Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2013

EmployeeBenefitPlansTablesAbstract

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 2013 and 2012.

	December 31, (Thousands of Dollars)
	Pension Plan						Other Benefits Plan
	2013			2012			2013			2012
Change in Projected Benefit Obligation:
Beginning Balance	$	62,817		$	56,201		$	50,608		$	43,121
Plan Amendment*		—			—			(10,244	)		—
Service Cost		2,300			2,198			1,338			1,784
Interest Cost		2,468			2,417			1,594			1,868
Actuarial (Gain) Loss		(9,694	)		3,833			(5,595	)		4,425
Benefits Paid		(1,850	)		(1,832	)		(489	)		(590	)
Ending Balance	$	56,041		$	62,817		$	37,212		$	50,608
*See discussion of Other Benefits Plan amendment in “Other Benefits” above.
Change in Fair Value of Plan Assets:
Beginning Balance	$	37,904		$	32,196		$	20,408		$	15,817
Actual Return on Plan Assets		6,779			3,879			2,553			1,241
Employer Contributions		3,610			3,661			2,673			3,940
Benefits Paid		(1,850	)		(1,832	)		(489	)		(590	)
Ending Balance	$	46,443		$	37,904		$	25,145		$	20,408
Funded Status	$	(9,598	)	$	(24,913	)	$	(12,067	)	$	(30,200	)

Amounts recognized in balance sheet

	December 31,
	(Thousands of Dollars)
	Pension Plan						Other Benefits Plan
	2013			2012			2013			2012
Amounts Recognized in the Consolidated Balance Sheets consist of:
Current Liability		(330	)		(345	)		—			—
Noncurrent Liability		(9,268	)		(24,568	)		(12,067	)		(30,200	)
Net Liability Recognized	$	(9,598	)	$	(24,913	)	$	(12,067	)	$	(30,200	)

Components of net benefit cost

	Years Ended December 31,
	(Thousands of Dollars)
	Pension Plan									Other Benefits Plan
	2013			2012			2011			2013			2012			2011
Components of Net Periodic Benefit Cost
Service Cost	$	2,300		$	2,198		$	1,575		$	1,338		$	1,784		$	1,306
Interest Cost		2,468			2,417			2,261			1,594			1,868			1,604
Expected Return on Plan Assets		(2,894	)		(2,458	)		(2,283	)		(1,622	)		(1,258	)		(1,026	)
Amortization of Net Transition Obligation		—			—			—			—			135			135
Amortization of Net Actuarial Loss		1,632			1,549			565			2,066			1,765			878
Amortization of Prior Service Cost		10			10			10			(1,728	)		—			—
Net Periodic Benefit Cost	$	3,516		$	3,716		$	2,128		$	1,648		$	4,294		$	2,897

Amounts expected to be amortized from regulatory assets

Amounts that are expected to be amortized from Regulatory Assets into Net Periodic Benefit Cost in 2014 are as follows:

	(Thousands of Dollars)
	Pension Plan		Other Benefits Plan
Actuarial Loss	$	416	$	1,413
Prior Service Cost		2		(1,728	)

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, 2013, 2012 and 2011, respectively, are as follows:

	Pension Plan						Other Benefits Plan
	2013		2012		2011		2013		2012		2011
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		4.87%		3.99%		4.37%		4.87%		3.99%		4.37%
Benefit Cost		3.99%		4.37%		5.48%		3.99%		4.37%		5.48%
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	$	652	$	(498	)
Effect on Projected Benefit Obligation	$	6,008	$	(4,794	)

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
2014	$	1,966	$	838
2015		1,966		1,005
2016		1,944		1,158
2017		2,243		1,323
2018		2,306		1,455
2019-2023		15,033		9,304
Totals	$	25,458	$	15,083

Allocation of plan assets

The allocation of plan assets at December 31, 2013 and 2012 by asset category is as follows:

	Pension Plan				Other Benefits Plan
Asset Category	2013		2012		2013		2012		Target		Range
Equity Securities		65.4%		60.9%		47.8%		40.3%		60%		30-70%
Debt Securities		32.1%		32.9%		47.9%		53.0%		38%		25-70%
Cash		0.8%		6.0%		3.6%		5.9%		2%		0-10%
Real Estate/Commodities		1.7%		0.2%		0.7%		0.8%		0%		0-5%
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, 2013 (amounts in thousands):

	Level 1		Level 2		Level 3		Total
Mutual Funds:
Small Cap Core	$	191	$	—	$	—		191
Small Cap Value		278		—		—		278
Mid Cap Growth		1,015		—		—		1,015
Mid Cap Value		555		—		—		555
Large Cap Core		13,916		—		—		13,916
Foreign Small Mid Growth		298		—		—		298
Foreign Large Core		863		—		—		863
Foreign Large Growth		457						457
Foreign Large Blend		2,439		—		—		2,439
Pacific Asia/ex-Japan Stock		157						157
Diversified Emerging Markets		590		—		—		590
Intermediate Term Bond		14,909		—		—		14,909
Real Asset		1,074		—		—		1,074
Money Market Funds:
Cash and Cash Equivalents		44		313		—		357
Equity Securities:
Non-Financial Services		147		—		—		147
Financial Services		1,882		—		—		1,882
Utilities		1,433		—		—		1,433
Consumer Growth		1,665		—		—		1,665
Consumer Staples		392		—		—		392
Consumer Cyclicals		1,063		—		—		1,063
Industrial Resources		149		—		—		149
Capital Equipment		419		—		—		419
Technology		1,319		—		—		1,319
Energy		875		—		—		875
Total Investments	$	46,130	$	313	$	—	$	46,443

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 Asia/ex-Japan Stock		164						164
Diversified 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 (1)		—		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 Other Benefits Plan assets measured and recorded at fair value within the fair value hierarchy as of December 31, 2013 (amounts in thousands):

	Level 1		Level 2		Level 3		Total
Mutual Funds:
Small Cap Core	$	290	$	—	$	—	$	290
Mid Cap Core		264		—		—		264
Mid Cap Growth		470		—		—		470
Mid Cap Value		658		—		—		658
Large Cap Core		8,650		—		—		8,650
Foreign Small Mid Growth		361		—		—		361
Foreign Large Core		780		—		—		780
Foreign Large Growth		151		—		—		151
Foreign Large Value		86		—		—		86
Pacific Asia/ex-Japan Stock		125						125
Diversified Emerging Markets		195		—		—		195
Preferred Stock Index		110		—		—		110
Real Estate Index		59		—		—		59
Money Market Funds:
Cash and Cash Equivalents		—		895		—		895
Agency/US/State/Municipal Debt		767		11,161		—		11,928
Commodities		123		—		—		123
Total Investments	$	13,089	$	12,056	$	—	$	25,145

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

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, 2011		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
Granted		28			589		$	21.20
Vested		(24	)		—
Forfeited		(1	)		(12	)
Amortization of Compensation Expense		—			(400	)
Balance, December 31, 2013		117		$	1,216