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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2018
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, |  | 2018 |  |  | 2017 |  |  | 2016 |  |  | 2018 |  |  | 2017 |  |  | 2016 |  |  | 2018 |  |  | 2017 |  |  | 2016 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (45 | ) |  | $ | (1 | ) |  | $ | (155 | ) |  | $ | 36 |  |  | $ | 432 |  |  | $ | 168 |  |  | $ | 23 |  |  | $ | 16 |  |  | $ | (27 | )
State |  |  | 108 |  |  |  | (26 | ) |  |  | 85 |  |  |  | 40 |  |  |  | 73 |  |  |  | 90 |  |  |  | 30 |  |  |  | 8 |  |  |  | 4 |
Total current expense (benefit) |  |  | 63 |  |  |  | (27 | ) |  |  | (70 | ) |  |  | 76 |  |  |  | 505 |  |  |  | 258 |  |  |  | 53 |  |  |  | 24 |  |  |  | (23 | )
Deferred: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2017 Tax Reform Act impact |  |  | 46 |  |  |  | (851 | ) |  |  | — |  |  |  | 21 |  |  |  | (93 | ) |  |  | — |  |  |  | (11 | ) |  |  | (197 | ) |  |  | — |
Taxes before operating loss carryforwards and investment tax credits |  |  | 436 |  |  |  | 739 |  |  |  | 1,050 |  |  |  | 199 |  |  |  | 319 |  |  |  | 435 |  |  |  | 48 |  |  |  | 199 |  |  |  | 239 |
Tax utilization expense (benefit) of operating loss carryforwards |  |  | 92 |  |  |  | 174 |  |  |  | (161 | ) |  |  | — |  |  |  | 4 |  |  |  | (2 | ) |  |  | — |  |  |  | 5 |  |  |  | (2 | )
Investment tax credits |  |  | (56 | ) |  |  | (200 | ) |  |  | (248 | ) |  |  | (51 | ) |  |  | (23 | ) |  |  | (25 | ) |  |  | — |  |  |  | — |  |  |  | — |
State |  |  | (1 | ) |  |  | 132 |  |  |  | 50 |  |  |  | 55 |  |  |  | 59 |  |  |  | 27 |  |  |  | (4 | ) |  |  | 20 |  |  |  | 1 |
Total deferred expense (benefit) |  |  | 517 |  |  |  | (6 | ) |  |  | 691 |  |  |  | 224 |  |  |  | 266 |  |  |  | 435 |  |  |  | 33 |  |  |  | 27 |  |  |  | 238 |
Investment tax credit-gross deferral |  |  | 2 |  |  |  | 5 |  |  |  | 35 |  |  |  | 2 |  |  |  | 5 |  |  |  | 35 |  |  |  | — |  |  |  | — |  |  |  | — |
Investment tax credit-amortization |  |  | (2 | ) |  |  | (2 | ) |  |  | (1 | ) |  |  | (2 | ) |  |  | (2 | ) |  |  | (1 | ) |  |  | — |  |  |  | — |  |  |  | — |
Total income tax expense (benefit) |  | $ | 580 |  |  | $ | (30 | ) |  | $ | 655 |  |  | $ | 300 |  |  | $ | 774 |  |  | $ | 727 |  |  | $ | 86 |  |  | $ | 51 |  |  | $ | 215 |
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, |  | 2018 |  |  | 2017 |  |  | 2016 |  |  | 2018 |  |  | 2017 |  |  | 2016 |  |  | 2018 |  |  | 2017 |  |  | 2016 |
U.S. statutory rate |  |  | 21.0 | % |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 21.0 | % |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 21.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
Increases (reductions) resulting from: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State taxes, net of federal benefit |  |  | 3.0 |  |  |  | 2.0 |  |  |  | 2.4 |  |  |  | 4.7 |  |  |  | 3.7 |  |  |  | 3.8 |  |  |  | 3.2 |  |  |  | 2.4 |  |  |  | 0.5 |
Investment tax credits |  |  | (1.9 | ) |  |  | (6.3 | ) |  |  | (11.7 | ) |  |  | (3.5 | ) |  |  | (0.8 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Production tax credits |  |  | (0.7 | ) |  |  | (0.7 | ) |  |  | (0.8 | ) |  |  | (0.7 | ) |  |  | (0.4 | ) |  |  | (0.5 | ) |  |  | — |  |  |  | — |  |  |  | — |
Valuation allowances |  |  | 0.3 |  |  |  | 0.2 |  |  |  | 1.2 |  |  |  | — |  |  |  | — |  |  |  | 0.1 |  |  |  | 1.8 |  |  |  | 0.3 |  |  |  | — |
Reversal of excess deferred income taxes |  |  | (2.0 | ) |  |  | — |  |  |  | — |  |  |  | (3.2 | ) |  |  | — |  |  |  | — |  |  |  | (1.7 | ) |  |  | — |  |  |  | — |
Federal legislative change |  |  | 1.5 |  |  |  | (27.5 | ) |  |  | — |  |  |  | 1.3 |  |  |  | (4.0 | ) |  |  | — |  |  |  | (2.8 | ) |  |  | (29.5 | ) |  |  | — |
State legislative change |  |  | (0.6 | ) |  |  | — |  |  |  | (0.6 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 0.2 |  |  |  | — |  |  |  | — |
AFUDC—equity |  |  | (0.8 | ) |  |  | (1.4 | ) |  |  | (0.6 | ) |  |  | (0.5 | ) |  |  | (0.6 | ) |  |  | (0.6 | ) |  |  | (0.6 | ) |  |  | (0.9 | ) |  |  | (0.2 | )
Employee stock ownership plan deduction |  |  | (0.4 | ) |  |  | (0.6 | ) |  |  | (0.6 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Other, net |  |  | (0.9 | ) |  |  | (1.7 | ) |  |  | (1.4 | ) |  |  | (0.1 | ) |  |  | 0.6 |  |  |  | (0.4 | ) |  |  | 1.2 |  |  |  | 0.4 |  |  |  | 0.1 |
Effective tax rate |  |  | 18.5 | % |  |  | (1.0 | )% |  |  | 22.9 | % |  |  | 19.0 | % |  |  | 33.5 | % |  |  | 37.4 | % |  |  | 22.3 | % |  |  | 7.7 | % |  |  | 35.4 | %
Deferred income taxes components | The Companies’ deferred income taxes consist of the following:
|  | Dominion Energy |  |  | Virginia Power |  |  | Dominion Energy Gas |
At December 31, |  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deferred income taxes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total deferred income tax assets |  | $ | 2,748 |  |  | $ | 2,686 |  |  | $ | 1,054 |  |  |  | $ 923 |  |  |  | $ 318 |  |  | $ | 320 |
Total deferred income tax liabilities |  |  | 7,813 |  |  |  | 7,158 |  |  |  | 4,020 |  |  |  | 3,600 |  |  |  | 1,783 |  |  |  | 1,774 |
Total net deferred income tax liabilities |  | $ | 5,065 |  |  | $ | 4,472 |  |  | $ | 2,966 |  |  |  | $2,677 |  |  |  | $1,465 |  |  | $ | 1,454 |
Total deferred income taxes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Plant and equipment, primarily depreciation method and basis differences |  | $ | 4,933 |  |  | $ | 5,056 |  |  | $ | 3,367 |  |  |  | $2,969 |  |  |  | $1,170 |  |  | $ | 1,132 |
Excess deferred income taxes |  |  | (993 | ) |  |  | (1,050 | ) |  |  | (678 | ) |  |  | (687 | ) |  |  | (254 | ) |  |  | (244 | )
Nuclear decommissioning |  |  | 815 |  |  |  | 829 |  |  |  | 273 |  |  |  | 260 |  |  |  | — |  |  |  | — |
Deferred state income taxes |  |  | 626 |  |  |  | 834 |  |  |  | 284 |  |  |  | 378 |  |  |  | 175 |  |  |  | 227 |
Federal benefit of deferred state income taxes |  |  | (132 | ) |  |  | (175 | ) |  |  | (60 | ) |  |  | (79 | ) |  |  | (37 | ) |  |  | (48 | )
Deferred fuel, purchased energy and gas costs |  |  | 60 |  |  |  | 1 |  |  |  | 59 |  |  |  | (3 | ) |  |  | 1 |  |  |  | 2 |
Pension benefits |  |  | 81 |  |  |  | 141 |  |  |  | (132 | ) |  |  | (104 | ) |  |  | 431 |  |  |  | 419 |
Other postretirement benefits |  |  | (5 | ) |  |  | (51 | ) |  |  | 55 |  |  |  | 44 |  |  |  | (1 | ) |  |  | (2 | )
Loss and credit carryforwards |  |  | (1,546 | ) |  |  | (1,536 | ) |  |  | (183 | ) |  |  | (111 | ) |  |  | (7 | ) |  |  | (4 | )
Valuation allowances |  |  | 158 |  |  |  | 146 |  |  |  | 5 |  |  |  | 5 |  |  |  | 12 |  |  |  | 3 |
Partnership basis differences |  |  | 1,135 |  |  |  | 473 |  |  |  | — |  |  |  | — |  |  |  | 26 |  |  |  | 26 |
Other |  |  | (67 | ) |  |  | (196 | ) |  |  | (24 | ) |  |  | 5 |  |  |  | (51 | ) |  |  | (57 | )
Total net deferred income tax liabilities |  | $ | 5,065 |  |  | $ | 4,472 |  |  | $ | 2,966 |  |  |  | $2,677 |  |  |  | $1,465 |  |  | $ | 1,454 |
Deferred Investment Tax Credits – Regulated Operations |  |  | 51 |  |  |  | 51 |  |  |  | 51 |  |  |  | 51 |  |  |  | — |  |  |  | — |
Total Deferred Taxes and Deferred Investment Tax Credits |  | $ | 5,116 |  |  | $ | 4,523 |  |  | $ | 3,017 |  |  |  | $2,728 |  |  |  | $1,465 |  |  | $ | 1,454 |
Summary of deductible loss and credit carryforwards | At December 31, 2018, Dominion Energy had the following deductible loss and credit carryforwards:
|  | Deductible Amount |  |  | Deferred Tax Asset |  |  | Valuation Allowance |  |  | Expiration Period |
(millions) |  |  |  |  |  |  |  |  |  |  |  |
Federal losses |  |  | $ 120 |  |  | $ | 25 |  |  |  | $ — |  |  |  | 2034 |
Federal investment credits |  |  | — |  |  |  | 1,007 |  |  |  | — |  |  |  | 2033-2038 |
Federal production credits |  |  | — |  |  |  | 150 |  |  |  | — |  |  |  | 2031-2038 |
Other federal credits |  |  | — |  |  |  | 62 |  |  |  | — |  |  |  | 2031-2038 |
State losses |  |  | 1,126 |  |  |  | 73 |  |  |  | (61 | ) |  |  | 2019-2038 |
State minimum tax credits |  |  | — |  |  |  | 122 |  |  |  | — |  |  |  | No expiration |
State investment and other credits |  |  | — |  |  |  | 107 |  |  |  | (90 | ) |  |  | 2019-2025 |
Total |  |  | $1,246 |  |  | $ | 1,546 |  |  |  | $(151) |  |  |  |  |
At December 31, 2018, 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 |  |  | — |  |  |  | 113 |  |  |  | — |  |  |  | 2034-2038 |
Federal production and other credits |  |  | — |  |  |  | 61 |  |  |  | — |  |  |  | 2031-2038 |
State investment credits |  |  | — |  |  |  | 9 |  |  |  | (5 | ) |  |  | 2024 |
Total |  |  | $ 1 |  |  |  | $183 |  |  |  | $(5 | ) |  |  |  |
At December 31, 2018, 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 |  |  | $ | — |  |  |  | 2032-2037 |
State losses |  |  | 53 |  |  |  | 5 |  |  |  | (5 | ) |  |  | 2036-2038 |
Total |  | $ | 53 |  |  | $ | 6 |  |  | $ | (5 | ) |  |  |  |
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 |
|  | 2018 |  |  | 2017 |  |  | 2016 |  |  | 2018 |  |  | 2017 |  |  | 2016 |  |  | 2018 |  |  | 2017 |  |  | 2016 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at January 1 |  | $ | 38 |  |  | $ | 64 |  |  | $ | 103 |  |  | $ | 4 |  |  | $ | 13 |  |  | $ | 12 |  |  |  | $ — |  |  | $ | 7 |  |  |  | $29 |
Increases-prior period positions |  |  | 10 |  |  |  | 1 |  |  |  | 9 |  |  |  | — |  |  |  | — |  |  |  | 4 |  |  |  | — |  |  |  | — |  |  |  | 1 |
Decreases-prior period positions |  |  | — |  |  |  | (9 | ) |  |  | (44 | ) |  |  | — |  |  |  | (1 | ) |  |  | (3 | ) |  |  | — |  |  |  | — |  |  |  | (19 | )
Increases-current period positions |  |  | 10 |  |  |  | 5 |  |  |  | 6 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Settlements with tax authorities |  |  | (6 | ) |  |  | (23 | ) |  |  | (8 | ) |  |  | (1 | ) |  |  | (8 | ) |  |  | — |  |  |  | — |  |  |  | (7 | ) |  |  | (4 | )
Expiration of statutes of limitations |  |  | (8 | ) |  |  | — |  |  |  | (2 | ) |  |  | (1 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Balance at December 31 |  | $ | 44 |  |  | $ | 38 |  |  | $ | 64 |  |  | $ | 2 |  |  | $ | 4 |  |  | $ | 13 |  |  |  | $— |  |  | $ | — |  |  |  | $ 7 |

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