Income Taxes

6 Months Ended

Jun. 30, 2012

Income Taxes

Income Taxes

Note 12— Income Taxes

The following table shows the changes in our provision for income taxes (in millions) and our consolidated effective federal and state income tax rates for the applicable periods ended June 30, 2011:

	Three Months Ended						Six-Months Ended						Twelve Months Ended
	2012			2011			2012			2011			2012			2011
Consolidated provision for income taxes	$	6.8		$	5.6		$	13.0		$	12.8		$	34.4		$	28.9
Consolidated effective federal and state income tax rates	38.7		%	37.8		%	38.7		%	37.8		%	38.8		%	35.5		%

The effective tax rates for the second quarter of 2012 and the six months ended June 30, 2012 are higher than 2011 mainly due to amortization to tax expense of tax benefits previously flowed through to ratepayers related to costs of removal. The 2012 twelve months ended June 30, 2012 effective tax is higher than the 2011 comparable period primarily due to substantially lower AFUDC income.

We do not have any unrecognized tax benefits as of June 30, 2012. We recognized interest or penalties of $0.0 million and $0.1 million during 2011 and 2010, respectively, related to unrecognized tax benefits in other expenses and on the balance sheet. We do not expect any significant changes to our unrecognized tax benefits over the next twelve months.