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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes charged to income for the years ended December 31, 2020, 2019 and 2018 consisted of the following:

(in thousands)			2020						2019						2018
Current
Federal Income Taxes			$	4,881					$	5,156					$	4,960
State Income Taxes			2,415						1,333						1,395
Deferred
Federal Income Taxes			11,450						8,859						8,065
State Income Taxes			3,751						3,167						4,410
Tax Credits
Production Tax Credits			(1,250)						—						(3,111)
North Dakota Wind Tax Credit Amortization, Net of Federal Taxes			(1,033)						(1,033)						(1,033)
Investment Tax Credit Amortization			(8)						(41)						(98)
Total			$	20,206					$	17,441					$	14,588

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of the statutory federal income tax rate to our effective tax rate for each of the years ended December 31, 2020, 2019 and 2018 is as follows:

			2020						2019						2018
Federal Statutory Rate			21.0		%				21.0		%				21.0		%
Increases (Decreases) in Tax from:
State Taxes on Income, Net of Federal Tax			4.0						3.4						5.3
Differences Reversing in Excess of Federal Rates			(3.6)						(3.2)						(3.6)
Production Tax Credits (PTCs)			(1.1)						—						(3.2)
North Dakota Wind Tax Credit Amortization, Net of Federal Taxes			(0.9)						(1.0)						(1.1)
Allowance for Equity Funds Used During Construction			(0.7)						(0.5)						(0.4)
Corporate-Owned Life Insurance			(0.6)						(0.7)						—
Excess Tax Deduction on Stock Awards			(0.4)						(0.7)						(0.7)
Other, Net			(0.3)						(1.6)						(2.3)
Effective Tax Rate			17.4		%				16.7		%				15.0		%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities were composed of the following on December 31, 2020 and 2019:

(in thousands)			2020						2019
Deferred Tax Assets
Benefit Liabilities			$	41,292					$	38,130
Retirement Benefits Liabilities			40,650						36,206
Tax Credit Carryforward			35,132						48,910
Regulatory Tax Liability			33,124						35,700
Cost of Removal			25,920						25,604
Differences Related to Property			7,486						6,979
Net Operating Loss Carryforward			1,379						1,475
Other			3,423						6,077
Valuation Allowance			(800)						(800)
Total Deferred Tax Assets			$	187,606					$	198,281
Deferred Tax Liabilities
Differences Related to Property			$	(271,064)					$	(268,495)
Retirement Benefits Regulatory Asset			(40,650)						(36,206)
Excess Tax Over Book Pension			(18,696)						(17,556)
Other			(10,572)						(7,965)
Total Deferred Tax Liabilities			$	(340,982)					$	(330,222)
Deferred Income Taxes			$	(153,376)					$	(131,941)

Schedule of Expiration of Operating Loss Carryforwards and Tax Credit Carryforwards

Schedule of expiration of tax credits and tax net operating losses available as of December 31, 2020:

(in thousands)			Amount						2022-2032						2033-2038						2039-2043
Federal Tax Credits			$	10,440					$	—					$	7,896					$	2,544
State Net Operating Losses			1,729						1,729						—						—
State Tax Credits			30,509						—						1,002						29,507

Summary of Income Tax Contingencies

The following table summarizes the activity for unrecognized tax benefits for the years ended December 31, 2020, 2019 and 2018:

(in thousands)			2020						2019						2018
Balance on January 1			$	1,488					$	1,282					$	684
Increases (decreases) for tax positions taken during a prior period			(178)						37						6
Increases for tax positions taken during the current period			175						339						778
Decreases due to settlements with taxing authorities			(575)						—						—
Decreases as a result of a lapse of applicable statutes of limitations			(139)						(170)						(186)
Balance on December 31			$	771					$	1,488					$	1,282

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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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