INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of principal components of deferred income tax assets and liabilities recognized in the balance sheets

The principal components of deferred income tax assets and liabilities recognized on the balance sheets as of December 31 are included in the table below. Certain temporary differences are netted in the table when the offsetting amount is recorded as a regulatory asset or liability. This is consistent with regulatory treatment.



(Millions)	2014			2013
Deferred income tax assets
Tax credit carryforwards	$	116.7		$	113.5
Price risk management	—			13.0
Other	77.4			98.5
Total deferred income tax assets	$	194.1		$	225.0
Valuation allowance	(3.6		)	(8.2		)
Net deferred income tax assets	$	190.5		$	216.8

Deferred income tax liabilities
Plant-related	$	1,584.1		$	1,373.8
Regulatory deferrals	55.6			78.8
Employee benefits	45.4			79.6
Other	23.0			43.5
Total deferred income tax liabilities	$	1,708.1		$	1,575.7

Total net deferred income tax liabilities	$	1,517.6		$	1,358.9

Balance sheet presentation
Current deferred income tax assets	$	52.4		$	31.4
Long-term deferred income tax liabilities	1,570.0			1,390.3
Net deferred income tax liabilities	$	1,517.6		$	1,358.9

Schedule of Deferred Tax Asset expiration

Any deferred tax assets that are not used to offset future taxable income will expire between 2020 and 2033 as follows:



(Millions)
2020 through 2025	$	7.6
2026 through 2031	2.9
2032 through 2033	35.7

Schedule of components of the provision for income tax expense

The components of the provision for income taxes were as follows:



(Millions)	2014			2013			2012
Current provision
Federal	$	19.9		$	1.6		$	(17.4	)
State	25.2			4.7			(1.7		)
Total current provision	45.1			6.3			(19.1		)

Deferred provision
Federal	123.0			134.1			119.8
State	18.7			9.9			17.9
Total deferred provision	141.7			144.0			137.7

Investment tax credits
Deferral	13.2			12.3			17.8
Amortization	(5.2		)	(4.0		)	(12.6		)
Penalties	—			(0.1		)	(0.3		)
Unrecognized tax benefits	0.7			0.4			(2.9		)
Interest	(2.1		)	(0.9		)	(2.7		)
Total provision for income taxes related to continuing operations	193.4			158.0			117.9
Total provision for income taxes related to discontinued operations	7.2			45.9			22.6
Total	$	200.6		$	203.9		$	140.5

Reconciliation of federal income taxes to the provision for income taxes reported in the income statement

The following table presents a reconciliation of the difference between the effective tax rate and the amount computed by applying the statutory federal tax rate to income from continuing operations before taxes.



	2014							2013					2012
(Millions, except for percentages)	Rate			Amount				Rate		Amount			Rate		Amount
Statutory federal income tax	35.0	%		$	165.0			35.0	%	$	148.9		35.0	%	$	124.9
State income taxes, net	7.5		*	35.5			*	3.7		15.9			4.9		17.6
Benefits and compensation	(0.9	)		(4.3		)		(1.0	)	(4.1		)	(2.6	)	(9.3		)
Other differences, net	(0.6	)		(2.8		)		(0.6	)	(2.7		)	(4.3	)	(15.3		)
Effective income tax	41.0	%		$	193.4			37.1	%	$	158.0		33.0	%	$	117.9

Reconciliation of the beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



(Millions)	2014			2013			2012
Balance at January 1	$	3.6		$	11.3		$	22.4
Increase related to tax positions taken in prior years	—			2.2			0.9
Decrease related to tax positions taken in prior years	(0.1		)	(8.7		)	(6.7		)
Increase related to tax positions taken in current year	0.5			0.3			0.6
Decrease related to settlements	—			(1.5		)	(5.7		)
Decrease related to lapse of statutes	(0.7		)	—			(0.2		)
Balance at December 31	$	3.3		$	3.6		$	11.3

Schedule of the earliest open tax years that were subject to examination by state taxing authorities by major operating jurisdictions

As of December 31, 2014, we were subject to examination by state or local tax authorities for the 2008 through 2013 tax years in our major state operating jurisdictions as follows:



State		Year
Illinois		2008
Michigan		2008
Minnesota		2011
Wisconsin		2010