Operating Revenue

6 Months Ended

Jun. 30, 2019

Note 4. Operating Revenue

The Companies’ operating revenue consists of the following:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
(millions)
Dominion Energy
Regulated electric sales:
Residential	$	1,094	$	788	$	1,740	$	1,605
Commercial		889		636		1,385		1,160
Industrial		217		121		247		228
Government and other retail		214		210		414		423
Wholesale		41		23		89		65
Nonregulated electric sales		175		282		491		700
Regulated gas sales:
Residential		177		116		779		480
Commercial		73		34		264		137
Other		25		1		63		11
Nonregulated gas sales		71		9		318		97
Regulated gas transportation and storage:
FERC-regulated		247		272		524		534
State-regulated		166		144		379		334
Nonregulated gas transportation and storage		174		124		348		124
Other regulated revenues⁽¹⁾		82		44		126		94
Other nonregulated revenues⁽¹⁾⁽²⁾		101		141		209		277
Total operating revenue from contracts with customers		3,746		2,945		7,376		6,269
Other revenues⁽³⁾		224		143		452		285
Total operating revenue	$	3,970	$	3,088	$	7,828	$	6,554
Virginia Power
Regulated electric sales:
Residential	$	808	$	788	$	1,731	$	1,605
Commercial		681		636		1,317		1,160
Industrial		118		121		230		228
Government and other retail		197		210		401		423
Wholesale		29		23		66		65
Other regulated revenues		62		33		88		65
Other nonregulated revenues⁽²⁾		19		18		33		31
Total operating revenue from contracts with customers		1,914		1,829		3,866		3,577
Other revenues⁽²⁾⁽³⁾		24		—		37		—
Total operating revenue	$	1,938	$	1,829	$	3,903	$	3,577
Dominion Energy Gas
Regulated gas sales:
Residential	$	12	$	13	$	42	$	42
Other		—		2		2		9
Nonregulated gas sales⁽²⁾		1		1		3		3
Regulated gas transportation and storage:
FERC-regulated⁽²⁾		182		183		386		382
State-regulated⁽²⁾		134		139		321		319
NGL revenue⁽¹⁾⁽²⁾		36		50		81		104
Management service revenue⁽²⁾		27		60		58		107
Other regulated revenues⁽²⁾		5		4		13		12
Other nonregulated revenues⁽¹⁾⁽²⁾		2		4		4		6
Total operating revenue from contracts with customers		399		456		910		984
Other revenues		1		3		1		1
Total operating revenue	$	400	$	459	$	911	$	985

(1)

Amounts above include $42 million and $31 million for the three months ended June 30, 2019, $33 million and $21 million for the three months ended June 30, 2018, $93 million and $73 million for the six months ended June 30, 2019 and $63 million and $47 million for the six months ended June 30, 2018 primarily consisting of NGL sales at Dominion Energy and Dominion Energy Gas, respectively, which are considered to be goods transferred at a point in time.

(2)	See Notes 10 and 20 for amounts attributable to related parties and affiliates.

(3)	Amounts above include alternative revenue of $21 million and $35 million at Dominion Energy and $18 million and $26 million at Virginia Power for the three and six months ended June 30, 2019, respectively.

The table below discloses the aggregate amount of the transaction price allocated to fixed-price performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period and when the Companies expect to recognize this revenue. These revenues relate to contracts containing fixed prices where the Companies will earn the associated revenue over time as they stand ready to perform services provided. This disclosure does not include revenue related to performance obligations that are part of a contract with original durations of one year or less. In addition, this disclosure does not include expected consideration related to performance obligations for which the Companies elect to recognize revenue in the amount they have a right to invoice.

Revenue expected to be recognized on multi-year contracts in place at June 30, 2019	2019		2020		2021		2022		2023		Thereafter		Total
(millions)
Dominion Energy	$	808	$	1,561	$	1,461	$	1,343	$	1,173	$	13,570	$	19,916
Virginia Power		11		3		1		—		—		—		15
Dominion Energy Gas		323		626		550		448		324		1,936		4,207

Contract assets represent an entity’s right to consideration in exchange for goods and services that the entity has transferred to a customer. At June 30, 2019 and December 31, 2018, Dominion Energy’s contract asset balances were $37 million and $42 million, respectively. Dominion Energy Gas’ contract asset balances were $51 million and $58 million at June 30, 2019 and December 31, 2018, respectively. Dominion Energy and Dominion Energy Gas’ contract assets are recorded in other deferred charges and other assets in the Consolidated Balance Sheets. Contract liabilities represent an entity’s obligation to transfer goods or services to a customer for which the entity has received consideration, or the amount that is due, from the customer. At June 30, 2019 and December 31, 2018, Dominion Energy’s contract liability balances were $87 million and $106 million, respectively. At June 30, 2019 and December 31, 2018, Virginia Power’s contract liability balances were $26 million and $22 million, respectively. At June 30, 2019 and December 31, 2018, Dominion Energy Gas’ contract liability balances were $13 million and $40 million, respectively. During the six months ended June 30, 2019, Dominion Energy, Virginia Power and Dominion Energy Gas recognized revenue of $91 million, $22 million and $39 million, respectively, from the beginning contract liability balances as the Companies fulfilled their obligations to provide service to their customers. The Companies’ contract liabilities are recorded in other current liabilities and other deferred credits and other liabilities in the Consolidated Balance Sheets.