INCOME TAXES

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The effective income tax rates for the three months ended September 30, 2024 and 2023 were 17.7% and 17.0%, respectively, and for the nine months ended September 30, 2024 and 2023 were 22.3% and 20.5%, respectively.

The period-over-period increase in the effective income tax rate for the three-months ended is driven by the increase in US minimum tax, the effects of rate regulated accounting for income taxes, partially offset by a state apportionment income tax rate change due to the PSNC Acquisition (Note 6) relative to the change in earnings over the comparative periods.

The period-over-period increase in the effective income tax rate for the nine-months ended is due to an increase in US minimum tax, the tax effect of the write-down of non-deductible goodwill on the Gas Transmission segment (Note 6), and the effects of rate regulated accounting for income taxes, partially offset by a state apportionment income tax rate change due to the Acquisitions (Note 6), and the non-taxable portion of the gain on the disposition of Alliance Pipeline and Aux Sable (Note 6) relative to the change in earnings over the comparative periods.