INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

Income Taxes.

Schedule of income tax expense components

Income tax expense components for the years ended December 31 are as follows (in thousands):

	2014			2013			2012
Current income taxes:
Federal	$	(2,350	)	$	6,726		$	1,552
State		(123	)		2,495			708
TOTAL		(2,473	)		9,221			2,260
Deferred income taxes:
Federal		36,620			24,954			28,210
State		5,216			3,554			4,018
TOTAL		41,836			28,508			32,228
Investment tax credit amortization		(143	)		(237	)		(329	)
TOTAL INCOME TAX EXPENSE	$	39,220		$	37,492		$	34,159

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

Deferred tax assets and liabilities are reflected on our consolidated balance sheets as follows (in thousands):

	December 31,
Deferred Income Taxes	2014		2013
Current deferred tax assets, net(1)	$	19,200	$	7,222
Non-current deferred tax liabilities, net		377,452		324,266
NET DEFERRED TAX LIABILITIES	$	358,252	$	317,044

(1) Current deferred tax assets are included in prepaid expenses and other on the balance sheets.

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

Temporary differences related to deferred tax assets and deferred tax liabilities are summarized as follows (in thousands):

	December 31,
Temporary Differences	2014		2013
Deferred tax assets:
Plant related basis differences	$	25,349	$	23,344
Net operating loss (NOL)		22,000		—
Regulated liabilities related to income taxes		13,350		13,576
Disallowed plant costs		1,754		1,841
Gains on hedging transactions		1,260		1,324
Pensions and other post-retirement benefits		1,175		544
Carry forward of income tax credit		6,367		6,374
Other		1,633		1,633
Total deferred tax assets	$	72,888	$	48,636
Deferred tax liabilities:
Depreciation, amortization and other plant related differences	$	363,337	$	297,175
Regulated assets related to income		37,180		37,806
Loss on reacquired debt		3,828		4,085
Amortization of intangibles		9,168		8,089
Deferred construction accounting costs		6,082		6,977
Other		11,545		11,548
Total deferred tax liabilities		431,140		365,680
NET DEFERRED TAX LIABILITIES	$	358,252	$	317,044

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	2014			2013			2012
Federal statutory income tax rate		35.0	%		35.0	%		35.0	%
Increase (decrease) in income tax rate resulting from:
State income tax (net of federal benefit)		3.1			3.1			3.1
Investment tax credit amortization		(0.1	)		(0.2	)		(0.4	)
Effect of ratemaking on property related differences		(1.7	)		(1.1	)		(0.2	)
Other		0.6			0.3			0.5
EFFECTIVE INCOME TAX RATE		36.9	%		37.1	%		38.0	%