|                                                                                                                                                                                                                  |   |    |                                                  |   |   |   |   |   |   | **Exhibit                  12** |   |
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| **SOUTH                  JERSEY GAS COMPANY**                                                                                                                                                                         |   |
| **Calculation                  of Ratio of Earnings from Continuing Operations to Fixed                  Charges**                                                                                                    |   |
| (IN                  THOUSANDS)                                                                                                                                                                                       |   |
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|                                                                                                                                                                                                                       |   |    |  Fiscal                  Year Ended December 31, |
|                                                                                                                                                                                                                  |   |    |                                                       |   |   |   |   |   |   |                            |   |   |   |   |   |   |
|                                                                                                                                                                                                                  |   |    | 2006                                                  |   |   | 2005   |   |   | 2004   |                            |   | 2003 |   |   | 2002 |   |
|                                                                                                                                                                                                                  |   |    |                                                  |   |   |   |   |   |   |                            |   |   |   |   |   |   |
| Net                  Income*                                                                                                                                                                                          |   |  $ | 35,779                                                |   | $      | 34,547 |   | $      | 31,462 |                            | $      | 26,608 |   | $ | 23,222 |   |
|                                                                                                                                                                                                                  |   |    |                                                  |   |   |   |   |   |   |                            |   |   |   |   |   |   |
| Income                  Taxes, Net                                                                                                                                                                                    |   |    | 25,811                                                |   |   | 25,185 |   |   | 22,969 |                            |   | 19,619 |   |   | 17,372 |   |
|                                                                                                                                                                                                                  |   |    |                                                  |   |   |   |   |   |   |                            |   |   |   |   |   |   |
| Fixed                  Charges**                                                                                                                                                                                      |   |    | 22,274                                                |   |   | 19,317 |   |   | 18,639 |                            |   | 19,868 |   |   | 20,972 |   |
|                                                                                                                                                                                                                  |   |    |                                                  |   |   |   |   |   |   |                            |   |   |   |   |   |   |
| Capitalized                  Interest                                                                                                                                                                                 |   |    | (175                                                  | )      |   | (1,161 | )      |   | (733   | )                               |   | (564 | ) |   | (359 | ) |
|                                                                                                                                                                                                                  |   |    |                                                       |   |   |   |   |   |   |                            |   |   |   |   |   |   |
|                                                                                                                                                                                                                  |   |    |                                                  |   |   |   |   |   |   |                            |   |   |   |   |   |   |
| Total                  Available for Coverage                                                                                                                                                                         |   |  $ | 83,689                                                |   | $      | 77,888 |   | $      | 72,337 |                            | $      | 65,531 |   | $ | 61,207 |   |
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| Total                  Available                                                                                                                                                                                      |   |    | 3.8x                                                  |   |   | 4.0x   |   |   | 3.9x   |                            |   | 3.3x |   |   | 2.9x |   |
| Fixed                  Charges                                                                                                                                                                                        |   |    |                                                  |   |   |   |   |   |   |                            |   |   |   |   |   |   |
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| *                  Net Income before Discontinued Operations                                                                                                                                                          |   |    |                                                  |   |   |   |   |   |   |
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| **                  Fixed charges consist of interest charges and preferred dividend                  requirement amounting to $45,000 in 2005 and $135,000 in                  2004 (rentals are not material). |
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