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PENSION PLANS AND OTHER POST-RETIREMENT BENEFITS (Tables)
 9 Months Ended
Sep. 30, 2014
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract]  
Net Periodic Cost
The net periodic pension costs include the following components:
 
Nine Months Ended
 
Calendar Year Ended December 31,
($ Millions)
September 30, 2014
 
2013
 
2012
Pension Plans
 
 
 
 
 
Components of net periodic benefit cost:
 
 
 
 
 
Service cost
$
5.1

 
$
14.2

 
$
10.5

Interest cost
4.1

 
11.2

 
10.8

Expected long-term return on assets
(5.2
)
 
(14.7
)
 
(14.1
)
Prior service cost amortization
0.1

 
0.5

 
0.6

Actuarial loss amortization
2.2

 
14.0

 
8.6

Amortization of prior regulatory assets and liabilities
0.4

 
—

 
—

Settlement charge
10.1

 
1.4

 
—

Net periodic expense
$
16.8

 
$
26.6

 
$
16.4

 
 
 
 
 
 
Postretirement Benefit Plans
 
 
 
 
 
Components of net periodic benefit cost:
 
 
 
 
 
Service cost
$
0.4

 
$
1.7

 
$
1.9

Interest cost
1.9

 
3.5

 
4.2

Expected long-term return on assets
(3.6
)
 
(5.0
)
 
(4.4
)
Actuarial (gain) loss amortization
(1.0
)
 
(0.1
)
 
—

Transition obligation amortization
—

 
1.3

 
1.9

Amortization of prior regulatory assets and liabilities
(0.2
)
 
—

 
—

Curtailment gain
—

 
(1.2
)
 
—

Net periodic expense
$
(2.5
)
 
$
0.2

 
$
3.6
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Obligations recognized in other comprehensive income were as follows:
 
Nine Months Ended
 
Calendar Year Ended December 31,
($ Millions)
September 30, 2014
 
2013
 
2012
Pension Plans
 
 
 
 
 
Net actuarial (gain) loss experienced during the year
$
1.5

 
$
(14.1
)
 
$
28.7

Net actuarial loss recognized as expense
—

 
(8.9
)
 
(4.9
)
Prior service cost recognized as expense
—

 
(0.3
)
 
(0.3
)
 
1.5

 
(23.3
)
 
23.5

Transfer to regulatory assets (liabilities)
(1.5
)
 
—

 
—

Other Comprehensive Income
$
—

 
$
(23.3
)
 
$
23.5

 
 
 
 
 
 
Postretirement Benefit Plans
 
 
 
 
 
Net actuarial (gain) loss experienced during the year
$
1.1

 
$
(8.1
)
 
$
(1.8
)
Net actuarial gain recognized as expense
—

 
0.6

 
—

Transition obligation recognized as expense
—

 
(0.3
)
 
(0.3
)
 
1.1

 
(7.8
)
 
(2.1
)
Transfer to regulatory assets (liabilities)
(1.1
)
 
—

 
—

Other Comprehensive Income
$
—

 
$
(7.8
)

$
(2.1
)
Reconciliation of the beginning and ending balances of benefit obligation
The following table sets forth the reconciliation of the beginning and ending balances of the pension benefit obligation:
 
September 30,
 
December 31,
 
September 30,
 
December 31,
 
2014
 
2013
 
2014
 
2013
($ MIllions)
Pension
 
Postretirement Benefits
Accumulated benefit obligation
$
129.6

 
$
253.0

 
 
 
 
Benefit obligation:
 
 
 
 
 
 
 
Balance at beginning of period
293.4

 
323.5

 
63.6

 
85.8

Energen portion of liability divested
(144.7
)
 
—

 
(13.3
)
 
—

Liability loss due to estimated allocation
16.9

 
—

 
7.7

 
—

Service cost
5.1

 
14.2

 
0.4

 
1.7

Interest cost
4.1

 
11.2

 
1.9

 
3.5

Actuarial (gain) loss
7.8

 
(28.3
)
 
4.3

 
(21.7
)
Curtailment gain
—

 
(4.2
)
 
—

 
(1.3
)
Retiree drug subsidy program
—

 
—

 
0.3

 
0.3

Benefits paid
(33.8
)
 
(23.0
)
 
(4.0
)
 
(4.7
)
Balance at end of period
$
148.8

 
$
293.4

 
$
60.9


$
63.6
Changes in fair value of plan assets
The following table sets forth the reconciliation of the beginning and ending balances of the fair value of plan assets:
 
September 30,
 
December 31,
 
September 30,
 
December 31,
 
2014
 
2013
 
2014
 
2013
($ Millions)
Pension
 
Postretirement Benefits
Plan assets:
 
 
 
 
 
 
 
Fair value of plan assets at beginning of period
$
219.5

 
$
209.3

 
$
98.9

 
$
87.1

Energen portion of assets divested
(90.9
)
 
—

 
(22.0
)
 
—

Asset gain due to estimated allocation
15.0

 
—

 
11.0

 
—

Actual return on plan assets
7.8

 
23.0

 
1.4

 
14.9

Employer contributions
1.6

 
10.2

 
0.3

 
1.6

Benefits paid
(33.8
)
 
(23.0
)
 
(4.0
)
 
(4.7
)
Fair value of plan assets at end of period
$
119.2

 
$
219.5

 
$
85.6

 
$
98.9

(Unfunded) funded status of plan
$
(29.6
)
 
$
(73.8
)
 
$
24.7

 
$
35.4
Amounts recognized in consolidated balance sheets
The following table sets forth the amounts recognized in the Balance Sheets:
 
September 30,
 
December 31,
 
September 30,
 
December 31,
 
2014
 
2013
 
2014
 
2013
($ Millions)
Pension
 
Postretirement Benefits
Noncurrent assets
$
—

 
$
—

 
$
24.7

 
$
35.4

Current liabilities
—

 
(6.1
)
 
—

 
—

Noncurrent liabilities
(29.6
)
 
(67.7
)
 
—

 
—

Net asset (liability) recognized
$
(29.6
)
 
$
(73.8
)
 
$
24.7

 
$
35.4

A summary of the Company's allocated share of the benefit plans described above is presented below as of the transition period and calendar year end, respectively:
 
September 30,
 
December 31,
 
September 30,
 
December 31,
 
2014
 
2013
 
2014
 
2013
($ MIllions)
Pension
 
Postretirement Benefits
Net benefit asset noncurrent
$
—

 
$
—

 
$
24.7

 
$
26.5

Net benefit liability noncurrent
(29.6
)
 
(20.2
)
 
—

 
—

Regulatory asset
67.8

 
58.5

 
4.7

 
—

Regulatory liability
$
(1.9
)
 
$
—

 
$
(26.6
)
 
$
(26.2
)
Assumptions used to calculate net periodic cost and benefit obligations.
Assumptions are used based on the unique set of characteristics for each of the individual pension and postretirement plans.
 
Nine Months Ended
 
Calendar Years Ended December 31,
 
September 30, 2014
 
2013
 
2012
Pension Plans
 
 
 
 
 
Discount rate
4.00% & 4.05%

 
3.63
%
 
4.52
%
Expected long-term return on plan assets
7.25% & 7.00%

 
7.00
%
 
7.00
%
Rate of compensation increase for pay-related plans
2.92
%
 
3.71
%
 
3.59
%
 
 
 
 
 
 
Postretirement Benefit Plans
 
 
 
 
 
Discount rate
4.25
%
 
4.26
%
 
4.95
%
Expected long-term return on plan assets
7.25% & 4.75%

 
7.00
%
 
7.00
%
The weighted average rate assumptions used to determine the projected benefit obligations at the measurement date were as follows:
 
September 30, 2014
 
December 31, 2013
Pension Plans
 
 
 
Discount rate
4.15% & 4.25%

 
4.30
%
Rate of compensation increase for pay-related plans
2.92
%
 
3.60
%
 
 
 
 
Postretirement Benefit Plans
 
 
 
Discount rate
4.40
%
 
5.00
%
Schedule of assumed post-65 health care cost trend rates
The assumed post-65 health care cost trend rates used to determine the postretirement benefit obligation at the measurement date were as follows:
 
September 30, 2014
 
December 31, 2013
Health care cost trend rate assumed for next year
7.25
%
 
6.50
%
Rate to which the cost trend rate is assumed to decline
5.00
%
 
5.00
%
Year that rate reaches ultimate rate
2020

 
2020
Schedule of effect of one-percent point change in assumed health care cost trend rates
Assumed health care cost trend rates used in determining the accumulated postretirement benefit obligation have an effect on the amounts reported. For example, revising the weighted average health care cost trend rate by 1 percentage point would have the following effects:
($ Millions)
1-Percentage Point Decrease
 
1-Percentage Point Increase
Effect on total of service and interest cost
$
—

 
$
—

Effect on net postretirement benefit obligation
(0.7
)
 
0.7
Targeted and actual plan assets by category
Following are the targeted and actual plan assets by asset category:
 
Pension
 
Postretirement Benefits
 
Target
 
September 30, 2014
 
December 31, 2013
 
Target
 
September 30, 2014
 
December 31, 2013
Asset category:
 
 
 
 
 
 
 
 
 
 
 
Equity securities
41.0
%
 
51.0
%
 
34.0
%
 
60.0
%
 
60.0
%
 
61.0
%
Debt securities
38.0
%
 
36.0
%
 
28.0
%
 
40.0
%
 
40.0
%
 
39.0
%
Other
21.0
%
 
13.0
%
 
38.0
%
 
—
%
 
—
%
 
—
%
Total
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
Plan assets included in the funded status of the postretirement benefit plans were as follows:
 
September 30, 2014
($ Millions)
Level 1
 
Level 2
 
Total
United States equities (1)
$
43.9

 
$
—

 
$
43.9

Global equities (2)
7.2

 
—

 
7.2

Fixed income (3)
—

 
34.4

 
34.4

Cash and cash equivalents
0.1

 
—

 
0.1

Total
$
51.2

 
$
34.4

 
$
85.6

 
December 31, 2013
($ Millions)
Level 1
 
Level 2
 
Total
United States equities
$
43.1

 
$
—

 
$
43.1

Global equities
17.0

 
—

 
17.0

Fixed income
—

 
38.8

 
38.8

Cash and cash equivalents
—

 
—

 
—

Total
$
60.1

 
$
38.8

 
$
98.9

Plan assets included in the funded status of the pension plans were as follows:
 
September 30, 2014
($ Millions)
Level 1
 
Level 2
Level 3
Total
United States equities (1)
$
30.4

 
$
13.6

 
$
—

 
$
44.0

Global equities (2)
12.3

 
0.0

 
—

 
12.3

Fixed income (3)
11.5

 
31.9

 
—

 
43.4

Alternative investments (4)
—

 
17.6

 
—

 
17.6

Cash and cash equivalents
0.3

 
1.6

 
—

 
1.9

Total
$
54.5

 
$
64.7

 
$
—

 
$
119.2

 
 
 
 
 
 
 
 
 
December 31, 2013
($ Millions)
Level 1
 
Level 2
Level 3
Total
United States equities (1)
$
34.1

 
$
8.1

 
$
—

 
$
42.2

Global equities (2)
20.1

 
13.3

 
—

 
33.4

Fixed income (3)
—

 
61.1

 
—

 
61.1

Alternative investments (4)
—

 
37.3

 
—

 
37.3

Cash and cash equivalents
6.0

 
39.5

 
—

 
45.5

Total
$
60.2

 
$
159.3

 
$
—

 
$
219.5
Reconciliation of plan assets in Level 3 of fair value hierarchy
The following is a reconciliation of plan assets in Level 3 of the fair value hierarchy:
 
Nine Months Ending September 30,
 
Calendar Year Ending December 31,
($ Millions)
2014
 
2013
Balance at beginning of period
$
—

 
$
14.5

Transfer out of level 3
—

 
(14.5
)
Balance at end of period
$
—

 
$
—
Expected benefit payments for the succeeding five fiscal years
The following benefit payments, which reflect expected future service, as appropriate, are anticipated to be paid as follows. In addition, the following benefits reflect the expected prescription drug subsidy related to the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (Act). The Act includes a prescription drug benefit under Medicare Part D as well as a federal subsidy which began in 2007:
($ Millions)

Pension Benefits
 
Postretirement Benefits
 
Postretirement Benefits – Prescription Drug Subsidy
2015
$
9.9

 
$
3.8

 
$
(0.2
)
2016
10.2

 
3.8

 
(0.2
)
2017
10.6

 
3.8

 
(0.2
)
2018
10.6

 
3.8

 
(0.2
)
2019
11.2

 
3.8

 
(0.3
)
2020-2024
58.7

 
18.6

 
(1.3
)