Three Months Ended
September 30,

Nine Months Ended
September 30,

(in thousands)

2016

2015

2016

2015

Income Before Income Taxes – Continuing Operations

$

19,757

$

22,230

$

60,378

$

57,749

Tax Computed at Company’s Net Composite Federal and State Statutory Rate (39%)

7,705

8,670

23,547

22,522

Increases (Decreases) in Tax from:

Federal Production Tax Credits

(1,423

)

(1,437

)

(4,994

)

(5,147

)

R&D Tax Credits

(223

)

2

(445

)

(7

)

North Dakota Wind Tax Credit Amortization – Net of Federal Taxes

(212

)

(212

)

(637

)

(637

)

Employee Stock Ownership Plan Dividend Deduction

(157

)

(171

)

(472

)

(514

)

Corporate Owned Life Insurance

(92

)

185

(664

)

(39

)

Investment Tax Credits

(87

)

(143

)

(262

)

(428

)

Adjustment for Uncertain Tax Positions

(57

)

281

(31

)

367

AFUDC Equity

(51

)

(144

)

(238

)

(369

)

Section 199 Domestic Production Activities Deduction

(9

)

(362

)

(207

)

(1,087

)

Other Items – Net

(231

)

(148

)

141

(59

)

Income Tax Expense – Continuing Operations

$

5,163

$

6,521

$

15,738

$

14,602

Effective Income Tax Rate – Continuing Operations

26.1

%

29.3

%

26.1

%

25.3

%