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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
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, |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2022 |  |  | 2021 |  |  | 2020 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 7 |  |  | $ | (162 | ) |  | $ | (314 | ) |  | $ | 17 |  |  | $ | 67 |  |  | $ | 364 |
State |  |  | 46 |  |  |  | 45 |  |  |  | (81 | ) |  |  | (17 | ) |  |  | (13 | ) |  |  | 71 |
Total current expense (benefit) |  |  | 53 |  |  |  | (117 | ) |  |  | (395 | ) |  |  | — |  |  |  | 54 |  |  |  | 435 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Taxes before operating loss carryforwards and investment tax credits |  |  | 62 |  |  |  | 151 |  |  |  | 12 |  |  |  | 212 |  |  |  | 145 |  |  |  | (226 | )
Tax utilization expense of operating loss carryforwards |  |  | 36 |  |  |  | 43 |  |  |  | 44 |  |  |  | — |  |  |  | — |  |  |  | — |
Investment tax credits |  |  | (129 | ) |  |  | 250 |  |  |  | 311 |  |  |  | (148 | ) |  |  | (39 | ) |  |  | (27 | )
State |  |  | 32 |  |  |  | (19 | ) |  |  | 72 |  |  |  | 112 |  |  |  | 118 |  |  |  | 7 |
Total deferred expense (benefit) |  |  | 1 |  |  |  | 425 |  |  |  | 439 |  |  |  | 176 |  |  |  | 224 |  |  |  | (246 | )
Investment tax credit-gross deferral |  |  | 18 |  |  |  | 121 |  |  |  | 42 |  |  |  | 18 |  |  |  | 121 |  |  |  | 42 |
Investment tax credit-amortization |  |  | (4 | ) |  |  | (4 | ) |  |  | (3 | ) |  |  | (3 | ) |  |  | (2 | ) |  |  | (2 | )
Total income tax expense |  | $ | 68 |  |  | $ | 425 |  |  | $ | 83 |  |  | $ | 191 |  |  | $ | 397 |  |  | $ | 229 |
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, |  | 2022 |  |  | 2021 |  |  | 2020 |  |  | 2022 |  |  | 2021 |  |  | 2020 |  |
U.S. statutory rate |  |  | 21.0 |  | % |  | 21.0 |  | % |  | 21.0 |  | % |  | 21.0 |  | % |  | 21.0 |  | % |  | 21.0 |  | %
Increases (reductions) resulting from: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Recognition of taxes - sale of subsidiary stock |  |  | 8.7 |  |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |  |  |
Recognition of taxes - privatization intercompany gain |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2.4 |  |  |  | — |  |  |  | — |  |
State taxes, net of federal benefit |  |  | 3.9 |  |  |  | 2.6 |  |  |  | 2.0 |  |  |  | 4.6 |  |  |  | 4.6 |  |  |  | 4.8 |  |
Investment tax credits |  |  | (12.7 | ) |  |  | (3.2 | ) |  |  | (9.6 | ) |  |  | (9.1 | ) |  |  | (3.0 | ) |  |  | (4.5 | ) |
Production tax credits |  |  | (1.4 | ) |  |  | (0.4 | ) |  |  | (0.7 | ) |  |  | (1.0 | ) |  |  | (0.6 | ) |  |  | (0.7 | ) |
Valuation allowances |  |  | — |  |  |  | 0.1 |  |  |  | 0.9 |  |  |  | — |  |  |  | — |  |  |  | — |  |
Reversal of excess deferred income taxes |  |  | (11.5 | ) |  |  | (3.2 | ) |  |  | (5.4 | ) |  |  | (3.8 | ) |  |  | (2.1 | ) |  |  | (2.2 | ) |
State legislative change |  |  | (0.2 | ) |  |  | (0.7 | ) |  |  | — |  |  |  | — |  |  |  | (0.7 | ) |  |  | — |  |
Change in tax status |  |  | — |  |  |  | — |  |  |  | (1.7 | ) |  |  | — |  |  |  | — |  |  |  | — |  |
AFUDC—equity |  |  | (0.7 | ) |  |  | (0.4 | ) |  |  | (0.2 | ) |  |  | (0.4 | ) |  |  | (0.5 | ) |  |  | — |  |
Changes in state deferred taxes associated with assets held for sale |  |  | 0.5 |  |  |  | (0.3 | ) |  |  | (3.2 | ) |  |  |  |  |  |  |  |  |  |
Absence of tax on noncontrolling interest |  |  | — |  |  |  | (0.1 | ) |  |  | 3.8 |  |  |  |  |  |  |  |  |  |  |
Settlements of uncertain tax positions |  |  | — |  |  |  | (1.2 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |
Employee stock ownership plan deduction |  |  | (0.8 | ) |  |  | (0.3 | ) |  |  | (0.9 | ) |  |  |  |  |  |  |  |  |  |
Other, net |  |  | (0.3 | ) |  |  | (0.2 | ) |  |  | (0.1 | ) |  |  | (0.1 | ) |  |  | 0.1 |  |  |  | (0.1 | ) |
Effective tax rate |  |  | 6.5 |  | % |  | 13.7 |  | % |  | 5.9 |  | % |  | 13.6 |  | % |  | 18.8 |  | % |  | 18.3 |  | %
Deferred income taxes components | The Companies’ deferred income taxes consist of the following:
|  | Dominion Energy |  |  | Virginia Power |
At December 31, |  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
(millions) |  |  |  |  |  |  |  |  |  |  |  |
Deferred income taxes: |  |  |  |  |  |  |  |  |  |  |  |
Total deferred income tax assets |  | $ | 2,869 |  |  | $ | 3,025 |  |  | $ | 1,535 |  |  | $ | 1,373 |
Total deferred income tax liabilities |  |  | 9,267 |  |  |  | 9,397 |  |  |  | 4,701 |  |  |  | 4,286 |
Total net deferred income tax liabilities |  | $ | 6,398 |  |  | $ | 6,372 |  |  | $ | 3,166 |  |  | $ | 2,913 |
Total deferred income taxes: |  |  |  |  |  |  |  |  |  |  |  |
Plant and equipment, primarily depreciation method and basis differences |  | $ | 5,545 |  |  | $ | 6,017 |  |  | $ | 3,355 |  |  | $ | 3,327 |
Excess deferred income taxes |  |  | (1,060 | ) |  |  | (1,107 | ) |  |  | (616 | ) |  |  | (629 | )
Unrecovered NND Project costs |  |  | 479 |  |  |  | 508 |  |  |  |  |  |  |
DESC rate refund |  |  | (89 | ) |  |  | (113 | ) |  |  |  |  |  |
Toshiba Settlement |  |  | (162 | ) |  |  | (189 | ) |  |  |  |  |  |
Nuclear decommissioning |  |  | 1,001 |  |  |  | 1,114 |  |  |  | 311 |  |  |  | 324 |
Deferred state income taxes |  |  | 892 |  |  |  | 857 |  |  |  | 566 |  |  |  | 420 |
Federal benefit of deferred state income taxes |  |  | (199 | ) |  |  | (179 | ) |  |  | (119 | ) |  |  | (88 | )
Deferred fuel, purchased energy and gas costs |  |  | 579 |  |  |  | 189 |  |  |  | 403 |  |  |  | 126 |
Pension benefits |  |  | 414 |  |  |  | 362 |  |  |  | (105 | ) |  |  | (119 | )
Other postretirement benefits |  |  | 73 |  |  |  | 73 |  |  |  | 111 |  |  |  | 93 |
Loss and credit carryforwards |  |  | (1,790 | ) |  |  | (1,571 | ) |  |  | (751 | ) |  |  | (537 | )
Valuation allowances |  |  | 138 |  |  |  | 140 |  |  |  | 7 |  |  |  | 6 |
Partnership basis differences |  |  | 470 |  |  |  | 398 |  |  |  |  |  |  |
Other |  |  | 107 |  |  |  | (127 | ) |  |  | 4 |  |  |  | (10 | )
Total net deferred income tax liabilities |  | $ | 6,398 |  |  | $ | 6,372 |  |  | $ | 3,166 |  |  | $ | 2,913 |
Deferred Investment Tax Credits – Regulated Operations |  |  | 300 |  |  |  | 286 |  |  |  | 286 |  |  |  | 270 |
Total Deferred Taxes and Deferred Investment Tax Credits |  | $ | 6,698 |  |  | $ | 6,658 |  |  | $ | 3,452 |  |  | $ | 3,183 |
Summary of deductible loss and credit carryforwards | At December 31, 2022, Dominion Energy had the following deductible loss and credit carryforwards:
|  | Deductible |  |  | Deferred |  |  | Valuation |  |  | Expiration
|  | Amount |  |  | Tax Asset |  |  | Allowance |  |  | Period
(millions) |  |  |  |  |  |  |  |  |  |  |
Federal losses |  | $ | 794 |  |  | $ | 167 |  |  | $ | — |  |  | 2037
Federal investment credits |  | — |  |  |  | 874 |  |  | — |  |  | 2036-2042
Federal production and other credits |  | — |  |  |  | 84 |  |  | — |  |  | 2036-2042
State losses |  |  | 5,711 |  |  |  | 306 |  |  |  | (51 | ) |  | 2023-2042
State minimum tax credits |  | — |  |  |  | 271 |  |  | — |  |  | No expiration
State investment and other credits |  | — |  |  |  | 128 |  |  |  | (87 | ) |  | 2023-2032
Total |  | $ | 6,505 |  |  | $ | 1,830 |  |  | $ | (138 | ) |  |
At December 31, 2022, 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 |  | — |  |  |  | 631 |  |  | — |  |  | 2036-2042
Federal production and other credits |  | — |  |  |  | 80 |  |  | — |  |  | 2036-2042
State losses |  |  | 513 |  |  |  | 31 |  |  | — |  |  | 2042
State investment and other credits |  | — |  |  |  | 9 |  |  |  | (7 | ) |  | 2024
Total |  | $ | 513 |  |  | $ | 751 |  |  | $ | (7 | ) |  |
Reconciliation of changes in unrecognized tax benefits | A reconciliation of changes in Dominion Energy’s unrecognized tax benefits follows. Virginia Power does no t have any unrecognized tax benefits in the periods presented:
|  | Dominion Energy |  |
|  | 2022 |  |  | 2021 |  |  | 2020 |  |
(millions) |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 128 |  |  | $ | 167 |  |  | $ | 175 |  |
Increases-prior period positions |  |  | 8 |  |  |  | 48 |  |  |  | 18 |  |
Decreases-prior period positions |  |  | (8 | ) |  |  | (59 | ) |  |  | (19 | ) |
Increases-current period positions |  |  | 2 |  |  |  | 2 |  |  |  | 1 |  |
Settlements with tax authorities |  |  | (3 | ) |  |  | (26 | ) |  |  | — |  |
Expiration of statutes of limitations |  |  | (10 | ) |  |  | (4 | ) |  |  | (8 | ) |
Ending balance |  | $ | 117 |  |  | $ | 128 |  |  | $ | 167 |  |
Earliest tax year remaining | For each of the major states in which Dominion Energy operates or previously operated, the earliest tax year remaining open for examination is as follows:
State |  | Earliest Open Tax Year
Pennsylvania(1) |  | 2012
Connecticut |  | 2019
Virginia(2) |  | 2019
Utah |  | 2019
South Carolina |  | 2019
(1) Considered a major state for entities presented in discontinued operations. (2) Considered a major state for Virginia Power’s operations.

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