INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

INCOME TAXES.

Schedule of income tax expense components

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

	2015			2014			2013
Current income taxes:
Federal	$	—		$	(2,350	)	$	6,726
State		—			(123	)		2,495
TOTAL		—			(2,473	)		9,221
Deferred income taxes:
Federal		29,722			36,620			24,954
State		4,233			5,216			3,554
TOTAL		33,955			41,836			28,508
Investment tax credit amortization		(143	)		(143	)		(237	)
TOTAL INCOME TAX EXPENSE	$	33,812		$	39,220		$	37,492

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	2015		2014
NET DEFERRED TAX LIABILITIES	$	396,542	$	358,252

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	2015		2014
Deferred tax assets:
Plant related basis differences	$	27,347	$	25,349
Net operating loss (NOL)		9,055		22,000
Regulated liabilities related to income taxes		13,142		13,350
Disallowed plant costs		1,699		1,754
Gains on hedging transactions		1,195		1,260
Pensions and other post-retirement benefits		—		1,175
Carry forward of income tax credit		8,675		6,367
Other		1,550		1,633
Total deferred tax assets	$	62,663	$	72,888
Deferred tax liabilities:
Depreciation, amortization and other plant related differences	$	382,897	$	363,337
Regulated assets related to income		38,615		37,180
Loss on reacquired debt		3,572		3,828
Amortization of intangibles		10,248		9,168
Pensions and other post-retirement benefits		7,112		—
Deferred construction accounting costs		5,711		6,082
Other		11,050		11,545
Total deferred tax liabilities		459,205		431,140
NET DEFERRED TAX LIABILITIES	$	396,542	$	358,252

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	2015			2014			2015
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		(0.2	)		(0.1	)		(0.2	)
Effect of ratemaking on property related differences		(1.4	)		(1.7	)		(1.1	)
Other		0.9			0.6			0.3
EFFECTIVE INCOME TAX RATE		37.4	%		36.9	%		37.1	%