Retirement Benefits

6 Months Ended

Jun. 30, 2013

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
	2013			2012			2013			2012			2013			2012
Service cost	$	1,859		$	1,628		$	52		$	7		$	715		$	565
Interest cost	2,523			2,551			94			56			922			1,032
Expected return on plan assets	(3,089		)	(3,076		)	—			—			(1,077		)	(1,041		)
Amortization of prior service cost (1)	133			133			(2		)	(2		)	(253		)	(253		)
Amortization of net actuarial loss (1)	2,632			1,950			180			76			481			468
Net periodic benefit cost	$	4,058		$	3,186		$	324		$	137		$	788		$	771

	Six months ended June 30,
	Pension Benefits						SERP						OPEB
	2013			2012			2013			2012			2013			2012
Service cost	$	3,727		$	3,256		$	67		$	15		$	1,470		$	1,129
Interest cost	5,031			5,102			157			111			1,913			2,065
Expected return on plan assets	(6,214		)	(6,151		)	—			—			(2,176		)	(2,083		)
Amortization of prior service cost (1)	266			266			(4		)	(4		)	(505		)	(505		)
Amortization of net actuarial loss (1)	5,223			3,899			284			153			1,131			935
Net periodic benefit cost	$	8,033		$	6,372		$	504		$	275		$	1,833		$	1,541

	Twelve months ended June 30,
	Pension Benefits						SERP						OPEB
	2013			2012			2013			2012			2013			2012
Service cost	$	6,732		$	6,054		$	104		$	62		$	2,742		$	2,262
Interest cost	10,187			10,305			308			203			3,885			4,257
Expected return on plan assets	(12,372		)	(11,721		)	—			—			(4,229		)	(4,161		)
Amortization of prior service cost (1)	531			532			(8		)	(8		)	(1,011		)	(1,011		)
Amortization of net actuarial loss (1)	9,259			6,647			520			238			1,858			1,816
Net periodic benefit cost	$	14,337		$	11,817		$	924		$	495		$	3,245		$	3,163

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

In accordance with our regulatory agreements, our pension funding policy is to make contributions that are at least equal to the greater of either the minimum funding requirements of ERISA or the accrued cost of the plan. We made pension contributions of approximately $16.2 million in July 2013, which are expected to satisfy our funding requirements for the year. The actual minimum funding requirements will be determined based on the results of the actuarial valuations. Our OPEB funding policy is to contribute annually an amount at least equal to the actuarial cost of postretirement benefits.