Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2012

Employee Benefit Plans Tables

Change in projected benefit obligation and fair value of plan assets

The table below sets forth information relating to the Company’s Pension Plan and Other Benefits Plan for 2012 and 2011.

	December 31,
	(Thousands of Dollars)
	Pension Plan						Other Benefits Plan
	2012			2011			2012			2011
Change in Projected Benefit Obligation:
Beginning Balance	$	56,201		$	42,138		$	43,121		$	29,605
Service Cost		2,198			1,574			1,784			1,306
Interest Cost		2,417			2,261			1,868			1,604
Actuarial Loss		3,833			12,047			4,425			11,121
Benefits Paid		(1,832	)		(1,819	)		(590	)		(515	)
Ending Balance	$	62,817		$	56,201		$	50,608		$	43,121
Change in Fair Value of Plan Assets:
Beginning Balance	$	32,196		$	29,989		$	15,817		$	12,890
Actual Return on Plan Assets		3,879			470			1,241			177
Employer Contributions		3,661			3,556			3,940			3,265
Benefits Paid		(1,832	)		(1,819	)		(590	)		(515	)
Ending Balance	$	37,904		$	32,196		$	20,408		$	15,817
Funded Status	$	(24,913	)	$	(24,005	)	$	(30,200	)	$	(27,304	)

Amounts recognized in balance sheet

	December 31,
	(Thousands of Dollars)
	Pension Plan						Other Benefits Plan
	2012			2011			2012			2011
Amounts Recognized in the Consolidated Balance Sheets consist of:
Current Liability		(345	)		(303	)		—			—
Noncurrent Liability		(24,568	)		(23,702	)		(30,200	)		(27,304	)
Net Liability Recognized	$	(24,913	)	$	(24,005	)	$	(30,200	)	$	(27,304	)

Components of net benefit cost

	Years Ended December 31,
	(Thousands of Dollars)
	Pension Plan									Other Benefits Plan
	2012			2011			2010			2012			2011			2010
Components of Net Periodic Benefit Cost
Service Cost	$	2,198		$	1,575		$	1,396		$	1,784		$	1,306		$	1,025
Interest Cost		2,417			2,261			2,228			1,868			1,604			1,335
Expected Return on Plan Assets		(2,458	)		(2,283	)		(2,020	)		(1,258	)		(1,026	)		(759	)
Amortization of Net Transition Obligation		—			—			—			135			135			135
Amortization of Net Actuarial Loss		1,549			565			506			1,765			878			531
Amortization of Prior Service Cost		10			10			10			—			—			—
Net Periodic Benefit Cost	$	3,716		$	2,128		$	2,120		$	4,294		$	2,897		$	2,267

Amounts expected to be amortized from regulatory assets

Amounts that are expected to be amortized from Regulatory Assets into Net Periodic Benefit Cost in 2013 are as follows:

	(Thousands of Dollars)
	Pension Plan		Other Benefits Plan
Actuarial Loss	$	1,632	$	1,976
Prior Service Cost		10		—

Discount and compensation rates

The discount rate and compensation increase rate for determining our postretirement benefit plans’ benefit obligations and costs as of December 31, 2012, 2011 and 2010, respectively, are as follows:

	Pension Plan						Other Benefits Plan
	2012		2011		2010		2012		2011		2010
Weighted Average Assumptions:
Expected Return on Plan Assets		7.50%		7.50%		7.50%		7.50%		7.50%		7.50%
Discount Rate for:
Benefit Obligation		3.99%		4.37%		5.48%		3.99%		4.37%		5.48%
Benefit Cost		4.37%		5.48%		5.95%		4.37%		5.48%		5.95%
Compensation Increase for:
Benefit Obligation		3.00%		3.00%		3.00%		3.00%		3.00%		3.00%
Benefit Cost		3.00%		3.00%		3.00%		3.00%		3.00%		3.00%

Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

A one-percentage point change in assumed healthcare cost trend rates would have the following effects on the Other Benefits Plan:

	(Thousands of Dollars)
	1 Percentage Point
	Increase		Decrease
Effect on Current Year’s Service and Interest Cost	$	838	$	(640	)
Effect on Projected Benefit Obligation	$	9,560	$	(7,477	)

Expected benefit payments

The following benefit payments, which reflect expected future service, are expected to be paid:

	(Thousands of Dollars)
Year	Pension Plan		Other Benefits Plan
2013	$	1,949	$	827
2014		1,938		988
2015		1,931		1,158
2016		1,951		1,321
2017		2,263		1,503
2018-2022		12,950		9,969
Totals	$	22,982	$	15,766

Allocation of plan assets

The allocation of plan assets at December 31, 2012 and 2011 by asset category is as follows

	Pension Plan						Other Benefits Plan
Asset Category	2012			2011			2012			2011			Target			Range
Equity Securities		60.9	%		61.6	%		40.3	%		37.0	%		60	%		30-65%
Debt Securities		32.9	%		31.3	%		53.0	%		57.8	%		38	%		25-70%
Cash		6.0	%		6.9	%		5.9	%		4.6	%		2	%		0-10%
Commodities		0.2	%		0.2	%		0.8	%		0.6	%		0	%		0%
Total		100.0	%		100.0	%		100.0	%		100.0	%

Fair value of plan assets

The following table presents Middlesex’s Pension Plan assets measured and recorded at fair value within the fair value hierarchy as of December 31, 2012 (amounts in thousands):

	Level 1		Level 2		Level 3		Total
Common Trust Fund-Large Cap	$	—	$	10,409	$	—	$	10,409
Mutual Funds:
Mid Cap Growth		703		—		—		703
Mid Cap Value		412		—		—		412
Foreign Small Mid Growth		255		—		—		255
Foreign Large Blend		710		—		—		710
Pacific Asis/ex-Japan Stock		164						164
Diversied Emerging Markets		222		—		—		222
Preferred Stock Index		82		—		—		82
Money Market Funds:
Cash and Cash Equivalents		2,385		747		—		3,132
Equity Securities:
Non-Financial Services		293		—		—		293
Financial Services		1,883		—		—		1,883
Utilities		1,334		—		—		1,334
Consumer Growth		1,778		—		—		1,778
Consumer Staples		931		—		—		931
Consumer Cyclicals		886		—		—		886
Industrial Resources		224		—		—		224
Capital Equipment		669		—		—		669
Technology		1,324		—		—		1,324
Energy		860		—		—		860
Corporate Bonds		—		3,575		—		3,575
Mortgage-Backed Securities (1)		—		2,570		—		2,570
Asset-Backed Securities		—		25		—		25
Agency/US/State/Municipal Debt				5,312		—		5,312
Sovereign/Non-US Debt		—		63		—		63
Commodities		88		—		—		88
Total Investments	$	15,203	$	22,701	$	—	$	37,904

(1) Mortgage-backed securities represent AAA rated securities and substantially all of the asset-backed securities are highly-rated (Standard & Poor’s rating of AA+), secured primarily by credit card, auto loan, and home equity receivables.

The following table presents Middlesex’s Pension Plan assets measured and recorded at fair value within the fair value hierarchy as of December 31, 2011 (amounts in thousands):

	Level 1		Level 2		Level 3		Total
Common Trust Fund-Large Cap	$	—	$	7,641	$	—	$	7,641
Mutual Funds:
Mid Cap Growth		655		—		—		655
Mid Cap Value		356		—		—		356
Foreign Small Mid Growth		214		—		—		214
Foreign Large Core		97		—		—		97
Foreign Large Blend		586		—		—		586
Diversied Emerging Markets		281		—		—		281
Preferred Stock Index		74		—		—		74
Money Market Funds:
Cash and Cash Equivalents		1,389		1,281		—		2,670
Equity Securities:
Non-Financial Services		189		—		—		189
Financial Services		1,289		—		—		1,289
Utilities		1,629		—		—		1,629
Consumer Growth		1,685		—		—		1,685
Consumer Staples		956		—		—		956
Consumer Cyclicals		853		—		—		853
Industrial Resources		159		—		—		159
Capital Equipment		651		—		—		651
Technology		1,345		—		—		1,345
Energy		1,160		—		—		1,160
Other		40		—		—		40
Corporate Bonds		—		2,324		—		2,324
Mortgage-Backed Securities (1)		—		2,527		—		2,527
Asset-Backed Securities		—		27		—		27
Agency/US/State/Municipal Debt		129		4,532		—		4,661
Sovereign/Non-US Debt		—		75		—		75
Commodities		52		—		—		52
Total Investments	$	13,789	$	18,407	$	—	$	32,196

(1) Mortgage-backed securities represent AAA rated securities and substantially all of the asset-backed securities are highly-rated (Standard & Poor’s rating of AA+), secured primarily by credit card, auto loan, and home equity receivables.

The following table presents Middlesex’s Other Benefits Plan assets measured and recorded at fair value within the fair value hierarchy as of December 31, 2012 (amounts in thousands):

	Level 1		Level 2		Level 3		Total
Mutual Funds:
Small Cap Core	$	97	$	—	$	—	$	97
Mid Cap Core		104		—		—		104
Mid Cap Growth		290		—		—		290
Mid Cap Value		446		—		—		446
Large Cap Core		5,270		—		—		5,270
Large Cap Growth		902		—		—		902
Large Cap Value				—		—		—
Foreign Small Mid Growth		303		—		—		303
Foreign Large Core		234		—		—		234
Foreign Large Growth		292		—		—		292
Diversified Emerging Markets		282		—		—		282
Preferred Stock Index		119		—		—		119
Money Market Funds:
Cash and Cash Equivalents		—		1,205		—		1,205
Agency/US/State/Municipal Debt		780		9,914		—		10,694
Commodities		170		—		—		170
Total Investments	$	9,289	$	11,119	$	—	$	20,408

The following table presents Middlesex’s Other Benefits Plan assets measured and recorded at fair value within the fair value hierarchy as of December 31, 2011 (amounts in thousands):

	Level 1		Level 2		Level 3		Total
Mutual Funds:
Small Cap Core	$	90	$	—	$	—	$	90
Mid Cap Core		48		—		—		48
Mid Cap Growth		253		—		—		253
Mid Cap Value		288		—		—		288
Large Cap Core		3,406		—		—		3,406
Large Cap Growth		398		—		—		398
Large Cap Value		349		—		—		349
Foreign Small Mid Growth		225		—		—		225
Foreign Large Core		279		—		—		279
Foreign Large Growth		247		—		—		247
Diversified Emerging Markets		163		—		—		163
Preferred Stock Index		107		—		—		107
Money Market Funds:
Cash and Cash Equivalents		—		818		—		818
Agency/US/State/Municipal Debt		424		8,622		—		9,046
Commodities		100		—		—		100
Total Investments	$	6,377	$	9,440	$	—	$	15,817

Restricted stock plan

The following table presents information on the 2008 Restricted Stock Plan:

	Shares (thousands)			Unearned Compensation (thousands)			Weighted Average Grant Price
Balance, January 1, 2010		93		$	990
Granted		14			239		$	16.97
Vested		(13	)		—
Forfeited		—			—
Amortization of Compensation Expense		—			(338	)
Balance, December 31, 2010		94		$	891
Granted		30			518		$	16.97
Vested		(15	)		—
Forfeited		(1	)		(7	)
Amortization of Compensation Expense		—			(323	)
Balance, December 31, 2011		108		$	1,079
Granted		21			408		$	19.35
Vested		(15	)		—
Forfeited		—			—
Amortization of Compensation Expense		—			(448	)
Balance, December 31, 2012		114		$	1,039