INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

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,
	2019		2018
Deferred tax assets
Safe harbor lease receivables	$	14,552	$	17,067
Net operating loss carryforwards		116,797		100,565
Alternative minimum tax credit carryforwards		308		615
Deferred revenues and membership withdrawal		28,185		29,650
Operating lease liabilities		131,817		—
Other		26,587		22,483
		318,246		170,380
Less valuation allowance		(30,468)		—
		287,778		170,380
Deferred tax liabilities
Basis differences- property, plant and equipment		129,427		115,887
Capital credits from other associations		32,789		32,689
Deferred debt prepayment transaction costs		33,542		35,595
Operating lease right-of-use assets		136,930		—
Other		14,027		4,307
		346,715		188,478
Net deferred tax liability	$	(58,937)	$	(18,098)

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

	2019		2018		2017
Federal income tax expense at statutory rate	21.00	%	21.00	%	35.00	%
State income tax expense, net of federal benefit	2.80		2.80		2.63
Patronage exclusion	(23.80)		(23.80)		(37.63)
Asset retirement obligations	(11.33)		3.57		(0.16)
Deferred revenues and membership withdrawal	3.23		(28.78)		5.11
Operating liabilities, net of right-of-use assets (1)	11.29		—		—
Valuation Allowance	67.24		—		—
Other book tax differences	(2.43)		24.42		(2.82)
Regulatory treatment of deferred taxes	(68.68)		(0.46)		(3.91)
Effective tax rate	(0.68)	%	(1.25)	%	(1.78)	%