XML 26 R15.htm IDEA: XBRL DOCUMENT
v3.23.2

Revenue Recognition | 6 Months Ended
--- | ---
Jun. 30, 2023
Revenue from Contract with Customer [Abstract] |
Revenue from Contract with Customer | 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 Condensed Statements of Consolidated Income (unaudited):
Three Months Ended June 30, 2023 (in millions) | Gas Distribution Operations(2) |  | Electric Operations(3) |  | Corporate and Other |  | Total
Customer Revenues(1) |  |  |  |  |  |  |
Residential | $ | 450.6 |  |  | $ | 122.8 |  |  | $ | — |  |  | $ | 573.4 |
Commercial | 152.1 |  |  | 130.1 |  |  | — |  |  | 282.2 |
Industrial | 51.1 |  |  | 112.6 |  |  | — |  |  | 163.7 |
Off-system | 22.9 |  |  | — |  |  | — |  |  | 22.9 |
Miscellaneous | 11.7 |  |  | 13.3 |  |  | — |  |  | 25.0 |
Total Customer Revenues | $ | 688.4 |  |  | $ | 378.8 |  |  | $ | — |  |  | $ | 1,067.2 |
Other Revenues | 4.4 |  |  | 18.2 |  |  | 0.2 |  |  | 22.8 |
Total Operating Revenues | $ | 692.8 |  |  | $ | 397.0 |  |  | $ | 0.2 |  |  | $ | 1,090.0 |
(1)Customer revenue amounts exclude intersegment revenues. See Note 19, "Business Segment Information," for discussion of intersegment revenues. (2)Amounts included in Gas Distributions Operations Other revenues primarily relate to weather normalization adjustment mechanisms. (3)Amounts included in Electric Operations Other revenues primarily relate to MISO multi-value projects and revenue from non-jurisdictional transmission assets.
Three Months Ended June 30, 2022 (in millions) | Gas Distribution Operations(2) |  | Electric Operations(3) |  | Corporate and Other(4) |  | Total
Customer Revenues(1) |  |  |  |  |  |  |
Residential | $ | 465.0 |  |  | $ | 137.0 |  |  | $ | — |  |  | $ | 602.0 |
Commercial | 160.6 |  |  | 134.7 |  |  | — |  |  | 295.3 |
Industrial | 48.1 |  |  | 138.7 |  |  | — |  |  | 186.8 |
Off-system | 59.1 |  |  | — |  |  | — |  |  | 59.1 |
Miscellaneous | 8.6 |  |  | 4.7 |  |  | — |  |  | 13.3 |
Total Customer Revenues | $ | 741.4 |  |  | $ | 415.1 |  |  | $ | — |  |  | $ | 1,156.5 |
Other Revenues | (0.3) |  |  | 22.0 |  |  | 5.0 |  |  | 26.7 |
Total Operating Revenues | $ | 741.1 |  |  | $ | 437.1 |  |  | $ | 5.0 |  |  | $ | 1,183.2 |
(1)Customer revenue amounts exclude intersegment revenues. See Note 19, "Business Segment Information," for discussion of intersegment revenues. (2)Amounts included in Gas Distributions Operations Other revenues primarily relate to weather normalization adjustment mechanisms. (3)Amounts included in Electric Operations Other revenues primarily relate to MISO multi-value projects and revenue from non-jurisdictional transmission assets. (4)Amounts associated with Corporate and Other revenues primarily relate to the Transition Services Agreement entered into in connection with the sale of the Massachusetts Business.
Six months ended June 30, 2023 (in millions) | Gas Distribution Operations(2) |  | Electric Operations(3) |  | Corporate and Other |  | Total
Customer Revenues(1) |  |  |  |  |  |  |
Residential | $ | 1,437.6 |  |  | $ | 273.2 |  |  | $ | — |  |  | $ | 1,710.8 |
Commercial | 512.7 |  |  | 281.0 |  |  | — |  |  | 793.7 |
Industrial | 123.0 |  |  | 246.8 |  |  | — |  |  | 369.8 |
Off-system | 40.1 |  |  | — |  |  | — |  |  | 40.1 |
Miscellaneous | 30.1 |  |  | 18.8 |  |  | — |  |  | 48.9 |
Total Customer Revenues | $ | 2,143.5 |  |  | $ | 819.8 |  |  | $ | — |  |  | $ | 2,963.3 |
Other Revenues | 50.6 |  |  | 41.7 |  |  | 0.4 |  |  | 92.7 |
Total Operating Revenues | $ | 2,194.1 |  |  | $ | 861.5 |  |  | $ | 0.4 |  |  | $ | 3,056.0 |
(1)Customer revenue amounts exclude intersegment revenues. See Note 19, "Business Segment Information," for discussion of intersegment revenues. (2)Amounts included in Gas Distributions Operations Other revenues primarily relate to weather normalization adjustment mechanisms. (3)Amounts included in Electric Operations Other revenues primarily relate to MISO multi-value projects and revenue from non-jurisdictional transmission assets.
Six months ended June 30, 2022 (in millions) | Gas Distribution Operations(2) |  | Electric Operations(3) |  | Corporate and Other(4) |  | Total
Customer Revenues(1) |  |  |  |  |  |  |
Residential | $ | 1,441.9 |  |  | $ | 275.5 |  |  | $ | — |  |  | $ | 1,717.4 |
Commercial | 517.1 |  |  | 269.2 |  |  | — |  |  | 786.3 |
Industrial | 115.9 |  |  | 268.5 |  |  | — |  |  | 384.4 |
Off-system | 77.8 |  |  | — |  |  | — |  |  | 77.8 |
Miscellaneous | 22.6 |  |  | 8.3 |  |  | — |  |  | 30.9 |
Total Customer Revenues | $ | 2,175.3 |  |  | $ | 821.5 |  |  | $ | — |  |  | $ | 2,996.8 |
Other Revenues | 2.5 |  |  | 45.7 |  |  | 11.5 |  |  | 59.7 |
Total Operating Revenues | $ | 2,177.8 |  |  | $ | 867.2 |  |  | $ | 11.5 |  |  | $ | 3,056.5 |
(1)Customer revenue amounts exclude intersegment revenues. See Note 19, "Business Segment Information," for discussion of intersegment revenues. (2)Amounts included in Gas Distributions Operations Other revenues primarily relate to weather normalization adjustment mechanisms. (3)Amounts included in Electric Operations Other revenues primarily relate to MISO multi-value projects and revenue from non-jurisdictional transmission assets. (4)Amounts associated with Corporate and Other revenues primarily relate to the Transition Services Agreement entered into in connection with the sale of the Massachusetts Business.
Customer Accounts Receivable. Accounts receivable on our Condensed Consolidated Balance Sheets (unaudited) 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 six months ended June 30, 2023 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, 2022 | $ | 560.5 |  |  | $ | 453.0 |  |  |
Balance as of June 30, 2023 | 372.9 |  |  | 191.5 |  |  |
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, final bill data, and inflation. 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 June 30, 2023 and December 31, 2022 are presented in the table below:
(in millions) | Gas Distribution Operations |  | Electric Operations |  | Corporate and Other |  | Total
Balance as of January 1, 2023 | $ | 17.2 |  |  | $ | 5.9 |  |  | $ | 0.8 |  |  | $ | 23.9 |
Current period provisions | 16.8 |  |  | 3.2 |  |  | — |  |  | 20.0 |
Write-offs charged against allowance | (24.0) |  |  | (2.8) |  |  | — |  |  | (26.8) |
Recoveries of amounts previously written off | 10.4 |  |  | 0.3 |  |  | — |  |  | 10.7 |
Balance as of June 30, 2023 | $ | 20.4 |  |  | $ | 6.6 |  |  | $ | 0.8 |  |  | $ | 27.8 |
(in millions) | Gas Distribution Operations |  | Electric Operations |  | Corporate and Other |  | Total
Balance as of January 1, 2022 | $ | 18.9 |  |  | $ | 3.8 |  |  | $ | 0.8 |  |  | $ | 23.5 |
Current period provisions | 29.1 |  |  | 6.9 |  |  | — |  |  | 36.0 |
Write-offs charged against allowance | (52.1) |  |  | (5.3) |  |  | — |  |  | (57.4) |
Recoveries of amounts previously written off | 21.3 |  |  | 0.5 |  |  | — |  |  | 21.8 |
Balance as of December 31, 2022 | $ | 17.2 |  |  | $ | 5.9 |  |  | $ | 0.8 |  |  | $ | 23.9 |

X
- References No definition available. + Details
Name: | us-gaap_RevenueFromContractWithCustomerAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org//606/tableOfContent + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration