Operating Revenue

9 Months Ended

Sep. 30, 2019

Note 4. Operating Revenue

The Companies’ operating revenue consists of the following:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
(millions)
Dominion Energy
Regulated electric sales:
Residential	$	1,440	$	1,036	$	3,180	$	2,641
Commercial		962		737		2,347		1,897
Industrial		227		143		474		371
Government and other retail		244		224		658		647
Wholesale		45		30		134		95
Nonregulated electric sales		197		322		688		1,022
Regulated gas sales:
Residential		121		73		900		553
Commercial		52		15		316		152
Other		23		3		86		14
Nonregulated gas sales		51		42		369		139
Regulated gas transportation and storage:
FERC-regulated		248		266		772		800
State-regulated		168		138		547		472
Nonregulated gas transportation and storage		153		162		501		286
Other regulated revenues⁽¹⁾		54		38		180		132
Other nonregulated revenues⁽¹⁾⁽²⁾		96		133		305		410
Total operating revenue from contracts with customers		4,081		3,362		11,457		9,631
Other revenues⁽³⁾		188		89		640		374
Total operating revenue	$	4,269	$	3,451	$	12,097	$	10,005
Virginia Power
Regulated electric sales:
Residential	$	1,085	$	1,036	$	2,816	$	2,641
Commercial		732		737		2,049		1,897
Industrial		121		143		351		371
Government and other retail		224		224		625		647
Wholesale		31		30		97		95
Other regulated revenues⁽¹⁾		36		30		124		95
Other nonregulated revenues⁽²⁾		21		10		54		41
Total operating revenue from contracts with customers		2,250		2,210		6,116		5,787
Other revenues⁽²⁾⁽³⁾		14		22		51		22
Total operating revenue	$	2,264	$	2,232	$	6,167	$	5,809
Dominion Energy Gas
Regulated gas sales:
Residential	$	9	$	12	$	51	$	54
Other		1		—		3		9
Nonregulated gas sales⁽²⁾		2		2		5		5
Regulated gas transportation and storage:
FERC-regulated⁽²⁾		180		179		566		561
State-regulated⁽²⁾		139		131		460		450
NGL revenue⁽¹⁾⁽²⁾		31		42		112		146
Management service revenue⁽²⁾		23		50		81		157
Other regulated revenues⁽²⁾		4		4		17		16
Other nonregulated revenues⁽¹⁾⁽²⁾		3		3		7		9
Total operating revenue from contracts with customers		392		423		1,302		1,407
Other revenues		—		—		1		1
Total operating revenue	$	392	$	423	$	1,303	$	1,408

(1)

Amounts above include $36 million and $28 million for the three months ended September 30, 2019, $108 million and $91 million for the three months ended September 30, 2018, $129 million and $101 million for the nine months ended September 30, 2019 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 $12 million and $19 million of sales of renewable energy credits at Dominion Energy for the three and nine months ended September 30, 2019, respectively, $11 million and $14 million at Virginia Power for the three and nine months ended September 30, 2019, respectively, and $10 million and $11 million 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.

(2)	See Notes 10 and 20 for amounts attributable to related parties and affiliates.

(3)	Amounts above include alternative revenue of $9 million and $44 million at Dominion Energy and $9 million and $35 million at Virginia Power for the three and nine months ended September 30, 2019, respectively.

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, 2019	2019		2020		2021		2022		2023		Thereafter		Total
(millions)
Dominion Energy	$	431	$	1,545	$	1,446	$	1,344	$	1,199	$	13,502	$	19,467
Virginia Power		5		3		1		—		—		—		9
Dominion Energy Gas		168		617		541		443		325		1,902		3,996

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, 2019 and December 31, 2018, Dominion Energy’s contract asset balances were $34 million and $42 million, respectively. Dominion Energy Gas’ contract asset balances were $47 million and $58 million at September 30, 2019 and December 31, 2018, 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, 2019 and December 31, 2018, Dominion Energy’s contract liability balances were $127 million and $106 million, respectively. At September 30, 2019 and December 31, 2018, Virginia Power’s contract liability balances were $25 million and $22 million, respectively. At September 30, 2019 and December 31, 2018, Dominion Energy Gas’ contract liability balances were $38 million and $40 million, respectively. During the nine months ended September 30, 2019, Dominion Energy, Virginia Power and Dominion Energy Gas recognized revenue of $92 million, $22 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.