Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

The following tables provide: (a) the components of income tax expense in 2022, 2021, and 2020; (b) the reconciliation between the statutory federal income tax rate and the effective income tax rate for 2022, 2021, and 2020 from continuing operations; and (c) the components of accumulated deferred income tax assets and liabilities at December 31, 2022 and 2021.


	For the Year Ended December 31,
	2022		2021		2020
(in thousands)
Current Income Tax Expense
Federal	$	8,284	$	2,775	$	(2,777)
State	1,948		(96)		2,162
Other	(47)		(47)		(47)
Total current income tax expense (benefit)	10,185		2,632		(662)
Deferred Income Tax Expense (1)
Property, plant and equipment	14,968		24,074		23,224
Deferred gas costs	8,923		1,857		(714)
Pensions and other employee benefits	1,109		(655)		(75)
FPU merger-related premium cost and deferred gain	(351)		(351)		156
Net operating loss carryforwards	2		97		5,107
Other	(1,004)		1,577		(3,498)
Total deferred income tax expense	23,647		26,599		24,200
Income Tax Expense from Continuing Operations	33,832		29,231		23,538
Income Tax Expense from Discontinued Operations	—		—		153
Total Income Tax	$	33,832	$	29,231	$	23,691

(1) Includes $7.8 million, $8.2 million, and $4.9 million of deferred state income taxes for the years 2022, 2021 and 2020, respectively.

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


	For the Year Ended December 31,
	2022			2021			2020
(in thousands)
Reconciliation of Effective Income Tax Rates from Continuing Operations
Federal income tax expense (1)	$	25,982		$	23,666		$	19,778
State income taxes, net of federal benefit	7,714			6,371			5,051
ESOP dividend deduction	(177)			(180)			(218)
CARES Act Tax Benefit	—			(919)			(1,841)

Other	313			293			768
Total Income Tax Expense from Continuing Operations	$	33,832		$	29,231		$	23,538
Effective Income Tax Rate from Continuing Operations	27.34		%	25.94		%	24.99		%

(1) Federal income taxes were calculated at 21 percent for 2022, 2021, and 2020.

Schedule of Accumulated Deferred Income Tax Assets and Liabilities


	As of December 31,
	2022		2021
(in thousands)
Deferred Income Taxes
Deferred income tax liabilities:
Property, plant and equipment	$	238,687	$	224,034
Acquisition adjustment	5,915		6,266
Loss on reacquired debt	164		183
Deferred gas costs	11,288		2,366
Natural gas conversion costs	5,026		5,529
Storm reserve liability	5,791		5,783
Other	8,236		6,301
Total deferred income tax liabilities	$	275,107	$	250,462
Deferred income tax assets:
Pension and other employee benefits	$	3,985	$	5,354
Environmental costs	1,052		996
Net operating loss carryforwards	1,488		1,490
Storm reserve liability	453		448
Accrued expenses	9,007		4,843
Other	2,955		3,781
Total deferred income tax assets	$	18,940	$	16,912
Deferred Income Taxes Per Consolidated Balance Sheets	$	256,167	$	233,550