XML 66 R43.htm IDEA: XBRL DOCUMENT
v3.20.4

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2020
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 |
Year Ended December 31, |  | 2020 |  |  | 2019 |  |  | 2018 |  |  | 2020 |  |  | 2019 |  |  | 2018 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (314 | ) |  | $ | (94 | ) |  | $ | 294 |  |  | $ | 364 |  |  | $ | 286 |  |  | $ | 36 |
State |  |  | (81 | ) |  |  | 58 |  |  |  | 82 |  |  |  | 71 |  |  |  | 58 |  |  |  | 40 |
Total current expense (benefit) |  |  | (395 | ) |  |  | (36 | ) |  |  | 376 |  |  |  | 435 |  |  |  | 344 |  |  |  | 76 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Taxes before operating loss carryforwards, investment tax credits and tax reform |  |  | 12 |  |  |  | 168 |  |  |  | 30 |  |  |  | (226 | ) |  |  | (128 | ) |  |  | 199 |
2017 Tax Reform Act |  |  | — |  |  |  | — |  |  |  | 46 |  |  |  | — |  |  |  | — |  |  |  | 21 |
Tax utilization expense of operating loss carryforwards |  |  | 44 |  |  |  | 119 |  |  |  | 92 |  |  |  | — |  |  |  | — |  |  |  | — |
Investment tax credits |  |  | 311 |  |  |  | (51 | ) |  |  | (56 | ) |  |  | (27 | ) |  |  | (34 | ) |  |  | (51 | )
State |  |  | 72 |  |  |  | (50 | ) |  |  | 34 |  |  |  | 7 |  |  |  | 22 |  |  |  | 55 |
Total deferred expense (benefit) |  |  | 439 |  |  |  | 186 |  |  |  | 146 |  |  |  | (246 | ) |  |  | (140 | ) |  |  | 224 |
Investment tax credit-gross deferral |  |  | 42 |  |  |  | 62 |  |  |  | 2 |  |  |  | 42 |  |  |  | 62 |  |  |  | 2 |
Investment tax credit-amortization |  |  | (3 | ) |  |  | (3 | ) |  |  | (2 | ) |  |  | (2 | ) |  |  | (2 | ) |  |  | (2 | )
Total income tax expense |  | $ | 83 |  |  | $ | 209 |  |  | $ | 522 |  |  | $ | 229 |  |  | $ | 264 |  |  | $ | 300 |
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
Year Ended December 31, |  | 2020 |  |  | 2019 |  |  | 2018 |  |  | 2020 |  |  | 2019 |  |  | 2018 |  |
U.S. statutory rate |  |  | 21.0 |  | % |  | 21.0 |  | % |  | 21.0 |  | % |  | 21.0 |  | % |  | 21.0 |  | % |  | 21.0 |  | %
Increases (reductions) resulting from: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State taxes, net of federal benefit |  |  | 2.0 |  |  |  | 1.5 |  |  |  | 4.3 |  |  |  | 4.8 |  |  |  | 4.5 |  |  |  | 4.7 |  |
Investment tax credits |  |  | (9.6 | ) |  |  | (11.4 | ) |  |  | (2.3 | ) |  |  | (4.5 | ) |  |  | (2.9 | ) |  |  | (3.5 | ) |
Production tax credits |  |  | (0.7 | ) |  |  | (2.1 | ) |  |  | (0.8 | ) |  |  | (0.7 | ) |  |  | (0.7 | ) |  |  | (0.7 | ) |
Valuation allowances |  |  | 0.9 |  |  |  | 0.5 |  |  |  | 0.4 |  |  |  | — |  |  |  | — |  |  |  | — |  |
Reversal of excess deferred income taxes |  |  | (5.4 | ) |  |  | (3.2 | ) |  |  | (2.3 | ) |  |  | (2.2 | ) |  |  | (3.1 | ) |  |  | (3.2 | ) |
Federal legislative change |  |  | — |  |  |  | — |  |  |  | 1.8 |  |  |  | — |  |  |  | — |  |  |  | 1.3 |  |
State legislative change |  |  | — |  |  |  | — |  |  |  | (0.8 | ) |  |  | — |  |  |  | — |  |  |  | — |  |
Write-off of regulatory assets |  |  | — |  |  |  | 21.7 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |
Change in tax status |  |  | (1.7 | ) |  |  | (5.5 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |
AFUDC—equity |  |  | (0.2 | ) |  |  | (0.2 | ) |  |  | (0.3 | ) |  |  | — |  |  |  | — |  |  |  | (0.5 | ) |
Changes in state deferred taxes associated with assets held for sale |  |  | (3.2 | ) |  |  | — |  |  |  | — |  |  |  |  |  |  |  | — |  |  |  | — |  |
Absence of tax on noncontrolling interest |  |  | 3.8 |  |  |  | (0.2 | ) |  |  | (0.1 | ) |  |  | — |  |  |  | — |  |  |  | — |  |
Employee stock ownership plan deduction |  |  | (0.9 | ) |  |  | (1.4 | ) |  |  | (0.5 | ) |  |  | — |  |  |  | — |  |  |  | — |  |
Nondeductible goodwill |  |  | — |  |  |  | 1.8 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |
Other, net |  |  | (0.1 | ) |  |  | 1.5 |  |  |  | (0.4 | ) |  |  | (0.1 | ) |  |  | (0.2 | ) |  |  | (0.1 | ) |
Effective tax rate |  |  | 5.9 |  | % |  | 24.0 |  | % |  | 20.0 |  | % |  | 18.3 |  | % |  | 18.6 |  | % |  | 19.0 |  | %
Deferred income taxes components | The Companies’ deferred income taxes consist of the following:
|  | Dominion Energy |  |  | Virginia Power |
At December 31, |  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deferred income taxes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total deferred income tax assets |  | $ | 3,285 |  |  | $ | 3,736 |  |  | $ | 1,204 |  |  | $ | 1,207 |
Total deferred income tax liabilities |  |  | 9,069 |  |  |  | 9,883 |  |  |  | 3,832 |  |  |  | 4,058 |
Total net deferred income tax liabilities |  | $ | 5,784 |  |  | $ | 6,147 |  |  | $ | 2,628 |  |  | $ | 2,851 |
Total deferred income taxes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Plant and equipment, primarily depreciation method and basis differences |  | $ | 5,824 |  |  | $ | 6,616 |  |  | $ | 3,227 |  |  | $ | 3,359 |
Excess deferred income taxes |  |  | (1,142 | ) |  |  | (1,306 | ) |  |  | (656 | ) |  |  | (672 | )
Unrecovered NND Project costs |  |  | 529 |  |  |  | 553 |  |  |  | — |  |  |  | — |
DESC rate refund |  |  | (140 | ) |  |  | (169 | ) |  |  | — |  |  |  | — |
Toshiba Settlement |  |  | (204 | ) |  |  | (219 | ) |  |  | — |  |  |  | — |
Nuclear decommissioning |  |  | 991 |  |  |  | 909 |  |  |  | 303 |  |  |  | 290 |
Deferred state income taxes |  |  | 702 |  |  |  | 863 |  |  |  | 305 |  |  |  | 302 |
Federal benefit of deferred state income taxes |  |  | (147 | ) |  |  | (184 | ) |  |  | (64 | ) |  |  | (63 | )
Deferred fuel, purchased energy and gas costs |  |  | (28 | ) |  |  | 30 |  |  |  | (34 | ) |  |  | 1 |
Pension benefits |  |  | 239 |  |  |  | 174 |  |  |  | (105 | ) |  |  | (153 | )
Other postretirement benefits |  |  | (14 | ) |  |  | (37 | ) |  |  | 76 |  |  |  | 62 |
Loss and credit carryforwards |  |  | (1,534 | ) |  |  | (1,832 | ) |  |  | (354 | ) |  |  | (280 | )
Valuation allowances |  |  | 155 |  |  |  | 161 |  |  |  | 6 |  |  |  | 5 |
Partnership basis differences |  |  | 593 |  |  |  | 823 |  |  |  | — |  |  |  | — |
Other |  |  | (40 | ) |  |  | (235 | ) |  |  | (76 | ) |  |  | — |
Total net deferred income tax liabilities |  | $ | 5,784 |  |  | $ | 6,147 |  |  | $ | 2,628 |  |  | $ | 2,851 |
Deferred Investment Tax Credits – Regulated Operations |  |  | 169 |  |  |  | 130 |  |  |  | 151 |  |  |  | 111 |
Total Deferred Taxes and Deferred Investment Tax Credits |  | $ | 5,953 |  |  | $ | 6,277 |  |  | $ | 2,779 |  |  | $ | 2,962 |
Summary of deductible loss and credit carryforwards | At December 31, 2020, Dominion Energy had the following deductible loss and credit carryforwards:
|  | Deductible |  |  | Deferred |  |  | Valuation |  |  | Expiration
|  | Amount |  |  | Tax Asset |  |  | Allowance |  |  | Period
(millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal losses |  | $ | 1,169 |  |  | $ | 246 |  |  | $ | — |  |  | 2037
Federal investment credits |  | — |  |  |  | 736 |  |  | — |  |  | 2036-2040
Federal production credits |  | — |  |  |  | 86 |  |  | — |  |  | 2036-2040
Other federal credits |  | — |  |  |  | 14 |  |  | — |  |  | 2036-2039
State losses |  |  | 3,661 |  |  |  | 198 |  |  |  | (61 | ) |  | 2020-2040
State minimum tax credits |  | — |  |  |  | 139 |  |  | — |  |  | No expiration
State investment and other credits |  | — |  |  |  | 142 |  |  |  | (94 | ) |  | 2020-2031
Total |  | $ | 4,830 |  |  | $ | 1,561 |  |  | $ | (155 | ) |  |
At December 31, 2020, Virginia Power had the following deductible loss and credit carryforwards:
|  | Deductible |  |  | Deferred |  |  | Valuation |  |  | Expiration
|  | Amount |  |  | Tax Asset |  |  | Allowance |  |  | Period
(millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal losses |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |
Federal investment credits |  | — |  |  |  | 294 |  |  | — |  |  | 2036-2040
Federal production and other credits |  | — |  |  |  | 51 |  |  | — |  |  | 2036-2040
State investment credits |  | — |  |  |  | 9 |  |  |  | (6 | ) |  | 2024
Total |  | $ | — |  |  | $ | 354 |  |  | $ | (6 | ) |  |
Reconciliation of changes in unrecognized tax benefits | A reconciliation of changes in the Companies’ unrecognized tax benefits follows:
|  | Dominion Energy |  |  | Virginia Power |
|  | 2020 |  |  | 2019 |  |  |  |  | 2018 |  |  | 2020 |  |  | 2019 |  |  | 2018 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance at January 1 |  | $ | 175 |  |  | $ | 44 |  |  |  |  | $ | 38 |  |  | $ | — |  |  | $ | 2 |  |  | $ | 4 |
Acquired unrecognized tax benefits |  |  | — |  |  |  | 129 |  |  | (1 | ) |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Increases-prior period positions |  |  | 18 |  |  |  | — |  |  |  |  |  | 10 |  |  |  | — |  |  |  | — |  |  |  | — |
Decreases-prior period positions |  |  | (19 | ) |  |  | — |  |  |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Increases-current period positions |  |  | 1 |  |  |  | 9 |  |  |  |  |  | 10 |  |  |  | — |  |  |  | — |  |  |  | — |
Settlements with tax authorities |  |  | — |  |  |  | (7 | ) |  |  |  |  | (6 | ) |  |  | — |  |  |  | (2 | ) |  |  | (1 | )
Expiration of statutes of limitations |  |  | (8 | ) |  |  | — |  |  |  |  |  | (8 | ) |  |  | — |  |  |  | — |  |  |  | (1 | )
Balance at December 31 |  | $ | 167 |  |  | $ | 175 |  |  |  |  | $ | 44 |  |  | $ | — |  |  | $ | — |  |  | $ | 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:
|  | Earliest
|  | Open Tax
State |  | Year
Pennsylvania(1) |  | 2012
Connecticut |  | 2017
Virginia(2) |  | 2017
West Virginia |  | 2017
New York(1) |  | 2015
Utah |  | 2017
South Carolina |  | 2013
| (1) | Considered a major state for entities presented in discontinued operations.
| (2) | Considered a major state for Virginia Power’s operations

X
- Definition Summary of Operating Loss Carryforwards and Tax Credit Carryforwards [Table Text Block] + References No definition available. + Details
Name: | d_SummaryOfOperatingLossCarryforwardsAndTaxCreditCarryforwardsTableTextBlock
Namespace Prefix: | d_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income tax examinations that an enterprise is currently subject to or that have been completed in the current period typically including a description of the examination, the jurisdiction conducting the examination, the tax year(s) under examination, the likelihood of an unfavorable settlement, the range of possible losses, the liability recorded, the increase or decrease in the liability from the prior period, and any penalties and interest that have been recorded. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=121610041&loc=d3e36027-109320 + Details
Name: | us-gaap_SummaryOfIncomeTaxExaminationsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration