INCOME TAXES AND CREDITS (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of effective income tax rate reconciliation

Total income taxes applicable to operations differ from the tax that would have resulted by applying the statutory Federal income tax rate to pre-tax income for the following reasons (in thousands):



	2016			2015			2014
Tax at Statutory Rate	$	37,944		$	36,233		$	35,482
Increase (Decrease) Resulting from:
State Income Taxes	4,096			4,584			1,935
Amortization of Investment Tax Credits	—			(149		)	(211		)
ESOP Dividend	(1,170		)	(1,168		)	(1,109		)
AFUDC	(900		)	(1,109		)	(1,481		)
Research and Development Credits	(613		)	(1,400		)	—
Other - Net	9			(46		)	279
Total Income Tax Expense	$	39,366		$	36,945		$	34,895

Schedule of components of provision for income taxes

The provision for Income Taxes is comprised of the following (in thousands):



	2016			2015			2014
Current:
Federal	$	—		$	—		$	60
State	(1,614		)	(2,203		)	2,642
Total Current	(1,614		)	(2,203		)	2,702
Deferred:
Federal	33,064			30,042			32,069
State	7,916			9,255			335
Total Deferred	40,980			39,297			32,404
Investment Tax Credits	—			(149		)	(211		)
Total Income Tax Expense	$	39,366		$	36,945		$	34,895

Schedule of deferred tax assets and liabilities

The net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes resulted in the following net deferred tax liabilities at December 31 (in thousands):



	2016		2015
Deferred Tax Assets:
Net Operating Loss and Tax Credits	$	102,290	$	64,978
Deferred State tax	24,574		20,825
Provision for Uncollectibles	5,170		4,030
Pension & Other Post Retirement Benefits	17,264		28,464
Deferred Revenues	7,696		4,844
Other	3,573		3,985
Total Deferred Tax Assets	$	160,567	$	127,126

Deferred Tax Liabilities:
Book Versus Tax Basis of Property	$	532,330	$	480,682
Deferred Fuel Costs - Net	2,052		3,998
Environmental Remediation	33,573		20,408
Deferred Regulatory Costs	1,554		566
Deferred Pension & Other Post Retirement Benefits	34,432		42,216
Budget Billing - Customer Accounts	3,347		830
Section 461 Prepayments	1,147		1,017
Conservation Incentive Program	11,846		1,132
Other	9,694		8,951
Total Deferred Tax Liabilities	$	629,975	$	559,800

Deferred Tax Liability - Net	$	469,408	$	432,674

Reconciliation of unrecognized tax benefits

A reconciliation of unrecognized tax benefits is as follows (in thousands):



	2016		2015		2014
Balance at January 1,	$	559	$	552	$	547
Increase as a result of tax position taken in prior years	802		7		5
Balance at December 31,	$	1,361	$	559	$	552