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Pension Plans and Other Postretirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2023

Change in Benefit Obligation and Plan Assets

The following table sets forth the pension and other postretirement benefit plan disclosures as of December 31, 2023 and 2022 and the components of net periodic benefit costs for the years ended December 31, 2023, 2022 and 2021 (dollars in thousands):


	Pension Benefits						Other Post- retirement Benefits
	2023			2022			2023			2022
Change in benefit obligation:
Benefit obligation as of beginning of year	$	557,709		$	799,042		$	115,635		$	167,598
Service cost		14,350			23,877			2,394			4,369
Interest cost		33,245			26,536			6,766			5,503
Actuarial (gain)/loss		21,373			(204,775	)		4,799			(54,120	)
Plan change		—			3,302			—			—
Settlement		—			(60,206	)		—			—
Benefits paid		(41,432	)		(30,067	)		(7,210	)		(7,715	)
Benefit obligation as of end of year	$	585,245		$	557,709		$	122,384		$	115,635
Change in plan assets:
Fair value of plan assets as of beginning of year	$	540,703		$	750,963		$	49,472		$	59,544
Actual return on plan assets		78,838			(163,866	)		8,654			(10,072	)
Employer contributions		10,000			42,000			—			—
Settlement		—			(60,206	)		—			—
Benefits paid		(39,558	)		(28,188	)		—			—
Fair value of plan assets as of end of year	$	589,983		$	540,703		$	58,126		$	49,472
Funded status	$	4,738		$	(17,006	)	$	(64,258	)	$	(66,163	)
Amounts recognized in the Consolidated Balance Sheets:
Other non-current assets	$	32,997		$	13,382		$	—		$	—
Other current liabilities		(2,212	)		(1,934	)		(652	)		(706	)
Non-current liabilities		(26,047	)		(28,454	)		(63,606	)		(65,457	)
Net amount recognized	$	4,738		$	(17,006	)	$	(64,258	)	$	(66,163	)
Accumulated pension benefit obligation	$	514,295		$	495,654
Accumulated postretirement benefit obligation:
For retirees							$	68,087		$	61,984
For fully eligible employees							$	16,054		$	19,731
For other participants							$	38,243		$	33,920
Included in accumulated other comprehensive loss (income) (net of tax):
Unrecognized prior service cost (credit)	$	3,717		$	4,105		$	(1,081	)	$	(1,911	)
Unrecognized net actuarial loss		69,002			83,794			13,103			13,643
Total		72,719			87,899			12,022			11,732
Less regulatory asset		(71,983	)		(85,198	)		(12,401	)		(12,375	)
Accumulated other comprehensive loss for unfunded benefit obligation for pensions and other postretirement benefit plans	$	736		$	2,701		$	(379	)	$	(643	)


	Pension Benefits						Other Post- retirement Benefits
	2023			2022			2023			2022
Weighted-average assumptions as of December 31:
Discount rate for benefit obligation		5.86	%		6.10	%		5.83	%		6.10	%
Discount rate for annual expense		6.10	%		3.39	%		6.10	%		3.40	%
Expected long-term return on plan assets		8.30	%		5.80	%		7.20	%		4.70	%
Rate of compensation increase		4.87	%		4.69	%
Medical cost trend pre-age 65 – initial								6.50	%		6.25	%
Medical cost trend pre-age 65 – ultimate								5.00	%		5.00	%
Ultimate medical cost trend year pre-age 65							2030			2028
Medical cost trend post-age 65 – initial								6.50	%		6.25	%
Medical cost trend post-age 65 – ultimate								5.00	%		5.00	%
Ultimate medical cost trend year post-age 65							2030			2028

Components of Net Periodic Benefit Cost


	Pension Benefits									Other Post-retirement Benefits
	2023			2022			2021			2023			2022			2021
Components of net periodic benefit cost:
Service cost (1)	$	14,350		$	23,877		$	25,306		$	2,394		$	4,369		$	4,114
Interest cost		33,245			26,536			26,160			6,766			5,503			5,139
Expected return on plan assets		(43,656	)		(43,872	)		(39,088	)		(3,562	)		(2,799	)		(2,400	)
Amortization of prior service cost (credit)		491			257			257			(1,050	)		(1,050	)		(921	)
Net loss recognition		4,915			4,180			6,645			319			3,344			3,865
Settlement loss (2)		—			11,828			—			—			—			—
Net periodic benefit cost	$	9,345		$	22,806		$	19,280		$	4,867		$	9,367		$	9,797

(1)

Total service costs in the table above are recorded to the same accounts as labor expense. Labor and benefits expense is recorded to various projects based on whether the work is a capital project or an operating expense. Approximately 40 percent of all labor and benefits is capitalized to utility property and 60 percent is expensed to utility other operating expenses.

(2)

The settlement loss was deferred as a regulatory asset and is being amortized over 12 years in accordance with regulatory accounting orders.

Schedule of Allocation of Plan Assets

The target investment allocation percentages by asset classes are indicated in the table below:


	2023			2022
Equity securities		55	%		55	%
Debt securities		40	%		40	%
Real estate		5	%		5	%

Employer Matching Contributions

Employer matching contributions were as follows for the years ended December 31 (dollars in thousands):


	2023		2022		2021
Employer 401(k) matching contributions	$	15,022	$	13,258	$	11,671

Deferred Compensation Assets and Liabilities

There were deferred compensation assets included in other property and investments-net and corresponding deferred compensation liabilities included in other non-current liabilities and deferred credits on the Consolidated Balance Sheets of the following amounts as of December 31 (dollars in thousands):


	2023		2022
Deferred compensation assets and liabilities	$	7,794	$	7,541

Pension Plan And SERP [Member]

Schedule of Expected Benefit Payments

The Company expects benefit payments under the pension plan and the SERP will total (dollars in thousands):


	2024		2025		2026		2027		2028		Total 2029- 2033
Expected benefit payments	$	41,562	$	42,123	$	42,941	$	43,517	$	44,700	$	232,345

Schedule of Allocation of Plan Assets

The following table discloses by level within the fair value hierarchy (see Note 18 for a description of the fair value hierarchy) of the pension plan’s assets measured and reported as of December 31, 2023 at fair value (dollars in thousands):


	Level 1		Level 2		Level 3		Total
Cash equivalents	$	—	$	6,984	$	—	$	6,984
Fixed income securities:
U.S. government issues		—		19,293		—		19,293
Corporate issues		—		175,460		—		175,460
International issues		—		27,052		—		27,052
Municipal issues		—		13,772		—		13,772
Mutual funds:
U.S. equity securities		169,993		—		—		169,993
International equity securities		74,749		—		—		74,749
Plan assets measured at NAV (not subject to hierarchy disclosure)
Common/collective trusts: real estate		—		—		—		25,284
Partnership/closely held investments:
International equity securities		—		—		—		70,652
Real estate		—		—		—		6,744
Total	$	244,742	$	242,561	$	—	$	589,983


	Level 1		Level 2		Level 3		Total
Cash equivalents	$	—	$	5,110	$	—	$	5,110
Fixed income securities:
U.S. government issues		—		16,732		—		16,732
Corporate issues		—		161,180		—		161,180
International issues		—		23,108		—		23,108
Municipal issues		—		13,427		—		13,427
Mutual funds:
U.S. equity securities		154,442		—		—		154,442
International equity securities		58,933		—		—		58,933
Plan assets measured at NAV (not subject to hierarchy disclosure)
Common/collective trusts: real estate		—		—		—		30,406
Partnership/closely held investments:
International equity securities		—		—		—		69,792
Real estate		—		—		—		7,573
Total	$	213,375	$	219,557	$	—	$	540,703