----

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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      DC 20549**

**FORM      10-Q**

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

**March      31, 2006**

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

**000-22211**

**SOUTH      JERSEY GAS COMPANY**

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

**1      South Jersey Plaza, Folsom, NJ 08037**

**(609)      561-9000**

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| **SOUTH                  JERSEY GAS COMPANY**                                                                        |   |                                      |                                                                                                                                                                  |   |   |
|----------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                                 |   |                                      |                                                                                                                                                                  |   |   |
| **CONDENSED                  STATEMENTS OF INCOME (UNAUDITED)**                                                      |   |                                      |                                                                                                                                                                  |   |   |
| (In                  Thousands)                                                                                      |   |                                      |                                                                                                                                                                  |   |   |
|                                                                                                                 |   |  Three                  Months Ended |                                                                                                                                                                  |
|                                                                                                                      |   |                                      |                                          March 31, |   |
|                                                                                                                 |   |                                      | 2006                                                                                                                                                                  |   |   | 2005 |   |
|                                                                                                                 |   |                                      |                                                                                                                                                                  |   |   |   |   |
|                                                                                                                 |   |                                      |                                                                                                                                                                  |   |   |   |   |
| **Operating                  Revenues**                                                                              |   | $                                         | 277,081                                                                                                                                                               |   | $      | 214,537 |   |
|                                                                                                                 |   |                                      |                                                                                                                                                                  |   |   |   |   |
| **Operating                  Expenses:**                                                                             |   |                                      |                                                                                                                                                                  |   |   |   |   |
|     Cost                  of                  Sales                                              |   |                                      | 208,621                                                                                                                                                               |   |   | 144,345 |   |
|     Operations                                                                                   |   |                                      | 13,831                                                                                                                                                                |   |   | 15,289 |   |
|     Maintenance                                                                                  |   |                                      | 1,405                                                                                                                                                                 |   |   | 1,493 |   |
|     Depreciation                                                                                 |   |                                      | 5,758                                                                                                                                                                 |   |   | 5,358 |   |
|     Energy                  and Other Taxes                                                      |   |                                      | 4,286                                                                                                                                                                 |   |   | 4,893 |   |
|                                                                                                                 |   |                                      |                                                                                                                                                                  |   |   |   |   |
|         Total                  Operating Expenses                            |   |                                      | 233,901                                                                                                                                                               |   |   | 171,378 |   |
|                                                                                                                 |   |                                      |                                                                                                                                                                  |   |   |   |   |
| **Operating                  Income**                                                                                |   |                                      | 43,180                                                                                                                                                                |   |   | 43,159 |   |
|                                                                                                                 |   |                                      |                                                                                                                                                                  |   |   |   |   |
| **Other                  Income and Expense**                                                                        |   |                                      | (20                                                                                                                                                                   | )      |   | (30 | ) |
|                                                                                                                 |   |                                      |                                                                                                                                                                  |   |   |   |   |
| **Interest                  Charges**                                                                                |   |                                      | (5,152                                                                                                                                                                | )      |   | (4,440 | ) |
|                                                                                                                 |   |                                      |                                                                                                                                                                  |   |   |   |   |
| **Income                  Before Income Taxes**                                                                      |   |                                      | 38,008                                                                                                                                                                |   |   | 38,689 |   |
|                                                                                                                 |   |                                      |                                                                                                                                                                  |   |   |   |   |
| **Income                  Taxes**                                                                                    |   |                                      | (15,530                                                                                                                                                               | )      |   | (16,125 | ) |
|                                                                                                                 |   |                                      |                                                                                                                                                                  |   |   |   |   |
| **Net                  Income**                                                                                      |   | $                                         | 22,478                                                                                                                                                                |   | $      | 22,564 |   |
|                                                                                                                 |   |                                      |                                                                                                                                                                  |   |   |   |   |
| The                  accompanying notes are an integral part of the condensed financial                  statements. |   |                                      |                                                                                                                                                                  |   |   |   |   |

----

| **SOUTH                  JERSEY GAS COMPANY**                                                                        |   |   |                                                                                                                                          |   |   |
|----------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                                 |   |   |                                                                                                                                          |   |   |
| **CONDENSED                  STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)**                                        |   |   |                                                                                                                                          |   |   |
| (In                  Thousands)                                                                                      |   |   |                                                                                                                                          |   |   |
|                                                                                                                 |   |   |                                                                                                                                          |   |   |   |   |
|                                                                                                                      |   |   |         Three                  Months Ended                                                           |   |
|                                                                                                                      |   |   |                                      March 31, |   |
|                                                                                                                 |   |   | 2006                                                                                                                                          |   |   | 2005 |   |
|                                                                                                                 |   |   |                                                                                                                                          |   |   |   |   |
|                                                                                                                 |   |   |                                                                                                                                          |   |   |   |   |
|                                                                                                                 |   |   |                                                                                                                                          |   |   |   |   |
| **Net                  Income**                                                                                      |   | $      | 22,478                                                                                                                                        |   | $      | 22,564 |   |
|                                                                                                                 |   |   |                                                                                                                                          |   |   |   |   |
| **Other                  Comprehensive Income (Loss), Net of Tax:**                                                  |   |   |                                                                                                                                          |   |   |   |   |
|                                                                                                                 |   |   |                                                                                                                                          |   |   |   |   |
|     Change                  in Fair Value of Investments                                         |   |   | 557                                                                                                                                           |   |   | (44 | ) |
|     Change                  in Fair Value of Derivatives                                         |   |   | 157                                                                                                                                           |   |   | (103 | ) |
|                                                                                                                 |   |   |                                                                                                                                          |   |   |   |   |
|         Other                  Comprehensive Income (Loss) - Net of Tax      |   |   | 714                                                                                                                                           |   |   | (147 | ) |
|                                                                                                                 |   |   |                                                                                                                                          |   |   |   |   |
| **Comprehensive                  Income**                                                                            |   | $      | 23,192                                                                                                                                        |   | $      | 22,417 |   |
|                                                                                                                 |   |   |                                                                                                                                          |   |   |   |   |
|                                                                                                                 |   |   |                                                                                                                                          |   |   |   |   |
|                                                                                                                      |   |   |                                                                                                                                          |   |   |   |   |
|                                                                                                                 |   |   |                                                                                                                                          |   |   |   |   |
| The                  accompanying notes are an integral part of the condensed financial                  statements. |   |   |                                                                                                                                          |   |   |   |   |
|                                                                                                                 |   |   |                                                                                                                                          |   |   |   |   |

----

| **SOUTH                  JERSEY GAS COMPANY**                                                                                                              |   |   |                                                                                                                                                                  |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                                                                       |   |   |                                                                                                                                                                  |   |   |
| **CONDENSED                  STATEMENTS OF CASH FLOWS (UNAUDITED)**                                                                                        |   |   |                                                                                                                                                                  |   |   |
| (In                  Thousands)                                                                                                                            |   |   |                                                                                                                                                                  |   |   |
|                                                                                                                                                       |   |   |                                                                                                                                                                  |   |   |   |   |
|                                                                                                                                                            |   |   |                              Three Months Ended                                                                |   |
|                                                                                                                                                            |   |   |                                          March 31, |   |
|                                                                                                                                                       |   |   | 2006                                                                                                                                                                  |   |   | 2005 |   |
|                                                                                                                                                       |   |   |                                                                                                                                                                  |   |   |   |   |
| **Cash                  Flows from Operating Activities:**                                                                                                 |   |   |                                                                                                                                                                  |   |   |   |   |
|     Net                  Income                                                                                                        |   | $      | 22,478                                                                                                                                                                |   | $      | 22,564 |   |
|     Adjustments                  to                  Reconcile Net Income to Net Cash                                                  |   |   |                                                                                                                                                                  |   |   |   |   |
|                           Provided by Operating Activities:                                                        |   |   |                                                                                                                                                                  |   |   |   |   |
|         Depreciation                  and Amortization                                                             |   |   | 6,329                                                                                                                                                                 |   |   | 6,069 |   |
|         Provision                  for                  Losses on Accounts Receivable                              |   |   | 1,056                                                                                                                                                                 |   |   | 1,212 |   |
|         Revenues                  and                  Fuel Costs Deferred - Net                                   |   |   | 15,606                                                                                                                                                                |   |   | 442 |   |
|         Deferred                  and                  Noncurrent Income Taxes and Credits - Net                   |   |   | 977                                                                                                                                                                   |   |   | 4,197 |   |
|         Environmental                  Remediation Costs - Net                                                     |   |   | (956                                                                                                                                                                  | )      |   | (363 | ) |
|         Gas                  Plant Cost of Removal                                                                 |   |   | (304                                                                                                                                                                  | )      |   | (165 | ) |
|         Changes                  in:                                                                               |   |   |                                                                                                                                                                  |   |   |   |   |
|             Accounts                  Receivable                                               |   |   | (38,070                                                                                                                                                               | )      |   | (40,223 | ) |
|             Inventories                                                                        |   |   | 44,426                                                                                                                                                                |   |   | 58,888 |   |
|             Other                  Prepayments and Current Assets                              |   |   | 329                                                                                                                                                                   |   |   | (388 | ) |
|             Prepaid                  and Accrued Taxes - Net                                   |   |   | 21,765                                                                                                                                                                |   |   | 20,984 |   |
|             Accounts                  Payable and Other Accrued Liabilities                    |   |   | (40,769                                                                                                                                                               | )      |   | 3,327 |   |
|             Other                  Assets                                                      |   |   | 2,473                                                                                                                                                                 |   |   | 3,371 |   |
|             Other                  Liabilities                                                 |   |   | (295                                                                                                                                                                  | )      |   | (1,132 | ) |
|                                                                                                                                                       |   |   |                                                                                                                                                                  |   |   |   |   |
|                 Net                  Cash Provided by Operating Activities |   |   | 35,045                                                                                                                                                                |   |   | 78,783 |   |
|                                                                                                                                                       |   |   |                                                                                                                                                                  |   |   |   |   |
| **Cash                  Flows from Investing Activities:**                                                                                                 |   |   |                                                                                                                                                                  |   |   |   |   |
|     Capital                  Expenditures                                                                                              |   |   | (17,409                                                                                                                                                               | )      |   | (14,135 | ) |
|                                                                                                                                                       |   |   |                                                                                                                                                                  |   |   |   |   |
|                 Net                  Cash Used in Investing Activities     |   |   | (17,409                                                                                                                                                               | )      |   | (14,135 | ) |
|                                                                                                                                                       |   |   |                                                                                                                                                                  |   |   |   |   |
| **Cash                  Flows from Financing Activities:**                                                                                                 |   |   |                                                                                                                                                                  |   |   |   |   |
|     Net                  Repayments of Lines of Credit                                                                                 |   |   | (12,200                                                                                                                                                               | )      |   | (43,000 | ) |
|     Principal                  Repayments of Long-Term Debt                                                                            |   |   | (15                                                                                                                                                                   | )      |   | (10,500 | ) |
|     Payments                  for                  Issuance of Long-Term Debt                                                          |   |   | (88                                                                                                                                                                   | )      |   | (51 | ) |
|     Premium                  for Early Retirement of Debt                                                                              |   |   | -                                                                                                                                                                     |   |   | (184 | ) |
|                                                                                                                                                       |   |   |                                                                                                                                                                  |   |   |   |   |
|                 Net                  Cash Used in Financing Activities     |   |   | (12,303                                                                                                                                                               | )      |   | (53,735 | ) |
|                                                                                                                                                       |   |   |                                                                                                                                                                  |   |   |   |   |
| **Net                  Increase in Cash and Cash Equivalents**                                                                                             |   |   | 5,333                                                                                                                                                                 |   |   | 10,913 |   |
| **Cash                  and Cash Equivalents at Beginning of Period**                                                                                      |   |   | 2,551                                                                                                                                                                 |   |   | 3,310 |   |
|                                                                                                                                                       |   |   |                                                                                                                                                                  |   |   |   |   |
| **Cash                  and Cash Equivalents at End of Period**                                                                                            |   | $      | 7,884                                                                                                                                                                 |   | $      | 14,223 |   |
|                                                                                                                                                       |   |   |                                                                                                                                                                  |   |   |   |   |
| The                  accompanying notes are an integral part of the condensed financial                  statements.                                       |   |   |                                                                                                                                                                  |   |   |   |   |

----

| **SOUTH                  JERSEY GAS COMPANY**                                                                         |   |   |                             |   |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------------|--------|--------|
|                                                                                                                  |   |   |                             |   |   |   |   |
| **CONDENSED                  BALANCE SHEETS**                                                                         |   |   |                             |   |   |   |   |
| (In                  Thousands)                                                                                       |   |   |                             |   |   |   |   |
|                                                                                                                  |   |   | (Unaudited)                 |   |   |   |   |
|                                                                                                                  |   |   | March                  31,  |   |   | December                  31,  |   |
|                                                                                                                  |   |   | 2006                             |   |   | 2005 |   |
| **Assets**                                                                                                            |   |   |                             |   |   |   |   |
|                                                                                                                  |   |   |                             |   |   |   |   |
| **Property,                  Plant and Equipment:**                                                                   |   |   |                             |   |   |   |   |
|     Utility                  Plant, at original cost                                              |   | $      | 1,042,046                        |   | $      | 1,030,029 |   |
|     Accumulated                  Depreciation                                                     |   |   | (245,811                         | )      |   | (241,242 | ) |
|                                                                                                                  |   |   |                             |   |   |   |   |
|         Property,                  Plant                  and Equipment - Net |   |   | 796,235                          |   |   | 788,787 |   |
|                                                                                                                  |   |   |                             |   |   |   |   |
| **Investments:**                                                                                                      |   |   |                             |   |   |   |   |
|     Available-for-Sale                  Securities                                                |   |   | 5,893                            |   |   | 5,628 |   |
|                                                                                                                  |   |   |                             |   |   |   |   |
| **Current                  Assets:**                                                                                  |   |   |                             |   |   |   |   |
|     Cash                  and Cash Equivalents                                                    |   |   | 7,884                            |   |   | 2,551 |   |
|     Accounts                  Receivable                                                          |   |   | 95,452                           |   |   | 42,407 |   |
|     Unbilled                  Revenues                                                            |   |   | 38,171                           |   |   | 53,648 |   |
|     Provision                  for                  Uncollectibles                                |   |   | (4,015                           | )      |   | (3,461 | ) |
|     Natural                  Gas in Storage, average cost                                         |   |   | 45,981                           |   |   | 89,957 |   |
|     Materials                  and                  Supplies, average cost                        |   |   | 3,416                            |   |   | 3,866 |   |
|     Prepaid                  Taxes                                                                |   |   | 1,416                            |   |   | 12,972 |   |
|     Derivatives                  -                  Energy Related Assets                         |   |   | 2,621                            |   |   | 6,496 |   |
|     Other                  Prepayments and Current Assets                                         |   |   | 2,528                            |   |   | 2,858 |   |
|                                                                                                                  |   |   |                             |   |   |   |   |
|         Total                  Current Assets                                 |   |   | 193,454                          |   |   | 211,294 |   |
|                                                                                                                  |   |   |                             |   |   |   |   |
| **Regulatory                  Assets:**                                                                               |   |   |                             |   |   |   |   |
|     Environmental                  Remediation Costs:                                             |   |   |                             |   |   |   |   |
|                         Expended - Net                                                  |   |   | 10,305                           |   |   | 9,350 |   |
|                         Liability for Future Expenditures                               |   |   | 54,189                           |   |   | 56,717 |   |
|     Gross                  Receipts and Franchise Taxes                                           |   |   | 370                              |   |   | 480 |   |
|     Income                  Taxes - Flowthrough Depreciation                                      |   |   | 5,419                            |   |   | 5,663 |   |
|     Deferred                  Asset                  Retirement Obligation Costs                  |   |   | 20,255                           |   |   | 19,986 |   |
|     Deferred                  Fuel                  Costs - Net                                   |   |   | 17,958                           |   |   | 21,237 |   |
|     Deferred                  Postretirement Benefit Costs                                        |   |   | 2,551                            |   |   | 2,646 |   |
|     Societal                  Benefit Costs                                                       |   |   | 2,160                            |   |   | 2,691 |   |
|     Premium                  for Early Retirment of Debt                                          |   |   | 1,654                            |   |   | 1,694 |   |
|     Other                  Regulatory Assets                                                      |   |   | 1,003                            |   |   | 1,019 |   |
|                                                                                                                  |   |   |                             |   |   |   |   |
|         Total                  Regulatory Assets                              |   |   | 115,864                          |   |   | 121,483 |   |
|                                                                                                                  |   |   |                             |   |   |   |   |
| **Other                  Noncurrent Assets:**                                                                         |   |   |                             |   |   |   |   |
|     Unamortized                  Debt Issuance Costs                                              |   |   | 6,228                            |   |   | 6,251 |   |
|     Prepaid                  Pension                                                              |   |   | 24,048                           |   |   | 26,202 |   |
|     Accounts                  Receivable - Merchandise                                            |   |   | 6,325                            |   |   | 6,472 |   |
|     Derivatives                  -                  Energy Related Assets                         |   |   | 39                               |   |   | 271 |   |
|     Derivatives                  -                  Other                                         |   |   | 624                              |   |   | - |   |
|     Other                                                                                         |   |   | 1,711                            |   |   | 1,765 |   |
|                                                                                                                  |   |   |                             |   |   |   |   |
|         Total                  Other Noncurrent Assets                        |   |   | 38,975                           |   |   | 40,961 |   |
|                                                                                                                  |   |   |                             |   |   |   |   |
|             Total                  Assets                 |   | $      | 1,150,421                        |   | $      | 1,168,153 |   |
|                                                                                                                  |   |   |                             |   |   |   |   |
| The                  accompanying notes are an integral part of the condensed financial                  statements.  |   |   |                             |   |   |   |   |

----

|                                                                                                                                                   |   |   |                       |   |   |                          |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------|--------|--------|-------------------------------|--------|
|                                                                                                                                                   |   |   |                       |   |   |                          |   |
| **SOUTH                  JERSEY GAS COMPANY**                                                                                                          |   |   |                       |   |   |                          |   |
|                                                                                                                                                   |   |   |                       |   |   |                          |   |
| **CONDENSED                  BALANCE SHEETS**                                                                                                          |   |   |                       |   |   |                          |   |
| (In                  Thousands, except per share amounts)                                                                                              |   |   |                       |   |   |                          |   |
|                                                                                                                                                        |   |   | (Unaudited)                |   |   |                          |   |
|                                                                                                                                                        |   |   | March                  31, |   |   | December                  31, |   |
|                                                                                                                                                   |   |   | 2006                       |   |   | 2005                          |   |
|                                                                                                                                                   |   |   |                       |   |   |                          |   |
| **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                                                             |   |   | 200,317                    |   |   | 200,317                       |   |
|     Accumulated                  Other Comprehensive Loss                                                                          |   |   | (3,623                     | )      |   | (4,337                        | )      |
|     Retained                  Earnings                                                                                             |   |   | 159,592                    |   |   | 142,740                       |   |
|                                                                                                                                                   |   |   |                       |   |   |                          |   |
|         Total                  Common Equity                                                                   |   |   | 362,134                    |   |   | 344,568                       |   |
|                                                                                                                                                   |   |   |                       |   |   |                          |   |
| **Long-Term                  Debt**                                                                                                                    |   |   | 272,220                    |   |   | 272,235                       |   |
|                                                                                                                                                   |   |   |                       |   |   |                          |   |
|         Total                  Capitalization                                                                  |   |   | 634,354                    |   |   | 616,803                       |   |
|                                                                                                                                                   |   |   |                       |   |   |                          |   |
| **Current                  Liabilities:**                                                                                                              |   |   |                       |   |   |                          |   |
|     Notes                  Payable                                                                                                 |   |   | 74,800                     |   |   | 87,000                        |   |
|     Current                  Maturities of Long-Term Debt                                                                          |   |   | 2,273                      |   |   | 2,273                         |   |
|     Accounts                  Payable - Commodity                                                                                  |   |   | 46,648                     |   |   | 87,620                        |   |
|     Accounts                  Payable - Other                                                                                      |   |   | 16,891                     |   |   | 21,452                        |   |
|     Derivatives                  -                  Energy Related Liabilities                                                     |   |   | 14,649                     |   |   | 6,197                         |   |
|     Deferred                  Income                  Taxes - Net                                                                  |   |   | 2,791                      |   |   | 2,295                         |   |
|     Customer                  Deposits                                                                                             |   |   | 9,748                      |   |   | 9,323                         |   |
|     Environmental                  Remediation Costs                                                                               |   |   | 20,489                     |   |   | 17,873                        |   |
|     Taxes                  Accrued                                                                                                 |   |   | 12,371                     |   |   | 2,162                         |   |
|     Dividends                  Declared                                                                                            |   |   | 5,626                      |   |   | -                             |   |
|     Interest                  Accrued                                                                                              |   |   | 4,638                      |   |   | 6,032                         |   |
|     Other                  Current Liabilities                                                                                     |   |   | 7,362                      |   |   | 6,045                         |   |
|                                                                                                                                                   |   |   |                       |   |   |                          |   |
|         Total                  Current Liabilities                                                             |   |   | 218,286                    |   |   | 248,272                       |   |
|                                                                                                                                                   |   |   |                       |   |   |                          |   |
| **Deferred                  Credits and Other Noncurrent Liabilities:**                                                                                |   |   |                       |   |   |                          |   |
|     Deferred                  Income                  Taxes - Net                                                                  |   |   | 163,219                    |   |   | 162,542                       |   |
|     Environmental                  Remediation Costs                                                                               |   |   | 33,699                     |   |   | 38,844                        |   |
|     Regulatory                  Liabilities                                                                                        |   |   | 55,437                     |   |   | 54,002                        |   |
|     Asset                  Retirement Obligations                                                                                  |   |   | 22,848                     |   |   | 22,505                        |   |
|     Pension                  and Other Postretirement Benefits                                                                     |   |   | 15,663                     |   |   | 16,633                        |   |
|     Investment                  Tax                  Credits                                                                       |   |   | 2,714                      |   |   | 2,795                         |   |
|     Derivatives                  -                  Energy Related Liabilities                                                     |   |   | 171                        |   |   | 84                            |   |
|     Derivatives                  -                  Other                                                                          |   |   | -                          |   |   | 306                           |   |
|     Other                                                                                                                          |   |   | 4,030                      |   |   | 5,367                         |   |
|                                                                                                                                                   |   |   |                       |   |   |                          |   |
|         Total                  Deferred Credits and Other Noncurrent Liabilities                               |   |   | 297,781                    |   |   | 303,078                       |   |
|                                                                                                                                                   |   |   |                       |   |   |                          |   |
| **Commitments                  and Contingencies****(Note 7)**                                                                                         |   |   |                       |   |   |                          |   |
|                                                                                                                                                   |   |   |                       |   |   |                          |   |
|                                   Total Capitalization and Liabilities |   | $      | 1,150,421                  |   | $      | 1,168,153                     |   |
|                                                                                                                                                   |   |   |                       |   |   |                          |   |
| The                  accompanying notes are an integral part of the condensed financial                  statements.                                   |   |   |                       |   |   |                          |   |

----

**NOTES      TO      CONDENSED FINANCIAL STATEMENTS (UNAUDITED)**

----

----

|   | Grant                      |   | Shares  |   |                         Fair Value                                                                            |   | Expected   |   | Risk-Free                      |
|--------|----------------------------|--------|---------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|--------|--------------------------------|
|   | Date                       |   | Granted |   |                        Per Share                                                                                   |   | Volatility |   | Interest                  Rate |
|   |                       |   |    |   |                                                                                                                                        |   |       |   |                           |
|   | Jan.                  2004 |   | 11,470  |   |     $                                 20.105 |   | 16.4%      |   | 2.4%                           |
|   | Jan.                  2005 |   | 10,422  |   |     $                                 25.155 |   | 15.5%      |   | 3.4%                           |
|   | Jan.                  2006 |   | 10,991  |   |     $                                 27.950 |   | 16.9%      |   | 4.5%                           |
|   |                       |   |    |   |                                                                                                                                        |   |       |   |                           |

----

|                                                                                                                                         |   | Officers                  * |    |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|
|                                                                                                                                         |   |                        |    |   |
| Nonvested                  Shares Outstanding, January 1, 2006                                                                               |   |                        | 49,816  |   |
|                                                                                                                                         |   |                        |    |   |
| Granted                                                                                                                                      |   |                        | 10,991  |   |
| Vested**                                                                                                                                     |   |                        | (27,924 | ) |
| Cancelled/Forfeited                                                                                                                          |   |                        | -       |   |
|                                                                                                                                         |   |                        |    |   |
| Nonvested                  Shares Outstanding, March 31, 2006                                                                                |   |                        | 32,883  |   |
|                                                                                                                                         |   |                        |         |   |
| *   excludes                  accrued dividend equivalents                                                                    |   |                        |    |   |
| **                  actual shares awarded upon vesting, including dividend equivalents                  and                  adjustments for |
|                        performance measures, totaled 44,575                  shares.                                |

----

|                                                      |   | Years                Remaining      |                          |
|-----------------------------------------------------------|--------|-------------------------------------|-------------------------------|
| Regulatory                Asset                           |   | As                of March 31, 2006 |                          |
|                                                      |   |                                |                          |
| Environmental                Remediation Costs:      |   |                                |                          |   |
| Expended                - Net                             |   |                                | Various                       |   |
| Liability                for Future Expenditures          |   |                                | Not                Applicable |   |
| Gross                Receipts and Franchise Taxes         |   |                                | 1                             |   |
| Income                Taxes - Flowthrough Depreciation    |   |                                | 5                             |   |
| Deferred                Asset Retirement Obligation Costs |   |                                | Not                Applicable |   |
| Deferred                Fuel Costs - Net                  |   |                                | Various                       |   |
| Deferred                Postretirement Benefit Costs      |   |                                | 7                             |   |
| Societal                Benefit Costs                     |   |                                | Various                       |   |
| Premium                for Early Retirement of Debt       |   |                                | Various                       |   |

|                                        |   | March                31,2006 |   | December                31, 2005 |   |
|---------------------------------------------|--------|------------------------------|--------|----------------------------------|--------|
|                                        |   |                         |        |                             |   |  |   |
| Excess                Plant Removal Costs   |   | $                            | 48,260 |                             | $      | 48,071 |   |
| Overcollected                State Taxes    |   |                         | 4,073  |                             |   | 4,025 |   |
| Other                                       |   |                         | 3,104  |                             |   | 1,906 |   |
|                                        |   |                         |   |                             |   |  |   |
| Total                Regulatory Liabilities |   | $                            | 55,437 |                             | $      | 54,002 |   |

----

**-      **

**      - **

**      - **

----

----

|   |      · | SJI Services, LLC (SJIS) - established on January              1,              2006, SJIS  provides              services to SJI and its other subsidiaries, including SJG, such              as information technology,              human resources,              government relations, corporate              communications, materials purchasing, fleet management and insurance. |
|--------|---------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |      ·  | South Jersey Energy Solutions, LLC (SJES) - serves              as a              holding  company              for all of SJI’s nonutility businesses. |
|--------|---------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | · |     South                Jersey Energy Company (SJE) - a third party energy marketer supplying                natural gas to customers within our                territory. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · |     South                Jersey Resources Group (SJRG) - a wholesale gas and risk management                business that supplies natural gas to retail                marketers, utility  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |            businesses and                electricity generators in the mid-Atlantic and southern                regions. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · |     Marina                Energy LLC (Marina) - an owner and operator of energy production                facilities for the commercial and industrial                markets. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · |     South                Jersey Energy Service Plus (SJESP) - an appliance service and installation                company. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|   |         |  |
|--------|--------------------------------------------|--|

|                                               |   | 2006   |   | 2005   |   |
|----------------------------------------------------|--------|--------|--------|--------|--------|
|                                               |   |   |   |   |   |
| *Sales                and Services Provided to:*   |   |   |   |   |   |   |   |
| SJI                                                |   | $      | 547    |   | $      | 567 |   |
| SJE                                                |   |   | 56     |   |   | 205 |   |
| SJIS                                               |   |   | 91     |   |   | - |   |
| SJRG                                               |   |   | 7,507  |   |   | 2,319 |   |
| Marina                                             |   |   | 74     |   |   | 140 |   |
| SJESP                                              |   |   | 124    |   |   | 133 |   |
|                                               |   |   |   |   |   |   |   |
| *Sales                and Services Received from:* |   |   |        |   |   |  |   |
| SJRG                                               |   | $      | 18,435 |   | $      | 1,626 |   |
| SJI                                                |   |   | 3,326  |   |   | 2,527 |   |
| SJIS                                               |   |   | 1,458  |   |   | - |   |
|                                               |   |   |        |   |   |   |   |

----

|                               |   | March                31,2006 |   | December                31, 2005 |   |
|------------------------------------|--------|------------------------------|--------|----------------------------------|--------|
|                               |   |                         |   |                             |   |
| *Amounts                due to:*   |   |                         |   |                             |   |   |   |
| SJI                                |   | $                            | 2,547  |                             | $      | 699 |   |
| SJE                                |   |                         | 1,273  |                             |   | 1,270 |   |
| SJESP                              |   |                         | 1,085  |                             |   | 993 |   |
| SJRG                               |   |                         | 3,600  |                             |   | 2,293 |   |
| SJIS                               |   |                         | 604    |                             |   |  - |   |
|                               |   |                         |   |                             |   |   |   |
| *Amounts                due from:* |   |                         |   |                             |   |   |   |
| SJI                                |   | $                            | 34     |                             | $      | 507 |   |
| SJE                                |   |                         | 9      |                             |   | 32 |   |
| SJRG                               |   |                         | 2,513  |                             |   | - |   |
| Marina                             |   |                         | 7      |                             |   | 25 |   |
| SJESP                              |   |                         | 22     |                             |   | 69 |   |
| SJIS                               |   |                         | 29     |                             |   | - |   |

----

|                                                  |   |                                                                                                                                                                                    | Other                               |
|-------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------|
|                                                       |   |                                         Pension                  Benefits | Postretirement                  Benefits |
|                                                  |   |                                                                                                                                                                                    | 2006                                     |   |   | 2005 |   |   | 2006 |   |   | 2005 |   |
| Service                  Cost                         |   | $                                                                                                                                                                                       | 678                                      |   | $ | 720 |   | $ | 129 |   | $ | 347 |   |
| Interest                  Cost                        |   |                                                                                                                                                                                    | 1,416                                    |   |   | 1,488 |   |   | 307 |   |   | 597 |   |
| Expected                  Return on Plan Assets       |   |                                                                                                                                                                                    | (1,795                                   | ) |   | 1,679 |   |   | (228 | ) |   | (347 | ) |
| Amortization                  of Loss and Other       |   |                                                                                                                                                                                    | 629                                      |   |   | 574 |   |   | 20 |   |   | 33 |   |
| Net                  Periodic                         |   |                                                                                                                                                                                    |                                     |   |   |   |   |   |   |   |   |   |   |
|     Benefit                  Cost |   |                                                                                                                                                                                    | 928                                      |   |   | 1,103 |   |   | 228 |   |   | 630 |   |
| Capitalized                  Benefit Costs            |   |                                                                                                                                                                                    | (399                                     | ) |   | (386 | ) |   | (98 | ) |   | (221 | ) |
| Net                  Periodic Benefit Expense         |   | $                                                                                                                                                                                       | 529                                      |   | $ | 717 |   | $ | 130 |   | $ | 409 |   |

----

|      |   |                            |   | Other                                  |   |
|-----------|--------|---------------------------------|--------|----------------------------------------|--------|
|      |   | Pension                Benefits |   | Postretirement                Benefits |   |
|      |   |                            |        |                                   |   |  |   |
| 2006      |   | $                               | 5,436  |                                   | $      | 2,147 |   |
| 2007      |   |                            | 5,503  |                                   |   | 2,361 |   |
| 2008      |   |                            | 5,561  |                                   |   | 2,474 |   |
| 2009      |   |                            | 5,635  |                                   |   | 2,549 |   |
| 2010      |   |                            | 5,707  |                                   |   | 2,688 |   |
| 2011-2015 |   |                            | 31,384 |                                   |   | 13,318 |   |

|                                                 |   |   |    | Up                to  |   | Years                    |   | Years                    |    | More                than |   |
|------------------------------------------------------|--------|--------|---------|-----------------------|--------|--------------------------|--------|--------------------------|---------|--------------------------|--------|
| Contractual                Cash Obligations          |   | Total  |    | 1                Year |   | 2                & 3 |   | 4                & 5 |    | 5                Years   |   |
|                                                 |   |   |    |                  |   |                     |   |                     |    |                     |   |
| Long-Term                Debt                        |   | $      | 274,493 |                  | $      | 2,273                    |   | $                        | 2,270   |                     | $      | 10,000 |   | $ | 259,950 |   |
| Interest                on Long-Term Debt            |   |   | 220,660 |                  |   | 16,426                   |   |                     | 32,380  |                     |   | 32,287 |   |   | 139,567 |   |
| Operating                Leases                      |   |   | 386     |                  |   | 181                      |   |                     | 174     |                     |   | 31 |   |   | - |   |
| Construction                Obligations              |   |   | 104,388 |                  |   | 34,560                   |   |                     | 69,828  |                     |   | - |   |   | - |   |
| Commodity                Supply Purchase Obligations |   |   | 236,348 |                  |   | 34,772                   |   |                     | 83,795  |                     |   | 46,901 |   |   | 70,880 |   |
| New                Jersey Clean Energy Program       |   |   | 18,383  |                  |   | 5,133                    |   |                     | 13,250  |                     |   | - |   |   | - |   |
| Other                Purchase Obligations            |   |   | 18,676  |                  |   | 9,693                    |   |                     | 8,083   |                     |   | 900 |   |   | - |   |
|                                                 |   |   |         |                  |   |                          |   |                     |         |                     |   |  |   |   |  |   |
| Total                Contractual                     |   |   |         |                  |   |                          |   |                     |         |                     |   |  |   |   |  |   |
| Cash                Obligations                      |   | $      | 873,334 |                  | $      | 103,038                  |   | $                        | 209,780 |                     | $      | 90,119 |   | $ | 470,397 |   |

----

----

|                                                         |   | Three                Months EndedMarch                31, 2006 |   | YearEndedDecember                31, 2005 |    |
|--------------------------------------------------------------|--------|----------------------------------------------------------------|--------|-------------------------------------------|---------|
|                                                         |   |                                                           |        |                                      |    |   |   |
| Beginning                Balance                             |   | $                                                              | 56,717 |                                      |  $ | 51,046 |   |
|  Accruals                and                Adjustments |   |                                                           | (76    | )                                         |    | 11,710 |   |
|  Expenditures                                           |   |                                                           | (1,979 | )                                         |    | (6,039 | ) |
|  Insurance                Recoveries                    |   |                                                           | (473   | )                                         |    | - |   |
|                                                         |   |                                                           |        |                                      |    |   |   |
| Ending                Balance                                |   | $                                                              | 54,189 |                                      |  $ | 56,717 |   |

----

----

**Item      2. Management’s Discussion and Analysis of Financial      Condition**

**and      Results of Operations (Unaudited) **

**Overview**

|   | · | sell                natural gas and pipeline transportation capacity (off-system sales)                on a                wholesale basis to various customers on the interstate pipeline system;                and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | transport                natural gas purchased directly from producers or suppliers for our                own                sales and for some of our customers. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Forward-Looking      Statement & Risk Factors**

----

**Critical      Accounting Policies**

**Estimates      and Assumptions**

**New      Accounting Pronouncements - **

**Temperature      Adjustment Clause -**

**Regulatory      Actions -**

**Environmental      Remediation - **

**Customer      Choice Legislation - **
*Electric      Discount and Energy Competition Act of 1999*

----

**Results      of Operations**

----

|                                                        |   | 2006   |    | 2005   |   |
|-------------------------------------------------------------|--------|--------|---------|--------|--------|
|                                                        |   |   |         |   |   |  |   |
| Operating                Revenues (Thousands):              |   |   |         |   |   |  |   |
| Firm                Sales -                                 |   |   |         |   |   |  |   |
|  Residential                                           |   | $      | 166,436 |   | $      | 97,171 |   |
|  Commercial                                            |   |   | 51,409  |   |   | 35,204 |   |
|  Industrial                                            |   |   | 2,014   |   |   | 2,055 |   |
|  Cogeneration                & Electric Generation |   |   | 1,057   |   |   | 849 |   |
| Firm                Transportation -                        |   |   |    |   |   |   |   |
|  Residential                                           |   |   | 1,362   |   |   | 15,486 |   |
|  Commercial                                            |   |   | 4,221   |   |   | 5,908 |   |
|  Industrial                                            |   |   | 3,270   |   |   | 3,318 |   |
|  Cogeneration                & Electric Generation |   |   | -       |   |   | 45 |   |
|                                                        |   |   |         |   |   |   |   |
|  Total                Firm Revenues                    |   |   | 229,769 |   |   | 160,036 |   |
|                                                        |   |   |         |   |   |   |   |
| Interruptible                                               |   |   | 399     |   |   | 415 |   |
| Interruptible                Transportation                 |   |   | 634     |   |   | 599 |   |
| Off-System                                                  |   |   | 41,643  |   |   | 48,905 |   |
| Capacity                Release & Storage               |   |   | 4,302   |   |   | 4,192 |   |
| Other                                                       |   |   | 334     |   |   | 390 |   |
|                                                        |   |   |         |   |   |   |   |
|  Total                Operating Revenues               |   | $      | 277,081 |   | $      | 214,537 |   |
|                                                        |   |   |         |   |   |   |   |
| Throughput                (MMcf):                           |   |   |         |   |   |   |   |
| Firm                Sales -                                 |   |   |         |   |   |   |   |
|  Residential                                           |   |   | 9,774   |   |   | 8,304 |   |
|  Commercial                                            |   |   | 3,279   |   |   | 3,353 |   |
|  Industrial                                            |   |   | 100     |   |   | 100 |   |
|  Cogeneration                & Electric Generation |   |   | 29      |   |   | 65 |   |
| Firm                Transportation -                        |   |   |    |   |   |   |   |
|  Residential                                           |   |   | 312     |   |   | 3,804 |   |
|  Commercial                                            |   |   | 1,594   |   |   | 2,279 |   |
|  Industrial                                            |   |   | 3,360   |   |   | 4,139 |   |
|  Cogeneration                & Electric Generation |   |   | 2       |   |   | 11 |   |
|                                                        |   |   |         |   |   |   |   |
|  Total                Firm Throughput                  |   |   | 18,450  |   |   | 22,055 |   |
|                                                        |   |   |         |   |   |  |   |
| Interruptible                                               |   |   | 31      |   |   | 38 |   |
| Interruptible                Transportation                 |   |   | 972     |   |   | 855 |   |
| Off-System                                                  |   |   | 4,118   |   |   | 6,663 |   |
| Capacity                Release & Storage               |   |   | 15,105  |   |   | 17,354 |   |
|                                                        |   |   |         |   |   |   |   |
|  Total                Throughput                       |   |   | 38,676  |   |   | 46,965 |   |
|                                                        |   |   |         |   |   |  |   |

----

|                                  |   | 2006                vs. 2005 |   |
|---------------------------------------|--------|------------------------------|--------|
|                                  |   |                         |        |   |
| Operations                            |   | $                            | (1,458 | ) |
| Maintenance                           |   |                         | (88    | ) |
| Depreciation                          |   |                         | 400    |   |
| Energy                and Other Taxes |   |                         | (607   | ) |

----

**Liquidity      and Capital Resources **

----

|                           |   |  As                of March                31, |   |                  As of                      December 31, |   |
|--------------------------------|--------|-----------------------------------------------------|--------|----------------------------------------------------------------------------------------|--------|
|                           |   |                                                | 2006   |                                                                                   |   |   |   | 2005 |   |
|                           |   |                                                |        |                                                                                   |   |   |   |  |   |
| Common Equity             |   |                                                | 51     | %                                                                                      |   |   |   | 53 | % |
| Long-Term                Debt  |   |                                                | 39     | %                                                                                      |   |   |   | 45 | % |
| Short-Term                Debt |   |                                                | 10     | %                                                                                      |   |   |   | 2 | % |
|                           |   |                                                |        |                                                                                   |   |   |   |  |   |
| Total                          |   |                                                | 100    | %                                                                                      |   |   |   | 100 | % |

----

**Capital      Expenditures, Commitments and Contingencies **

|                                                         |   |   |    | Up                to  |   | Years                    |   | Years                    |    | More                than |   |
|--------------------------------------------------------------|--------|--------|---------|-----------------------|--------|--------------------------|--------|--------------------------|---------|--------------------------|--------|
| Contractual                Cash Obligations                  |   | Total  |    | 1                Year |   | 2                & 3 |   | 3                & 5 |    | 5                Years   |   |
|                                                         |   |   |    |                  |   |                     |   |                     |    |                     |   |
| Long-Term                Debt                                |   | $      | 274,493 |                  | $      | 2,273                    |   | $                        | 2,270   |                     | $      | 10,000 |   | $ | 259,950 |   |
| Interest                on Long-Term Debt                    |   |   | 220,660 |                  |   | 16,426                   |   |                     | 32,380  |                     |   | 32,287 |   |   | 139,567 |   |
| Operating                Leases                              |   |   | 386     |                  |   | 181                      |   |                     | 174     |                     |   | 31 |   |   | - |   |
| Construction                Obligations                      |   |   | 104,388 |                  |   | 34,560                   |   |                     | 69,828  |                     |   | - |   |   | - |   |
| Commodity                Supply                              |   |   |    |                  |   |                          |   |                     |         |                     |   |  |   |   |  |   |
|                     Purchase Obligations |   |   | 236,348 |                  |   | 34,772                   |   |                     | 83,795  |                     |   | 46,901 |   |   | 70,880 |   |
| New                Jersey Clean Energy Program               |   |   |         |                  |   |                          |   |                     |         |                     |   |  |   |   |  |   |
|                     Funding              |   |   | 18,383  |                  |   | 5,133                    |   |                     | 13,250  |                     |   | - |   |   | - |   |
| Other                Purchase Obligations                    |   |   | 18,676  |                  |   | 9,693                    |   |                     | 8,083   |                     |   | 900 |   |   | - |   |
|                                                         |   |   |         |                  |   |                          |   |                     |         |                     |   |  |   |   |  |   |
| Total                Contractual Cash Obligations            |   | $      | 873,334 |                  | $      | 103,038                  |   | $                        | 209,780 |                     | $      | 90,119 |   | $ | 470,397 |   |

----

**Market      Risks**

----

| Assets                                |   |   |                                          | Maturity |   | Maturity                  |   |   |                       |
|---------------------------------------|--------|--------|-----------------------------------------------|----------|--------|---------------------------|--------|--------|----------------------------|
|                                  |   |   |  Source              of Fair Value  |     |   | <1                Year |   |   | 1                - 3 Years |   |   | Total |   |
|                                  |   |   |                                               |     |   |                           |   |   |                            |   |   |  |   |
| Prices                Actively Quoted |   |   | NYMEX                                         |     | $      | 2,621                     |   | $      | 39                         |   | $ | 2,660 |   |
| Other                External Sources |   |   | Basis                                         |     |   | -                         |   |   | -                          |   |   | - |   |
|                                  |   |   |                                          |     |   |                      |   |   |                       |   |   |   |   |
| Total                                 |   |   |                                               |     | $      | 2,621                     |   | $      | 39                         |   | $ | 2,660 |   |
|                                  |   |   |                                               |     |   |                           |   |   |                            |   |   |  |   |
| Liabilities                           |   |   |                                               |     |   | Maturity                  |   |   | Maturity                   |   |   |  |   |
|                                       |   |   | Source                of Fair Value           |     |   | <1                Year |   |   | 1                - 3 Years |   |   | Total |   |
|                                  |   |   |                                               |     |   |                           |   |   |                            |   |   |  |   |
| Prices                Actively Quoted |   |   | NYMEX                                         |     | $      | 14,649                    |   | $      | 171                        |   | $ | 14,820 |   |
| Other                External Sources |   |   | Basis                                         |     |   | -                         |   |   | -                          |   |   | - |   |
|                                  |   |   |                                          |     |   |                      |   |   |                       |   |   |   |   |
| Total                                 |   |   |                                               |     | $      | 14,649                    |   | $      | 171                        |   | $ | 14,820 |   |

| Net                Derivatives — Energy Related Asset, January 1, 2006                     |   | $      | 486     |   |
|--------------------------------------------------------------------------------------------------|--------|--------|---------|--------|
| Contracts                Settled During Quarter Ended March 31, 2006, Net                        |   |   | 7,043   |   |
| Other                Changes in Fair Value from Continuing and New Contracts,                Net |   |   | (19,689 | )      |
|                                                                                             |   |   |    |   |
| Net                Derivatives — Energy Related Liability, March 31, 2006                  |   | $      | (12,160 | )      |

----

**Ratio      of Earnings to Fixed Charges**

| Twelve                MonthsEnded                March 31, |   |  Year                Ended December 31, |
|------------------------------------------------------------|--------|----------------------------------------------|
|                                                       |   |                                         |   |   |   |   |   |   |   |   |
| 2006                                                       |   | 2005                                         |   | 2004 |   | 2003 |   | 2002 |   | 2001 |
|                                                       |   |                                         |   |   |   |   |   |   |   |   |
| 3.9x                                                       |   | 4.0x                                         |   | 3.9x |   | 3.3x |   | 2.9x |   | 2.6x |

**Item      3. Quantitative and Qualitative Disclosures about Market      Risks**

**Item        4. Controls and Procedures**

----

| (a)                Exhibits |                                                                                                                                                                                                                                                                                                                                          |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                        |                                                                                                                                                                                                                                                                                                                                          |
| 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:                May 9, 2006 | By:                /s/                Edward J.                Graham                           |
|-----------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                              | Edward                J. Graham                                                                                                                                                                                                   |
|                              | President                & Chief Executive Officer                                                                                                                                                                            |
|                              |                                                                                                                                                                                                                              |
|                              |                                                                                                                                                                                                                              |
| Dated:                May 9, 2006 | By:                /s/                David A.                Kindlick                               |
|                              | David                A. Kindlick                                                                                                                                                                                                  |
|                              | Senior                Vice President & Chief Financial Officer                                                                                                                                                                |

----