Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Components of Income Tax (Expense) Benefit

Income tax (expense) benefit from continuing operations for the years ended December 31 was:


	2025			2024			2023
	(in millions)
Current:
Federal	$	12.4		$	16.5		$	0.8
State		(1.8	)		(0.8	)		(1.0	)
Current income tax benefit (expense)		10.6			15.7			(0.2	)
Deferred:
Federal		(52.8	)		(47.2	)		(30.9	)
State		(1.5	)		(4.8	)		5.5
Deferred income tax (expense)		(54.3	)		(52.0	)		(25.4	)
Income tax (expense)	$	(43.7	)	$	(36.3	)	$	(25.6	)

Schedule of Effective Income Tax Rate Reconciliation

The effective tax rate differs from the federal statutory rate for the years ended December 31, as follows:


	2025					2024					2023
	(dollars in millions)
Income before income taxes	$	343.5				$	320.0				$	301.6

U.S. Federal statutory rate	$	72.1		21.0	%	$	67.2		21.0	%	$	63.3		21.0	%
State and local income taxes, net of federal income tax effect (a)		2.8		0.8	%		4.7		1.5	%		(3.4	)	(1.1	)%
Tax credits
Energy-related tax credits, net of transferability discount		(15.3	)	(4.5	)%		(15.0	)	(4.7	)%		(16.9	)	(5.6	)%
Other		(2.2	)	(0.7	)%		(2.8	)	(0.9	)%		(2.7	)	(0.9	)%
Nontaxable or Nondeductible Items		3.2		0.9	%		1.9		0.6	%		1.9		0.6	%
Changes in Unrecognized Tax Benefits		1.6		0.5	%		0.9		0.3	%		0.9		0.3	%
Regulatory
Amortization of excess deferred income taxes (b)		(5.3	)	(1.5	)%		(7.7	)	(2.4	)%		(8.8	)	(2.9	)%
Flow-through adjustments (c)		(5.0	)	(1.5	)%		(7.0	)	(2.2	)%		(5.3	)	(1.8	)%
Other		(2.0	)	(0.6	)%		(0.6	)	(0.2	)%		0.2		0.1	%
Other		(6.2	)	(1.7	)%		(5.3	)	(1.7	)%		(3.6	)	(1.2	)%
Effective Tax Rate	$	43.7		12.7	%	$	36.3		11.3	%	$	25.6		8.5	%

(a)

State taxes in Colorado made up the majority (greater than 50 percent) of the tax effect in this category. The state effective tax rate contains the tax expense attributable to multiple statutory state rate changes in the Company's state jurisdictions. For the year ended December 31, 2023, we recognized an $8.2 million tax benefit from a Nebraska income tax rate decrease.

(b)

Primarily TCJA - see Note 2 for additional information.

(c)

Flow-through adjustments related primarily to accounting method changes for tax purposes that allow us to take a current tax deduction for repair costs and certain indirect costs. We recorded a deferred income tax liability in recognition of the temporary difference created between book and tax treatment and flowed the tax benefit through to tax expense. A regulatory asset was established to reflect the recovery of future increases in taxes payable from customers as the temporary differences reverse. As a result of this regulatory treatment, we continue to record tax benefits consistent with the flow-through method.

Schedule of Income Taxes (Paid) Received

Income taxes (paid) received for the years ended December 31 were as follows:


	2025			2024			2023
	(in millions)
Federal:
Direct payments (net of refunds)	$	(3.5	)	$	(0.9	)	$	—
Transferred Renewable Credits (net of discount)		16.0			16.0			—
Total Federal	$	12.5		$	15.1		$	—

State:
Arkansas (a)	$	(0.7	)	N/A			N/A
Colorado (a)		(0.6	)		(0.2	)	N/A
Kansas (a)	N/A			N/A				(0.2	)
Nebraska		(2.4	)		(0.3	)		(0.8	)
Other		—			(0.2	)		—
Total State	$	(3.7	)	$	(0.7	)	$	(1.0	)

Total income taxes (paid) received	$	8.8		$	14.4		$	(1.0	)

(a)

N/A indicates the amount of income taxes paid during the year does not meet the 5% disaggregation threshold

Schedule of Deferred Tax Assets and Liabilities

The temporary differences, which gave rise to the net deferred tax liability, for the years ended December 31 were as follows:


	2025			2024
	(in millions)
Deferred tax assets:
Regulatory liabilities	$	68.5		$	70.9
State tax credits		8.1			8.4
Federal NOL		79.8			114.9
State NOL		8.1			12.4
Partnership		9.9			11.6
Credit Carryovers (net of discount)		104.1			109.5
Other deferred tax assets		40.2			35.4
Total deferred tax assets		318.7			363.1

Deferred tax liabilities:
Accelerated depreciation, amortization, and other property-related differences		(753.7	)		(729.2	)
Regulatory assets		(39.8	)		(49.5	)
Goodwill		(84.0	)		(75.9	)
State deferred tax liability		(88.9	)		(88.7	)
Other deferred tax liabilities		(50.2	)		(44.9	)
Total deferred tax liabilities		(1,016.6	)		(988.2	)

Net deferred tax liability	$	(697.9	)	$	(625.1	)

Summary of Operating Loss and Tax Credit Carryforwards

At December 31, 2025, we have federal NOL and state NOL and tax credit carryforwards that will expire at various dates as follows:


	Amounts		Expiration Dates
	(in millions)
Federal NOL Carryforward	$	380.1	No expiration
Federal Tax Credit Carryforward (net of discount)	$	104.1	2030-2044

State NOL Carryforward (a)	$	142.3	2026-2044
State Tax Credit Carryforward	$	8.1	2030-2038

(a)

The carryforward balance is reflected on the basis of apportioned tax losses to jurisdictions imposing state income taxes.

Reconciliation of Unrecognized Tax Benefits

The following table reconciles the total amounts of unrecognized tax benefits, without interest, at the beginning and end of the period included in Other deferred credits and other liabilities on the accompanying Consolidated Balance Sheets:


Changes in Uncertain Tax Positions:	2025			2024			2023
	(in millions)
Beginning balance	$	7.8		$	13.7		$	11.9
Additions for prior year tax positions		0.8			0.6			—
Reductions for prior year tax positions		(0.2	)		(8.1	)		(0.3	)
Additions for current year tax positions		0.7			1.6			2.1
Ending balance	$	9.1		$	7.8		$	13.7