Note 4. Operating Revenue

The Companies’ operating revenue, subsequent to the adoption of revised guidance for revenue recognition from contracts with customers, consists of the following:

	Three Months Ended March 31,
	2018
(millions)
Dominion Energy
Regulated electric sales:
Residential	$	817
Commercial		524
Industrial		107
Government and other retail		213
Wholesale		42
Nonregulated electric sales		418
Regulated gas sales:
Residential		364
Commercial		103
Other		10
Nonregulated gas sales		88
Regulated gas transportation and storage:
FERC-regulated		262
State-regulated		190
Other regulated revenues		50
Other nonregulated revenues⁽¹⁾⁽²⁾		136
Total operating revenue from contracts with customers		3,324
Other revenues		142
Total operating revenue	$	3,466
Virginia Power
Regulated electric sales:
Residential	$	817
Commercial		524
Industrial		107
Government and other retail		213
Wholesale		42
Other regulated revenues		32
Other nonregulated revenues⁽¹⁾		13
Total operating revenue from contracts with customers	$	1,748
Dominion Energy Gas
Regulated gas sales:
Residential	$	29
Other		7
Nonregulated gas sales⁽¹⁾		2
Regulated gas transportation and storage:
FERC-regulated⁽¹⁾		199
State-regulated⁽¹⁾		180
NGL revenue⁽¹⁾⁽²⁾		54
Management service revenue⁽¹⁾		47
Other regulated revenues⁽¹⁾		8
Other nonregulated revenues⁽¹⁾		2
Total operating revenue from contracts with customers		528
Other revenues⁽¹⁾		(2	)
Total operating revenue	$	526

(1)

See Notes 10 and 18 for amounts attributable to related parties and affiliates.

(2)

Amounts above include $30 million and $26 million of NGL sales at Dominion Energy and Dominion Energy Gas, respectively, which are considered to be goods transferred at a point in time.

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 March 31, 2018	2018		2019		2020		2021		2022		Thereafter		Total
(millions)
Dominion Energy	$	1,251	$	1,709	$	1,593	$	1,474	$	1,327	$	14,686	$	22,040
Virginia Power		16		21		3		1		—		—		41
Dominion Energy Gas		479		632		562		473		379		2,084		4,609

Contract assets represent an entity’s right to consideration in exchange for goods and services that the entity has transferred to a customer. At March 31, 2018 and December 31, 2017, Dominion Energy’s contract asset balances were $48 million and $46 million, respectively. Dominion Energy Gas’ contract asset balances were $66 million at both March 31, 2018 and December 31, 2017. 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 March 31, 2018 and December 31, 2017, Dominion Energy’s contract liability balances were $92 million and $132 million, respectively. At March 31, 2018 and December 31, 2017, Virginia Power’s contract liability balances were $48 million and $50 million, respectively. At March 31, 2018 and December 31, 2017, Dominion Energy Gas’ contract liability balances were $14 million and $41 million, respectively. During the first quarter of 2018, Dominion Energy, Virginia Power and Dominion Energy Gas recognized revenue of $116 million, $50 million and $40 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.

The Companies’ operating revenue, prior to the adoption of revised guidance for revenue recognition from contracts with customers, consisted of the following:

	Three Months Ended March 31,
	2017
(millions)
Dominion Energy
Electric sales:
Regulated	$	1,766
Nonregulated		427
Gas sales:
Regulated		448
Nonregulated		144
Gas transportation and storage		492
Other		107
Total operating revenue	$	3,384
Virginia Power
Regulated electric sales	$	1,766
Other		65
Total operating revenue	$	1,831
Dominion Energy Gas
Gas sales:
Regulated	$	32
Nonregulated		2
Gas transportation and storage		396
Other		60
Total operating revenue	$	490