Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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,	2023			2022			2021			2023			2022			2021
(millions)
Current:
Federal	$	(385	)	$	(76	)	$	(301	)	$	(116	)	$	17		$	67
State		(99	)		27			13			6			(17	)		(13	)
Total current expense (benefit)		(484	)		(49	)		(288	)		(110	)		—			54
Deferred:
Federal
Taxes before operating loss    carryforwards and investment tax credits		760			95			558			406			215			294
Tax utilization expense of operating    loss carryforwards		45			35			42			—			—			—
State		282			73			(49	)		107			108			116
Total deferred expense		1,087			203			551			513			323			410
Investment tax credits		(28	)		(41	)		(444	)		(14	)		(29	)		(17	)
Total income tax expense (benefit)	$	575		$	113		$	(181	)	$	389		$	294		$	447

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
Twelve Months Ended December 31,	2023				2022				2021				2023				2022				2021
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		—				17.0				—
Recognition of taxes - privatization    intercompany gain														—				2.4				—
State taxes, net of federal benefit		4.1				11.3				1.1				4.7				4.6				4.6
Investment tax credits		(1.0	)			(7.7	)			(23.6	)			(0.8	)			(2.0	)			(0.8	)
Production tax credits		(0.6	)			(2.7	)			(0.7	)			(0.8	)			(1.0	)			(0.6	)
Valuation allowances		—				—				0.2				—				—				—
Reversal of excess deferred income     taxes		(2.6	)			(15.3	)			(3.3	)			(2.6	)			(3.8	)			(2.1	)
State legislative change		(0.1	)			(0.1	)			(1.1	)			—				—				(0.7	)
Changes in state deferred taxes     associated with assets held for sale		1.1				0.9				—
AFUDC—equity		—				(1.1	)			(0.6	)			—				(0.4	)			(0.5	)
Settlements of uncertain tax positions		(0.4	)			—				(2.0	)			—				—				—
Absence of tax on noncontrolling     interest		—				—				(0.2	)
Employee stock ownership plan     deduction		(0.3	)			(1.5	)			(0.5	)
Other, net		(0.2	)			(0.9	)			—				(0.4	)			0.1				0.3
Effective tax rate		21.0		%		20.9		%		(9.7	)	%		21.1		%		20.9		%		21.2		%

Deferred income taxes components

The Companies’ deferred income taxes consist of the following:

	Dominion Energy						Virginia Power
At December 31,	2023			2022			2023			2022
(millions)
Deferred income taxes:
Total deferred income tax assets	$	2,150		$	2,960		$	1,281		$	1,695
Total deferred income tax liabilities		8,761			7,981			4,905			4,760
Total net deferred income tax liabilities	$	6,611		$	5,021		$	3,624		$	3,065
Total deferred income taxes:
Depreciation method and plant basis differences	$	4,588		$	4,449		$	3,588		$	3,437
Excess deferred income taxes		(811	)		(847	)		(600	)		(616	)
Unrecovered nuclear plant cost		450			479
DESC rate refund		(67	)		(89	)
Toshiba Settlement		(147	)		(162	)
Nuclear decommissioning		1,109			1,001			332			311
Deferred state income taxes		975			786			620			544
Federal benefit of deferred state income taxes		(220	)		(160	)		(130	)		(114	)
Deferred fuel, purchased energy and gas costs		299			509			267			403
Pension benefits		324			330			(110	)		(105	)
Other postretirement benefits		116			58			125			111
Loss and credit carryforwards		(1,022	)		(1,782	)		(309	)		(751	)
Deferred unamortized investment tax credits		(257	)		(265	)		(164	)		(164	)
Valuation allowances		130			137			8			7
Partnership basis differences		70			466
Total deferred taxes on stock held for sale		804			—
Other		270			111			(3	)		2
Total net deferred income tax liabilities	$	6,611		$	5,021		$	3,624		$	3,065

Summary of deductible loss and credit carryforwards

At December 31, 2023, Dominion Energy had the following deductible loss and credit carryforwards:

	Deductible		Deferred		Valuation			Expiration
	Amount		Tax Asset		Allowance			Period
(millions)
Federal losses	$	576	$	121	$	—		2037
Federal investment credits	—			264	—			2041-2043
Federal production and other credits	—			91	—			2041-2043
State losses		2,678		131		(51	)	2024-2043
State minimum tax credits	—			327	—			No expiration
State investment and other credits	—			125		(79	)	2024-2033
Total	$	3,254	$	1,059	$	(130	)

At December 31, 2023, Virginia Power had the following deductible loss and credit carryforwards:

	Deductible		Deferred		Valuation			Expiration
	Amount		Tax Asset		Allowance			Period
(millions)
Federal investment credits	$	—	$	241	$	—		2041-2043
Federal production and other credits	—			58	—			2041-2043
State losses		3		—	—			2042
State investment and other credits	—			9		(8	)	2024
Total	$	3	$	308	$	(8	)

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
	2023			2022			2021
(millions)
Balance at January 1,	$	117		$	128		$	167
Prior period positions - increases		5			8			48
Prior period positions - decreases		(12	)		(8	)		(59	)
Current period positions - increases		—			2			2
Settlements with tax authorities		—			(3	)		(26	)
Expiration of statutes of limitations		—			(10	)		(4	)
Balance at December 31,	$	110		$	117		$	128

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	2020
Virginia(2)	2020
Utah(1)	2019
South Carolina	2020

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

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