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Income Taxes (Tables)

12 Months Ended

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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