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Revenue Recognition
9 Months Ended
Sep. 30, 2019
Revenue Recognition [Abstract]  
Revenue Recognition Note 2 – Revenue Recognition

The following table presents our revenues disaggregated by major source and customer class:

Three Months Ended

Three Months Ended

September 30, 2019

September 30, 2018

Water Revenues

Wastewater Revenues

Other Revenues

Water Revenues

Wastewater Revenues

Other Revenues

Revenues from contracts with customers:

Residential

$

145,643 

$

21,437 

$

-

$

130,711 

$

18,799 

$

-

Commercial

42,883 

4,037 

-

37,608 

3,610 

-

Fire protection

8,565 

-

-

8,196 

-

-

Industrial

8,730 

390 

-

8,233 

451 

-

Other water

7,332 

-

-

14,579 

-

-

Other wastewater

-

758 

-

-

1,684 

-

Other utility

-

-

2,984 

-

-

2,310 

Revenues from contracts with customers

213,153 

26,622 

2,984 

199,327 

24,544 

2,310 

Alternative revenue program

(65)

162 

-

(695)

(125)

-

Other and eliminations

-

-

770 

-

-

776 

Consolidated

$

213,088 

$

26,784 

$

3,754 

$

198,632 

$

24,419 

$

3,086 

Nine Months Ended

Nine Months Ended

September 30, 2019

September 30, 2018

Water Revenues

Wastewater Revenues

Other Revenues

Water Revenues

Wastewater Revenues

Other Revenues

Revenues from contracts with customers:

Residential

$

386,240 

$

61,647 

$

-

$

367,078 

$

53,915 

$

-

Commercial

108,329 

11,400 

-

101,405 

9,473 

-

Fire protection

24,903 

-

-

24,103 

-

-

Industrial

23,052 

1,358 

-

21,902 

1,427 

-

Other water

31,177 

-

-

39,821 

-

-

Other wastewater

-

3,578 

-

-

4,381 

-

Other utility

-

-

9,234 

-

-

6,963 

Revenues from contracts with customers

573,701 

77,983 

9,234 

554,309 

69,196 

6,963 

Alternative revenue program

217 

(53)

-

(815)

39 

-

Other and eliminations

-

-

2,568 

-

-

2,652 

Consolidated

$

573,918 

$

77,930 

$

11,802 

$

553,494 

$

69,235 

$

9,615 

Revenues from Contracts with Customers – These revenues are composed of three main categories: water, wastewater, and other. Water revenues represent revenues earned for supplying customers with water service. Wastewater revenues represent revenues earned for treating wastewater and releasing it into the water supply. Other revenues are associated fees that relate to the regulated business but are not water and wastewater revenues. See description below for a discussion on the performance obligation for each of these revenue streams.

Tariff Revenues – These revenues are categorized by customer class: residential, commercial, fire protection, industrial, and other water and other wastewater. The rates that generate these revenues are approved by the respective state utility commission, and revenues are billed cyclically and accrued for when unbilled. Other water and other wastewater revenues consist primarily of fines, penalties, surcharges, and availability lot fees. Our performance obligation for tariff revenues is to provide potable water or wastewater treatment service to customers. This performance obligation is satisfied over time as the services are rendered. The amounts that the Company has a right to invoice for tariff revenues reflect the right to consideration from the customers in an amount that corresponds directly with the value transferred to the customer for the performance completed to date.

Other Utility Revenues – Other utility revenues represent revenues earned primarily from: antenna revenues, which represent fees received from telecommunication operators that have put cellular antennas on our water towers; operation and maintenance and billing contracts, which represent fees earned from municipalities for our operation of their water or wastewater treatment services or performing billing services; and fees earned from developers for accessing our water mains. The performance obligations vary for these revenues, but all are primarily recognized over time as the service is delivered.

Alternative Revenue Program – These revenues represent the difference between the actual billed utility water and wastewater revenues for Aqua Illinois and the revenues set in the last Aqua Illinois rate case. We recognize revenues based on the target amount established in the last rate case, and then record either a regulatory asset or liability based on the cumulative annual difference between the target and actual, which results in either a refund due to customers or a payment from customers. The cumulative annual difference is either refunded to customers or collected from customers over a nine-month period. This revenue program represents a contract between the utility and its regulators, not customers, and therefore is not within the scope of the Financial Accounting Standards Board’s (“FASB”) accounting guidance for recognizing revenue from contracts with customers.

Other and Eliminations – Other and eliminations consist of our market-based revenues, which comprises: Aqua Infrastructure and Aqua Resources (described below), and intercompany eliminations for revenue billed between our subsidiaries.

Aqua Infrastructure is the holding company for our 49% investment in a joint venture that operates a private pipeline system to supply raw water to natural gas well drilling operations in the Marcellus Shale of north central Pennsylvania. The joint venture earns revenues through providing non-utility raw water supply services to natural gas drilling companies which enter into water supply contracts. The performance obligation is to deliver non-potable water to the joint venture’s customers. Aqua Infrastructure’s share of the revenues recognized by the joint venture is reflected, net, in equity earnings in joint venture on our consolidated statements of operations.

Aqua Resources earns revenues by providing non-regulated water services through an operating and maintenance contract, and third-party water and sewer service line protection and repair services. The performance obligations are performing agreed upon contract services to operate the water system, or allowing the use of our logo to a third-party water and sewer service line repair. Revenues are primarily recognized over time as service is delivered.