Revenue Recognition (Notes)

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Revenue Recognition

We recognize revenue when our performance obligations under contracts with customers have been satisfied, which generally occurs when our businesses have delivered or transported natural gas, electricity or propane to customers. We exclude sales taxes and other similar taxes from the transaction price. Typically, our customers pay for the goods and/or services we provide in the month following the satisfaction of our performance obligation. The revenues in the following tables exclude operating revenues from PESCO that are now reflected as discontinued operations. The following table displays our revenue from continuing operations by major source based on product and service type for the three months ended March 31, 2020 and 2019:

	Three months ended March 31, 2020												Three Months Ended March 31, 2019
(in thousands)	Regulated Energy			Unregulated Energy			Other and Eliminations			Total			Regulated Energy			Unregulated Energy			Other and Eliminations			Total
Energy distribution
Delaware natural gas division	$	26,567		$	—		$	—		$	26,567		$	27,549		$	—		$	—		$	27,549
Florida natural gas division	8,477			—			—			8,477			7,900			—			—			7,900
FPU electric distribution	14,219			—			—			14,219			14,378			—			—			14,378
FPU natural gas distribution	25,444			—			—			25,444			23,786			—			—			23,786
Maryland natural gas division	9,138			—			—			9,138			10,047			—			—			10,047
Sandpiper Energy natural gas/propane operations	6,292			—			—			6,292			7,082			—			—			7,082
Total energy distribution	90,137			—			—			90,137			90,742			—			—			90,742
Energy transmission
Aspire Energy	—			9,781			—			9,781			—			13,470			—			13,470
Eastern Shore	19,279			—			—			19,279			19,056			—			—			19,056
Peninsula Pipeline	4,824			—			—			4,824			3,565			—			—			3,565
Total energy transmission	24,103			9,781			—			33,884			22,621			13,470			—			36,091
Energy generation
Eight Flags	—			4,323			—			4,323			—			4,142			—			4,142
Propane operations
Propane delivery operations	—			38,282			—			38,282			—			46,125			—			46,125
Energy delivery services
Marlin Gas Services	—			1,309			—			1,309			—			2,434			—			2,434
Other	—			20			—			20			—			—			—			—
Total energy delivery services	—			1,329			—			1,329			—			2,434			—			2,434
Other and eliminations
Eliminations	(11,285		)	(25		)	(4,409		)	(15,719		)	(9,745		)	(5,496		)	(4,366		)	(19,607		)
Other	—			341			133			474			—			405			132			537
Total other and eliminations	(11,285		)	316			(4,276		)	(15,245		)	(9,745		)	(5,091		)	(4,234		)	(19,070		)
Total operating revenues (1)	$	102,955		$	54,031		$	(4,276	)	$	152,710		$	103,618		$	61,080		$	(4,234	)	$	160,464

⁽¹⁾ Total operating revenues for the three months ended March 31, 2020, include other revenue (revenues from sources other than contracts with customers) of $0.7 million and $0.1 million for our Regulated and Unregulated Energy segments, respectively, and $0.1 million and $0.1 million for our Regulated and Unregulated Energy segments, respectively, for the three months ended March 31, 2019. The sources of other revenues include revenue from alternative revenue programs related to revenue normalization for the Maryland division and Sandpiper and late fees

Contract balances

The timing of revenue recognition, customer billings and cash collections results in trade receivables, unbilled receivables (contract assets), and customer advances (contract liabilities) in our condensed consolidated balance sheets. The balances of our trade receivables, contract assets, and contract liabilities as of March 31, 2020 and December 31, 2019 were as follows:

	Trade Receivables			Contract Assets (Current)		Contract Assets (Non-current)		Contract Liabilities (Current)
(in thousands)
Balance at 12/31/2019	$	47,430		$	18	$	3,465	$	589
Balance at 3/31/2020	43,614			18		4,098		428
Increase (decrease)	$	(3,816	)	$	—	$	633	$	(161	)

Our trade receivables are included in trade and other receivables in the condensed consolidated balance sheets. Our current contract assets are included in other current assets in the condensed consolidated balance sheets. Our non-current contract assets are included in receivables and other deferred charges in the condensed consolidated balance sheets and primarily relate to operations and maintenance costs incurred by Eight Flags that have not yet been recovered through rates for the sale of electricity to our electric distribution operation pursuant to a long-term service agreement.

At times, we receive advances or deposits from our customers before we satisfy our performance obligation, resulting in contract liabilities. Contract liabilities are included in other accrued liabilities in the condensed consolidated balance sheets and relate to non-refundable prepaid fixed fees for our Mid-Atlantic propane delivery operation's retail offerings. Our performance obligation is satisfied over the term of the respective retail offering plan on a ratable basis. For the three months ended March 31, 2020 and 2019, we recognized revenue of $0.4 million and $0.3 million, respectively.

Remaining performance obligations

Our businesses have long-term fixed fee contracts with customers in which revenues are recognized when performance obligations are satisfied over the contract term. Revenue for these businesses for the remaining performance obligations, at March 31, 2020, are expected to be recognized as follows:

(in thousands)	2020		2021		2022		2023		2024		2025		2026 and thereafter
Eastern Shore and Peninsula Pipeline	$	28,084	$	34,404	$	27,249	$	21,795	$	19,548	$	18,699	$	177,607
Natural gas distribution operations	2,992		4,124		5,167		4,936		4,699		4,166		32,996
FPU electric distribution	424		566		566		566		566		275		825
Total revenue contracts with remaining performance obligations	$	31,500	$	39,094	$	32,982	$	27,297	$	24,813	$	23,140	$	211,428