[X]
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
[
]
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
New
Jersey
|
22-1901645
|
(State
of incorporation)
|
(IRS
employer identification no.)
|
Common
Stock
|
|
($1.25
par value per share)
|
New
York Stock Exchange
|
(Title
of each class)
|
(Name
of exchange on which registered)
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
|
||||||||
(In
Thousands Except for Per Share Data)
|
||||||||
Three
Months Ended
|
||||||||
June
30,
|
||||||||
2008
|
2007
|
|||||||
Operating
Revenues:
|
||||||||
Utility
|
$ | 93,163 | $ | 92,404 | ||||
Nonutility
|
42,677 | 79,256 | ||||||
Total
Operating Revenues
|
135,840 | 171,660 | ||||||
Operating
Expenses:
|
||||||||
Cost
of Sales - (Excluding depreciation)
|
||||||||
-
Utility
|
59,855 | 60,255 | ||||||
-
Nonutility
|
63,875 | 60,349 | ||||||
Operations
|
18,888 | 16,628 | ||||||
Maintenance
|
1,635 | 1,430 | ||||||
Depreciation
|
7,238 | 6,891 | ||||||
Energy
and Other Taxes
|
2,116 | 2,220 | ||||||
Total
Operating Expenses
|
153,607 | 147,773 | ||||||
Operating
(Loss) Income
|
(17,767 | ) | 23,887 | |||||
Other
Income and Expense
|
458 | 517 | ||||||
Interest
Charges
|
(5,487 | ) | (6,188 | ) | ||||
(Loss)
Income Before Income Taxes
|
(22,796 | ) | 18,216 | |||||
Income
Taxes
|
9,286 | (7,622 | ) | |||||
Equity
in Earnings of Affiliated Companies
|
229 | 216 | ||||||
(Loss)
Income from Continuing Operations
|
(13,281 | ) | 10,810 | |||||
Loss
from Discontinued Operations - (Net of tax benefit)
|
(1 | ) | (55 | ) | ||||
Net
(Loss) Income
|
$ | (13,282 | ) | $ | 10,755 | |||
Basic
Earnings Per Common Share:
|
||||||||
Continuing
Operations
|
$ | (0.447 | ) | $ | 0.367 | |||
Discontinued
Operations
|
(0.000 | ) | (0.002 | ) | ||||
Basic
Earnings Per Common Share
|
$ | (0.447 | ) | $ | 0.365 | |||
Average
Shares of Common Stock Outstanding - Basic
|
29,728 | 29,465 | ||||||
Diluted
Earnings Per Common Share:
|
||||||||
Continuing
Operations
|
$ | (0.447 | ) | $ | 0.366 | |||
Discontinued
Operations
|
(0.000 | ) | (0.002 | ) | ||||
Diluted
Earnings Per Common Share
|
$ | (0.447 | ) | $ | 0.364 | |||
Average
Shares of Common Stock Outstanding - Diluted
|
29,728 | 29,571 | ||||||
Dividends
Declared per Common Share
|
$ | 0.270 | $ | 0.245 | ||||
The
accompanying notes are an integral part of the unaudited condensed
consolidated financial statements.
|
||||||||
SOUTH
JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
|
||||||||
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
|
||||||||
(In
Thousands Except for Per Share Data)
|
||||||||
Six
Months Ended
|
||||||||
June
30,
|
||||||||
2008
|
2007
|
|||||||
Operating
Revenues:
|
||||||||
Utility
|
$ | 329,575 | $ | 357,688 | ||||
Nonutility
|
154,312 | 182,398 | ||||||
Total
Operating Revenues
|
483,887 | 540,086 | ||||||
Operating
Expenses:
|
||||||||
Cost
of Sales - (Excluding depreciation)
|
||||||||
-
Utility
|
221,280 | 253,220 | ||||||
-
Nonutility
|
169,206 | 150,853 | ||||||
Operations
|
38,882 | 35,536 | ||||||
Maintenance
|
3,487 | 2,902 | ||||||
Depreciation
|
14,425 | 13,902 | ||||||
Energy
and Other Taxes
|
6,982 | 7,304 | ||||||
Total
Operating Expenses
|
454,262 | 463,717 | ||||||
Operating
Income
|
29,625 | 76,369 | ||||||
Other
Income and Expense
|
739 | 882 | ||||||
Interest
Charges
|
(11,501 | ) | (13,157 | ) | ||||
Income
Before Income Taxes
|
18,863 | 64,094 | ||||||
Income
Taxes
|
(7,878 | ) | (26,532 | ) | ||||
Equity
in Earnings of Affiliated Companies
|
446 | 422 | ||||||
Income
from Continuing Operations
|
11,431 | 37,984 | ||||||
Loss
from Discontinued Operations - (Net of tax benefit)
|
(25 | ) | (203 | ) | ||||
Net
Income
|
$ | 11,406 | $ | 37,781 | ||||
Basic
Earnings Per Common Share:
|
||||||||
Continuing
Operations
|
$ | 0.385 | $ | 1.291 | ||||
Discontinued
Operations
|
(0.001 | ) | (0.007 | ) | ||||
Basic
Earnings Per Common Share
|
$ | 0.384 | $ | 1.284 | ||||
Average
Shares of Common Stock Outstanding - Basic
|
29,684 | 29,414 | ||||||
Diluted
Earnings Per Common Share:
|
||||||||
Continuing
Operations
|
$ | 0.383 | $ | 1.286 | ||||
Discontinued
Operations
|
(0.000 | ) | (0.006 | ) | ||||
Diluted
Earnings Per Common Share
|
$ | 0.383 | $ | 1.280 | ||||
Average
Shares of Common Stock Outstanding - Diluted
|
29,809 | 29,527 | ||||||
Dividends
Declared per Common Share
|
$ | 0.540 | $ | 0.490 | ||||
The
accompanying notes are an integral part of the unaudited condensed
consolidated financial statements.
|
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
|
||||||||
(In
Thousands)
|
||||||||
Three
Months Ended
|
||||||||
June
30,
|
||||||||
2008
|
2007
|
|||||||
Net
(Loss) Income
|
$ | (13,282 | ) | $ | 10,755 | |||
Other
Comprehensive Income, Net of Tax:*
|
||||||||
Unrealized
(Loss) Gain on Available-for-Sale Securities
|
(42 | ) | 114 | |||||
Unrealized
Gain on Derivatives - Other
|
1,298 | 1,342 | ||||||
Unrealized
Gain (Loss) on Derivatives - Other from Affiliated
Companies
|
2,124 | (66 | ) | |||||
Other
Comprehensive Income - Net of Tax*
|
3,380 | 1,390 | ||||||
Comprehensive
(Loss) Income
|
$ | (9,902 | ) | $ | 12,145 | |||
Six
Months Ended
|
||||||||
June
30,
|
||||||||
2008
|
2007
|
|||||||
Net
Income
|
$ | 11,406 | $ | 37,781 | ||||
Other
Comprehensive Income, Net of Tax:*
|
||||||||
Unrealized
(Loss) Gain on Available-for-Sale Securities
|
(280 | ) | 180 | |||||
Unrealized
Gain on Derivatives - Other
|
519 | 1,407 | ||||||
Unrealized
Gain (Loss) on Derivatives - Other from Affiliated
Companies
|
193 | (66 | ) | |||||
Other
Comprehensive Income - Net of Tax*
|
432 | 1,521 | ||||||
Comprehensive
Income
|
$ | 11,838 | $ | 39,302 | ||||
*
Determined using a combined statutory tax rate of 41.08%.
|
||||||||
The
accompanying notes are an integral part of the unaudited condensed
consolidated financial statements.
|
||||||||
SOUTH
JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
|
||||||||
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
||||||||
(In
Thousands)
|
||||||||
Six
Months Ended
|
||||||||
June
30,
|
||||||||
2008
|
2007
|
|||||||
Net
Cash Provided by Operating Activities
|
$ | 86,315 | $ | 112,384 | ||||
Cash
Flows from Investing Activities:
|
||||||||
Capital
Expenditures
|
(28,134 | ) | (27,745 | ) | ||||
Net
(Purchase) Proceeds from Sale of Restricted Investments in Margin
Account
|
(21,157 | ) | 10,404 | |||||
Purchase
of Restricted Investments with Escrowed Loan Proceeds
|
(54 | ) | (313 | ) | ||||
Merchandise
Loans
|
(1,583 | ) | (1,670 | ) | ||||
Proceeds
from Merchandise Loans
|
1,891 | 2,090 | ||||||
Purchase
of Company Owned Life Insurance
|
(3,722 | ) | (3,722 | ) | ||||
Investment
in Affiliate
|
(87 | ) | (2,137 | ) | ||||
Advances
on Notes Receivable - Affiliate
|
(1,200 | ) | - | |||||
Net
Cash Used in Investing Activities
|
(54,046 | ) | (23,093 | ) | ||||
Cash
Flows from Financing Activities:
|
||||||||
Net
Repayments of Lines of Credit
|
(4,090 | ) | (85,675 | ) | ||||
Principal
Repayments of Long-Term Debt
|
(25,052 | ) | (2,319 | ) | ||||
Dividends
on Common Stock
|
(8,016 | ) | (7,208 | ) | ||||
Proceeds
from Sale of Common Stock
|
2,076 | 3,098 | ||||||
Net
Cash Used in Financing Activities
|
(35,082 | ) | (92,104 | ) | ||||
Net
Decrease in Cash and Cash Equivalents
|
(2,813 | ) | (2,813 | ) | ||||
Cash
and Cash Equivalents at Beginning of Period
|
11,678 | 7,932 | ||||||
Cash
and Cash Equivalents at End of Period
|
$ | 8,865 | $ | 5,119 | ||||
The
accompanying notes are an integral part of the unaudited condensed
consolidated financial statements.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
||||||||
(In
Thousands)
|
||||||||
June
30,
|
December
31,
|
|||||||
2008
|
2007
|
|||||||
Assets
|
||||||||
Property,
Plant and Equipment:
|
||||||||
Utility
Plant, at original cost
|
$ | 1,144,044 | $ | 1,123,992 | ||||
Accumulated
Depreciation
|
(285,386 | ) | (276,301 | ) | ||||
Nonutility
Property and Equipment, at cost
|
118,228 | 112,971 | ||||||
Accumulated
Depreciation
|
(13,570 | ) | (11,793 | ) | ||||
Property,
Plant and Equipment - Net
|
963,316 | 948,869 | ||||||
Investments:
|
||||||||
Available-for-Sale
Securities
|
6,234 | 6,734 | ||||||
Restricted
|
27,672 | 6,460 | ||||||
Investment
in Affiliates
|
2,107 | 1,694 | ||||||
Total
Investments
|
36,013 | 14,888 | ||||||
Current
Assets:
|
||||||||
Cash
and Cash Equivalents
|
8,865 | 11,678 | ||||||
Accounts
Receivable
|
149,402 | 111,899 | ||||||
Unbilled
Revenues
|
9,560 | 48,304 | ||||||
Provision
for Uncollectibles
|
(5,358 | ) | (5,491 | ) | ||||
Natural
Gas in Storage, average cost
|
113,756 | 123,790 | ||||||
Materials
and Supplies, average cost
|
3,175 | 2,777 | ||||||
Deferred
Income Taxes - Net
|
4,160 | - | ||||||
Prepaid
Taxes
|
19,379 | 6,878 | ||||||
Derivatives
- Energy Related Assets
|
42,556 | 23,270 | ||||||
Other
Prepayments and Current Assets
|
6,690 | 5,225 | ||||||
Total
Current Assets
|
352,185 | 328,330 | ||||||
Regulatory
and Other Noncurrent Assets:
|
||||||||
Regulatory
Assets
|
187,053 | 188,688 | ||||||
Prepaid
Pension
|
7,328 | 1,970 | ||||||
Derivatives
- Energy Related Assets
|
9,262 | 10,941 | ||||||
Unamortized
Debt Issuance Costs
|
7,124 | 7,386 | ||||||
Notes
Receivable - Affiliate
|
1,200 | - | ||||||
Contract
Receivables
|
12,661 | 13,220 | ||||||
Other
|
18,727 | 15,149 | ||||||
Total
Regulatory and Other Noncurrent Assets
|
243,355 | 237,354 | ||||||
Total
Assets
|
$ | 1,594,869 | $ | 1,529,441 | ||||
The
accompanying notes are an integral part of the unaudited condensed
consolidated financial statements.
|
SOUTH
JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
|
||||||||
CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
||||||||
(In
Thousands)
|
||||||||
June
30,
|
December
31,
|
|||||||
2008
|
2007
|
|||||||
Capitalization and
Liabilities
|
||||||||
Common
Equity:
|
||||||||
Common
Stock
|
$ | 37,161 | $ | 37,010 | ||||
Premium
on Common Stock
|
251,024 | 248,449 | ||||||
Treasury
Stock (at par)
|
(181 | ) | (187 | ) | ||||
Accumulated
Other Comprehensive Loss
|
(9,883 | ) | (10,315 | ) | ||||
Retained
Earnings
|
201,486 | 206,123 | ||||||
Total
Common Equity
|
479,607 | 481,080 | ||||||
Long-Term
Debt
|
332,845 | 357,896 | ||||||
Total
Capitalization
|
812,452 | 838,976 | ||||||
Minority
Interest
|
1,314 | 440 | ||||||
Current
Liabilities:
|
||||||||
Notes
Payable
|
114,200 | 118,290 | ||||||
Current
Maturities of Long-Term Debt
|
106 | 106 | ||||||
Accounts
Payable
|
138,497 | 101,154 | ||||||
Customer
Deposits and Credit Balances
|
18,809 | 18,475 | ||||||
Margin
Account Liability
|
- | 4,112 | ||||||
Environmental
Remediation Costs
|
18,233 | 25,827 | ||||||
Taxes
Accrued
|
10,261 | 5,310 | ||||||
Derivatives
- Energy Related Liabilities
|
56,956 | 13,735 | ||||||
Deferred
Income Taxes - Net
|
- | 20,251 | ||||||
Deferred
Contract Revenues
|
4,508 | 5,231 | ||||||
Dividends
Payable
|
8,027 | - | ||||||
Interest
Accrued
|
6,323 | 6,657 | ||||||
Pension
and Other Postretirement Benefits
|
841 | 805 | ||||||
Other
Current Liabilities
|
7,291 | 8,358 | ||||||
Total
Current Liabilities
|
384,052 | 328,311 | ||||||
Deferred
Credits and Other Noncurrent Liabilities:
|
||||||||
Deferred
Income Taxes - Net
|
183,350 | 175,686 | ||||||
Investment
Tax Credits
|
1,991 | 2,150 | ||||||
Pension
and Other Postretirement Benefits
|
28,677 | 29,036 | ||||||
Environmental
Remediation Costs
|
46,348 | 52,078 | ||||||
Asset
Retirement Obligations
|
23,951 | 24,604 | ||||||
Derivatives
- Energy Related Liabilities
|
13,814 | 4,190 | ||||||
Derivatives
- Other
|
2,346 | 2,484 | ||||||
Regulatory
Liabilities
|
81,478 | 55,779 | ||||||
Other
|
15,096 | 15,707 | ||||||
Total
Deferred Credits
|
||||||||
and
Other Noncurrent Liabilities
|
397,051 | 361,714 | ||||||
Commitments
and Contingencies (Note 12)
|
||||||||
Total
Capitalization and Liabilities
|
$ | 1,594,869 | $ | 1,529,441 | ||||
The
accompanying notes are an integral part of the unaudited condensed
consolidated financial statements.
|
|
▪
|
South
Jersey Gas Company (SJG) is a regulated natural gas utility. SJG
distributes natural gas in the seven southernmost counties of New
Jersey.
|
|
▪
|
South
Jersey Resources Group, LLC (SJRG) markets wholesale natural gas storage,
commodity and transportation in the mid-Atlantic and southern
states.
|
|
▪
|
Marina
Energy, LLC (Marina) develops and operates on-site energy-related
projects.
|
|
▪
|
South
Jersey Energy Company (SJE) acquires and markets natural gas and
electricity to retail end users and provides total energy management
services to commercial and industrial
customers.
|
|
▪
|
South
Jersey Energy Service Plus, LLC (SJESP) installs residential and small
commercial HVAC systems, provides plumbing services and services
appliances via the sale of appliance service
programs.
|
·
|
Cash
flows related to merchandise loans to customers for the purpose of
attracting conversions to natural gas heating systems should have been
classified under the caption Cash Flows from Investing Activities on the
statements of condensed consolidated cash flows. Accordingly, cash
outflows for loans originated of $1.7 million and cash inflows
from the principal collection on these loans of $2.1 million during the
six months ended June 30, 2007 are now included within Cash Flows
from Investing Activities. The overall net impact resulted in an
insignificant amount of Cash Flows from Operating Activities for the six
months ended June 30, 2007 now being included within Cash Flows from
Investing Activities.
|
·
|
Cash
flows related to unused loan proceeds that are held in restricted escrow
accounts were incorrectly presented on a net basis with the cash flows
related to the restricted margin account that is used to support the
Company’s risk management activities within Cash Flows from Investing
Activities on the statements of condensed consolidated cash flows.
Accordingly, purchases of restricted investments with unused loan proceeds
of $0.3 million during the six months ended June 30, 2007 is now included
in Purchase of Restricted Investments with Escrowed Loan Proceeds. The
cash flows related to the restricted margin account remain in Net Proceeds
from Sale of Restricted Investments in Margin Account. This change had no
overall impact on total Cash Flows from Investing Activities on the
statements of condensed consolidated cash
flows.
|
Grant
|
Shares
|
Fair
Value
|
Expected
|
Risk-Free
|
||||||
Date
|
Outstanding
|
Per
Share
|
Volatility
|
Interest
Rate
|
||||||
Officers
& Key Employees -
|
Jan.
2006
|
35,310
|
$
|
27.950
|
16.9%
|
4.5%
|
||||
Jan.
2007
|
38,624
|
$
|
29.210
|
18.5%
|
4.9%
|
|||||
Jan.
2008
|
44,479
|
$
|
34.030
|
21.7%
|
2.9%
|
|||||
Directors
-
|
Dec.
2005
|
6,340
|
$
|
29.970
|
-
|
-
|
||||
Dec.
2006
|
9,261
|
$
|
34.020
|
-
|
-
|
|||||
Jan.
2008
|
8,667
|
$
|
36.355
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Officers
& Key Employees
|
$
|
271
|
$
|
250
|
$
|
572
|
$
|
498
|
||||||||
Directors
|
67
|
52
|
134
|
104
|
||||||||||||
Total
Cost
|
338
|
302
|
706
|
602
|
||||||||||||
Capitalized
|
(37
|
)
|
(26
|
)
|
(75
|
)
|
(53
|
)
|
||||||||
Net
Expense
|
$
|
301
|
$
|
276
|
$
|
631
|
$
|
549
|
Officers
& Other
Key
Employees
|
Directors
|
Weighted
Average
Grant
Date
Fair
Value
|
||||||
Nonvested
Shares Outstanding, January 1, 2008
|
110,968
|
15,601
|
$
|
28.136
|
||||
Granted
|
45,241
|
8,667
|
34.404
|
|||||
Vested*
|
(34,311
|
)
|
-
|
25.155
|
||||
Forfeited
|
(3,485
|
)
|
-
|
29.801
|
||||
Nonvested
Shares Outstanding, June 30, 2008
|
118,413
|
24,268
|
$
|
31.181
|
||||
*
Actual shares awarded to officers upon vesting, including dividend
equivalents and adjustments for performance measures totaled 51,838
shares.
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Loss
before Income Taxes:
|
||||||||||||||||
Sand
Mining
|
$
|
(25
|
)
|
$
|
(63
|
)
|
$
|
(51
|
) |
$
|
(280
|
)
|
||||
Fuel
Oil
|
23
|
(8
|
)
|
12
|
(19
|
)
|
||||||||||
Income
Tax Benefits
|
1
|
16
|
14
|
96
|
||||||||||||
Loss
from Discontinued Operations — Net
|
$
|
(1
|
) |
$
|
(55
|
)
|
$
|
(25
|
) |
$
|
(203
|
)
|
||||
Earnings
Per Common Share from
|
||||||||||||||||
Discontinued
Operations — Net:
|
||||||||||||||||
Basic
|
$
|
(0.000
|
) |
$
|
(0.002
|
)
|
$
|
(0.001
|
) |
$
|
(0.007
|
)
|
||||
Diluted
|
$
|
(0.000
|
) |
$
|
(0.002
|
)
|
$
|
(0.000
|
) |
$
|
(0.006
|
)
|
2008
|
||||
Beginning
Balance, January 1
|
29,607,802
|
|||
New
Issues During Period:
|
||||
Dividend
Reinvestment Plan
|
60,390
|
|||
Stock-Based
Compensation Plan
|
60,505
|
|||
Ending
Balance, June 30
|
29,728,697
|
5.
|
|
RESTRICTED
INVESTMENTS:
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
||||||||||||||||
2008
|
2007
|
2008
|
2007
|
||||||||||||||
Operating
Revenues:
|
|||||||||||||||||
Gas
Utility Operations
|
$
|
93,571
|
$
|
95,995
|
$
|
331,475
|
$
|
373,859
|
|||||||||
Wholesale
Gas Operations
|
(29,867
|
)
|
15,789
|
(3,603
|
)
|
36,883
|
|||||||||||
Retail
Gas and Other Operations
|
43,588
|
40,016
|
100,965
|
98,733
|
|||||||||||||
Retail
Electric Operations
|
17,304
|
13,133
|
33,563
|
25,577
|
|||||||||||||
On-Site
Energy Production
|
12,206
|
9,458
|
22,969
|
19,182
|
|||||||||||||
Appliance
Service Operations
|
4,239
|
3,728
|
9,209
|
7,696
|
|||||||||||||
Corporate
& Services
|
4,528
|
3,403
|
8,996
|
6,786
|
|||||||||||||
Subtotal
|
145,569
|
181,522
|
503,574
|
568,716
|
|||||||||||||
Intersegment
Sales
|
(9,729
|
)
|
(9,862
|
)
|
(19,687
|
)
|
(28,630
|
)
|
|||||||||
Total
Operating Revenues
|
$
|
135,840
|
$
|
171,660
|
$
|
483,887
|
$
|
540,086
|
|||||||||
Operating
(Loss) Income:
|
|||||||||||||||||
Gas
Utility Operations
|
$
|
10,081
|
$
|
11,176
|
$
|
57,429
|
$
|
57,447
|
|||||||||
Wholesale
Gas Operations
|
(31,641
|
)
|
9,638
|
(37,648
|
)
|
13,305
|
|||||||||||
Retail
Gas and Other Operations
|
107
|
251
|
1,989
|
(56
|
)
|
||||||||||||
Retail
Electric Operations
|
576
|
822
|
1,037
|
1,377
|
|||||||||||||
On-Site
Energy Production
|
2,502
|
2,119
|
4,936
|
4,124
|
|||||||||||||
Appliance
Service Operations
|
32
|
(274
|
)
|
1,028
|
(71
|
)
|
|||||||||||
Corporate
and Services
|
576
|
155
|
854
|
243
|
|||||||||||||
Total
Operating (Loss) Income
|
$
|
(17,767
|
)
|
$
|
23,887
|
$
|
29,625
|
$
|
76,369
|
||||||||
Depreciation
and Amortization:
|
|||||||||||||||||
Gas
Utility Operations
|
$
|
7,762
|
$
|
7,234
|
$
|
15,479
|
$
|
14,446
|
|||||||||
Wholesale
Gas Operations
|
15
|
20
|
31
|
36
|
|||||||||||||
Retail
Gas and Other Operations
|
5
|
3
|
9
|
5
|
|||||||||||||
Appliance
Services Operations
|
77
|
70
|
154
|
132
|
|||||||||||||
On-Site
Energy Production
|
753
|
719
|
1,505
|
1,501
|
|||||||||||||
Corporate
and Services
|
104
|
64
|
201
|
121
|
|||||||||||||
Total Depreciation
and Amortization
|
$
|
8,716
|
$
|
8,110
|
$
|
17,379
|
$
|
16,241
|
|||||||||
Interest
Expense:
|
|||||||||||||||||
Gas
Utility Operations
|
$
|
4,618
|
$
|
4,792
|
$
|
9,593
|
$
|
10,032
|
|||||||||
Wholesale
Gas Operations
|
62
|
444
|
206
|
1,195
|
|||||||||||||
Retail
Gas and Other Operations
|
32
|
32
|
108
|
136
|
|||||||||||||
On-Site
Energy Production
|
779
|
918
|
1,610
|
1,794
|
|||||||||||||
Corporate
and Services
|
244
|
766
|
625
|
1,870
|
|||||||||||||
Subtotal
|
5,735
|
6,952
|
12,142
|
15,027
|
|||||||||||||
Intersegment
Borrowings
|
(248
|
)
|
(764
|
)
|
(641
|
)
|
(1,870
|
)
|
|||||||||
Total
Interest Expense
|
$
|
5,487
|
$
|
6,188
|
$
|
11,501
|
$
|
13,157
|
|||||||||
Property
Additions:
|
|||||||||||||||||
Gas
Utility Operations
|
$
|
12,136
|
$
|
12,744
|
$
|
23,271
|
$
|
24,293
|
|||||||||
Wholesale
Gas Operations
|
-
|
-
|
3,338
|
-
|
|||||||||||||
Retail
Gas and Other Operations
|
-
|
22
|
-
|
31
|
|||||||||||||
Appliance
Service Operations
|
18
|
116
|
20
|
144
|
|||||||||||||
On-Site
Energy Production
|
1,012
|
1,652
|
1,241
|
3,400
|
|||||||||||||
Corporate
and Services
|
342
|
446
|
708
|
653
|
|||||||||||||
Total
Property Additions
|
$
|
13,508
|
$
|
14,980
|
$
|
28,578
|
$
|
28,521
|
June
30,
2008
|
December
31,
2007
|
|||||||
Identifiable
Assets:
|
||||||||
Gas
Utility Operations
|
$
|
1,237,860
|
$
|
1,227,162
|
||||
Wholesale
Gas Operations
|
170,163
|
142,848
|
||||||
Retail
Gas and Other Operations
|
42,293
|
42,735
|
||||||
Retail
Electric Operations
|
11,856
|
7,082
|
||||||
On-Site
Energy Production
|
125,994
|
124,982
|
||||||
Appliance
Service Operations
|
16,325
|
16,060
|
||||||
Discontinued
Operations
|
2,164
|
2,604
|
||||||
Corporate
and Services
|
62,850
|
58,274
|
||||||
Subtotal
|
1,669,505
|
1,621,747
|
||||||
Intersegment
Assets
|
(74,636
|
)
|
(92,306
|
)
|
||||
Total
Identifiable Assets
|
$
|
1,594,869
|
$
|
1,529,441
|
June
30,
2008
|
December
31,
2007
|
|||||||
Environmental
Remediation Costs:
|
||||||||
Expended
- Net
|
$
|
38,605
|
$
|
25,960
|
||||
Liability
for Future Expenditures
|
60,685
|
73,880
|
||||||
Income
Taxes-Flowthrough Depreciation
|
3,218
|
3,707
|
||||||
Deferred
Asset Retirement Obligation Costs
|
21,847
|
21,572
|
||||||
Deferred
Pension and Other Postretirement Benefit Costs
|
32,497
|
32,686
|
||||||
Temperature
Adjustment Clause Receivable
|
1,045
|
6,516
|
||||||
Conservation
Incentive Program Receivable
|
24,471
|
18,173
|
||||||
Societal
Benefit Costs Receivable
|
567
|
2,952
|
||||||
Premium
for Early Retirement of Debt
|
1,289
|
1,370
|
||||||
Other
Regulatory Assets
|
2,829
|
1,872
|
||||||
Total Regulatory Assets |
$
|
187,053
|
$
|
188,688
|
June
30,
2008
|
December
31,
2007
|
|||||||
Excess
Plant Removal Costs
|
$
|
48,776
|
$
|
48,705
|
||||
Liability
for NJCEP
|
1,842
|
2,797
|
||||||
Deferred
Gas Costs and Revenues - Net
|
28,108
|
2,586
|
||||||
Other
|
2,752
|
1,691
|
||||||
Total
Regulatory Liabilities
|
$
|
81,478
|
$
|
55,779
|
Pension
Benefits
|
||||||||||||||||
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Service
Cost
|
$
|
761
|
$
|
722
|
$
|
1,599
|
$
|
1,851
|
||||||||
Interest
Cost
|
2,169
|
1,703
|
4,160
|
4,302
|
||||||||||||
Expected
Return on Plan Assets
|
(2,697
|
)
|
(2,152
|
)
|
(5,209
|
)
|
(5,603
|
)
|
||||||||
Amortizations:
|
||||||||||||||||
Prior
Service Cost
|
74
|
63
|
146
|
164
|
||||||||||||
Actuarial
Loss
|
406
|
442
|
804
|
1,032
|
||||||||||||
Net
Periodic Benefit Cost
|
713
|
778
|
1,500
|
1,746
|
||||||||||||
Capitalized
Benefit Costs
|
(269
|
)
|
(267
|
)
|
(525
|
)
|
(633
|
)
|
||||||||
Total
Net Periodic Benefit Expense
|
$
|
444
|
$
|
511
|
$
|
975
|
$
|
1,113
|
||||||||
Other
Postretirement Benefits
|
||||||||||||||||
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Service
Cost
|
$
|
219
|
$
|
223
|
$
|
484
|
$
|
531
|
||||||||
Interest
Cost
|
741
|
612
|
1,478
|
1,458
|
||||||||||||
Expected
Return on Plan Assets
|
(559
|
)
|
(477
|
)
|
(1,097
|
)
|
(1,137
|
)
|
||||||||
Amortizations:
|
||||||||||||||||
Prior
Service Credits
|
(91
|
)
|
(81
|
)
|
(177
|
)
|
(193
|
)
|
||||||||
Actuarial
Loss
|
188
|
138
|
372
|
329
|
||||||||||||
Net
Periodic Benefit Cost
|
498
|
415
|
1,060
|
988
|
||||||||||||
Capitalized
Benefit Costs
|
(166
|
)
|
(146
|
)
|
(375
|
)
|
(378
|
)
|
||||||||
Total
Net Periodic Benefit Expense
|
$
|
332
|
$
|
269
|
$
|
685
|
$
|
610
|
|
·
|
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.
|
Total
|
Level
1
|
Level
2
|
Level
3
|
|||||||||||||
Assets
|
||||||||||||||||
Available-for-Sale
Securities (A)
|
$
|
6,234
|
$
|
6,234
|
$
|
-
|
$
|
-
|
||||||||
Derivatives
– Energy Related Assets (B)
|
51,818
|
40,937
|
10,881
|
-
|
||||||||||||
$
|
58,052
|
$
|
47,171
|
$
|
10,881
|
$
|
-
|
|||||||||
Liabilities
|
||||||||||||||||
Derivatives
– Energy Related Liabilities (B)
|
$
|
70,770
|
$
|
57,032
|
$
|
13,738
|
$
|
-
|
||||||||
Derivatives
– Other (C)
|
2.346
|
-
|
2,346
|
-
|
||||||||||||
$
|
73,116
|
$
|
57,032
|
$
|
16,084
|
$
|
-
|
|||||||||
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Utility
Throughput –
dth:
|
||||||||||||||||
Firm
Sales -
|
||||||||||||||||
Residential
|
2,748
|
3,232
|
12,931
|
14,513
|
||||||||||||
Commercial
|
829
|
931
|
3,413
|
3,860
|
||||||||||||
Industrial
|
15
|
15
|
90
|
121
|
||||||||||||
Cogeneration
& Electric Generation
|
356
|
131
|
372
|
162
|
||||||||||||
Firm
Transportation -
|
||||||||||||||||
Residential
|
263
|
273
|
1,215
|
1,144
|
||||||||||||
Commercial
|
869
|
1,054
|
3,329
|
3,664
|
||||||||||||
Industrial
|
3,167
|
2,957
|
6,447
|
6,068
|
||||||||||||
Cogeneration
& Electric Generation
|
573
|
713
|
925
|
1,127
|
||||||||||||
Total
Firm Throughput
|
8,820
|
9,306
|
28,722
|
30,659
|
||||||||||||
Interruptible
Sales
|
18
|
28
|
27
|
38
|
||||||||||||
Interruptible
Transportation
|
613
|
728
|
1,525
|
1,379
|
||||||||||||
Off-System
|
1,633
|
3,079
|
5,872
|
9,914
|
||||||||||||
Capacity
Release
|
15,827
|
22,665
|
27,057
|
31,479
|
||||||||||||
Total
Throughput
|
26,911
|
35,806
|
63,203
|
73,469
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Utility
Operating
Revenues:
|
||||||||||||||||
Firm
Sales -
|
||||||||||||||||
Residential
|
$
|
44,043
|
$
|
46,183
|
$
|
187,511
|
$
|
214,255
|
||||||||
Commercial
|
12,613
|
11,069
|
43,799
|
47,647
|
||||||||||||
Industrial
|
1,622
|
1,423
|
5,177
|
5,406
|
||||||||||||
Cogeneration
& Electric Generation
|
4,960
|
1,618
|
5,287
|
2,067
|
||||||||||||
Firm
Transportation -
|
||||||||||||||||
Residential
|
1,611
|
1,214
|
6,080
|
4,788
|
||||||||||||
Commercial
|
2,755
|
2,596
|
10,408
|
9,624
|
||||||||||||
Industrial
|
3,081
|
2,643
|
6,273
|
5,733
|
||||||||||||
Cogeneration
& Electric Generation
|
435
|
552
|
757
|
946
|
||||||||||||
Total
Firm Revenues
|
71,120
|
67,298
|
265,292
|
290,466
|
||||||||||||
Interruptible
Sales
|
269
|
296
|
394
|
436
|
||||||||||||
Interruptible
Transportation
|
371
|
475
|
967
|
938
|
||||||||||||
Off-System
|
18,596
|
24,230
|
58,586
|
76,296
|
||||||||||||
Capacity
Release
|
2,953
|
3,338
|
5,753
|
5,082
|
||||||||||||
Other
|
262
|
359
|
483
|
642
|
||||||||||||
93,571
|
95,996
|
331,475
|
373,860
|
|||||||||||||
Less:
Intercompany Sales
|
408
|
3,592
|
1,900
|
16,172
|
||||||||||||
Total
Utility Operating Revenues
|
93,163
|
92,404
|
329,575
|
357,688
|
Less:
|
||||||||||||||||
Cost
of Sales
|
59,855
|
60,255
|
221,280
|
253,220
|
||||||||||||
Conservation
Recoveries*
|
1,968
|
1,042
|
5,033
|
2,255
|
||||||||||||
RAC
Recoveries*
|
694
|
473
|
1,389
|
945
|
||||||||||||
Revenue Taxes
|
1,252
|
1,399
|
5,042
|
5,433
|
||||||||||||
Utility
Margin
|
$
|
29,394
|
$
|
29,235
|
$
|
96,831
|
$
|
95,835
|
||||||||
Margin:
|
||||||||||||||||
Residential
|
$
|
16,154
|
$
|
17,490
|
$
|
57,136
|
$
|
61,752
|
||||||||
Commercial
and Industrial
|
6,831
|
7,625
|
21,149
|
22,985
|
||||||||||||
Cogeneration
and Electric Generation
|
610
|
620
|
899
|
979
|
||||||||||||
Interruptible
|
16
|
41
|
81
|
98
|
||||||||||||
Off-system
& Capacity Release
|
507
|
599
|
1,588
|
1,590
|
||||||||||||
Other
Revenues
|
563
|
544
|
783
|
826
|
||||||||||||
Margin
Before Weather Normalization & Decoupling
|
24,681
|
26,919
|
81,636
|
88,230
|
||||||||||||
CIP Mechanism
|
4,713
|
2,316
|
15,195
|
7,605
|
||||||||||||
Utility
Margin
|
$
|
29,394
|
$
|
29,235
|
$
|
96,831
|
$
|
95,835
|
||||||||
Degree
Days:
|
471
|
547
|
2,735
|
2,965
|
||||||||||||
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
||||||||||||
2008
|
2007
|
2008
|
2007
|
||||||||||
Net
Income Benefit:
|
|||||||||||||
CIP
– Weather Related
|
$
|
0.4
|
$
|
-
|
$
|
1.6
|
$
|
0.2
|
|||||
CIP
– Usage Related
|
2.4
|
1.4
|
7.4
|
4.2
|
|||||||||
Total
Net Income Benefit
|
$
|
2.8
|
$
|
1.4
|
$
|
9.0
|
$
|
4.4
|
|||||
Weather Compared to 20-Year Average | 14.2% warmer | 0.4% warmer | 8.2% warmer | 0.4% warmer | |||||||||
Weather Compared to Prior Year | 13.9% warmer | 36.4% colder | 7.8% warmer | 15.6% colder |
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||||||||||||
2008
|
2007
|
Change
|
2008
|
2007
|
Change
|
|||||||||||||||||||||
SJRG
Revenue
|
$ | (30.0 | ) | $ | 15.7 | $ | (45.7 | ) | $ | (3.8 | ) | $ | 36.6 | $ | (40.4 | ) | ||||||||||
Add:
Unrealized Losses (Subtract:
Unrealized
Gains
|
43.3 | (10.3 | ) | 53.6 | 69.7 | 9.0 | 60.7 | |||||||||||||||||||
SJRG
Revenue, Excluding Unrealized
Losses
(Gains)
|
$ | 13.3 | $ | 5.4 | $ | 7.9 | $ | 65.9 | $ | 45.6 | $ | 20.3 |
|
·
|
Gross
Margin for SJRG decreased $41.0 million and $50.5 million for the three
and six months ended June 30, 2008, respectively, compared with the same
periods of 2007. Excluding the impact of the net change in unrealized
gains and losses recorded on forward financial contracts as discussed
above, gross margin for SJRG increased $12.6 million and $10.4 million for
the three and six months ended June 30, 2008, respectively, compared with
the same periods of 2007. These increases are mainly due to the
recognition of storage hedge gains and losses – See Operating Revenues –
Nonutility and a refund of previously expensed transportation charges.
Storage assets allow SJRG to lock in the differential between purchasing
natural gas at low current prices and selling equivalent quantities at
higher future prices. Gross margin is generated via seasonal pricing
differentials. Future margins could fluctuate significantly due to the
volatile nature of wholesale gas
prices.
|
|
·
|
Gross
Margin for Marina increased $1.0 million and $1.5 million for the three
and six months ended June 30, 2008, respectively, compared with the same
periods of 2007. These increases are due mainly to higher chilled
water sales – See Operating Revenues - Nonutility. Gross margin as a
percentage of Operating Revenues decreased 3.4 and 2.2 percentage points
for the three and six months ended 2008, respectively, compared with the
same periods of 2007 due mainly to an increase in revenue from
electricity. Sales of electricity to the Borgata earn smaller margins than
chilled and hot water and as a result, an increase in these sales will
lower the margin as a percentage of
revenues.
|
|
·
|
Gross
margin and gross margin as a percentage of Operating Revenues from SJE’s
retail gas sales for the three months ended June 30, 2008 did not change
significantly compared with the same period in 2007. Retail gas margins
increased $1.9 million for the six months ended June 30, 2008 compared
with the same period of 2007. Gross margin as a percentage of Operating
Revenues increased 1.8 percentage points for the six months ended June 30,
2008 compared to the same period in 2007. The increase is due mainly to
the partial recovery of losses from a full requirements customer in
the commercial market that were recognized in 2006. The 2008 margin also
includes the impact of our initiatives to actively capitalize on market
volatility which resulted in securing more attractive spreads particularly
in the first quarter.
|
|
·
|
Gross
margin from SJE’s retail electricity sales during the three and six months
ended June 30, 2008 did not change significantly as compared with the same
periods of 2007. Gross margin as a percentage of Operating Revenues
decreased 2.9 and 2.4 percentage points for the three and six months ended
June 30, 2008, respectively, compared to the same periods of 2007. This
decrease is due mainly to the recovery in the second quarter of 2007 of
previously recorded costs, and the loss of one large high margin customer
in 2008 which was partially offset by the addition of several lower margin
customers and lower transmission
credits.
|
|
·
|
Gross
Margin for SJESP during the three and six months ended June 30, 2008 did
not change significantly as compared with the same periods of 2007. Gross
margin as a percentage of Operating Revenues increased 2.0 and 2.1
percentage points in the three and six months ended June 30, 2008,
respectively, compared to the same periods of 2007. This increase is due
mainly to higher margins from strong installation, time and materials and
heater and air conditioner maintenance contracts sales and impact of
several cost-cutting initiatives.
|
Three
Months Ended
|
Six
Months Ended
|
|||||||
June
30,
|
June
30,
|
|||||||
2008
vs. 2007
|
2008
vs. 2007
|
|||||||
Utility
|
$
|
1,977
|
$
|
3,201
|
||||
Nonutility:
|
||||||||
Wholesale
Gas
|
257
|
513
|
||||||
Retail
Gas and Other
|
(113
|
)
|
(14
|
)
|
||||
Retail
Electricity
|
101
|
55
|
||||||
On-Site
Energy Production
|
557
|
679
|
||||||
Appliance
Service
|
(26
|
)
|
(287
|
)
|
||||
Total
Nonutility
|
776
|
946
|
||||||
Intercompany
Eliminations and Other
|
(493
|
)
|
(801
|
)
|
||||
Total
Operations
|
$
|
2,260
|
$
|
3,346
|
As
of
June
30, 2008
|
As
of
December
31, 2007
|
|||||||
Common
Equity
|
51.8
|
%
|
50.3
|
%
|
||||
Long-Term
Debt
|
35.9
|
37.3
|
||||||
Short-Term
Debt
|
12.3
|
12.4
|
||||||
Total
|
100.0
|
%
|
100.0
|
%
|
|
·
|
In
April 2007, SJI guaranteed certain obligations of LVE Energy Partners, LLC
(LVE), an unconsolidated joint venture in which Marina has a 50% equity
interest. LVE entered into a 25 year contract with a resort
developer to design, build, own and operate a district energy system and
central energy center for a planned resort in Las Vegas,
Nevada. LVE began construction of the facility in 2007 and
expected to provide full energy services upon completion of the
resort in 2010. In August 2008, the developer of the
planned resort announced that it was delaying construction of the project
for nine to twelve months due to a difficult environment in the capital
markets and weak economic conditions. SJI holds a significant variable
interest in LVE but is not the primary beneficiary. SJI has
issued a performance guarantee for up to $180.0 million to the resort
developer to ensure that certain construction milestones relating to the
development of the thermal facility are met. Concurrently, SJI
is the beneficiary of a surety bond purchased by the project’s general
contractor that provides SJI with assurance that construction of the
thermal facility will meet those same milestones. In addition,
SJI has guaranteed the obligations of LVE under certain insurance policies
during the construction period. The maximum amount that SJI
could be obligated for, in the event that LVE does not have sufficient
resources to make deductible payments on future claims under these
insurance policies, is approximately $6.0 million. SJI has also
guaranteed certain performance obligations of LVE under the operating
agreements between LVE and the resort, up to $20 million each year for the
term of the agreement, commencing with the first year of
operations. SJI and the partner in this joint venture have
entered into reimbursement agreements that secure reimbursement for SJI of
a proportionate share of any payments made by SJI on these
guarantees.
|
|
·
|
SJI
has also guaranteed certain obligations of BC Landfill Energy, LLC (BCLE),
an unconsolidated joint venture in which Marina has a 50% equity
interest. BCLE has entered into a 20-year agreement with a
county government to lease and operate a facility that will produce
electricity from landfill methane gas. The facility went online
in the fourth quarter of 2007. Although unlikely, the maximum
amount that SJI could be obligated for, in the event that BCLE does not
meet minimum specified levels of operating performance and no mitigating
action is taken, or is unable to meet certain financial obligations as
they become due, is approximately $4.0 million each year. SJI
and the partner in this joint venture have entered into reimbursement
agreements that secure reimbursement for SJI of a proportionate share of
any payments made by SJI on these guarantees. SJI holds a
variable interest in BCLE but is not the primary
beneficiary.
|
Assets
|
Maturity
|
||||||||||||||||
Source
of
Fair
Value
|
Maturity
<
1 Year
|
Maturity
1 -
3 Years
|
Beyond
3
Years
|
Total
|
|||||||||||||
|
|||||||||||||||||
Prices
Actively Quoted
|
NYMEX
|
$
|
35,051
|
$
|
5,813
|
$
|
-
|
$
|
40,864
|
||||||||
Other
External Sources
|
Basis
|
7,505
|
3,376
|
73
|
10,954
|
||||||||||||
Total
|
$
|
42,556
|
$
|
9,189
|
$
|
73
|
$
|
51,818
|
Maturity
|
|||||||||||||||||
Liabilities
|
Source
of
|
Maturity
|
Maturity
|
Beyond
|
|||||||||||||
Fair
Value
|
<
1 Year
|
1 -
3 Years
|
3
Years
|
Total
|
|||||||||||||
Prices
Actively Quoted
|
NYMEX
|
$
|
45,705
|
$
|
10,815
|
$
|
512
|
$
|
57,032
|
||||||||
Other
External Sources
|
Basis
|
11,251
|
2,430
|
57
|
13,738
|
||||||||||||
Total
|
$
|
56,956
|
$
|
13,245
|
$
|
569
|
$
|
70,770
|
Net
Derivatives — Energy Related Assets, January 1, 2008
|
$
|
16,286
|
||
Contracts
Settled During Six Months Ended June 30, 2008, Net
|
(17,461
|
)
|
||
Other
Changes in Fair Value from Continuing and New Contracts,
Net
|
(17,777
|
)
|
||
Net
Derivatives — Energy Related Liabilities June 30, 2008
|
$
|
(18,952
|
)
|
Amount
|
Fixed
Interest
Rate
|
Start
Date
|
Maturity
|
Type
|
Obligor
|
|||||||
$ | 3,900,000 |
4.795
%
|
12/01/2004
|
12/01/2014
|
Taxable
|
Marina
|
||||||
$ | 8,000,000 |
4.775
%
|
11/12/2004
|
11/12/2014
|
Taxable
|
Marina
|
||||||
$ | 20,000,000 |
4.080
%
|
11/19/2001
|
12/01/2011
|
Tax-exempt
|
Marina
|
||||||
$ | 14,500,000 |
3.905
%
|
03/17/2006
|
01/15/2026
|
Tax-exempt
|
Marina
|
||||||
$ | 500,000 |
3.905
%
|
03/17/2006
|
01/15/2026
|
Tax-exempt
|
Marina
|
||||||
$ | 330,000 |
3.905
%
|
03/17/2006
|
01/15/2026
|
Tax-exempt
|
Marina
|
||||||
$ | 7,100,000 |
4.895
%
|
02/01/2006
|
02/01/2016
|
Taxable
|
Marina
|
||||||
$ | 12,500,000 |
3.430
%
|
12/01/2006
|
02/01/2036
|
Tax-exempt
|
SJG
|
||||||
$ | 12,500,000 |
3.430
%
|
12/01/2006
|
02/01/2036
|
Tax-exempt
|
SJG
|
||||||
Period
|
Total
Number of
Shares Purchased1
|
Average
Price
Paid Per Share1
|
Total
Number of
Shares
Purchased as
Part
of Publicly
Announced
Plans or Programs2
|
Maximum
Number
of Shares that
May
Yet be
Purchased
Under the
Plans or Programs2
|
||||||||||||
April
2008
|
3,909 | $ | 36.90 | - | - | |||||||||||
May
2008
|
8,602 | $ | 38.51 | - | - | |||||||||||
June
2008
|
- | - | - | - | ||||||||||||
Total
|
12,511 | - | - |
(a)
|
Our
annual meeting of shareholders was held on April 18,
2008.
|
|
(b)
|
Class
I directors (with a term expiring 2011) were elected as
follows:
|
For
|
Withheld
|
|||||||
Keith
S. Campbell
|
26,217,712
|
508,265
|
||||||
W.
Cary Edwards
|
26,108,802
|
617,175
|
Exhibit
No.
|
Description
|
31.1
|
Certification
of Chief Executive Officer Pursuant to Rule 13a-14(a) of the Exchange
Act.
|
31.2
|
Certification
of Chief Financial Officer Pursuant to Rule 13a-14(a) of the Exchange
Act.
|
32.1
|
Certification
of Chief Executive Officer Pursuant to Rule 13a-14(b) of the Exchange Act
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United
States Code).
|
32.2
|
Certification
of Chief Financial Officer Pursuant to Rule 13a-14(b) of the Exchange Act
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United
States Code).
|
Dated:
August 8, 2008
|
By:
/s/ Edward J.
Graham
|
Edward J. Graham
|
|
Chairman, President & Chief Executive Officer
|
|
Dated:
August 8, 2008
|
By:
/s/ David A.
Kindlick
|
David A. Kindlick
|
|
Vice President & Chief Financial
Officer
|