Employee Benefits

6 Months Ended

Jun. 30, 2011

Notes to Financial Statements [Abstract]

Benefits

8. Benefits

Components of Net Periodic Benefit Cost. The following table sets forth the components of net periodic benefit cost of the Company's pension and postretirement benefit plans for the periods presented.

		Pension Benefits				Other Postretirement Benefits
		Three Months Ended June 30,				Three Months Ended June 30,
		2011		2010		2011		2010
			(In thousands)
Service cost		$	935	$	768	$	881	$	793
Interest cost			2,525		2,509		1,446		1,409
Expected return on plan assets			(2,647)		(2,337)		(1,450)		(1,269)
Prior service cost (credit)
	amortization		147		138		(453)		(411)
Actuarial loss (gain)
	amortization		1,984		1,996		(403)		(451)
			2,944		3,074		21		71
Regulatory adjustment (1)			191		52		666		666
Net periodic benefit cost		$	3,135	$	3,126	$	687	$	737
		Pension Benefits				Other Postretirement Benefits
		Six Months Ended June 30,				Six Months Ended June 30,
		2011		2010		2011		2010
			(In thousands)
Service cost		$	1,870	$	1,535	$	1,761	$	1,586
Interest cost			5,050		5,019		2,892		2,819
Expected return on plan assets			(5,293)		(4,674)		(2,899)		(2,311)
Prior service cost (credit)
	amortization		294		276		(906)		(823)
Actuarial loss (gain)
	amortization		3,967		3,993		(806)		(901)
			5,888		6,149		42		370
Regulatory adjustment (1)			383		157		1,332		1,332
Net periodic benefit cost		$	6,271	$	6,306	$	1,374	$	1,702

________________________________

• In the Distribution segment, the Company recovers certain qualified pension benefit plan and other postretirement benefit plan costs through rates charged to utility customers. Certain utility commissions require that the recovery of these costs be based on the Employee Retirement Income Security Act of 1974, as amended, or other utility commission specific guidelines. The difference between these regulatory-based amounts and the periodic benefit cost calculated pursuant to GAAP is deferred as a regulatory asset or liability and amortized to expense over periods in which this difference will be recovered in rates, as promulgated by the applicable utility commission.