INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2016

Components of Income Tax Expense
In thousands	For the Year Ended December 31,
State income taxes	2016			2015		2014
Current		$	1,050	$	499	$	173
Deferred			860		1,299		1,231
Total state income tax expense		$	1,910	$	1,798	$	1,404

	For the Year Ended December 31,
Federal income taxes			2016		2015		2014
Current		$	1,799	$	2,168	$	(1,073	)
Deferred			4,622		3,818		6,044
Total federal income tax expense		$	6,421	$	5,986	$	4,971

Reconciliation of effective tax rate:
	For the Year Ended December 31,
In thousands	2016				2016			2015			2015			2014			2014
	Amount				Percent			Amount			Percent			Amount			Percent
Reconciliation of effective tax rate
Income before federal and state income taxes		$	21,285			100.0	%		$	19,088		100.0	%		$	15,881		100.0	%

Amount computed at statutory rate			7,237			34.0	%			6,490		34.0	%			5,400		34.0	%
Reconciling items
State income tax-net of federal tax benefit			1,327			6.2	%			1,214		6.4	%			918		5.8	%
Other			(233	)		(1.1	)%			80		0.4	%			57		0.4	%
Total income tax expense and effective rate		$	8,331			39.1	%		$	7,784		40.8	%		$	6,375		40.2	%

Deferred income taxes at December 31, 2016, 2015, and 2014 were comprised of the following:

	For the Year Ended December 31,
In thousands	2016			2015			2014

Deferred tax assets related to:
Federal alternative minimum tax credit carry-forwards	$	2,474		$	3,971		$	5,459
Federal and state operating loss carry-forwards		752			675			1,045
Bad debt allowance		104			110			99
Valuation allowance		(286	)		(182	)		(65	)
Stock options		452			415			397
Other		320			291			269
Total deferred tax assets	$	3,816		$	5,280		$	7,204

Deferred tax liabilities related to:
Property plant and equipment basis differences	$	(70,711	)	$	(66,508	)	$	(63,427	)
Uncertain tax position		(80	)		(247	)		(179	)
Expenses of rate proceedings		(19	)		(213	)		(214	)
Property taxes		(663	)		(527	)		(505	)
Other		(796	)		(756	)		(734	)
Total deferred tax liabilities	$	(72,269	)	$	(68,251	)	$	(65,059	)


Net deferred tax liability	$	(68,453	)	$	(62,971	)	$	(57,855	)

Schedule of Valuation Allowance
	Balance at Beginning of Period			Additions Charged to Costs and Expenses			Deductions		Balance at End of Period
In thousands

Classification
For the Year Ended December 31, 2016 Valuation allowance for deferred tax assets		$	182		$	104		—		$	286
For the Year Ended December 31, 2015 Valuation allowance for deferred tax assets		$	65		$	117		—		$	182
For the Year Ended December 31, 2014 Valuation allowance for deferred tax assets		$	61		$	4		—		$	65

The following table provides the changes in the Company's uncertain tax position:

	For the years ended December 31,
In thousands	2016			2015
Balance at beginning of year	$	247		$	179
Additions based on tax positions related to the current year		23			51
Additions based on tax positions related to prior years		11			17
Reductions for tax positions of prior years		(201	)		-
Settlements		-			-
Lapses in Statutes of Limitations		-			-
Balance at end of year	$	80		$	247