Income Taxes

For continuing operations, including noncontrolling interests, the statutory United States federal income tax rate reconciles to the Companies' effective income tax rate as follows:



	Dominion				Virginia Power				Dominion Gas
Nine Months Ended September 30,	2016		2015		2016		2015		2016		2015
United States statutory rate	35.0	%	35.0	%	35.0	%	35.0	%	35.0	%	35.0	%
Increases (reductions) resulting from:
State taxes, net of federal benefit	3.7		4.0		3.9		4.2		0.8		4.1
Investment tax credits	(10.4	)	(3.5	)	—		—		—		—
Production tax credits	(0.8	)	(0.8	)	(0.5	)	(0.5	)	—		—
State legislative change	(0.8	)	(0.2	)	—		—		—		—
Other, net	(2.1	)	(0.7	)	(0.5	)	(0.2	)	0.4		0.4
Effective tax rate	24.6	%	33.8	%	37.9	%	38.5	%	36.2	%	39.5	%

In 2016, Dominion's effective tax rate reflects $23 million of previously unrecognized tax benefits resulting from a settlement with a tax authority ($12 million) and a legislative change ($11 million). The settlement is also reflected in Dominion Gas' 2016 effective tax rate. Otherwise, as of September 30, 2016, 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 the Companies' Annual Report on Form 10-K for the year ended December 31, 2015.