Income Taxes (Tables)

12 Months Ended

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 not 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.