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	$	(76	)	$	(301	)	$	(388	)	$	17		$	67		$	364
State		27			13			(91	)		(17	)		(13	)		71
Total current expense (benefit)		(49	)		(288	)		(479	)		—			54			435
Deferred:
Federal
Taxes before operating loss    carryforwards and investment tax credits		(63	)		144			(16	)		212			145			(226	)
Tax utilization expense of operating    loss carryforwards		35			42			42			—			—			—
Investment tax credits		(129	)		250			311			(148	)		(39	)		(27	)
State		44			(26	)		44			112			118			7
Total deferred expense (benefit)		(113	)		410			381			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 (benefit)	$	(148	)	$	239		$	(59	)	$	191		$	397		$	229

In 2022, Dominion Energy’s current income taxes reflect a benefit from continuing operations as the income tax expense associated with the East Ohio, PSNC and Questar Gas Transactions and Cove Point operations is reflected in 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
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		(74.7	)			—				—
Recognition of taxes - privatization    intercompany gain		—				—				—				2.4				—				—
State taxes, net of federal benefit		(28.3	)			1.8				(0.4	)			4.6				4.6				4.8
Investment tax credits		108.9				(4.5	)			(18.6	)			(9.1	)			(3.0	)			(4.5	)
Production tax credits		12.0				(0.6	)			(1.3	)			(1.0	)			(0.6	)			(0.7	)
Valuation allowances		—				0.2				1.7				—				—				—
Reversal of excess deferred income     taxes		67.3				(2.8	)			(5.9	)			(3.8	)			(2.1	)			(2.2	)
State legislative change		0.3				(1.0	)			—				—				(0.7	)			—
Change in tax status		—				—				(3.3	)			—				—				—
AFUDC—equity		5.0				(0.5	)			(0.1	)			(0.4	)			(0.5	)			—
Changes in state deferred taxes     associated with assets held for sale		(4.1	)			—				(6.3	)
Absence of tax on noncontrolling     interest		—				(0.2	)			7.4
Settlements of uncertain tax positions		—				(1.7	)			—				—				—				—
Employee stock ownership plan     deduction		6.8				(0.4	)			(1.7	)
Other, net		5.7				(0.4	)			(0.7	)			(0.1	)			0.1				(0.1	)
Effective tax rate		119.9		%		10.9		%		(8.2	)	%		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	$	2,633		$	2,782		$	1,535		$	1,373
Total deferred income tax liabilities		7,730			7,961			4,701			4,286
Total net deferred income tax liabilities	$	5,097		$	5,179		$	3,166		$	2,913
Total deferred income taxes:
Plant and equipment, primarily depreciation method and basis differences	$	4,257		$	4,773		$	3,355		$	3,327
Excess deferred income taxes		(847	)		(884	)		(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		803			777			566			420
Federal benefit of deferred state income taxes		(164	)		(163	)		(119	)		(88	)
Deferred fuel, purchased energy and gas costs		509			154			403			126
Pension benefits		330			282			(105	)		(119	)
Other postretirement benefits		58			68			111			93
Loss and credit carryforwards		(1,782	)		(1,566	)		(751	)		(537	)
Valuation allowances		137			138			7			6
Partnership basis differences		466			390
Other		101			(109	)		4			(10	)
Total net deferred income tax liabilities	$	5,097		$	5,180		$	3,166		$	2,913
Deferred Investment Tax Credits – Regulated Operations		300			286			286			270
Total Deferred Taxes and Deferred Investment Tax Credits	$	5,397		$	5,466		$	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	$	778	$	163	$	—		2037
Federal investment credits	—			874	—			2036-2042
Federal production and other credits	—			82	—			2036-2042
State losses		5,665		305		(51	)	2023-2042
State minimum tax credits	—			271	—			No expiration
State investment and other credits	—			127		(86	)	2023-2032
Total	$	6,443	$	1,822	$	(137	)

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(1)	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.