v3.26.1
INCOME TAXES (Tables)
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Schedule of effective income tax rate reconciliation
The provision for income taxes differs from the amount of income tax determined by applying the applicable United States statutory federal income tax rate to income before income taxes as a result of the following:
Three Months Ended June 30, 2026Three Months Ended June 30, 2025
(in millions)AmountEffective Tax RateAmountEffective Tax Rate
Income before income taxes
$64.9 $67.5 
United States federal statutory income tax rate$13.6 21.0 %$14.2 21.0 %
State and local income taxes net of federal tax effect (1)
3.9 6.0 %4.2 6.3 %
Tax credits
PTCs, net (2)
(4.8)(7.3)%(4.1)(6.1)%
Other(0.7)(1.0)%(0.7)(1.1)%
Nontaxable or nondeductible items
AFUDC-Equity (3)
(1.1)(1.6)%(0.3)(0.5)%
Other0.5 0.7 %0.4 0.6 %
Other adjustments
Federal excess deferred tax amortization (4)
(1.9)(3.0)%(2.2)(3.2)%
Other, net0.1 — %0.8 1.2 %
Total income tax expense$9.6 14.8 %$12.3 18.2 %
Six Months Ended June 30, 2026Six Months Ended June 30, 2025
(in millions)AmountEffective Tax RateAmountEffective Tax Rate
Income before income taxes
$164.0 $159.8 
United States federal statutory income tax rate$34.4 21.0 %$33.6 21.0 %
State and local income taxes net of federal tax effect (1)
9.9 6.0 %9.9 6.2 %
Tax credits
PTCs, net (2)
(12.3)(7.5)%(9.9)(6.2)%
Other(1.6)(1.0)%(1.7)(1.1)%
Nontaxable or nondeductible items
AFUDC-Equity (3)
(2.4)(1.4)%(1.0)(0.7)%
Other1.2 0.8 %0.9 0.6 %
Other adjustments
Federal excess deferred tax amortization (4)
(4.8)(3.0)%(5.0)(3.1)%
Other, net0.4 0.2 %2.0 1.3 %
Total income tax expense$24.8 15.1 %$28.8 18.0 %

(1)    State taxes in Wisconsin made up the majority of the tax effect in this category.

(2)    PTCs are an inflation adjusted United States federal income tax credit for each kilowatt hour of electricity generated by certain renewable energy projects.

(3)    AFUDC-Equity represents the cost of capital (i.e. ROE) that is added to the construction cost of an asset while it is being built. The tax benefit for regulated utilities from AFUDC-Equity is a regulatory gross-up to allow the recovery of income taxes on the equity portion of construction costs, even though it is not a tax deductible expense.

(4)    The Tax Cuts and Jobs Act of 2017 required us to remeasure our deferred income taxes and we began to amortize the resulting excess deferred income taxes beginning in 2018, in accordance with normalization requirements. The decrease in income tax expense related to the amortization of the deferred tax benefits is offset by a decrease in revenue as the benefits are returned to customers, resulting in no impact on net income.
Schedule of cash paid (received) for income taxes
The table below is a summary of income taxes paid by jurisdiction:
Six Months Ended June 30
(in millions)20262025
Federal
$9.7 
(1)
$4.9 
(2)
State
8.4 4.9 
Total income taxes paid, net$18.1 $9.8 

(1)    Amount is net of $10.7 million of cash received, related to 2026 and 2025 PTCs that were sold to third parties.

(2)    Amount is net of $9.7 million of cash received, related to 2025 and 2024 PTCs that were sold to third parties.

Income taxes paid, net exceeded five percent of total income taxes paid, net in the following jurisdiction:
Six Months Ended June 30
(in millions)20262025
Wisconsin
$8.4 $4.9