Benefit Plans and Other Postretirement Benefits

9 Months Ended

Sep. 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 Sept. 30,
	2011			2010			2011			2010
							Postretirement Health
(Thousands of Dollars)	Pension Benefits						Care Benefits
Xcel Energy
Service cost	$	19,330		$	18,286		$	1,206		$	1,002
Interest cost		40,353			41,253			10,522			10,695
Expected return on plan assets		(55,400	)		(58,080	)		(7,991	)		(7,132	)
Amortization of transition obligation		-			-			3,611			3,611
Amortization of prior service cost (credit)		5,633			5,165			(1,233	)		(1,233	)
Amortization of net loss		19,627			12,078			3,324			2,910
Net periodic benefit cost		29,543			18,702			9,439			9,853
Costs not recognized and additional cost recognized due to the effects of regulation		(9,299	)		(6,630	)		972			972
Net benefit cost recognized for financial reporting	$	20,244		$	12,072		$	10,411		$	10,825
SPS
Net periodic benefit cost	$	2,990		$	1,448		$	820		$	900
Costs not recognized due to the effects of regulation		(575	)		-			-			-
Net benefit cost recognized for financial reporting	$	2,415		$	1,448		$	820		$	900

	Nine Months Ended Sept. 30,
	2011			2010			2011			2010
							Postretirement Health
(Thousands of Dollars)	Pension Benefits						Care Benefits
Xcel Energy
Service cost	$	57,990		$	54,860		$	3,618		$	3,005
Interest cost		121,059			123,758			31,565			32,085
Expected return on plan assets		(166,200	)		(174,239	)		(23,972	)		(21,397	)
Amortization of transition obligation		-			-			10,833			10,833
Amortization of prior service cost (credit)		16,899			15,493			(3,699	)		(3,699	)
Amortization of net loss		58,883			36,236			9,971			8,732
Net periodic benefit cost		88,631			56,108			28,316			29,559
Costs not recognized and additional cost recognized due to the effects of regulation		(27,899	)		(20,270	)		2,918			2,918
Net benefit cost recognized for financial reporting	$	60,732		$	35,838		$	31,234		$	32,477
SPS
Net periodic benefit cost	$	8,971		$	4,345		$	2,461		$	2,701
Costs not recognized due to the effects of regulation		(1,725	)		-			-			-
Net benefit cost recognized for financial reporting	$	7,246		$	4,345		$	2,461		$	2,701

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 New Century Energies, Inc. (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.  Xcel Energy does not expect additional pension contributions during 2011.