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SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1993 Commission File Number 1-6364
SOUTH JERSEY INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
New Jersey 22-1901645
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
Number One South Jersey Plaza, Route 54
Folsom, New Jersey 08037
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (609) 561-9000
Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange
Title of each class on which registered
Common Stock New York Stock Exchange and
($1.25 par value per share) Philadelphia Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes X No
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [X]
The aggregate market value of approximately 8,490,400 shares of voting stock
held by non-affiliates of the registrant as of March 10, 1994 was $187,850,000.
As of March 10, 1994, there were 9,887,571 shares of the registrant's common
stock outstanding.
Documents Incorporated by Reference:
In Part I of Form 10-K: Pages 14, 16, 17, 18 and 20 of 1993
Annual Report to Shareholders
In Part II of Form 10-K: Page 1 and Pages 10 through 22 of 1993
Annual Report to Shareholders
In Part III of Form 10-K: Pages 1 through 12 (except as stated in
Item 11 of this Form 10-K) of the Proxy Statement dated March 9,
1994 for the 1994 Annual Meeting of Shareholders
PART I
Item 1. Business
General
The registrant, South Jersey Industries, Inc. (the Company), a New Jersey
corporation, was formed in 1969 for the purpose of owning and holding all of the
outstanding common stock of South Jersey Gas Company (South Jersey Gas), a
public utility, and acquiring and developing nonutility lines of business.
Energy & Minerals, Inc. (EMI), a wholly-owned subsidiary of the Company, was
formed in 1977 to own, finance and further develop certain nonutility
businesses. Through a subsidiary, EMI is engaged in the mining, processing and
marketing of construction, commercial, industrial and other specialty sands and
gravels. South Jersey Energy Company, a wholly-owned subsidiary of the Company,
provides services for the acquisition and transportation of natural gas for
commercial and industrial users. R&T Group, Inc. (R&T), a wholly-owned
subsidiary of the Company, was formed in 1989 to own, finance and further
develop certain utility construction, general construction and environmental
remediation businesses. R&T engages in these businesses through several
operating subsidiaries.
Financial Information About Industry Segments
Information regarding the Industry Segments is incorporated by reference
to Note 2 on page 16 of the Company's Annual Report to Shareholders for the year
ended December 31, 1993, which Annual Report is attached to this report.
See Item 14(c)(13).
Description of Business
The Company is engaged in the business of operating, through subsidiaries,
various business enterprises. The Company's most significant subsidiary is
South Jersey Gas.
South Jersey Gas, a New Jersey corporation, is an operating public utility
company engaged in the purchase, transmission and sale of natural gas for
residential, commercial and industrial use in an area of approximately 2,500
square miles in the southern part of New Jersey. South Jersey Gas also
transports natural gas purchased directly by some of its customers.
South Jersey Gas' service territory includes 112 municipalities
throughout Atlantic, Cape May, Cumberland and Salem Counties and portions of
Burlington, Camden and Gloucester Counties, with an estimated permanent
population of 1,004,000.
South Jersey Gas serves 235,067 residential, commercial and industrial
customers (at December 31, 1993) in southern New Jersey. Gas sales and
transportation for 1993 amounted to 59,080,000 Mcf (thousand cubic feet), of
which 48,084,000 Mcf was firm sales and transportation, 7,433,000 Mcf was
interruptible sales and transportation and 3,563,000 Mcf was off system sales.
The breakdown of firm sales includes 40.3% residential, 19.1% commercial, 14.0%
cogeneration and electric generation, 5.4% industrial and other, and 21.2%
transportation. At year-end 1993, the Company served 218,484 residential
customers, 16,206 commercial customers and 377 industrial customers. This
includes 1993 net additions of 5,545 residential customers and 357 commercial
customers. The decrease of 17 industrial customers is mainly attributed to
transfers between customer classifications. South Jersey Gas generates
transportation revenues for delivering such supplies.
- 2 -
Under a five-year agreement executed in 1990 with Atlantic Electric, an
electric utility serving southern New Jersey, South Jersey Gas supplies natural
gas to Atlantic Electric's combustion turbine facility in Cumberland County.
This gas service is being provided under the terms of a firm electric service
tariff approved by the New Jersey Board of Regulatory Commissioners (BRC) on a
demand/commodity basis. In 1993, 2.9 Bcf (billion cubic feet) was delivered
under this agreement.
South Jersey Gas serviced eight cogeneration facilities in 1993 and one
additional facility is expected to come into service later in 1994. Combined
sales and transportation of natural gas to such customers amounted to
approximately 9 Bcf in 1993.
During 1993, South Jersey Gas began making wholesale non-jurisdictional gas
sales for resale to gas marketers for ultimate delivery to end users. These
"off-system" sales were made possible through the issuance of FERC Order No.
547. This order issues blanket certificates of public convenience and necessity
authorizing all parties, which are not interstate pipelines, to make FERC
jurisdictional gas sales for resale at negotiated rates. During 1993, off-
system sales amounted to 3.6 Bcf. Gas supply utilized to make said sales was
gas available in excess of the requirements of its jurisdictional customers.
Supplies of natural gas available to South Jersey Gas that are in excess of
the quantity required by those customers who use gas as their sole source of
fuel (firm customers) make possible the sale of gas on an interruptible basis to
commercial and industrial customers whose equipment is capable of using natural
gas or other fuels, such as fuel oil and propane. The term "interruptible" is
used in the sense that deliveries of natural gas may be terminated by South
Jersey Gas at any time if this action is necessary to meet the needs of
customers purchasing gas under firm rate tariffs. Usage by interruptible
customers in 1993 amounted to approximately 11.0 Bcf. (Approximately 18.6
percent of the total volume of gas delivered).
No material part of South Jersey Gas business is dependent upon a single
customer or a few customers.
The majority of the South Jersey Gas residential customers reside in the
northern and western portions of its service territory in Burlington, Camden,
Salem and Gloucester counties. Approximately 50 percent of new customers
reside in this section of the service territory, which includes the
residential suburbs of Wilmington and Philadelphia. The franchise area to the
east is centered on Atlantic City and the neighboring resort communities in
Atlantic and Cape May counties, which experience large population increases in
the summer months. The impact of the casino gaming industry on the Atlantic
City area has resulted in the creation of new jobs and the expansion of the
residential and commercial infrastructure necessary to support a developing
year-round economy. Atlantic City is experiencing a second wave of development
as a result of casino gaming. The centerpiece of this development is the new
$254 million dollar multi-purpose convention center, accompanied with a planned
billion dollar hotel and entertainment complex. These facilities will be used
to attract large conventions as well as making Atlantic City into a family
resort on a year around basis. The convention center is expected to be in
operation as early as 1996.
Manufacturers or processors of sand, glass, farm products, paints,
chemicals and petroleum products are located in the western and southern
sectors of the service territory. New commercial establishments and high
technology industrial parks and complexes are expected to be part of the
economic growth of this area.
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South Jersey Gas' service area includes parts of the Pinelands region, a
largely undeveloped area in the heart of southern New Jersey. Future
construction in this area is expected to be limited by statute and by a master
plan adopted by the New Jersey Pinelands Commission; however, in terms of
potential growth, significant portions of South Jersey Gas' service area are not
affected by these limitations.
As a public utility, South Jersey Gas is subject to regulation by the BRC.
Additionally, the Natural Gas Policy Act, which was enacted in November 1978,
contains provisions for Federal regulation of certain aspects of South Jersey
Gas' business. South Jersey Gas is affected by Federal regulation with respect
to transportation and pricing policies applicable to its natural gas purchases
from Transcontinental Gas Pipeline Corporation (Transco), South Jersey Gas'
major supplier, and Columbia Gas Transmission Corporation (Columbia), since such
purchases are made under rates and terms established under the jurisdiction of
the Federal Energy Regulatory Commission (FERC).
Retail sales by South Jersey Gas are made under rate schedules within a
tariff filed with and subject to the jurisdiction of the BRC. These rate
schedules provide primarily for either block rates or demand/commodity rate
structures. The tariff contains provisions permitting South Jersey Gas to pass
on to customers increases and decreases in the cost of purchased gas supplies.
The tariff also contains provisions permitting the recovery of environmental
remediation costs associated with former gas plant sites and for the adjustment
of revenues due to the impact of degree day fluctuations which approximate 7%
greater or less than an established 10-year normal.
Revenue requirements for ratemaking purposes are established on the basis
of firm and interruptible sales projections. In August 1992, the BRC granted
SJG a rate increase of $3.35 million based on an overall rate of return of
10.34% including a 12.1% return on equity. As part of this rate increase, SJG
is allowed to retain the first $3.9 million of base revenues generated by
interruptible sales and 20% of base revenues generated by such sales above that
level until it realizes a 12.1% return on equity. SJG also received authority
to implement the environmental remediation cost recovery mechanism as part of
this order. In January 1994, South Jersey Gas petitioned the BRC for a general
base rate increase of approximately $26.6 million, including a 12.75% return on
equity. Additional information on regulatory affairs and the 1994 rate petition
is incorporated by reference to Note 1 on page 14 and Notes 9 and 10 on pages 17
and 18 of the Company's Annual Report to Shareholders for the year ended
December 31, 1993, which Annual Report is attached to this report. See Item
14(c)(13).
South Jersey Energy Company (Energy Company), a New Jersey corporation,
is a wholly owned non-regulated subsidiary of the Company and is engaged in
providing services for the acquisition and transportation of natural gas for
industrial and commercial users.
Energy & Minerals, Inc., a New Jersey corporation, is a holding
company that owns all of the outstanding common stock of The Morie Company,
Inc. (Morie Company), and an inactive company, South Jersey Fuel, Inc.
(Fuel Company).
Morie Company, a New Jersey corporation, is engaged in the mining,
processing and marketing of a broad range of industrial and commercial sands
and gravels. Its principal products are glass sand used for manufacturing
cookware, containers and flat glass, foundry sand used as the core and molding
medium in iron and steel foundries, and construction sand and gravels. Morie
Company also produces sandblasting sands, filter sands and gravels, well
gravels, special sand mixes for athletic tracks and golf courses, resin-coated
sands, clay products and a wide variety of specialty products, including
specially processed silica for the electronics industry.
- 4 -
Total customers of Morie Company number in the thousands, and no single
customer accounts for as much as 10% of annual sales. Tonnage sales in 1993
were approximately 9.5% higher than 1992, and Morie Company attributes this
increase to slowly improving economic activity. Keen competition and railroad
deregulation are factors affecting prices on a delivered basis. All Morie
Company facilities are in good operating condition and, along with ample high-
quality mineral reserves, are capable of handling expanding markets and of
supporting increased market share.
Fuel Company, a New Jersey corporation, sold its operating assets in
November 1985 and is no longer in the business of distributing petroleum
products.
R&T, a New Jersey corporation, is a holding company that owns all the
common stock of R and T Castellini Company, Inc. (Castellini Company), S.W.
Downer, Jr. Company, Inc. (Downer Company), Onshore Construction Company, Inc.
(Onshore), Cape Atlantic Crane Co., Inc. (Cape Atlantic) and, beginning in 1993,
R & T Castellini Construction Company, Inc. (R & T Construction). In 1993,
approximately 50% of R&T net sales related to competitive-bid work performed for
South Jersey Gas. No other customer accounted for as much as 10% of R&T's
consolidated revenues in 1993.
Castellini Company, a New Jersey corporation, is engaged in the
installation of gas, water and sewer lines, plant maintenance, site work and
environmental cleanup and remediation.
Downer Company, a New Jersey corporation, is engaged in the installation of
gas, water and sewer lines, plant maintenance, site work and environmental
cleanup and remediation.
Onshore, a New Jersey corporation, is principally engaged in the
installation of large diameter pipe, sewerage plants, bridges, dams and other
heavy construction projects.
Cape Atlantic, a New Jersey corporation, is principally engaged in the
rental of cranes.
R & T Construction, a Delaware Corporation, is engaged in the installation
of gas, water and sewer lines, plant maintenance, site work and environmental
cleanup and remediation.
In 1993, the Company made no public announcement of, or otherwise made
public information about, a new product or industry segment that would require
the investment of a material amount of the assets of the Company or which
otherwise was material.
Raw Materials
South Jersey Gas
Pipeline Supply
South Jersey Gas has direct connections to two interstate pipelines,
Transcontinental Gas Pipe Line (Transco) and Columbia Gas Transmission
(Columbia). During 1993, services provided to South Jersey Gas from these
pipelines along with same provided by CNG Transmission Corporation (CNG) were
subject to changes as directed by the Federal Energy Regulatory Commission
(FERC) when it issued its Order No. 636 "Pipeline Service Obligations and
Revisions to Regulations Governing Self-Implemented Transportation Under Part
284 of the Commission's Regulations" issued on April 8, 1992. This order
required significant alterations in the structure of interstate natural gas
pipeline services.
- 5 -
Order No. 636 and its companion series of orders (636-A and 636-B) were
intended by the FERC to complete the transition to a competitive natural gas
industry initiated by the Natural Gas Policy Act of 1978 whereby all natural gas
suppliers are able to compete for gas purchases on an equal footing.
The pipeline suppliers mentioned above filed Order No. 636 compliance
filings late in 1992 and also submitted revised compliance filings during 1993.
In these compliance filings each pipeline was required to submit a comprehensive
explanation as to how it intended to implement the restructuring of its pipeline
system services.
The FERC subsequently approved these revised compliance filings in time for
the pipelines to implement the provisions of Order No. 636 in advance of the
1993-94 winter heating season.
Transco
Transco, during 1991, unbundled its sales and transportation services as a
result of a FERC approved settlement that was negotiated with its customers. At
that time South Jersey Gas replaced its Commodity and Demand (CD) gas purchase
contract with Transco with a Firm Transportation (FT) service and a gas purchase
agreement (FS service). The FS service is a FERC approved service that provides
a guaranteed supply of up to 111,869 Mcf per day of gas and gives the Company
the option to buy gas from other suppliers to be transported under the firm
transportation capacity if such supplies are available at lower costs. The
initial term of the FS agreement extends through March 31, 2001.
On May 14, 1993, in response to Transco's compliance filing, the FERC
issued an order in Transco's Order No. 636 restructuring proceeding. In said
order, the FERC required, among other things, that Transco unbundle that portion
of its Eminence Storage Field (approximately 3.1 billion cubic feet (Bcf)),
previously reserved for use by Transco in rendering "swing supply" service to
its sales (FS) customers. The FERC also directed that Transco should make its
unbundled Eminence Storage capacity available on a priority basis to its
existing FS customers and South Jersey Gas was allocated 316,177 Mcf of this
storage capacity.
In addition to FS service, South Jersey Gas has a ten-year gas supply
agreement with Vastar Gas Marketing (Vastar - formerly Arco Natural Gas) for
delivery to its service territory by way of Transco FT service.
During the 1992-93 winter season, South Jersey Gas began receiving delivery
of up to 24,700 Mcf per day of gas under a firm transportation agreement that
was entered into with Transco as part of the Texas Gas-CNG Transmission-Transco
project that was developed to provide additional firm pipeline capacity to
deliver gas to the U.S. Northeast under Transco's Rate Schedule FT-NT. The gas
source that is available for transportation on the Transco-CNG Transmission-
Texas Gas pipeline capacity is purchased from Amerada Hess under a 15 year gas
supply agreement.
Additionally, South Jersey Gas has a winter season peaking transportation
service on the Transco system which is available for the period December 1
through the last day of February of each year. South Jersey Gas' maximum daily
entitlement under this service is 2,900 Mcf per day. South Jersey Gas can
transport third party gas via said service and has contracted with Amerada Hess
for a long-term firm gas supply to fill its capacity during each winter season.
- 6 -
Columbia
As part of its FERC Order No. 636 restructuring, Columbia unbundled its
traditional sales service from its firm transportation service and as such has
eliminated its previous long term sales service under Rate Schedule CDS. South
Jersey Gas previously held a CDS sales agreement with Columbia which provided
for a maximum daily sales entitlement of 33,816 Mcf per day. As a result of
Columbia's restructuring, South Jersey Gas has been assigned an equivalent
33,816 Mcf per day of firm transportation capacity on both Columbia and its
affiliate Columbia Gulf Transmission Company (Columbia Gulf).
As a result of the above, during 1993, South Jersey Gas entered into long-
term gas purchase agreements with Vastar, Texaco Gas Marketing, and Union
Pacific Fuels for a total of 33,816 Mcf of gas per day to fill this firm
pipeline capacity on the Columbia and Columbia Gulf pipeline systems.
Additionally during 1993, 483,092 Mcf of storage capacity previously
rendered to South Jersey Gas under Columbia's Rate Schedule WS was converted to
storage service rendered under Rate Schedule FSS on a one-for-one basis.
On July 31, 1991, Columbia and its parent, Columbia Gas Systems, Inc. filed
for Chapter 11 bankruptcy protection. Columbia has stated to its customers that
it would fulfil all contractual obligations pending reorganization. To date
Columbia has met all contractual obligations and it is anticipated this will be
the case in the future.
On January 18, 1994 Columbia filed a reorganization plan with the U.S.
Bankruptcy Court for the District of Delaware. An order on this filing is still
pending.
CNG
As part of its Order No. 636 restructuring, CNG has abandoned gas sales
service under its Rate Schedule SCQ. South Jersey Gas previously had an SCQ
Service Agreement with CNG which provided for the delivery of 9,662 Mcf per day
to Transco at Leidy, PA for ultimate delivery to the Company during the period
November 16 through March 31 of each winter season. As a result of Order No.
636 CNG has replaced the 9,662 Mcf per day of SCQ sales service with 5,357 Mcf
per day of Firm Transportation (FT) service from various Appalachian aggregation
points located in Pennsylvania and West Virginia and 408,670 Mcf of storage
capacity with 4,305 Mcf per day of storage withdrawal demand in CNG's GSS
Storage Service. During 1993 to facilitate the utilization of these new
services, South Jersey Gas entered into separate gas sales and capacity
management agreements with CNG Gas Services Corporation, a non-jurisdictional
affiliate of CNG. Through these agreements South Jersey Gas has assigned to CNG
Gas Services its pipeline FT and storage entitlements on the CNG pipeline system
for use to provide South Jersey Gas with up to 9,662 Mcf per day of gas during
the winter seasons, November 16 through March 31 of each year.
Peak-Day Supply
South Jersey Gas plans for a winter season peak-day demand on the basis of
an average daily temperature of 5 degrees F. Gas demand on such a design day
was estimated for the 1993-94 winter season to be 357,980 Mcf versus a design
day supply of 400,521 Mcf. On January 19, 1994, South Jersey Gas experienced a
peak-day demand of 365,629 Mcf with an average temperature of 2.68 degrees F.
- 7 -
Storage Services
In addition to its normal gas suppliers, South Jersey Gas has nine storage
services that are capable of storing 11.7 Bcf of gas and provide a total daily
delivery capacity of 111,607 Mcf. While these storage services do not represent
an additional source of gas, they do provide South Jersey Gas with flexibility
to acquire gas during periods of low demand and store it until it is needed
during winter heating seasons and other times of high demand.
South Jersey Gas has the following contracts for gas storage service:
Contract Term Storage Capacity
1972 - 1994 1,362,980 Mcf
1980 - 1998 4,257,135 Mcf
Year-to-Year 137,813 Mcf
Year-to-Year 207,770 Mcf (1)
1984 - 1994 1,182,609 Mcf
1987 - 2002 500,000 Mcf
1988 - 2008 1,307,400 Mcf
1989 - 2009 1,099,346 Mcf
1990 - 2005 1,705,000 Mcf
(1) Contract is for storage of liquefied natural gas; the amount shown is
natural gas equivalent.
Supplemental Gas Supplies
In 1993, South Jersey Gas injected 371,653 Mcf of vaporized liquefied
natural gas (LNG) into its distribution system from its McKee City, New Jersey
LNG facility. This LNG was obtained through a long-term LNG purchase agreement
with Distrigas of Massachusetts Corporation and from gas liquefaction services
that were provided by Transco and UGI Utilities, Inc.
South Jersey Gas' three propane-air vaporization plants enable it to
augment natural gas supplies during periods of peak demand by vaporizing liquid
propane and mixing the vaporized propane with air to form a gas that is
compatible with natural gas. During 1993, 2,097 Mcf of propane-air gas was
utilized by South Jersey Gas.
Gas Prices
During 1993 South Jersey Gas purchased and had delivered to it
approximately 44.9 Bcf of natural gas for distribution to its customers in New
Jersey. Of this total, 39.3 Bcf was transported on the Transco pipeline system
and 5.6 Bcf was transported on the Columbia pipeline system.
The Company's average cost of gas purchased in 1993 was $3.72 per Mcf,
which unit cost includes all demand and commodity charges.
Energy & Minerals, Inc.
Morie Company
Morie Company obtains substantially all of the materials which it
processes from its owned or leased properties in New Jersey, Tennessee,
Georgia and Alabama. (See Item 2. "Properties.")
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R&T
Raw materials are not significant to the operations of the R&T Companies.
Patents and Franchises
South Jersey Gas holds nonexclusive franchises granted by municipalities
in the seven-county area of southern New Jersey that it serves. No other
natural gas public utility presently serves the territory covered by South
Jersey Gas' franchises. Otherwise, patents, trademarks, licenses, franchises
and concessions are not material to the business of the Company or any of its
subsidiaries.
Seasonal Aspects
South Jersey Gas experiences seasonal fluctuations in sales when selling
fuel for heating purposes. South Jersey Gas meets this seasonal fluctuation
in demand from its firm customers by buying and storing gas during the summer
months, and by drawing from storage and purchasing supplemental supplies
during the heating season. As a result of this seasonality, South Jersey Gas
experiences reductions of revenues and net income during the second and third
quarters of the year.
Morie Company's mining activities in New Jersey and Tennessee are
normally curtailed during the winter months. Sales during the winter months
are made from inventories accumulated during the previous months. Nevertheless,
the volume of sales during the winter is lower than the volume of sales made
during other seasons, particularly the summer, and Morie Company regularly
shows reductions in revenues and net income during the winter season.
The utility and general construction companies of R&T experience lower
construction activity during the winter months as construction activity in the
northeast is usually reduced or curtailed because of colder temperatures.
Working Capital Practices
As previously indicated under Seasonal Aspects, South Jersey Gas buys and
stores natural gas during the summer months. These purchases are financed by
short-term loans which are substantially paid down during the winter months
when gas revenues are higher. Reference is also made to "Liquidity" on pages
20 and 21 of the Company's Annual Report to Shareholders for the year ended
December 31, 1993, which annual report is attached to this report. See Item
14(c)(13).
Customers
Except for R&T, no material part of the Company's business or that of any
of its subsidiaries is dependent upon a single customer or a few customers, the
loss of which would have a material adverse effect on any such business. (See
pages 3 and 5).
Backlog
Backlog is not material to an understanding of the Company's business or
that of any of its subsidiaries.
Government Contracts
No material portion of the business of the Company or any of its
subsidiaries is subject to renegotiation of profits or termination of
contracts or subcontracts at the election of any government.
- 9 -
Competition
Although the South Jersey Gas franchises are nonexclusive, none of its
service territory is presently served by any other natural gas public utility.
Competition does exist, however, from suppliers of oil, propane and
electricity for residential, commercial and industrial uses. Additional
competition for certain industrial gas sales may result from the implementation
of the "open access" provision of the FERC Order No. 636 which unbundled the
services which are provided by interstate pipeline suppliers; although the full
effect of unbundling is not yet known, South Jersey Gas has dealt with the
unbundled structure since 1991 and believes it has structured its rates to
enable it to compete effectively with any marketer within the service territory
of South Jersey Gas.
Morie Company competes with a number of other sand and gravel mining
companies in the eastern part of the United States.
The operating companies of R&T Group compete with a number of other
utility and general construction companies.
Research
During the last three fiscal years, neither the Company nor any of its
subsidiaries engaged in research activities to any material extent.
Environmental Matters
Information on environmental matters for South Jersey Gas is incorporated
by reference to Note 9 on pages 17 and 18 of the Company's Annual Report to
Shareholders for the year ended December 31, 1993, which Annual Report is
attached to this report. See Item 14(c)(13).
EMI and its subsidiaries are subject to, and have a corporate policy of
compliance with, legislation and regulation by federal, state and local
authorities with regard to air and water quality control, and other
environmental considerations. Expenditures for environmental purposes are
not expected to materially affect future operations or earnings.
At December 31, 1993, Morie Company had an accrued land reclamation
liability of $971,000 for lands currently being mined. Morie Company believes
that it is in substantial compliance with all applicable environmental laws
and regulations.
Employees
The Company and its subsidiaries had a total of 1,005 employees as of
December 31, 1993.
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Financial Information About Foreign and Domestic Operations and Export Sales
The Company has no foreign operations and export sales have not been a
significant part of the Company's business.
Item 2. Properties
The principal property of South Jersey Gas consists of its gas
transmission and distribution systems that include mains, service connections
and meters. The transmission facilities carry the gas from the connections
with Transco and Columbia to South Jersey Gas' distribution systems for
delivery to customers. As of December 31, 1993, there were approximately 335
miles of mains in the transmission systems and 4,407 miles of mains in the
distribution systems.
South Jersey Gas owns office and service buildings, including its
corporate headquarters, at eight locations in the territory, a liquefied
natural gas storage and vaporization facility, and three propane-air
vaporization plants. Also, South Jersey Gas owns a bus parking lot in
Atlantic City, N.J.
As of December 31, 1993, the South Jersey Gas utility plant had a gross
book value of $473,066,666 and a net book value, after accumulated
depreciation, of $346,344,340. In 1993, $33,367,803 was spent on additions to
utility plant and there were retirements of property having an aggregate gross
book cost of $2,583,711. Construction expenditures for 1994 are currently
expected to approximate $38.0 million.
Virtually all of the South Jersey Gas transmission pipeline, distribution
mains and service connections are in streets or highways or on the property of
others. The South Jersey Gas transmission and distribution systems are
maintained under franchises or permits or rights-of-way, many of which are
perpetual. The South Jersey Gas properties (other than property specifically
excluded) are subject to a lien of mortgage under which its first mortgage bonds
are outstanding. South Jersey Gas' properties are well-maintained and in good
operating condition .
EMI owns two properties in Atlantic City, N.J., which include commercial
space that is being rented to others. EMI also owns and rents two commercial
properties in Millville, N.J., one of which is rented to Morie Company.
Morie Company owns ten plants, six of which are located in New Jersey,
two in Tennessee, one in Georgia and one in Alabama. The Morie Company owns
approximately 5,800 acres of land and leases approximately 5,100 acres of
land. The combined acreage includes approximately 1,400 acres of mineable
reserves. The mineral leases typically grant the right to mine sand and
gravel for an initial period with several renewal options. The mineral leases
typically provide for a royalty per ton mined and sold. Morie Company estimates
its proven reserves of sand at approximately 129,000,000 tons of raw aggregates
which may be profitably extracted and processed, based on present methods of
operation and prevailing prices. Reserves have been estimated on the basis of
laboratory and field analyses of samples produced by techniques such as split
spoon, core drillings and excavating experience on the sites.
R&T operating companies share land and buildings at two principal
locations used for administrative operations and housing facilities for
vehicles, heavy equipment and supplies.
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The Company owns approximately 139 acres of land in Folsom, New Jersey,
approximately 9.29 acres of land in Linwood, New Jersey, and an office building
in Chester, Pennsylvania.
Item 3. Legal Proceedings
The Company is not aware of any pending or potential legal proceedings
that it believes will have a material effect on its operations or consolidated
financial position. Reference is made to Notes 9 and 10 on pages 17 and 18 of
the Company's Annual Report to Shareholders for the year ended December 31,
1993, which Annual Report is attached to this report. See Item 14(c)(13).
Item 4. Submission Of Matters To A Vote of Security Holders
No matter was submitted to a vote of security holders during the fourth
quarter of the 1993 fiscal year.
Item 4-A. Executive Officers (Other Than Directors) of the Registrant
Name Age Positions with the Company
Gerald S. Levitt 49 Vice President
George L. Baulig 51 Secretary and
Assistant Treasurer
Richard B. Tonielli 54 Treasurer
There is no family relationship among the officers of the registrant.
Gerald S. Levitt was elected Vice President of the Company and Senior
Vice President of South Jersey Gas effective November 1, 1983. He has served
as Chief Financial Officer of the Company since October 1, 1989. He was
elected Executive Vice President of South Jersey Gas on November 1, 1986. Mr.
Levitt was Vice President of EMI from November 1983 to November 1986. Mr.
Levitt is also a member of the Board of Directors of Morie Company.
Richard B. Tonielli was elected Treasurer of the Company effective
September 1981. He has served as Senior Vice President, Finance since April 1,
1988 and he has served in other officer positions of South Jersey Gas since
1983. Mr. Tonielli serves as Vice President and Treasurer of EMI (September
1981 to date) and Treasurer of R&T Group, Inc. (October 1989 to date).
George L. Baulig was elected Secretary and Assistant Treasurer of the
Company, South Jersey Gas and EMI effective November 1, 1980. Mr. Baulig is
also Secretary of R&T Group, Inc. (October 1989 to date), South Jersey Energy
Company and Morie Company.
Executive officers of the Company are elected annually and serve at the
pleasure of the Board of Directors.
- 12 -
PART II
Item 5. Market for the Registrant's Common Stock and Related Stockholder
Matters
Information required by this Item is incorporated by reference to Note 6
on page 17 and the bottom of page 22 of the Company's Annual Report to
Shareholders for the year ended December 31, 1993, which Annual Report is
attached to this report. See Item 14(c)(13).
Item 6. Selected Financial Data
Information required by this Item is incorporated by reference to page 1
of the Company's Annual Report to Shareholders for the year ended December 31,
1993, which Annual Report is attached to this report. See Item 14(c)(13).
Item 7. Management's Discussion and Analysis of Results of Operations and
Financial Condition
Information required by this Item is incorporated by reference to pages
19, 20 and 21 of the Company's Annual Report to Shareholders for the year ended
December 31, 1993, which Annual Report is attached to this report. See Item
14(c)(13).
Item 8. Financial Statements and Supplementary Data
Information required by this Item is incorporated by reference to pages
10 through 19 and page 22 of the Company's Annual Report to Shareholders for
the year ended December 31, 1993, which Annual Report is attached to this
report. See Item 14(c)(13).
Item 9. Changes in and Disagreements with Accountants on Accounting
and Financial Disclosures
None
- 13 -
PART III
Item 10. Directors and Executive Officers of the Registrant
Information required by this Item relating to the directors of the
Company is incorporated by reference to pages 2 through 5 of the Company's
definitive Proxy Statement, dated March 9, 1994, filed with the Commission,
File number 1-6364, in connection with the Company's 1994 Annual Meeting of
Shareholders. Information required by this Item relating to the executive
officers (other than Directors) of the Company is set forth in Item 4-A of
this report.
Item 11. Executive Compensation
Information required by this Item is incorporated by reference to pages
5 through 11 (except for the Report of the Compensation/Pension Committee on
page 9 and the Stock Performance Graph on page 10, which are not so
incorporated) of the Company's definitive Proxy Statement, dated March 9, 1994,
filed with the Commission, File number 1-6364, in connection with the Company's
1994 Annual Meeting of Shareholders.
Item 12. Security Ownership of Certain Beneficial Owners and Management
Information required by this Item is incorporated by reference to pages
2 through 5 of the Company's definitive Proxy Statement, dated March 9, 1994,
filed with the Commission, File number 1-6364, in connection with the
Company's 1994 Annual Meeting of Shareholders.
Item 13. Certain Relationships and Related Transactions
Information required by this Item is incorporated by reference to
page 6 of the Company's definitive Proxy Statement, dated March 9, 1994,
filed with the Commission, File number 1-6364, in connection with the
Company's 1994 Annual Meeting of Shareholders.
- 14 -
PART IV
Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K.
(a) Listed below are all financial statements and schedules filed as part
of this report:
1 - The consolidated financial statements and notes to consolidated
financial statements together with the report thereon of Deloitte
& Touche, dated February 16, 1994, are incorporated herein by
reference to pages 10 through 19 of the Company's Annual Report to
Shareholders
for the year ended December 31, 1993, which Annual Report is
attached to this report. See Item 14(c)(13).
2 - Supplementary Financial Information Page(s)
Information regarding selected quarterly financial
data is incorporated herein by reference to page 22 of
the Company's Annual Report to Shareholders for the year
ended December 31, 1993, which Annual Report is
attached to this report. See Item 14(c)(13).
Supplemental Schedules as of December 31, 1993, 1992 and 1991
and for the three years ended December 31, 1993, 1992, and 1991:
The Independent Auditors' Report of Deloitte & Touche,
Auditors of the Company 25
Schedule V - Property, Plant and Equipment 26-34
Schedule VI - Accumulated Depreciation,
Depletion and Amortization of Property,
Plant and Equipment 35-43
Schedule VIII - Valuation and Qualifying Accounts 44
Schedule IX - Short-Term Borrowings 45
Schedule X - Supplementary Income Statement Information 46
(All Schedules, other than those listed above, are
omitted because the information called for is
included in the financial statements filed or
because they are not applicable or are not
required. Separate financial statements are
not presented because all consolidated subsidiaries
are wholly-owned.)
3 - See Item 14(c)(13)
(b) No reports on Form 8-K have been filed by the Company during the quarter
ended December 31, 1993.
- 15 -
(c) List of Exhibits (Exhibit Number is in Accordance with the Exhibit Table
in Item 601 of Regulation S-K)
Exhibit Incorporated by Reference From
Number Exhibit Reference Document
(3)(a)(i) Certificate of Incorporation (4)(a) Form S-2
of the Company, as amended (2-91515)
through April 19, 1984.
(3)(a)(ii) Amendment to Certificate of (4)(e)(1) Form S-3
Incorporation relating to (33-1320)
two-for-one stock split
effective as of April 28,
1987.
(3)(a)(iii) Amendment to Certificate of (4)(e)(2) Form S-3
Incorporation relating to (33-1320)
director and officer
liability.
(3)(b) Bylaws of the Company as (3)(c) Form 10-K
amended and restated for 1990
through October 1, 1990. (1-6364)
(4)(a) Form of Stock Certificate (4)(a) Form 10-K
for common stock. for 1985
(1-6364)
(4)(b)(i) First Mortgage Indenture (4)(b)(i) Form 10-K
dated October 1, 1947 for 1987
(1-6364)
(4)(b)(vi) Form of South Jersey Gas (4)(b)(vi) Form 10-K
Company First Mortgage for 1980
Bond, 7-7/8% Series due 1994. (1-6364)
(4)(b)(vii) Form of South Jersey Gas (4)(b)(vii) Form 10-K
Company First Mortgage for 1980
Bond, 8-1/4% Series due 1996. (1-6364)
(4)(b)(viii) Form of South Jersey Gas (4)(b)(viii) Form 10-K
Company First Mortgage for 1980
Bond, 8-1/4% Series due 1998. (1-6364)
(4)(b)(x) Twelfth Supplemental Inden- 5(b) Form S-7
ture, dated as of June 1, (2-68038)
1980.
- 16 -
Exhibit Incorporated by Reference From
Number Exhibit Reference Document
(4)(b)(xii) Fifteenth Supplemental (4)(b)(xiii) Form 10-K
Indenture, dated July for 1986
1, 1986, 9.2% Series (1-6364)
due 1998.
(4)(b)(xiv) Sixteenth Supplemental (4)(b)(xv) Form 10-Q
Indenture dated as of for quarter
April 1, 1988, 10-1/4% ended
Series due 2008. March 31,
1988 (1-6364)
(4)(b)(xv) Seventeenth Supplemental (4)(b)(xv) Form 10-K
Indenture dated as of for 1989
May 1, 1989. (1-6364)
(4)(b)(xvi) Eighteenth Supplemental (4)(e) Form S-3
Indenture, dated as of (33-36581)
March 1, 1990.
(4)(b)(xvii) Nineteenth Supplemental (4)(b)(xvii) Form 10-K
Indenture, dated as of for 1992
April 1, 1992. (1-6364)
(4)(b)(xviii) Twentieth Supplemental
Indenture, dated as of
June 1, 1993.
(filed herewith)
(9) None
(10)(d) Gas storage agreement (GSS)
between South Jersey Gas
Company and Transco,
dated October 1, 1993.
(filed herewith)
(10)(e) Gas storage agreement (S-2) (5)(h) Form S-7
between South Jersey Gas (2-56223)
Company and Transco,
dated December 16, 1953.
(10)(f) Gas storage agreement (LG-A) (5)(f) Form S-7
between South Jersey Gas (2-56223)
Company and Transco,
dated June 3, 1974.
- 17 -
Exhibit Incorporated by Reference From
Number Exhibit Reference Document
(10)(h) Gas storage agreement (WSS) (10)(h) Form 10-K
between South Jersey Gas for 1991
Company and Transco, dated (1-6364)
August 1, 1991.
(10)(i) Gas storage agreement (LSS)
between South Jersey Gas
Company and Transco,
dated October 1, 1993.
(filed herewith)
(10)(i)(a) Gas storage agreement (10)(i)(a) Form 10-K
(SS-1) between South Jersey for 1988
Gas Company and Transco, (1-6364)
dated May 10, 1987 (effective
April 1, 1988).
(10)(i)(b) Gas storage agreement
(ESS) between South Jersey
Gas Company and Transco,
dated November 1, 1993.
(filed herewith)
(10)(i)(c) Gas transportation service (10)(i)(c) Form 10-K
agreement between South for 1989
Jersey Gas Company and (1-6364)
Transco, dated April 1,
1986.
(10)(i)(e) Service agreement (FS) (10)(i)(e) Form 10-K
between South Jersey Gas For 1991
Company and Transco, dated (1-6364)
August 1, 1991.
(10)(i)(f) Service agreement (FT) (10)(i)(f) Form 10-K
between South Jersey Gas for 1991
Company and Transco, dated (1-6364)
February 1, 1992.
(10)(i)(g) Service agreement (10)(i)(g) Form 10-K
(Incremental FT) for 1991
between South Jersey Gas Company (1-6364)
and Transco, dated August 1,
1991.
(10)(i)(i) Gas storage agreement (SS-2) (10)(i)(i) Form 10-K
between South Jersey Gas for 1991
company and Transco, dated (1-6364)
July 25, 1990.
- 18 -
Exhibit Incorporated by Reference From
Number Exhibit Reference Document
(10)(i)(j) Gas Transportation Service
Agreement between South
Jersey Gas Company and
Transco, dated December 20,
1991.
(filed herewith)
(10)(i)(k) Amendment to Gas Transportation
Agreement, dated December 20,
1991 between South Jersey Gas
Company and Transco, dated
October 5, 1993.
(filed herewith)
(10)(j)(a) Gas Transportation Service (10)(j)(a) Form 10-K
Agreement (FTS) between South for 1989
Jersey Gas Company and (1-6364)
Equitable Gas Company,
dated November 1, 1986.
(10)(k)(h) Gas Transportation Service
Agreement (TF) between
South Jersey Gas Company
CNG Transmission Corporation
dated October 1, 1993.
(filed herewith)
(10)(k)(i) Gas purchase agreement (10)(k)(i) Form 10-K
between South Jersey Gas for 1989
Company and ARCO Gas Market- (1-6364)
ing, Inc., dated March 5, 1990.
(10)(k)(k) Gas Transportation Service
Agreement (FTS 1) between
South Jersey Gas Company and
Columbia Gulf Transmission
Company, dated November 1,
1993.
(filed herewith)
(10)(k)(l) Assignment Agreement
capacity and service rights
(FTS-2) between South Jersey
Gas Company and Columbia
Gulf Transmission Company,
dated November 1, 1993.
(filed herewith)
- 19 -
Exhibit Incorporated by Reference From
Number Exhibit Reference Document
(10)(k)(m) FTS Service Agreement
No. 39556 between South
Jersey Gas Company and
Columbia Gas Transmission
Corporation, dated
November 1, 1993.
(filed herewith)
(10)(k)(n) FTS Service Agreement
No. 38099 between South
Jersey Gas Company and
Columbia Gas Transmission
Corporation, dated
November 1, 1993.
(filed herewith)
(10)(k)(o) NTS Service Agreement
No. 39305 between South
Jersey Gas Company and
Columbia Gas Transmission
Corporation, dated
November 1, 1993.
(filed herewith)
(10)(k)(p) FSS Service Agreement
No. 38130 between South
Jersey Gas Company and
Columbia Gas Transmission
Corporation, dated
November 1, 1993.
(filed herewith)
(10)(k)(q) SST Service Agreement
No. 38086 between South
Jersey Gas Company and
Columbia Gas Transmission
Corporation, dated
November 1, 1993.
(filed herewith)
(10)(l) Deferred Payment Plan for (10)(l) Form 10-K
Directors of South Jersey for 1986
Industries, Inc., South (1-6364)
Jersey Gas Company and
Energy & Minerals, Inc.
as amended and restated
August 22, 1986.
- 20 -
Exhibit Incorporated by Reference From
Number Exhibit Reference Document
(10)(l)(a) Form of Deferred Compen- (10)(j)(a) Form 10-K
sation Agreement between for 1980
the Company and/or a sub- (1-6364)
sidiary and eleven of its
officers.
(10)(l)(b) Schedule of Deferred Com- (10)(l)(b) Form 10-K
pensation Agreements. for 1992
(1-6364)
(10)(l)(c) Supplemental Executive (10)(l)(c) Form 10-K
Retirement Program, as for 1992
amended and restated ef- (1-6364)
fective September 1, 1991,
and form of Agreement
between certain Company
or subsidiary Company officers.
(10)(l)(d) Form of Officer Employment (10)(i)(l) Form 10-K
Agreement between certain for 1991
officers and either the Company (1-6364)
or its Subsidiaries.
(10)(l)(e) Schedule of Officer (10)(i)(e) Form 10-K
Employment Agreements. for 1991
(1-6364)
(10)(l)(f) Officer Severance Benefit (10)(l)(g) Form 10-K
Program for all officers. for 1985
(1-6364)
(10)(l)(g) Discretionary Incentive (10(l)(h) Form 10-K
Bonus Program for all for 1985
officers and management (1-6364)
employees.
(10)(l)(h) The 1987 Stock Option and (10)(l)(i) Form 10-K
Stock Appreciation Rights for 1987
Plan including Form of (1-6364)
Agreement.
(10)(p) Retirement Plan for Non- (10)(p) Form 10-K
employee Members of the for 1988
Board of Directors. (1-6364)
(10)(q) Executive Employment (10)(q) Form 10-K
Agreement dated August 1, for 1991
1991 between the Company (1-6364)
and William F. Ryan, President
and Chief Executive Officer.
- 21 -
Exhibit Incorporated by Reference From
Number Exhibit Reference Document
(11) Not Applicable
(12) Calculation of Ratio of
Earnings to Fixed Charges
(Before Federal Income
Taxes) (filed herewith).
(13) The Annual Report to
Shareholders of the Company
for the year ended December 31,
1993 is filed as an exhibit
hereto solely to the extent
portions are specifically
incorporated by reference
herein.
(16) Not Applicable
(18) Not Applicable
(21) Subsidiaries of the Registrant
(filed herewith).
(22) None
(23) Independent Auditors'
Consent (filed herewith)
(24) Power of Attorney (filed
herewith).
(99) None
- 22 -
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
SOUTH JERSEY INDUSTRIES, INC.
BY /s/ G. S. Levitt
G. S. Levitt, Vice President
Date March 23, 1994
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
Signature Title Date
/s/ William F. Ryan President and Director March 23, 1994
(William F. Ryan) (Principal Executive Officer)
/s/ G. S. Levitt Vice President March 23, 1994
(G. S. Levitt) (Principal Financial Officer)
/s/ Richard B. Tonielli Treasurer (Principal March 23, 1994
(Richard B. Tonielli) Accounting Officer)
/s/ Frank L. Bradley, Jr. Director March 23, 1994
(Frank L. Bradley, Jr.)
/s/ Richard L. Dunham Director March 23, 1994
(Richard L. Dunham)
/s/ W. Cary Edwards Director March 23, 1994
(W. Cary Edwards)
/s/ Thomas L. Glenn, Jr. Director March 23, 1994
(Thomas L. Glenn, Jr.)
/s/ Vincent E. Hoyer Director March 23, 1994
(Vincent E. Hoyer)
/s/ Herman D. James Director March 23, 1994
(Herman D. James)
/s/ Marilyn Ware Lewis Director March 23, 1994
(Marilyn Ware Lewis)
/s/ Clarence D. McCormick Director March 23, 1994
(Clarence D. McCormick)
- 23 -
/s/ Peter M. Mitchell Director March 23, 1994
(Peter M. Mitchell)
/s/ Jackson Neall Director March 23, 1994
(Jackson Neall)
/s/ Shirli M. Vioni Director March 23, 1994
(Shirli M. Vioni)
/s/ Frederick A. Westphal Director March 23, 1994
(Frederick A. Westphal)
- 24 -
INDEPENDENT AUDITORS' REPORT
South Jersey Industries, Inc.:
We have audited the consolidated financial statements of South Jersey
Industries,
Inc. and its subsidiaries as of December 31, 1993 and 1992 and for each of the
three years in the period ended December 31, 1993 and have issued our report
thereon dated February 16, 1994, which report includes an explanatory paragraph
as to the Company changing its method of accounting for income taxes, effective
January 1, 1993, to conform with Statement of Financial Standards No. 109 and
its method of accounting for postretirement benefits other than pensions,
effective January 1, 1993, to conform with Statement of Financial Accounting
Standards No. 106; such financial statements and report are included in your
1993 Annual Report to Shareholders and are incorporated herein by reference.
Our audits also included the financial statement schedules of South Jersey
Industries, Inc. and its subsidiaries, listed in Item 14. These financial
statement schedules are the responsibility of the Company's management. Our
responsibility is to express an opinion based on our audits. In our opinion,
such financial statement schedules, when considered in relation to the basic
consolidated financial statements taken as a whole, present fairly in all
material respects the information set forth therein.
DELOITTE & TOUCHE
Cherry Hill, New Jersey
February 16, 1994
- 25 -
SOUTH JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
SCHEDULE V - PROPERTY, PLANT AND EQUIPMENT*
YEAR ENDED DECEMBER 31, 1993
Col. A. Col. B. Col. C. Col. D. Col. E. Col. F.
- -----------------------------------------------------------------------------------------------------------------------
Balance at Other Changes Balance at
Beginning Additions Add (Deduct)- End
Classification of Period At Cost Retirements Describe** of Period
- -----------------------------------------------------------------------------------------------------------------------
South Jersey Industries, Inc.
Intangible $ 24,560 $ 0 $ 0 $ 0 $ 24,560
Land 1,306,447 0 400 0 1,306,047
Plant & Equipment 323,154 2,650 8,229 0 317,575
------------- ------------- ------------- ------------- ---------------
Total 1,654,161 2,650 8,629 0 1,648,182
------------- ------------- ------------- ------------- ---------------
South Jersey Gas Company
Gas Plant in Service:
Intangible 2,480,904 0 0 (74,780) 2,406,124
Production 925,011 69,706 2,116 (694) 991,907
Storage 7,603,337 106,911 51,675 22,816 7,681,389
Transmission 50,725,167 2,000,102 434,569 690,841 52,981,541
Distribution 352,309,202 22,261,237 1,329,523 5,028,218 378,269,134
General 25,884,381 6,454,347 765,828 (5,741,179) 25,831,721
------------- ------------- ------------- ------------- ---------------
439,928,002 30,892,303 2,583,711 (74,778) 468,161,816
Construction Work in Progress 2,429,350 2,475,500 0 0 4,904,850
------------- ------------- ------------- ------------- ---------------
Total Gas Plant 442,357,352 33,367,803 2,583,711 (74,778) 473,066,666
Other Property:
Land 4,702,753 301 0 0 4,703,054
Building & Equipment 198,581 0 0 (107,806) 90,775
------------- ------------- ------------- ------------- ---------------
Total 447,258,686 33,368,104 2,583,711 (182,584) 477,860,495
------------- ------------- ------------- ------------- ---------------
* See Note 1 to Consolidated Financial Statements on page 14 of the 1993 Annual Report to Shareholders for
disclosure of depreciation methods.
** Amortization of intangibles, property transfers, sales and adjustments.
- 26 -
SOUTH JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
SCHEDULE V - PROPERTY, PLANT AND EQUIPMENT*
YEAR ENDED DECEMBER 31, 1993
Col. A. Col. B. Col. C. Col. D. Col. E. Col. F.
- -----------------------------------------------------------------------------------------------------------------------
Balance at Other Changes Balance at
Beginning Additions Add (Deduct)- End
Classification of Period At Cost Retirements Describe** of Period
- -----------------------------------------------------------------------------------------------------------------------
South Jersey Energy Company
Intangible $ 219 $ 0 $ 0 $ 0 $ 219
Plant & Equipment 13,974 0 0 0 13,974
------------- ------------- ------------- ------------- ---------------
Total 14,193 0 0 0 14,193
------------- ------------- ------------- ------------- ---------------
Energy & Minerals, Inc.
Land 1,047,163 156,000 0 99,651 1,302,814
Plant & Equipment 451,265 0 152,437 0 298,828
------------- ------------- ------------- ------------- ---------------
Total 1,498,428 156,000 152,437 99,651 1,601,642
------------- ------------- ------------- ------------- ---------------
The Morie Company, Inc.
Land & Mineral Rights 4,601,808 12,385 688 (10,600) 4,602,905
Plant & Equipment 37,798,618 1,761,963 608,439 0 38,952,142
------------- ------------- ------------- ------------- ---------------
Total 42,400,426 1,774,348 609,127 (10,600) 43,555,047
------------- ------------- ------------- ------------- ---------------
S. W. Downer, Jr. Company
Land 168,000 20,712 0 0 188,712
Building & Equipment 1,946,898 198,001 40,110 0 2,104,789
------------- ------------- ------------- ------------- ---------------
Total 2,114,898 218,713 40,110 0 2,293,501
------------- ------------- ------------- ------------- ---------------
* See Note 1 to Consolidated Financial Statements on page 14 of the 1993 Annual Report to Shareholders for
disclosure of depreciation methods.
** Amortization of intangibles, property transfers, sales and adjustments.
- 27 -
SOUTH JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
SCHEDULE V - PROPERTY, PLANT AND EQUIPMENT*
YEAR ENDED DECEMBER 31, 1993
Col. A. Col. B. Col. C. Col. D. Col. E. Col. F.
- -----------------------------------------------------------------------------------------------------------------------
Balance at Other Changes Balance at
Beginning Additions Add (Deduct)- End
Classification of Period At Cost Retirements Describe** of Period
- -----------------------------------------------------------------------------------------------------------------------
R and T Castellini Company
Land $ 50,698 $ 2,850 $ 0 $ 0 $ 53,548
Building & Equipment 2,105,027 132,563 11,500 0 2,226,090
------------- ------------- ------------- ------------- ---------------
Total 2,155,725 135,413 11,500 0 2,279,638
------------- ------------- ------------- ------------- ---------------
Onshore Construction
Equipment 1,767,781 17,732 0 (24) 1,785,489
------------- ------------- ------------- ------------- ---------------
Cape Atlantic Crane
Equipment 512,281 0 20,000 0 492,281
------------- ------------- ------------- ------------- ---------------
R & T Castellini Construction Company
Equipment 0 642,446 0 0 642,446
------------- ------------- ------------- ------------- ---------------
Total South Jersey Industries, Inc.
Consolidated $499,376,579 $ 36,315,406 $ 3,425,514 $ (93,557) $ 532,172,914
============= ============= ============= ============= ===============
* See Note 1 to Consolidated Financial Statements on page 14 of the 1993 Annual Report to Shareholders for
disclosure of depreciation methods.
** Amortization of intangibles, property transfers, sales and adjustments.
- 28 -
SOUTH JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
SCHEDULE V - PROPERTY, PLANT AND EQUIPMENT*
YEAR ENDED DECEMBER 31, 1992
Col. A. Col. B. Col. C. Col. D. Col. E. Col. F.
- -----------------------------------------------------------------------------------------------------------------------
Balance at Other Changes Balance at
Beginning Additions Add (Deduct)- End
Classification of Period At Cost Retirements Describe** of Period
- -----------------------------------------------------------------------------------------------------------------------
South Jersey Industries, Inc.
Intangible $ 24,560 $ 0 $ 0 $ 0 $ 24,560
Land 1,249,299 57,548 400 0 1,306,447
Plant & Equipment 301,146 22,008 0 0 323,154
------------- ------------- ------------- ------------- ---------------
Total 1,575,005 79,556 400 0 1,654,161
------------- ------------- ------------- ------------- ---------------
South Jersey Gas Company
Gas Plant in Service:
Intangible 2,555,684 0 0 (74,780) 2,480,904
Production 918,031 6,980 0 0 925,011
Storage 7,596,869 6,162 1,749 2,055 7,603,337
Transmission 47,702,281 2,995,426 35,803 63,263 50,725,167
Distribution 328,001,148 21,749,763 1,541,870 4,100,161 352,309,202
General 23,899,932 6,664,258 515,330 (4,164,479) 25,884,381
------------- ------------- ------------- ------------- ---------------
410,673,945 31,422,589 2,094,752 (73,780) 439,928,002
Construction Work in Progress 4,198,180 (1,768,830) 0 0 2,429,350
------------- ------------- ------------- ------------- ---------------
Total Gas Plant 414,872,125 29,653,759 2,094,752 (73,780) 442,357,352
Other Property:
Land 4,693,408 9,345 0 0 4,702,753
Building & Equipment 198,581 0 0 0 198,581
------------- ------------- ------------- ------------- ---------------
Total 419,764,114 29,663,104 2,094,752 (73,780) 447,258,686
------------- ------------- ------------- ------------- ---------------
* See Note 1 to Consolidated Financial Statements on page 16 of the 1992 Annual Report to Shareholders for
disclosure of depreciation methods.
** Amortization of intangibles, property transfers, sales and adjustments.
- 29 -
SOUTH JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
SCHEDULE V - PROPERTY, PLANT AND EQUIPMENT*
YEAR ENDED DECEMBER 31, 1992
Col. A. Col. B. Col. C. Col. D. Col. E. Col. F.
- -----------------------------------------------------------------------------------------------------------------------
Balance at Other Changes Balance at
Beginning Additions Add (Deduct)- End
Classification of Period At Cost Retirements Describe** of Period
- -----------------------------------------------------------------------------------------------------------------------
South Jersey Energy Company
Intangible $ 219 $ 0 $ 0 $ 0 $ 219
Plant & Equipment 13,746 228 0 0 13,974
------------- ------------- ------------- ------------- ---------------
Total 13,965 228 0 0 14,193
------------- ------------- ------------- ------------- ---------------
Energy & Minerals, Inc.
Land 1,047,163 0 0 0 1,047,163
Intangible 2,268 0 0 (2,268) 0
Plant & Equipment 451,265 0 0 0 451,265
------------- ------------- ------------- ------------- ---------------
Total 1,500,696 0 0 (2,268) 1,498,428
------------- ------------- ------------- ------------- ---------------
The Morie Company, Inc.
Intangible 8,920 0 0 (8,920) 0
Land & Mineral Rights 4,559,753 52,655 0 (10,600) 4,601,808
Plant & Equipment 37,034,409 1,245,171 480,962 0 37,798,618
------------- ------------- ------------- ------------- ---------------
Total 41,603,082 1,297,826 480,962 (19,520) 42,400,426
------------- ------------- ------------- ------------- ---------------
* See Note 1 to Consolidated Financial Statements on page 16 of the 1992 Annual Report to Shareholders for
disclosure of depreciation methods.
** Amortization of intangibles, property transfers, sales and adjustments.
- 30 -
SOUTH JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
SCHEDULE V - PROPERTY, PLANT AND EQUIPMENT*
YEAR ENDED DECEMBER 31, 1992
Col. A. Col. B. Col. C. Col. D. Col. E. Col. F.
- -----------------------------------------------------------------------------------------------------------------------
Balance at Other Changes Balance at
Beginning Additions Add (Deduct)- End
Classification of Period At Cost Retirements Describe** of Period
- -----------------------------------------------------------------------------------------------------------------------
S. W. Downer, Jr. Company
Land $ 168,000 $ 0 $ 0 $ 0 $ 168,000
Building & Equipment 1,865,743 86,105 9,000 4,050 1,946,898
------------- ------------- ------------- ------------- ---------------
Total 2,033,743 86,105 9,000 4,050 2,114,898
------------- ------------- ------------- ------------- ---------------
R and T Castellini Company
Land 28,259 22,439 0 0 50,698
Building & Equipment 2,013,352 109,175 17,500 0 2,105,027
------------- ------------- ------------- ------------- ---------------
Total 2,041,611 131,614 17,500 0 2,155,725
------------- ------------- ------------- ------------- ---------------
Onshore Construction
Equipment 1,338,307 429,474 0 0 1,767,781
------------- ------------- ------------- ------------- ---------------
Cape Atlantic Crane
Equipment 502,318 9,963 0 0 512,281
------------- ------------- ------------- ------------- ---------------
Total South Jersey Industries, Inc.
Consolidated $470,372,841 $ 31,697,870 $ 2,602,614 $ (91,518) $ 499,376,579
============= ============= ============= ============= ===============
* See Note 1 to Consolidated Financial Statements on page 16 of the 1992 Annual Report to Shareholders for
disclosure of depreciation methods.
** Amortization of intangibles, property transfers, sales and adjustments.
- 31 -
SOUTH JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
SCHEDULE V - PROPERTY, PLANT AND EQUIPMENT*
YEAR ENDED DECEMBER 31, 1991
Col. A. Col. B. Col. C. Col. D. Col. E. Col. F.
- -----------------------------------------------------------------------------------------------------------------------
Balance at Other Changes Balance at
Beginning Additions Add (Deduct)- End
Classification of Period At Cost Retirements Describe** of Period
- -----------------------------------------------------------------------------------------------------------------------
South Jersey Industries, Inc.
Intangible $ 24,560 $ 0 $ 0 $ 0 $ 24,560
Land 1,215,916 33,783 400 0 1,249,299
Plant & Equipment 298,806 2,340 0 0 301,146
------------- ------------- ------------- ------------- ---------------
Total 1,539,282 36,123 400 0 1,575,005
------------- ------------- ------------- ------------- ---------------
South Jersey Gas Company
Gas Plant in Service:
Intangible 2,630,464 0 0 (74,780) 2,555,684
Production 880,935 23,114 1,000 14,982 918,031
Storage 7,588,188 14,165 5,890 406 7,596,869
Transmission 44,243,711 2,790,804 196 667,962 47,702,281
Distribution 302,692,199 22,713,428 1,022,232 3,617,753 328,001,148
General 22,879,981 5,786,045 479,973 (4,286,121) 23,899,932
------------- ------------- ------------- ------------- ---------------
380,915,478 31,327,556 1,509,291 (59,798) 410,673,945
Construction Work in Progress 3,303,796 894,384 0 0 4,198,180
------------- ------------- ------------- ------------- ---------------
Total Gas Plant 384,219,274 32,221,940 1,509,291 (59,798) 414,872,125
Other Property:
Land 4,689,971 3,437 0 0 4,693,408
Building & Equipment 198,581 0 0 0 198,581
------------- ------------- ------------- ------------- ---------------
Total 389,107,826 32,225,377 1,509,291 (59,798) 419,764,114
------------- ------------- ------------- ------------- ---------------
* See Note 1 to Consolidated Financial Statements on page 16 of the 1991 Annual Report to Shareholders for
disclosure of depreciation methods.
** Amortization of intangibles, property transfers, sales and adjustments.
- 32 -
SOUTH JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
SCHEDULE V - PROPERTY, PLANT AND EQUIPMENT*
YEAR ENDED DECEMBER 31, 1991
Col. A. Col. B. Col. C. Col. D. Col. E. Col. F.
- -----------------------------------------------------------------------------------------------------------------------
Balance at Other Changes Balance at
Beginning Additions Add (Deduct)- End
Classification of Period At Cost Retirements Describe** of Period
- -----------------------------------------------------------------------------------------------------------------------
South Jersey Energy Company
Intangible $ 219 $ 0 $ 0 $ 0 $ 219
Plant & Equipment 13,746 0 0 0 13,746
------------- ------------- ------------- ------------- ---------------
Total 13,965 0 0 0 13,965
------------- ------------- ------------- ------------- ---------------
Energy & Minerals, Inc.
Land 1,045,631 1,532 0 0 1,047,163
Intangible 2,268 0 0 0 2,268
Plant & Equipment 439,180 37,505 25,420 0 451,265
------------- ------------- ------------- ------------- ---------------
Total 1,487,079 39,037 25,420 0 1,500,696
------------- ------------- ------------- ------------- ---------------
The Morie Company, Inc.
Intangible 9,784 0 0 (864) 8,920
Land & Mineral Rights 4,536,302 55,921 21,870 (10,600) 4,559,753
Plant & Equipment 34,688,247 2,646,520 300,358 0 37,034,409
------------- ------------- ------------- ------------- ---------------
Total 39,234,333 2,702,441 322,228 (11,464) 41,603,082
------------- ------------- ------------- ------------- ---------------
* See Note 1 to Consolidated Financial Statements on page 16 of the 1991 Annual Report to Shareholders for
disclosure of depreciation methods.
** Amortization of intangibles, property transfers, sales and adjustments.
- 33 -
SOUTH JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
SCHEDULE V - PROPERTY, PLANT AND EQUIPMENT*
YEAR ENDED DECEMBER 31, 1991
Col. A. Col. B. Col. C. Col. D. Col. E. Col. F.
- -----------------------------------------------------------------------------------------------------------------------
Balance at Other Changes Balance at
Beginning Additions Add (Deduct)- End
Classification of Period At Cost Retirements Describe** of Period
- -----------------------------------------------------------------------------------------------------------------------
S. W. Downer, Jr. Company
Land $ 168,000 $ 0 $ 0 $ 0 $ 168,000
Building & Equipment 1,792,563 84,013 15,000 4,167 1,865,743
------------- ------------- ------------- ------------- ---------------
Total 1,960,563 84,013 15,000 4,167 2,033,743
------------- ------------- ------------- ------------- ---------------
R and T Castellini Company
Land 28,259 0 0 0 28,259
Building & Equipment 1,983,347 36,005 6,000 0 2,013,352
------------- ------------- ------------- ------------- ---------------
Total 2,011,606 36,005 6,000 0 2,041,611
------------- ------------- ------------- ------------- ---------------
Onshore Construction
Equipment 1,232,970 105,337 0 0 1,338,307
------------- ------------- ------------- ------------- ---------------
Cape Atlantic Crane
Equipment 501,495 823 0 0 502,318
------------- ------------- ------------- ------------- ---------------
Total South Jersey Industries, Inc.
Consolidated $437,089,119 $ 35,229,156 $ 1,878,339 $ (67,095) $ 470,372,841
============= ============= ============= ============= ===============
* See Note 1 to Consolidated Financial Statements on page 16 of the 1991 Annual Report to Shareholders for
disclosure of depreciation methods.
** Amortization of intangibles, property transfers, sales and adjustments.
- 34 -
SOUTH JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
SCHEDULE VI - ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION OF
PROPERTY, PLANT AND EQUIPMENT
YEAR ENDED DECEMBER 31, 1993
Col. A. Col. B. Col. C. Col. D. Col. E. Col. F.
- -------------------------------------------------------------------------------------------------------------------------
Balance at Additions Charged Other Changes Balance at
Beginning to Costs and Add (Deduct)- End
Classification of Period Expenses Retirements Describe* of Period
- -------------------------------------------------------------------------------------------------------------------------
South Jersey Industries, Inc.
Plant & Equipment $ 176,345 $ 29,758 $ 0 $ 0 $ 206,103
------------- ------------- ------------- ------------- ---------------
South Jersey Gas Company **
Gas Plant in Service:
Production 77,925 46,172 2,116 919 122,900
Storage 4,271,279 332,210 51,675 (5,090) 4,546,724
Transmission 16,787,280 1,463,103 434,569 (1,962) 17,813,852
Distribution 89,126,837 9,754,665 1,329,523 (640,781) 96,911,198
General 7,072,396 967,214 765,828 53,870 7,327,652
------------- ------------- ------------- ------------- ---------------
Total 117,335,717 12,563,364 2,583,711 (593,044) 126,722,326
Other Property 73,882 0 0 (73,882) 0
------------- ------------- ------------- ------------- ---------------
Total 117,409,599 12,563,364 2,583,711 (666,926) 126,722,326
------------- ------------- ------------- ------------- ---------------
South Jersey Energy Company
Plant & Equipment 8,350 2,428 0 0 10,778
------------- ------------- ------------- ------------- ---------------
* Transfers, cost of removal of utility plant and salvage.
** Certain reclassifications have been made of prevously reported amounts to conform with
classifications used in the current year.
- 35 -
SOUTH JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
SCHEDULE VI - ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION OF
PROPERTY, PLANT AND EQUIPMENT
YEAR ENDED DECEMBER 31, 1993
Col. A. Col. B. Col. C. Col. D. Col. E. Col. F.
- -------------------------------------------------------------------------------------------------------------------------
Balance at Additions Charged Other Changes Balance at
Beginning to Costs and Add (Deduct)- End
Classification of Period Expenses Retirements Describe* of Period
- -------------------------------------------------------------------------------------------------------------------------
Energy & Minerals, Inc.
Plant & Equipment $ 55,193 $ 25,888 $ 27,938 $ (1,920) $ 51,223
------------- ------------- ------------- ------------- ---------------
The Morie Company, Inc.
Land & Minerals Rights 1,021,588 118,082 0 0 1,139,670
Building & Equipment 23,666,834 2,803,590 585,105 (202,148) 25,683,171
------------- ------------- ------------- ------------- ---------------
Total 24,688,422 2,921,672 585,105 (202,148) 26,822,841
------------- ------------- ------------- ------------- ---------------
S. W. Downer, Jr. Company
Building & Equipment 758,755 215,970 23,813 0 950,912
------------- ------------- ------------- ------------- ---------------
* Transfers, cost of removal of utility plant and salvage.
- 36 -
SOUTH JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
SCHEDULE VI - ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION OF
PROPERTY, PLANT AND EQUIPMENT
YEAR ENDED DECEMBER 31, 1993
Col. A. Col. B. Col. C. Col. D. Col. E. Col. F.
- -------------------------------------------------------------------------------------------------------------------------
Balance at Additions Charged Other Changes Balance at
Beginning to Costs and Add (Deduct)- End
Classification of Period Expenses Retirements Describe* of Period
- -------------------------------------------------------------------------------------------------------------------------
R and T Castellini Company
Building & Equipment $ 862,942 $ 229,311 $ 11,500 $ 0 $ 1,080,753
------------- ------------- ------------- ------------- ---------------
Onshore Construction
Equipment 471,028 199,223 0 0 670,251
------------- ------------- ------------- ------------- ---------------
Cape Atlantic Crane
Equipment 182,909 57,340 7,000 0 233,249
------------- ------------- ------------- ------------- ---------------
R & T Castellini Construction Company
Equipment 0 38,267 0 0 38,267
------------- ------------- ------------- ------------- ---------------
Total South Jersey Industries, Inc.
Consolidated $144,613,543 $ 16,283,221 $ 3,239,067 $ (870,994) $ 156,786,703
============= ============= ============= ============= ===============
* Transfers, cost of removal of utility plant and salvage.
- 37 -
SOUTH JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
SCHEDULE VI - ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION OF
PROPERTY, PLANT AND EQUIPMENT
YEAR ENDED DECEMBER 31, 1992
Col. A. Col. B. Col. C. Col. D. Col. E. Col. F.
- -------------------------------------------------------------------------------------------------------------------------
Balance at Additions Charged Other Changes Balance at
Beginning to Costs and Add (Deduct)- End
Classification of Period Expenses Retirements Describe* of Period
- -------------------------------------------------------------------------------------------------------------------------
South Jersey Industries, Inc.
Plant & Equipment $ 147,256 $ 29,089 $ 0 $ 0 $ 176,345
------------- ------------- ------------- ------------- ---------------
South Jersey Gas Company **
Gas Plant in Service:
Production 53,667 14,625 0 9,633 77,925
Storage 3,955,892 329,813 1,749 (12,677) 4,271,279
Transmission 15,449,479 1,399,175 35,803 (25,571) 16,787,280
Distribution 82,101,801 9,016,997 1,541,870 (450,091) 89,126,837
General 6,649,491 904,286 515,330 33,949 7,072,396
------------- ------------- ------------- ------------- ---------------
Total 108,210,330 11,664,896 2,094,752 (444,757) 117,335,717
Other Property 73,882 0 0 0 73,882
------------- ------------- ------------- ------------- ---------------
Total 108,284,212 11,664,896 2,094,752 (444,757) 117,409,599
------------- ------------- ------------- ------------- ---------------
South Jersey Energy Company
Plant & Equipment 5,926 2,424 0 0 8,350
------------- ------------- ------------- ------------- ---------------
* Transfers, cost of removal of utility plant and salvage.
** Certain reclassifications have been made of prevously reported amounts to conform with
classifications used in the current year.
- 38 -
SOUTH JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
SCHEDULE VI - ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION OF
PROPERTY, PLANT AND EQUIPMENT
YEAR ENDED DECEMBER 31, 1992
Col. A. Col. B. Col. C. Col. D. Col. E. Col. F.
- -------------------------------------------------------------------------------------------------------------------------
Balance at Additions Charged Other Changes Balance at
Beginning to Costs and Add (Deduct)- End
Classification of Period Expenses Retirements Describe* of Period
- -------------------------------------------------------------------------------------------------------------------------
Energy & Minerals, Inc.
Plant & Equipment $ 31,085 $ 24,108 $ 0 $ 0 $ 55,193
------------- ------------- ------------- ------------- ---------------
The Morie Company, Inc.
Land & Minerals Rights 913,728 107,860 0 0 1,021,588
Building & Equipment 21,662,710 2,720,336 508,877 (207,335) 23,666,834
------------- ------------- ------------- ------------- ---------------
Total 22,576,438 2,828,196 508,877 (207,335) 24,688,422
------------- ------------- ------------- ------------- ---------------
S. W. Downer, Jr. Company
Building & Equipment 514,956 248,749 4,950 0 758,755
------------- ------------- ------------- ------------- ---------------
* Transfers, cost of removal of utility plant and salvage.
- 39 -
SOUTH JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
SCHEDULE VI - ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION OF
PROPERTY, PLANT AND EQUIPMENT
YEAR ENDED DECEMBER 31, 1992
Col. A. Col. B. Col. C. Col. D. Col. E. Col. F.
- -------------------------------------------------------------------------------------------------------------------------
Balance at Additions Charged Other Changes Balance at
Beginning to Costs and Add (Deduct)- End
Classification of Period Expenses Retirements Describe* of Period
- -------------------------------------------------------------------------------------------------------------------------
R and T Castellini Company
Building & Equipment $ 604,104 $ 274,143 $ 15,305 $ 0 $ 862,942
------------- ------------- ------------- ------------- ---------------
Onshore Construction
Equipment 285,528 185,500 0 0 471,028
------------- ------------- ------------- ------------- ---------------
Cape Atlantic Crane
Equipment 124,441 58,468 0 0 182,909
------------- ------------- ------------- ------------- ---------------
Total South Jersey Industries, Inc.
Consolidated $132,573,946 $ 15,315,573 $ 2,623,884 $ (652,092) $ 144,613,543
============= ============= ============= ============= ===============
* Transfers, cost of removal of utility plant and salvage.
- 40 -
SOUTH JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
SCHEDULE VI - ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION OF
PROPERTY, PLANT AND EQUIPMENT
YEAR ENDED DECEMBER 31, 1991
Col. A. Col. B. Col. C. Col. D. Col. E. Col. F.
- -------------------------------------------------------------------------------------------------------------------------
Balance at Additions Charged Other Changes Balance at
Beginning to Costs and Add (Deduct)- End
Classification of Period Expenses Retirements Describe* of Period
- -------------------------------------------------------------------------------------------------------------------------
South Jersey Industries, Inc.
Plant & Equipment $ 119,761 $ 27,495 $ 0 $ 0 $ 147,256
------------- ------------- ------------- ------------- ---------------
South Jersey Gas Company **
Gas Plant in Service:
Production 25,274 14,411 (1,000) 12,982 53,667
Storage 3,634,051 328,666 5,890 (935) 3,955,892
Transmission 14,210,834 1,242,766 196 (3,925) 15,449,479
Distribution 75,253,371 8,331,574 1,022,232 (460,912) 82,101,801
General 6,219,006 861,715 479,973 48,743 6,649,491
------------- ------------- ------------- ------------- ---------------
Total 99,342,536 10,779,132 1,507,291 (404,047) 108,210,330
Other Property 73,882 0 0 0 73,882
------------- ------------- ------------- ------------- ---------------
Total 99,416,418 10,779,132 1,507,291 (404,047) 108,284,212
------------- ------------- ------------- ------------- ---------------
South Jersey Energy Company
Plant & Equipment 3,544 2,382 0 0 5,926
------------- ------------- ------------- ------------- ---------------
* Transfers, cost of removal of utility plant and salvage.
** Certain reclassifications have been made of prevously reported amounts to conform with
classifications used in the current year.
- 41 -
SOUTH JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
SCHEDULE VI - ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION OF
PROPERTY, PLANT AND EQUIPMENT
YEAR ENDED DECEMBER 31, 1991
Col. A. Col. B. Col. C. Col. D. Col. E. Col. F.
- -------------------------------------------------------------------------------------------------------------------------
Balance at Additions Charged Other Changes Balance at
Beginning to Costs and Add (Deduct)- End
Classification of Period Expenses Retirements Describe* of Period
- -------------------------------------------------------------------------------------------------------------------------
Energy & Minerals, Inc.
Plant & Equipment $ 31,456 $ 24,642 $ 23,093 $ (1,920) $ 31,085
------------- ------------- ------------- ------------- ---------------
The Morie Company, Inc.
Land & Minerals Rights 810,512 103,216 0 0 913,728
Building & Equipment 19,408,747 2,721,104 287,722 (179,419) 21,662,710
------------- ------------- ------------- ------------- ---------------
Total 20,219,259 2,824,320 287,722 (179,419) 22,576,438
------------- ------------- ------------- ------------- ---------------
S. W. Downer, Jr. Company
Building & Equipment 280,235 245,554 10,833 0 514,956
------------- ------------- ------------- ------------- ---------------
* Transfers, cost of removal of utility plant and salvage.
- 42 -
SOUTH JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
SCHEDULE VI - ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION OF
PROPERTY, PLANT AND EQUIPMENT
YEAR ENDED DECEMBER 31, 1991
Col. A. Col. B. Col. C. Col. D. Col. E. Col. F.
- -------------------------------------------------------------------------------------------------------------------------
Balance at Additions Charged Other Changes Balance at
Beginning to Costs and Add (Deduct)- End
Classification of Period Expenses Retirements Describe* of Period
- -------------------------------------------------------------------------------------------------------------------------
R and T Castellini Company
Building & Equipment $ 326,084 $ 281,687 $ 3,667 $ 0 $ 604,104
------------- ------------- ------------- ------------- ---------------
Onshore Construction
Equipment 132,069 153,459 0 0 285,528
------------- ------------- ------------- ------------- ---------------
Cape Atlantic Crane
Equipment 66,224 58,217 0 0 124,441
------------- ------------- ------------- ------------- ---------------
Total South Jersey Industries, Inc.
Consolidated $120,595,050 $ 14,396,888 $ 1,832,606 $ (585,386) $ 132,573,946
============= ============= ============= ============= ===============
* Transfers, cost of removal of utility plant and salvage.
- 43 -
SOUTH JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
SCHEDULE VIII - VALUATION AND QUALIFYING ACCOUNTS
Col. A. Col. B. Col. C. Col. D. Col. E.
- ----------------------------------------------------------------------------------------------------------------------
Additions
-------
(1) (2)
Charged to
Balance at Charged to Other Balance at
Beginning Costs and Accounts- Deductions- End
Classification of Period Expenses Describe * Describe ** of Period
- ----------------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31, 1993
Provision for Uncollectible Accounts $ 1,071,200 $ 912,929 $ 320,337 $ 1,278,137 $ 1,026,329
YEAR ENDED DECEMBER 31, 1992
Provision for Uncollectible Accounts $ 1,162,200 $ 1,090,310 $ 562,613 $ 1,743,923 $ 1,071,200
YEAR ENDED DECEMBER 31, 1991
Provision for Uncollectible Accounts $ 1,062,200 $ 1,271,586 $ 352,685 $ 1,524,271 $ 1,162,200
* Recoveries of accounts previously written off and minor adjustments.
** Uncollectible accounts written off.
- 44 -
SOUTH JERSEY INDUSTRIES, INC. AND SUBSIDIARIES
SCHEDULE IX - SHORT-TERM BORROWINGS
Col. A. Col. B. Col. C. Col. D. Col. E. Col. F.
- ------------------------------------------------------------------------------------------------------------------------------------
Weighted
Category of Weighted Maximum Amount Average Amount Average
Aggregate Balance Average Outstanding Outstanding Interest
Short-Term at End Interest During During Rate During
Borrowing* of Period Rate the Period the Period** the Period***
- ------------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31, 1993
Notes Payable to Banks $ 82,750,000 3.48% $ 90,600,000 $ 67,682,000 3.41%
YEAR ENDED DECEMBER 31, 1992
Notes Payable to Banks $ 61,100,000 3.81% $ 70,900,000 $ 47,200,000 4.32%
YEAR ENDED DECEMBER 31, 1991
Notes Payable to Banks $ 70,600,000 5.95% $ 72,700,000 $ 46,998,000 6.4%
* Unsecured promissory notes with maturities of less than one year.
** Computed using daily balances.
*** Computed by dividing total interest on short-term debt by average debt outstanding.
- 45 -
SOUTH JERSEY INDUSTRIES, INC.
NUMBER ONE SOUTH JERSEY PLAZA
ROUTE 54
FOLSOM, NEW JERSEY 08037
FORM 10-K FYE 12/31/93
EXHIBIT INDEX
Incorporated by
Reference From
Reference Reference
Number Description of Exhibit Exhibit Document
(3)(a)(i) Certificate of Incorporation (4)(a) Form S-2
of the Company, as amended (2-91515)
through April 19, 1984.
(3)(a)(ii) Amendment to Certificate of (4)(e)(1) Form S-3
Incorporation relating to (33-1320)
two-for-one stock split
effective as of April 28,
1987.
(3)(a)(iii) Amendment to Certificate of (4)(e)(2) Form S-3
Incorporation relating to (33-1320)
director and officer
liability.
(3)(b) Bylaws of the Company as (3)(c) Form 10-K
amended and restated for 1990
through October 1, 1990. (1-6364)
(4)(a) Form of Stock Certificate (4)(a) Form 10-K
for common stock. for 1985
(1-6364)
(4)(b)(i) First Mortgage Indenture (4)(b)(i) Form 10-K
dated October 1, 1947 for 1987
(1-6364)
(4)(b)(vi) Form of South Jersey Gas (4)(b)(vi) Form 10-K
Company First Mortgage for 1980
Bond, 7-7/8% Series due 1994. (1-6364)
(4)(b)(vii) Form of South Jersey Gas (4)(b)(vii) Form 10-K
Company First Mortgage for 1980
Bond, 8-1/4% Series due 1996. (1-6364)
(4)(b)(viii) Form of South Jersey Gas (4)(b)(viii) Form 10-K
Company First Mortgage for 1980
Bond, 8-1/4% Series due 1998. (1-6364)
(4)(b)(x) Twelfth Supplemental Inden- 5(b) Form S-7
ture, dated as of June 1, (2-68038)
1980.
SOUTH JERSEY INDUSTRIES, INC.
NUMBER ONE SOUTH JERSEY PLAZA
ROUTE 54
FOLSOM, NEW JERSEY 08037
FORM 10-K FYE 12/31/93
EXHIBIT INDEX
Incorporated by
Reference From
Reference Reference
Number Description of Exhibit Exhibit Document
(4)(b)(xii) Fifteenth Supplemental (4)(b)(xiii) Form 10-K
Indenture, dated July 1, for 1986
1986, 9.2% Series due 1998. (1-6364)
(4)(b)(xiv) Sixteenth Supplemental (4)(b)(xv) Form 10-Q
Indenture dated as of for quarter
April 1, 1988, 10-1/4% ended
Series due 2008. March 31,
1988 (1-6364)
(4)(b)(xv) Seventeenth Supplemental (4)(b)(xv) Form 10-K
Indenture dated as of for 1989
May 1, 1989. (1-6364)
(4)(b)(xvi) Eighteenth Supplemental (4)(e) Form S-3
Indenture, dated as of (33-36581)
March 1, 1990.
(4)(b)(xvii) Nineteenth Supplemental Form 10-K
Indenture, dated as of for 1992
April 1, 1992. (1-6364)
(4)(b)(xviii) Twentieth Supplemental
Indenture, dated as of
June 1, 1993.
(filed herewith)
(9) None
(10)(d) Gas storage agreement GSS
between South Jersey Gas
Company and Transco,
dated October 1, 1993.
(filed herewith)
(10)(e) Gas storage agreement (5)(h) Form S-7
between South Jersey Gas (2-56223)
Company and Transco,
dated December 16, 1953.
SOUTH JERSEY INDUSTRIES, INC.
NUMBER ONE SOUTH JERSEY PLAZA
ROUTE 54
FOLSOM, NEW JERSEY 08037
FORM 10-K FYE 12/31/93
EXHIBIT INDEX
Incorporated by
Reference From
Reference Reference
Number Description of Exhibit Exhibit Document
(10)(f) Gas storage agreement (5)(f) Form S-7
between South Jersey Gas (2-56223)
Company and Transco,
dated June 3, 1974.
(10)(h) Gas storage agreement (WSS) (10)(h) Form 10-K
between South Jersey Gas for 1991
Company and Transco dated (1-6364)
August 1, 1991.
(10)(i) Gas storage agreement (LSS)
between South Jersey Gas
Company and Transco,
dated October 31, 1993.
(filed herewith)
(10)(i)(a) Gas storage and sales (10)(i)(a) Form 10-K
agreement between South for 1988
Jersey Gas Company and (1-6364)
Transco, dated May 10,
1987 (effective April 1, 1988).
(10)(i)(b) Gas storage agreement (ESS)
between South Jersey Gas
Company and Transco,
dated November 1, 1993.
(filed herewith)
(10)(i)(c) Gas Transportation Service (10)(i)(c) Form 10-K
Agreement between South for 1989
Jersey Gas Company and (1-6364)
Transco, dated April 1,
1986.
(10)(i)(e) Service agreement (FS) (10)(i)(e) Form 10-K
between South Jersey Gas for 1991
Company and Transco, (1-6364)
dated August 1, 1991.
SOUTH JERSEY INDUSTRIES, INC.
NUMBER ONE SOUTH JERSEY PLAZA
ROUTE 54
FOLSOM, NEW JERSEY 08037
FORM 10-K FYE 12/31/93
EXHIBIT INDEX
Incorporated by
Reference From
Reference Reference
Number Description of Exhibit Exhibit Document
(10)(i)(f) Service agreement (FT) between (10)(i)(f) Form 10-K
South Jersey Gas Company for 1991
and Transco, dated February 1, (1-6364)
1992.
(10)(i)(g) Service agreement (Incremental (10)(i)(g) Form 10-K
FT) between South Jersey Gas for 1991
Company and Transco, dated (1-6364)
August 1, 1991.
(10)(i)(i) Gas storage agreement (SS-2) (10)(i)(i) Form 10-K
between South Jersey Gas for 1991
Company and Transco, dated (1-6364)
July 25, 1990.
(10)(i)(j) Gas Transportation Service
Agreement between South
Jersey Gas Company and Transco,
dated December 20, 1991.
(filed herewith)
(10)(i)(k) Amendment to Gas Transportation
Agreement, dated December 20,
1991 between South Jersey Gas
Company and Transco, dated
October 5, 1993.
(filed herewith)
(10)(j)(a) Gas Transportation Service (10)(j)(a) Form 10-K
Agreement (FTS) between South for 1989
Jersey Gas Company and (1-6364)
Equitable Gas Company,
dated November 1, 1986.
(10)(k)(h) Gas Transportation Service (10)(k)(h) Form 10-K
Agreement (TF) between South for 1989
Jersey Gas Company and (1-6364)
Consolidated Gas Trans-
mission Corporation, dated
November 21, 1987.
SOUTH JERSEY INDUSTRIES, INC.
NUMBER ONE SOUTH JERSEY PLAZA
ROUTE 54
FOLSOM, NEW JERSEY 08037
FORM 10-K FYE 12/31/93
EXHIBIT INDEX
Incorporated by
Reference From
Reference Reference
Number Description of Exhibit Exhibit Document
(10)(k)(i) Gas purchase agreement (10)(k)(i) Form 10-K
between South Jersey Gas for 1989
Company and ARCO Gas Market- (1-6364)
ing, Inc., dated March 5, 1990.
(10)(k)(k) Gas Transportation Service
Agreement (FTS 1) between
South Jersey Gas Company and
Columbia Gulf Transmission
Company, dated November 1,
1993.
(filed herewith)
(10)(k)(l) Assignment Agreement
capacity and service rights
(FTS-2) between South Jersey
Gas Company and Columbia
Gulf Transmission Company,
dated November 1, 1993.
(filed herewith)
(10)(k)(m) FTS Service Agreement
No. 39556 between South
Jersey Gas Company and
Columbia Gas Transmission
Corporation, dated
November 1, 1993.
(filed herewith)
(10)(k)(n) FTS Service Agreement
No. 38099 between South
Jersey Gas Company and
Columbia Gas Transmission
Corporation, dated
November 1, 1993.
(filed herewith)
SOUTH JERSEY INDUSTRIES, INC.
NUMBER ONE SOUTH JERSEY PLAZA
ROUTE 54
FOLSOM, NEW JERSEY 08037
FORM 10-K FYE 12/31/93
EXHIBIT INDEX
Incorporated by
Reference From
Reference Reference
Number Description of Exhibit Exhibit Document
(10)(k)(o) NTS Service Agreement
No. 39305 between South
Jersey Gas Company and
Columbia Gas Transmission
Corporation, dated
November 1, 1993.
(filed herewith)
(10)(k)(p) FSS Service Agreement
No. 38130 between South
Jersey Gas Company and
Columbia Gas Transmission
Corporation, dated
November 1, 1993.
(filed herewith)
(10)(k)(q) SST Service Agreement
No. 38086 between South
Jersey Gas Company and
Columbia Gas Transmission
Corporation, dated
November 1, 1993.
(filed herewith)
(10)(l) Deferred Payment Plan for (10)(l) Form 10-K
Directors of South Jersey for 1986
Industries, Inc., South (1-6364)
Jersey Gas Company and
Energy & Minerals, Inc.
as amended and restated
August 22, 1986.
(10)(l)(a) Form of Deferred Compen- (10)(j)(a) Form 10-K
sation Agreement between for 1980
the Company and/or a sub- (1-6364)
sidiary and eleven of its
officers.
(10)(l)(b) Schedule of Deferred Com- (10)(l)(b) Form 10-K
pensation Agreements. for 1992
(1-6364)
SOUTH JERSEY INDUSTRIES, INC.
NUMBER ONE SOUTH JERSEY PLAZA
ROUTE 54
FOLSOM, NEW JERSEY 08037
FORM 10-K FYE 12/31/93
EXHIBIT INDEX
Incorporated by
Reference From
Reference Reference
Number Description of Exhibit Exhibit Document
(10)(l)(c) Supplemental Executive (10)(l)(c) Form 10-K
Retirement Program, as for 1992
amended and restated ef- (1-6364)
fective September 1, 1991,
and form of Agreement
between certain Company
or subsidiary Company
officers.
(10)(l)(d) Form of Officer Employment (10)(i)(d) Form 10-K
Agreement between certain for 1991
officers and either the Company (1-6364)
or its Subsidiaries.
(10)(l)(e) Schedule of Officer (10)(i)(e) Form 10-K
Employment Agreements. for 1991
(1-6364)
(10)(l)(f) Officer Severance Benefit (10)(l)(g) Form 10-K
Program for all officers. for 1985
(1-6364)
(10)(l)(g) Discretionary Incentive (10(l)(h) Form 10-K
Bonus Program for all for 1985
officers and management (1-6364)
employees.
(10)(l)(h) The 1987 Stock Option and (10)(l)(i) Form 10-K
Stock Appreciation Rights for 1987
Plan including Form of (1-6364)
Agreement.
(10)(p) Retirement Plan for Non- (10)(p) Form 10-K
employee Members of the for 1988
Board of Directors. (1-6364)
(10)(q) Executive Employment Agreement (10)(q) Form 10-K
dated August 1, 1991 between the for 1991
Company and William F. Ryan, (1-6364)
President and Chief Executive
Officer.
SOUTH JERSEY INDUSTRIES, INC.
NUMBER ONE SOUTH JERSEY PLAZA
ROUTE 54
FOLSOM, NEW JERSEY 08037
FORM 10-K FYE 12/31/93
EXHIBIT INDEX
Incorporated by
Reference From
Reference Reference
Number Description of Exhibit Exhibit Document
(11) Not Applicable
(12) Calculation of Ratio of Earnings to Fixed Charges
(Before Federal Income
Taxes) (filed herewith).
(13) The Annual Report to Shareholders
of the Company for the year
ended December 31, 1993 is
filed as an exhibit hereto
solely to the extent portions
are specifically incorporated
by reference herein.
(16) Not Applicable
(18) Not Applicable
(21) Subsidiaries of the Registrant.
(filed herewith)
(22) None
(23) Independent Auditors' Consent
(filed herewith)
(24) Power of Attorney
(filed herewith)
(99) None