Income Taxes

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				Virginia Power				Dominion Gas
Nine Months Ended September 30,	2014		2013		2014		2013		2014		2013
U.S. statutory rate	35.0	%	35.0	%	35.0	%	35.0	%	35.0	%	35.0	%
Increases (reductions) resulting from:
State taxes, net of federal benefit	2.7		2.4		3.9		2.8		3.7		4.1
Investment tax credits	(6.0	)	(1.3	)	—		—		—		—
Production tax credits	(1.1	)	(0.5	)	(0.6	)	(0.2	)	—		—
Valuation allowances	0.6		—		—		—		—		—
AFUDC - equity	0.1		(0.7	)	0.1		(1.1	)	—		(0.1	)
Other, net	(0.6	)	(0.9	)	0.7		(0.3	)	0.1		0.2
Effective tax rate	30.7	%	34.0	%	39.1	%	36.2	%	38.8	%	39.2	%

As of September 30, 2014, there have been no material changes in the Companies' unrecognized tax benefits or possible changes that could reasonably be expected to occur during the next twelve months. See Note 5 to the Consolidated Financial Statements in Dominion's and Virginia Power's Annual Report on Form 10-K for the year ended December 31, 2013 and Note 5 in Exhibit 99.11(b) to Dominion Gas' Current Report on Form 8-K dated June 26, 2014 for a discussion of these unrecognized tax benefits.