INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

Components of Income Tax Expense
In thousands	For the Year Ended December 31,
State income taxes	2019				2018			2017
Current		$	2,405			$	1,768		$	489
Deferred			(610	)			71			1,368
Total state income tax expense		$	1,795			$	1,839		$	1,857

	For the Year Ended December 31,
Federal income taxes	2019			2018		2017
Current	$	6,015		$	2,404	$	(1,418	)
Deferred		(2,629	)		748		6,856
Total federal income tax expense	$	3,386		$	3,152	$	5,438

Reconciliation of effective tax rate:
	For the Year Ended December 31,
In thousands	2019				2019			2018				2018			2017				2017
	Amount				Percent			Amount				Percent			Amount				Percent
Reconciliation of effective tax rate
Income before federal and state income taxes		$	20,106			100.0	%		$	19,270			100.0	%		$	21,278			100.0	%

Amount computed at statutory rate			4,222			21.0	%			4,047			21.0	%			7,234			34.0	%
Reconciling items
State income tax-net of federal tax benefit			1,414			7.0	%			1,350			7.0	%			1,297			6.1	%
Regulatory liability adjustment			(451	)		(2.2	)%			(920	)		(4.8	)%			—			0.0	%
Federal rate change and TCJA effect			–			–				325			1.7	%			(957	)		(4.5	)%
Other			(4	)		0.0	%			189			1.0	%			(279	)		(1.3	)%
Total income tax expense and effective rate		$	5,181			25.8	%		$	4,991			25.9	%		$	7,295			34.3	%

Table of Contents

Deferred income taxes at December 31, 2019, 2018, and 2017 were comprised of the following:

	For the Year Ended December 31,
In thousands	2019			2018			2017

Deferred tax assets related to:
Federal and state operating loss carry-forwards		725			1,050			1,094
Less: valuation allowance		(335	)		(396	)		(360	)
Bad debt allowance		73			65			80
Stock options		185			202			207
Other		70			85			161
Total deferred tax assets	$	718		$	1,006		$	1,182

Deferred tax liabilities related to:
Property plant and equipment basis differences	$	(50,219	)	$	(53,296	)	$	(52,629	)
Bond retirement costs		(1,286	)		(1,361	)		(1,437	)
Uncertain tax position		(271	)		(283	)		(145	)
Expenses of rate proceedings		-			(2	)		(8	)
Property taxes		(544	)		(521	)		(500	)
Other		(657	)		(597	)		(600	)
Total deferred tax liabilities	$	(52,977	)	$	(56,060	)	$	(55,319	)


Net deferred tax liability	$	(52,259	)	$	(55,054	)	$	(54,137	)

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, 2019 Valuation allowance for deferred tax assets		$	396		$	41		(102	)		$	335
For the Year Ended December 31, 2018 Valuation allowance for deferred tax assets		$	360		$	36		—			$	396
For the Year Ended December 31, 2017 Valuation allowance for deferred tax assets		$	286		$	74		—			$	360

Table of Contents

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

	For the years ended December 31,
In thousands	2019			2018
Balance at beginning of year	$	283		$	145
Additions based on tax positions related to the current year		37			130
Additions based on tax positions related to prior years		24			13
Reductions for tax positions of prior years		—			—
Settlements		—			—
Federal tax rate change		—			(5	)
Lapses in statutes of limitations		(73	)		—
Balance at end of year	$	271		$	283