Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

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,	2024			2023			2022			2024			2023			2022
(millions)
Current:
Federal	$	(235	)	$	(385	)	$	(76	)	$	(23	)	$	(116	)	$	17
State		32			(99	)		27			67			6			(17	)
Total current expense (benefit)		(203	)		(484	)		(49	)		44			(110	)		—
Deferred:
Federal
Taxes before operating loss    carryforwards and investment tax credits		446			758			55			325			406			215
Tax utilization expense of operating    loss carryforwards		40			45			35			—			—			—
State		60			277			59			60			107			108
Total deferred expense		546			1,080			149			385			513			323
Investment tax credits		(35	)		(28	)		(41	)		(21	)		(14	)		(29	)
Total income tax expense	$	308		$	568		$	59		$	408		$	389		$	294

In 2024, Dominion Energy’s current income taxes reflect a benefit from continuing operations as the income tax expense associated with the East Ohio, PSNC and Questar Gas Transactions, is reflected in discontinued operations. Dominion Energy’s income tax expense from continuing operations reflects the utilization of tax credit carryforwards to offset a portion of the federal tax on the gains from the East Ohio, PSNC and Questar Gas Transactions, presented in discontinued operations.

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,	2024				2023				2022				2024				2023				2022
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		—				—				28.0
Recognition of taxes - privatization    intercompany gain														—				—				2.4
State taxes, net of federal benefit		3.6				3.9				15.9				4.5				4.7				4.6
Investment tax credits		(1.6	)			(1.0	)			(12.6	)			(0.9	)			(0.8	)			(2.0	)
Production tax credits		(4.8	)			(0.6	)			(4.5	)			(4.5	)			(0.8	)			(1.0	)
Reversal of excess deferred income     taxes		(3.1	)			(2.6	)			(25.2	)			(2.0	)			(2.6	)			(3.8	)
State legislative change		—				(0.1	)			(0.1	)			—				—				—
Changes in state deferred taxes     associated with assets held for sale		—				1.1				0.9
AFUDC—equity		(0.8	)			—				(1.9	)			(0.7	)			—				(0.4	)
Settlements of uncertain tax positions		(0.7	)			(0.4	)			—				—				—				—
Employee stock ownership plan     deduction		(0.3	)			(0.3	)			(2.5	)
Other, net		0.8				(0.1	)			(0.9	)			0.6				(0.4	)			0.1
Effective tax rate		14.1		%		20.9		%		18.1		%		18.0		%		21.1		%		20.9		%

The IRA created a nuclear production tax credit for electricity produced and sold beginning in 2024. Dominion Energy’s and Virginia Power’s 2024 effective tax rate includes an $89 million income tax benefit for the estimated net realizable value of the nuclear production tax credit. The ultimate nuclear production tax credit realized by the Companies could vary significantly based on pending final U.S. Treasury guidance.

Deferred income taxes components

The Companies’ deferred income taxes consist of the following:

	Dominion Energy						Virginia Power
At December 31,	2024			2023			2024			2023
(millions)
Deferred income taxes:
Total deferred income tax assets	$	1,854		$	2,150		$	1,082		$	1,281
Total deferred income tax liabilities		8,266			8,771			5,127			4,905
Total net deferred income tax liabilities	$	6,412		$	6,621		$	4,045		$	3,624
Total deferred income taxes:
Depreciation method and plant basis differences	$	4,878		$	4,588		$	3,765		$	3,588
Excess deferred income taxes		(790	)		(811	)		(587	)		(600	)
Unrecovered nuclear plant cost		420			450
DESC rate refund		(49	)		(67	)
Toshiba Settlement		(133	)		(147	)
Nuclear decommissioning		1,232			1,109			357			332
Deferred state income taxes		1,046			976			676			620
Federal benefit of deferred state income taxes		(230	)		(220	)		(142	)		(130	)
Deferred fuel, purchased energy and gas costs		189			299			178			267
Pension benefits		345			324			(116	)		(110	)
Other postretirement benefits		174			116			141			125
Loss and credit carryforwards		(680	)		(1,022	)		—			(309	)
Deferred unamortized investment tax credits		(250	)		(257	)		(159	)		(164	)
Valuation allowances		113			130			—			8
Partnership basis differences		(30	)		70			(98	)		—
Total deferred taxes on stock held for sale		—			814
Other		177			269			30			(3	)
Total net deferred income tax liabilities	$	6,412		$	6,621		$	4,045		$	3,624

Summary of deductible loss and credit carryforwards

At December 31, 2024, Dominion Energy had the following deductible loss and credit carryforwards:

	Deductible Amount		Deferred Tax Asset(1)		Valuation Allowance			Expiration Period
(millions)
Federal losses	$	391	$	82	$	—		2037
Federal production and other credits	—			22	—			2036-2038
State losses		2,245		115		(50	)	2025-2043
State minimum tax credits	—			378	—			No expiration
State investment and other credits	—			113		(63	)	2025-2033
Total	$	2,636	$	710	$	(113	)

(1)Includes $38 million of unrecognized tax benefits.

At December 31, 2024, Virginia Power had no deductible loss or credit carryforwards.

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
	2024			2023			2022
(millions)
Balance at January 1,	$	110		$	117		$	128
Prior period positions - increases		13			5			8
Prior period positions - decreases		(18	)		(12	)		(8	)
Current period positions - increases		—			—			2
Settlements with tax authorities		(13	)		—			(3	)
Expiration of statutes of limitations		(14	)		—			(10	)
Balance at December 31,	$	78		$	110		$	117

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	2021
Virginia(2)	2021
Utah(1)	2021
South Carolina	2021

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

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