Revenue Recognition

3 Months Ended

Mar. 31, 2023

Revenue From Contract With Customer [Abstract]

Revenue Recognition

3. REVENUE RECOGNITION

DESC has disaggregated operating revenues by customer class as follows:

Three Months Ended March 31,	2023				2022
(millions)	Electric		Gas		Electric		Gas
Customer class:
Residential	$	262	$	109	$	300	$	109
Commercial		187		42		201		48
Industrial		91		22		108		31
Other		36		4		38		6
Revenues from contracts with customers		576		177		647		194
Other revenues		6		—		8		—
Total Operating Revenues	$	582	$	177	$	655	$	194

Contract liabilities represent the obligation to transfer goods or services to a customer for which consideration has already been received from the customer. DESC had contract liability balances of $7 million and $12 million at March 31, 2023 and December 31, 2022, respectively. During the three months ended March 31, 2023 and 2022, DESC recognized revenue of $7 million and $4 million, respectively, from the beginning contract liability balances as DESC fulfilled its obligations to provide service to its customers. Contract liabilities are recorded in customer deposits and customer prepayments in the Consolidated Balance Sheets.

Balances and activity related to contract costs deferred as regulatory assets were as follows:

	Regulatory Assets
(millions)	March 31, 2023		December 31, 2022
Beginning balance	$	9	$	11
Amortization		—		(2	)
Ending balance	$	9	$	9