Revenue Recognition (Notes)

3 Months Ended

Mar. 31, 2022

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 our revenue by major source based on product and service type for the three months ended March 31, 2022 and 2021:

	Three months ended March 31, 2022								Three months ended March 31, 2021
(in thousands)	Regulated Energy		Unregulated Energy		Other and Eliminations		Total		Regulated Energy		Unregulated Energy		Other and Eliminations		Total
Energy distribution
Delaware natural gas division	$	34,481	$	—	$	—	$	34,481	$	33,272	$	—	$	—	$	33,272
Florida natural gas division	10,266		—		—		10,266		8,956		—		—		8,956
FPU electric distribution	19,089		—		—		19,089		18,551		—		—		18,551
FPU natural gas distribution	30,020		—		—		30,020		26,861		—		—		26,861
Maryland natural gas division	10,464		—		—		10,464		10,466		—		—		10,466
Sandpiper natural gas/propane operations	7,636		—		—		7,636		8,071		—		—		8,071
Elkton Gas	3,366		—		—		3,366		2,635		—		—		2,635
Total energy distribution	115,322		—		—		115,322		108,812		—		—		108,812
Energy transmission
Aspire Energy	—		18,036		—		18,036		—		12,905		—		12,905
Aspire Energy Express	263		—		—		263		47		—		—		47
Eastern Shore	20,321		—		—		20,321		19,972		—		—		19,972
Peninsula Pipeline	6,772		—		—		6,772		6,467		—		—		6,467
Total energy transmission	27,356		18,036		—		45,392		26,486		12,905		—		39,391
Energy generation
Eight Flags	—		5,539		—		5,539		—		4,329		—		4,329
Propane operations
Propane delivery operations	—		75,606		—		75,606		—		55,264		—		55,264
Compressed Natural Gas Services
Marlin Gas Services	—		2,209		—		2,209		—		2,352		—		2,352
Other and eliminations
Eliminations	(14,787)		(98)		(6,435)		(21,320)		(14,101)		(91)		(4,901)		(19,093)
Other	—		—		132		132		—		—		132		132
Total other and eliminations	(14,787)		(98)		(6,303)		(21,188)		(14,101)		(91)		(4,769)		(18,961)
Total operating revenues (1)	$	127,891	$	101,292	$	(6,303)	$	222,880	$	121,197	$	74,759	$	(4,769)	$	191,187

(1) Total operating revenues for the three months ended March 31, 2022, include other revenue (revenues from sources other than contracts with customers) of $0.1 million for both Regulated and Unregulated Energy segments, respectively, and $(0.3) million and $0.1 million for our Regulated and Unregulated Energy segments, respectively, for the three months ended March 31, 2021. The sources of other revenues include revenue from alternative revenue programs related to revenue normalization for the Maryland division and Sandpiper Energy 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, 2022 and December 31, 2021 were as follows:

	Trade Receivables		Contract Assets (Current)		Contract Assets (Non-current)		Contract Liabilities (Current)
(in thousands)
Balance at 12/31/2021	$	56,277	$	18	$	4,806	$	747
Balance at 3/31/2022	50,440		18		4,743		504
Increase (decrease)	$	(5,837)	$	—	$	(63)	$	(243)

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 customer retail program on a ratable basis. For the three months ended March 31, 2022 and 2021, 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, 2022, are expected to be recognized as follows:

(in thousands)	2022		2023		2024		2025		2026		2027		2028 and thereafter
Eastern Shore and Peninsula Pipeline	$	35,359	$	44,475	$	39,677	$	33,050	$	29,467	$	25,228	$	179,247
Natural gas distribution operations	5,010		5,681		5,458		4,928		4,745		4,406		27,089
FPU electric distribution	489		652		652		275		275		275		275
Total revenue contracts with remaining performance obligations	$	40,858	$	50,808	$	45,787	$	38,253	$	34,487	$	29,909	$	206,611