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INCOME TAXES | 9 Months Ended
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Sep. 30, 2025
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES The provision for income taxes differs from the amount of income tax determined by applying the applicable United States statutory federal income tax rate to income before income taxes as a result of the following:
|  | Three Months Ended September 30, 2025 |  | Three Months Ended September 30, 2024
(in millions) |  | Amount |  | Effective Tax Rate |  | Amount |  | Effective Tax Rate
Statutory federal income tax |  | $ | 64.3 |  |  | 21.0 | % |  | $ | 57.0 |  |  | 21.0 | %
State income taxes net of federal tax benefit |  | 18.5 |  |  | 6.0 | % |  | 16.9 |  |  | 6.2 | %
PTCs, net |  | (33.4) |  |  | (10.9) | % |  | (33.7) |  |  | (12.4) | %
Federal excess deferred tax amortization |  | (6.5) |  |  | (2.1) | % |  | (5.8) |  |  | (2.1) | %
AFUDC-Equity |  | (4.6) |  |  | (1.5) | % |  | (1.3) |  |  | (0.5) | %
Other, net |  | (3.9) |  |  | (1.2) | % |  | (1.5) |  |  | (0.5) | %
Total income tax expense |  | $ | 34.4 |  |  | 11.3 | % |  | $ | 31.6 |  |  | 11.7 | %
|  | Nine Months Ended September 30, 2025 |  | Nine Months Ended September 30, 2024
(in millions) |  | Amount |  | Effective Tax Rate |  | Amount |  | Effective Tax Rate
Statutory federal income tax |  | $ | 284.7 |  |  | 21.0 | % |  | $ | 259.2 |  |  | 21.0 | %
State income taxes net of federal tax benefit |  | 82.2 |  |  | 6.1 | % |  | 75.9 |  |  | 6.2 | %
PTCs, net |  | (194.0) |  |  | (14.3) | % |  | (143.9) |  |  | (11.7) | %
Federal excess deferred tax amortization |  | (32.0) |  |  | (2.4) | % |  | (26.1) |  |  | (2.1) | %
AFUDC-Equity |  | (15.8) |  |  | (1.2) | % |  | (9.4) |  |  | (0.8) | %
Other, net |  | (10.5) |  |  | (0.7) | % |  | 5.2 |  |  | 0.5 | %
Total income tax expense |  | $ | 114.6 |  |  | 8.5 | % |  | $ | 160.9 |  |  | 13.1 | %
The effective tax rates for the three and nine months ended September 30, 2025 and 2024, differ from the United States statutory federal income tax rate of 21%, primarily due to PTCs generated from ownership interests in renewable generation facilities in our non-utility energy infrastructure and Wisconsin segments and the impact of the deferred tax benefits associated with the Tax Legislation, as discussed in more detail below. These items were partially offset by state income taxes. The Tax Legislation required our regulated utilities to remeasure their deferred income taxes, and we began to amortize the resulting excess protected deferred income taxes beginning in 2018 in accordance with normalization requirements (see federal excess deferred tax amortization lines above). The IRA contains a tax credit transferability provision that allows us to sell PTCs and ITCs produced after December 31, 2022, to third parties. Under this transferability provision, we entered into agreements in October 2024, April 2025, and September 2025, to sell the majority of the PTCs we generate in 2025 and 2026 to third parties. In May 2025, we entered into an agreement to sell the majority of our remaining unsold PTCs we generated in 2024 to a third party. In September 2025, we entered into an agreement to sell substantially all of the ITCs we generate in 2025 to third parties. We elect to account for tax credits transferred under the scope of ASC 740. We include the discount from the sale of tax credits as a component of income tax expense. We also include any expected proceeds from the sale of tax credits in the evaluation of the realizability of deferred tax assets related to PTCs and ITCs. The sale of tax credits is presented in the operating activities section of the statements of cash flows consistent with the presentation of cash taxes paid. In April 2023, the IRS issued Revenue Procedure 2023-15, which provides a safe harbor method of accounting that taxpayers may use to determine whether expenses to repair, maintain, replace, or improve natural gas transmission and distribution property must be capitalized for tax purposes. We adopted the safe harbor method of accounting for certain of our utilities on our 2023 tax return and adopted the safe harbor method of accounting for our remaining utilities on our 2024 tax return, which increased our deferred tax liabilities.

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