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Income Tax Expense (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Tax Expense

Income Tax Expense
Year Ended December 31			2023			2022			2021
Millions
Current Income Tax Expense (a)
Federal			$9.4			$1.2			—
State			0.9			6.1			—
Total Current Income Tax Expense			$10.3			$7.3			—
Deferred Income Tax Expense (Benefit)
Federal (b)			$(6.0)			$(32.8)			$(37.2)
State (c)			24.0			(5.2)			10.8
Investment Tax Credit Amortization			(0.4)			(0.5)			(0.5)
Total Deferred Income Tax Expense (Benefit)			$17.6			$(38.5)			$(26.9)
Total Income Tax Expense (Benefit)			$27.9			$(31.2)			$(26.9)

(a)For the years ended December 31, 2023 and 2022, the federal current tax expense was partially offset by production tax credits and NOLs. For the year ended December 31, 2021, the federal and state current tax expense was minimal due to NOLs.

(b)For the year ended December 31, 2023, the federal deferred income tax benefit was due to tax credits, partially offset by deferred partnership income. For the years ended December 31, 2022 and 2021, the federal deferred income tax benefit is primarily due to production tax credits.

(c)For the year ended December 31, 2022, the state impact includes the benefit of deferred repricing as a result of the New Energy acquisition.

Reconciliation of Taxes from Federal Statutory Rate to Total Income Tax Expense

Reconciliation of Taxes from Federal Statutory
Rate to Total Income Tax Expense
Year Ended December 31			2023			2022			2021
Millions
Income Before Non-Controlling Interest and Income Taxes			$206.8			$100.1			$110.9
Statutory Federal Income Tax Rate			21		%	21		%	21		%
Income Taxes Computed at Statutory Federal Rate			$43.4			$21.0			$23.3
Increase (Decrease) in Tax Due to:
State Income Taxes – Net of Federal Income Tax Benefit			19.7			8.6			8.6
Deferred Revaluation – Net of Federal Income Tax Benefit			—			(7.9)			—
Production Tax Credits (a)			(31.6)			(50.7)			(53.5)
Investment Tax Credits (a)			(5.8)			(4.1)			—
Regulatory Differences – Excess Deferred Tax Benefit			(9.9)			(9.1)			(9.5)
Non-Controlling Interest			13.3			11.2			6.3
AFUDC - Equity			(1.3)			(1.1)			(1.0)
Other			0.1			0.9			(1.1)
Total Income Tax Expense (Benefit)			$27.9			$(31.2)			$(26.9)

(a)For the year ended December 31, 2023, the credits are presented net of any estimated discount on the sale of certain credits.

Deferred Tax Assets and Liabilities

Deferred Income Tax Assets and Liabilities
As of December 31			2023			2022
Millions
Deferred Income Tax Assets
Employee Benefits and Compensation			$29.3			$46.4
Property-Related			58.1			61.9
NOL Carryforwards			13.0			16.7
Capital Loss Carryforwards			2.1			13.1
Tax Credit Carryforwards			557.4			548.7
Power Sales Agreements			9.0			13.7
Regulatory Liabilities			89.0			95.5
Other			8.7			28.1
Gross Deferred Income Tax Assets			766.6			824.1
Deferred Income Tax Asset Valuation Allowance			(58.0)			(60.2)
Total Deferred Income Tax Assets			$708.6			$763.9
Deferred Income Tax Liabilities
Deferred Gain			$7.9			$7.9
Property-Related			632.0			661.7
Regulatory Asset for Benefit Obligations			48.1			57.7
Unamortized Investment Tax Credits			29.6			30.0
Partnership Basis Differences			156.5			126.0
Fuel Adjustment Clause			1.9			10.7
Regulatory Assets			25.3			28.0
Total Deferred Income Tax Liabilities			$901.3			$922.0
Net Deferred Income Taxes (a)			$192.7			$158.1

(a)Recorded as a net Deferred Income Tax liability on the Consolidated Balance Sheet.

NOL and Tax Credit Carryforwards

NOL and Tax Credit Carryforwards
As of December 31			2023			2022
Millions
Federal Tax Credit Carryforwards			$480.4			$464.5
Federal Capital Loss Carryforwards (a)			—			$35.1
State NOL Carryforwards (a)			$280.9			$323.0
State Tax Credit Carryforwards (b)			$21.5			$24.5
State Capital Loss Carryforwards (a)			—			$83.2

(a)Pre-tax amounts; state NOL carryforwards net of a $10.5 million valuation allowance and state capital loss carryforwards net of a $58.7 million valuation allowance.

(b)Net of a $55.4 million valuation allowance as of December 31, 2023 ($59.6 million as of December 31, 2022).

Gross Unrecognized Income Tax Benefits

Gross Unrecognized Income Tax Benefits			2023			2022			2021
Millions
Balance at January 1			$1.3			$1.3			$1.4
Reductions for Tax Positions Related to Prior Years			(0.2)			—			(0.1)
Balance as of December 31			$1.1			$1.3			$1.3

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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