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Revenue
 3 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue
Note 3 – Revenue
The following information about the Company’s revenues is presented by segment. Southwest encompasses the natural gas distribution segment and Centuri encompasses the utility infrastructure services segment.
Natural Gas Distribution Segment:
Southwest’s operating revenues included on the Condensed Consolidated Statements of Income of both the Company and Southwest include revenue from contracts with customers, which is shown below, disaggregated by customer type, in addition to other categories of revenue:
 Three Months Ended
March 31,
(Thousands of dollars)20242023
Residential$784,237 $739,313 
Small commercial206,445 174,184 
Large commercial38,016 31,091 
Industrial/other20,823 21,114 
Transportation28,687 30,543 
Revenue from contracts with customers1,078,208 996,245 
Alternative revenue program revenues (deferrals)(29,433)(86,204)
Other revenues (1)4,158 4,838 
Total Regulated operations revenues$1,052,933 $914,879 
(1) Amounts include late fees and other miscellaneous revenues, and may also include the impact of certain regulatory mechanisms.
Utility Infrastructure Services Segment:
During the fourth quarter of 2023, Utility infrastructure services segment management, in connection with Centuri’s planned separation, changed its service type revenue classification to align with changes in its organizational structure, and as a result, prior year “other” revenue has been recast into gas infrastructure services or electric power infrastructure services to reflect these changes, with no impact to revenue overall. The following tables display Centuri’s revenue, reflected as Utility infrastructure services revenues on the Condensed Consolidated Statements of Income of the Company, representing revenue from contracts with customers disaggregated by service and contract types:
 Three Months Ended
March 31,
(Thousands of dollars)2024
2023*
Service Types:
Gas infrastructure services$261,226 $298,640 
Electric power infrastructure services260,466 342,275 
Other6,331 12,378 
Total Utility infrastructure services revenues$528,023 $653,293 
*The three months ended March 31, 2023 were previously presented as: Gas infrastructure services of $297,408, Electric power infrastructure services of $233,640, and Other of $122,245.
 Three Months Ended
March 31,
(Thousands of dollars)20242023
Contract Types:
Master services agreement$443,242 $547,606 
Bid contract84,781 105,687 
Total Utility infrastructure services revenues$528,023 $653,293 
Unit price contracts$307,849 $328,527 
Fixed price contracts110,282 166,915 
Time and materials contracts109,892 157,851 
Total Utility infrastructure services revenues$528,023 $653,293 
The following table provides information about contracts receivable and revenue earned on contracts in progress in excess of billings (contract assets), both of which are included within Accounts receivable, net of allowances, as well as amounts billed in excess of revenue earned on contracts (contract liabilities) at Centuri, which are included in Other current liabilities as of March 31, 2024 and December 31, 2023 on the Company’s Condensed Consolidated Balance Sheets:
(Thousands of dollars)March 31, 2024December 31, 2023
Contracts receivable, net$287,815 $347,454 
Revenue earned on contracts in progress in excess of billings257,830 269,808 
Amounts billed in excess of revenue earned on contracts13,648 43,694 
Revenue earned on contracts in progress in excess of billings (contract assets) that are not expected to be recognized within a year from the financial statement date are not included in the table above, and were $16.5 million as of March 31, 2024, and $0.2 million as of December 31, 2023. These non-current balances were included in Deferred charges and other assets on the Company’s Condensed Consolidated Balance Sheets.
These contract assets primarily relate to Centuri’s rights to consideration for work completed, but not billed and/or approved for billing at the reporting date, and are transferred to contracts receivable when the rights become unconditional. The amounts billed in excess of revenue earned primarily relate to the advance consideration received from customers for which work has not yet been completed. The decrease in the contract liability balance from December 31, 2023 to March 31, 2024 of $30 million was due to revenue recognized during the period, net of new payments received in advance of work performed.
For contracts that have an original duration of one year or less, Centuri uses the practical expedient applicable to such contracts and does not consider/compute an interest component based on the time value of money. Furthermore, because of the short duration of these contracts, Centuri has not disclosed the transaction price for the remaining performance obligations as of the end of each reporting period or when the Company expects to recognize the revenue.
As of March 31, 2024, Centuri had 53 fixed price contracts with an original duration of more than one year. The aggregate amount of the transaction price allocated to the unsatisfied performance obligations of these contracts as of March 31, 2024 was $277 million. Centuri expects to recognize the remaining performance obligations over approximately the next two years; however, the timing of that recognition is largely within the control of the customer, including when the necessary materials required to complete the work are provided by the customer.
Utility infrastructure services contracts receivable consists of the following:
(Thousands of dollars)March 31, 2024December 31, 2023
Billed on completed contracts and contracts in progress$285,896 $348,021 
Other receivables1,989 1,945 
Contracts receivable, gross287,885 349,966 
Allowance for doubtful accounts(70)(2,512)
Contracts receivable, net$287,815 $347,454