Retirement Benefits

9 Months Ended

Sep. 30, 2011

Retirement Benefits

Retirement Benefits

Note 8 — Retirement Benefits

Net periodic benefit cost, some of which is capitalized as a component of labor cost and some of which is deferred as a regulatory asset, is comprised of the following components and is shown for our noncontributory defined benefit pension plan, our supplemental retirement program (SERP) and other postretirement benefits (OPEB) (in thousands):

	Three months ended September 30,
	Pension Benefits						SERP						OPEB
	2011			2010			2011			2010			2011			2010
Service cost	$	1,399		$	1,119		$	23		$	18		$	566		$	585
Interest cost	2,601			2,486			46			37			1,096			1,122
Expected return on plan assets	(2,785		)	(2,419		)	—			—			(1,039		)	(950		)
Amortization of prior service cost (1)	133			133			(2		)	(2		)	(253		)	(253		)
Amortization of net actuarial loss (1)	1,374			930			43			8			441			436
Net periodic benefit cost	$	2,722		$	2,249		$	110		$	61		$	811		$	940

	Nine months ended September 30,
	Pension Benefits						SERP						OPEB
	2011			2010			2011			2010			2011			2010
Service cost	$	4,197		$	3,665		$	70		$	52		$	1,699		$	1,603
Interest cost	7,804			7,586			137			115			3,287			3,247
Expected return on plan assets	(8,354		)	(7,385		)	—			—			(3,118		)	(2,883		)
Amortization of prior service cost (1)	398			399			(6		)	(6		)	(758		)	(758		)
Amortization of net actuarial loss (1)	4,121			2,997			128			72			1,322			1,124
Net periodic benefit cost	$	8,166		$	7,262		$	329		$	233		$	2,432		$	2,333

	Twelve months ended September 30,
	Pension Benefits						SERP						OPEB
	2011			2010			2011			2010			2011			2010
Service cost	$	5,418		$	4,818		$	87		$	68		$	2,234		$	2,060
Interest cost	10,333			10,055			176			152			4,370			4,224
Expected return on plan assets	(10,816		)	(9,980		)	—			—			(4,079		)	(3,843		)
Amortization of prior service cost (1)	532			550			(8		)	(8		)	(1,011		)	(1,011		)
Amortization of net actuarial loss (1)	5,120			3,792			152			98			1,696			1,341
Net periodic benefit cost	$	10,587		$	9,235		$	407		$	310		$	3,210		$	2,771

(1) Amounts are amortized from our regulatory asset originally recorded upon recognizing our net pension liability on the balance sheet.

In accordance with our regulatory agreements, our funding policy is to make contributions that are at least equal to the greater of either the minimum funding requirements of ERISA or the accrued cost of the plan. We made the following quarterly contributions to our Pension Trust in 2011: $13.5 million on March 29, 2011, $2.1 million on April 13, 2011, $2.1 million on July 14, 2011, and $2.1 million on October 6, 2011. In addition to these quarterly contributions, we made an additional $10.0 million contribution on September 16, 2011. The actual minimum funding requirements for 2012 will be determined by the performance of our pension assets during 2011. Our OPEB funding policy is to contribute annually an amount at least equal to the actuarial cost of postretirement benefits.