EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2018

Summary of target asset allocation percentages for major categories of the pension plan

The Company's target asset allocation percentages for major categories of the pension plan are reflected in the table below:



	Minimum Exposure		Target		Maximum Exposure
Fixed Income	35	%	40	%	45	%
Total Domestic Equity:	40	%	50	%	60	%
Small Cap Stocks	10	%	15	%	20	%
Large Cap Stocks	30	%	35	%	45	%
Non-U.S. Equities	5	%	10	%	15	%

Schedule of fair value plan assets

All Plan investments are level one investments in mutual funds and are valued at the net asset value (NAV) of the shares held at December 31, 2018 and 2017:



	Pension Benefits								Other Benefits
	2018		%		2017		%		2018		%		2017		%
Fixed Income	$	188,934	40	%	$	171,403	37	%	$	45,446	44	%	$	60,438	60	%
Domestic Equity: Small Cap Stocks	68,843		15	%	73,682		16	%	—		—		—		—
Domestic Equity: Large Cap Stocks	165,862		35	%	169,661		37	%	57,179		56	%	40,125		40	%
Non U.S. Equities	46,135		10	%	46,132		10	%	—		—		—		—
Total Plan Assets	$	469,774	100	%	$	460,878	100	%	$	102,625	100	%	$	100,563	100	%

Schedule of reconciliation of the funded status of the plans with the accrued pension liability and the net postretirement benefit liability

The following table reconciles the funded status of the plans with the accrued pension liability and the net postretirement benefit liability as of December 31, 2018 and 2017:



	Pension Benefits						Other Benefits
	2018			2017			2018			2017
Change in projected benefit obligation:
Beginning of year	$	671,334		$	564,755		$	143,368		$	122,108
Service cost	29,027			23,801			8,317			7,152
Interest cost	23,994			23,256			4,873			4,988
Assumption change	(80,192		)	60,526			(21,672		)	15,298
Plan amendment	—			—			2,203			—
Experience loss (gain)	8,523			10,836			(8,226		)	(4,546		)
Benefits paid, net of retiree premiums	(12,765		)	(11,840		)	(1,659		)	(1,632		)
End of year	$	639,921		$	671,334		$	127,204		$	143,368
Change in plan assets:
Fair value of plan assets at beginning of year	$	460,878		$	376,549		$	100,563		$	86,578
Actual return on plan assets	(22,576		)	64,365			(4,320		)	6,508
Employer contributions	44,237			31,804			8,041			9,109
Retiree contributions and Medicare part D subsidies	—			—			2,025			1,884
Benefits paid	(12,765		)	(11,840		)	(3,684		)	(3,516		)
Fair value of plan assets at end of year	$	469,774		$	460,878		$	102,625		$	100,563
Funded status(1)	$	(170,147	)	$	(210,456	)	$	(24,579	)	$	(42,805	)
Unrecognized actuarial loss	117,973			150,545			18,618			39,796
Unrecognized prior service cost	15,290			20,342			2,326			165
Net amount recognized	$	(36,884	)	$	(39,569	)	$	(3,635	)	$	(2,844	)

_______________________________________________________________________________


(1)	The short-term portion of the pension benefits was $1.9 million as of December 31, 2018 and $2.0 million as of December 31, 2017 and is recorded as part of other accrued liabilities on the Company's 2018 and 2017 Consolidated Balance Sheets.

Schedule of amounts recognized in consolidated balance sheets

Amounts recognized on the balance sheet consist of:



	Pension Benefits						Other Benefits
	2018			2017			2018			2017
(Accrued) benefit costs	$	62		$	60		$	(2,802	)	$	(3,461	)
Accrued benefit liability	(170,147		)	(210,456		)	(24,579		)	(42,805		)
Regulatory asset	133,201			170,827			23,746			43,422
Net amount recognized	$	(36,884	)	$	(39,569	)	$	(3,635	)	$	(2,844	)

Schedule of actuarial assumptions used in determining the benefit obligation

Below are the actuarial assumptions used in determining the benefit obligation for the benefit plans:



	Pension Benefits				Other Benefits
	2018		2017		2018		2017
Weighted average assumptions as of December 31:
Discount rate	4.20	%	3.60	%	4.25	%	3.65	%
Long-term rate of return on plan assets	6.50	%	6.50	%	5.50	%	5.50	%
Rate of compensation increases - pension plan	3.25	%	3.25	%	—		—
Rate of compensation increases - SERP	3.75	%	3.75	%	—		—
Cost of living adjustment	2.50	%	2.50	%	—		—

Schedule of components of net periodic benefit costs for the pension plans and other postretirement benefits

Net periodic benefit costs for the pension and other postretirement plans for the years ended December 31, 2018, 2017, and 2016 included the following components:



	Pension Plan									Other Benefits
	2018			2017			2016			2018			2017			2016
Service cost	$	29,027		$	23,801		$	20,971		$	8,317		$	7,152		$	6,513
Interest cost	23,994			23,256			22,226			4,873			4,988			4,863
Expected return on plan assets	(27,702		)	(24,119		)	(21,826		)	(5,639		)	(4,875		)	(4,129		)
Net amortization and deferral	16,233			12,962			11,990			1,281			1,186			1,660
Net periodic benefit cost	$	41,552		$	35,900		$	33,361		$	8,832		$	8,451		$	8,907

Schedule of actuarial assumptions used in determining the net periodic benefit costs

Below are the actuarial assumptions used in determining the net periodic benefit costs for the benefit plans, which uses the end of the prior year as the measurement date:



	Pension Benefits				Other Benefits
	2018		2017		2018		2017
Weighted average assumptions as of December 31:
Discount rate	3.60	%	4.15	%	3.65	%	4.25	%
Long-term rate of return on plan assets	6.50	%	6.50	%	5.50	%	5.50	%
Rate of compensation increases - pension plan	3.25	%	3.25	%	—		—
Rate of compensation increases - SERP	3.75	%	3.75	%	—		—
Cost of living adjustment	2.50	%	2.50	%

Schedule of the effect of a one-percentage point change in assumed health care cost trends

A 1-percentage point change in assumed health care cost trends is estimated to have the following effect:



	1-Percentage Point Increase		1-Percentage Point (Decrease)
Effect on total service and interest costs	$	4,213	$	(3,017	)
Effect on accumulated postretirement benefit obligation	$	29,286	$	(22,137	)