Revenue Recognition

9 Months Ended

Sep. 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 September 30, 2023				Quarter-to-Date September 30, 2022				Year-to-Date September 30, 2023				Year-to-Date September 30, 2022
(millions)	Electric		Gas		Electric		Gas		Electric		Gas		Electric		Gas
Customer class:
Residential	$	382	$	34	$	433	$	39	$	910	$	186	$	1,065	$	193
Commercial		238		23		294		41		633		90		740		124
Industrial		94		19		153		54		282		56		396		128
Other		41		8		56		4		114		18		156		16
Revenues from contracts with customers		755		84		936		138		1,939		350		2,357		461
Other revenues		9		—		8		1		21		1		22		1
Total Operating Revenues	$	764	$	84	$	944	$	139	$	1,960	$	351	$	2,379	$	462

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 September 30, 2023 and

December 31, 2022, respectively. During the nine months ended September 30, 2023 and 2022, DESC recognized revenue of $9 million and $6 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)	September 30, 2023		December 31, 2022
Beginning balance	$	9	$	11
Amortization		—		(2	)
Ending balance	$	9	$	9