Pension Plan and Other Postretirement Benefits

6 Months Ended

Jun. 30, 2013

Compensation and Retirement Disclosure [Abstract]

Pension Plan and Other Postretirement Benefits

12. Pension Plan and Other Postretirement Benefits

Pension Plan—Components of net periodic pension benefit cost of the Company’s noncontributory funded pension plan are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2013			2012			2013			2012
Service Cost—Benefit Earned During the Period	$	1,418		$	1,248		$	2,836		$	2,542
Interest Cost on Projected Benefit Obligation		3,036			3,125			6,072			6,233
Expected Return on Assets		(3,632	)		(3,607	)		(7,264	)		(7,215	)
Amortization of Prior-Service Cost:
From Regulatory Asset		83			100			166			199
From Other Comprehensive Income1		2			2			4			5
Amortization of Net Actuarial Loss:
From Regulatory Asset		1,663			1,255			3,326			2,454
From Other Comprehensive Income1		45			34			90			66
Net Periodic Pension Cost	$	2,615		$	2,157		$	5,230		$	4,284

1Corporate cost included in Other Nonelectric Expenses.

Cash flows—The Company made a discretionary plan contribution of $10,000,000 in January 2013. The Company currently is not required and does not expect to make an additional contribution to the plan in 2013. The Company also made a discretionary plan contribution of $10,000,000 in January 2012.

Executive Survivor and Supplemental Retirement Plan—Components of net periodic pension benefit cost of the Company’s unfunded, nonqualified benefit plan for executive officers and certain key management employees are as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2013		2012		2013		2012
Service Cost—Benefit Earned During the Period	$	13	$	12	$	26	$	23
Interest Cost on Projected Benefit Obligation		352		369		704		739
Amortization of Prior-Service Cost:
From Regulatory Asset		5		6		10		11
From Other Comprehensive Income1		13		13		26		26
Amortization of Net Actuarial Loss:
From Regulatory Asset		52		38		104		77
From Other Comprehensive Income2		78		43		156		86
Net Periodic Pension Cost	$	513	$	481	$	1,026	$	962
1Amortization of Prior Service Costs from Other Comprehensive Income Charged to:
Electric Operation and MaintenanceExpenses	$	5	$	5	$	10	$	10
Other Nonelectric Expenses		8		8		16		16
2Amortization of Net Actuarial Loss from Other Comprehensive Income Charged to:
Electric Operation and Maintenance Expenses	$	48	$	36	$	96	$	72
Other Nonelectric Expenses		30		7		60		14

Postretirement Benefits—Components of net periodic postretirement benefit cost for health insurance and life insurance benefits for retired OTP and corporate employees, net of the effect of the Medicare Part D Subsidy:

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2013			2012			2013			2012
Service Cost—Benefit Earned During the Period	$	441		$	374		$	882		$	772
Interest Cost on Projected Benefit Obligation		610			630			1,220			1,287
Amortization of Transition Obligation:
From Regulatory Asset		--			182			--			364
From Other Comprehensive Income1		--			5			--			10
Amortization of Prior-Service Cost:
From Regulatory Asset		51			52			102			103
From Other Comprehensive Income1		1			1			2			2
Amortization of Net Actuarial Loss:
From Regulatory Asset		248			135			496			321
From Other Comprehensive Income1		6			4			12			9
Net Periodic Postretirement Benefit Cost	$	1,357		$	1,383		$	2,714		$	2,868
Effect of Medicare Part D Subsidy	$	(564	)	$	(533	)	$	(1,128	)	$	(1,020	)
1 Corporate cost included in Other Nonelectric Expenses.