PENSION AND OTHER POSTRETIREMENT BENEFITS

9 Months Ended

Sep. 30, 2011

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

PENSION AND OTHER POSTRETIREMENT BENEFITS

PENSION AND OTHER POSTRETIREMENT BENEFITS:

For the three and nine months ended September 30, 2011 and 2010, net periodic benefit cost related to the employee and officer pension and other postretirement benefit plans consisted of the following components (in thousands):

	Pension Benefits
	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Service Cost	$	979		$	856		$	2,938		$	2,569
Interest Cost	2,381			2,299			7,143			6,898
Expected Return on Plan Assets	(2,342		)	(2,100		)	(7,026		)	(6,301		)
Amortizations:
Prior Service Cost	67			70			200			210
Actuarial Loss	1,360			1,188			4,080			3,563
Net Periodic Benefit Cost	2,445			2,313			7,335			6,939
ERIP Costs	—			—			102			—
Capitalized Benefit Costs	(906		)	(878		)	(2,718		)	(2,632		)
Total Net Periodic Benefit Expense	$	1,539		$	1,435		$	4,719		$	4,307

	Other Postretirement Benefits
	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Service Cost	$	249		$	230		$	747		$	690
Interest Cost	800			816			2,400			2,450
Expected Return on Plan Assets	(562		)	(484		)	(1,686		)	(1,453		)
Amortizations:
Prior Service Credits	(89		)	(89		)	(266		)	(266		)
Actuarial Loss	414			374			1,241			1,121
Net Periodic Benefit Cost	812			847			2,436			2,542
Capitalized Benefit Costs	(302		)	(330		)	(907		)	(989		)
Total Net Periodic Benefit Expense	$	510		$	517		$	1,529		$	1,553

Capitalized benefit costs reflected in the table above relate to SJG’s construction program.

The ERIP costs reflected in the table above relate to an early retirement plan offered during 2011 to one of our business segments.

No contributions were made to the pension plans during the nine month period ended September 30, 2011.  During May 2010, SJI contributed $8.0 million to its pension plans.  We do not expect to make any contributions to our pension plans in 2011; however, changes in future investment performance and discount rates may ultimately result in a contribution. We also have a regulatory obligation to contribute approximately $3.6 million annually to our other postretirement benefit plans’ trusts, less costs incurred directly by us.

See Note 12 to the Consolidated Financial Statements in Item 8 of SJI’s Annual Report on Form 10-K as of December 31, 2010, for additional information related to SJI’s pension and other postretirement benefits.