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
Six Months Ended June 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	1.5		1.9		3.8		2.6		3.7		3.8
Investment and production tax credits	(5.9	)	(1.5	)	(0.6	)	—		—		—
Valuation allowances	1.1		—		—		—		—		—
Other, net	(0.4	)	(1.3	)	0.6		(1.2	)	0.1		0.2
Effective tax rate	31.3	%	34.1	%	38.8	%	36.4	%	38.8	%	39.0	%

In 2014, there have been no material changes in the Companies' unrecognized tax benefits or expectations regarding possible changes that could reasonably 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.