separate presentation from topic 606 revenue

Revenue1

1. 605-980Regulated Operations605 Revenue Recognition

   ASC 605-980 is the surviving remnant of the old revenue standard for entities with regulated operations (and nonutility generators), governing recognition of revenue from "alternative revenue programs" — regulator-authorized adjustments to future billings for past events. Type A programs adjust billings for weather abnormalities, broad external factors, or demand-side management; Type B programs award incentives for achieving objectives such as cost reduction or improved service. Revenue is recognized once the triggering events are complete if the program arises from a regulatory order allowing automatic rate adjustment, the amount is objectively determinable and probable of recovery, and collection occurs within 24 months after the end of the annual period of recognition (605-980-25-4).