Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2016

The following table sets forth the plans' funded status as of December 31, 2016 and 2015. The measurement of assets and obligations of the plans is as of December 31, 2016 and 2015.

Obligations and Funded Status At December 31	2016			2015

Change in Benefit Obligation
Pension benefit obligation beginning of year	$	39,469		$	40,884
Service cost		1,018			1,166
Interest cost		1,599			1,515
Actuarial gain		(43	)		(2,873	)
Benefit payments		(1,289	)		(1,223	)
Pension benefit obligation end of year		40,754			39,469

Change in Plan Assets
Fair value of plan assets beginning of year		31,835			30,575
Actual return on plan assets		2,621			183
Employer contributions		2,300			2,300
Benefits paid		(1,289	)		(1,223	)
Fair value of plan assets end of year		35,467			31,835

Funded Status of Plans at End of Year	$	(5,287	)	$	(7,634	)

Changes in Plan Assets and Benefit Obligations Recognized in Regulatory Assets

Changes in plan assets and benefit obligations recognized in regulatory assets are as follows:

	2016			2015
Net gain arising during the period	$	(432	)	$	(826	)
Recognized net actuarial loss		(561	)		(705	)
Recognized prior service credit		13			13
Total changes in regulatory asset during the year	$	(980	)	$	(1,518	)

Amounts Recognized in Regulatory Assets That Have Not Yet Been Recognized as Components of Net Periodic Benefit Cost

Amounts recognized in regulatory assets that have not yet been recognized as components of net periodic benefit cost consist of the following at December 31:

	2016			2015
Net loss	$	9,454		$	10,447
Prior service credit		(114	)		(127	)
Regulatory asset	$	9,340		$	10,320

Components of Net Periodic Benefit Cost

Components of net periodic benefit cost are as follows:

	2016			2015			2014
Service cost	$	1,018		$	1,166		$	952
Interest cost		1,599			1,515			1,444
Expected return on plan assets		(2,233	)		(2,229	)		(1,986	)
Amortization of loss		561			705			126
Amortization of prior service credit		(13	)		(13	)		(13	)
Rate-regulated adjustment		1,368			1,156			1,659
Net periodic benefit cost	$	2,300		$	2,300		$	2,182

Regulatory Assets to be Reclassified into Net Periodic Benefit Cost Over Next Fiscal Year

The estimated costs for the defined benefit pension plans relating to the December 31, 2016 balance sheet that will be amortized from regulatory assets into net periodic benefit cost over the next fiscal year are as follows:

Net loss	$	500
Net prior service credit		(13	)
		487

Benefit Payments Expected to be Paid

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid in each of the next five years and the subsequent five years in the aggregate:

2017				2018				2019				2020				2021					2022-2026
$	1,600			$	1,731			$	1,865			$	1,875			$	1,938			$	11,218

Projected Benefit Obligation and Fair Value of Plan Assets

The following tables show the projected benefit obligation, the accumulated benefit obligation and the fair value of plan assets as of December 31:

	2016		2015
Projected benefit obligation	$	40,754	$	39,469
Fair value of plan assets		35,467		31,835

Accumulated Benefit Obligation and Fair Value of Plan Assets

	2016		2015
Accumulated benefit obligation	$	37,822	$	36,302
Fair value of plan assets		35,467		31,835

Weighted-Average Assumptions Used

Weighted-average assumptions used to determine benefit obligations at December 31:

	2016			2015
Discount rate		4.00	%		4.20	%
Rate of compensation increase		2.50% - 3.00	%		2.50% - 3.00	%

Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31:

	2016			2015			2014
Discount rate		4.20	%		3.80	%		4.65	%
Expected long-term return on plan assets		6.75	%		7.00	%		7.00	%
Rate of compensation increase		2.50% - 3.00	%		3.00	%		3.00	%

Fair Values of Pension Plan Assets

The fair values of the Company's pension plan assets at December 31, 2016 and 2015 by asset category and fair value hierarchy level are as follows. The majority of the valuations are based on quoted prices on active markets (Level 1), with the remaining valuations based on broker/dealer quotes, active market makers, models, and yield curves (Level 2).

	Total Fair Value				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)
Asset Category	2016		2015		2016		2015		2016		2015
Cash and Money Market Funds (a)	$	635	$	1,205	$	635	$	1,205	$	-	$	-
Equity Securities:
Common Equity Securities (b)		2,969		2,686		2,969		2,686		-		-
Equity Mutual Funds (c)		21,107		18,017		21,107		18,017		-		-
Fixed Income Securities:
U.S. Treasury Obligations		853		833		-		-		853		833
Corporate and Foreign Bonds (d)		3,439		3,427		-		-		3,439		3,427
Fixed Income Mutual Funds (e)		6,464		5,667		6,464		5,667		-		-
Total Plan Assets	$	35,467	$	31,835	$	31,175	$	27,575	$	4,292	$	4,260

(a)

The portfolios are designed to keep approximately three months of distributions in immediately available funds. The Company was more heavily-weighted in cash as of December 31, 2015 due to market volatility.

(b)

This category includes investments in U.S. common stocks and foreign stocks trading in the U.S. widely distributed among consumer discretionary, consumer staples, healthcare, information technology, financial services, telecommunications, industrials and energy. The individual stocks are primarily large cap stocks which track with the S&P 500.

(c)

This category currently includes a majority of investments in closed-end mutual funds as well as domestic equity mutual funds and international mutual funds which give the portfolio exposure to mid and large cap index funds as well as international diversified index funds.

(d)

This category currently includes only U.S. corporate bonds and notes widely distributed among consumer discretionary, consumer staples, healthcare, information technology and financial services.

(e)

This category includes fixed income investments in mutual funds which include government, corporate and mortgage securities of both the U.S. and other countries. The mortgage-backed securities and non-U.S. corporate and sovereign investments add further diversity to the fixed income portion of the portfolio.