Employee Benefit Plans

6 Months Ended

Jun. 30, 2013

Compensation and Retirement Disclosure [Abstract]

Employee Benefit Plans

Employee Benefit Plans

Net periodic benefit costs for our pension and post-retirement benefits plans for the three and six months ended June 30, 2013 and 2012 are set forth in the following tables:

	Chesapeake Pension Plan						FPU Pension Plan						Chesapeake Pension SERP				Chesapeake Postretirement Plan						FPU Medical Plan
For the Three Months Ended June 30,	2013			2012			2013			2012			2013		2012		2013			2012			2013		2012
(in thousands)
Service cost	$	—		$	—		$	—		$	—		$	—	$	—	$	—		$	—		$	—	$	40
Interest cost	103			125			594			639			20		22		12			15			16		45
Expected return on plan assets	(126		)	(109		)	(718		)	(657		)	—		—		—			—			—		—
Amortization of prior service cost	—			(2		)	—			—			5		5		(20		)	(20		)	—		—
Amortization of net loss	57			85			81			44			16		12		19			17			—		22
Net periodic cost (benefit)	34			99			(43		)	26			41		39		11			12			16		107
Amortization of pre-merger regulatory asset	—			—			191			191			—		—		—			—			2		2
Total periodic cost	$	34		$	99		$	148		$	217		$	41	$	39	$	11		$	12		$	18	$	109

	Chesapeake Pension Plan						FPU Pension Plan						Chesapeake Pension SERP				Chesapeake Postretirement Plan						FPU Medical Plan
For the Six Months Ended June 30,	2013			2012			2013			2012			2013		2012		2013			2012			2013		2012
(in thousands)
Service cost	$	—		$	—		$	—		$	—		$	—	$	—	$	—		$	—		$	—	$	80
Interest cost	205			250			1,188			1,278			41		45		24			30			32		90
Expected return on plan assets	(252		)	(218		)	(1,437		)	(1,315		)	—		—		—			—			—		—
Amortization of prior service cost	(1		)	(3		)	—			—			10		10		(39		)	(40		)	—		—
Amortization of net loss	114			170			162			88			32		23		36			35			—		45
Net periodic cost (benefit)	66			199			(87		)	51			83		78		21			25			32		215
Amortization of pre-merger regulatory asset	—			—			381			381			—		—		—			—			4		4
Total periodic cost	$	66		$	199		$	294		$	432		$	83	$	78	$	21		$	25		$	36	$	219

We expect to record pension and postretirement benefit costs of approximately $999,000 for 2013. Included in these costs 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 $4.8 million and $5.2 million at June 30, 2013 and December 31, 2012, respectively.

FPU continues to record as a regulatory asset a portion of the unrecognized pension and postretirement benefit costs related to its regulated operations after the merger pursuant to a Florida PSC order. The portion of the unrecognized pension and postretirement benefit costs related to FPU’s unregulated operations and Chesapeake’s operations is recorded to accumulated other comprehensive income/loss. The following table presents the amounts included in the regulatory asset and accumulated other comprehensive income/loss that were recognized as components of net periodic benefit cost during the three and six months ended June 30, 2013:

For Three Months Ended June 30, 2013	Chesapeake Pension Plan		FPU Pension Plan		Chesapeake SERP		Chesapeake Postretirement Plan			FPU Medical Plan		Total
(in thousands)
Prior service cost (credit)	$	—	$	—	$	5	$	(20	)	$	—	(15		)
Net loss	57		81		16		19			—		173
Total recognized in net periodic benefit cost	$	57	$	81	$	21	$	(1	)	$	—	$	158
Recognized from accumulated other comprehensive loss (1)	$	57	$	15	$	21	$	(1	)	$	—	$	92
Recognized from regulatory asset	—		66		—		—			—		66
Total	$	57	$	81	$	21	$	(1	)	$	—	$	158

For the Six Months Ended June 30, 2013	Chesapeake Pension Plan			FPU Pension Plan		Chesapeake SERP		Chesapeake Postretirement Plan			FPU Medical Plan		Total
(in thousands)
Prior service cost (credit)	$	(1	)	$	—	$	10	$	(39	)	$	—	(30		)
Net loss	114			162		32		36			—		344
Total recognized in net periodic benefit cost	$	113		$	162	$	42	$	(3	)	$	—	$	314
Recognized from accumulated other comprehensive loss (1)	$	113		$	31	$	42	$	(3	)	$	—	$	183
Recognized from regulatory asset	—			131		—		—			—		131
Total	$	113		$	162	$	42	$	(3	)	$	—	$	314

⁽¹⁾  See Note 8, “Accumulated Other Comprehensive Income (Loss).

During the three and six months ended June 30, 2013, we contributed $91,000 and $211,000, respectively, to the Chesapeake pension plan and FPU pension plan. We expect to contribute a total of $364,000 and $842,000 to the Chesapeake and FPU pension plans, respectively, during 2013, representing minimum contribution payments required in 2013.

The Chesapeake Pension Supplemental Executive Retirement Plan (“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 and six months ended June 30, 2013, were $23,000 and $45,000, respectively. We expect to pay total cash benefits of approximately $88,000 under the Chesapeake Pension SERP in 2013. Cash benefits paid for the Chesapeake Postretirement Plan, primarily for medical claims for the three months and six months ended June 30, 2013, were $13,000 and $34,000, respectively. We have estimated that approximately $97,000 will be paid for such benefits under the Chesapeake Postretirement Plan in 2013. Cash benefits paid for the FPU Medical Plan, primarily for medical claims for the three and six months ended June 30, 2013, were $22,000 and $39,000, respectively. We estimate that approximately $258,000 will be paid for such benefits under the FPU Medical Plan in 2013.