Employee Benefit Plans

Net periodic benefit costs for our pension and post-retirement benefits plans for the three and nine months ended September 30, 2014 and 2013 are set forth in the following tables:



	Chesapeake Pension Plan						FPU Pension Plan						Chesapeake SERP				Chesapeake Postretirement Plan						FPU Medical Plan
For the Three Months Ended September 30,	2014			2013			2014			2013			2014		2013		2014			2013			2014		2013
(in thousands)
Interest cost	$	107		$	102		$	647		$	594		$	23	$	21	$	13		$	12		$	17	$	16
Expected return on plan assets	(133		)	(126		)	(773		)	(719		)	—		—		—			—			—		—
Amortization of prior service cost	—			—			—			—			5		5		(19		)	(19		)	—		—
Amortization of net loss	37			57			—			81			12		16		16			18			—		—
Net periodic cost (benefit)	11			33			(126		)	(44		)	40		42		10			11			17		16
Amortization of pre-merger regulatory asset	—			—			191			191			—		—		—			—			2		2
Total periodic cost	$	11		$	33		$	65		$	147		$	40	$	42	$	10		$	11		$	19	$	18



	Chesapeake Pension Plan						FPU Pension Plan						Chesapeake SERP				Chesapeake Postretirement Plan						FPU Medical Plan
For the Nine Months Ended September 30,	2014			2013			2014			2013			2014		2013		2014			2013			2014		2013
(in thousands)
Interest cost	$	320		$	307		$	1,941		$	1,782		$	69	$	62	$	39		$	36		$	50	$	47
Expected return on plan assets	(398		)	(378		)	(2,318		)	(2,156		)	—		—		—			—			—		—
Amortization of prior service cost	—			(1		)	—			—			14		14		(58		)	(58		)	—		—
Amortization of net loss	112			171			—			243			36		48		50			55			—		—
Net periodic cost (benefit)	34			99			(377		)	(131		)	119		124		31			33			50		47
Amortization of pre-merger regulatory asset	—			—			571			571			—		—		—			—			6		6
Total periodic cost	$	34		$	99		$	194		$	440		$	119	$	124	$	31		$	33		$	56	$	53

We expect to record pension and postretirement benefit costs of approximately $578,000 for 2014. 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 for 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 $3.8 million and $4.4 million at September 30, 2014 and December 31, 2013, respectively. The amortization included in pension expense is being offset by a net periodic benefit of $191,000, which will reduce our total expected benefit costs to $578,000.

Pursuant to a Florida PSC order, 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. 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, 2014 and 2013:



For the Three Months Ended September 30, 2014	Chesapeake Pension Plan		FPU Pension Plan		Chesapeake SERP		Chesapeake Postretirement Plan			FPU Medical Plan		Total
(in thousands)
Prior service cost (credit)	$	—	$	—	$	5	$	(19	)	$	—	(14		)
Net loss	37		—		12		16			—		65
Total recognized in net periodic benefit cost	$	37	$	—	$	17	$	(3	)	$	—	$	51
Recognized from accumulated other comprehensive loss ⁽¹⁾	$	37	$	—	$	17	$	(3	)	$	—	$	51
Recognized from regulatory asset	—		—		—		—			—		—
Total	$	37	$	—	$	17	$	(3	)	$	—	$	51



For the Nine Months Ended September 30, 2014	Chesapeake Pension Plan		FPU Pension Plan		Chesapeake SERP		Chesapeake Postretirement Plan			FPU Medical Plan		Total
(in thousands)

Prior service cost (credit)	$	—	$	—	$	14	$	(58	)	$	—	(44		)
Net loss	112		—		36		50			—		198
Total recognized in net periodic benefit cost	$	112	$	—	$	50	$	(8	)	$	—	$	154
Recognized from accumulated other comprehensive loss ⁽¹⁾	$	112	$	—	$	50	$	(8	)	$	—	$	154
Recognized from regulatory asset	—		—		—		—			—		—
Total	$	112	$	—	$	50	$	(8	)	$	—	$	154



For the Three Months Ended September 30, 2013	Chesapeake Pension Plan		FPU Pension Plan		Chesapeake 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 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, 2014, we contributed $308,000 and $529,000, respectively, to the Chesapeake Pension Plan and $1.4 million and $2.0 million, respectively, to the FPU Pension Plan. We expect to contribute a total of $709,000 and $2.6 million to the Chesapeake Pension Plan and FPU Pension Plan, respectively, during 2014, which represent the minimum contribution payments required during the year.

The Chesapeake 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 SERP for the three and nine months ended September 30, 2014, were $22,000 and $67,000, respectively. We expect to pay total cash benefits of approximately $88,000 under the Chesapeake Pension SERP in 2014. Cash benefits paid for the Chesapeake Postretirement Plan, primarily for medical claims for the three and nine months ended September 30, 2014, were $12,000 and $57,000, respectively. We have estimated that approximately $95,000 will be paid for such benefits under the Chesapeake Postretirement Plan in 2014. Cash benefits paid for the FPU Medical Plan, primarily for medical claims for the three and nine months ended September 30, 2014, were $43,000 and $187,000, respectively. We estimate that approximately $245,000 will be paid for such benefits under the FPU Medical Plan in 2014.