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Revenues
 6 Months Ended
Jun. 30, 2020
Revenue from Contract with Customer [Abstract]  
Revenues
3. Revenues
Our revenues are derived primarily from the sale of natural gas and electricity to customers, including affiliates. Revenue is measured based upon the quantity of gas or power delivered at prices contained or referenced in the
customer's contract, and excludes any sales incentives (e.g. rebates) and amounts collected on behalf of third parties (e.g. sales tax).

Our revenues also include asset optimization activities. Asset optimization activities consist primarily of purchases and sales of gas that meet the definition of trading activities per FASB ASC Topic 815, Derivatives and Hedging. They are therefore excluded from the scope of FASB ASC Topic 606, Revenue from Contracts with Customers.

Revenues for electricity and natural gas sales are recognized under the accrual method when our performance obligation to a customer is satisfied, which is the point in time when the product is delivered and control of the product passes to the customer. Electricity and natural gas products may be sold as fixed-price or variable-price products. The typical length of a contract to provide electricity and/or natural gas is twelve months. Customers are billed and typically pay at least monthly, based on usage. Electricity and natural gas sales that have been delivered but not billed by period end are estimated and recorded as accrued unbilled revenues based on estimates of customer usage since the date of the last meter read provided by the utility. Volume estimates are based on forecasted volumes and estimated residential and commercial customer usage. Unbilled revenues are calculated by multiplying these volume estimates by the applicable rate by customer class (residential or commercial). Estimated amounts are adjusted when actual usage is known and billed.

The following table discloses revenue by primary geographical market, customer type, and customer credit risk profile (in thousands). The table also includes a reconciliation of the disaggregated revenue to revenue by reportable segment (in thousands).
Reportable Segments
Three Months Ended June 30, 2020Three Months Ended June 30, 2019
Retail ElectricityRetail Natural GasTotal Reportable SegmentsRetail ElectricityRetail Natural GasTotal Reportable Segments
Primary markets (a)
  New England$40,161  $2,729  $42,890  $67,905  $3,152  $71,057  
  Mid-Atlantic38,743  5,929  44,672  54,503  5,334  59,837  
  Midwest14,506  4,191  18,697  17,473  4,736  22,209  
  Southwest18,845  3,514  22,359  20,895  3,807  24,702  
$112,255  $16,363  $128,618  $160,776  $17,029  $177,805  
Customer type
  Commercial$29,408  $7,290  $36,698  $59,699  $8,834  $68,533  
  Residential78,909  14,965  93,874  97,419  16,516  113,935  
  Unbilled revenue (b)3,938  (5,892) (1,954) 3,658  (8,321) (4,663) 
$112,255  $16,363  $128,618  $160,776  $17,029  $177,805  
Customer credit risk
  POR$73,694  $8,376  $82,070  $110,270  $7,928  $118,198  
  Non-POR38,561  7,987  46,548  50,506  9,101  59,607  
$112,255  $16,363  $128,618  $160,776  $17,029  $177,805  
Reportable Segments
Six Months Ended June 30, 2020Six Months Ended June 30, 2019
Retail ElectricityRetail Natural GasTotal Reportable SegmentsRetail ElectricityRetail Natural GasTotal Reportable Segments
Primary markets (a)
New England$86,754  $9,783  $96,537  $144,139  $11,680  $155,819  
Mid-Atlantic84,585  21,733  106,318  121,314  26,703  148,017  
Midwest29,495  17,798  47,293  39,580  25,225  64,805  
Southwest33,189  11,641  44,830  37,835  11,483  49,318  
$234,023  $60,955  $294,978  $342,868  $75,091  $417,959  
Customer type
Commercial69,423  22,807  $92,230  $126,934  $28,701  $155,635  
Residential172,137  48,328  220,465  222,187  57,611  279,798  
Unbilled revenue (b)(7,537) (10,180) (17,717) (6,253) (11,221) (17,474) 
$234,023  $60,955  $294,978  $342,868  $75,091  $417,959  
Customer credit risk
POR$158,607  $31,413  $190,020  $239,207  $41,223  $280,430  
Non-POR75,416  29,542  104,958  103,661  33,868  137,529  
$234,023  $60,955  $294,978  $342,868  $75,091  $417,959  

(a) The primary markets include the following states:

•New England - Connecticut, Maine, Massachusetts, New Hampshire;
•Mid-Atlantic - Delaware, Maryland (including the District of Colombia), New Jersey, New York and Pennsylvania;
•Midwest - Illinois, Indiana, Michigan and Ohio; and
•Southwest - Arizona, California, Colorado, Florida, Nevada, and Texas.

(b) Unbilled revenue is recorded in total until it is actualized, at which time it is categorized between commercial and residential customers.

We record gross receipts taxes on a gross basis in retail revenues and retail cost of revenues. During the three months ended June 30, 2020 and 2019, our retail revenues included gross receipts taxes of $0.4 million and $0.3 million, respectively, and our retail cost of revenues included gross receipts taxes of $1.4 million and $1.8 million, respectively. During the six months ended June 30, 2020 and 2019, our retail revenues included gross receipts taxes of $0.7 million and $0.8 million, respectively, and our retail cost of revenues included gross receipts taxes of $3.1 million and $4.5 million, respectively.

Accounts receivables and Allowance for Credit Losses

We adopted ASU 2016-13 effective January 1, 2020. See "New Accounting Standards Recently Adopted" in Note 2 "Basis of Presentation" for more details.

The Company conducts business in many utility service markets where the local regulated utility purchases our receivables, and then becomes responsible for billing the customer and collecting payment from the customer (“POR programs”). These POR programs result in substantially all of the Company’s credit risk being linked to the
applicable utility, which generally has an investment-grade rating, and not to the end-use customer. The Company monitors the financial condition of each utility and currently believes its receivables are collectible.

In markets that do not offer POR programs or when the Company chooses to directly bill its customers, certain receivables are billed and collected by the Company. The Company bears the credit risk on these accounts and records an appropriate allowance for doubtful accounts to reflect any losses due to non-payment by customers. The Company’s customers are individually insignificant and geographically dispersed in these markets. The Company writes off customer balances when it believes that amounts are no longer collectible and when it has exhausted all means to collect these receivables.

For trade accounts receivables, the Company accrues an allowance for doubtful accounts by business segment by pooling customer accounts receivables based on similar risks characteristics, such as customer type, geography, aging analysis, payment terms, and related macro-economic factors. Expected credit loss exposure is evaluated for each of our accounts receivables pools. Expected credits losses are established using a model that considers historical collections experience, current information, and reasonable and supportable forecasts. The Company writes off accounts receivable balances against the allowance for doubtful accounts when the accounts receivable is deemed to be uncollectible.

A rollforward of our allowance for credit losses for the six months ended June 30, 2020 are presented in the table below (in thousands):

Balance 12/31/19$(4,797) 
Impact of adoption of ASC 326(633) 
Current period bad debt provision(3,134) 
Write-offs2,707  
Recovery of previous write offs(442) 
Balance 6/30/20$(6,299)