Income Taxes (Tables)

12 Months Ended

Jun. 30, 2016

The temporary differences which gave rise to the net accumulated deferred income tax liability for the periods are as follows:



($000)	2016		2015

Deferred Tax Liabilities
Deferred natural gas cost	(256	)	—
Prepaid expenses	(392	)	(452	)
Accelerated depreciation	(38,862	)	(38,108	)
Prepaid pension	—		(805	)
Regulatory assets - asset retirement obligations	(981	)	(876	)
Regulatory assets - loss on extinguishment of debt	(1,021	)	(1,107	)
Regulatory assets - unrecognized accrued pension	(4,110	)	(2,718	)
Regulatory liabilities	(837	)	(1,268	)
Other	(1,084	)	(1,119	)

Total deferred tax liabilities	(47,543	)	(46,453	)

Deferred Tax Assets
Bad debt reserve	114		98
Accrued pension	516		—
Accrued employee benefits	875		1,131
Asset retirement obligations	1,425		1,378
Investment tax credits	—		7
Regulatory liabilities	1,084		1,540
Section 263(a) capitalized costs	32		64
Other	92		105

Total deferred tax assets	4,138		4,323

Net accumulated deferred income tax liability	(43,405	)	(42,130	)

The components of the income tax provision are comprised of the following for the years ended June 30:

Reconciliation of the statutory federal income tax rate to the effective income tax rate is shown in the table below:



(%)	2016		2015		2014

Statutory federal income tax rate	34.0		34.0		34.0
State income taxes, net of federal benefit	4.0		4.0		4.0
Amortization of investment tax credits	(0.1	)	(0.1	)	(0.1	)
Other differences, net	—		(0.4	)	(0.9	)
Effective income tax rate	37.9		37.5		37.0

The following is a reconciliation of our unrecognized tax benefits:



($000)	2016		2015

Balance, beginning of year	5		64
Gross decreases - tax positions in prior period	(5	)	(59	)
Balance, end of year	—		5