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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax (Expense) Benefit

Income tax (expense) benefit from continuing operations for the years ended December 31 was:

	2024			2023			2022
	(in millions)
Current:
Federal	$	16.5		$	0.8		$	0.5
State		(0.8	)		(1.0	)		(0.1	)
Current income tax benefit (expense)		15.7			(0.2	)		0.4
Deferred:
Federal		(47.2	)		(30.9	)		(23.2	)
State		(4.8	)		5.5			(2.4	)
Deferred income tax (expense)		(52.0	)		(25.4	)		(25.6	)
Income tax (expense)	$	(36.3	)	$	(25.6	)	$	(25.2	)

Schedule of Effective Income Tax Rate Reconciliation

Effective Tax Rates

The effective tax rate differs from the federal statutory rate for the years ended December 31, as follows:

	2024			2023			2022
Federal statutory rate		21.0	%		21.0	%		21.0	%
State income tax (net of federal tax effect) (a)		1.3			(0.8	)		0.5
Non-controlling interest (b)		(0.7	)		(1.0	)		(0.9	)
Tax credits		(5.6	)		(6.2	)		(7.7	)
Flow-through adjustments (c)		(2.2	)		(1.7	)		(1.4	)
Amortization of excess deferred income taxes (d)		(2.4	)		(3.0	)		(2.5	)
Other		(0.1	)		0.2			(0.5	)
Effective Tax Rate		11.3	%		8.5	%		8.5	%

(a)For the year ended December 31, 2023, we recognized an $8.2 million tax benefit from a Nebraska income tax rate decrease.

(b)The effective tax rate reflects the income attributable to the non-controlling interest in Black Hills Colorado IPP for which a tax provision was not recorded.

(c)Flow-through adjustments related primarily to accounting method changes for tax purposes that allow us to take a current tax deduction for repair costs and certain indirect costs. We recorded a deferred income tax liability in recognition of the temporary difference created between book and tax treatment and flowed the tax benefit through to tax expense. A regulatory asset was established to reflect the recovery of future increases in taxes payable from customers as the temporary differences reverse. As a result of this regulatory treatment, we continue to record tax benefits consistent with the flow-through method.

(d)Primarily TCJA - see Note 2 for additional information.

Schedule of Deferred Tax Assets and Liabilities

The temporary differences, which gave rise to the net deferred tax liability, for the years ended December 31 were as follows:

	2024			2023
	(in millions)
Deferred tax assets:
Regulatory liabilities	$	70.9		$	74.0
State tax credits		8.4			22.8
Federal NOL		114.9			146.6
State NOL		12.7			16.5
Partnership		11.6			12.2
Credit Carryovers		110.5			110.1
Other deferred tax assets		35.4			33.7
Less: Valuation allowance		(1.3	)		(15.4	)
Total deferred tax assets		363.1			400.5
Deferred tax liabilities:
Accelerated depreciation, amortization, and other property-related differences		(729.2	)		(686.2	)
Regulatory assets		(49.5	)		(65.6	)
Goodwill		(75.9	)		(67.8	)
State deferred tax liability		(88.7	)		(84.5	)
Other deferred tax liabilities		(44.9	)		(44.4	)
Total deferred tax liabilities		(988.2	)		(948.5	)
Net deferred tax liability	$	(625.1	)	$	(548.0	)

Summary of Operating Loss and Tax Credit Carryforwards

At December 31, 2024, we have federal NOL and state NOL and tax credit carryforwards that will expire at various dates as follows:

	Amounts			Expiration Dates
	(in millions)
Federal NOL Carryforward	$	547.2		No expiration
Federal Tax Credit Carryforward	$	110.5		2030-2044
State NOL Carryforward (a)	$	242.6		2025-2042
State Tax Credit Carryforward	$	8.4		2025-2038

(a)The carryforward balance is reflected on the basis of apportioned tax losses to jurisdictions imposing state income taxes.

Reconciliation of Unrecognized Tax Benefits

The following table reconciles the total amounts of unrecognized tax benefits, without interest, at the beginning and end of the period included in Other deferred credits and other liabilities on the accompanying Consolidated Balance Sheets:

Changes in Uncertain Tax Positions:	2024			2023			2022
	(in millions)
Beginning balance	$	13.7		$	11.9		$	10.6
Additions for prior year tax positions		0.6			—			-
Reductions for prior year tax positions		(8.1	)		(0.3	)		(0.8	)
Additions for current year tax positions		1.6			2.1			2.1
Ending balance	$	7.8		$	13.7		$	11.9

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