Retirement Benefits

6 Months Ended

Jun. 30, 2012

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 June 30,
	Pension Benefits						SERP						OPEB
	2012			2011			2012			2011			2012			2011
Service cost	$	1,628		$	1,404		$	7		$	27		$	565		$	507
Interest cost	2,551			2,612			56			51			1,032			1,062
Expected return on plan assets	(3,076		)	(2,889		)	—			—			(1,041		)	(1,028		)
Amortization of prior service cost (1)	133			133			(2		)	(2		)	(253		)	(253		)
Amortization of net actuarial loss (1)	1,950			1,395			76			52			468			381
Net periodic benefit cost	$	3,186		$	2,655		$	137		$	128		$	771		$	669

	Six months ended June 30,
	Pension Benefits						SERP						OPEB
	2012			2011			2012			2011			2012			2011
Service cost	$	3,256		$	2,798		$	15		$	47		$	1,129		$	1,133
Interest cost	5,102			5,203			111			91			2,065			2,192
Expected return on plan assets	(6,151		)	(5,569		)	—			—			(2,083		)	(2,078		)
Amortization of prior service cost (1)	266			266			(4		)	(4		)	(505		)	(505		)
Amortization of net actuarial loss (1)	3,899			2,747			153			85			935			881
Net periodic benefit cost	$	6,372		$	5,445		$	275		$	219		$	1,541		$	1,623

	Twelve months ended June 30,
	Pension Benefits						SERP						OPEB
	2012			2011			2012			2011			2012			2011
Service cost	$	6,054		$	5,139		$	62		$	83		$	2,262		$	2,253
Interest cost	10,305			10,218			203			166			4,257			4,396
Expected return on plan assets	(11,721		)	(10,450		)	—			—			(4,161		)	(3,990		)
Amortization of prior service cost (1)	532			531			(8		)	(8		)	(1,011		)	(1,011		)
Amortization of net actuarial loss (1)	6,647			4,676			238			118			1,816			1,691
Net periodic benefit cost	$	11,817		$	10,114		$	495		$	359		$	3,163		$	3,339

(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 have contributed $8.1 million to our Pension Trust in 2012 and expect our remaining 2012 contribution to be approximately $3.0 million. The actual minimum funding requirements will be determined based on the results of the actuarial valuations. Our OPEB funding policy is to contribute annually an amount at least equal to the actuarial cost of postretirement benefits.