----

----

| S | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------|

| £ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|

| New Jersey                     | 21-0398330                        |
|--------------------------------|-----------------------------------|
|  (State of incorporation) | (IRS employer identification no.) |

| Large accelerated filer | £                                               | Accelerated filer         | £ |
|-------------------------|------------------------------------------------------|---------------------------|--------|
| Non-accelerated filer   | S (Do not check if a smaller reporting company) | Smaller reporting company | £ |

----

----

----

----

|                                   |   | Three Months Ended |   |
|----------------------------------------|--------|--------------------|--------|
|                                   |   | June 30,      |   |
|                                   |   | 2009               |   |   | 2008 |   |
|                                   |   |               |   |   |   |   |
|                                   |   |               |   |   |   |   |
| Operating Revenues                     |   | $                  | 64,835 |   |   | $ | 93,571 |   |
|                                   |   |               |   |   |   |   |   |   |
| Operating Expenses:                    |   |               |   |   |   |   |   |   |
| Cost of Sales (Excluding depreciation) |   |               | 29,905 |   |   |   | 60,263 |   |
| Operations                             |   |               | 16,007 |   |   |   | 13,531 |   |
| Maintenance                            |   |               | 1,705  |   |   |   | 1,635 |   |
| Depreciation                           |   |               | 6,549  |   |   |   | 6,350 |   |
| Energy and Other Taxes                 |   |               | 1,746  |   |   |   | 1,711 |   |
|                                   |   |               |   |   |   |   |   |   |
| Total Operating Expenses               |   |               | 55,912 |   |   |   | 83,490 |   |
|                                   |   |               |   |   |   |   |   |   |
| Operating Income                       |   |               | 8,923  |   |   |   | 10,081 |   |
|                                   |   |               |   |   |   |   |   |   |
| Other Income and Expense               |   |               | 358    |   |   |   | 457 |   |
|                                   |   |               |   |   |   |   |   |   |
| Interest Charges                       |   |               | (4,152 | ) |   |   | (4,618 | ) |
|                                   |   |               |   |   |   |   |   |   |
| Income Before Income Taxes             |   |               | 5,129  |   |   |   | 5,920 |   |
|                                   |   |               |   |   |   |   |   |   |
| Income Taxes                           |   |               | (2,102 | ) |   |   | (2,482 | ) |
|                                   |   |               |   |   |   |   |   |   |
| Net Income                             |   | $                  | 3,027  |   |   | $ | 3,438 |   |

----

|                                   |   | Six Months Ended |    |
|----------------------------------------|--------|------------------|---------|
|                                   |   | June 30,         |    |
|                                   |   | 2009             |    |   | 2008 |   |
|                                   |   |             |    |   |   |   |
|                                   |   |             |    |   |   |   |
| Operating Revenues                     |   | $                | 307,948 |   |   | $ | 331,475 |   |
|                                   |   |             |    |   |   |   |   |   |
| Operating Expenses:                    |   |             |    |   |   |   |   |   |
| Cost of Sales (Excluding depreciation) |   |             | 195,882 |   |   |   | 223,180 |   |
| Operations                             |   |             | 33,367  |   |   |   | 28,656 |   |
| Maintenance                            |   |             | 3,861   |   |   |   | 3,487 |   |
| Depreciation                           |   |             | 13,182  |   |   |   | 12,655 |   |
| Energy and Other Taxes                 |   |             | 6,367   |   |   |   | 6,068 |   |
|                                   |   |             |    |   |   |   |   |   |
| Total Operating Expenses               |   |             | 252,659 |   |   |   | 274,046 |   |
|                                   |   |             |    |   |   |   |   |   |
| Operating Income                       |   |             | 55,289  |   |   |   | 57,429 |   |
|                                   |   |             |    |   |   |   |   |   |
| Other Income and Expense               |   |             | 682     |   |   |   | 627 |   |
|                                   |   |             |    |   |   |   |   |   |
| Interest Charges                       |   |             | (8,249  | ) |   |   | (9,593 | ) |
|                                   |   |             |    |   |   |   |   |   |
| Income Before Income Taxes             |   |             | 47,722  |   |   |   | 48,463 |   |
|                                   |   |             |    |   |   |   |   |   |
| Income Taxes                           |   |             | (19,717 | ) |   |   | (20,012 | ) |
|                                   |   |             |    |   |   |   |   |   |
| Net Income                             |   | $                | 28,005  |   |   | $ | 28,451 |   |

----

SOUTH JERSEY GAS COMPANY 

|                                                    |   | Three Months Ended |   |
|---------------------------------------------------------|--------|--------------------|--------|
|                                                    |   | June 30,           |   |
|                                                    |   | 2009               |   |   | 2008 |   |
|                                                    |   |               |   |   |   |   |
|                                                    |   |               |   |   |   |   |
|                                                    |   |               |   |   |   |   |
| Net Income                                              |   | $                  | 3,027  |   |   | $ | 3,438 |   |
|                                                    |   |               |   |   |   |   |   |   |
| Other Comprehensive Income  - Net of Tax:     |   |               |   |   |   |   |   |   |
|                                                    |   |               |   |   |   |   |   |   |
| Unrealized Gain (Loss) on Available-for-Sale Securities |   |               | 266    |   |   |   | (43 | ) |
| Unrealized Gain on Derivatives - Other                  |   |               | 7      |   |   |   | 372 |   |
|                                                    |   |               |   |   |   |   |   |   |
| Other Comprehensive Income - Net of Tax *               |   |               | 273    |   |   |   | 329 |   |
|                                                    |   |               |   |   |   |   |   |   |
| Comprehensive Income                                    |   | $                  | 3,300  |   |   | $ | 3,767 |   |
|                                                    |   |               |   |   |   |   |   |   |
|                                                    |   |               |   |   |   |   |   |   |
|                                                    |   | Six Months Ended   |   |
|                                                    |   | June 30,           |   |
|                                                    |   | 2009               |   |   | 2008 |   |
|                                                    |   |               |   |   |   |   |   |   |
| Net Income                                              |   | $                  | 28,005 |   |   | $ | 28,451 |   |
|                                                    |   |               |   |   |   |   |   |   |
| Other Comprehensive Income  - Net of Tax:     |   |               |   |   |   |   |   |   |
|                                                    |   |               |   |   |   |   |   |   |
| Unrealized Gain (Loss) on Available-for-Sale Securities |   |               | 96     |   |   |   | (280 | ) |
| Unrealized Gain on Derivatives - Other                  |   |               | 14     |   |   |   | 378 |   |
|                                                    |   |               |   |   |   |   |   |   |
| Other Comprehensive Income - Net of Tax *               |   |               | 110    |   |   |   | 98 |   |
|                                                    |   |               |   |   |   |   |   |   |
| Comprehensive Income                                    |   | $                  | 28,115 |   |   | $ | 28,549 |   |

----

SOUTH JERSEY GAS COMPANY 

|                                                           |   | Six Months Ended |    |
|----------------------------------------------------------------|--------|------------------|---------|
|                                                           |   | June 30,         |    |
|                                                           |   | 2009             |    |   | 2008 |   |
|                                                           |   |             |    |   |   |   |
|                                                           |   |             |    |   |   |   |
| Net Cash Provided by Operating Activities                      |   | $                | 59,993  |   |   | $ | 63,089 |   |
|                                                           |   |             |    |   |   |   |   |   |
| Cash Flows from Investing Activities:                          |   |             |    |   |   |   |   |   |
| Capital Expenditures                                           |   |             | (34,318 | ) |   |   | (22,737 | ) |
| Investment in Long-Term Receivables                            |   |             | (2,791  | ) |   |   | (1,583 | ) |
| Proceeds from Long-Term Receivables                            |   |             | 3,341   |   |   |   | 1,891 |   |
| Purchase of Restricted Investments with Escrowed Loan Proceeds |   |             | -       |   |   |   | (27 | ) |
|                                                           |   |             |    |   |   |   |   |   |
| Net Cash Used in Investing Activities                          |   |             | (33,768 | ) |   |   | (22,456 | ) |
|                                                           |   |             |    |   |   |   |   |   |
| Cash Flows from Financing Activities:                          |   |             |    |   |   |   |   |   |
| Net Repayments of Lines of Credit                              |   |             | (23,150 | ) |   |   | (8,340 | ) |
| Principal Repayments of Long-Term Debt                         |   |             | (17     | ) |   |   | (25,000 | ) |
| Dividends on Common Stock                                      |   |             | (2,500  | ) |   |   | (4,933 | ) |
| Excess Tax Benefit from Restricted Stock Plan                  |   |             | -       |   |   |   | 236 |   |
|                                                           |   |             |    |   |   |   |   |   |
| Net Cash Used in Financing Activities                          |   |             | (25,667 | ) |   |   | (38,037 | ) |
|                                                           |   |             |    |   |   |   |   |   |
| Net Increase in Cash and Cash Equivalents                      |   |             | 558     |   |   |   | 2,596 |   |
| Cash and Cash Equivalents at Beginning of Period               |   |             | 2,228   |   |   |   | 3,230 |   |
|                                                           |   |             |    |   |   |   |   |   |
| Cash and Cash Equivalents at End of Period                     |   | $                | 2,786   |   |   | $ | 5,826 |   |

----

SOUTH JERSEY GAS COMPANY 

|                                         |   | June 30, |      |   | December 31, |   |
|----------------------------------------------|--------|----------|-----------|--------|--------------|--------|
|                                         |   | 2009     |      |   | 2008         |   |
| Assets                                       |   |     |      |   |         |   |
|                                         |   |     |      |   |         |   |
| Property, Plant and Equipment:               |   |     |      |   |         |   |
| Utility Plant, at original cost              |   | $        | 1,201,285 |   |         | $      | 1,172,014 |   |
| Accumulated Depreciation                     |   |     | (303,902  | )      |         |   | (295,432 | ) |
|                                         |   |     |      |   |         |   |   |   |
| Property, Plant and Equipment - Net          |   |     | 897,383   |   |         |   | 876,582 |   |
|                                         |   |     |      |   |         |   |   |   |
| Investments:                                 |   |     |      |   |         |   |   |   |
| Available-for-Sale Securities                |   |     | 5,074     |   |         |   | 4,841 |   |
| Restricted Investments                       |   |     | 132       |   |         |   | 132 |   |
|                                         |   |     |      |   |         |   |   |   |
| Total Investments                            |   |     | 5,206     |   |         |   | 4,973 |   |
|                                         |   |     |      |   |         |   |   |   |
| Current Assets:                              |   |     |      |   |         |   |   |   |
| Cash and Cash Equivalents                    |   |     | 2,786     |   |         |   | 2,228 |   |
| Accounts Receivable                          |   |     | 84,135    |   |         |   | 47,787 |   |
| Accounts Receivable - Related Parties        |   |     | 1,872     |   |         |   | 624 |   |
| Unbilled Revenues                            |   |     | 5,636     |   |         |   | 48,225 |   |
| Provision for Uncollectibles                 |   |     | (4,327    | )      |         |   | (3,628 | ) |
| Natural Gas in Storage, average cost         |   |     | 24,221    |   |         |   | 65,252 |   |
| Materials and Supplies, average cost         |   |     | 12,333    |   |         |   | 11,247 |   |
| Prepaid Taxes                                |   |     | 20,104    |   |         |   | 11,860 |   |
| Derivatives - Energy Related Assets          |   |     | 579       |   |         |   | 380 |   |
| Other Prepayments and Current Assets         |   |     | 2,874     |   |         |   | 2,416 |   |
|                                         |   |     |      |   |         |   |   |   |
| Total Current Assets                         |   |     | 150,213   |   |         |   | 186,391 |   |
|                                         |   |     |      |   |         |   |   |   |
| Regulatory and Other Noncurrent Assets:      |   |     |      |   |         |   |   |   |
| Regulatory Assets                            |   |     | 241,155   |   |         |   | 270,434 |   |
| Unamortized Debt Issuance Costs              |   |     | 5,899     |   |         |   | 6,147 |   |
| Long-Term Receivables                        |   |     | 7,468     |   |         |   | 7,081 |   |
| Derivatives - Energy Related Assets          |   |     | 507       |   |         |   | 15 |   |
| Other                                        |   |     | 2,626     |   |         |   | 2,392 |   |
|                                         |   |     |      |   |         |   |   |   |
| Total Regulatory and Other Noncurrent Assets |   |     | 257,655   |   |         |   | 286,069 |   |
|                                         |   |     |      |   |         |   |   |   |
| Total Assets                                 |   | $        | 1,310,457 |   |         | $      | 1,354,015 |   |

----

|                                                                                                   |   | June 30, |      |   | December 31, |   |
|--------------------------------------------------------------------------------------------------------|--------|----------|-----------|--------|--------------|--------|
|                                                                                                   |   | 2009     |      |   | 2008         |   |
|                                                                                                   |   |     |      |   |         |   |
| Capitalization and Liabilities                                                                         |   |     |      |   |         |   |
|                                                                                                   |   |     |      |   |         |   |
| Common Equity:                                                                                         |   |     |      |   |         |   |
| Common Stock, Par Value $2.50 per share: Authorized - 4,000,000 shares; Outstanding - 2,339,139 shares |   | $        | 5,848     |   |         | $      | 5,848 |   |
| Other Paid-In Capital and Premium on Common Stock                                                      |   |     | 200,663   |   |         |   | 200,663 |   |
| Accumulated Other Comprehensive Loss                                                                   |   |     | (6,765    | )      |         |   | (6,875 | ) |
| Retained Earnings                                                                                      |   |     | 225,107   |   |         |   | 202,103 |   |
|                                                                                                   |   |     |      |   |         |   |   |   |
| Total Common Equity                                                                                    |   |     | 424,853   |   |         |   | 401,739 |   |
|                                                                                                   |   |     |      |   |         |   |   |   |
| Long-Term Debt                                                                                         |   |     | 269,856   |   |         |   | 269,873 |   |
|                                                                                                   |   |     |      |   |         |   |   |   |
| Total Capitalization                                                                                   |   |     | 694,709   |   |         |   | 671,612 |   |
|                                                                                                   |   |     |      |   |         |   |   |   |
| Current Liabilities:                                                                                   |   |     |      |   |         |   |   |   |
| Notes Payable                                                                                          |   |     | 91,400    |   |         |   | 114,550 |   |
| Current Portion of Long-Term Debt                                                                      |   |     | 25,000    |   |         |   | 25,000 |   |
| Accounts Payable - Commodity                                                                           |   |     | 9,500     |   |         |   | 36,587 |   |
| Accounts Payable - Other                                                                               |   |     | 12,856    |   |         |   | 12,051 |   |
| Accounts Payable - Related Parties                                                                     |   |     | 8,862     |   |         |   | 16,744 |   |
| Derivatives - Energy Related Liabilities                                                               |   |     | 22,402    |   |         |   | 26,698 |   |
| Deferred Income Taxes - Net                                                                            |   |     | 11,053    |   |         |   | 12,475 |   |
| Customer Deposits and Credit Balances                                                                  |   |     | 16,756    |   |         |   | 14,219 |   |
| Environmental Remediation Costs                                                                        |   |     | 9,123     |   |         |   | 13,117 |   |
| Taxes Accrued                                                                                          |   |     | 6,938     |   |         |   | 2,291 |   |
| Pension Benefits                                                                                       |   |     | 991       |   |         |   | 991 |   |
| Interest Accrued                                                                                       |   |     | 6,089     |   |         |   | 6,244 |   |
| Dividends Declared                                                                                     |   |     | 2,501     |   |         |   | - |   |
| Other Current Liabilities                                                                              |   |     | 4,048     |   |         |   | 6,449 |   |
|                                                                                                   |   |     |      |   |         |   |   |   |
| Total Current Liabilities                                                                              |   |     | 227,519   |   |         |   | 287,416 |   |
|                                                                                                   |   |     |      |   |         |   |   |   |
| Regulatory and Other Noncurrent Liabilities:                                                           |   |     |      |   |         |   |   |   |
| Regulatory Liabilities                                                                                 |   |     | 52,262    |   |         |   | 50,447 |   |
| Deferred Income Taxes - Net                                                                            |   |     | 194,323   |   |         |   | 187,050 |   |
| Environmental Remediation Costs                                                                        |   |     | 45,765    |   |         |   | 50,976 |   |
| Asset Retirement Obligations                                                                           |   |     | 22,618    |   |         |   | 22,299 |   |
| Pension and Other Postretirement Benefits                                                              |   |     | 62,720    |   |         |   | 67,566 |   |
| Investment Tax Credits                                                                                 |   |     | 1,675     |   |         |   | 1,832 |   |
| Derivatives - Energy Related Liabilities                                                               |   |     | 940       |   |         |   | 2,667 |   |
| Derivatives - Other                                                                                    |   |     | 2,933     |   |         |   | 7,578 |   |
| Other                                                                                                  |   |     | 4,993     |   |         |   | 4,572 |   |
|                                                                                                   |   |     |      |   |         |   |   |   |
| Total Regulatory and Other Noncurrent Liabilities                                                      |   |     | 388,229   |   |         |   | 394,987 |   |
|                                                                                                   |   |     |      |   |         |   |   |   |
| Commitments and Contingencies (Note 9)                                                                 |   |     |      |   |         |   |   |   |
|                                                                                                   |   |     |      |   |         |   |   |   |
| Total Capitalization and Liabilities                                                                   |   | $        | 1,310,457 |   |         | $      | 1,354,015 |   |

----

| 1. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: |
|----|---------------------------------------------|

----

----

|                                                                  | Fair Values of Derivative Instruments       |
|-----------------------------------------------------------------------|---------------------------------------------|
|                                                                  |                                        |
|                                                                  | Asset Derivatives                           |
|                                                                  |                                        |
|                                                                  | June 30, 2009                               |   | December 31, 2008 |   |
|                                                                  |                                        |   |   |   |   |   |   |   |
|                                                                  | Balance Sheet Location                      |   | Fair Value |   | Balance Sheet Location |   | Fair Value |   |
|                                                                  |                                        |   |   |   |   |   |   |   |   |   |
| Derivatives not designated as hedging instruments under Statement 133 |                                        |   |   |   |   |   |   |   |   |   |
|                                                                  |                                        |   |   |   |   |   |   |   |   |   |
| Energy related commodity contracts                                    | Derivatives - Energy Related Assets-Current |   | $ | 579 |   | Derivatives - Energy Related Assets-Current |   | $ | 380 |   |
|                                                                  |                                        |   |   |   |   |   |   |   |   |   |
|                                                                  | Noncurrent                                  |   |   | 507 |   | Noncurrent |   |   | 15 |   |
|                                                                  |                                        |   |   |   |   |   |   |   |   |   |
| Total asset derivatives                                               |                                        |   | $ | 1,086 |   |   |   | $ | 395 |   |

|                                                                  | Liability Derivatives                            |   |
|-----------------------------------------------------------------------|--------------------------------------------------|--------|
|                                                                  |                                             |   |   |   |
|                                                                  | June 30, 2009                                    |   | December 31, 2008 |   |
|                                                                  |                                             |   |   |   |   |   |   |   |
|                                                                  | Balance Sheet Location                           |   | Fair Value |   | Balance Sheet Location |   | Fair Value |   |
|                                                                  |                                             |   |   |   |   |   |   |   |
| Derivatives not designated as hedging instruments under Statement 133 |                                             |   |   |   |   |   |   |   |   |   |
|                                                                  |                                             |   |   |   |   |   |   |   |   |   |
|  Energy related commodity contracts                              | Derivatives - Energy Related Liabilities-Current |   | $ | 22,402 |   | Derivatives - Energy Related Liabilities-Current |   | $ | 26,698 |   |
|                                                                  |                                             |   |   |   |   |   |   |   |   |   |
|                                                                  | Noncurrent                                       |   |   | 940 |   | Noncurrent |   |   |  2,667 |   |
|                                                                  |                                             |   |   |   |   |   |   |   |   |   |
|  Interest rate contracts                                         | Derivatives - Other                              |   |   | 2,933 |   | Derivatives - Other |   |   |  7,578 |   |
|                                                                  |                                             |   |   |   |   |   |   |   |   |   |
| Total liability derivatives                                           |                                             |   | $ | 26,275 |   |   |   | $ | 36,943 |   |

| Grant     |   | Shares      |   |   | Fair Value |   |   | Expected   |   |   | Risk-Free     |   |
|-----------|--------|-------------|--------|--------|------------|--------|--------|------------|--------|--------|---------------|--------|
| Date      |   | Outstanding |   |   | Per Share  |   |   | Volatility |   |   | Interest Rate |   |
|      |   |        |   |   |       |   |   |       |   |   |          |   |
| Jan. 2007 |   |        | 9,045  |   |       | $      | 29.210 |       |   |   | 18.5          | %      |   |   | 4.9 | % |
| Jan. 2008 |   |        | 9,238  |   |       | $      | 34.030 |       |   |   | 21.7          | %      |   |   | 2.9 | % |
| Jan. 2009 |   |        | 8,318  |   |       | $      | 39.350 |       |   |   | 28.6          | %      |   |   | 1.2 | % |

----

|                                          |   | Shares |   |   | Weighted AverageGrant DateFair Value |   |
|-----------------------------------------------|--------|--------|--------|--------|--------------------------------------|--------|
| Nonvested Shares Outstanding, January 1, 2009 |   |   | 18,283 |   |                                 | $      | 31.645 |   |
|                                          |   |   |   |   |                                 |   |   |   |
| Granted                                       |   |   | 8,318  |   |                                 |   | 39.350 |   |
|                                          |   |   |   |   |                                 |   |   |   |
| Nonvested Shares Outstanding, June 30, 2009   |   |   | 26,601 |   |                                 | $      | 34.055 |   |

----

----

----

| 2. | RATES AND REGULATORY ACTIONS: |
|----|-------------------------------|

| 3. | REGULATORY ASSETS AND LIABILITIES: |
|----|------------------------------------|

----

|                                                    |   | June 30, |    |   | December 31, |   |
|---------------------------------------------------------|--------|----------|---------|--------|--------------|--------|
|                                                    |   | 2009     |    |   | 2008         |   |
| Environmental Remediation Costs:                        |   |     |    |   |         |   |   |   |
| Expended - Net                                          |   | $        | 47,173  |   |         | $      | 48,143 |   |
| Liability for Future Expenditures                       |   |     | 54,888  |   |         |   | 64,093 |   |
| Income Taxes - Flowthrough Depreciation                 |   |     | 2,240   |   |         |   | 2,729 |   |
| Deferred Asset Retirement Obligation Costs              |   |     | 22,160  |   |         |   | 21,901 |   |
| Deferred Pension and Other Postretirement Benefit Costs |   |     | 79,973  |   |         |   | 80,162 |   |
| Deferred Gas Costs - Net                                |   |     | 10,436  |   |         |   | 18,406 |   |
| Conservation Incentive Program Receivable               |   |     | 16,693  |   |         |   | 22,048 |   |
| Societal Benefit Costs Receivable                       |   |     | 617     |   |         |   | 1,753 |   |
| Premium for Early Retirement of Debt                    |   |     | 1,127   |   |         |   | 1,208 |   |
| Other Regulatory Assets                                 |   |     | 5,848   |   |         |   | 9,991 |   |
|                                                    |   |     |    |   |         |   |   |   |
| Total Regulatory Assets                                 |   | $        | 241,155 |   |         | $      | 270,434 |   |

|                         |   | June 30, |   |   | December 31, |   |
|------------------------------|--------|----------|--------|--------|--------------|--------|
|                         |   | 2009     |   |   | 2008         |   |
| Excess Plant Removal Costs   |   | $        | 48,736 |   |         | $      | 48,820 |   |
| Other Regulatory Liabilities |   |     | 3,526  |   |         |   | 1,627 |   |
|                         |   |     |   |   |         |   |   |   |
| Total Regulatory Liabilities |   | $        | 52,262 |   |         | $      | 50,447 |   |

| 4. | RELATED PARTY TRANSACTIONS: |
|----|-----------------------------|

----

|                                |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|-------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                                |   | 2009                       |   |   | 2008                     |   |   | 2009 |   |   | 2008 |   |
| Operating Revenues/Affiliates:      |   |                       |   |   |                     |   |   |   |   |   |   |   |
| SJRG                                |   | $                          | 313    |   |                     | $      | 339 |   |   | $ | 3,205 |   |   | $ | 1,746 |   |
| Other                               |   |                       | 99     |   |                     |   | 107 |   |   |   | 245 |   |   |   | 234 |   |
| Total Operating Revenues/Affiliates |   | $                          | 412    |   |                     | $      | 446 |   |   | $ | 3,450 |   |   | $ | 1,980 |   |

|                                                                                                                  |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                                                                                                                  |   | 2009                       |   |   | 2008                     |   |   | 2009 |   |   | 2008 |   |
| Costs of Sales/Affiliates:                                                                                            |   |                       |   |   |                     |   |   |   |   |   |   |   |
| SJRG                                                                                                                  |   | $                          | 4,735  |   |                     | $      | 3,579 |   |   | $ | 31,461 |   |   | $ | 15,772 |   |
| Total Cost of Sales/Affiliates                                                                                        |   | $                          | 4,735  |   |                     | $      | 3,579 |   |   | $ | 31,461 |   |   | $ | 15,772 |   |
|                                                                                                                  |   |
| Derivative Losses (Gains) (See Note 1): *                                                                             |   |                       |   |   |                     |   |   |   |
| SJRG                                                                                                                  |   | $                          | 12,600 |   |                     | $      | (7,752 | )  |   | $ | 29,510 |   |   | $ | (7,349 | )  |
|                                                                                                                  |   |
| * Contracts used to hedge natural gas purchases. Included in Cost of Sales on the Condensed Statement of Income. |   |

| Operations Expense/Affiliates       |   |   |   |    |   |   |   |    |   |   |   |    |
|-------------------------------------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
| SJI                                 |   | $      | 2,405  |    |   | $      | 1,891  |    |   | $      | 4,177  |    |   | $ | 3,537 |   |
| SJIS                                |   |   | 1,051  |    |   |   | 1,062  |    |   |   | 2,335  |    |   |   | 2,110 |   |
| Millennium                          |   |   | 728    |    |   |   | 720    |    |   |   | 1,441  |    |   |   | 1,510 |   |
| Other                               |   |   | (84    | )  |   |   | (58    | )  |   |   | (158   | )  |   |   | (216 | )  |
| Total Operations Expense/Affiliates |   | $      | 4,100  |    |   | $      | 3,615  |    |   | $      | 7,795  |    |   | $ | 6,941 |   |

| 5. | FINANCIAL INSTRUMENTS: |
|----|------------------------|

----

| 6. | UNUSED LINES OF CREDIT: |
|----|-------------------------|

|                      |   | Total Facility |    |   | Usage  |   |    | Available Liquidity |   | Expiration Date |
|---------------------------|--------|----------------|---------|--------|--------|--------|---------|---------------------|--------|-----------------|
|                      |   |           |    |   |   |   |    |                |   |            |
| Revolving Credit Facility |   | $              | 100,000 |   |   | $      | 70,000  |                |   | $               | 30,000 |   | August 2011 |
| Line of Credit            |   |           | 40,000  |   |   |   | — |                |   |            | 40,000 |   | December 2009 |
| Line of Credit       |   |           | 10,000  |   |   |   | 10,000  |                |   |            | — |   | (A) |
| Uncommitted Bank Lines    |   |           | 45,000  |   |   |   | 11,400  |                |   |            | 33,600 |   | Various |
|                      |   |           |    |   |   |   |    |                |   |            |   |   |   |
| Total                     |   | $              | 195,000 |   |   | $      | 91,400  |                |   | $               | 103,600 |   |   |

----

| 7.  | RETAINED EARNINGS: |
|----------|--------------------|

| 8. | PENSION AND OTHER POSTRETIREMENT BENEFITS: |
|----|--------------------------------------------|

|                               | Pension Benefits              |                       |
|------------------------------------|-------------------------------|----------------------------|
|                               |                          | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|                               |                          | 2009                       |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Service Cost                       |                          | $                          | 552 |   |   | $ | 587 |   |   | $ | 1,244 |   |   | $ | 1,143 |   |
| Interest Cost                      |                          |                       | 1,646 |   |   |   | 1,653 |   |   |   | 3,353 |   |   |   | 2,975 |   |
| Expected Return on Plan Assets     |                          |                       | (1,405 | ) |   |   | (2,056 | ) |   |   | (2,913 | ) |   |   | (3,725 | ) |
| Amortizations:                     |                          |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Prior Service Cost                 |                          |                       | 52 |   |   |   | 56 |   |   |   | 107 |   |   |   | 104 |   |
| Actuarial Loss                     |                          |                       | 1,005 |   |   |   | 310 |   |   |   | 2,084 |   |   |   | 575 |   |
| Net Periodic Benefit Cost          |                          |                       | 1,850 |   |   |   | 550 |   |   |   | 3,875 |   |   |   | 1,072 |   |
| Capitalized Benefit Costs          |                          |                       | (907 | ) |   |   | (269 | ) |   |   | (1,899 | ) |   |   | (525 | ) |
| Total Net Periodic Benefit Expense |                          | $                          | 943 |   |   | $ | 281 |   |   | $ | 1,976 |   |   | $ | 547 |   |
|                               |                          |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                               |                          |                       |
|                               | Other Postretirement Benefits |                       |
|                               |                          | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|                               |                          | 2009                       |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Service Cost                       |                          | $                          | 210 |   |   | $ | 148 |   |   | $ | 421 |   |   | $ | 349 |   |
| Interest Cost                      |                          |                       | 599 |   |   |   | 509 |   |   |   | 1,199 |   |   |   | 1,067 |   |
| Expected Return on Plan Assets     |                          |                       | (304 | ) |   |   | (384 | ) |   |   | (609 | ) |   |   | (792 | ) |
| Amortizations:                     |                          |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Prior Service Credits              |                          |                       | (69 | ) |   |   | (63 | ) |   |   | (138 | ) |   |   | (128 | ) |
| Actuarial Loss                     |                          |                       | 356 |   |   |   | 129 |   |   |   | 712 |   |   |   | 269 |   |
| Net Periodic Benefit Cost          |                          |                       | 792 |   |   |   | 339 |   |   |   | 1,585 |   |   |   | 765 |   |
| Capitalized Benefit Costs          |                          |                       | (388 | ) |   |   | (166 | ) |   |   | (777 | ) |   |   | (375 | ) |
| Total Net Periodic Benefit Expense |                          | $                          | 404 |   |   | $ | 173 |   |   | $ | 808 |   |   | $ | 390 |   |

----

| 9. | COMMITMENTS AND CONTINGENCIES: |
|----|--------------------------------|

----

| 10. | FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES: |
|-----|-----------------------------------------------------------|

|   | · | Level 1:  Observable inputs such as quoted prices in active markets for identical assets or liabilities. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|

|   | · | Level 2:  Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Level 3:  Unobservable inputs that reflect the reporting entity’s own assumptions. |
|--------|--------|----------------------------------------------------------------------------------------------------|

|                                               |   | Total  |   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
|----------------------------------------------------|--------|--------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
| Assets -                                      |   |   |   |   |    |   |   |    |   |   |    |   |
|                                               |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Available-for-Sale Securities (A)                  |   | $      | 5,074  |   |    | $      | 5,074  |    |   | $      | -       |   |   | $ | - |   |
| Derivatives – Energy Related Assets (B)      |   |   | 1,086  |   |    |   | 945    |    |   |   | 141     |   |   |   | - |   |
|                                               |   | $      | 6,160  |   |    | $      | 6,019  |    |   | $      | 141     |   |   | $ | - |   |
|                                               |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Liabilities -                                      |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
|                                               |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |
| Derivatives – Energy Related Liabilities (B) |   | $      | 23,342 |   |    | $      | 22,713 |    |   | $      | 629     |   |   | $ | - |   |
| Derivatives – Other (C)                      |   |   | 2,933  |   |    |   | -      |    |   |   | 2,933   |   |   |   | - |   |
|                                               |   | $      | 26,275 |   |    | $      | 22,713 |    |   | $      | 3,562   |   |   | $ | - |   |
|                                               |   |   |   |   |    |   |   |    |   |   |    |   |   |   |   |   |

----

| 11. | AVAILABLE–FOR–SALE SECURITIES: |
|-----|--------------------------------------------|

----

|                         |   | Less than 12 Months |   |   | Greater Than 12 Months |   |   | Total      |   |
|------------------------------|--------|---------------------|--------|--------|------------------------|--------|--------|------------|--------|
|                         |   |                |   |   |                   |   |   |       |   |   |   |   |   |   |   |   |   |   |
|                         |   | Fair Value          |   |   | Unrealized Losses      |   |   | Fair Value |   |   | Unrealized Losses |   |   | Fair Value |   |   | Unrealized Losses |   |
| Marketable Equity Securities |   | $                   | 638    |   |                   | $      | 268    |       |   | $ | 3,135 |   |   | $ | 832 |   |   | $ | 3,773 |   |   | $ | 1,100 |   |

----

----

|                                   |   | Three Months Ended |   |   | Six Months Ended |   |
|----------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                   |   | June 30,           |   |   | June 30,         |   |
|                                   |   | 2009               |   |   | 2008             |   |   | 2009 |   |   | 2008 |   |
| Throughput – dth:                |   |               |   |   |             |   |   |   |   |   |   |   |
| Firm Sales -                           |   |               |   |   |             |   |   |   |   |   |   |   |
| Residential                            |   |               | 2,847  |   |             |   | 2,748 |   |   |   | 14,364 |   |   |   | 12,931 |   |
| Commercial                             |   |               | 769    |   |             |   | 829 |   |   |   | 3,646 |   |   |   | 3,413 |   |
| Industrial                             |   |               | 56     |   |             |   | 15 |   |   |   | 205 |   |   |   | 90 |   |
| Cogeneration & Electric Generation |   |               | 88     |   |             |   | 356 |   |   |   | 102 |   |   |   | 372 |   |
| Firm Transportation -                  |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Residential                            |   |               | 264    |   |             |   | 263 |   |   |   | 1,271 |   |   |   | 1,215 |   |
| Commercial                             |   |               | 914    |   |             |   | 869 |   |   |   | 3,485 |   |   |   | 3,329 |   |
| Industrial                             |   |               | 2,917  |   |             |   | 3,167 |   |   |   | 5,969 |   |   |   | 6,447 |   |
| Cogeneration & Electric Generation |   |               | 286    |   |             |   | 573 |   |   |   | 719 |   |   |   | 925 |   |
|                                   |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Total Firm Throughput                  |   |               | 8,141  |   |             |   | 8,820 |   |   |   | 29,761 |   |   |   | 28,722 |   |
|                                   |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Interruptible Sales                    |   |               | 2      |   |             |   | 18 |   |   |   | 4 |   |   |   | 27 |   |
| Interruptible Transportation           |   |               | 572    |   |             |   | 613 |   |   |   | 1,208 |   |   |   | 1,525 |   |
| Off-System                             |   |               | 1,071  |   |             |   | 1,633 |   |   |   | 3,765 |   |   |   | 5,872 |   |
| Capacity Release                       |   |               | 8,964  |   |             |   | 15,827 |   |   |   | 17,463 |   |   |   | 27,057 |   |
|                                   |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Total Throughput                       |   |               | 18,750 |   |             |   | 26,911 |   |   |   | 52,201 |   |   |   | 63,203 |   |

----

|                                   |   | Three Months Ended |   |   | Six Months Ended |   |
|----------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                   |   | June 30,           |   |   | June 30,         |   |
|                                   |   | 2009               |   |   | 2008             |   |   | 2009 |   |   | 2008 |   |
| Utility Operating Revenues:            |   |               |   |   |             |   |   |   |   |   |   |   |
| Firm Sales -                           |   |               |   |   |             |   |   |   |   |   |   |   |
| Residential                            |   | $                  | 40,645 |   |             | $      | 44,043 |   |   | $ | 209,283 |   |   | $ | 187,511 |   |
| Commercial                             |   |               | 8,008  |   |             |   | 12,613 |   |   |   | 44,534 |   |   |   | 43,799 |   |
| Industrial                             |   |               | 517    |   |             |   | 1,622 |   |   |   | 2,328 |   |   |   | 5,177 |   |
| Cogeneration & Electric Generation |   |               | 772    |   |             |   | 4,960 |   |   |   | 1,045 |   |   |   | 5,287 |   |
| Firm Transportation -                  |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Residential                            |   |               | 1,628  |   |             |   | 1,611 |   |   |   | 6,323 |   |   |   | 6,080 |   |
| Commercial                             |   |               | 3,072  |   |             |   | 2,755 |   |   |   | 10,986 |   |   |   | 10,408 |   |
| Industrial                             |   |               | 3,616  |   |             |   | 3,081 |   |   |   | 7,203 |   |   |   | 6,273 |   |
| Cogeneration & Electric Generation |   |               | 334    |   |             |   | 435 |   |   |   | 793 |   |   |   | 757 |   |
|                                   |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Total Firm Revenues                    |   |               | 58,592 |   |             |   | 71,120 |   |   |   | 282,495 |   |   |   | 265,292 |   |
|                                   |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Interruptible Sales                    |   |               | 55     |   |             |   | 269 |   |   |   | 95 |   |   |   | 394 |   |
| Interruptible Transportation           |   |               | 529    |   |             |   | 371 |   |   |   | 1,086 |   |   |   | 967 |   |
| Off-System                             |   |               | 4,348  |   |             |   | 18,596 |   |   |   | 21,250 |   |   |   | 58,586 |   |
| Capacity Release                       |   |               | 983    |   |             |   | 2,953 |   |   |   | 2,423 |   |   |   | 5,753 |   |
| Other                                  |   |               | 328    |   |             |   | 262 |   |   |   | 599 |   |   |   | 483 |   |
|                                   |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Total Utility Operating Revenues       |   |               | 64,835 |   |             |   | 93,571 |   |   |   | 307,948 |   |   |   | 331,475 |   |
|                                   |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Less:                                  |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Cost of Sales                          |   |               | 29,905 |   |             |   | 60,263 |   |   |   | 195,882 |   |   |   | 223,180 |   |
| Conservation Recoveries*               |   |               | 2,124  |   |             |   | 1,968 |   |   |   | 5,389 |   |   |   | 5,033 |   |
| RAC Recoveries*                        |   |               | 1,208  |   |             |   | 694 |   |   |   | 2,417 |   |   |   | 1,389 |   |
| Revenue Taxes                          |   |               | 1,271  |   |             |   | 1,252 |   |   |   | 5,342 |   |   |   | 5,042 |   |
| Utility Margin                         |   | $                  | 30,327 |   |             | $      | 29,394 |   |   | $ | 98,918 |   |   | $ | 96,831 |   |
|                                   |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Margin:                                |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Residential                            |   | $                  | 16,548 |   |             | $      | 16,154 |   |   | $ | 62,138 |   |   | $ | 57,136 |   |
| Commercial and Industrial              |   |               | 7,025  |   |             |   | 6,831 |   |   |   | 22,454 |   |   |   | 21,149 |   |
| Cogeneration and Electric Generation   |   |               | 535    |   |             |   | 610 |   |   |   | 875 |   |   |   | 899 |   |
| Interruptible                          |   |               | 42     |   |             |   | 16 |   |   |   | 88 |   |   |   | 81 |   |
| Off-system & Capacity Release      |   |               | 198    |   |             |   | 507 |   |   |   | 900 |   |   |   | 1,588 |   |
| Other                                  |   |               | 945    |   |             |   | 563 |   |   |   | 1,215 |   |   |   | 783 |   |
| Margin Before Incentive Mechanisms     |   |               | 25,293 |   |             |   | 24,681 |   |   |   | 87,670 |   |   |   | 81,636 |   |
| CIRT Mechanism                         |   |               | 375    |   |             |   | - |   |   |   | 375 |   |   |   | - |   |
| CIP Mechanism                          |   |               | 4,659  |   |             |   | 4,713 |   |   |   | 10,873 |   |   |   | 15,195 |   |
| Utility Margin                         |   | $                  | 30,327 |   |             | $      | 29,394 |   |   | $ | 98,918 |   |   | $ | 96,831 |   |
|                                   |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Degree Days:                           |   |               | 481    |   |             |   | 471 |   |   |   | 2,999 |   |   |   | 2,735 |   |

----

|                                |   | Three Months EndedJune 30, |   |   | Six Months EndedJune 30, |   |
|-------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                                |   | 2009                       |   |   | 2008                     |   |   | 2009 |   |   | 2008 |   |
| Net Income Benefit:            |   |                       |   |   |                     |   |   |   |   |   |   |   |
| CIP – Weather Related         |   | $                          | 0.8    |   |                     | $      | 0.4 |   |   | $ | (0.1 | )  |   | $ | 1.6 |   |
| CIP – Usage Related           |   |                       | 1.9    |   |                     |   | 2.4 |   |   |   | 6.5 |   |   |   | 7.4 |   |
| Total Net Income Benefit            |   | $                          | 2.7    |   |                     | $      | 2.8 |   |   | $ | 6.4 |   |   | $ | 9.0 |   |
|                                |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Weather Compared to 20-Year Average |   | 12.4% warmer               |   |   | 14.2% warmer             |   |   | 0.7% colder |   |   | 8.2% warmer |   |
| Weather Compared to Prior Year      |   | 2.1% colder                |   |   | 13.9% warmer             |   |   | 9.7% colder |   |   | 7.8% warmer |   |

----

----

|                   |   | Three MonthsEnded June 30, |   |   | Six MonthsEnded June 30, |   |
|------------------------|--------|---------------------------------|--------|--------|-------------------------------|--------|
|                   |   | 2009 vs. 2008                   |   |   | 2009 vs. 2008                 |   |
|                   |   |                            |   |   |                          |   |
| Operations             |   | $                               | 2,476  |   |                          | $      | 4,711 |   |
| Maintenance            |   |                            | 70     |   |                          |   | 374 |   |
| Depreciation           |   |                            | 199    |   |                          |   | 527 |   |
| Energy and Other Taxes |   |                            | 35     |   |                          |   | 299 |   |

----

----

----

|                      |   | Total Facility |    |   | Usage  |   |    | Available Liquidity |   | Expiration Date |
|---------------------------|--------|----------------|---------|--------|--------|--------|---------|---------------------|--------|-----------------|
|                      |   |           |    |   |   |   |    |                |   |            |
| Revolving Credit Facility |   | $              | 100,000 |   |   | $      | 70,000  |                |   | $               | 30,000 |   | August 2011 |
| Line of Credit            |   |           | 40,000  |   |   |   | — |                |   |            | 40,000 |   | December 2009 |
| Line of Credit       |   |           | 10,000  |   |   |   | 10,000  |                |   |            | — |   | (A) |
| Uncommitted Bank Lines    |   |           | 45,000  |   |   |   | 11,400  |                |   |            | 33,600 |   | Various |
|                      |   |           |    |   |   |   |    |                |   |            |   |   |   |
| Total                     |   | $              | 195,000 |   |   | $      | 91,400  |                |   | $               | 103,600 |   |   |

----

|               |   | As ofJune 30, 2009 |   |   | As ofDecember 31, 2008 |   |
|--------------------|--------|-------------------------|--------|--------|-----------------------------|--------|
|               |   |                    |   |   |                        |   |
| Common Equity |   |                    | 52.4   | %      |                        |   | 49.5 | % |
| Long-Term Debt     |   |                    | 33.3   |   |                        |   | 36.4 |   |
| Short-Term Debt    |   |                    | 14.3   |   |                        |   | 14.1 |   |
|               |   |                    |   |   |                        |   |   |   |
| Total              |   |                    | 100.0  | %      |                        |   | 100.0 | % |

----

| Twelve MonthsEnded June 30, |   |   | Year Ended December 31, |   |
|----------------------------------|--------|--------|-------------------------|--------|
|                             |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2009                             |   |   | 2008                    |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |   | 2004 |   |
|                             |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                             | 4.6    | x      |                    |   | 4.4 | x |   |   | 4.1 | x |   |   | 3.8 | x |   |   | 4.0 | x |   |   | 3.9 | x |

----

| Assets                                            |   |                |   |   |                |   |   |   |   |
|---------------------------------------------------|--------|---------------------|--------|--------|---------------------|--------|--------|--------|--------|
| Source of Fair Value                              |   | Maturity< 1 Year |   |   | Maturity1 - 3 Years |   |   | Total  |   |
|                                              |   |                |   |   |                |   |   |   |   |
| Prices Actively Quoted (NYMEX)                    |   | $                   | 438    |   |                | $      | 507    |   |   | $ | 945 |   |
|                                              |   |                |   |   |                |   |   |   |   |   |   |   |
| Prices Provided by Other External Sources (Basis) |   |                | 141    |   |                |   | 0      |   |   |   | 141 |   |
|                                              |   |                |   |   |                |   |   |   |   |   |   |   |
| Total                                             |   | $                   | 579    |   |                | $      | 507    |   |   | $ | 1,086 |   |

| Liabilities                                       |   |        |   |   |        |   |   |   |   |
|---------------------------------------------------|--------|-------------|--------|--------|-------------|--------|--------|--------|--------|
|                                              |   | Maturity    |   |   | Maturity    |   |   |   |   |
| Source of Fair Value                              |   | < 1 Year |   |   | 1 - 3 Years |   |   | Total  |   |
|                                              |   |        |   |   |        |   |   |   |   |
| Prices Actively Quoted (NYMEX)                    |   | $           | 21,773 |   |        | $      | 940    |   |   | $ | 22,713 |   |
|                                              |   |        |   |   |        |   |   |   |   |   |   |   |
| Prices Provided by Other External Sources (Basis) |   |        | 629    |   |        |   | 0      |   |   |   | 629 |   |
|                                              |   |        |   |   |        |   |   |   |   |   |   |   |
| Total                                             |   | $           | 22,402 |   |        | $      | 940    |   |   | $ | 23,342 |   |

----

| Net Derivatives — Energy Related Liability, January 1, 2009  |   |  $ | (28,970 | )      |
|--------------------------------------------------------------------|--------|---------|---------|--------|
| Contracts Settled During the Six Months ended June 30, 2009, Net   |   |    | 20,208  |   |
| Other Changes in Fair Value from Continuing and New Contracts, Net |   |    | (13,494 | )      |
| Net Derivatives — Energy Related Liability, June 30, 2009    |   | $       | (22,256 | )      |

----

| Amount |       |   | FixedInterest Rate |   |   | Start Date |   | Maturity   |   | Type       |
|--------|------------|--------|--------------------|--------|--------|------------|--------|------------|--------|------------|
| $      | 12,500,000 |   |               |   | 3.430  | %          |   | 12/01/2006 |   | 02/01/2036 |   | Tax-exempt |
| $      | 12,500,000 |   |               |   | 3.430  | %          |   | 12/01/2006 |   | 02/01/2036 |   | Tax-exempt |

----

| Exhibit No. |   |  Description                                                                                                                                                                                                                                   |
|-------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |   |                                                                                                                                                                                                                                                |
| 31.1        |   | Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) of the Exchange Act.                                                                                                                                                            |
|        |   |                                                                                                                                                                                                                                                |
| 31.2        |   | Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) of the Exchange Act.                                                                                                                                                            |
|        |   |                                                                                                                                                                                                                                                |
| 32.1        |   | Certification of Chief Executive Officer Pursuant to Rule 13a-14(b) of the Exchange Act as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code). |
|        |   |                                                                                                                                                                                                                                                |
| 32.2        |   | Certification of Chief Financial Officer Pursuant to Rule 13a-14(b) of the Exchange Act as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code). |

| Dated: August 7, 2009 | By:    | /s/ Edward J. Graham                                |
|-----------------------|--------|-----------------------------------------------------|
|                  |   | Edward J. Graham                                    |
|                  |   | President & Chief Executive Officer             |
|                  |   |                                                |
|                  |   |                                                |
| Dated: August 7, 2009 | By:    | /s/ David A. Kindlick                               |
|                  |   | David A. Kindlick                                   |
|                  |   | Senior Vice President & Chief Financial Officer |

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