Revenue Recognition from Contracts with Customers

9 Months Ended

Sep. 30, 2023

Revenue Recognition from Contracts with Customers [Abstract]

Revenue Recognition from Contracts with Customers

Note 9 – Revenue Recognition from Contracts with Customers

The Company’s revenues are primarily generated from regulated tariff-based sales of water and wastewater services and non-regulated operation and maintenance contracts for services on water and wastewater systems owned by others. Revenue from contracts with customers is recognized when control of a promised good or service is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services.

The Company’s regulated revenue from contracts with customers results from tariff-based sales from the provision of water and wastewater services to residential, industrial, commercial, fire-protection and wholesale customers. Residential customers are billed quarterly while most industrial, commercial, fire-protection and wholesale customers are billed monthly. Payments by customers are due between 15 and 30 days after the invoice date. Revenue is recognized as the water and wastewater services are delivered to customers as well as from accrual of unbilled revenues estimated from the last meter reading date to the end of the accounting period utilizing factors such as historical customer data, regional weather indicators and general economic conditions in the relevant service territories. Unearned Revenues and Advance Service Fees include fixed service charge billings in advance to Tidewater customers recognized as service is provided to the customer.

Non-regulated service contract revenues consist of base service fees, as well as fees for additional billable services provided to customers. Fees are billed monthly and are due within 30 days after the invoice date. The Company considers the amounts billed to represent the value of these services provided to customers. These contracts expire at various times through June 2032 and contain remaining performance obligations for which the Company expects to recognize revenue in the future. These contracts also contain termination provisions.

Substantially all of the amounts included in operating revenues and accounts receivable are from contracts with customers. The Company records its allowance for doubtful accounts based on historical write-offs combined with an evaluation of current economic conditions within its service territories.

The Company’s contracts do not contain any significant financing components.

The Company’s operating revenues are comprised of the following:

	(In Thousands)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Regulated Tariff Sales
Residential	$	25,070		$	25,108		$	66,726		$	65,767
Commercial		6,926			7,167			18,553			16,796
Industrial		3,396			3,208			9,041			8,504
Fire Protection		3,203			3,248			9,453			9,541
Wholesale		4,958			5,644			14,479			13,905
Non-Regulated Contract Operations		3,137			3,321			9,309			8,986
Total Revenue from Contracts with Customers	$	46,690		$	47,696		$	127,561		$	123,499
Other Regulated Revenues		210			486			373			709
Other Non-Regulated Revenues		114			110			340			330
Inter-segment Elimination		(299	)		(560	)		(602	)		(927	)
Total Revenue	$	46,715		$	47,732		$	127,672		$	123,611