INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2011

INCOME TAXES.

Schedule of income tax expense components

	2011			2010			2009
Current income taxes:
Federal	$	(8,604	)	$	7,713		$	3,987
State		(2,120	)		1,057			572
TOTAL		(10,724	)		8,770			4,559
Deferred income taxes:
Federal		39,096			17,942			13,854
State		6,297			4,349			1,973
TOTAL		45,393			22,291			15,827
Investment tax credit amortization		(371	)		(528	)		(504	)
TOTAL INCOME TAX EXPENSE	$	34,298		$	30,533		$	19,882

Schedule of deferred tax assets and liabilities as reflected on consolidated balance sheet

	December 31,
Deferred Income Taxes	2011		2010
Current deferred tax assets, net(1)	$	6,688	$	—
Non-current deferred tax liabilities, net		263,933		212,003
NET DEFERRED TAX LIABILITIES	$	257,245	$	212,003

(1)

Current deferred tax assets are included in prepaid expenses and other on the face of the balance sheet.

Summary of temporary differences related to deferred tax assets and deferred tax liabilities

	December 31,
Temporary Differences	2011		2010
Deferred tax assets:
Net operating loss	$	6,688	$	—
Disallowed plant costs		1,097		1,127
Alternative minimum tax		261		—
Gains on hedging transactions		1,454		1,518
Plant related basis differences		21,044		21,105
Regulated liabilities related to income taxes		13,318		13,702
Pensions and other post-retirement benefits		—		1,588
Carry forward of income tax credit		16,304		12,596
Income received — deferred		598		10,044
Other		32		2,262
Total deferred tax assets	$	60,796	$	63,942
Deferred tax liabilities:
Depreciation, amortization and other plant related differences	$	253,743	$	216,685
Regulated assets related to income		40,555		41,107
Loss on reacquired debt		4,288		3,996
Pensions and other post-retirement benefits		673		—
Deferred ice storm expenses		1,413		2,957
Deferred fuel costs		2,662		1,965
Amortization of intangibles		5,929		4,850
Other		8,778		4,385
Total deferred tax liabilities		318,041		275,945
NET DEFERRED TAX LIABILITIES	$	257,245	$	212,003

Schedule of difference between income taxes and amounts calculated by applying the federal legal rate to income tax expense for continuing operations

Effective Income Tax Rates	2011			2010			2009
Federal statutory income tax rate		35.0	%		35.0	%		35.0	%
Increase in income tax rate resulting from:
State income tax (net of federal benefit)		3.1			3.1			3.1
Investment tax credit amortization		(0.4	)		(0.7	)		(0.8	)
Effect of ratemaking on property related differences		0.2			(0.8	)		(3.6	)
Effect of Medicare part D changes		—			2.7
Other		0.5			(0.1	)		(1.2	)
Effective income tax rate		38.4	%		39.2	%		32.5	%

Schedule of unrecognized tax benefits

Unrecognized Tax Benefits	2011			2010			2009
Unrecognized tax benefits — January 1,	$	359,000		$	906,000		$	2,176,000
The gross amounts of increases in unrecognized tax benefits taken during prior periods		—			—			—
The gross amounts of decreases in unrecognized tax benefits taken during the period relating to positions accepted by taxing authorities		—			—			—
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations		(359,000	)		(547,000	)		(1,270,000	)
Unrecognized tax benefits — December 31,	$	—		$	359,000		$	906,000