Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

The provisions for income taxes consist of:

	2017			2016			2015
Federal current	$	1,213		$	2,681		$	1,873
State current		846			1,082			597
Federal deferred		2,514			1,683			2,131
State deferred		9			2			177
Federal investment tax credit, net of current utilization		(39	)		(39	)		(38	)
Total income taxes	$	4,543		$	5,409		$	4,740

Reconciliation of Statutory Federal Tax Provision to Total Provision

A reconciliation of the statutory Federal tax provision (34%) to the total provision follows:

	2017			2016			2015
Statutory Federal tax provision	$	5,956		$	5,867		$	5,858
State income taxes, net of Federal benefit		563			715			511
IRS TPR ongoing deduction		(1,796	)		(962	)		(1,438	)
Tax-exempt interest		(33	)		(34	)		(37	)
Amortization of investment tax credit		(39	)		(39	)		(38	)
Cash value of life insurance		(9	)		44			71
Domestic production deduction		(177	)		(194	)		(190	)
Change in enacted federal tax rate		134			-			-
Other, net		(56	)		12			3
Total income taxes	$	4,543		$	5,409		$	4,740

Deferred Tax Assets and Liabilities

The tax effects of temporary differences between book and tax balances that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2017 and 2016 are summarized in the following table:

	2017		2016
Deferred tax assets:
Reserve for doubtful accounts	$	88	$	124
Compensated absences		147		212
Deferred compensation		1,150		1,581
Excess accumulated deferred income taxes on accelerated depreciation		4,145		-
Deferred taxes associated with the gross-up of revenues necessary to return, in rates, the effect of temporary differences		1,736		124
Pensions		924		2,146
Other costs deducted for book, not for tax		42		57
Total deferred tax assets		8,232		4,244

Deferred tax liabilities:
Accelerated depreciation		27,785		38,063
Basis differences from IRS TPR		7,579		8,339
Investment tax credit		439		390
Deferred taxes associated with the gross-up of revenues necessary to recover, in rates, the effect of temporary differences		5,291		8,183
Tax effect of pension regulatory asset		1,555		3,033
Other costs deducted for tax, not for book		337		405
Total deferred tax liabilities		42,986		58,413

Net deferred tax liability	$	34,754	$	54,169

In accordance with accounting standards, the net deferred tax liability is classified as a noncurrent deferred income tax liability on the balance sheets.

No valuation allowance was required for deferred tax assets as of December 31, 2017 and 2016. In assessing the value of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon expected future taxable income and the current regulatory environment, management believes it is more likely than not that the Company will realize the benefits of these deductible differences..