Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

The following tables provide: (a) the components of income tax expense in 2024, 2023, and 2022; (b) the reconciliation between the statutory federal income tax rate and the Company's effective income tax rate for 2024, 2023, and 2022; and (c) the components of accumulated deferred income tax assets and liabilities at December 31, 2024 and 2023.


	For the Year Ended December 31,
	2024		2023		2022
(in millions)
Current Income Tax Expense
Federal	$	3.7	$	14.7	$	8.3
State	2.7		5.5		1.9
Other	(0.4)		—		—
Total current income tax expense	6.0		20.2		10.2
Deferred Income Tax Expense (1)
Property, plant and equipment	33.2		17.8		15.0
Amortization of FCG goodwill	7.8		—		—
Deferred gas costs	(1.0)		(7.7)		8.9
Pensions and other employee benefits	(0.3)		(1.0)		1.1

Net operating loss carryforwards	(2.5)		(0.4)		—
Other	—		(0.8)		(1.4)
Total deferred income tax expense	37.2		7.9		23.6
Total Income Tax Expense	$	43.2	$	28.1	$	33.8

(1) Includes $7.9 million, less than $0.1 million, and $7.8 million of deferred state income taxes for the years 2024, 2023, and 2022, respectively.

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


	For the Year Ended December 31,
	2024			2023			2022
(in millions)
Reconciliation of Effective Income Tax Rates
Federal income tax expense (1)	$	34.0		$	24.2		$	26.0
State income taxes, net of federal benefit (2)	8.4			4.4			7.7



Other	0.8			(0.5)			0.1
Total Income Tax Expense	$	43.2		$	28.1		$	33.8
Effective Income Tax Rate	26.71		%	24.35		%	27.34		%

(1) Federal income taxes were calculated at 21 percent for 2024, 2023, and 2022.

(2) 2023 includes the impact of the one-time benefit associated with the reduction in the Pennsylvania state tax rate. See Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations for an additional information.

Schedule of Accumulated Deferred Income Tax Assets and Liabilities


	As of December 31,
	2024		2023
(in millions)
Deferred Income Taxes
Deferred income tax liabilities:
Property, plant and equipment	$	289.7	$	252.1
Acquisition adjustment	5.2		5.6
Deferred gas costs	2.5		3.6
Natural gas conversion costs	4.6		4.8
Storm reserve liability	5.8		5.8
Intangible assets	6.4		—
Other	8.4		9.7
Total deferred income tax liabilities	322.6		281.6
Deferred income tax assets:
Pension and other employee benefits	5.1		5.0
Net operating loss carryforwards	1.1		1.8
Accrued expenses	4.0		3.3
Regulatory asset	6.0		4.1
Intangible assets	—		2.8
Other	10.3		5.5
Total deferred income tax assets	26.5		22.5
Deferred Income Taxes	$	296.1	$	259.1