Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

The following tables provide: (a) the components of income tax expense in 2023, 2022, and 2021; (b) the reconciliation between the statutory federal income tax rate and the effective income tax rate for 2023, 2022, and 2021; and (c) the components of accumulated deferred income tax assets and liabilities at December 31, 2023 and 2022.


	For the Year Ended December 31,
	2023		2022		2021
(in thousands)
Current Income Tax Expense
Federal	$	14,736	$	8,284	$	2,775
State	5,496		1,948		(96)
Other	(47)		(47)		(47)
Total current income tax expense (benefit)	20,185		10,185		2,632
Deferred Income Tax Expense (1)
Property, plant and equipment	17,797		14,968		24,074
Deferred gas costs	(7,739)		8,923		1,857
Pensions and other employee benefits	(974)		1,109		(655)
FPU merger-related premium cost and deferred gain	(351)		(351)		(351)
Net operating loss carryforwards	(370)		2		97
Other	(470)		(1,004)		1,577
Total deferred income tax expense	7,893		23,647		26,599
Total Income Tax	$	28,078	$	33,832	$	29,231

(1) Includes less than $0.1 million, $7.8 million, and $8.2 million of deferred state income taxes for the years 2023, 2022 and 2021, respectively.

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


	For the Year Ended December 31,
	2023			2022			2021
(in thousands)
Reconciliation of Effective Income Tax Rates
Federal income tax expense (1)	$	24,214		$	25,982		$	23,666
State income taxes, net of federal benefit	4,377			7,714			6,371
ESOP dividend deduction	(184)			(177)			(180)
CARES Act Tax Benefit	—			—			(919)

Other	(329)			313			293
Total Income Tax Expense	$	28,078		$	33,832		$	29,231
Effective Income Tax Rate	24.35		%	27.34		%	25.94		%

(1) Federal income taxes were calculated at 21 percent for 2023, 2022, and 2021.

Schedule of Accumulated Deferred Income Tax Assets and Liabilities


	As of December 31,
	2023		2022
(in thousands)
Deferred Income Taxes
Deferred income tax liabilities:
Property, plant and equipment	$	252,125	$	238,687
Acquisition adjustment	5,564		5,915
Loss on reacquired debt	145		164
Deferred gas costs	3,550		11,288
Natural gas conversion costs	4,824		5,026
Storm reserve liability	5,797		5,791
Other	9,655		8,236
Total deferred income tax liabilities	$	281,660	$	275,107
Deferred income tax assets:
Pension and other employee benefits	$	4,993	$	3,985
Environmental costs	951		1,052
Net operating loss carryforwards	1,847		1,488
Storm reserve liability	213		453
Accrued expenses	3,335		9,007
Other	11,239		2,955
Total deferred income tax assets	$	22,578	$	18,940
Deferred Income Taxes Per Consolidated Balance Sheets	$	259,082	$	256,167