Revenue Recognition Revenue Recognition (Notes)

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

REVENUE RECOGNITIONWe 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 revenue from continuing operations by major source based on product and service type for the years ended December 31, 2021, 2020 and 2019:

	For the year ended December 31, 2021
(in thousands)	Regulated Energy		Unregulated Energy		Other and Eliminations		Total
Energy distribution
Delaware natural gas division	$	71,195	$	—	$	—	$	71,195
Florida natural gas division	34,074		—		—		34,074
FPU electric distribution	78,300		—		—		78,300
FPU natural gas distribution	100,535		—		—		100,535
Maryland natural gas division	22,449		—		—		22,449
Sandpiper natural gas/propane operations	20,746		—		—		20,746
Elkton Gas	7,105		—		—		7,105
Total energy distribution	334,404		—		—		334,404
Energy transmission
Aspire Energy	—		38,163		—		38,163
Aspire Energy Express	187		—		—		187
Eastern Shore	76,911		—		—		76,911
Peninsula Pipeline	26,630		—		—		26,630
Total energy transmission	103,728		38,163		—		141,891
Energy generation
Eight Flags	—		18,652		—		18,652
Propane operations
Propane delivery operations	—		142,082		—		142,082
Energy delivery services
Marlin Gas Services	—		8,315		—		8,315
Other and eliminations
Eliminations	(54,212)		(343)		(21,348)		(75,903)
Other	—		—		527		527
Total other and eliminations	(54,212)		(343)		(20,821)		(75,376)
Total operating revenues (1)	$	383,920	$	206,869	$	(20,821)	$	569,968

    

(1) Total operating revenues for the year ended December 31, 2021, include other revenue (revenues from sources other than contracts with customers) of $0.2 million and $0.4 million for our Regulated and Unregulated Energy segments, respectively. The sources of other revenues include revenue from alternative revenue programs related to revenue normalization for Maryland division and Sandpiper and late fees.

	For the year ended December 31, 2020
(in thousands)	Regulated Energy		Unregulated Energy		Other and Eliminations		Total
Energy distribution
Delaware natural gas division	$	63,389	$	—	$	—	$	63,389
Florida natural gas division	30,850		—		—		30,850
FPU electric distribution	76,863		—		—		76,863
FPU natural gas distribution	90,150		—		—		90,150
Maryland natural gas division	21,853		—		—		21,853
Sandpiper natural gas/propane operations	17,214		—		—		17,214
Elkton Gas	2,399		—		—		2,399
Total energy distribution	302,718		—		—		302,718
Energy transmission
Aspire Energy	—		27,951		—		27,951
Aspire Energy Express	16		—		—		16
Eastern Shore	75,117		—		—		75,117
Peninsula Pipeline	23,080		—		—		23,080
Total energy transmission	98,213		27,951		—		126,164
Energy generation
Eight Flags	—		16,147		—		16,147
Propane operations
Propane delivery operations	—		100,744		—		100,744
Energy delivery services
Marlin Gas Services	—		7,818		—		7,818
Other and eliminations
Eliminations	(48,185)		(134)		(17,602)		(65,921)
Other	—		—		528		528
Total other and eliminations	(48,185)		(134)		(17,074)		(65,393)
Total operating revenues (1)	$	352,746	$	152,526	$	(17,074)	$	488,198

(1) Total operating revenues for the year ended December 31, 2020, include other revenue (revenues from sources other than contracts with customers of $1.4 million and $0.2 million for our Regulated and Unregulated Energy segments, respectively. The sources of other revenues include revenue from alternative revenue programs related to revenue normalization for Maryland division and Sandpiper and late fees.

	For the years ended December 31, 2019
(in thousands)	Regulated Energy		Unregulated Energy		Other and Eliminations		Total
Energy distribution
Delaware natural gas division	$	62,659	$	—	$	—	$	62,659
Florida natural gas division	28,485		—		—		28,485
FPU electric distribution	77,416		—		—		77,416
FPU natural gas distribution	82,418		—		—		82,418
Maryland natural gas division	22,517		—		—		22,517
Sandpiper natural gas/propane operations	19,068		—		—		19,068
Total energy distribution	292,563		—		—		292,563
Energy transmission
Aspire Energy	—		32,493		—		32,493
Aspire Energy Express	—		—		—		—
Eastern Shore	72,924		—		—		72,924
Peninsula Pipeline	16,453		—		—		16,453
Total energy transmission	89,377		32,493		—		121,870
Energy generation
Eight Flags	—		16,749		—		16,749
Propane operations
Propane delivery operations	—		109,614		—		109,614
Energy delivery services
Marlin Gas Services	—		5,702		—		5,702
Other and eliminations
Eliminations	(38,934)		(10,407)		(18,081)		(67,422)
Other	—		—		529		529
Total other and eliminations	(38,934)		(10,407)		(17,552)		(66,893)
Total operating revenues (1)	$	343,006	$	154,151	$	(17,552)	$	479,605

(1) Total operating revenues for the year ended December 31, 2019, include other revenue (revenues from sources other than contracts with customers) of $(0.1) million and $0.3 million for our Regulated and Unregulated Energy segments, respectively. The sources of other revenues include revenue from alternative revenue programs related to revenue normalization for Maryland division and Sandpiper and late fees.

Regulated Energy Segment

The businesses within our Regulated Energy segment are regulated utilities whose operations and customer contracts are subject to rates approved by the respective state PSC or the FERC.

Our energy distribution operations deliver natural gas or electricity to customers, and we bill the customers for both the delivery of natural gas or electricity and the related commodity, where applicable. In most jurisdictions, our customers are also required to purchase the commodity from us, although certain customers in some jurisdictions may purchase the commodity from a third-party retailer (in which case we provide delivery service only). We consider the delivery of natural gas or electricity and/or the related commodity sale as one performance obligation because the commodity and its delivery are highly interrelated with two-way dependency on one another. Our performance obligation is satisfied over time as natural gas or electricity is delivered and consumed by the customer. We recognize revenues based on monthly meter readings, which are based on the quantity of natural gas or electricity used and the approved rates. We accrue unbilled revenues for natural gas and electricity that have been delivered, but not yet billed, at the end of an accounting period, to the extent that billing and delivery do not coincide.

Revenues for Eastern Shore are based on rates approved by the FERC. The FERC has also authorized Eastern Shore to negotiate rates above or below the FERC-approved maximum rates, which customers can elect as an alternative to the FERC-approved maximum rates. Eastern Shore's services can be firm or interruptible. Firm services are offered on a guaranteed basis and are available at all times unless prevented by force majeure or other permitted curtailments. Interruptible customers receive service only when there is available capacity or supply. Our performance obligation is satisfied over time as we deliver natural gas to the customers' locations. We recognize revenues based on capacity used or reserved and the fixed monthly charge.

Peninsula Pipeline is engaged in natural gas intrastate transmission to third-party customers and certain affiliates in the State of Florida. Our performance obligation is satisfied over time as the natural gas is transported to customers. We recognize revenue based on rates approved by the Florida PSC and the capacity used or reserved. We accrue unbilled revenues for transportation services provided and not yet billed at the end of an accounting period.

Aspire Energy Express is engaged in natural gas intrastate transmission in the State of Ohio. We currently serve the Guernsey power plant and our performance obligation is satisfied over time as the natural gas is transported to the plant. We recognize revenue based on rates approved by the Ohio PSC and the capacity used or reserved. We accrue unbilled revenues for transportation services provided and not yet billed at the end of an accounting period.

Unregulated Energy Segment

Revenues generated from the Unregulated Energy segment are not subject to any federal, state, or local pricing regulations. Aspire Energy primarily sources gas from hundreds of conventional producers and performs gathering and processing functions to maintain the quality and reliability of its gas for its wholesale customers. Aspire Energy's performance obligation is satisfied over time as natural gas is delivered to its customers. Aspire Energy recognizes revenue based on the deliveries of natural gas at contractually agreed upon rates (which are based upon an established monthly index price and a monthly operating fee, as applicable). For natural gas customers, we accrue unbilled revenues for natural gas that has been delivered, but not yet billed, at the end of an accounting period, to the extent that billing and delivery do not coincide with the end of the accounting period.

Eight Flags' CHP plant, which is located on land leased from a customer, produces three sources of energy: electricity, steam and heated water. This customer purchases the steam (unfired and fired) and heated water, which are used in the customer’s production facility. Our electric distribution operation purchases the electricity generated by the CHP plant for distribution to its customers. Eight Flags' performance obligation is satisfied over time as deliveries of heated water, steam and electricity occur. Eight Flags recognizes revenues over time based on the amount of heated water, steam and electricity generated and delivered to its customers.

For our propane operations, we recognize revenue based upon customer type and service offered. Generally, for propane bulk delivery customers (customers without meters) and wholesale sales, our performance obligation is satisfied when we deliver propane to the customers' locations (point-in-time basis). We recognize revenue from these customers based on the number of gallons delivered and the price per gallon at the point-in-time of delivery. For our propane delivery customers with meters, we satisfy our performance obligation over time when we deliver propane to customers. We recognize revenue over time based on the amount of propane consumed and the applicable price per unit. For propane delivery metered customers, we accrue unbilled revenues for propane that has been delivered, but not yet billed, at the end of an accounting period, to the extent that billing and delivery do not coincide with the end of the accounting period.

Marlin Gas Services provides mobile CNG and pipeline solutions primarily to utilities and pipelines. Marlin Gas Services provides temporary hold services, pipeline integrity services, emergency services for damaged pipelines and specialized gas services for customers who have unique requirements. Marlin Gas Services' performance obligations are comprised of the compression of natural gas, mobilization of CNG equipment, utilization of equipment and on-site CNG support. Our performance obligations for the compression of natural gas, utilization of mobile CNG equipment and for the on-site CNG staff support are satisfied over time when the natural gas is compressed, equipment is utilized or as our staff provide support services to our customers. Our performance obligation for the mobilization of CNG equipment is satisfied at a point-in-time when the equipment is delivered to the customer project location. We recognize revenue for CNG services at the end of each calendar month for services provided during the month based on agreed upon rates for equipment utilized, costs incurred for natural gas compression, miles driven, mobilization and demobilization 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 consolidated balance sheets. The balances of our trade receivables, contract assets, and contract liabilities as of December 31, 2021 and 2020 were as follows:

	Trade Receivables		Contract Assets (Noncurrent)		Contract Liabilities (Current)
(in thousands)
Balance at 12/31/2020	$	55,600	$	4,816	$	644
Balance at 12/31/2021	56,277		4,806		747
Increase (decrease)	$	677	$	(10)	$	103

Our trade receivables are included in trade and other receivables in the consolidated balance sheets. Our non-current contract assets are included in receivables and other deferred charges in the consolidated balance sheet and 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 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 the years ended December 31, 2021 and 2020, we recognized revenue of $1.1 million and $1.3 million, respectively.

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 December 31, 2021 are expected to be recognized as follows:

(in thousands)	2022		2023		2024		2025		2026		2027 and thereafter
Eastern Shore and Peninsula Pipeline	$	33,925	$	26,334	$	24,103	$	23,231	$	21,964	$	179,866
Natural gas distribution operations	6,747		6,174		5,946		5,410		5,179		33,543
FPU electric distribution	652		652		652		275		275		550
Total revenue contracts with remaining performance obligations	$	41,324	$	33,160	$	30,701	$	28,916	$	27,418	$	213,959

Practical expedients

For our businesses with agreements that contain variable consideration, we use the invoice practical expedient method. We determined that the amounts invoiced to customers correspond directly with the value to our customers and our performance to date.