Income Taxes (Tables)

12 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Components Of Federal And State Income Taxes Included In The Consolidated Statements Of Income

The components of federal and state income taxes included in the Consolidated Statements of Income are as follows:

	Year Ended September 30
	2022		2021		2020
	(Thousands)
Current Income Taxes —
Federal	$	—	$	(10)	$	(42,548)
State	12,214		8,699		6,974
Deferred Income Taxes —
Federal	137,025		90,970		4,538
State	(32,610)		15,023		49,775
Total Income Taxes	$	116,629	$	114,682	$	18,739

Schedule Of Income Tax Reconciliation By Applying Federal Income Tax Rate

The following is a reconciliation of this difference:

	Year Ended September 30
	2022		2021		2020
	(Thousands)
U.S. Income (Loss) Before Income Taxes (1)	$	682,650	$	478,327	$	(105,046)
Income Tax Expense (Benefit), Computed at U.S. Federal Statutory Rate of 21%	$	143,357	$	100,449	$	(22,060)
State Valuation Allowance (2)	(24,850)		(5,560)		63,205
State Income Taxes (Benefit) (3)	8,736		24,300		(18,374)
Amortization of Excess Deferred Federal Income Taxes	(5,184)		(5,215)		(4,749)
Plant Flow Through Items	(814)		(1,503)		(2,848)
Stock Compensation	820		2,239		3,867
Federal Tax Credits	(5,701)		(310)		(217)
Miscellaneous	265		282		(85)
Total Income Taxes	$	116,629	$	114,682	$	18,739

(1)Amounts include the impact of deferred investment tax credits reported in Other Income (Deductions) on the Consolidated Statements of Income.

(2)During fiscal 2020, a valuation allowance was recorded against certain state deferred tax assets. During fiscal 2022, the valuation allowance was removed. See discussion below.

(3)The state income tax expense (benefit) shown above includes adjustments to the estimated state effective tax rates utilized in the calculation of deferred income taxes, including the Pennsylvania rate change discussed above.

Significant Components Of Deferred Tax Liabilities And Assets

Significant components of the Company’s deferred tax liabilities and assets were as follows:

	At September 30
	2022		2021
	(Thousands)
Deferred Tax Liabilities:
Property, Plant and Equipment	$	954,757	$	920,692
Pension and Other Post-Retirement Benefit Costs	30,132		23,240
Other	48,893		35,081
Total Deferred Tax Liabilities	1,033,782		979,013
Deferred Tax Assets:
Unrealized Hedging Losses	(215,187)		(170,155)
Tax Loss and Credit Carryforwards	(50,686)		(120,725)
Pension and Other Post-Retirement Benefit Costs	(37,250)		(53,765)
Other	(32,430)		(31,593)
Total Gross Deferred Tax Assets	(335,553)		(376,238)
Valuation Allowance	—		57,645
Total Deferred Tax Assets	(335,553)		(318,593)
Total Net Deferred Income Taxes	$	698,229	$	660,420

Summary of Changes in Valuation Allowances for Deferred Tax Assets

The following is a summary of changes in valuation allowances for deferred tax assets:

	Year Ended September 30
	2022		2021		2020
	(Thousands)
Balance at Beginning of Year	$	57,645	$	63,205	$	—
Additions	—		—		63,205
Deductions	57,645		5,560		—
Balance at End of Year	$	—	$	57,645	$	63,205

Summary of Operating Loss and Tax Credit Carryforwards

Tax carryforwards available, prior to valuation allowance, at September 30, 2022, were as follows:

Jurisdiction	Tax Attribute	Amount (Thousands)		Expires
Pennsylvania	Net Operating Loss	$	378,631	2030-2042
Federal	General Business Credits	20,677		2035-2042