2025 Essential Annual Report

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (continued) (In thousands of dollars, except per share amounts)

Wastewater Revenues

Natural Gas Revenues

2024

Water Revenues

Other Revenues

Revenues from contracts with customers: Residential

$

662,909 $

146,849 $

504,426 $

- - - - - - -

Commercial Fire protection

186,534 42,409 34,831

36,951

100,662

-

-

Industrial

2,724

2,279

Gas transportation & storage

-

- -

194,413

Other water

80,964

- -

Other wastewater

- -

12,898

Other utility

-

30,436 832,216 10,775

11,226 11,226

Revenues from contracts with customers

1,007,647

199,422

Alternative revenue program

3,850

(265)

-

Other and eliminations

-

-

-

21,242

Consolidated

$

1,011,497 $

199,157 $

842,991 $ 32,468

Wastewater Revenues

Natural Gas Revenues

2023

Water Revenues

Other Revenues

Revenues from contracts with customers: Residential

$

641,351 $

139,188 $

519,406 $

- - - - - - -

Commercial Fire protection

180,731 41,257 33,949

35,530

111,272

-

-

Industrial

2,087

3,232

Gas transportation & storage

-

- -

184,598

Other water

51,527

- -

Other wastewater

- -

10,589

Other utility

-

43,163 861,671

14,863 14,863

Revenues from contracts with customers

948,815

187,394

Alternative revenue program

2,236

68

2,088

-

Other and eliminations

-

-

-

36,689

Consolidated

$

951,051 $

187,462 $

863,759 $ 51,552

Revenues from Contracts with Customers – These revenues are composed of four main categories: water, wastewater, natural gas, 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 environment. Natural gas revenues represent revenues earned for the gas commodity and delivery of natural gas to customers. Other revenues are associated fees that relate to our utility businesses but are not water, wastewater, or natural gas revenues. Refer to the description below for a discussion of the performance obligation for each of these revenue streams.  Tariff Revenues – These revenues are categorized by customer class: residential, commercial, fire protection, industrial, gas transportation, 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. The regulated natural gas rates are set and adjusted for increases or decreases in our purchased gas costs through purchased gas adjustment mechanisms. Purchased gas adjustment mechanisms provide us with a means to recover purchased gas costs on an ongoing basis without filing a rate case. Other water and other wastewater revenues consists primarily of fines, penalties, surcharges, and availability lot fees. Our performance obligation for tariff revenues is to provide potable water, wastewater treatment service, or delivery and sale of natural gas 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.

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