Pension Plan and Other Postretirement Benefits

6 Months Ended

Jun. 30, 2013

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 benefit plans were $17.8 million for the six months ended June 30, 2013 compared to $15.8 million for the six months ended June 30, 2012. The 2013 estimated cash contribution to the pension plans is $31.3 million and to the other postretirement benefit plans is $9.6 million.

The following table lists components of net periodic benefit costs for 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
	Pension Plan						Other Benefits
	2013			2012			2013			2012
Service cost	$	4,658		$	3,709		$	1,695		$	1,330
Interest cost	4,063			3,864			1,109			1,005
Expected return on plan assets	(3,565		)	(2,886		)	(598		)	(448		)
Recognized net initial APBO (1)	N/A			N/A			2			69
Amortization of prior service cost	1,541			1,570			20			29
Recognized net actuarial loss	2,224			2,075			916			822
Net periodic benefit cost	$	8,921		$	8,332		$	3,144		$	2,807

	Six months Ended June 30
	Pension Plan						Other Benefits
	2013			2012			2013			2012
Service cost	$	9,316		$	7,725		$	3,390		$	2,747
Interest cost	8,126			7,643			2,218			1,972
Expected return on plan assets	(7,130		)	(5,779		)	(1,196		)	(916		)
Recognized net initial APBO (1)	N/A			N/A			4			138
Amortization of prior service cost	3,082			3,141			40			58
Recognized net actuarial loss	4,448			4,001			1,832			1,586
Net periodic benefit cost	$	17,842		$	16,731		$	6,288		$	5,585

(1) APBO - Accumulated postretirement benefit obligation