INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

INCOME TAXES

Schedule of components of net deferred tax liability

Components of our net deferred tax liability are as follows (dollars in thousands):

	December 31,		December 31,
	2017		2016
Deferred tax assets
Safe harbor lease receivables	$	19,222	$	33,355
Net operating loss carryforwards		104,102		142,286
Alternative minimum tax credit carryforwards		1,230		2,417
Deferred revenues and membership withdrawal		17,350		30,583
Colowyo Coal- coal contract intangible liability		—		1,228
Other		23,707		41,066
		165,611		250,935
Deferred tax liabilities
Basis differences- property, plant and equipment		112,285		162,928
Capital credits from other associations		28,787		44,268
Deferred debt prepayment transaction costs		37,649		62,773
Other		4,095		11,483
		182,816		281,452
Net deferred tax liability	$	(17,205)	$	(30,517)

Schedule of reconciliation of statutory federal income tax rate and effective tax rate

	2017		2016		2015
Federal income tax expense at statutory rate	35.00	%	35.00	%	35.00	%
State income tax expense, net of federal benefit	2.63		2.63		2.63
Patronage exclusion	(37.63)		(37.63)		(37.63)
Asset retirement obligations	(0.16)		5.85		(0.58)
Postretirement medical actuarial gains and losses	0.02		1.04		(1.09)
Various book tax differences	2.27		(7.66)		2.84
Regulatory treatment of deferred taxes	(3.91)		(3.79)		(1.17)
Effective tax rate	(1.78)	%	(4.56)	%	0.00	%