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Revenue Recognition
9 Months Ended
Sep. 30, 2021
Revenue Recognition [Abstract]  
Revenue Recognition Note 2 – Revenue Recognition The following table presents our revenues disaggregated by major source and customer class: Three Months Ended Three Months Ended September 30, 2021 September 30, 2020 Water Revenues Wastewater Revenues Natural Gas Revenues Other Revenues Water Revenues Wastewater Revenues Natural Gas Revenues Other RevenuesRevenues from contracts with customers: Residential $ 148,247  $ 25,147  $ 49,838  $ - $ 157,387  $ 24,175  $ 46,913  $ -Commercial 42,318  5,839  9,534  - 41,693  4,794  7,993  -Fire protection 8,866  - - - 8,535  - - -Industrial 8,217  401  415  - 9,022  388  1,407  -Gas transportation & storage - - 27,794  - - - 26,248  -Other water 14,539  - - - 9,524  - - -Other wastewater - 2,495  - - - 1,462  - -Customer rate credits - - - - (3,757) (323) - -Other utility - - 7,488  3,241  - - 5,763  6,548 Revenues from contracts with customers 222,187  33,882  95,069  3,241  222,404  30,496  88,324  6,548 Alternative revenue program 527  22  - - (341) (143) - -Other and eliminations - - - 6,932  - - 556  803 Consolidated$ 222,714  $ 33,904  $ 95,069  $ 10,173  $ 222,063  $ 30,353  $ 88,880  $ 7,351  Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 Water Revenues Wastewater Revenues Natural Gas RevenuesOther Revenues Water Revenues Wastewater Revenues Natural Gas Revenues Other RevenuesRevenues from contracts with customers: Residential $ 425,519  $ 73,820  $ 347,790  $ - $ 431,022  $ 70,421  $ 156,004  $ -Commercial 113,473  16,102  65,404  - 108,311  14,186  23,887  -Fire protection 26,830  - - - 26,437  - - -Industrial 22,954  1,256  1,894  - 22,597  1,230  3,721  -Gas transportation & storage - - 143,387  - - - 75,951  -Other water 37,696  - - - 23,378  - - -Other wastewater - 6,808  - - - 3,449  - -Customer rate credits - - - - (3,757) (323) - -Other utility - - 22,639  10,556  - - 12,672  16,088 Revenues from contracts with customers 626,472  97,986  581,114  10,556  607,988  88,963  272,235  16,088 Alternative revenue program 1,357  18  206  - (281) (248) 154  -Other and eliminations - - - 24,748  - - 1,409  2,392 Consolidated$ 627,829  $ 98,004  $ 581,320  $ 35,304  $ 607,707  $ 88,715  $ 273,798  $ 18,480  On March 16, 2020, the Company completed the Peoples Gas Acquisition, which expanded the Company’s regulated utility business, to include natural gas distribution. The natural gas revenues of Peoples are included for the period since the date of the acquisition.‎ Revenues from Contracts with Customers – These revenues are composed of four main categories: water, wastewater, natural gas, and other. Water revenues represent revenues earned for supplying customers with water service. Wastewater revenues represent revenues earned for treating wastewater and releasing it into the environment. Natural gas revenues represent revenues earned for the gas commodity and delivery of natural gas to customers. Other revenues are associated fees that relate to our utility businesses but are not water, wastewater, or natural gas revenues. Refer to the description below for a discussion of the performance obligation for each of these revenue streams. Tariff Revenues – These revenues are categorized by customer class: residential, commercial, fire protection, industrial, gas transportation, other water and other wastewater. The rates that generate these revenues are approved by the respective state utility commission, and revenues are billed cyclically and accrued for when unbilled. The regulated natural gas rates are set and adjusted for increases or decreases in our purchased gas costs through purchased gas adjustment mechanisms. Purchased gas adjustment mechanisms provide us with a means to recover purchased gas costs on an ongoing basis without filing a rate case. Other water and other wastewater revenues consist primarily of fines, penalties, surcharges, and availability lot fees. Our performance obligation for tariff revenues is to provide potable water, wastewater treatment service, or delivery and sale of natural gas to customers. This performance obligation is satisfied over time as the services are rendered. The amounts that the Company has a right to invoice for tariff revenues reflect the right to consideration from the customers in an amount that corresponds directly with the value transferred to the customer for the performance completed to date. Other Utility Revenues – Other utility revenues represent revenues earned primarily from: antenna revenues, which represent fees received from telecommunication operators that have put cellular antennas on our water towers; operation and maintenance and billing contracts, which represent fees earned from municipalities for our operation of their water or wastewater treatment services or performing billing services; fees earned from developers for accessing our water mains; miscellaneous service revenue from gas distribution operations; gas processing and handling revenue; sales of natural gas at market-based rates and contracted fixed prices; sales of gas purchased from third parties; and other gas marketing activities. The performance obligations vary for these revenues, but all are primarily recognized over time as the service is delivered. Alternative Revenue Program: Water / Wastewater Revenues: These revenues represent the difference between the actual billed utility volumetric water and wastewater revenues for Aqua Illinois and the revenues set in the last Aqua Illinois rate case. In accordance with the Illinois Commerce Commission, we recognize revenues based on the target amount established in the last rate case, and then record either a regulatory asset or liability based on the cumulative annual difference between the target and actual amounts billed, which results in either a payment from customers or a refund due to customers. The cumulative annual difference is either refunded to customers or collected from customers over a nine-month period. Natural Gas Revenues: These revenues represent the weather-normalization adjustment (“WNA”) mechanism in place for our natural gas customers served in Kentucky. The WNA serves to minimize the effects of weather on the Company’s results for its residential and small commercial natural gas customers. This regulatory mechanism adjusts revenues earned for the variance between actual and normal weather and can have either positive (warmer than normal) or negative (colder than normal) effects on revenues. Customer bills are adjusted in the December through April billing months, with rates adjusted for the difference between actual revenues and revenues calculated under this mechanism billed to the customers. These revenue programs represent a contract between the utility and its regulators, not customers, and therefore are not within the scope of the Financial Accounting Standards Board’s (“FASB”) accounting guidance for recognizing revenue from contracts with customers. Other and Eliminations – Other and eliminations consist of our market-based revenues, which comprises: our non-regulated natural gas operations, Aqua Infrastructure and Aqua Resources (described below) and intercompany eliminations for revenue billed between our subsidiaries. Our non-regulated natural gas operations consist of utility service line protection solutions and repair services to households and the operations of gas marketing and production entities. Revenue is recognized and the performance obligation is satisfied over time as the service is delivered. Aqua Infrastructure is the holding company for our former 49% investment in a joint venture that operated a private pipeline system to supply raw water to natural gas well drilling operations in the Marcellus Shale of north central Pennsylvania. Prior to our October 30, 2020 sale of our investment in the joint venture, the joint venture earned revenues through providing non-utility raw water supply services to natural gas drilling companies which enter into water supply contracts. The performance obligation was to deliver non-potable water to the joint venture’s customers. Aqua Infrastructure’s share of the revenues recognized by the joint venture was reflected, net, in equity earnings in joint venture on our consolidated statements of operations and comprehensive income. Aqua Resources earned revenues by providing non-regulated water and wastewater services through an operating and maintenance contract which concluded in 2020, and continues to earn revenue through third party water and sewer service line protection and repair services. For the contract operations and maintenance business, the performance obligations were performing agreed upon contract services to operate the water and wastewater system. For the line protection business, the performance obligations are allowing the use of our logo to a third-party water and sewer service line repair provider. Revenues are primarily recognized over time as service is delivered.‎