Benefit Plans and Other Postretirement Benefits

6 Months Ended

Jun. 30, 2011

Benefit Plans and Other Postretirement Benefits [Abstract]

Benefit Plans and Other Postretirement Benefits

12. Benefit Plans and Other Postretirement Benefits

Pension and other postretirement benefit disclosures below generally represent Xcel Energy information unless specifically identified as being attributable to SPS.

SPS calculates base pension expense in accordance with accounting guidance for retirement benefits. In 2011, the Texas retail electric jurisdiction began to allow the deferral of allocated pension costs to the extent that those costs exceed test year pension expenses included in rates, within prescribed limits. Differences between regulatory-based pension expense for the Texas retail electric jurisdiction and expense as calculated under applicable accounting guidance are deferred as a regulatory asset or liability.

Components of Net Periodic Benefit Cost

	Three Months Ended June 30,
	2011			2010			2011			2010
(Thousands of Dollars)	Pension Benefits						Postretirement Health Care Benefits
Xcel Energy
Service cost	$	20,548		$	18,956		$	1,097		$	965
Interest cost		40,791			41,853			10,492			10,861
Expected return on plan assets		(55,514	)		(58,035	)		(8,013	)		(7,131	)
Amortization of transition obligation		-			-			3,611			3,611
Amortization of prior service cost (credit)		5,633			5,164			(1,233	)		(1,233	)
Amortization of net loss		20,527			13,134			3,304			3,113
Net periodic benefit cost		31,985			21,072			9,258			10,186
Costs not recognized and additional cost recognized due to the effects of regulation		(10,715	)		(6,314	)		973			973
Net benefit cost recognized for financial reporting	$	21,270		$	14,758		$	10,231		$	11,159
SPS
Net periodic benefit cost	$	3,377		$	1,709		$	805		$	972
Costs not recognized due to the effects of regulation		(575	)		-			-			-
Net benefit cost recognized for financial reporting	$	2,802		$	1,709		$	805		$	972

	Six Months Ended June 30,
	2011			2010			2011			2010
(Thousands of Dollars)	Pension Benefits						Postretirement Health Care Benefits
Xcel Energy
Service cost	$	38,660		$	36,574		$	2,412		$	2,003
Interest cost		80,706			82,505			21,043			21,390
Expected return on plan assets		(110,800	)		(116,159	)		(15,981	)		(14,265	)
Amortization of transition obligation		-			-			7,222			7,222
Amortization of prior service cost (credit)		11,266			10,328			(2,466	)		(2,466	)
Amortization of net loss		39,256			24,158			6,647			5,822
Net periodic benefit cost		59,088			37,406			18,877			19,706
Costs not recognized and additional cost recognized due to the effects of regulation		(18,600	)		(13,640	)		1,946			1,946
Net benefit cost recognized for financial reporting	$	40,488		$	23,766		$	20,823		$	21,652
SPS
Net periodic benefit cost	$	5,981		$	2,897		$	1,641		$	1,801
Costs not recognized due to the effects of regulation		(1,150	)		-			-			-
Net benefit cost recognized for financial reporting	$	4,831		$	2,897		$	1,641		$	1,801

Voluntary contributions of $134 million were made to three of Xcel Energy's pension plans in January 2011, including $4.2 million related to SPS. Based on updated valuation results received in March 2011 for the NCE Non-Bargaining Pension Plan, Xcel Energy made a required contribution of $3.3 million to the NCE Non-Bargaining Pension Plan in July 2011.