Pension Plan and Other Postretirement Benefits

9 Months Ended

Sep. 30, 2016

Compensation and Retirement Disclosure [Abstract]

Pension Plan and Other Postretirement Benefits

11. 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 September 30,						Nine Months Ended September 30,
(in thousands)	2016			2015			2016			2015
Service Cost—Benefit Earned During the Period	$	1,376		$	1,514		$	4,139		$	4,544
Interest Cost on Projected Benefit Obligation		3,603			3,336			10,646			10,008
Expected Return on Assets		(4,857	)		(4,595	)		(14,590	)		(13,787	)
Amortization of Prior-Service Cost:
From Regulatory Asset		48			47			142			141
From Other Comprehensive Income1		1			2			3			4
Amortization of Net Actuarial Loss:
From Regulatory Asset		1,411			1,669			3,865			5,007
From Other Comprehensive Income1		32			42			95			128
Net Periodic Pension Cost	$	1,614		$	2,015		$	4,300		$	6,045
1Corporate cost included in Other Nonelectric Expenses.

Cash flows—The Company made discretionary plan contributions totaling $10,000,000 in January 2016. The Company currently is not required and does not expect to make an additional contribution to the plan in 2016. The Company also made discretionary plan contributions totaling $10,000,000 in January 2015.

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 September 30,				Nine Months Ended September 30,
(in thousands)	2016		2015		2016		2015
Service Cost—Benefit Earned During the Period	$	63	$	48	$	189	$	142
Interest Cost on Projected Benefit Obligation		417		380		1,251		1,142
Amortization of Prior-Service Cost:
From Regulatory Asset		4		5		12		13
From Other Comprehensive Income1		9		9		28		28
Amortization of Net Actuarial Loss:
From Regulatory Asset		74		83		220		250
From Other Comprehensive Income2		111		151		334		452
Net Periodic Pension Cost	$	678	$	676	$	2,034	$	2,027
1Amortization of Prior Service Costs from Other Comprehensive Income Charged to:
Electric Operation and Maintenance Expenses	$	3	$	3	$	11	$	11
Other Nonelectric Expenses		6		6		17		17
2Amortization of Net Actuarial Loss from Other Comprehensive Income Charged to:
Electric Operation and Maintenance Expenses	$	68	$	78	$	204	$	233
Other Nonelectric Expenses		43		73		130		219

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 Medicare Part D Subsidy:

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2016			2015			2016			2015
Service Cost—Benefit Earned During the Period	$	365		$	324		$	976		$	972
Interest Cost on Projected Benefit Obligation		794			524			1,877			1,573
Amortization of Prior-Service Cost:
From Regulatory Asset		34			52			100			154
From Other Comprehensive Income1		1			1			3			4
Amortization of Net Actuarial Loss:
From Regulatory Asset		284			—			284			—
From Other Comprehensive Income1		7			—			7			—
Net Periodic Postretirement Benefit Cost	$	1,485		$	901		$	3,247		$	2,703
Effect of Medicare Part D Subsidy	$	(177	)	$	(372	)	$	(692	)	$	(1,115	)
1Corporate cost included in Other Nonelectric Expenses.