INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2012

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

A reconciliation of the United States federal statutory rate of 35 percent to the effective rate from operations for the fiscal years ended September 30, 2012, 2011 and 2010 is as follows:



(Thousands)	2012			2011			2010
Statutory income tax expense	$	35,213		$	48,638		$	63,753
Change resulting from
State income taxes	5,434			3,435			4,626
Depreciation and cost of removal	(3,999		)	(2,558		)	(1,986		)
Investment tax credits (ITC)	(34,397		)	(13,150		)	(769		)
Basis adjustment of solar assets due to ITC	5,974			2,266			91
Other	(496		)	(966		)	(1,023		)
Income tax provision	$	7,729		$	37,665		$	64,692
Effective income tax rate	7.7		%	27.1		%	35.5		%

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The income tax provision (benefit) from operations consists of the following:



(Thousands)	2012			2011			2010
Current
Federal	$	14,983		$	14,566		$	(7,343	)
State	4,025			6,618			(981		)
Deferred
Federal	18,757			30,932			65,258
State	4,361			(1,301		)	8,527
Investment tax credits	(34,397		)	(13,150		)	(769		)
Income tax provision	$	7,729		$	37,665		$	64,692

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The temporary differences, which give rise to deferred tax assets and (liabilities), consist of the following:



(Thousands)	2012			2011
Deferred tax assets
Investment tax credits	$	32,002		$	3,353
Deferred service contract revenue	3,185			3,191
Incentive compensation	7,666			3,775
Over-recovered gas costs	—			1,866
Other	8,893			5,451
Total deferred tax assets	$	51,746		$	17,636
Deferred tax liabilities
Property related items	$	(284,871	)	$	(258,501	)
Remediation costs	(24,018		)	(30,459		)
Equity investments	(31,610		)	(28,255		)
Post employment benefits	(8,520		)	(4,914		)
Fair value of derivatives	(5,461		)	(16,602		)
Conservation incentive plan	(11,200		)	(3,697		)
Under-recovered gas costs	(2,835		)	—
Other	(4,514		)	(1,492		)
Total deferred tax liabilities	$	(373,029	)	$	(343,920	)

Total net deferred tax liabilities	$	(321,283	)	$	(326,284	)

Summary of Operating Loss Carryforwards [Table Text Block]

As of September 30, 2012, the Company has state income tax net operating losses of approximately $51.1 million, which generally have a life of 20 years. The company has recorded a deferred tax asset of approximately $3 million on the Consolidated Balance Sheets, reflecting the tax benefit associated with the loss carry forwards. These deferred tax assets will expire as follows:



(Thousands)
Fiscal years 2013 - 2017	$	373
Fiscal years 2018 - 2022	—
Fiscal Years 2023 - 2027	—
Fiscal Years 2028 - 2032	2,639
Total	$	3,012