Employee Benefit Plans

3 Months Ended

Mar. 31, 2012

Employee Benefit Plans [Abstract]

EMPLOYEE BENEFIT PLANS

7. Employee Benefit Plans

Net periodic benefit costs for our pension and post-retirement benefits plans for the three months ended March 31, 2012 and 2011 are set forth in the following table:

																	Chesapeake
	Chesapeake						FPU						Chesapeake				Postretirement					FPU
	Pension Plan						Pension Plan						Pension SERP				Plan					Medical Plan
For the Three Months Ended March 31,	2012			2011			2012			2011			2012		2011		2012			2011		2012		2011
(in thousands)
Service cost	$	—		$	—		$	—		$	—		$	—	$	—	$	—		$	—	$	40	$	26
Interest cost		125			130			639			671			23		27		15			15		45		39
Expected return on plan assets		(109	)		(101	)		(658	)		(684	)		—		—		—			—		—		—
Amortization of prior service cost		(1	)		(1	)		—			—			5		5		(20	)		—		—		—
Amortization of net loss		85			39			44			—			11		10		18			—		23		5
Net periodic cost (benefit)		100			67			25			(13	)		39		42		13			15		108		70
Settlement expense		—			217			—			—			—		—		—			—		—		—
Amortization of pre-merger regulatory asset		—			—			190			190			—		—		—			—		2		2
Total periodic cost	$	100		$	284		$	215		$	177		$	39	$	42	$	13		$	15	$	110	$	72

We expect to record pension and postretirement benefit costs of approximately $1.9 million for 2012. Also included in the $1.9 million pension and postretirement benefit costs for 2012 is $769,000 related to continued amortization of the FPU pension regulatory asset, which represents the portion attributable to FPU’s regulated energy operations of the changes in funded status that occurred but were not recognized as part of net periodic benefit costs prior to the merger. This was deferred as a regulatory asset by FPU prior to the merger to be recovered through rates pursuant to a previous order by the Florida PSC. The unamortized balance of this regulatory asset was $5.7 million and $5.9 million at March 31, 2012 and December 31, 2011, respectively.

During the three months ended March 31, 2012, we contributed $163,000 and $292,000 to the Chesapeake and FPU pension plans, respectively. We expect to contribute $1.3 million and $2.0 million to the Chesapeake and FPU pension plans, respectively, during the year 2012, which includes minimum contribution payments required in 2012 and any additional contribution payments that we plan on making to maintain a certain level of funding in those plans.

The Chesapeake Pension SERP, the Chesapeake Postretirement Plan and the FPU Medical Plan are unfunded and are expected to be paid out of our general funds. Cash benefits paid under the Chesapeake Pension SERP for the three months ended March 31, 2012, were $22,000; we expect to pay additional cash benefits of approximately $88,000 in 2012. Cash benefits paid for the Chesapeake Postretirement Plan, primarily for medical claims for the three months ended March 31, 2012, totaled $13,000 and we have estimated that approximately $87,000 will be paid for such benefits in 2012. Cash benefits paid for the FPU Medical Plan, primarily for medical claims for the three months ended March 31, 2012, totaled $58,000. We have estimated that approximately $193,000 will be paid for such benefits in 2012.