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Income Taxes (Tables) | 9 Months Ended
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Sep. 30, 2022
Income Tax Disclosure [Abstract] |
Summary of Significant Factors Impact on Difference Between Effective Tax Rate and Federal Statutory Rate | The following table summarizes the significant factors impacting the difference between our effective tax rate and the federal statutory rate for the three and nine months ended September 30 (dollars in thousands):
|  | Three months ended September 30, |  |  | Nine months ended September 30, |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Federal income taxes at statutory rates |  | $ | (1,185 | ) |  |  | 21.0 | % |  | $ | 1,876 |  |  |  | 21.0 | % |  | $ | 13,764 |  |  |  | 21.0 | % |  | $ | 22,173 |  |  |  | 21.0 | %
Increase (decrease) in tax resulting from: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Flow through related to deduction of meters and mixed service costs (1) |  |  | 1,192 |  |  |  | (21.1 | ) |  |  | (5,277 | ) |  |  | (59.1 | ) |  |  | (18,643 | ) |  |  | (28.4 | ) |  |  | (5,277 | ) |  |  | (5.0 | )
Tax effect of regulatory treatment of utility plant differences (2) |  |  | 420 |  |  |  | (7.5 | ) |  |  | (1,697 | ) |  |  | (19.0 | ) |  |  | (6,878 | ) |  |  | (10.5 | ) |  |  | (8,748 | ) |  |  | (8.3 | )
State income tax expense |  |  | (45 | ) |  |  | 0.8 |  |  |  | 166 |  |  |  | 1.9 |  |  |  | 856 |  |  |  | 1.3 |  |  |  | 885 |  |  |  | 0.8 |
Settlement of equity awards |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (19 | ) |  |  | — |  |  |  | 909 |  |  |  | 0.9 |
Settlement of prior year tax returns |  |  | (318 | ) |  |  | 5.6 |  |  |  | (400 | ) |  |  | (4.5 | ) |  |  | (318 | ) |  |  | (0.5 | ) |  |  | (400 | ) |  |  | (0.4 | )
Other |  |  | 93 |  |  |  | (1.6 | ) |  |  | (100 | ) |  |  | (1.1 | ) |  |  | (440 | ) |  |  | (0.7 | ) |  |  | (412 | ) |  |  | (0.4 | )
Total income tax expense (benefit) |  | $ | 157 |  |  |  | (2.8 | )% |  | $ | (5,432 | ) |  |  | (60.8 | )% |  | $ | (11,678 | ) |  |  | (17.8 | )% |  | $ | 9,130 |  |  |  | 8.6 | %
(1) In September and October 2021, new rates from the Company's Idaho and Washington general rate cases went into effect. While there were base rate increases approved in each of the cases, these base rate increases were offset by tax customer credits which resulted in no increase in customer billing rates. As the tax customer credits are returned to customers, this results in a decrease to income tax expense as a result of flowing through the benefits related to meters and mixed service costs. This decrease in income tax expense represents the benefits to the Company as a result of these general rate cases. In 2017, the Tax Cuts and Jobs Act (TCJA) reduced the corporate income tax rate, which resulted in a reduction to deferred income tax assets and liabilities. Prior to 2022, for depreciation-related temporary differences that are returned to customers, the Company utilized the average rate assumption method to compute the amounts returned to customers. Beginning in 2022, the Company changed to the alternative method provided for in the TCJA, to be in compliance with recently released revenue procedures and private letter rulings.

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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
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