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 September 30,		Nine Months Ended September 30,
	2018		2018
(millions)
Dominion Energy
Regulated electric sales:
Residential	$	1,036	$	2,641
Commercial		737		1,897
Industrial		143		371
Government and other retail		224		647
Wholesale		30		95
Nonregulated electric sales		322		1,022
Regulated gas sales:
Residential		73		553
Commercial		15		152
Other		3		14
Nonregulated gas sales		42		139
Regulated gas transportation and storage:
FERC-regulated		266		800
State-regulated		138		472
Nonregulated gas transportation and storage		162		286
Other regulated revenues		38		132
Other nonregulated revenues⁽¹⁾⁽²⁾		133		410
Total operating revenue from contracts with customers		3,362		9,631
Other revenues⁽²⁾		89		374
Total operating revenue	$	3,451	$	10,005
Virginia Power
Regulated electric sales:
Residential	$	1,036	$	2,641
Commercial		737		1,897
Industrial		143		371
Government and other retail		224		647
Wholesale		30		95
Other regulated revenues		30		95
Other nonregulated revenues⁽¹⁾⁽²⁾		10		41
Total operating revenue from contracts with customers		2,210		5,787
Other revenues⁽¹⁾⁽²⁾		22		22
Total operating revenue	$	2,232	$	5,809
Dominion Energy Gas
Regulated gas sales:
Residential	$	12	$	54
Other		—		9
Nonregulated gas sales⁽¹⁾		2		5
Regulated gas transportation and storage:
FERC-regulated⁽¹⁾		179		561
State-regulated⁽¹⁾		131		450
NGL revenue⁽¹⁾⁽²⁾		42		146
Management service revenue⁽¹⁾		50		157
Other regulated revenues⁽¹⁾		4		16
Other nonregulated revenues⁽¹⁾		3		9
Total operating revenue from contracts with customers		423		1,407
Other revenues		—		1
Total operating revenue	$	423	$	1,408

(1)

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

(2)

Amounts above include $108 million and $91 million for the three months ended September 30, 2018, and $170 million and $138 million for the nine months ended September 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. In addition, the amounts include $10 million and $11 million of sales of renewable energy investment tax credits at both Dominion Energy and Virginia Power for the three and nine months ended September 30, 2018, 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 September 30, 2018	2018		2019		2020		2021		2022		Thereafter		Total
(millions)
Dominion Energy	$	430	$	1,672	$	1,568	$	1,454	$	1,324	$	13,799	$	20,247
Virginia Power		5		21		3		1		—		—		30
Dominion Energy Gas		170		633		574		489		397		2,171		4,434

Contract assets represent an entity’s right to consideration in exchange for goods and services that the entity has transferred to a customer. At September 30, 2018 and December 31, 2017, Dominion Energy’s contract asset balances were $44 million and $46 million, respectively. Dominion Energy Gas’ contract asset balances were $61 million and $66 million at September 30, 2018 and December 31, 2017, 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 September 30, 2018 and December 31, 2017, Dominion Energy’s contract liability balances were $102 million and $132 million, respectively. At September 30, 2018 and December 31, 2017, Virginia Power’s contract liability balances were $20 million and $50 million, respectively. At September 30, 2018 and December 31, 2017, Dominion Energy Gas’ contract liability balances were $38 million and $41 million, respectively. During the nine months ended September 30, 2018, Dominion Energy, Virginia Power and Dominion Energy Gas recognized revenue of $93 million, $25 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 September 30,		Nine Months Ended September 30,
	2017		2017
(millions)
Dominion Energy
Electric sales:
Regulated	$	2,108	$	5,590
Nonregulated		380		1,114
Gas sales:
Regulated		97		696
Nonregulated		69		323
Gas transportation and storage		406		1,328
Other		119		325
Total operating revenue	$	3,179	$	9,376
Virginia Power
Regulated electric sales	$	2,108	$	5,590
Other		46		142
Total operating revenue	$	2,154	$	5,732
Dominion Energy Gas
Gas sales:
Regulated	$	12	$	59
Nonregulated		2		12
Gas transportation and storage		324		1,062
Other		63		180
Total operating revenue	$	401	$	1,313