Income Taxes (Tables) (Dominion [Member])

12 Months Ended

Dec. 31, 2011

Dominion [Member]

Income tax expense for continuing operations including noncontrolling interests

Details of income tax expense for continuing operations including noncontrolling interests were as follows:

	Dominion(1)									Virginia Power(2)
Year Ended December 31,	2011			2010			2009			2011			2010			2009
(millions)
Current:
Federal	$	(11	)	$	891		$	952		$	(35	)	$	(78	)	$	465
State	—			308			129			79			10			91
Total current	(11		)	1,199			1,081			44			(68		)	556
Deferred:
Federal	695			764			(424		)	484			537			(339		)
State	63			96			(59		)	13			74			(69		)
Total deferred	758			860			(483		)	497			611			(408		)
Amortization of deferred investment tax credits	(2		)	(2		)	(2		)	(1		)	(1		)	(1		)
Total income tax expense	$	745		$	2,057		$	596		$	540		$	542		$	147

(1) In 2011, Dominion's federal income tax expense includes a $346 million benefit related to its current year operating loss that is expected to be used in future years, and state income tax expense reflects changes in the amount of income apportioned among states, higher tax credits, claims for refunds and previously unrecognized tax benefits due to the expiration of statues of limitations.

(2) In 2011, Virginia Power's federal income tax expense includes a $54 million benefit related to a portion of its current year operating loss that is expected to be used in future years. Also, in 2011 and 2010, Virginia Power's federal income tax expense reflects the amounts of current year operating losses realized through its participation in a tax sharing agreement with Dominion and its subsidiaries.

Effective income tax

For continuing operations including noncontrolling interests, the statutory U.S. federal income tax rate reconciles to Dominion's and Virginia Power's effective income tax rate as follows:

	Dominion						Virginia Power
Year Ended December 31,	2011		2010		2009		2011		2010		2009
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	1.6		5.0		2.4		4.4		3.8		2.8
Valuation allowances	0.2		0.1		(0.4	)	—		—		—
Investment and production tax credits	(0.6	)	(0.3	)	(1.5	)	—		—		(0.2	)
Amortization of investment tax credits	(0.1	)	—		(0.1	)	(0.1	)	(0.1	)	(0.2	)
AFUDC - equity	(0.6	)	(0.4	)	(1.0	)	(0.8	)	(1.1	)	(3.4	)
Employee stock ownership plan deduction	(0.7	)	(0.3	)	(0.8	)	—		—		—
Pension and other benefits	(0.1	)	—		(0.6	)	—		—		(0.6	)
Domestic production activities deduction	—		(0.4	)	(2.9	)	—		(0.3	)	(4.5	)
Goodwill-sale of U.S. Appalachian E&P business	—		0.9		—		—		—		—
Legislative change	—		1.1		0.4		—		1.1		—
Other, net	(0.4	)	0.1		1.3		1.2		0.5		0.4
Effective tax rate	34.3		40.8		31.8		39.7	%	38.9	%	29.3	%

The Companies deferred income taxes components

The Companies' deferred income taxes consist of the following:

	Dominion						Virginia Power
At December 31,	2011			2010			2011			2010
(millions)
Deferred income taxes:
Total deferred income tax assets	$	2,229		$	1,642		$	503		$	402
Total deferred income tax liabilities	7,424			6,233			3,759			3,139
Total net deferred income tax liabilities	$	5,195		$	4,591		$	3,256		$	2,737
Total deferred income taxes:
Plant and equipment, primarily depreciation method and basis differences	$	4,008		$	3,027		$	2,758		$	2,109
Nuclear decommissioning	913			749			374			343
Deferred state income taxes	493			446			243			228
Federal benefit of deferred state income taxes	(173		)	(156		)	(85		)	(80		)
Deferred fuel, purchased energy and gas costs	161			120			144			111
Pension benefits	396			521			8			26
Other postretirement benefits	(167		)	(186		)	(13		)	(14		)
Loss and credit carryforwards	(577		)	(181		)	(55		)	—
Reserve for rate proceedings	(54		)	(56		)	(54		)	(56		)
Partnership basis differences	274			265			—			—
Valuation allowances	96			68			—			—
Other	(175		)	(26		)	(64		)	70
Total net deferred income tax liabilities	$	5,195		$	4,591		$	3,256		$	2,737

Reconciliation of changes in the Companies unrecognized tax benefits

A reconciliation of changes in the Companies' unrecognized tax benefits follows:

	Dominion									Virginia Power
	2011			2010			2009			2011			2010			2009
(millions)
Balance at January 1	$	307		$	291		$	404		$	117		$	121		$	180
Increases-prior period positions	127			34			51			22			4			11
Decreases-prior period positions	(107		)	(59		)	(142		)	(46		)	(28		)	(71		)
Increases-current period positions	64			61			43			47			25			22
Decreases-current period positions	(21		)	—			—			(21		)	—			—
Prior period positions becoming otherwise deductible in current period	(12		)	(16		)	(36		)	(5		)	(5		)	(9		)
Settlements with tax authorities	—			—			(13		)	—			—			(9		)
Expiration of statutes of limitations	(11		)	(4		)	(16		)	—			—			(3		)
Balance at December 31	$	347		$	307		$	291		$	114		$	117		$	121

Earliest tax year remaining

For each of the major states in which Dominion operates, the earliest tax year remaining open for examination is as follows:

State	Earliest Open Tax Year
Pennsylvania	2008
Connecticut	2007
Massachusetts	2007
Virginia(1)	2008
West Virginia	2008

(1) Virginia is the only state considered major for Virginia Power's operations.