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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2019
Income Tax Disclosure [Abstract] |
Income tax expense for continuing operations including noncontrolling interests | Continuing Operations 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, |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | 2019 |  |  | 2018 |  |  | 2017 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 32 |  |  | $ | (45 | ) |  | $ | (1 | ) |  | $ | 286 |  |  | $ | 36 |  |  | $ | 432 |  |  | $ | 130 |  |  | $ | (227 | ) |  | $ | 75 |
State |  |  | 103 |  |  |  | 108 |  |  |  | (26 | ) |  |  | 58 |  |  |  | 40 |  |  |  | 73 |  |  |  | 17 |  |  |  | 31 |  |  |  | 13 |
Total current expense (benefit) |  |  | 135 |  |  |  | 63 |  |  |  | (27 | ) |  |  | 344 |  |  |  | 76 |  |  |  | 505 |  |  |  | 147 |  |  |  | (196 | ) |  |  | 88 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2017 Tax Reform Act impact (1) |  |  | — |  |  |  | 46 |  |  |  | (851 | ) |  |  | — |  |  |  | 21 |  |  |  | (93 | ) |  |  | — |  |  |  | (6 | ) |  |  | (246 | )
Taxes before operating loss carryforwards, investment tax credits and tax reform |  |  | 182 |  |  |  | 436 |  |  |  | 739 |  |  |  | (128 | ) |  |  | 199 |  |  |  | 319 |  |  |  | (36 | ) |  |  | 343 |  |  |  | 88 |
Tax utilization expense (benefit) of operating loss carryforwards |  |  | 119 |  |  |  | 92 |  |  |  | 174 |  |  |  | — |  |  |  | — |  |  |  | 4 |  |  |  | — |  |  |  | — |  |  |  | — |
Investment tax credits |  |  | (51 | ) |  |  | (56 | ) |  |  | (200 | ) |  |  | (34 | ) |  |  | (51 | ) |  |  | (23 | ) |  |  | — |  |  |  | — |  |  |  | — |
State |  |  | (93 | ) |  |  | (1 | ) |  |  | 132 |  |  |  | 22 |  |  |  | 55 |  |  |  | 59 |  |  |  | (10 | ) |  |  | (17 | ) |  |  | 5 |
Total deferred expense (benefit) |  |  | 157 |  |  |  | 517 |  |  |  | (6 | ) |  |  | (140 | ) |  |  | 224 |  |  |  | 266 |  |  |  | (46 | ) |  |  | 320 |  |  |  | (153 | )
Investment tax credit-gross deferral |  |  | 62 |  |  |  | 2 |  |  |  | 5 |  |  |  | 62 |  |  |  | 2 |  |  |  | 5 |  |  |  | — |  |  |  | — |  |  |  | — |
Investment tax credit-amortization |  |  | (3 | ) |  |  | (2 | ) |  |  | (2 | ) |  |  | (2 | ) |  |  | (2 | ) |  |  | (2 | ) |  |  | — |  |  |  | — |  |  |  | — |
Total income tax expense (benefit) |  | $ | 351 |  |  | $ | 580 |  |  | $ | (30 | ) |  | $ | 264 |  |  | $ | 300 |  |  | $ | 774 |  |  | $ | 101 |  |  | $ | 124 |  |  | $ | (65 | )
(1) | The 2017 Tax Reform Act impact for Dominion Energy Gas includes an expense of $8 million for the year ended December 31, 2018 and a benefit of $93 million for the year ended December 31, 2017 arising from discontinued operations.
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, |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | 2019 |  |  | 2018 |  |  | 2017 |
U.S. statutory rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 35.0 | % |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 35.0 | % |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 35.0 | %
Increases (reductions) resulting from: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State taxes, net of federal benefit |  |  | 1.3 |  |  |  | 3.0 |  |  |  | 2.0 |  |  |  | 4.5 |  |  |  | 4.7 |  |  |  | 3.7 |  |  |  | 2.5 |  |  |  | 3.2 |  |  |  | 2.6 |
Investment tax credits |  |  | (5.7 | ) |  |  | (1.9 | ) |  |  | (6.3 | ) |  |  | (2.9 | ) |  |  | (3.5 | ) |  |  | (0.8 | ) |  |  | — |  |  |  | — |  |  |  | — |
Production tax credits |  |  | (1.1 | ) |  |  | (0.7 | ) |  |  | (0.7 | ) |  |  | (0.7 | ) |  |  | (0.7 | ) |  |  | (0.4 | ) |  |  | — |  |  |  | — |  |  |  | — |
Valuation allowances |  |  | 0.1 |  |  |  | 0.3 |  |  |  | 0.2 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (0.2 | ) |  |  | — |  |  |  | 0.3 |
Reversal of excess deferred income taxes |  |  | (2.0 | ) |  |  | (2.0 | ) |  |  | — |  |  |  | (3.1 | ) |  |  | (3.2 | ) |  |  | — |  |  |  | (0.8 | ) |  |  | (0.6 | ) |  |  | — |
Federal legislative change |  |  | — |  |  |  | 1.5 |  |  |  | (27.5 | ) |  |  | — |  |  |  | 1.3 |  |  |  | (4.0 | ) |  |  | — |  |  |  | (0.5 | ) |  |  | (41.0 | )
State legislative change |  |  | — |  |  |  | (0.6 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (2.0 | ) |  |  | (0.7 | )
Write-off of regulatory assets |  |  | 10.9 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Change in tax status |  |  | (2.8 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (6.0 | ) |  |  | — |  |  |  | — |
AFUDC—equity |  |  | (1.8 | ) |  |  | (0.8 | ) |  |  | (1.4 | ) |  |  | — |  |  |  | (0.5 | ) |  |  | (0.6 | ) |  |  | (0.5 | ) |  |  | (0.3 | ) |  |  | (0.9 | )
Employee stock ownership plan deduction |  |  | (0.7 | ) |  |  | (0.4 | ) |  |  | (0.6 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Other, net |  |  | 1.1 |  |  |  | (0.9 | ) |  |  | (1.7 | ) |  |  | (0.2 | ) |  |  | (0.1 | ) |  |  | 0.6 |  |  |  | (3.4 | ) (1) |  |  | (4.4 | ) (1) |  |  | (6.0 | ) (1)
Effective tax rate |  |  | 20.3 | % |  |  | 18.5 | % |  |  | (1.0 | )% |  |  | 18.6 | % |  |  | 19.0 | % |  |  | 33.5 | % |  |  | 12.6 | % |  |  | 16.4 | % |  |  | (10.7 | )%
(1) | Includes (3.2)%, (4.6)% and (6.7)% relating to the absence of tax on noncontrolling interest in 2019, 2018 and 2017, respectively.
Deferred income taxes components | The Companies’ deferred income taxes consist of the following:
|  | Dominion Energy |  |  | Virginia Power |  |  | Dominion Energy Gas |
At December 31, |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deferred income taxes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total deferred income tax assets |  | $ | 3,736 |  |  | $ | 2,748 |  |  | $ | 1,207 |  |  |  | $ 1,054 |  |  |  | $ 206 |  |  | $ | 296 |
Total deferred income tax liabilities |  |  | 9,883 |  |  |  | 7,813 |  |  |  | 4,058 |  |  |  | 4,020 |  |  |  | 1,494 |  |  |  | 1,626 |
Total net deferred income tax liabilities |  | $ | 6,147 |  |  | $ | 5,065 |  |  | $ | 2,851 |  |  |  | $2,966 |  |  |  | $1,288 |  |  | $ | 1,330 |
Total deferred income taxes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Plant and equipment, primarily depreciation method and basis differences |  | $ | 6,616 |  |  | $ | 4,933 |  |  | $ | 3,359 |  |  | $ | 3,367 |  |  | $ | 742 |  |  | $ | 671 |
Excess deferred income taxes |  |  | (1,306 | ) |  |  | (993 | ) |  |  | (672 | ) |  |  | (678 | ) |  |  | (149 | ) |  |  | (156 | )
Unrecovered NND Project costs |  |  | 553 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
DESC rate refund |  |  | (169 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Toshiba Settlement |  |  | (219 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Nuclear decommissioning |  |  | 909 |  |  |  | 815 |  |  |  | 290 |  |  |  | 273 |  |  |  | — |  |  |  | — |
Deferred state income taxes |  |  | 863 |  |  |  | 626 |  |  |  | 302 |  |  |  | 284 |  |  |  | 199 |  |  |  | 203 |
Federal benefit of deferred state income taxes |  |  | (184 | ) |  |  | (132 | ) |  |  | (63 | ) |  |  | (60 | ) |  |  | (42 | ) |  |  | (43 | )
Deferred fuel, purchased energy and gas costs |  |  | 30 |  |  |  | 60 |  |  |  | 1 |  |  |  | 59 |  |  |  | — |  |  |  | (1 | )
Pension benefits |  |  | 174 |  |  |  | 81 |  |  |  | (153 | ) |  |  | (132 | ) |  |  | 154 |  |  |  | 134 |
Other postretirement benefits |  |  | (37 | ) |  |  | (5 | ) |  |  | 62 |  |  |  | 55 |  |  |  | (6 | ) |  |  | (3 | )
Loss and credit carryforwards |  |  | (1,832 | ) |  |  | (1,546 | ) |  |  | (280 | ) |  |  | (183 | ) |  |  | (1 | ) |  |  | (5 | )
Valuation allowances |  |  | 161 |  |  |  | 158 |  |  |  | 5 |  |  |  | 5 |  |  |  | 1 |  |  |  | 6 |
Partnership basis differences |  |  | 823 |  |  |  | 1,135 |  |  |  | — |  |  |  | — |  |  |  | 423 |  |  |  | 570 |
Other |  |  | (235 | ) |  |  | (67 | ) |  |  | — |  |  |  | (24 | ) |  |  | (33 | ) |  |  | (46 | )
Total net deferred income tax liabilities |  | $ | 6,147 |  |  | $ | 5,065 |  |  | $ | 2,851 |  |  |  | $2,966 |  |  |  | $1,288 |  |  | $ | 1,330 |
Deferred Investment Tax Credits – Regulated Operations |  |  | 130 |  |  |  | 51 |  |  |  | 111 |  |  |  | 51 |  |  |  | — |  |  |  | — |
Total Deferred Taxes and Deferred Investment Tax Credits |  | $ | 6,277 |  |  | $ | 5,116 |  |  | $ | 2,962 |  |  |  | $3,017 |  |  |  | $1,288 |  |  | $ | 1,330 |
Summary of deductible loss and credit carryforwards | At December 31, 2019, Dominion Energy had the following deductible loss and credit carryforwards:
|  | Deductible Amount |  |  | Deferred Tax Asset |  |  | Valuation Allowance |  |  | Expiration Period |
(millions) |  |  |  |  |  |  |  |  |  |  |  |
Federal losses |  |  | $ 1,361 |  |  | $ | 286 |  |  |  | $ — |  |  |  | 2037 |
Federal investment credits |  |  | — |  |  |  | 922 |  |  |  | — |  |  |  | 2035-2039 |
Federal production credits |  |  | — |  |  |  | 126 |  |  |  | — |  |  |  | 2035-2039 |
Other federal credits |  |  | — |  |  |  | 40 |  |  |  | — |  |  |  | 2035-2038 |
State losses |  |  | 3,074 |  |  |  | 173 |  |  |  | (57 | ) |  |  | 2020-2038 |
State minimum tax credits |  |  | — |  |  |  | 165 |  |  |  | — |  |  |  | No expiration |
State investment and other credits |  |  | — |  |  |  | 144 |  |  |  | (98 | ) |  |  | 2020-2031 |
Total |  |  | $4,435 |  |  | $ | 1,856 |  |  |  | $(155) |  |  |  |  |
At December 31, 2019, Virginia Power had the following deductible loss and credit carryforwards:
|  | Deductible Amount |  |  | Deferred Tax Asset |  |  | Valuation Allowance |  |  | Expiration Period |
(millions) |  |  |  |  |  |  |  |  |  |  |  |
Federal investment credits |  |  | $ — |  |  |  | $ 213 |  |  |  | $ — |  |  |  | 2035-2039 |
Federal production and other credits |  |  | — |  |  |  | 58 |  |  |  | — |  |  |  | 2035-2039 |
State investment credits |  |  | — |  |  |  | 9 |  |  |  | (5 | ) |  |  | 2024 |
Total |  |  | $ — |  |  |  | $ 280 |  |  |  | $ (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 |
|  | 2019 |  |  | 2018 |  |  | 2017 |  |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | 2019 |  |  | 2018 |  |  | 2017 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at January 1 |  | $ | 44 |  |  | $ | 38 |  |  | $ | 64 |  |  | $ | 2 |  |  | $ | 4 |  |  | $ | 13 |  |  |  | $2 |  |  | $ | 2 |  |  |  | $9 |
Acquired unrecognized tax benefits |  |  | 129 | (1) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Increases-prior period positions |  |  | — |  |  |  | 10 |  |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Decreases-prior period positions |  |  | — |  |  |  | — |  |  |  | (9 | ) |  |  | — |  |  |  | — |  |  |  | (1 | ) |  |  | — |  |  |  | — |  |  |  | — |
Increases-current period positions |  |  | 9 |  |  |  | 10 |  |  |  | 5 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Settlements with tax authorities |  |  | (7 | ) |  |  | (6 | ) |  |  | (23 | ) |  |  | (2 | ) |  |  | (1 | ) |  |  | (8 | ) |  |  | — |  |  |  | — |  |  |  | (7 | )
Expiration of statutes of limitations |  |  | — |  |  |  | (8 | ) |  |  | — |  |  |  | — |  |  |  | (1 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Balance at December 31 |  | $ | 175 |  |  | $ | 44 |  |  | $ | 38 |  |  | $ | — |  |  | $ | 2 |  |  | $ | 4 |  |  |  | $2 |  |  | $ | 2 |  |  |  | $2 |
(1) | Acquired unrecognized tax benefits reflect $106 million plus increases in prior period positions of $76 million and decreases in prior period positions of $53 million that were recorded through purchase accounting.
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 |  |  | 2016 |
Virginia (2) |  |  | 2016 |
West Virginia (1) |  |  | 2016 |
New York (1) |  |  | 2015 |
Utah |  |  | 2016 |
South Carolina |  |  | 2012 |

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