Income Tax Expense (Tables)

12 Months Ended

Dec. 31, 2015



Income Tax Expense
Year Ended December 31	2015			2014			2013
Millions
Current Tax Expense
Federal (a)	—			$1.1			—
State (a)	$0.2			2.9			$0.1
Total Current Tax Expense	0.2			4.0			0.1
Deferred Tax Expense
Federal	19.4			25.3			22.9
State	6.5			8.2			6.5
Investment Tax Credit Amortization	(0.8		)	(0.8		)	(0.8		)
Total Deferred Tax Expense	25.1			32.7			28.6
Total Income Tax Expense		$25.3			$36.7			$28.7

(a)

For the years ended December 31, 2015, 2014, and 2013, the federal and state current tax expense was minimal due to NOLs which resulted from the bonus depreciation provisions of the Protecting Americans from Tax Hikes Act of 2015, the Tax Increase Prevention Act of 2014 and the American Taxpayer Relief Act of 2012. The federal and state NOLs will be carried forward to offset future taxable income. The year ended December 31, 2014 includes the resolution of an Internal Revenue Service examination for tax years 2005 through 2009 and the impacts of initiatives implemented on the 2013 federal and state tax returns to utilize tax carryforwards that may have expired.

Reconciliation of Taxes from Federal Statutory Rate to Total Income Tax Expense [Table Text Block]



Reconciliation of Taxes from Federal Statutory
Rate to Total Income Tax Expense
Year Ended December 31	2015			2014			2013
Millions
Income Before Non-Controlling Interest and Income Taxes		$166.8			$162.2			$133.4
Statutory Federal Income Tax Rate	35		%	35		%	35		%
Income Taxes Computed at 35 percent Statutory Federal Rate		$58.4			$56.8			$46.7
Increase (Decrease) in Tax Due to:
State Income Taxes – Net of Federal Income Tax Benefit	4.4			7.2			4.3
Regulatory Differences for Utility Plant	(0.6		)	(3.5		)	(2.2		)
Production Tax Credits	(37.0		)	(23.7		)	(19.2		)
Other	0.1			(0.1		)	(0.9		)
Total Income Tax Expense		$25.3			$36.7			$28.7

Deferred Tax Assets and Liabilities [Table Text Block]



Deferred Tax Assets and Liabilities
As of December 31	2015			2014
Millions
Deferred Tax Assets
Employee Benefits and Compensation		$105.4			$102.2
Property Related	126.6			102.7
NOL Carryforwards	186.4			156.5
Tax Credit Carryforwards	164.8			95.7
Power Purchase Agreements	73.0			51.8
Other	21.8			17.0
Gross Deferred Tax Assets	678.0			525.9
Deferred Tax Asset Valuation Allowance	(31.6		)	(22.1		)
Total Deferred Tax Assets		$646.4			$503.8
Deferred Tax Liabilities
Property Related		$1,053.0			$848.8
Regulatory Asset for Benefit Obligations	89.4			89.9
Unamortized Investment Tax Credits	26.0			10.3
Partnership Basis Differences	47.8			41.9
Other	10.0			16.1
Total Deferred Tax Liabilities		$1,226.2			$1,007.0
Net Deferred Income Taxes		$579.8			$503.2
Recorded as:
Net Current Deferred Tax Assets (a)	—			$7.5
Net Long-Term Deferred Tax Liabilities		$579.8		510.7
Net Deferred Income Taxes		$579.8			$503.2


(a)	For discussion of classification of deferred income taxes see Note 1. Operations and Significant Accounting Policies - New Accounting Standards - Balance Sheet Classification of Deferred Taxes.



NOL and Tax Credit Carryforwards
As of December 31	2015	2014
Millions
Federal NOL Carryforwards (a)	$493.0		$413.7
Federal Tax Credit Carryforwards	$113.6	$59.3
State NOL Carryforwards (a)	$228.6	$184.7
State Tax Credit Carryforwards (b)	$20.0	$14.7

NOL and Tax Credit Carryforwards [Table Text Block]



NOL and Tax Credit Carryforwards
As of December 31	2015	2014
Millions
Federal NOL Carryforwards (a)	$493.0		$413.7
Federal Tax Credit Carryforwards	$113.6	$59.3
State NOL Carryforwards (a)	$228.6	$184.7
State Tax Credit Carryforwards (b)	$20.0	$14.7


(a)	Pretax amounts.


(b)	Net of a $31.2 million valuation allowance as of December 31, 2015 ($21.7 million as of December 31, 2014).

Gross Unrecognized Income Tax Benefits [Table Text Block]



Gross Unrecognized Income Tax Benefits	2015			2014			2013
Millions
Balance at January 1		$2.0			$1.2			$2.7
Additions for Tax Positions Related to the Current Year	0.5			—			0.1
Additions for Tax Positions Related to Prior Years	0.7			1.0			1.3
Reductions for Tax Positions Related to Prior Years	(0.7		)	—			—
Reductions for Settlements	—			—			(2.9		)
Lapse of Statute	(0.1		)	(0.2		)	—
Balance as of December 31		$2.4			$2.0			$1.2