INCOME TAXES

3 Months Ended

Mar. 31, 2012

INCOME TAXES

INCOME TAXES

NOTE 10—INCOME TAXES

We calculate our interim period provision for income taxes based on our projected annual effective tax rate as adjusted for certain discrete items.

The table below shows our effective tax rates:

	Three Months Ended March 31
	2012		2011
Effective Tax Rate	32.4	%	36.8	%

Our effective tax rate for the three months ended March 31, 2012, was lower than the federal statutory tax rate of 35%. This difference primarily related to the federal income tax benefit of tax credits related to wind production and a remeasurement of an unrecognized tax benefit liability that better reflects how the underlying uncertain tax positions are resolving themselves in various taxing jurisdictions. Other state income tax obligations partially offset the lower effective tax rate.

Our effective tax rate for the three months ended March 31, 2011, was higher than the federal statutory tax rate of 35%. This difference primarily related to state income tax obligations, partially offset by tax credits related to wind production, along with other tax credits.

During the three months ended March 31, 2012, we remeasured and decreased our liability for unrecognized tax benefits by $2.7 million that  better reflects how the underlying uncertain tax positions are resolving themselves in various taxing jurisdictions. We reduced the provision for income taxes related to this remeasurement, of which a portion was reported as discontinued operations.