RETIREMENT PLAN AND POST-RETIREMENT BENEFITS

6 Months Ended

Jun. 30, 2011

RETIREMENT PLAN AND POST-RETIREMENT BENEFITS [Abstract]

RETIREMENT PLAN AND POST-RETIREMENT BENEFITS

NOTE 7.                      RETIREMENT PLAN AND POST-RETIREMENT BENEFITS

NVE has a single employer defined benefit pension plan covering substantially all employees of NVE and the Utilities.  NVE allocates the unfunded liability and the net periodic benefit costs for its pension benefit and other postretirement benefit plans to NPC and SPPC based upon the current, or in the case of the retirees, previous, employment location.  Certain grandfathered and union employees are covered under a benefit formula based on years of service and the employee's highest compensation for a period prior to retirement, while most employees are covered under a cash balance formula with vesting after three years of service. NVE also has other postretirement plans, including a defined contribution plan which provides medical and life insurance benefits for certain retired employees.   A summary of the components of net periodic pension and other postretirement costs for the three and six months ended June 30 follows.  This summary is based on a December 31, measurement date (dollars in thousands):

NVE
	Pension Benefits						Other Postretirement Benefits
	For the three months ended June 30,						For the three months ended June 30,
	2011			2010			2011			2010
Service cost	$	4,607		$	4,727		$	653		$	617
Interest cost		10,169			10,718			2,090			2,184
Expected return on plan assets		(12,192	)		(11,069	)		(1,596	)		(1,556	)
Amortization of prior service cost		(738	)		(448	)		(987	)		(972	)
Amortization of net loss		4,155			3,777			1,083			1,085
Net periodic benefit cost	$	6,001		$	7,705		$	1,243		$	1,358
	Pension Benefits						Other Postretirement Benefits
	For the six months ended June 30,						For the six months ended June 30,
		2011			2010			2011			2010
Service cost	$	9,213		$	9,455		$	1,306		$	1,233
Interest cost		20,338			21,436			4,180			4,368
Expected return on plan assets		(24,383	)		(22,138	)		(3,193	)		(3,111	)
Amortization of prior service cost		(1,476	)		(897	)		(1,973	)		(1,945	)
Amortization of net loss		8,310			7,553			2,166			2,171
Net periodic benefit cost	$	12,002		$	15,409		$	2,486		$	2,716
The average percentage of NVE net periodic costs capitalized during 2011 and 2010 was 32.77% and 33.58% respectively.

NPC
	Pension Benefits						Other Postretirement Benefits
	For the three months ended June 30,						For the three months ended June 30,
	2011			2010			2011			2010
Service cost	$	2,445		$	2,392		$	363		$	353
Interest cost		4,880			5,023			615			619
Expected return on plan assets		(6,169	)		(5,362	)		(590	)		(567	)
Amortization of prior service cost		(470	)		(433	)		229			236
Amortization of net loss		1,690			1,764			302			300
Net periodic benefit cost	$	2,376		$	3,384		$	919		$	941
	Pension Benefits						Other Postretirement Benefits
	For the six months ended June 30,						For the six months ended June 30,
		2011			2010			2011			2010
Service cost	$	4,891		$	4,784		$	727		$	707
Interest cost		9,760			10,046			1,230			1,237
Expected return on plan assets		(12,339	)		(10,724	)		(1,180	)		(1,135	)
Amortization of prior service cost		(939	)		(866	)		458			473
Amortization of net loss		3,379			3,528			604			599
Net periodic benefit cost	$	4,752		$	6,768		$	1,839		$	1,881
The average percentage of NPC net periodic costs capitalized during 2011 and 2010 was 37.32% and 35.71% respectively.

SPPC
	Pension Benefits						Other Postretirement Benefits
	For the three months ended June 30,						For the three months ended June 30,
	2011			2010			2011			2010
Service cost	$	1,840		$	2,004		$	271		$	245
Interest cost		5,013			5,389			1,457			1,547
Expected return on plan assets		(5,741	)		(5,431	)		(976	)		(961	)
Amortization of prior service cost		(277	)		(26	)		(1,219	)		(1,213	)
Amortization of net loss		2,412			1,969			773			777
Net periodic benefit cost	$	3,247		$	3,905		$	306		$	395
	Pension Benefits						Other Postretirement Benefits
	For the six months ended June 30,						For the six months ended June 30,
		2011			2010			2011			2010
Service cost	$	3,680		$	4,008		$	543		$	489
Interest cost		10,025			10,779			2,915			3,094
Expected return on plan assets		(11,482	)		(10,862	)		(1,952	)		(1,922	)
Amortization of prior service cost		(554	)		(52	)		(2,439	)		(2,426	)
Amortization of net loss		4,824			3,938			1,546			1,554
Net periodic benefit cost	$	6,493		$	7,811		$	613		$	789
The average percentage of SPPC net periodic costs capitalized during 2011 and 2010 was 30.22% and 34.55% respectively.

During the six months ended June 30, 2011, SPPC did not make any contributions to the pension or other postretirement benefits plans.  At the present time, it is not anticipated that additional funding will be required for either plan in 2011 in order to meet the minimum funding level requirements defined by the Pension Protection Act of 2006.  However, NVE and the Utilities have included in their 2011 assumptions funding levels similar to the 2010 funding.  The amounts to be contributed in 2011 may change subject to market conditions.