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Income Taxes
 3 Months Ended
Mar. 31, 2019
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block] Income Taxes
 
We compute income tax expense for each quarter based on the estimated annual effective tax rate for the year, adjusted for certain discrete items. Our effective tax rate typically differs from the federal statutory tax rate due to the regulatory impact of flowing through the federal and state tax benefit of repairs deductions, state tax benefit of accelerated tax depreciation deductions (including bonus depreciation when applicable) and production tax credits. The regulatory accounting treatment of these deductions requires immediate income recognition for temporary tax differences of this type, which is referred to as the flow-through method. When the flow-through method of accounting for temporary differences is reflected in regulated revenues, we record deferred income taxes and establish related regulatory assets and liabilities.

The following table summarizes the significant differences in income tax expense based on the differences between our effective tax rate and the federal statutory rate (in thousands):
 
Three Months Ended March 31,
 
2019
 
2018
Income Before Income Taxes
$
74,379

 
 
 
$
60,413

 
 
 
 
 
 
 
 
 
 
Income tax calculated at federal statutory rate
15,620

 
21.0
 %
 
12,687

 
21.0
 %
 
 
 
 
 
 
 
 
Permanent or flow-through adjustments:
 
 
 
 
 
 
 
State income, net of federal provisions
928

 
1.2

 
732

 
1.2

Flow-through repairs deductions
(7,935
)
 
(10.7
)
 
(6,586
)
 
(10.9
)
Production tax credits
(4,432
)
 
(6.0
)
 
(3,888
)
 
(6.4
)
Plant and depreciation of flow-through items
(1,523
)
 
(2.0
)
 
(916
)
 
(1.6
)
Amortization of excess deferred income tax
(1,376
)
 
(1.8
)
 
(384
)
 
(0.6
)
Share-based compensation
186

 
0.3

 
275

 
0.5

Other, net
105

 
0.1

 
(6
)
 
—

 
(14,047
)
 
(18.9
)
 
(10,773
)
 
(17.8
)
 
 
 
 
 
 
 
 
Income Tax Expense
$
1,573

 
2.1
 %
 
$
1,914

 
3.2
 %

 
 
 
 
 
 
 
 
Uncertain Tax Positions

We recognize tax positions that meet the more-likely-than-not threshold as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. We have unrecognized tax benefits of approximately $55.7 million as of March 31, 2019, including approximately $47.5 million that, if recognized, would impact our effective tax rate. It is reasonably possible that our unrecognized tax benefits may decrease by up to approximately $20 million in the next 12 months.

Our policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. During the three months ended March 31, 2019, and 2018, we recognized $0.4 million and $0.3 million, respectively, of expense for interest and penalties in the Condensed Consolidated Statements of Income. As of March 31, 2019 and December 31, 2018, we had $3.1 million and $2.7 million, respectively, of interest accrued in the Condensed Consolidated Balance Sheets.

Our federal tax returns from 2000 forward remain subject to examination by the Internal Revenue Service.