EMPLOYEE BENEFIT PLANS

3 Months Ended

Mar. 31, 2015

Compensation and Retirement Disclosure [Abstract]

EMPLOYEE BENEFIT PLANS

Employee Benefit Plans

Defined Benefit Plans

The following table shows the components of net periodic benefit cost (including amounts capitalized to our balance sheets) for our benefit plans:

	Pension Benefits						Other Postretirement Benefits
	Three Months Ended March 31						Three Months Ended March 31
(Millions)	2015			2014			2015			2014
Service cost	$	7.6		$	6.6		$	5.8		$	5.9
Interest cost	17.0			19.7			5.3			7.1
Expected return on plan assets	(26.9		)	(28.9		)	(7.9		)	(8.8		)
Loss on plan settlement	0.5			—			—			—
Amortization of prior service cost (credit)	0.1			0.2			(2.6		)	(1.3		)
Amortization of net actuarial loss	10.5			8.4			1.1			0.7
Net periodic benefit cost	$	8.8		$	6.0		$	1.7		$	3.6

Prior service costs (credits) and net actuarial losses that have not yet been recognized as a component of net periodic benefit cost are recorded in accumulated other comprehensive income for our nonregulated entities and as net regulatory assets or liabilities for our regulated utilities.

In March 2014, we remeasured the obligations of certain other postretirement benefit plans as a result of a plan design change to move participants age 65 and older to a Medicare Advantage plan starting January 1, 2015.

Our funding policy is to contribute at least the minimum amounts that are required to be funded under the Employee Retirement Income Security Act, but not more than the maximum amounts that are currently deductible for income tax purposes. During the three months ended March 31, 2015, we contributed $2.8 million to our pension plans and $0.1 million to our other postretirement benefit plans. We expect to contribute an additional $6.3 million to our pension plans and $8.9 million to our other postretirement benefit plans during the remainder of 2015, dependent upon various factors affecting us, including our liquidity position and possible tax law changes. In 2015, contributions of $7.0 million will be funded through a transfer of assets from the rabbi trust for certain nonqualified pension plans, of which $2.2 million was paid to participants through March 31, 2015. See the discussion below in regard to the triggering of the full funding of the rabbi trust.

Rabbi Trust Funding Requirement

The Agreement and Plan of Merger entered into with Wisconsin Energy Corporation in June 2014 triggered the potential change in control provisions in the rabbi trust agreement. These provisions required the full funding of the present value of each participant's total benefit under the deferred compensation program and certain nonqualified pension plans. As a result, $132.2 million, consisting of cash and exchange-traded funds, was moved to the rabbi trust during 2014 and was included in other long-term assets on the balance sheet as of March 31, 2015, and December 31, 2014. In 2015, a portion of the amounts contributed to the rabbi trust in 2014 were used to fund participant's benefits under the deferred compensation program and certain nonqualified pension plans, as discussed above. See Note 2, Proposed Merger with Wisconsin Energy Corporation, for more information on the merger.