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Income Taxes (Tables)

12 Months Ended

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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