Pension Plan and Other Postretirement Benefits

6 Months Ended

Jun. 30, 2011

Pension Plan and Other Postretirement Benefits

Pension Plan and Other Postretirement Benefits

Note 6. Pension Plan and Other Postretirement Benefits

The Company provides a qualified, defined-benefit, non-contributory pension plan for substantially all employees. The Company makes annual contributions to fund the amounts accrued for the qualified pension plan. The Company also maintains an unfunded, non-qualified, supplemental executive retirement plan. The costs of the plans are charged to expense or are capitalized in utility plant as appropriate.

The Company offers medical, dental, vision, and life insurance benefits for retirees and their spouses and dependents. Participants are required to pay a premium, which offsets a portion of the cost.

Cash payments by the Company related to pension plans and other postretirement benefits were $8.1 million for the six months ended June 30, 2011 compared to $6.6 million for the same period last year. The estimated cash contribution to the pension plans for 2011 is $24.6 million. The estimated contribution to the other benefit plans for 2011 is $7.0 million.

The following table lists components of the pension plans and other postretirement benefits. The data listed under “pension plan” includes the qualified pension plan and the non-qualified supplemental executive retirement plan. The data listed under “other benefits” is for all other postretirement benefits.

	Three Months Ended June 30												Six Months Ended June 30
	Pension Plan						Other Benefits						Pension Plan						Other Benefits
	2011			2010			2011			2010			2011			2010			2011			2010
Service cost	$	2,716		$	2,451		$	1,002		$	793		$	5,857		$	4,902		$	1,981		$	1,586
Interest cost	3,600			3,332			955			783			7,342			6,664			1,788			1,566
Expected return on plan assets	(2,231		)	(2,051		)	(347		)	(279		)	(4,475		)	(4,102		)	(688		)	(558		)
Recognized net initial APBO (1)	N/A			N/A			69			69			N/A			N/A			138			138
Amortization of prior service cost	1,579			1,649			29			29			3,159			3,298			58			58
Recognized net actuarial loss	955			524			583			392			2,034			1,048			1,008			784
Net periodic benefit cost	$	6,619		$	5,905		$	2,291		$	1,787		$	13,917		$	11,810		$	4,285		$	3,574

(1)APBO — Accumulated postretirement benefit obligation