RATES AND REGULATORY ACTIONS

6 Months Ended

Jun. 30, 2011

RATES AND REGULATORY ACTIONS Abstract]

RATES AND REGULATORY ACTIONS

7. RATES AND REGULATORY ACTIONS:

SJG is subject to the rules and regulations of the New Jersey Board of Public Utilities (BPU). SJG made a filing with the BPU in October 2010 requesting an extension of the Capital Investment Recovery Tracker (CIRT II).  The BPU approved  the CIRT II program in March 2011, allowing SJG to accelerate an additional $60.3 million of capital spending into 2011 and 2012.  Under CIRT II, SJG capitalizes our return on CIRT II investments until they are recovered in rate base as utility plant in service.  In June 2011, SJG filed a petition for recovery of CIRT II investments through rate base and a request to increase base rates by 0.5% in October 2011.  This petition is currently pending.

In March 2011, SJG credited the accounts of its Basic Gas Supply Service (BGSS) customers with refunds totaling $21.1 million due to actual gas costs being lower than projected.   In June 2011, SJG filed its annual BGSS clause and Conservation Incentive Program (CIP) filings with the BPU.  These petitions request a 2.9% reduction in rates for the BGSS and a 2.5% reduction in rates for the CIP, both commencing in October 2011.  Also in June 2011, SJG filed its annual Energy Efficiency Tracker (EET) petition, requesting a 0.5% increase.  These petitions are currently pending.

There have been no other significant regulatory actions or changes to SJG's rate structure since December 31, 2010.  See Note 10 to the Consolidated Financial Statements in Item 8 of SJI's Annual Report on Form 10-K as of December 31, 2010.