Revenue Recognition

6 Months Ended

Jun. 30, 2019

3. REVENUE RECOGNITION

DESC has disaggregated operating revenues by customer class as follows:

	Three Months Ended					Three Months Ended				Six Months Ended				Six Months Ended
	June 30, 2019					June 30, 2018				June 30, 2019				June 30, 2018
(millions)	Electric			Gas		Electric		Gas		Electric		Gas		Electric		Gas
Customer class:
Residential	$	281		$	31	$	243	$	34	$	10	$	109	$	495	$	120
Commercial		206			23		171		22		67		61		340		61
Industrial		100			19		106		21		18		45		191		45
Other		35			4		30		2		45		7		68		7
Revenues from contracts with customers		622			77		550		79		140		222		1,094		233
Other revenues		(1	)		—		3		—		1		—		6		1
Total Operating Revenues	$	621		$	77	$	553	$	79	$	141	$	222	$	1,100	$	234

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 $5 million and $4 million at June 30, 2019 and December 31, 2018, respectively. During the six months ended June 30, 2019, DESC recognized revenue of $3 million 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.