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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Expense | The provision for income taxes charged to income for the years ended December 31, 2022, 2021 and 2020 consisted of the following:
(in thousands) | 2022 |  | 2021 |  | 2020
Current |  |  |  |  |
Federal Income Taxes | $ | 31,949 |  |  | $ | 6,806 |  |  | $ | 3,631 |
State Income Taxes | 9,568 |  |  | 939 |  |  | 2,415 |
Deferred |  |  |  |  |
Federal Income Taxes | 22,480 |  |  | 18,180 |  |  | 11,450 |
State Income Taxes | 9,943 |  |  | 10,716 |  |  | 3,751 |
Tax Credits |  |  |  |  |
North Dakota Wind Tax Credit Amortization, Net of Federal Tax | (586) |  |  | (586) |  |  | (1,033) |
Investment Tax Credit Amortization | (3) |  |  | (3) |  |  | (8) |
Total | $ | 73,351 |  |  | $ | 36,052 |  |  | $ | 20,206 |
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, 2022, 2021 and 2020 is as follows:
| 2022 |  | 2021 |  | 2020
Income Taxes at Federal Statutory Rate | $ | 75,082 |  | 21.0 | % |  | $ | 44,692 |  | 21.0 | % |  | $ | 24,372 |  | 21.0 | %
Increases (Decreases) in Tax from: |  |  |  |  |  |  |  |
State Taxes on Income, Net of Federal Tax | 15,049 |  | 4.2 |  |  | 9,962 |  | 4.7 |  |  | 4,597 |  | 4.0 |
Production Tax Credits (PTCs) | (14,985) |  | (4.2) |  |  | (12,503) |  | (5.9) |  |  | (1,250) |  | (1.1) |
Amortization of Excess Deferred Income Taxes | (1,625) |  | (0.5) |  |  | (4,262) |  | (2.0) |  |  | (4,167) |  | (3.6) |
North Dakota Wind Tax Credit Amortization, Net of Federal Tax | (586) |  | (0.2) |  |  | (586) |  | (0.3) |  |  | (1,033) |  | (0.9) |
Allowance for Equity Funds Used During Construction | (440) |  | (0.1) |  |  | (214) |  | (0.1) |  |  | (796) |  | (0.7) |
Other, Net | 856 |  | 0.3 |  |  | (1,037) |  | (0.5) |  |  | (1,517) |  | (1.3) |
Income Taxes at Effective Tax Rate | $ | 73,351 |  | 20.5 | % |  | $ | 36,052 |  | 16.9 | % |  | $ | 20,206 |  | 17.4 | %
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities were composed of the following on December 31, 2022 and 2021:
(in thousands) | 2022 |  | 2021
Deferred Tax Assets |  |  |
Employee Benefits | $ | 39,216 |  |  | $ | 41,842 |
Regulatory Liabilities | 57,353 |  |  | 75,293 |
Tax Credit Carryforwards, net of federal impact | 20,209 |  |  | 27,965 |
Cost of Removal | 37,360 |  |  | 26,512 |
Net Operating Loss Carryforward, net of federal impact | 1,853 |  |  | 1,323 |
Other | 12,107 |  |  | 11,067 |
Total Deferred Tax Assets | 168,098 |  |  | 184,002 |
Deferred Tax Liabilities |  |  |
Differences Related to Property | (334,201) |  |  | (297,981) |
Retirement Benefits Regulatory Asset | (22,789) |  |  | (40,766) |
Pension Expense | (24,269) |  |  | (24,578) |
Other | (8,141) |  |  | (8,945) |
Total Deferred Tax Liabilities | (389,400) |  |  | (372,270) |
Deferred Income Taxes | $ | (221,302) |  |  | $ | (188,268) |
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, 2022 and the respective periods of expiration:
(in thousands) | Amount |  | 2023-2029 |  | 2030-2037 |  | 2038-2043
State Net Operating Losses | $ | 2,348 |  |  | $ | — |  |  | $ | 2,348 |  |  | $ | — |
State Tax Credits | 25,578 |  |  | — |  |  | — |  |  | 25,578 |
Summary of Income Tax Contingencies | The following table summarizes the activity for unrecognized tax benefits for the years ended December 31, 2022, 2021 and 2020:
(in thousands) | 2022 |  | 2021 |  | 2020
Balance on January 1 | $ | 827 |  |  | $ | 771 |  |  | $ | 1,488 |
Increases (decreases) for tax positions taken during a prior period | 44 |  |  | 11 |  |  | (178) |
Increases for tax positions taken during the current period | 260 |  |  | 189 |  |  | 175 |
Decreases due to settlements with taxing authorities | — |  |  | — |  |  | (575) |
Decreases as a result of a lapse of applicable statutes of limitations | (208) |  |  | (144) |  |  | (139) |
Balance on December 31 | $ | 923 |  |  | $ | 827 |  |  | $ | 771 |

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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 https://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 https://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 https://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
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