Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Assets by Investment Type

The following schedule summarizes the assets of the FPU Pension Plan, by investment type, at December 31, 2021, 2020 and 2019:

	FPU Pension Plan
At December 31,	2021		2020		2019
Asset Category
Equity securities	52	%	54	%	53	%
Debt securities	38	%	37	%	37	%
Other	10	%	9	%	10	%
Total	100	%	100	%	100	%

Schedule of Asset Allocation Strategy

The following allocation range of asset classes is intended to produce a rate of return sufficient to meet the FPU Pension Plan’s goals and objectives (this allocation range applied to the Chesapeake Pension Plan prior to the de-risking strategy executed during the fourth quarter of 2019):

Asset Allocation Strategy
Asset Class	Minimum Allocation Percentage		Maximum Allocation Percentage
Domestic Equities (Large Cap, Mid Cap and Small Cap)	14	%	32	%
Foreign Equities (Developed and Emerging Markets)	13	%	25	%
Fixed Income (Inflation Bond and Taxable Fixed)	26	%	40	%
Diversifying Assets (High Yield Fixed Income, Commodities, and Real Estate)	7	%	19	%
Alternative Strategies (Long/Short Equity and Hedge Fund of Funds)	4	%	10	%
Cash	0	%	5	%

Summary of Pension Plan Assets

At December 31, 2021 and 2020, the assets of the Chesapeake Pension Plan and the FPU Pension Plan were comprised of the following investments:

	Fair Value Measurement Hierarchy
	At December 31, 2021								At December 31, 2020
Asset Category	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
(in thousands)
Mutual Funds - Equity securities
U.S. Large Cap (1)	$	4,302	$	—	$	—	$	4,302	$	3,615	$	—	$	—	$	3,615
U.S. Mid Cap (1)	1,835		—		—		1,835		1,672		—		—		1,672
U.S. Small Cap (1)	954		—		—		954		891		—		—		891
International (2)	10,863		—		—		10,863		11,307		—		—		11,307
Alternative Strategies (3)	5,888		—		—		5,888		5,586		—		—		5,586
	23,842		—		—		23,842		23,071		—		—		23,071
Mutual Funds - Debt securities
Fixed income (4)	19,551		—		—		19,551		21,563		—		—		21,563
High Yield (4)	3,014		—		—		3,014		2,606		—		—		2,606
	22,565		—		—		22,565		24,169		—		—		24,169
Mutual Funds - Other
Commodities (5)	2,297		—		—		2,297		2,246		—		—		2,246
Real Estate (6)	2,729		—		—		2,729		1,954		—		—		1,954
Guaranteed deposit (7)	—		—		497		497		—		—		1,019		1,019
	5,026		—		497		5,523		4,200		—		1,019		5,219
Total Pension Plan Assets in fair value hierarchy	$	51,433	$	—	$	497	51,930		$	51,440	$	—	$	1,019	52,459
Investments measured at net asset value (8)							6,782								8,116
Total Pension Plan Assets							$	58,712							$	60,575

Schedule of Level Three Defined Benefit Plan Assets Roll Forward

The following table sets forth the summary of the changes in the fair value of Level 3 investments for the years ended December 31, 2021 and 2020:

	For the Year Ended December 31,
	2021		2020
(in thousands)
Balance, beginning of year	$	1,019	$	1,147
Purchases	3,160		3,190
Transfers in	5,914		921
Disbursements	(9,587)		(4,290)
Investment income	(9)		51
Balance, end of year	$	497	$	1,019

Schedule of Amounts Not Yet Reflected in Net Periodic Benefit Cost and Included in Accumulated Other Comprehensive Income Loss or Regulatory Assets

The following table presents the amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive loss or as a regulatory asset as of December 31, 2021:

(in thousands)	FPU Pension Plan		Chesapeake SERP		Chesapeake Postretirement Plan		FPU Medical Plan		Total
Prior service (credit)	$	—	$	—	$	(293)	$	—	$	(293)
Net loss (gain)	17,737		659		671		(114)		18,953
Total	$	17,737	$	659	$	378	$	(114)	$	18,660
Accumulated other comprehensive loss (gain) pre-tax(1)	$	3,370	$	659	$	378	$	(22)	$	4,385
Post-merger regulatory asset	14,367		—		—		(92)		14,275
Total unrecognized cost	$	17,737	$	659	$	378	$	(114)	$	18,660

(1) The total amount of accumulated other comprehensive loss recorded on our consolidated balance sheet as of December 31, 2021 is net of income tax benefits of $1.1 million.

Schedule of Estimated Future Benefit Payments

The schedule below shows the estimated future benefit payments for each of the plans previously described:

	FPU Pension Plan(1)		Chesapeake SERP(2)		Chesapeake Postretirement Plan(2)		FPU Medical Plan(2)
(in thousands)
2022	$	3,451	$	151	$	73	$	71
2023	$	3,537	$	149	$	68	$	70
2024	$	3,592	$	147	$	63	$	71
2025	$	3,690	$	160	$	59	$	70
2026	$	3,720	$	157	$	54	$	69
Years 2027 through 2031	$	18,588	$	723	$	218	$	324

(1) The pension plan is funded; therefore, benefit payments are expected to be paid out of the plan assets.

(2) Benefit payments are expected to be paid out of our general funds.

Pension benefit

Schedule of Funded Status of Benefit Obligation and Plan Assets

The following schedules set forth the funded status at December 31, 2021 and 2020 and the net periodic cost for the years ended December 31, 2021, 2020 and 2019 for the Chesapeake and FPU Pension Plans as well as the Chesapeake SERP:

	Chesapeake Pension Plan						FPU Pension Plan						Chesapeake SERP
At December 31,	2021			2020			2021			2020			2021			2020
(in thousands)
Change in benefit obligation:
Benefit obligation — beginning of year	$	6,146		$	6,214		$	70,366		$	65,304		$	2,212		$	2,157
Interest cost	141			176			1,714			2,085			48			63
Actuarial (gain) loss	(371)			450			(1,953)			6,069			(12)			144
Effect of settlement	(5,884)			(612)			—			—			—			—
Benefits paid	(32)			(82)			(3,097)			(3,092)			(152)			(152)
Benefit obligation — end of year	—			6,146			67,030			70,366			2,096			2,212
Change in plan assets:
Fair value of plan assets — beginning of year	4,609			4,630			55,966			49,703			—			—
Actual return on plan assets	(237)			369			4,246			6,581			—			—
Employer contributions	1,544			304			1,597			2,774			152			152
Effect of settlement	(5,884)			(612)			—			—			—			—
Benefits paid	(32)			(82)			(3,097)			(3,092)			(152)			(152)
Fair value of plan assets — end of year	—			4,609			58,712			55,966			—			—
Reconciliation:
Funded status	—			(1,537)			(8,318)			(14,400)			(2,096)			(2,212)
Accrued pension cost	$	—		$	(1,537)		$	(8,318)		$	(14,400)		$	(2,096)		$	(2,212)
Assumptions:
Discount rate	2.50		%	2.25		%	2.75		%	2.50		%	2.50		%	2.25		%
Expected return on plan assets	3.50		%	3.50		%	6.00		%	6.00		%	—		%	—		%

Component of Net Periodic Pension Cost (Benefit)

	Chesapeake Pension Plan									FPU Pension Plan									Chesapeake SERP
For the Years Ended December 31,	2021(2)			2020			2019(1)			2021			2020			2019			2021			2020			2019
(in thousands)
Components of net periodic pension cost:
Interest cost	$	141		$	176		$	375		$	1,714		$	2,085		$	2,452		$	48		$	63		$	74
Expected return on assets	(166)			(157)			(487)			(3,306)			(2,967)			(2,770)			—			—			—
Amortization of actuarial loss	257			243			391			612			552			505			28			20			85
Settlement expense	1,810			203			1,982			—			—			—			—			—			58
Net periodic pension cost	2,042			465			2,261			(980)			(330)			187			76			83			217
Amortization of pre-merger regulatory asset	—			—			—			—			—			543			—			—			—
Total periodic cost	$	2,042		$	465		$	2,261		$	(980)		$	(330)		$	730		$	76		$	83		$	217
Assumptions:
Discount rate	2.25		%	3.00		%	3.00		%	2.50		%	3.25		%	4.25		%	2.25		%	3.00		%	4.00		%
Expected return on plan assets	3.50		%	3.50		%	6.00		%	6.00		%	6.00		%	6.50		%	—		%	—		%	—		%

Other Postretirement Benefit Plans

Schedule of Funded Status of Benefit Obligation and Plan Assets

The following table sets forth the funded status at December 31, 2021 and 2020:

	Chesapeake Postretirement Plan						FPU Medical Plan
At December 31,	2021			2020			2021			2020
(in thousands)
Change in benefit obligation:
Benefit obligation — beginning of year	$	1,033		$	1,100		$	1,009		$	1,224
Interest cost	22			26			24			30
Plan participants contributions	190			166			29			37
Actuarial loss (gain)	159			(34)			71			(181)
Benefits paid	(470)			(225)			(129)			(101)
Benefit obligation — end of year	934			1,033			1,004			1,009
Change in plan assets:
Fair value of plan assets — beginning of year	—			—			—			—
Employer contributions	280			59			100			64
Plan participants contributions	190			166			29			37
Benefits paid	(470)			(225)			(129)			(101)
Fair value of plan assets — end of year	—			—			—			—
Reconciliation:
Funded status	(934)			(1,033)			(1,004)			(1,009)
Accrued postretirement cost	$	(934)		$	(1,033)		$	(1,004)		$	(1,009)
Assumptions:
Discount rate	2.83		%	2.25		%	2.51		%	2.50		%

Component of Net Periodic Pension Cost (Benefit)

Net periodic postretirement benefit costs for 2021, 2020, and 2019 include the following components:

	Chesapeake Postretirement Plan									FPU Medical Plan
For the Years Ended December 31,	2021			2020			2019			2021			2020			2019
(in thousands)
Components of net periodic postretirement cost:
Interest cost	$	22		$	26		$	39		$	24		$	30		$	48
Amortization of actuarial loss (gain)	34			24			46			(9)			(19)			—
Amortization of prior service cost	(77)			(77)			(77)			—			—			—
Net periodic cost	(21)			(27)			8			15			11			48
Amortization of pre-merger regulatory asset	—			—			—			—			6			8
Total periodic cost	$	(21)		$	(27)		$	8		$	15		$	17		$	56
Assumptions
Discount rate	2.25		%	3.00		%	4.00		%	2.50		%	3.25		%	4.25		%