Revenue Recognition

6 Months Ended

Jun. 30, 2023

Revenue From Contract With Customer [Abstract]

Revenue Recognition

3. REVENUE RECOGNITION

DESC has disaggregated operating revenues by customer class as follows:

	Quarter-to-Date June 30, 2023				Quarter-to-Date June 30, 2022				Year-to-Date June 30, 2023				Year-to-Date June 30, 2022
(millions)	Electric		Gas		Electric		Gas		Electric		Gas		Electric		Gas
Customer class:
Residential	$	266	$	43	$	332	$	45	$	528	$	152	$	632	$	154
Commercial		208		25		245		35		395		67		446		83
Industrial		97		15		135		43		188		37		243		74
Other		34		6		62		6		73		10		100		12
Revenues from contracts with customers		605		89		774		129		1,184		266		1,421		323
Other revenues		9		1		6		—		12		1		14		—
Total Operating Revenues	$	614	$	90	$	780	$	129	$	1,196	$	267	$	1,435	$	323

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 June 30, 2023 and December 31,

2022, respectively. During the six months ended June 30, 2023 and 2022, DESC recognized revenue of $8 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)	June 30, 2023		December 31, 2022
Beginning balance	$	9	$	11
Amortization		—		(2	)
Ending balance	$	9	$	9