Employee Benefit Plans

Net periodic benefit costs for our pension and post-retirement benefits plans for the three and nine months ended September 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 September 30,	2013			2012			2013			2012			2013		2012		2013			2012			2013		2012
(in thousands)
Service cost	$	—		$	—		$	—		$	—		$	—	$	—	$	—		$	—		$	—	$	40
Interest cost	102			125			594			638			21		23		12			15			16		45
Expected return on plan assets	(126		)	(108		)	(719		)	(658		)	—		—		—			—			—		—
Amortization of prior service cost	—			(1		)	—			—			5		5		(19		)	(20		)	—		—
Amortization of net loss	57			85			81			43			16		11		18			18			—		23
Net periodic cost (benefit)	33			101			(44		)	23			42		39		11			13			16		108
Amortization of pre-merger regulatory asset	—			—			191			190			—		—		—			—			2		2
Total periodic cost	$	33		$	101		$	147		$	213		$	42	$	39	$	11		$	13		$	18	$	110



	Chesapeake Pension Plan						FPU Pension Plan						Chesapeake Pension SERP				Chesapeake Postretirement Plan						FPU Medical Plan
For the Nine Months Ended September 30,	2013			2012			2013			2012			2013		2012		2013			2012			2013		2012
(in thousands)
Service cost	$	—		$	—		$	—		$	—		$	—	$	—	$	—		$	—		$	—	$	120
Interest cost	307			375			1,782			1,916			62		68		36			45			47		135
Expected return on plan assets	(378		)	(326		)	(2,156		)	(1,973		)	—		—		—			—			—		—
Amortization of prior service cost	(1		)	(4		)	—			—			14		15		(58		)	(60		)	—		—
Amortization of net loss	171			255			243			131			48		34		55			53			—		68
Net periodic cost (benefit)	99			300			(131		)	74			124		117		33			38			47		323
Amortization of pre-merger regulatory asset	—			—			571			571			—		—		—			—			6		6
Total periodic cost	$	99		$	300		$	440		$	645		$	124	$	117	$	33		$	38		$	53	$	329

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 $4.6 million and $5.2 million at September 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 nine months ended September 30, 2013:



For Three Months Ended September 30, 2013	Chesapeake Pension Plan		FPU Pension Plan		Chesapeake Pension SERP		Chesapeake Postretirement Plan			FPU Medical Plan		Total
(in thousands)
Prior service cost (credit)	$	—	$	—	$	5	$	(19	)	$	—	(14		)
Net loss	57		81		16		18			—		172
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 Nine Months Ended September 30, 2013	Chesapeake Pension Plan			FPU Pension Plan		Chesapeake Pension SERP		Chesapeake Postretirement Plan			FPU Medical Plan		Total
(in thousands)
Prior service cost (credit)	$	(1	)	$	—	$	14	$	(58	)	$	—	(45		)
Net loss	171			243		48		55			—		517
Total recognized in net periodic benefit cost	$	170		$	243	$	62	$	(3	)	$	—	$	472
Recognized from accumulated other comprehensive loss ⁽¹⁾	$	170		$	46	$	62	$	(3	)	$	—	$	275
Recognized from regulatory asset	—			197		—		—			—		197
Total	$	170		$	243	$	62	$	(3	)	$	—	$	472


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

During the three and nine months ended September 30, 2013, we contributed $142,000 and $233,000, respectively, to the Chesapeake pension plan. We also contributed $211,000 and $421,000, respectively, to the FPU pension plan during the three and nine months ended September 30, 2013. 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 and nine months ended September 30, 2013, were $22,000 and $67,000, 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 and nine months ended September 30, 2013, were $16,000 and $53,000, 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 nine months ended September 30, 2013, were $50,000 and $91,000, respectively. We estimate that approximately $258,000 will be paid for such benefits under the FPU Medical Plan in 2013.