Revenue Recognition (Notes)

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Revenue Recognition

We recognize revenue when our performance obligations under contracts with customers have been satisfied, which generally occurs when our businesses have delivered or transported natural gas, electricity or propane to customers. We exclude sales taxes and other similar taxes from the transaction price. Typically, our customers pay for the goods and/or services we provide in the month following the satisfaction of our performance obligation. The following table displays our revenue from continuing operations by major source based on product and service type for the three months ended March 31, 2021 and 2020:

	Three months ended March 31, 2021								Three Months Ended March 31, 2020
(in thousands)	Regulated Energy		Unregulated Energy		Other and Eliminations		Total		Regulated Energy		Unregulated Energy		Other and Eliminations		Total
Energy distribution
Delaware natural gas division	$	33,272	$	—	$	—	$	33,272	$	26,567	$	—	$	—	$	26,567
Florida natural gas division	8,956		—		—		8,956		8,477		—		—		8,477
FPU electric distribution	18,551		—		—		18,551		14,219		—		—		14,219
FPU natural gas distribution	26,861		—		—		26,861		25,444		—		—		25,444
Maryland natural gas division	10,466		—		—		10,466		9,138		—		—		9,138
Sandpiper natural gas/propane operations	8,071		—		—		8,071		6,292		—		—		6,292
Elkton Gas	2,635		—		—		2,635		—		—		—		—
Total energy distribution	108,812		—		—		108,812		90,137		—		—		90,137
Energy transmission
Aspire Energy	—		12,905		—		12,905		—		9,781		—		9,781
Aspire Energy Express	47		—		—		47		—		—		—		—
Eastern Shore	19,972		—		—		19,972		19,279		—		—		19,279
Peninsula Pipeline	6,467		—		—		6,467		4,824		—		—		4,824
Total energy transmission	26,486		12,905		—		39,391		24,103		9,781		—		33,884
Energy generation
Eight Flags	—		4,329		—		4,329		—		4,323		—		4,323
Propane operations
Propane delivery operations	—		55,264		—		55,264		—		38,623		—		38,623
Energy delivery services
Marlin Gas Services	—		2,352		—		2,352		—		1,309		—		1,309
Other and eliminations
Eliminations	(14,101)		(91)		(4,901)		(19,093)		(11,285)		(24)		(4,409)		(15,718)
Other	—		—		132		132		—		—		132		132
Total other and eliminations	(14,101)		(91)		(4,769)		(18,961)		(11,285)		(24)		(4,277)		(15,586)
Total operating revenues (1)	$	121,197	$	74,759	$	(4,769)	$	191,187	$	102,955	$	54,012	$	(4,277)	$	152,690

(1) Total operating revenues for the three months ended March 31, 2021, include other revenue (revenues from sources other than contracts with customers) of $(0.3) million and $0.1 million for our Regulated and Unregulated Energy segments, respectively, and $0.7 million and $0.1 million for our Regulated and Unregulated Energy segments, respectively, for the three months ended March 31, 2020. The sources of other revenues include revenue from alternative revenue programs related to revenue normalization for the Maryland division and Sandpiper and late fees.

Contract balances

The timing of revenue recognition, customer billings and cash collections results in trade receivables, unbilled receivables (contract assets), and customer advances (contract liabilities) in our condensed consolidated balance sheets. The balances of our trade receivables, contract assets, and contract liabilities as of March 31, 2021 and December 31, 2020 were as follows:

	Trade Receivables		Contract Assets (Current)		Contract Assets (Non-current)		Contract Liabilities (Current)
(in thousands)
Balance at 12/31/2020	$	55,600	$	18	$	4,816	$	644
Balance at 3/31/2021	56,577		18		5,034		433
Increase (decrease)	$	977	$	—	$	218	$	(211)

Our trade receivables are included in trade and other receivables in the condensed consolidated balance sheets. Our current contract assets are included in other current assets in the condensed consolidated balance sheet. Our non-current contract assets are included in other assets in the condensed consolidated balance sheet and primarily relate to operations and maintenance costs incurred by Eight Flags that have not yet been recovered through rates for the sale of electricity to our electric distribution operation pursuant to a long-term service agreement.

At times, we receive advances or deposits from our customers before we satisfy our performance obligation, resulting in contract liabilities. Contract liabilities are included in other accrued liabilities in the condensed consolidated balance sheets and relate to non-refundable prepaid fixed fees for our Mid-Atlantic propane delivery operation's retail offerings. Our performance obligation is satisfied over the term of the respective retail offering plan on a ratable basis. For each of the three months ended March 31, 2021 and 2020, we recognized revenue of $0.4 million.

Remaining performance obligations

Our businesses have long-term fixed fee contracts with customers in which revenues are recognized when performance obligations are satisfied over the contract term. Revenue for these businesses for the remaining performance obligations, at March 31, 2021, are expected to be recognized as follows:

(in thousands)	2021		2022		2023		2024		2025		2026		2027 and thereafter
Eastern Shore and Peninsula Pipeline	$	26,814	$	30,415	$	23,129	$	20,970	$	20,117	$	19,387	$	156,500
Natural gas distribution operations	4,239		6,521		6,064		5,835		5,299		5,071		33,465
FPU electric distribution	489		652		652		652		275		275		550
Total revenue contracts with remaining performance obligations	$	31,542	$	37,588	$	29,845	$	27,457	$	25,691	$	24,733	$	190,515