Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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,	2021			2020			2019			2021			2020			2019
(millions)
Current:
Federal	$	(162	)	$	(314	)	$	(94	)	$	67		$	364		$	286
State		45			(81	)		58			(13	)		71			58
Total current expense (benefit)		(117	)		(395	)		(36	)		54			435			344
Deferred:
Federal
Taxes before operating loss carryforwards, investment tax credits and tax reform		151			12			168			145			(226	)		(128	)
Tax utilization expense of operating loss carryforwards		43			44			119			—			—			—
Investment tax credits		250			311			(51	)		(39	)		(27	)		(34	)
State		(19	)		72			(50	)		118			7			22
Total deferred expense (benefit)		425			439			186			224			(246	)		(140	)
Investment tax credit-gross deferral		121			42			62			121			42			62
Investment tax credit-amortization		(4	)		(3	)		(3	)		(2	)		(2	)		(2	)
Total income tax expense	$	425		$	83		$	209		$	397		$	229		$	264

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,	2021				2020				2019				2021				2020				2019
U.S. statutory rate		21.0		%		21.0		%		21.0		%		21.0		%		21.0		%		21.0		%
Increases (reductions) resulting from:
State taxes, net of federal benefit		2.6				2.0				1.5				4.6				4.8				4.5
Investment tax credits		(3.2	)			(9.6	)			(11.4	)			(3.0	)			(4.5	)			(2.9	)
Production tax credits		(0.4	)			(0.7	)			(2.1	)			(0.6	)			(0.7	)			(0.7	)
Valuation allowances		0.1				0.9				0.5				—				—				—
Reversal of excess deferred income     taxes		(3.2	)			(5.4	)			(3.2	)			(2.1	)			(2.2	)			(3.1	)
State legislative change		(0.7	)			—				—				(0.7	)			—				—
Write-off of regulatory assets		—				—				21.7				—				—				—
Change in tax status		—				(1.7	)			(5.5	)			—				—				—
AFUDC—equity		(0.4	)			(0.2	)			(0.2	)			(0.5	)			—				—
Changes in state deferred taxes     associated with assets held for sale		(0.3	)			(3.2	)			—				—				—				—
Absence of tax on noncontrolling     interest		(0.1	)			3.8				(0.2	)			—				—				—
Settlements of uncertain tax positions		(1.2	)			—				—				—				—				—
Employee stock ownership plan     deduction		(0.3	)			(0.9	)			(1.4	)			—				—				—
Nondeductible goodwill		—				—				1.8				—				—				—
Other, net		(0.2	)			(0.1	)			1.5				0.1				(0.1	)			(0.2	)
Effective tax rate		13.7		%		5.9		%		24.0		%		18.8		%		18.3		%		18.6		%

Deferred income taxes components

The Companies’ deferred income taxes consist of the following:

	Dominion Energy						Virginia Power
At December 31,	2021			2020			2021			2020
(millions)
Deferred income taxes:
Total deferred income tax assets	$	3,025		$	3,285		$	1,373		$	1,204
Total deferred income tax liabilities		9,397			9,069			4,286			3,832
Total net deferred income tax liabilities	$	6,372		$	5,784		$	2,913		$	2,628
Total deferred income taxes:
Plant and equipment, primarily depreciation method and basis differences	$	6,017		$	5,824		$	3,327		$	3,227
Excess deferred income taxes		(1,107	)		(1,142	)		(629	)		(656	)
Unrecovered NND Project costs		508			529			—			—
DESC rate refund		(113	)		(140	)		—			—
Toshiba Settlement		(189	)		(204	)		—			—
Nuclear decommissioning		1,114			991			324			303
Deferred state income taxes		857			702			420			305
Federal benefit of deferred state income taxes		(179	)		(147	)		(88	)		(64	)
Deferred fuel, purchased energy and gas costs		189			(28	)		126			(34	)
Pension benefits		362			239			(119	)		(105	)
Other postretirement benefits		73			(14	)		93			76
Loss and credit carryforwards		(1,571	)		(1,534	)		(537	)		(354	)
Valuation allowances		140			155			6			6
Partnership basis differences		398			593			—			—
Other		(127	)		(40	)		(10	)		(76	)
Total net deferred income tax liabilities	$	6,372		$	5,784		$	2,913		$	2,628
Deferred Investment Tax Credits – Regulated Operations		286			169			270			151
Total Deferred Taxes and Deferred Investment Tax Credits	$	6,658		$	5,953		$	3,183		$	2,779

Summary of deductible loss and credit carryforwards

At December 31, 2021, Dominion Energy had the following deductible loss and credit carryforwards:

	Deductible		Deferred		Valuation			Expiration
	Amount		Tax Asset		Allowance			Period
(millions)
Federal losses	$	965	$	203	$	—		2037
Federal investment credits	—			752	—			2036-2041
Federal production and other credits	—			63	—			2036-2041
State losses		4,583		243		(50	)	2022-2041
State minimum tax credits	—			214	—			No expiration
State investment and other credits	—			129		(90	)	2022-2031
Total	$	5,548	$	1,604	$	(140	)

At December 31, 2021, 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	—			467	—			2036-2041
Federal production and other credits	—			62	—			2036-2041
State investment and other credits	—			8		(6	)	2024
Total	$	—	$	537	$	(6	)

Reconciliation of changes in unrecognized tax benefits

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

	Dominion Energy											Virginia Power
	2021			2020			2019					2021		2020		2019
(millions)
Balance at January 1	$	167		$	175		$	44				$	—	$	—	$	2
Acquired unrecognized tax benefits		—			—			129		(1	)		—		—		—
Increases-prior period positions		48			18			—					—		—		—
Decreases-prior period positions		(59	)		(19	)		—					—		—		—
Increases-current period positions		2			1			9					—		—		—
Settlements with tax authorities		(26	)		—			(7	)				—		—		(2	)
Expiration of statutes of limitations		(4	)		(8	)		—					—		—		—
Balance at December 31	$	128		$	167		$	175				$	-	$	—	$	-

(1) Acquired unrecognized tax benefits reflect $106 million plus increases in prior period positions of $76 million and decreases in prior period positions of $53 million that were recorded through purchase accounting.

Earliest tax year remaining

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

	Earliest
	Open Tax
State	Year
Pennsylvania(1)	2012
Connecticut	2018
Virginia(2)	2018
Utah	2018
South Carolina	2018

(1) Considered a major state for entities presented in discontinued operations.

(2) Considered a major state for Virginia Power’s operations