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Investor Presentaiton

L (in millions) Appendix 54 Income Tax Reconciliation (Full Year) Twelve Months Ended December 31, 2020 2019 Variance Income Before Income Taxes $144.2 $182.2 ($38.0) Income tax calculated at federal statutory rate 30.3 21.0% 38.3 21.0% (8.0) Permanent or flow through adjustments: State income, net of federal provisions (1.5) (1.1%) 1.2 0.7% (2.7) Flow-through repairs deductions (23.8) (16.5%) (19.7) (10.8%) (4.1) Production tax credits (13.1) (9.1%) (11.5) (6.3%) (1.6) Amortization of excess deferred income taxes (1.0) (0.7%) (1.7) (0.9%) 0.7 Release of unrecognized tax benefit (22.8) (12.5%) 22.8 Impact of Tax Cuts and Jobs Act (0.2) (0.1%) 0.2 Plant and depreciation of flow-through items 0.1 0.1% (4.0) (2.2%) 4.1 Prior year permanent return to accrual adjustments Other, net (1.7) (1.2%) 0.6 0.3% (2.3) (0.3) (0.1%) (0.1) (0.1%) (0.2) Sub-total (41.3) (28.6%) (58.2) (31.9%) 16.9 Income Tax Benefit $ (11.0) (7.6%) $ (19.9) (10.9%) 8.9 NorthWestern Energy Delivering a Bright Future
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