Income Taxes

9 Months Ended

Sep. 30, 2013

Income Taxes

Income Taxes

Note 12— Income Taxes

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

	Three Months Ended						Nine Months Ended						Twelve Months Ended
	2013			2012			2013			2012			2013			2012
Consolidated provision for income taxes	$	14.1		$	15.5		$	28.7		$	28.4		$	34.4		$	34.3
Consolidated effective federal and state income tax rates	37.1		%	37.7		%	37.3		%	38.2		%	37.3		%	38.5		%

The effective income tax rate for the three, nine and twelve month periods ended September 30, 2013 is lower than comparable periods in 2012 primarily due to higher equity AFUDC income in 2013 compared with 2012.

On September 13, 2013, the Internal Revenue Service and the Treasury Department released final regulations under Code Sections 162(a) and 263(a) on the deduction and capitalization of expenditures related to tangible property. These regulations apply to tax years beginning on or after January 1, 2014. We are currently analyzing their impact on our financial statements. We do not expect the regulations to have a material impact to our effective tax rate.

We do not have any unrecognized tax benefits as of September 30, 2013. We did not recognize any significant interest or penalties in any of the periods presented. We do not expect any significant changes to our unrecognized tax benefits over the next twelve months.