Revenue from Contracts with Customers

Disaggregation of Revenues with Customers

The following tables represent a disaggregation of our operating revenues for the three months ended March 31, 2020 and 2019 by reportable segment (in millions). See Note 11 for a description of our segments.



	Three Months Ended March 31, 2020
	Wholesale
	West		Texas		East		Retail		Elimination			Total
Third Party:
Energy & other products	$	201	$	219	$	106	$	324	$	—		$	850
Capacity	62		28		105		—		—			195
Revenues relating to physical or executory contracts – third party	$	263	$	247	$	211	$	324	$	—		$	1,045

Affiliate⁽¹⁾:	$	17	$	10	$	19	$	1	$	(47	)	$	—

Revenues relating to leases and derivative instruments⁽²⁾												$	1,246
Other												1
Total operating revenues												$	2,292



	Three Months Ended March 31, 2019
	Wholesale
	West		Texas		East		Retail		Elimination			Total
Third Party:
Energy & other products	$	292	$	302	$	203	$	412	$	—		$	1,209
Capacity	35		32		177		—		—			244
Revenues relating to physical or executory contracts – third party	$	327	$	334	$	380	$	412	$	—		$	1,453

Affiliate⁽¹⁾:	$	11	$	14	$	27	$	3	$	(55	)	$	—

Revenues relating to leases and derivative instruments⁽²⁾												$	1,146
Total operating revenues												$	2,599

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(1)	Affiliate energy, other and capacity revenues reflect revenues on transactions between wholesale and retail affiliates excluding affiliate activity related to leases and derivative instruments. All such activity supports retail supply needs from the wholesale business and/or allows for collateral margin netting efficiencies at Calpine.

(2)

Revenues relating to contracts accounted for as leases and derivatives include energy and capacity revenues relating to PPAs that we are required to account for as operating leases and physical and financial commodity derivative contracts, primarily relating to power, natural gas and environmental products. Revenue related to derivative instruments includes revenue recorded in Commodity revenue and mark-to-market gain (loss) within our operating revenues on our Consolidated Condensed Statements of Operations.

Performance Obligations and Contract Balances

At March 31, 2020 and December 31, 2019, deferred revenue balances relating to contracts with our customers were included in other current liabilities on our Consolidated Condensed Balance Sheets and primarily relate to sales of environmental products and capacity. We classify deferred revenue as current or long-term based on the timing of when we expect to recognize revenue. The balance outstanding at March 31, 2020 and December 31, 2019 was $21 million and $14 million, respectively. The revenue recognized during the three months ended March 31, 2020 and 2019, relating to the deferred revenue balance at the beginning of each period was $1 million and $2 million, respectively and resulted from our performance under the customer contracts. The change in the deferred revenue balance during the three months ended March 31, 2020 and 2019 was primarily due to the timing difference of when consideration was received and when the related good or service was transferred.

Performance Obligations not yet Satisfied

As of March 31, 2020, we have entered into certain contracts for fixed and determinable amounts with customers under which we have not yet completed our performance obligations which primarily includes agreements for which we are providing capacity from our generating facilities. We have revenues related to the sale of capacity through participation in various ISO capacity auctions estimated based upon cleared volumes and the sale of capacity to our customers of $496 million, $657 million, $441 million, $307 million and $192 million that will be recognized during the years ending December 31, 2020, 2021, 2022, 2023 and 2024, respectively, and $63 million thereafter. Revenues under these contracts will be recognized as we transfer control of the commodities to our customers.