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Revenue
 3 Months Ended
Mar. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue
Note 3 – Revenue
The following information about the Company’s revenues is presented by segment. Southwest encompasses the natural gas distribution segment, Centuri encompasses the utility infrastructure services segment, and MountainWest encompasses the pipeline and storage segment. Certain disclosures, where materially consistent with those provided most recently in Southwest’s and the Company’s 2021 Annual Report on Form 10-K, are not repeated below.
Natural Gas Distribution Segment:
Southwest’s operating revenues included on the Condensed Consolidated Statements of Income of both the Company and Southwest include revenue from contracts with customers, which is shown below, disaggregated by customer type, in addition to other categories of revenue:
 Three Months Ended
March 31,		Twelve Months Ended March 31,
(Thousands of dollars)2022202120222021
Residential$514,586 $403,143 $1,147,055 $983,108 
Small commercial123,984 81,398 312,800 220,476 
Large commercial20,161 12,673 64,859 44,639 
Industrial/other9,972 13,770 38,515 33,310 
Transportation26,632 24,536 94,336 88,345 
Revenue from contracts with customers695,335 535,520 1,657,565 1,369,878 
Alternative revenue program revenues (deferrals)(23,499)(16,373)6,055 (468)
Other revenues (1)4,703 2,785 12,777 280 
Total Regulated operations revenues$676,539 $521,932 $1,676,397 $1,369,690 
(1) Amounts include late fees and other miscellaneous revenues, and may also include the impact of certain regulatory mechanisms, such as cost-of-service components in customer rates expected to be returned to customers in future periods. Also includes the impacts of a temporary moratorium on late fees and disconnection for nonpayment during the COVID-19 pandemic.
Utility Infrastructure Services Segment:
The following tables display Centuri’s revenue, reflected as Utility infrastructure services revenues on the Condensed Consolidated Statements of Income of the Company, representing revenue from contracts with customers disaggregated by service and contract types:
 Three Months Ended
March 31,		Twelve Months Ended March 31,
(Thousands of dollars)2022202120222021
Service Types:
Gas infrastructure services$260,682 $221,837 $1,341,185 $1,265,288 
Electric power infrastructure services181,968 93,961 613,209 433,467 
Other81,227 48,177 364,169 280,015 
Total Utility infrastructure services revenues
$523,877 $363,975 $2,318,563 $1,978,770 
 Three Months Ended
March 31,		Twelve Months Ended March 31,
(Thousands of dollars)2022202120222021
Contract Types:
Master services agreement$356,543 $293,680 $1,715,841 $1,520,144 
Bid contract167,334 70,295 602,722 458,626 
Total Utility infrastructure services revenues
$523,877 $363,975 $2,318,563 $1,978,770 
Unit price contracts$302,523 $234,449 $1,437,156 $1,347,953 
Fixed price contracts86,537 34,594 319,685 164,750 
Time and materials contracts134,817 94,932 561,722 466,067 
Total Utility infrastructure services revenues
$523,877 $363,975 $2,318,563 $1,978,770 
The following table provides information about contracts receivable and revenue earned on contracts in progress in excess of billings (contract assets), which are both included within Accounts receivable, net of allowances, as well as amounts billed in excess of revenue earned on contracts (contract liabilities), which are included in Other current liabilities as of March 31, 2022 and December 31, 2021 on the Company’s Condensed Consolidated Balance Sheets:
(Thousands of dollars)March 31, 2022December 31, 2021
Contracts receivable, net$309,876 $296,005 
Revenue earned on contracts in progress in excess of billings197,620 214,774 
Amounts billed in excess of revenue earned on contracts26,875 11,860 
The revenue earned on contracts in progress in excess of billings (contract asset) primarily relates to Centuri’s rights to consideration for work completed but not billed and/or approved for billing at the reporting date. These contract assets are transferred to contracts receivable when the rights become unconditional. The amounts billed in excess of revenue earned (contract liability) primarily relate to the advance consideration received from customers for which work has not yet been completed. The change in this contract liability balance from December 31, 2021 to March 31, 2022 is due to increases in cash received, net of revenue recognized, from contracts that commenced during the period, offset by revenue recognized of approximately $11.9 million that was included in this balance as of January 1, 2022, after which time it became earned and the balance was reduced.
For contracts that have an original duration of one year or less, Centuri uses the practical expedient applicable to such contracts and does not consider/compute an interest component based on the time value of money. Furthermore, because of the short duration of these contracts, Centuri has not disclosed the transaction price for the remaining performance obligations as of the end of each reporting period or when the Company expects to recognize the revenue.
As of March 31, 2022, Centuri had 29 contracts with an original duration of more than one year. The aggregate amount of the transaction price allocated to the unsatisfied performance obligations of these contracts as of March 31, 2022 was $205.6 million. Centuri expects to recognize the remaining performance obligations over approximately the next three years; however, the timing of that recognition is largely within the control of the customer, including when the necessary equipment and materials required to complete the work are provided by the customer.
Utility infrastructure services contracts receivable consists of the following:
(Thousands of dollars)March 31, 2022December 31, 2021
Billed on completed contracts and contracts in progress$308,798 $292,770 
Other receivables1,430 3,492 
Contracts receivable, gross310,228 296,262 
Allowance for doubtful accounts(352)(257)
Contracts receivable, net$309,876 $296,005 
Pipeline and Storage Segment:
MountainWest derives revenue on the basis of services rendered, commodities delivered, or contracts settled and includes amounts yet to be billed to customers. MountainWest generates revenue and earnings from annual reservation payments under firm peaking storage and firm transportation contracts. Straight-fixed-variable rate designs are used to allow for recovery of
substantially all fixed costs in demand or reservation charges, thereby reducing the earnings impact of volume changes on gas transportation and storage operations.
MountainWest receives upfront payment for certain storage services it provides to customers, which are considered to be contract liabilities. These payments are amortized to revenue over the term of the contract.
The primary types of sales and service activities reported as revenue from contracts with customers are FERC-regulated gas transportation and storage service, and to a lesser extent, natural gas liquid (“NGL”) revenues consisting primarily of NGL processing services, and other revenue (consisting of natural gas sales, as well as services related to gathering and processing activities and miscellaneous service revenue).
Transportation and storage contracts are primarily stand-ready service contracts that include fixed reservation and variable usage fees. Fixed fees are recognized ratably over the life of the contract as the stand-ready performance obligations are satisfied, while variable usage fees are recognized when MountainWest has a right to consideration from a customer in an amount that corresponds directly with the value to the customer of the performance obligation completed to date. Substantially all of MountainWest’s revenues are derived from performance obligations satisfied over time, rather than recognized at a single point in time. Payment for most sales and services varies by contract type, but is typically due within a month of billing.
MountainWest typically receives or retains NGLs and natural gas from customers when providing natural gas processing, transportation, or storage services. MountainWest records the fair value of NGLs received as service revenue recognized over time and recognizes revenue from the subsequent sale of the NGLs to customers upon delivery. MountainWest typically retains some natural gas under certain transportation service arrangements, intended to facilitate performance of the service and allow for natural losses that occur. As the intent of the retention amount is to enable fulfillment of the contract rather than to provide compensation for services, the fuel allowance is not included in revenue.
MountainWest Regulated operations revenues on the Condensed Consolidated Statements of Income of the Company include revenue from contracts with customers, which is shown below, disaggregated by categories of sales and service activities.
Three Months Ended
March 31,
(Thousands of dollars)2022
Regulated gas transportation and storage revenues$61,977 
NGL revenues1,493 
Other revenues3,479 
Revenue from contracts with customers66,949 
Other revenues44 
Total Regulated operations revenues$66,993 
MountainWest has certain multi-year contracts with fixed-price performance obligations that were unsatisfied (or partially unsatisfied) at the end of the reporting period, whereby revenue will be earned over time as MountainWest stands ready to provide service. These amounts are not material to the financial statements overall. MountainWest also has certain contract liabilities related to consideration received from customers with an obligation to transfer goods or services subsequent to the balance sheet date, amounts for which are generally consistent between December 31, 2021 and March 31, 2022 and are not material.