Employee Benefit Plans

3 Months Ended

Mar. 31, 2013

Employee Benefit Plans

9. Employee Benefit Plans

Net periodic benefit costs for our pension and post-retirement benefits plans for the three months ended March 31, 2013 and 2012 are set forth in the following table:

	Chesapeake Pension Plan						FPU Pension Plan						Chesapeake Pension SERP				Chesapeake Postretirement Plan						FPU Medical Plan
For the Three Months Ended March 31,	2013			2012			2013			2012			2013		2012		2013			2012			2013		2012
(in thousands)
Service cost	$	—		$	—		$	—		$	—		$	—	$	—	$	—		$	—		$	—	$	40
Interest cost		102			125			594			639			21		23		12			15			16		45
Expected return on plan assets		(126	)		(109	)		(719	)		(658	)		—		—		—			—			—		—
Amortization of prior service cost		—			(1	)		—			—			5		5		(19	)		(20	)		—		—
Amortization of net loss		57			85			81			44			16		11		18			18			—		23
Net periodic cost (benefit)		33			100			(44	)		25			42		39		11			13			16		108
Amortization of pre-merger regulatory asset		—			—			190			190			—		—		—			—			2		2
Total periodic cost	$	33		$	100		$	146		$	215		$	42	$	39	$	11		$	13		$	18	$	110

We expect to record pension and postretirement benefit costs of approximately $999,000 for 2013. Included in the $999,000 pension and postretirement benefit costs for 2013 is $769,000 related to continued amortization of the FPU pension regulatory asset, which represents the portion attributable to FPU’s regulated energy operations of the changes in funded status that occurred but were not recognized as part of net periodic benefit costs prior to the merger. This was deferred as a regulatory asset by FPU prior to the merger to be recovered through rates pursuant to a previous order by the Florida PSC. The unamortized balance of this regulatory asset was $5.0 million and $5.2 million at March 31, 2013 and December 31, 2012, respectively.

FPU continues to record as a regulatory asset a portion of the unrecognized pension and postretirement benefit costs related to its regulated operations after the merger pursuant to a Florida PSC order. The portion of the unrecognized pension and postretirement benefit costs related to FPU’s unregulated operations and Chesapeake’s operations is recorded to accumulated other comprehensive income/loss. The following table presents the amounts included in the regulatory asset and accumulated other comprehensive income/loss that were recognized as components of net periodic benefit cost during the three months ended March 31, 2013:

(in thousands)	Chesapeake Pension Plan		FPU Pension Plan		Chesapeake SERP		Chesapeake Postretirement Plan			FPU Medical Plan		Total
Prior service cost (credit)	$	—	$	—	$	5	($	19	)	$	—	($	14	)
Net loss		57		81		16		18			—		172
Total recognized in net periodic benefit cost	$	57	$	81	$	21	($	1	)	$	—	$	158
Recognized from accumulated other comprehensive loss (1)	$	57	$	15	$	21	($	1	)	$	—	$	92
Recognized from regulatory asset		—		66		—		—			—		66
Total	$	57	$	81	$	21	($	1	)	$	—	$	158

⁽¹⁾ See Note 8, “Accumulated Other Comprehensive Income (Loss).

We expect to contribute $364,000 and $842,000 to the Chesapeake and FPU pension plans, respectively, during the year 2013, representing minimum contribution payments required in 2013.

The Chesapeake Pension Supplemental Executive Retirement Plan (“SERP”), the Chesapeake Postretirement Plan and the FPU Medical Plan are unfunded and are expected to be paid out of our general funds. Cash benefits paid under the Chesapeake Pension SERP for the three months ended March 31, 2013, were $22,000; we expect to pay total cash benefits of approximately $88,000 in 2013. Cash benefits paid for the Chesapeake Postretirement Plan, primarily for medical claims for the three months ended March 31, 2013, totaled $22,000 and we have estimated that approximately $97,000 will be paid for such benefits in 2013. Cash benefits paid for the FPU Medical Plan, primarily for medical claims for the three months ended March 31, 2013, totaled $27,000. We estimate that approximately $258,000 will be paid for such benefits in 2013.