidated balance sheet | ||
Current lease liabilities (included in Other Current Liabilities) | 1,519 | |
Long-term lease liabilities (included in Other Noncurrent Liabilities) | 775 | |
SJG Utility Operations | ||
SJI Consolidated | ||
2019 (excluding the six months ended June 30, 2019) | 91 | |
2020 | 152 | |
2021 | 39 | |
2022 | 21 | |
2023 | 19 | |
Thereafter | 114 | |
Total future minimum lease payments | 436 | |
Less imputed interest | 38 | |
Total lease payments | 398 | $ 500 |
Included in the condensed consolidated balance sheet | ||
Current lease liabilities (included in Other Current Liabilities) | 169 | |
Long-term lease liabilities (included in Other Noncurrent Liabilities) | $ 229 |
LEASES - Contractual Obligation
LEASES - Contractual Obligation of Leases Under Previous Guidance (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leased Assets [Line Items] | |
Total | $ 1,885 |
Up to 1 year | 838 |
Years 2&3 | 916 |
Years 4&5 | 131 |
More than 5 years | 0 |
SJG | |
Operating Leased Assets [Line Items] | |
Total | 175 |
Up to 1 year | 56 |
Years 2&3 | 112 |
Years 4&5 | 7 |
More than 5 years | $ 0 |
LEASES - Lessor Information (De
LEASES - Lessor Information (Details) - Marina - Thermal Energy Generating Property and Equipment - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Lessor, Lease, Description [Line Items] | ||
Carrying costs of property and equipment under operating lease | $ 69.9 | $ 71.5 |
Accumulated depreciation on property and equipment subject to operating lease | $ 39.3 | $ 37.7 |
LEASES - Minimum Future Rentals
LEASES - Minimum Future Rentals to be Received (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2019 (remaining six months) | $ 2,698 |
2020 | 5,396 |
2021 | 5,396 |
2022 | 5,396 |
2023 | 5,396 |
2024 | 5,396 |
Thereafter | 13,042 |
Total minimum future rentals | $ 42,720 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) | Jun. 30, 2019contract |
Pricing dispute, long-term gas supply contract | |
Subsequent Event [Line Items] | |
Number of long-term gas supply contracts | 2 |