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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2017
Income Tax Disclosure [Abstract] |
Income tax expense for continuing operations including noncontrolling interests | Details of income tax expense for continuing operations including noncontrolling interests were as follows:
|  | Dominion Energy |  |  | Virginia Power |  |  | Dominion Energy Gas |
Year Ended December 31, |  | 2017 |  |  | 2016 |  |  | 2015 |  |  | 2017 |  |  | 2016 |  |  | 2015 |  |  | 2017 |  |  | 2016 |  |  | 2015 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (1 | ) |  | $ | (155 | ) |  | $ | (24 | ) |  | $ | 432 |  |  | $ | 168 |  |  | $ | 316 |  |  | $ | 16 |  |  | $ | (27 | ) |  | $ | 90 |
State |  |  | (26 | ) |  |  | 85 |  |  |  | 75 |  |  |  | 73 |  |  |  | 90 |  |  |  | 92 |  |  |  | 8 |  |  |  | 4 |  |  |  | 30 |
Total current expense (benefit) |  |  | (27 | ) |  |  | (70 | ) |  |  | 51 |  |  |  | 505 |  |  |  | 258 |  |  |  | 408 |  |  |  | 24 |  |  |  | (23 | ) |  |  | 120 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2017 Tax Reform Act impact |  |  | (851 | ) |  |  | — |  |  |  | — |  |  |  | (93 | ) |  |  | — |  |  |  | — |  |  |  | (197 | ) |  |  | — |  |  |  | — |
Taxes before operating loss carryforwards and investment tax credits |  |  | 739 |  |  |  | 1,050 |  |  |  | 384 |  |  |  | 319 |  |  |  | 435 |  |  |  | 154 |  |  |  | 199 |  |  |  | 239 |  |  |  | 156 |
Tax utilization expense (benefit) of operating loss carryforwards |  |  | 174 |  |  |  | (161 | ) |  |  | 539 |  |  |  | 4 |  |  |  | (2 | ) |  |  | 96 |  |  |  | 5 |  |  |  | (2 | ) |  |  | 6 |
Investment tax credits |  |  | (200 | ) |  |  | (248 | ) |  |  | (134 | ) |  |  | (23 | ) |  |  | (25 | ) |  |  | (11 | ) |  |  | — |  |  |  | — |  |  |  | — |
State |  |  | 132 |  |  |  | 50 |  |  |  | 66 |  |  |  | 59 |  |  |  | 27 |  |  |  | 13 |  |  |  | 20 |  |  |  | 1 |  |  |  | 1 |
Total deferred expense (benefit) |  |  | (6 | ) |  |  | 691 |  |  |  | 855 |  |  |  | 266 |  |  |  | 435 |  |  |  | 252 |  |  |  | 27 |  |  |  | 238 |  |  |  | 163 |
Investment tax credit-gross deferral |  |  | 5 |  |  |  | 35 |  |  |  | — |  |  |  | 5 |  |  |  | 35 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Investment tax credit-amortization |  |  | (2 | ) |  |  | (1 | ) |  |  | (1 | ) |  |  | (2 | ) |  |  | (1 | ) |  |  | (1 | ) |  |  | — |  |  |  | — |  |  |  | — |
Total income tax expense (benefit) |  | $ | (30 | ) |  | $ | 655 |  |  | $ | 905 |  |  | $ | 774 |  |  | $ | 727 |  |  | $ | 659 |  |  | $ | 51 |  |  | $ | 215 |  |  | $ | 283 |
Effective Income Tax | For continuing operations including noncontrolling interests, the statutory U.S. federal income tax rate reconciles to the Companies’ effective income tax rate as follows:
|  | Dominion Energy |  |  | Virginia Power |  |  | Dominion Energy Gas |
Year Ended December 31, |  | 2017 |  |  | 2016 |  |  | 2015 |  |  | 2017 |  |  | 2016 |  |  | 2015 |  |  | 2017 |  |  | 2016 |  |  | 2015 |
U.S. statutory rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
Increases (reductions) resulting from: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State taxes, net of federal benefit |  |  | 2.0 |  |  |  | 2.4 |  |  |  | 3.7 |  |  |  | 3.7 |  |  |  | 3.8 |  |  |  | 3.9 |  |  |  | 2.4 |  |  |  | 0.5 |  |  |  | 2.7 |
Investment tax credits |  |  | (6.3 | ) |  |  | (11.7 | ) |  |  | (4.7 | ) |  |  | (0.8 | ) |  |  | — |  |  |  | (0.6 | ) |  |  | — |  |  |  | — |  |  |  | — |
Production tax credits |  |  | (0.7 | ) |  |  | (0.8 | ) |  |  | (0.8 | ) |  |  | (0.4 | ) |  |  | (0.5 | ) |  |  | (0.6 | ) |  |  | — |  |  |  | — |  |  |  | — |
Valuation allowances |  |  | 0.2 |  |  |  | 1.2 |  |  |  | (0.3 | ) |  |  | — |  |  |  | 0.1 |  |  |  | — |  |  |  | 0.3 |  |  |  | — |  |  |  | — |
Federal legislative change |  |  | (27.5 | ) |  |  | — |  |  |  | — |  |  |  | (4.0 | ) |  |  | — |  |  |  | — |  |  |  | (29.5 | ) |  |  | — |  |  |  | — |
State legislative change |  |  | — |  |  |  | (0.6 | ) |  |  | (0.1 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
AFUDC—equity |  |  | (1.4 | ) |  |  | (0.6 | ) |  |  | (0.3 | ) |  |  | (0.6 | ) |  |  | (0.6 | ) |  |  | (0.6 | ) |  |  | (0.9 | ) |  |  | (0.2 | ) |  |  | 0.2 |
Employee stock ownership plan deduction |  |  | (0.6 | ) |  |  | (0.6 | ) |  |  | (0.6 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Other, net |  |  | (1.7 | ) |  |  | (1.4 | ) |  |  | 0.1 |  |  |  | 0.6 |  |  |  | (0.4 | ) |  |  | 0.6 |  |  |  | 0.4 |  |  |  | 0.1 |  |  |  | 0.3 |
Effective tax rate |  |  | (1.0 | )% |  |  | 22.9 | % |  |  | 32.0 | % |  |  | 33.5 | % |  |  | 37.4 | % |  |  | 37.7 | % |  |  | 7.7 | % |  |  | 35.4 | % |  |  | 38.2 | %
Deferred income taxes components | The Companies’ deferred income taxes consist of the following:
|  | Dominion Energy |  |  | Virginia Power |  |  | Dominion Energy Gas |
At December 31, |  | 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deferred income taxes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total deferred income tax assets |  | $ | 2,686 |  |  | $ | 1,827 |  |  | $ | 923 |  |  |  | $ 268 |  |  |  | $ 320 |  |  | $ | 126 |
Total deferred income tax liabilities |  |  | 7,158 |  |  |  | 10,381 |  |  |  | 3,600 |  |  |  | 5,323 |  |  |  | 1,774 |  |  |  | 2,564 |
Total net deferred income tax liabilities |  | $ | 4,472 |  |  | $ | 8,554 |  |  | $ | 2,677 |  |  |  | $5,055 |  |  |  | $1,454 |  |  | $ | 2,438 |
Total deferred income taxes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Plant and equipment, primarily depreciation method and basis differences |  | $ | 5,056 |  |  | $ | 7,782 |  |  | $ | 2,969 |  |  |  | $4,604 |  |  |  | $1,132 |  |  | $ | 1,726 |
Excess deferred income taxes |  |  | (1,050 | ) |  |  | — |  |  |  | (687 | ) |  |  | — |  |  |  | (244 | ) |  |  | — |
Nuclear decommissioning |  |  | 829 |  |  |  | 1,240 |  |  |  | 260 |  |  |  | 406 |  |  |  | — |  |  |  | — |
Deferred state income taxes |  |  | 834 |  |  |  | 747 |  |  |  | 378 |  |  |  | 321 |  |  |  | 227 |  |  |  | 204 |
Federal benefit of deferred state income taxes |  |  | (175 | ) |  |  | (261 | ) |  |  | (79 | ) |  |  | (112 | ) |  |  | (48 | ) |  |  | (71 | )
Deferred fuel, purchased energy and gas costs |  |  | 1 |  |  |  | (25 | ) |  |  | (3 | ) |  |  | (29 | ) |  |  | 2 |  |  |  | 4 |
Pension benefits |  |  | 141 |  |  |  | 155 |  |  |  | (104 | ) |  |  | (138 | ) |  |  | 419 |  |  |  | 646 |
Other postretirement benefits |  |  | (51 | ) |  |  | (68 | ) |  |  | 44 |  |  |  | 49 |  |  |  | (2 | ) |  |  | (6 | )
Loss and credit carryforwards |  |  | (1,536 | ) |  |  | (1,547 | ) |  |  | (111 | ) |  |  | (88 | ) |  |  | (4 | ) |  |  | (5 | )
Valuation allowances |  |  | 146 |  |  |  | 135 |  |  |  | 5 |  |  |  | 3 |  |  |  | 3 |  |  |  | — |
Partnership basis differences |  |  | 473 |  |  |  | 688 |  |  |  | — |  |  |  | — |  |  |  | 26 |  |  |  | 43 |
Other |  |  | (196 | ) |  |  | (292 | ) |  |  | 5 |  |  |  | 39 |  |  |  | (57 | ) |  |  | (103 | )
Total net deferred income tax liabilities |  | $ | 4,472 |  |  | $ | 8,554 |  |  | $ | 2,677 |  |  |  | $5,055 |  |  |  | $1,454 |  |  | $ | 2,438 |
Deferred Investment Tax Credits – Regulated Operations |  |  | 51 |  |  |  | 48 |  |  |  | 51 |  |  |  | 48 |  |  |  | — |  |  |  | — |
Total Deferred Taxes and Deferred Investment Tax Credits |  | $ | 4,523 |  |  | $ | 8,602 |  |  | $ | 2,728 |  |  |  | $5,103 |  |  |  | $1,454 |  |  | $ | 2,438 |
Summary of deductible loss and credit carryforwards | At December 31, 2017, Dominion Energy had the following deductible loss and credit carryforwards:
|  | Deductible Amount |  |  | Deferred Tax Asset |  |  | Valuation Allowance |  |  | Expiration Period |
(millions) |  |  |  |  |  |  |  |  |  |  |  |
Federal losses |  |  | $ 560 |  |  |  | $ 118 |  |  |  | $ — |  |  |  | 2034 |
Federal investment credits |  |  | — |  |  |  | 938 |  |  |  | — |  |  |  | 2033-2037 |
Federal production credits |  |  | — |  |  |  | 129 |  |  |  | — |  |  |  | 2031-2037 |
Other federal credits |  |  | — |  |  |  | 58 |  |  |  | — |  |  |  | 2031-2037 |
State losses |  |  | 1,366 |  |  |  | 103 |  |  |  | (63 | ) |  |  | 2018-2037 |
State minimum tax credits |  |  | — |  |  |  | 90 |  |  |  | — |  |  |  | No expiration |
State investment and other credits |  |  | — |  |  |  | 100 |  |  |  | (83 | ) |  |  | 2018-2027 |
Total |  |  | $1,926 |  |  |  | $1,536 |  |  |  | $(146 | ) |  |  |  |
At December 31, 2017, Virginia Power had the following deductible loss and credit carryforwards:
|  | Deductible Amount |  |  | Deferred Tax Asset |  |  | Valuation Allowance |  |  | Expiration Period |
(millions) |  |  |  |  |  |  |  |  |  |  |  |
Federal losses |  |  | $ 1 |  |  |  | $ — |  |  |  | $— |  |  |  | 2034 |
Federal investment credits |  |  | — |  |  |  | 51 |  |  |  | — |  |  |  | 2034-2037 |
Federal production and other credits |  |  | — |  |  |  | 51 |  |  |  | — |  |  |  | 2031-2037 |
State investment credits |  |  | — |  |  |  | 9 |  |  |  | (5 | ) |  |  | 2024 |
Total |  |  | $ 1 |  |  |  | $111 |  |  |  | $(5 | ) |  |  |  |
At December 31, 2017, Dominion Energy Gas had the following deductible loss and credit carryforwards:
|  | Deductible Amount |  |  | Deferred Tax Asset |  |  | Valuation Allowance |  |  | Expiration Period |
(millions) |  |  |  |  |  |  |  |  |  |  |  |
Other federal credits |  |  | $ — |  |  |  | $1 |  |  |  | $ — |  |  |  | 2032-2036 |
State losses |  |  | 33 |  |  |  | 3 |  |  |  | (3 | ) |  |  | 2036-2037 |
Total |  |  | $33 |  |  |  | $4 |  |  |  | $ (3 | ) |  |  |  |
Reconciliation of changes in unrecognized tax benefits | A reconciliation of changes in the Companies’ unrecognized tax benefits follows:
|  | Dominion Energy |  |  | Virginia Power |  |  | Dominion Energy Gas |
|  | 2017 |  |  | 2016 |  |  | 2015 |  |  | 2017 |  |  | 2016 |  |  | 2015 |  |  | 2017 |  |  | 2016 |  |  | 2015 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at January 1 |  | $ | 64 |  |  | $ | 103 |  |  | $ | 145 |  |  | $ | 13 |  |  | $ | 12 |  |  | $ | 36 |  |  |  | $ 7 |  |  | $ | 29 |  |  |  | $29 |
Increases-prior period positions |  |  | 1 |  |  |  | 9 |  |  |  | 2 |  |  |  | — |  |  |  | 4 |  |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | — |
Decreases-prior period positions |  |  | (9 | ) |  |  | (44 | ) |  |  | (40 | ) |  |  | (1 | ) |  |  | (3 | ) |  |  | (25 | ) |  |  | — |  |  |  | (19 | ) |  |  | — |
Increases-current period positions |  |  | 5 |  |  |  | 6 |  |  |  | 8 |  |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | — |
Settlements with tax authorities |  |  | (23 | ) |  |  | (8 | ) |  |  | (5 | ) |  |  | (8 | ) |  |  | — |  |  |  | — |  |  |  | (7 | ) |  |  | (4 | ) |  |  | — |
Expiration of statutes of limitations |  |  | — |  |  |  | (2 | ) |  |  | (7 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Balance at December 31 |  | $ | 38 |  |  | $ | 64 |  |  | $ | 103 |  |  | $ | 4 |  |  | $ | 13 |  |  | $ | 12 |  |  |  | $— |  |  | $ | 7 |  |  |  | $29 |
Earliest tax year remaining | For each of the major states in which Dominion Energy operates, the earliest tax year remaining open for examination is as follows:
State |  | Earliest Open Tax Year |
Pennsylvania(1) |  |  | 2012 |
Connecticut |  |  | 2014 |
Virginia(2) |  |  | 2014 |
West Virginia(1) |  |  | 2014 |
New York(1) |  |  | 2011 |
Utah |  |  | 2014 |
(1) | Considered a major state for Dominion Energy Gas’ operations.
(2) | Considered a major state for Virginia Power’s operations.

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