Operating Revenue

12 Months Ended

Dec. 31, 2023

Revenues [Abstract]

Operating Revenue

4. OPERATING REVENUE

DESC’s operating revenue consists of the following:

Year Ended December 31,	2023				2022				2021
(millions)	Electric		Gas		Electric		Gas		Electric		Gas
Customer class:
Residential	$	1,160	$	268	$	1,375	$	303	$	1,211	$	245
Commercial		820		129		968		184		834		133
Industrial		372		77		533		166		424		103
Other		150		24		203		23		157		25
Revenues from contracts with customers		2,502		498		3,079		676		2,626		506
Other revenues		27		1		27		1		13		1
Total Operating Revenues	$	2,529	$	499	$	3,106	$	677	$	2,639	$	507

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 December 31, 2023 and 2022, respectively. For the years ended December 31, 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.

Contract Costs

In limited instances, DESC provides economic development grants intended to support economic growth within DESC’s electric service territory and defers such grants as regulatory assets on the Consolidated Balance Sheets. Whenever these grants are contingent on a customer entering into a long-term electric supply contract with DESC such costs are deferred and amortized on a straight-line basis over the term of the related service contract, which generally ranges from ten to 15 years.

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

	Regulatory Assets
(millions)	2023			2022
Beginning balance	$	9		$	11
Additional costs		3			—
Amortization		(1	)		(2	)
Ending balance	$	11		$	9