sjiform11k2007.htm


 



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM 11-K


(Mark One):

[ X ]
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the fiscal year ended December 31, 2007.

[ ]
TRANSITION REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from __________ to __________.


Commission File Number 1-6364

A.                    Full title of the plan and the address of the plan, if different from that of the issuer named below:


South Jersey Industries, Inc. 401(K) Plan


B.  
Name of issuer of the securities held pursuant of the plan and the address of its principal executive office:

SOUTH JERSEY INDUSTRIES, INC.
One South Jersey Plaza
Folsom, NJ 08037



 
 
 













South Jersey Industries,
 
Inc. 401(K)Plan
 

Financial Statements as of December 31, 2007
and 2006, and for the Year Ended December 31,
2007, and Supplemental Schedules as of and for
the Year Ended December 31, 2007, and Report
of Independent Registered Public Accounting Firm.
 
 
 
 
SOUTH JERSEY INDUSTRIES, INC. 401(K) PLAN
 
TABLE OF CONTENTS
 
 
 
 
   Page
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
1
FINANCIAL STATEMENTS:
 
  
Statements of Net Assets Available for Benefits as of December 31, 2007 and 2006
 
2
Statement of Changes in Net Assets Available for Benefits for the Year Ended  December 31, 2007
 
3
Notes to Financial Statements
 
 
4-10
SUPPLEMENTAL SCHEDULES:
 
  
Form 5500, Schedule H, Part IV, Line 4i—Schedule of Assets (Held at End of Year) as of December 31, 2007
11
   
   
NOTE:
All other schedules required by Section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.
  

 

 
 
 




REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Trustees and Participants of
South Jersey Industries, Inc. 401 (K) Plan
Folsom, New Jersey

We have audited the accompanying statements of net assets available for benefits of South Jersey Industries, Inc. 401 (K) Plan (the “Plan”) as of December 31, 2007 and 2006, and the related statements of changes in net assets available for benefits for the year ended December 31, 2007.  These financial statements are the responsibility of the Plan's management.  Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan's internal control over financial reporting.  Accordingly, we express no such opinion.  An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2007 and 2006, and the changes in net assets available for benefits for the year ended December 31, 2007, in conformity with accounting principles generally accepted in the United States of America.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole.  The supplemental schedule of assets (held at end of year), as of December 31, 2007, is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974.  This schedule is the responsibility of the Plan’s management.  Such supplemental schedule has been subjected to the auditing procedures applied in our audits of the basic 2007 financial statements and, in our opinion, is fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole.



/s/ DELOITTE & TOUCHE LLP

Philadelphia, Pennsylvania
June 20, 2008

 
1
 
 


             
SOUTH JERSEY INDUSTRIES, INC. 401(K) PLAN
        
             
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
        
DECEMBER 31, 2007 AND 2006
            
             
             
ASSETS
  
2007
    
2006
  
             
INVESTMENTS - AT FAIR VALUE:
            
  Cash
   $ 53,843     $ 64,290  
  South Jersey Industries, Inc. Common Stock
     78,622,492       75,834,829  
  Mutual Funds
     19,267,429       15,549,153  
  Common/Collective Trusts
     4,588,255       3,993,006  
  Participant Loan Funds
     549,816       523,951  
                 
  Total Investments
     103,081,835       95,965,229  
                 
RECEIVABLES:
                
  Participants Contributions
     266,618       254,957  
  Employer Contributions
     72,187       70,926  
  Accrued Investment Income
     12,122       9,212  
                 
  Total Receivables
     350,927       335,095  
                 
                 
NET ASSETS AVAILABLE FOR BENEFITS AT FAIR VALUE
     103,432,762       96,300,324  
                 
  Adjustments from fair value to contract value for fully benefit-responsive investment contracts
     41,669       77,337  
                 
NET ASSETS AVAILABLE FOR BENEFITS
   $ 103,474,431     $ 96,377,661  
                 
                 
                 
See notes to financial statements.
                


 
2
 



       
SOUTH JERSEY INDUSTRIES, INC. 401(K) PLAN
      
       
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
  
YEAR ENDED DECEMBER 31, 2007
      
       
       
   
2007
  
       
ADDITIONS:
      
  Investment Income:
      
    Dividends and Interest
   $ 3,971,182  
    Net Appreciation in Fair Value of Investments
     5,496,564  
         
Net Investment Income
     9,467,746  
         
  Contributions:
        
    Participant Contributions
     4,017,111  
    Employer Contributions
     1,074,549  
         
Total Contributions
     5,091,660  
         
DEDUCTIONS:
        
  Benefits Paid to Participants
     7,459,636  
  Administration Fees
     3,000  
         
Total Deductions
     7,462,636  
         
         
INCREASE IN NET ASSETS
     7,096,770  
         
NET ASSETS AVAILABLE FOR BENEFITS - Beginning of year
     96,377,661  
         
NET ASSETS AVAILABLE FOR BENEFITS - End of year
   $ 103,474,431  
         
         
         
         
See notes to financial statements.
        


 
3
 


SOUTH JERSEY INDUSTRIES, INC. 401(K) PLAN

NOTES TO FINANCIAL STATEMENTS
 


1.
DESCRIPTION OF THE PLAN

 
The following description of the South Jersey Industries, Inc. 401(k) Plan (the “Plan”) is provided for general information purposes only.  Participants should refer to the Plan Document for more complete information.

 
General – The Plan is a defined contribution plan covering substantially all full time employees of South Jersey Industries, Inc. and subsidiaries (“SJI” or the “Company”) and part-time employees who have one or more years of service. The Compensation Committee of the Board of Directors of the Company controls and manages the operation and administration of the Plan.  Merrill Lynch Bank & Trust Company, FSB (“Merrill Lynch”) serves as the trustee of the Plan.  The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”).

 
Enrollment – Beginning May 1, 2007, all newly hired employees are automatically enrolled into the Plan at a 1% deferral rate.  Participants have 60 days from their effective date of enrollment to opt out of the Plan.

 
Contributions – Each year, participants may contribute up to 75% of their pretax compensation, excluding overtime, bonuses and all forms of incentive compensation (except commissions), to the Plan. The Company matches 50% of the percentage of employee deferral contributions as determined by the Plan document as summarized below:

 
        50% of the first 6% of salary deferral contributions

 
§
Non-union employees hired before 7/1/2003
 
§
Local 95 and Local 76 union employees hired before 11/4/2004
 
§
Local 1293 union employees hired before 12/17/2004

 
        50% of the first 8% of salary deferral contributions

 
§
Non-union employees hired on or after 7/1/2003
 
§
Local 95 and Local 76 union employees hired on or after 11/4/2004
 
§
Local 1293 union employees hired on or after 12/17/2004
 
§
South Jersey Energy Service Plus employees hired on or after 4/15/2003

The Plan also allows for an after-tax contribution to the Plan of the cash equivalent of unused personal and vacation time off for the Plan year, as well as providing for an additional year-end Company contribution for the same groups of employees eligible for the match on the first 8% of salary deferral contributions.  These additional year-end contributions are $500 for participants with under 10 years of service, and $1,000 for participants with 10 years of service or greater.

 
4
 


 
Per the Plan guidelines, additional amounts may be contributed at the discretion of the Company’s Board of Directors. Contributions are subject to certain IRC limitations.  Participants may also contribute amounts representing distributions from other qualified defined benefit or defined contribution plans.

 
Participant Accounts – Individual accounts are maintained for each Plan participant. Each participant’s account is credited with the participant’s contribution, the Company’s matching contribution, and allocations of (1) Company discretionary contributions and (2) Plan earnings, and charged with an allocation of Plan losses and administrative expenses.  Allocations are based on participant earnings or account balances, as defined.  The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.  Principal and interest are paid ratably through payroll deductions.
 
Investments – Participants direct the investment of their contributions into various investment options offered by the Plan. Beginning in September 2005, participants were given the option to self-direct their Company match.  If no direction was made, Company contribution automatically defaulted to the Merrill Lynch Retirement Preservation Trust, except for members of one of the Company’s union groups which default to SJI Common Stock.  Beginning May 1, 2007, unless directed by the Participant, Company contributions were automatically invested in a Personal Manager Account from Merrill Lynch Advice Access, or SJI Common Stock for members of one of the Company’s union groups.  Participants may transfer amounts related to Company contributions as soon as they are contributed to the Participants’ account, thus all investments are participant-directed.  The Plan offered the following as investment options in 2006:
 

Name
Objective
   
South Jersey Industries, Inc. Common Stock
Growth & Income
Merrill Lynch Retirement Preservation Trust
Capital Preservation
Managers Special Equity Fund (2)
Growth
JP Morgan Large Cap Equity Growth Fund (2)
Growth & Income
ING International Value Fund
Growth
BlackRock Bond Fund (1,2)
Income
BlackRock Basic Value Fund (1)
Growth & Income
BlackRock S&P 500 Index Fund (1)
Growth
Lord Abbett Mid Cap Value Fund (2)
Growth

     (1)
Effective September 29, 2006, Merrill Lynch Investment Managers (MLIM®) completed its merger with BlackRock, Inc. As a result of the transaction, the name of this investment fund was renamed from Merrill Lynch to BlackRock.

     (2)
Effective May 1, 2007, these investment options were replaced with other investment options with similar objectives.  The replacement funds offered are as follows:

 
5
 




Name
Objective
   
American Growth Fund of America
Growth
Pioneer Bond Fund
Income
Phoenix Mid Cap Value Fund
Growth
Jennison Small Company Fund
Growth

The following investment options were added to the Plan effective May 1, 2007:

Name
Objective
   
AIM Capital Development Fund
Growth
AIM International Growth Fund
Growth
Alger Small Cap Growth Fund
Growth
AllianceBern Small/Mid Cap Value Fund
Growth
Allianz CCM Capital Appreciation Fund
Growth
American Growth Fund of America
Growth
BlackRock Large Cap Value Fund
Growth
Columbia Small Cap Value Fund
Growth
Columbia Marsico International Opportunity Fund
Growth
Columbia Mid Cap Value Fund
Growth
Eaton Vance Large Cap Value Fund
Growth & Income
Eaton Vance Dividend Builder Fund
Growth & Income
Franklin Small Cap Value Fund
Growth
Janus Advisor Forty Fund
Growth
Janus Advisor International Group Fund
Growth
Jennison Small Company Fund
Growth
Jennison Utility Fund
Growth & Income
MFS Utilities Fund
Growth & Income
Munder Mid Cap Core Growth Fund
Growth
Phoenix Mid Cap Value Fund
Growth
Pioneer Bond Fund
Income
Van Kampen Growth & Income Fund
Growth & Income
Van Kampen Mid Cap Growth Fund
Growth
Van Kampen Small Cap Growth Fund
Growth
Franklin Total Return Fund
Income
ING Intermediate Bond Fund
Income

Vesting – Participants are vested immediately in their contributions plus actual earnings thereon.  Vesting in the Company’s contribution portion of their accounts is based on years of continuous service.  A participant is 100% vested after three years of credited service.

 
6
 


 
Participant Loans – Participants may borrow from their fund accounts up to a maximum of $50,000 or 50% of their account balance, which ever is less.  The loans are secured by the balance in the participant’s account and bear interest at rates commensurate with local prevailing rates as determined quarterly by the plan administrator.

 
Payment of Benefits – On termination of service for any reason, a participant is eligible to receive a lump-sum amount equal to the value of the participant’s vested interest in his or her account, unless the participant’s vested interest is less than $1,000, in which case the funds are automatically distributed to the participant at year-end.

Forfeited Accounts – At December 31, 2007 and 2006, forfeited nonvested accounts totaled $21,319 and $16,614, respectively. These accounts will be used to reduce future employer contributions or to pay Plan expenses. During the years ended December 31, 2007 and 2006, no forfeited amounts were used to reduce Company contributions or to pay Plan expenses.
 
 
Plan Amendments – The Plan was amended during 2006 and 2007 as follows:

 
·
Effective January 1, 2006 – Incorporated numerous previously adopted amendments into the Plan document and reflect certain changes in law.
 
·
Effective January 1, 2007 – Clarified the terms used to define those individuals, other than Plan Participants, who are eligible for the receipt of rollover distributions from the Plan.
 
·
Effective May 1, 2007 – Automatic enrollment of all newly hired employees at a 1% deferral rate.  This deferral rate will automatically increase 1% per year until reaching a maximum of 8%.  Participants may elect to opt out of the Plan or alter their deferral rate.


2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 
Basis of Accounting – The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and were prepared using the accrual basis of accounting.

 
Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of net assets available for benefits and changes therein.  Actual results could differ from those estimates.

 
Risks and Uncertainties – The Plan utilizes various investment instruments.  Investment securities, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility.  Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and those changes could materially affect the amounts reported in the financial statements.

 
7
 


 
Included in the Plan’s net assets available for benefits at December 31, 2007 and 2006, are investments in Company common stock amounting to approximately $78.6 million and $75.8 million, respectively, whose value could be subject to change based upon market conditions.

Investment Valuation and Income Recognition – Investments in South Jersey Industries, Inc. common stock are stated at fair value, which represents the closing price for the stock as traded on the New York Stock Exchange.  The Merrill Lynch Retirement Preservation Trust (RPT) is a stable value common collective trust fund that is stated at fair value as determined by the issuer of the common/collective trust funds based on the fair market value of the underlying investments, and then adjusted to contract value.  The RPT invests principally in synthetic guaranteed investment contracts issued by banks, insurance companies, and other issuers.  Fair value of the RPT is calculated by discounting the related cash flows based on current yields of similar instruments with comparable durations.  Contract value represents contributions made to the fund, plus earnings, less participant withdrawals.  Participants may ordinarily direct the withdrawal or transfer of all or a portion of their investment at contract value.  All other investments are stated at fair value based on quoted market prices.  Participant loans are valued at the outstanding loan balances, which approximates fair value.

 
Purchases and sales of securities are recorded on a trade-date basis.  Interest income is recorded on the accrual basis.  Dividends are recorded on the ex-dividend date.

 
Expenses – Administrative expenses of the Plan are paid by either the Plan or the Company, as provided in the Plan Document.

Payment of Benefits – Benefit payments to participants are recorded upon distribution. Amounts allocated to accounts of persons who have elected to withdraw from the Plan but have not yet been paid were $0 at both December 31, 2007 and 2006.
 


3.
INVESTMENTS

The following is a summary of investments of the Plan that exceed 5% of the net assets available for benefits:

   
December 31,
  
   
2007
    
2006
  
             
South Jersey Industries, Inc. common stock
   $ 78,622,492     $ 75,834,829  

Investments in South Jersey Industries, Inc. common stock are stated at fair value based on quoted market prices, which was $36.09 and $33.41 per share at December 31, 2007 and 2006, respectively, and represents the closing price for the stock as traded on the New York Stock Exchange.

 
8
 

 During the year ended December 31, 2007, the Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated in value as follows:

 
   
2007
  
       
South Jersey Industries, Inc. common stock
   $ 6,012,382  
Equity Funds
     (570,201 )
Bond Funds
     54,383  
Total
   $ 5,496,564  

 

4.
PLAN TERMINATION

Although it has not expressed any intention to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions set forth in ERISA.  In the event that the Plan is terminated, participants would become 100% vested in their accounts.


5.
EXEMPT PARTY-IN-INTEREST TRANSACTIONS

Certain Plan investments are shares of funds managed by Merrill Lynch. Merrill Lynch is the trustee as defined by the Plan and, therefore, these transactions qualify as exempt party-in-interest transactions. In addition, Merrill Lynch Investment Managers merged with BlackRock, Inc., on September 29, 2006 as discussed in Note 1.  As such, transactions in BlackRock funds also qualify as exempt party-in-interest transactions. Certain fees paid by the Plan for investment management services were included as a reduction of the return earned on each fund.  Additional fees paid by the Plan for the investment management services were $3,000 for the year ended December 31, 2007.
 
At December 31, 2007 and 2006, the Plan held 2,178,512 and 2,269,824 shares, respectively, of common stock of the Company, the sponsoring employer, with a cost basis of $74,506,782 and $69,433,835, respectively. During the year ended December 31, 2007, the Plan recorded dividend income associated with the Plan’s investments in Company common stock of $2,190,747.
 
 
6.
FEDERAL INCOME TAX STATUS

The Internal Revenue Service has determined and informed the Company by a letter dated September 16, 2003, that the Plan and related trust, as then designed, were in accordance with the applicable regulations of the IRC.  The Plan has been amended since receiving the determination letter.  However, the Company and the plan administrator believe that the Plan is currently designed and operated in compliance with the applicable requirements of the IRC and the Plan and related trust continue to be tax-exempt.  Therefore, no provision for income taxes has been included in the Plan’s financials statements.

 
9
 



7.
NONEXEMPT PARTY-IN-INTEREST TRANSACTIONS
 
The Company remitted the following participant contributions to the trustee subsequent to the date required by Department of Labor (“D.O.L.”) Regulation 2510.3-102.
 
 
Contribution Date
  
Amount
  
Remittance Date
         
December 2005
April 2006
  
253,766
275,395
 
  
January 23, 2006
May 22, 2006
The Company filed a Voluntary Fiduciary Correction Program ("VFCP") application with the D.O.L. on August 22, 2006, related to the correction of the delinquent remittance of participant contributions.  As part of the correction, the Company remitted $1,182 to the Plan representing the earnings that the contributions would have made if they had been deposited timely.   The VFCP was approved by the D.O.L. on August 28, 2006.  Pursuant to the approval, the Plan was allowed to maintain its tax-exempt status and the Company was not obligated to pay excise taxes related to these nonexempt party-in-interest transactions. 


8.
RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
 
The following is a reconciliation of net assets available for benefits per the financial statements to the Form 5500 as of December 31, 2007:
 
 
   
2007
  
       
Net assets available for benefits per the financial statements
   $ 103,474,431  
Adjustment from contract value to fair value for fully
        
  Benefit-responsive investment contracts
     (41,669 )
Net assets available for benefits per the Form 5500
   $ 103,432,762  
         
Increase in Net Assets per the financial statements
   $ 7,096,770  
Adjustment from contract value to fair value for fully
        
  Benefit-responsive investment contracts
     35,668  
Increase in Net Assets per the Form 5500
   $ 7,132,438  

 



 
10
 

   
SOUTH JERSEY INDUSTRIES, INC. 401(K) PLAN
            
                   
   
FORM 5500, SCHEDULE H, PART IV, LINE 4i - SCHEDULE OF ASSETS (HELD AT END OF YEAR)
          
   
AS OF DECEMBER 31, 2007
              
                   
   
Identity of Party Involved
Description of Asset
Investment Type
  
Cost
  
Current Value
  
  *  
Merrill Lynch Bank & Trust Co., FSB
Cash
Cash
   $ **   $ 53,843  
  *  
South Jersey Industries, Inc.
SJI Common Stock
Common Stock
     **     78,622,492  
  *  
Merrill Lynch Bank & Trust Co., FSB
ML Retirement Preservation Trust
Common/Collective Trust
     **     4,588,255  
     
AIM
AIM Capital Development Fund
Mutual Fund
     **     48,133  
     
AIM
AIM International Growth Fund A
Mutual Fund
     **     348,880  
     
Alger
Alger Small Cap Growth Fund A
Mutual Fund
     **     52,385  
     
Alliancebern
Alliancebern Small/Mid Value Class A
Mutual Fund
     **     43,271  
     
Allianz
Allianz CCM Capital Appreciation Fund A
Mutual Fund
     **     1,135  
     
American
American Growth Fund of America R3
Mutual Fund
     **     1,736,515  
  *  
BlackRock
BlackRock Total Return Portfolio
Mutual Fund
     **     5,578  
  *  
BlackRock
BlackRock Basic Value Fund A
Mutual Fund
     **     1,764,415  
  *  
BlackRock
BlackRock S&P 500 Index Fund I
Mutual Fund
     **     2,650,295  
  *  
BlackRock
BlackRock Large Cap Value A
Mutual Fund
     **     89,872  
     
Columbia
Columbia Mid Cap Value Fund A
Mutual Fund
     **     258,473  
     
Columbia
Columbia Small Cap Value II A
Mutual Fund
     **     81,033  
     
Columbia Marsico
Columbia Marsico International Opp A
Mutual Fund
     **     119,219  
     
Eaton Vance
Eaton Vance Dividend Builder Fund
Mutual Fund
     **     76,447  
     
Eaton Vance
Eaton Vance Large-Cap Value Fund A
Mutual Fund
     **     266,747  
     
Franklin
Franklin Small Cap Value Class A
Mutual Fund
     **     72,556  
     
Franklin
Franklin Total Return Fund Class A
Mutual Fund
     **     238,445  
     
ING
ING International Value Fund
Mutual Fund
     **     4,636,869  
     
ING
ING Intermediate Bond Fund Class A
Mutual Fund
     **     954,130  
     
Janus
Janus Advisor Forty Fund A
Mutual Fund
     **     11,229  
     
Janus
Janus Advisor International Growth Fund
Mutual Fund
     **     132,419  
     
Jennison
Jennison Utility Fund Class A
Mutual Fund
     **     8,019  
     
Jennison
Jennison Small Company Fund Class A
Mutual Fund
     **     1,566,174  
     
Mercury TTL
Mercury TTL Ret. BD Distributor
Mutual Fund
     **     2  
     
MFS
MFS Utilities Fund Class A
Mutual Fund
     **     206,735  
     
Munder
Munder Mid Cap Core Growth
Mutual Fund
     **     76,668  
     
Phoenix
Phoenix Mid Cap Value Fund Class A
Mutual Fund
     **     1,612,644  
     
Pioneer
Pioneer Bond Fund
Mutual Fund
     **     2,120,130  
     
Van Kampen
Van Kampen Growth & Income Class A
Mutual Fund
     **     13,764  
     
Van Kampen
Van Kampen Mid Cap Growth Fund A
Mutual Fund
     **     35,308  
     
Van Kampen
Van Kampen Small Cap Growth A
Mutual Fund
     **     39,939  
  *  
Plan Participants
Participant Loan Fund -
                
       
  Maturing 2008-2017 at interest rates of 5.00-9.25%
Loans
     **     549,816  
                         
              $ **   $ 103,081,835  
 
*
  
Indicates party-in-interest to the Plan.
                
 
**
  
Cost information is not required for participant-directed investments and therefore is not included.
            
     
See Note 1 to the Financial Statements under the caption "Investments" for additional discussion.
              
                         


 
11
 


SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the Chairman of the Trust Committee of South Jersey Industries, Inc. has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.



SOUTH JERSEY INDUSTRIES, INC.




 Date:    June 20, 2008                                                           BY: /s/ DAVID A. KINDLICK                          
David A. Kindlick
Chairman, Trust Committee
Vice President and Chief Financial Officer