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Revenue from contracts with customers
 9 Months Ended
Sep. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue from contracts with customers Revenue from contracts with customers
Revenue is recognized when a performance obligation is satisfied by transferring control over a product or service to a customer. Revenue is measured based on consideration specified in a contract with a customer and excludes any sales incentives and amounts collected on behalf of third parties. The Company is considered an agent for certain taxes collected from customers. As such, the Company presents revenues net of these taxes at the time of sale to be remitted to governmental authorities, including sales and use taxes.
The Company recognizes revenue from the sale of emissions allowances allocated under the environmental programs in certain states. The Company has the right to payment when the allowances are sold at auction. Revenue is recognized on a point in time basis within the quarter that the auction is held. The revenues associated with the sale of these allowances are deferred as a component of the respective jurisdiction’s regulatory asset or liability for environmental compliance. For more information on the Company’s regulatory assets and liabilities, see Note 12.
Changes in cost estimates on certain contracts may result in the issuance of change orders, which can be approved or unapproved by the customer, or the assertion of contract claims. The Company recognizes amounts associated with change orders and claims as revenue if it is probable that the contract price will be adjusted and the amount of any such adjustment can be reasonably estimated. Change orders and claims are negotiated in the normal course of business and represent management’s estimates of additional contract revenues that have been earned and are probable of collection. The Company received notification from a customer on a large project with a contract that was billed on a time and materials basis with no stated maximum price, that it is withholding payment of approximately $30.0 million on remaining outstanding billings, including retention. The Company believes it has substantial defenses against these claims based upon the terms of the contract and the Company's belief that it has performed under the terms of the contract. The Company believes collection of the remaining outstanding billings, including retention is probable and, as a result, the Company has recognized the revenue from this project in its results. However, there is uncertainty surrounding this matter, including the potential long-term nature of dispute resolution, the Company filing a lien on the property and the broad range of possible consideration amounts as a result of negotiations and potential litigation to resolve the dispute.
Disaggregation
In the following tables, revenue is disaggregated by the type of customer or service provided. The Company believes this level of disaggregation best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The table also includes a reconciliation of the disaggregated revenue by reportable segments. For more information on the Company's business segments, see Note 18.
Three Months Ended September 30, 2023ElectricNatural gas
distribution		PipelineConstruction
services		OtherTotal
(In thousands)
Residential utility sales
$34,303 $68,733 $— $— $— $103,036 
Commercial utility sales
49,754 40,360 — — — 90,114 
Industrial utility sales
10,747 7,272 — — — 18,019 
Other utility sales
1,865 — — — — 1,865 
Natural gas transportation
— 13,050 35,338 — — 48,388 
Natural gas storage
— — 4,808 — — 4,808 
Electrical & mechanical specialty contracting— — — 514,378 — 514,378 
Transmission & distribution specialty contracting— — — 192,056 — 192,056 
Other
14,701 3,881 3,916 (89)1,689 24,098 
Intersegment eliminations
(27)(69)(3,701)— (1,689)(5,486)
Revenues from contracts with customers
111,343 133,227 40,361 706,345 — 991,276 
Revenues out of scope(3,254)1,669 43 11,061 — 9,519 
Total external operating revenues
$108,089 $134,896 $40,404 $717,406 $— $1,000,795 
Three Months Ended September 30, 2022ElectricNatural gas
distribution		PipelineConstruction
services		OtherTotal
(In thousands)
Residential utility sales
$36,981 $64,074 $— $— $— $101,055 
Commercial utility sales
38,785 43,734 — — — 82,519 
Industrial utility sales
10,838 7,209 — — — 18,047 
Other utility sales
2,002 — — — — 2,002 
Natural gas transportation
— 11,910 32,144 — — 44,054 
Natural gas storage
— — 3,595 — — 3,595 
Electrical & mechanical specialty contracting— — — 543,717 — 543,717 
Transmission & distribution specialty contracting— — — 181,550 — 181,550 
Other
10,758 3,495 3,814 200 1,472 19,739 
Intersegment eliminations
(34)(69)(3,581)(2,037)(1,472)(7,193)
Revenues from contracts with customers
99,330 130,353 35,972 723,430 — 989,085 
Revenues out of scope(47)1,792 86 11,571 — 13,402 
Total external operating revenues
$99,283 $132,145 $36,058 $735,001 $— $1,002,487 
Nine Months Ended September 30, 2023ElectricNatural gas
distribution		PipelineConstruction
services		OtherTotal
(In thousands)
Residential utility sales
$102,953 $517,351 $— $— $— $620,304 
Commercial utility sales
124,363 316,483 — — — 440,846 
Industrial utility sales
31,880 33,293 — — — 65,173 
Other utility sales
5,349 — — — — 5,349 
Natural gas transportation
— 38,225 104,716 — — 142,941 
Natural gas storage
— — 12,427 — — 12,427 
Electrical & mechanical specialty contracting— — — 1,672,948 — 1,672,948 
Transmission & distribution specialty contracting— — — 511,563 — 511,563 
Other
38,111 11,874 9,713 121 6,412 66,231 
Intersegment eliminations
(82)(208)(37,889)— (6,412)(44,591)
Revenues from contracts with customers
302,574 917,018 88,967 2,184,632 — 3,493,191 
Revenues out of scope(7,799)2,469 119 34,040 — 28,829 
Total external operating revenues
$294,775 $919,487 $89,086 $2,218,672 $— $3,522,020 
Nine Months Ended September 30, 2022ElectricNatural gas
distribution		PipelineConstruction
services		OtherTotal
(In thousands)
Residential utility sales
$103,648 $439,639 $— $— $— $543,287 
Commercial utility sales
108,400 279,697 — — — 388,097 
Industrial utility sales
32,067 29,242 — — — 61,309 
Other utility sales
5,632 — — — — 5,632 
Natural gas transportation
— 35,747 95,685 — — 131,432 
Natural gas storage
— — 10,210 — — 10,210 
Electrical & mechanical specialty contracting— — — 1,443,758 — 1,443,758 
Transmission & distribution specialty contracting— — — 496,190 — 496,190 
Other
33,727 9,854 8,201 357 4,368 56,507 
Intersegment eliminations
(102)(206)(37,309)(4,391)(4,368)(46,376)
Revenues from contracts with customers
283,372 793,973 76,787 1,935,914 — 3,090,046 
Revenues out of scope(4,854)(831)210 34,780 — 29,305 
Total external operating revenues
$278,518 $793,142 $76,997 $1,970,694 $— $3,119,351 
Contract balances
The timing of revenue recognition may differ from the timing of invoicing to customers. The timing of invoicing to customers does not necessarily correlate with the timing of revenues being recognized under the cost-to-cost method of accounting. Contracts from construction work are billed as work progresses in accordance with agreed upon contractual terms. Generally, billing to the customer occurs contemporaneous to revenue recognition. A variance in timing of the billings may result in a contract asset or a contract liability. A contract asset occurs when revenues are recognized under the cost-to-cost measure of progress, which exceeds amounts billed on uncompleted contracts. Such amounts will be billed as standard contract terms allow, usually based on various measures of performance or achievement. A contract liability occurs when there are billings in excess of revenues recognized under the cost-to-cost measure of progress on uncompleted contracts. Contract liabilities decrease as revenue is recognized from the satisfaction of the related performance obligation.
The changes in contract assets and liabilities were as follows:
September 30, 2023December 31, 2022ChangeLocation on Consolidated Balance Sheets
(In thousands)
Contract assets
$199,370 $154,144 $45,226 Receivables, net
Contract liabilities - current(183,705)(168,361)(15,344)Accounts payable
Contract liabilities - noncurrent(435)(6)(429)Noncurrent liabilities - other
Net contract assets (liabilities)$15,230 $(14,223)$29,453 
The Company recognized $6.3 million and $164.3 million in revenue for the three and nine months ended September 30, 2023, respectively, which was previously included in contract liabilities at December 31, 2022. The Company recognized $8.2 million and $118.7 million in revenue for the three and nine months ended September 30, 2022, respectively, which was previously included in contract liabilities at December 31, 2021.
The Company recognized a net increase in revenues of $20.2 million and $41.7 million for the three and nine months ended September 30, 2023, respectively, from performance obligations satisfied in prior periods. The Company recognized a net increase in revenues of $9.6 million and $43.7 million for the three and nine months ended September 30, 2022, respectively, from performance obligations satisfied in prior periods.
Remaining performance obligations
The remaining performance obligations, also referred to as backlog, at the construction services segment includes unrecognized revenues that the Company reasonably expects to be realized. These unrecognized revenues can include: projects that have a written award, a letter of intent, a notice to proceed, an agreed upon work order to perform work on mutually accepted terms and conditions and change orders or claims to the extent management believes additional contract revenues will be earned and are deemed probable of collection. Excluded from remaining performance obligations are potential orders under master service agreements. The majority of the Company's contracting services contracts have an original duration of less than two years.
The remaining performance obligations at the pipeline segment include firm transportation and storage contracts with fixed pricing and fixed volumes. The Company has applied the practical expedient, which does not require additional disclosures for contracts with an original duration of less than 12 months, to certain firm transportation and non-regulated contracts. The Company's firm transportation and firm storage contracts included in the remaining performance obligations have weighted average remaining durations of approximately less than five years and two years, respectively.
At September 30, 2023, the Company's remaining performance obligations were $2.5 billion. The Company expects to recognize the following revenue amounts in future periods related to these remaining performance obligations: $1.6 billion within the next 12 months or less; $371.0 million within the next 13 to 24 months; and $519.5 million in 25 months or more.