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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2021
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, 2021, 2020 and 2019 consisted of the following:
(in thousands) | 2021 |  | 2020 |  | 2019
Current |  |  |  |  |
Federal Income Taxes | $ | 6,806 |  |  | $ | 3,631 |  |  | $ | 5,156 |
State Income Taxes | 939 |  |  | 2,415 |  |  | 1,333 |
Deferred |  |  |  |  |
Federal Income Taxes | 18,180 |  |  | 11,450 |  |  | 8,859 |
State Income Taxes | 10,716 |  |  | 3,751 |  |  | 3,167 |
Tax Credits |  |  |  |  |
North Dakota Wind Tax Credit Amortization, Net of Federal Tax | (586) |  |  | (1,033) |  |  | (1,033) |
Investment Tax Credit Amortization | (3) |  |  | (8) |  |  | (41) |
Total | $ | 36,052 |  |  | $ | 20,206 |  |  | $ | 17,441 |
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, 2021, 2020 and 2019 is as follows:
| 2021 |  | 2020 |  | 2019
Federal Statutory Rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Increases (Decreases) in Tax from: |  |  |  |  |
State Taxes on Income, Net of Federal Tax | 4.7 |  |  | 4.0 |  |  | 3.4 |
Production Tax Credits (PTCs) | (5.9) |  |  | (1.1) |  |  | — |
Amortization of Excess Deferred Income Taxes | (2.0) |  |  | (3.6) |  |  | (3.2) |
North Dakota Wind Tax Credit Amortization, Net of Federal Tax | (0.3) |  |  | (0.9) |  |  | (1.0) |
Allowance for Equity Funds Used During Construction | (0.1) |  |  | (0.7) |  |  | (0.5) |
Other, Net | (0.5) |  |  | (1.3) |  |  | (3.0) |
Effective Tax Rate | 16.9 | % |  | 17.4 | % |  | 16.7 | %
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities were composed of the following on December 31, 2021 and 2020:
(in thousands) | 2021 |  | 2020
Deferred Tax Assets |  |  |
Benefit Liabilities | $ | 41,724 |  |  | $ | 41,292 |
Retirement Benefits Liabilities | 40,766 |  |  | 40,650 |
Tax Credit Carryforward | 32,420 |  |  | 35,132 |
Regulatory Tax Liability | 34,527 |  |  | 33,124 |
Cost of Removal | 26,512 |  |  | 25,920 |
Differences Related to Property | 10,251 |  |  | 7,486 |
Net Operating Loss Carryforward | 1,323 |  |  | 1,379 |
Other | 6,999 |  |  | 3,423 |
Valuation Allowance | — |  |  | (800) |
Total Deferred Tax Assets | $ | 194,522 |  |  | $ | 187,606 |
Deferred Tax Liabilities |  |  |
Differences Related to Property | $ | (307,542) |  |  | $ | (271,064) |
Retirement Benefits Regulatory Asset | (40,766) |  |  | (40,650) |
Excess Tax Over Book Pension | (24,578) |  |  | (18,696) |
Other | (9,904) |  |  | (10,572) |
Total Deferred Tax Liabilities | $ | (382,790) |  |  | $ | (340,982) |
Deferred Income Taxes | $ | (188,268) |  |  | $ | (153,376) |
Schedule of Expiration of Operating Loss Carryforwards and Tax Credit Carryforwards | The following is a schedule of tax credits and tax net operating losses available as of December 31, 2021 and the respective periods of expiration:
(in thousands) | Amount |  | 2022-2032 |  | 2033-2038 |  | 2039-2043
Federal Tax Credits | $ | 9,136 |  |  | $ | — |  |  | $ | — |  |  | $ | 9,136 |
State Net Operating Losses | 1,675 |  |  | 1,675 |  |  | — |  |  | — |
State Tax Credits | 29,318 |  |  | — |  |  | 39 |  |  | 29,279 |
Summary of Income Tax Contingencies | The following table summarizes the activity for unrecognized tax benefits for the years ended December 31, 2021, 2020 and 2019:
(in thousands) | 2021 |  | 2020 |  | 2019
Balance on January 1 | $ | 771 |  |  | $ | 1,488 |  |  | $ | 1,282 |
Increases (decreases) for tax positions taken during a prior period | 11 |  |  | (178) |  |  | 37 |
Increases for tax positions taken during the current period | 189 |  |  | 175 |  |  | 339 |
Decreases due to settlements with taxing authorities | — |  |  | (575) |  |  | — |
Decreases as a result of a lapse of applicable statutes of limitations | (144) |  |  | (139) |  |  | (170) |
Balance on December 31 | $ | 827 |  |  | $ | 771 |  |  | $ | 1,488 |

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- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
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- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
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