Revenue Recognition

9 Months Ended

Sep. 30, 2019

3. REVENUE RECOGNITION

DESC has disaggregated operating revenues by customer class as follows:

	Three Months Ended				Three Months Ended				Nine Months Ended				Nine Months Ended
	September 30, 2019				September 30, 2018				September 30, 2019				September 30, 2018
(millions)	Electric		Gas		Electric		Gas		Electric		Gas		Electric		Gas
Customer class:
Residential	$	354	$	24	$	310	$	25	$	364	$	133	$	805	$	145
Commercial		229		19		231		19		296		80		571		80
Industrial		101		18		95		19		119		63		286		64
Other		37		6		31		6		82		13		99		13
Revenues from contracts with customers		721		67		667		69		861		289		1,761		302
Other revenues		7		—		3		—		8		—		9		1
Total Operating Revenues	$	728	$	67	$	670	$	69	$	869	$	289	$	1,770	$	303

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 September 30, 2019 and December 31, 2018, respectively. During the nine months ended September 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.