Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

The following tables provide: (a) the components of income tax expense in 2021, 2020, and 2019; (b) the reconciliation between the statutory federal income tax rate and the effective income tax rate for 2021, 2020, and 2019 from continuing operations; and (c) the components of accumulated deferred income tax assets and liabilities at December 31, 2021 and 2020.


	For the Year Ended December 31,
	2021		2020		2019
(in thousands)
Current Income Tax Expense
Federal	$	2,775	$	(2,777)	$	(2,252)
State	(96)		2,162		(491)
Other	(47)		(47)		(47)
Total current income tax expense (benefit)	2,632		(662)		(2,790)
Deferred Income Tax Expense (1)
Property, plant and equipment	24,074		23,224		25,907
Deferred gas costs	1,857		(714)		79
Pensions and other employee benefits	(655)		(75)		(454)
FPU merger-related premium cost and deferred gain	(351)		156		(278)
Net operating loss carryforwards	97		5,107		(3,772)
Other	1,577		(3,498)		2,422
Total deferred income tax expense	26,599		24,200		23,904
Income Tax Expense from Continuing Operations	29,231		23,538		21,114
Income Tax Expense from Discontinued Operations	—		153		1,416
Total Income Tax	$	29,231	$	23,691	$	22,530

(1) Includes $8.2 million, $4.9 million, and $4.7 million of deferred state income taxes for the years 2021, 2020 and 2019, respectively.

Summary of Reconciliation of Statutory Federal Tax and Effective Income Tax Rates


	For the Year Ended December 31,
	2021			2020			2019
(in thousands)
Reconciliation of Effective Income Tax Rates from Continuing Operations
Federal income tax expense (1)	$	23,666		$	19,778		$	17,264
State income taxes, net of federal benefit	6,371			5,051			5,093
ESOP dividend deduction	(180)			(218)			(173)
CARES Act Tax Benefit	(919)			(1,841)			—
Depreciation	(15)			—			—
Other	308			768			(1,070)
Total Income Tax Expense from Continuing Operations	$	29,231		$	23,538		$	21,114
Effective Income Tax Rate from Continuing Operations	25.94		%	24.99		%	25.65		%

(1) Federal income taxes were calculated at 21 percent for 2021, 2020, and 2019.

Schedule of Accumulated Deferred Income Tax Assets and Liabilities


	As of December 31,
	2021		2020
(in thousands)
Deferred Income Taxes
Deferred income tax liabilities:
Property, plant and equipment	$	224,034	$	199,287
Acquisition adjustment	6,266		6,618
Loss on reacquired debt	183		201
Deferred gas costs	2,366		509
Natural gas conversion costs	5,529		5,379
Storm reserve liability	5,783		7,073
Other	6,301		5,587
Total deferred income tax liabilities	250,462		224,654
Deferred income tax assets:
Pension and other employee benefits	5,354		4,636
Environmental costs	996		1,064
Net operating loss carryforwards	1,490		1,587
Storm reserve liability	448		409
Accrued expenses	4,843		6,153
Other	3,781		5,417
Total deferred income tax assets	16,912		19,266
Deferred Income Taxes Per Consolidated Balance Sheets	$	233,550	$	205,388