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Revenue Recognition | 12 Months Ended
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Dec. 31, 2021
Revenue from Contract with Customer [Abstract] |
Revenue from Contract with Customer | Revenue Recognition Customer Revenues. Substantially all of our revenues are tariff-based. Under ASC 606, the recipients of our utility service meet the definition of a customer, while the operating company tariffs represent an agreement that meets the definition of a contract, which creates enforceable rights and obligations. Customers in certain of our jurisdictions participate in programs that allow for a fixed payment each month regardless of usage. Payments received that exceed the value of gas or electricity actually delivered are recorded as a liability and presented in "Customer Deposits and Credits" on the Consolidated Balance Sheets. Amounts in this account are reduced and revenue is recorded when customer usage exceeds payments received. We have identified our performance obligations created under tariff-based sales as 1) the commodity (natural gas or electricity, which includes generation and capacity) and 2) delivery. These commodities are sold and / or delivered to and generally consumed by customers simultaneously, leading to satisfaction of our performance obligations over time as gas or electricity is delivered to customers. Due to the at-will nature of utility customers, performance obligations are limited to the services requested and received to date. Once complete, we generally maintain no additional performance obligations. Transaction prices for each performance obligation are generally prescribed by each operating company’s respective tariff. Rates include provisions to adjust billings for fluctuations in fuel and purchased power costs and cost of natural gas. Revenues are adjusted for differences between actual costs, subject to reconciliation, and the amounts billed in current rates. Under or over recovered revenues related to these cost recovery mechanisms are included in "Regulatory Assets" or "Regulatory Liabilities" on the Consolidated Balance Sheets and are recovered from or returned to customers through adjustments to tariff rates. As we provide and deliver service to customers, revenue is recognized based on the transaction price allocated to each performance obligation. Distribution revenues are generally considered daily or "at-will" contracts as customers may cancel their service at any time (subject to notification requirements), and revenue generally represents the amount we are entitled to bill customers. In addition to tariff-based sales, our Gas Distribution Operations segment enters into balancing and exchange arrangements of natural gas as part of our operations and off-system sales programs. Performance obligations for these types of sales include transportation and storage of natural gas and can be satisfied at a point in time or over a period of time, depending on the specific transaction. For those transactions that span a period of time, we record a receivable or payable for any cumulative gas imbalances, as well as for any gas inventory borrowed or lent under a Gas Distributions Operations exchange agreement. Revenue Disaggregation and Reconciliation. We disaggregate revenue from contracts with customers based upon reportable segment as well as by customer class. The Gas Distribution Operations segment provides natural gas service and transportation for residential, commercial and industrial customers in Ohio, Pennsylvania, Virginia, Kentucky, Maryland and Indiana. The Electric Operations segment provides electric service in 20 counties in the northern part of Indiana. The tables below reconcile revenue disaggregation by customer class to segment revenue as well as to revenues reflected on the Statements of Consolidated Income (Loss):
Year Ended December 31, 2021 (in millions) | Gas Distribution Operations |  | Electric Operations |  | Corporate and Other(2) |  | Total
Customer Revenues(1) |  |  |  |  |  |  |
Residential | $ | 2,109.4 |  |  | $ | 567.9 |  |  | $ | — |  |  | $ | 2,677.3 |
Commercial | 722.4 |  |  | 534.9 |  |  | — |  |  | 1,257.3 |
Industrial | 195.7 |  |  | 493.4 |  |  | — |  |  | 689.1 |
Off-system | 71.3 |  |  | — |  |  | — |  |  | 71.3 |
Miscellaneous | 27.3 |  |  | 8.2 |  |  | 0.8 |  |  | 36.3 |
Total Customer Revenues | $ | 3,126.1 |  |  | $ | 1,604.4 |  |  | $ | 0.8 |  |  | $ | 4,731.3 |
Other Revenues | 45.1 |  |  | 91.9 |  |  | 31.3 |  |  | 168.3 |
Total Operating Revenues | $ | 3,171.2 |  |  | $ | 1,696.3 |  |  | $ | 32.1 |  |  | $ | 4,899.6 |
(1)Customer revenue amounts exclude intersegment revenues. See Note 23, "Segments of Business," for discussion of intersegment revenues. (2)Other revenues related to the Transition Services Agreement entered into in connection with the sale of the Massachusetts Business.
Year Ended December 31, 2020 (in millions) | Gas Distribution Operations |  | Electric Operations |  | Corporate and Other(2) |  | Total
Customer Revenues(1) |  |  |  |  |  |  |
Residential | $ | 2,075.0 |  |  | $ | 527.8 |  |  | $ | — |  |  | $ | 2,602.8 |
Commercial | 670.5 |  |  | 480.3 |  |  | — |  |  | 1,150.8 |
Industrial | 212.8 |  |  | 412.1 |  |  | — |  |  | 624.9 |
Off-system | 41.0 |  |  | — |  |  | — |  |  | 41.0 |
Miscellaneous | 32.7 |  |  | 20.2 |  |  | 0.8 |  |  | 53.7 |
Total Customer Revenues | $ | 3,032.0 |  |  | $ | 1,440.4 |  |  | $ | 0.8 |  |  | $ | 4,473.2 |
Other Revenues | 96.1 |  |  | 95.5 |  |  | 16.9 |  |  | 208.5 |
Total Operating Revenues | $ | 3,128.1 |  |  | $ | 1,535.9 |  |  | $ | 17.7 |  |  | $ | 4,681.7 |
(1)Customer revenue amounts exclude intersegment revenues. See Note 23, "Segments of Business," for discussion of intersegment revenues. (2)Other revenues related to the Transition Services Agreement entered into in connection with the sale of the Massachusetts Business.
Year Ended December 31, 2019 (in millions) | Gas Distribution Operations |  | Electric Operations |  | Corporate and Other |  | Total
Customer Revenues(1) |  |  |  |  |  |  |
Residential | $ | 2,309.0 |  |  | $ | 481.6 |  |  | $ | — |  |  | $ | 2,790.6 |
Commercial | 771.3 |  |  | 486.6 |  |  | — |  |  | 1,257.9 |
Industrial | 245.2 |  |  | 607.7 |  |  | — |  |  | 852.9 |
Off-system | 77.7 |  |  | — |  |  | — |  |  | 77.7 |
Miscellaneous | 52.0 |  |  | 21.5 |  |  | 0.8 |  |  | 74.3 |
Total Customer Revenues | $ | 3,455.2 |  |  | $ | 1,597.4 |  |  | $ | 0.8 |  |  | $ | 5,053.4 |
Other Revenues | 54.5 |  |  | 101.0 |  |  | — |  |  | 155.5 |
Total Operating Revenues | $ | 3,509.7 |  |  | $ | 1,698.4 |  |  | $ | 0.8 |  |  | $ | 5,208.9 |
(1)Customer revenue amounts exclude intersegment revenues. See Note 23, "Segments of Business," for discussion of intersegment revenues. Other Revenues. As permitted by accounting principles generally accepted in the United States, regulated utilities have the ability to earn certain types of revenue that are outside the scope of ASC 606. These revenues primarily represent revenue earned under alternative revenue programs. Alternative revenue programs represent regulator-approved mechanisms that allow for the adjustment of billings and revenue for certain approved programs. We maintain a variety of these programs, including demand side management initiatives that recover costs associated with the implementation of energy efficiency programs, as well as normalization programs that adjust revenues for the effects of weather or other external factors. Additionally, we maintain certain programs with future test periods that operate similarly to FERC formula rate programs and allow for recovery of costs incurred to replace aging infrastructure. When the criteria to recognize alternative revenue have been met, we establish a regulatory asset and present revenue from alternative revenue programs on the Statements of Consolidated Income (Loss) as “Other revenues.” When amounts previously recognized under alternative revenue accounting guidance are billed, we reduce the regulatory asset and record a customer account receivable. Customer Accounts Receivable. Accounts receivable on our Consolidated Balance Sheets includes both billed and unbilled amounts, as well as certain amounts that are not related to customer revenues. Unbilled amounts of accounts receivable relate to a portion of a customer’s consumption of gas or electricity from the date of the last cycle billing through the last day of the month (balance sheet date). Factors taken into consideration when estimating unbilled revenue include historical usage, customer rates and weather. A significant portion of our operations are subject to seasonal fluctuations in sales. During the heating season, primarily from November through March, revenues and receivables from gas sales are more significant than in other months. The opening and closing balances of customer receivables for the year ended December 31, 2021, are presented in the table below. We had no significant contract assets or liabilities during the period. Additionally, we have not incurred any significant costs to obtain or fulfill contracts.
(in millions) | Customer Accounts Receivable, Billed (less reserve) |  | Customer Accounts Receivable, Unbilled (less reserve) |
Balance as of December 31, 2020 | $ | 400.0 |  |  | $ | 327.2 |  |
Balance as of December 31, 2021 | 459.6 |  |  | 337.0 |  |
Utility revenues are billed to customers monthly on a cycle basis. We expect that substantially all customer accounts receivable will be collected following customer billing, as this revenue consists primarily of periodic, tariff-based billings for service and usage. We maintain common utility credit risk mitigation practices, including requiring deposits and actively pursuing collection of past due amounts. Our regulated operations also utilize certain regulatory mechanisms that facilitate recovery of bad debt costs within tariff-based rates, which provides further evidence of collectibility. It is probable that substantially all of the consideration to which we are entitled from customers will be collected upon satisfaction of performance obligations. Allowance for Credit Losses. To evaluate for expected credit losses, customer account receivables are pooled based on similar risk characteristics, such as customer type, geography, payment terms, and related macro-economic risks. Expected credit losses are established using a model that considers historical collections experience, current information, and reasonable and supportable forecasts. Internal and external inputs are used in our credit model including, but not limited to, energy consumption trends, revenue projections, actual charge-offs data, recoveries data, shut-offs, customer delinquencies, and final bill data. We continuously evaluate available information relevant to assessing collectability of current and future receivables. We evaluate creditworthiness of specific customers periodically or following changes in facts and circumstances. When we become aware of a specific commercial or industrial customer's inability to pay, an allowance for expected credit losses is recorded for the relevant amount. We also monitor other circumstances that could affect our overall expected credit losses; including, but not limited to, creditworthiness of overall population in service territories, adverse conditions impacting an industry sector, and current economic conditions. At each reporting period, we record expected credit losses to an allowance for credit losses account. When deemed to be uncollectible, customer accounts are written-off. A rollforward of our allowance for credit losses as of December 31, 2021 and December 31, 2020, are presented in the tables below:
(in millions) | Gas Distribution Operations |  | Electric Operations |  | Corporate and Other |  | Total
Balance as of January 1, 2021 | $ | 41.8 |  |  | $ | 9.7 |  |  | $ | 0.8 |  |  | $ | 52.3 |
Current period provisions | 5.8 |  |  | 1.4 |  |  | — |  |  | 7.2 |
Write-offs charged against allowance | (46.7) |  |  | (7.7) |  |  | — |  |  | (54.4) |
Recoveries of amounts previously written off | 18.0 |  |  | 0.4 |  |  | — |  |  | 18.4 |
Balance as of December 31, 2021 | $ | 18.9 |  |  | $ | 3.8 |  |  | $ | 0.8 |  |  | $ | 23.5 |
(in millions) | Gas Distribution Operations |  | Electric Operations |  | Corporate and Other |  | Total
Balance as of January 1, 2020 | $ | 9.1 |  |  | $ | 3.1 |  |  | $ | 0.8 |  |  | $ | 13.0 |
Current period provisions | 45.3 |  |  | 9.3 |  |  | — |  |  | 54.6 |
Write-offs charged against allowance | (26.7) |  |  | (3.0) |  |  | — |  |  | (29.7) |
Recoveries of amounts previously written off | 14.1 |  |  | 0.3 |  |  | — |  |  | 14.4 |
Balance as of December 31, 2020 | $ | 41.8 |  |  | $ | 9.7 |  |  | $ | 0.8 |  |  | $ | 52.3 |
In connection with the COVID-19 pandemic, certain state regulatory commissions instituted regulatory moratoriums that impacted our ability to pursue our standard credit risk mitigation practices. Following the issuance of these moratoriums, certain of our regulated operations have been authorized to recognize a regulatory asset for bad debt costs above levels currently recovered in rates. At the balance sheet date, in addition to our evaluation of the allowance for credit losses discussed above, we considered benefits available under governmental COVID-19 relief programs, the impact of unemployment benefits initiatives, and flexible payment plans being offered to customers affected by or experiencing hardship as a result of the pandemic, which could help to mitigate the potential for increasing customer account delinquencies. We also considered the on-time bill payment promotion and robust customer marketing strategy for energy assistance programs that we have implemented. Based upon this evaluation, we have concluded that the allowance for credit losses as of December 31, 2021 adequately reflected the collection risk and net realizable value of our receivables. We have now resumed our common credit mitigation practices in all jurisdictions as these moratoriums have expired (see Note 9, "Regulatory Matters," for additional information on regulatory moratoriums and regulatory assets).

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045 + Details
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