Retirement Benefits

6 Months Ended

Jun. 30, 2011

Retirement Benefits

Retirement Benefits

Note 8 — Retirement Benefits

Net periodic benefit cost, some of which is capitalized as a component of labor cost and some of which is deferred as a regulatory asset, is comprised of the following components and is shown for our noncontributory defined benefit pension plan, our supplemental retirement program (SERP) and other postretirement benefits (OPEB) (in thousands):

	Three months ended June 30,
	Pension Benefits						SERP						OPEB
	2011			2010			2011			2010			2011			2010
Service cost	$	1,404		$	1,273		$	27		$	17		$	507		$	509
Interest cost	2,612			2,550			51			39			1,062			1,063
Expected return on plan assets	(2,889		)	(2,483		)	—			—			(1,028		)	(966		)
Amortization of prior service cost (1)	133			133			(2		)	(2		)	(253		)	(253		)
Amortization of net actuarial loss (1)	1,395			1,033			52			32			381			344
Net periodic benefit cost	$	2,655		$	2,506		$	128		$	86		$	669		$	697

	Six months ended June 30,
	Pension Benefits						SERP						OPEB
	2011			2010			2011			2010			2011			2010
Service cost	$	2,798		$	2,546		$	47		$	34		$	1,133		$	1,018
Interest cost	5,203			5,100			91			79			2,192			2,125
Expected return on plan assets	(5,569		)	(4,966		)	—			—			(2,078		)	(1,933		)
Amortization of prior service cost (1)	266			266			(4		)	(4		)	(505		)	(506		)
Amortization of net actuarial loss (1)	2,747			2,067			85			63			881			689
Net periodic benefit cost	$	5,445		$	5,013		$	219		$	172		$	1,623		$	1,393

	Twelve months ended June 30,
	Pension Benefits						SERP						OPEB
	2011			2010			2011			2010			2011			2010
Service cost	$	5,139		$	5,148		$	83		$	65		$	2,253		$	1,885
Interest cost	10,218			10,047			166			152			4,396			3,980
Expected return on plan assets	(10,450		)	(10,143		)	—			—			(3,990		)	(3,845		)
Amortization of prior service cost (1)	531			568			(8		)	(8		)	(1,011		)	(1,011		)
Amortization of net actuarial loss (1)	4,676			3,658			118			115			1,691			970
Net periodic benefit cost	$	10,114		$	9,278		$	359		$	324		$	3,339		$	1,979

(1) Amounts are amortized from our regulatory asset originally recorded upon recognizing our net pension liability on the balance sheet.

Annual contributions to our pension plans are at least equal to the minimum funding requirements of ERISA. Beginning in 2010, we were also required to fund at least our actuarial cost in accordance with our regulatory agreements. On March 29, 2011, we made a $13.5 million contribution to our Pension Trust, on April 13, 2011, we made an additional $2.1 million contribution and on July 14, 2011, we made a $2.1 million quarterly contribution. We estimate an additional quarterly contribution of approximately $2.1 million will be required in October 2011. The actual minimum funding requirements will be determined based on the results of the actuarial valuations and, in the case of 2012, the performance of our pension assets during 2011. Our OPEB funding policy is to contribute annually an amount at least equal to the actuarial cost of postretirement benefits.