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Investor Presentaiton

L (in millions) Appendix 45 Income Tax Reconciliation (Fourth Quarter) Three Months Ended December 31, 2020 2019 Income Before Income Taxes $47.8 $60.1 Variance ($12.3) Income tax calculated at federal statutory rate 10.0 21.0% 12.6 20.8% (2.6) Permanent or flow through adjustments: State income, net of federal provisions (1.6) (3.3%) (1.6) Flow-through repairs deductions (8.9) (18.7%) (7.1) (11.8%) (1.8) Production tax credits (5.5) (11.6%) (4.2) (7.1%) (1.3) Share-based compensation 0.6 1.3% (0.2) (0.3%) 0.8 Amortization of excess deferred income taxes (0.3) (0.6%) 0.2 0.4% (0.5) Release of unrecognized tax benefit Impact of Tax Cuts and Jobs Act (0.2) (0.3%) 0.2 Plant and depreciation of flow-through items Prior year permanent return to accrual adjustments (0.2) (0.4%) (1.5) (2.4%) 1.3 0.0 0.1% 0.0 0.1% Other, net 0.1 0.1% 0.4 0.7% (0.3) Sub-total (15.8) (33.1%) (12.5) (20.7%) (3.3) Income Tax (Benefit) Expense $ (5.8) (12.1%) $ 0.1 0.2% $ (5.9) NorthWestern' Energy Delivering a Bright Future
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