INCOME TAXES

9 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

INCOME TAXES

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 September 30				Nine Months Ended September 30
	2013		2012		2013		2012
Effective Tax Rate	37.7	%	25.0	%	37.1	%	30.5	%

Our effective tax rate normally differs from the federal statutory tax rate of 35% due to additional provision for state income tax obligations. Other significant items that had an impact on our effective tax rates are noted below.

Our effective tax rates for the three and nine months ended September 30, 2012, were lower than the federal statutory tax rate of 35%. These differences were partially due to a $5.9 million decrease in the provision for income taxes resulting from our 2013 rate case settlement agreement. In the third quarter of 2012, we recorded a regulatory asset after the settlement agreement authorized recovery of deferred income taxes expensed in previous years in connection with the 2010 federal health care reform. See Note 16, "Regulatory Environment," for more information. Our effective tax rates were also impacted by the federal income tax benefit of tax credits related to wind production and other miscellaneous tax adjustments.

During the three and nine months ended September 30, 2013, there was not a significant change in our liability for unrecognized tax benefits.