Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

The following tables provide: (a) the components of income tax expense in 2025, 2024, and 2023; (b) the reconciliation between the statutory federal income tax rate and the Company's effective income tax rate for 2025, 2024, and 2023; and (c) the components of accumulated deferred income tax assets and liabilities at December 31, 2025 and 2024.


	For the Year Ended December 31,
(in millions)	2025		2024		2023
Current Income Tax Expense
Federal	$	10.1	$	3.7	$	14.7
State	13.9		2.7		5.5
Other	(0.5)		(0.4)		—
Total current income tax expense	23.5		6.0		20.2
Deferred Income Tax Expense
Federal	29.4		29.3		7.8
State	(0.2)		7.9		0.1
Total deferred income tax expense	29.2		37.2		7.9
Total Income Tax Expense	$	52.7	$	43.2	$	28.1

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


	For the Year Ended December 31,
(dollars in millions)	2025				2024				2023
Reconciliation of Effective Income Tax Rate
Income before income taxes	$	193.0			$	161.8			$	115.3
U.S. federal tax at statutory rate	40.5		21.0	%	34.0		21.0	%	24.2		21.0	%
Reconciling Items:
State and local income taxes, net of federal income tax effect	10.8		5.6	%	8.4		5.2	%	4.4		3.8	%
Effects of changes in tax laws or rates enacted in the current period	—		—	%	—		—	%	(2.5)		(2.1)	%



Nontaxable or nondeductible items:



Other	1.4		0.7	%	0.8		0.5	%	2.0		1.7	%

Income Taxes and Effective Income Tax Rate	$	52.7	27.3	%	$	43.2	26.7	%	$	28.1	24.4	%

Schedule of Accumulated Deferred Income Tax Assets and Liabilities


	As of December 31,
(in millions)	2025		2024
Deferred Income Taxes
Deferred income tax liabilities:
Property, plant and equipment	$	318.8	$	289.7
Acquisition adjustment	4.9		5.2
Deferred gas costs	4.7		2.5
Natural gas conversion costs	4.4		4.6
Storm reserve liability	5.8		5.8
Intangible assets	16.0		6.4
Other	6.5		8.4
Total deferred income tax liabilities	361.1		322.6
Deferred income tax assets:
Pension and other employee benefits	6.5		5.1
Net operating loss carryforwards	9.0		1.1
Investment tax credits	9.0		—
Accrued expenses	4.6		4.0
Regulatory asset	7.6		6.0

Other	11.1		10.3
Total deferred income tax assets	47.8		26.5
Deferred Income Taxes	$	313.3	$	296.1

Cash payments of U.S. federal and state income taxes, net of refunds, were as follows:


	For the Year Ended December 31,
(in millions)	2025		2024		2023
Net cash paid for income taxes consisted of the following:
Cash payments of federal income taxes, net	$	8.5	$	1.6	$	19.0
Cash payments of state and local income taxes, net
Aggregated state and local jurisdictions:	0.3		0.3		0.9
Disaggregated state and local jurisdictions:
Delaware	3.8		3.0		0.4
Florida	2.9		2.7		0.9
Maryland	0.5		1.8		0.7
Total cash payments of U.S. federal and state income taxes (net of refunds)	$	16.0	$	9.4	$	21.9