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Taxes (Tables)
3 Months Ended
Mar. 31, 2024
Income Tax Disclosure [Abstract]  
Effective Tax Rate Reconciliation

The consolidated income tax provision differs from the amount computed by applying the statutory federal income tax rate to income before income taxes, as follows:

 

 

 

MGE Energy

 

MGE

Three Months Ended March 31,

 

2024

 

2023

 

2024

 

2023

Statutory federal income tax rate

 

 

21.0

 

%

 

 

21.0

 

%

 

 

21.0

 

%

 

 

21.0

 

%

State income taxes, net of federal benefit

 

 

6.2

 

 

 

 

6.3

 

 

 

 

6.2

 

 

 

 

6.2

 

 

Amortized investment tax credits

 

 

(2.2

)

 

 

 

(0.8

)

 

 

 

(2.4

)

 

 

 

(0.8

)

 

Credit for electricity from renewable energy

 

 

(10.2

)

 

 

 

(6.0

)

 

 

 

(11.2

)

 

 

 

(6.5

)

 

AFUDC equity, net

 

 

(0.6

)

 

 

 

(0.5

)

 

 

 

(0.7

)

 

 

 

(0.5

)

 

Amortization of utility excess deferred tax - tax reform(a)

 

 

(6.2

)

 

 

 

(1.8

)

 

 

 

(6.7

)

 

 

 

(1.9

)

 

Other, net, individually insignificant

 

 

(0.3

)

 

 

 

(0.2

)

 

 

 

(0.4

)

 

 

 

(0.3

)

 

Effective income tax rate

 

 

7.7

 

%

 

 

18.0

 

%

 

 

5.8

 

%

 

 

17.2

 

%

 

(a)
Included are impacts of the 2017 Tax Act for the regulated utility for excess deferred taxes recognized using a normalization method of accounting in recognition of IRS rules that restrict the rate at which the excess deferred taxes may be returned to utility customers. For both the three months ended March 31, 2024 and 2023, MGE recognized $0.9 million. For the three months ended March 31, 2024, MGE recognized $1.0 million of deferred taxes not restricted by IRS normalization rules, compared to a net collection from customers of $0.3 million for the three months ended March 31, 2023.