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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023, 2022 and 2021 consisted of the following:

(in thousands)			2023						2022						2021
Current
Federal Income Taxes			$	41,253					$	31,949					$	6,806
State Income Taxes			15,126						9,568						939
Deferred
Federal Income Taxes			9,832						22,480						18,180
State Income Taxes			3,676						9,943						10,716
Tax Credits
North Dakota Wind Tax Credit Amortization, Net of Federal Tax			(586)						(586)						(586)
Investment Tax Credit Amortization			(3)						(3)						(3)
Total			$	69,298					$	73,351					$	36,052

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, 2023, 2022 and 2021 is as follows:

			2023									2022									2021
Income Taxes at Federal Statutory Rate			$	76,332		21.0		%				$	75,082		21.0		%				$	44,692		21.0		%
Increases (Decreases) in Tax from:
State Taxes on Income, Net of Federal Tax			14,429			4.0						15,049			4.2						9,962			4.7
Production Tax Credits (PTCs)			(17,394)			(4.8)						(14,985)			(4.2)						(12,503)			(5.9)
Amortization of Excess Deferred Income Taxes			(2,205)			(0.6)						(1,625)			(0.5)						(4,262)			(2.0)
North Dakota Wind Tax Credit Amortization, Net of Federal Tax			(586)			(0.2)						(586)			(0.2)						(586)			(0.3)
Other, Net			(1,278)			(0.3)						416			0.2						(1,251)			(0.6)
Income Taxes at Effective Tax Rate			$	69,298		19.1		%				$	73,351		20.5		%				$	36,052		16.9		%

PTCs, North Dakota wind tax credits, and excess deferred income taxes related to the federal tax rate reduction in the 2017 Tax Cuts and Jobs Act are returned to customers as a reduction of the rates they are charged and result in a reduction of operating revenues.

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities were composed of the following on December 31, 2023 and 2022:

(in thousands)			2023						2022
Deferred Tax Assets
Employee Benefits			$	39,959					$	39,216
Regulatory Liabilities			56,479						57,353
Tax Credit Carryforwards			21,836						20,209
Cost of Removal			32,993						37,360
Asset Retirement Obligations			9,494						6,557
Net Operating Loss Carryforward			2,336						1,853
Other			11,310						5,550
Total Deferred Tax Assets			174,407						168,098
Deferred Tax Liabilities
Differences Related to Property			(347,885)						(334,201)
Retirement Benefits Regulatory Asset			(22,458)						(22,789)
Pension Expense			(24,875)						(24,269)
Other			(16,462)						(8,141)
Total Deferred Tax Liabilities			(411,680)						(389,400)
Deferred Income Taxes			$	(237,273)					$	(221,302)

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, 2023 and the respective periods of expiration:

(in thousands)			Amount						2024-2029						2030-2037						2038-2043
State Net Operating Losses			$	2,336					$	211					$	2,125					$	—
State Tax Credits			21,836						—						—						21,836

Schedule of Income Tax Contingencies

The following table summarizes the activity for unrecognized tax benefits for the years ended December 31, 2023, 2022 and 2021:

(in thousands)			2023						2022						2021
Balance on January 1			$	923					$	827					$	771
Increases for tax positions taken during a prior period			596						44						11
Increases for tax positions taken during the current period			163						260						189
Decreases due to settlements with taxing authorities			—						—						—
Decreases as a result of a lapse of applicable statutes of limitations			(193)						(208)						(144)
Balance on December 31			$	1,489					$	923					$	827

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