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Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2019

Change in projected benefit obligation and fair value of plan assets

The Company uses a December 31 measurement date for all of its employee benefit plans. The tables below set forth information relating to the Company’s Pension Plan and Other Benefits Plan for 2019 and 2018.

	(Thousands of Dollars)
	Pension Plan						Other Benefits Plan
	December 31,
	2019			2018			2019			2018
Change in Projected Benefit Obligation:
Beginning Balance	$	83,927		$	88,013		$	48,474		$	54,345
Service Cost		2,171			2,426			839			1,135
Interest Cost		3,426			3,061			1,984			1,898
Actuarial (Gain) Loss		14,188			(7,018	)		4,671			(8,160	)
Benefits Paid		(2,821	)		(2,555	)		(802	)		(744	)
Ending Balance	$	100,891		$	83,927		$	55,166		$	48,474

	(Thousands of Dollars)
	Pension Plan						Other Benefits Plan
	December 31,
	2019			2018			2019			2018
Change in Fair Value of Plan Assets:
Beginning Balance	$	66,771		$	69,215		$	34,622		$	36,083
Actual Return on Plan Assets		12,753			(3,524	)		5,192			(2,161	)
Employer Contributions		3,677			3,635			1,601			1,444
Benefits Paid		(2,821	)		(2,555	)		(802	)		(744	)
Ending Balance	$	80,380		$	66,771		$	40,613		$	34,622

Funded Status	$	(20,511	)	$	(17,156	)	$	(14,553	)	$	(13,852	)

Amounts recognized in balance sheet

	(Thousands of Dollars)
	Pension Plan				Other Benefits Plan
	December 31,
	2019		2018		2019		2018
Amounts Recognized in the Consolidated Balance Sheets consist of :
Current Liability		393		347		—		—
Noncurrent Liability		20,118		16,809		14,553		13,852
Net Liability Recognized	$	20,511	$	17,156	$	14,553	$	13,852

Components of net benefit cost

	(Thousands of Dollars)
	Pension Plan									Other Benefits Plan
	Years Ended December 31,
	2019			2018			2017			2019			2018			2017
Components of Net Periodic Benefit Cost
Service Cost	$	2,171		$	2,426		$	2,399		$	839		$	1,135		$	1,089
Interest Cost		3,426			3,061			3,143			1,984			1,898			1,964
Expected Return on Plan Assets		(4,694	)		(4,871	)		(4,489	)		(2,451	)		(2,550	)		(2,406	)
Amortization of Net Actuarial Loss		1,618			1,658			1,566			1,319			1,787			1,781
Amortization of Prior Service Credit		—			—			—			—			(1,607	)		(1,728	)
Net Periodic Benefit Cost*	$	2,521		$	2,274		$	2,619		$	1,691		$	663		$	700

*Service cost is included in Operations and Maintenance expense on the consolidated statements of income; all other amounts are included in Other Income (Expense), net.

Amounts expected to be amortized from regulatory assets

Amounts that are expected to be amortized from Regulatory Assets into Net Periodic Benefit Cost in 2020 are as follows:

(Thousands of Dollars)

Pension

Plan

Other

Benefits

Plan

Actuarial Loss

2,059

1,351

Discount and compensation rates

The discount rate and compensation increase rate for determining our postretirement benefit plans’ benefit obligations and costs as of and for the years ended December 31, 2019, 2018 and 2017, respectively, are as follows:

Pension Plan Other Benefits Plan

	Pension Plan						Other Benefits Plan
	2019		2018		2017		2019		2018		2017
Weighted Average Assumptions:
Expected Return on Plan Assets	7.00	%	7.00	%	7.50	%	7.00	%	7.00	%	7.50	%
Discount Rate for:
Benefit Obligation	3.12	%	4.15	%	3.53	%	3.12	%	4.15	%	3.53	%
Benefit Cost	4.15	%	3.53	%	4.06	%	4.15	%	3.53	%	4.06	%
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 Service and Interest Costs	$	545	$	(424	)
Effect on Projected Benefit Obligation	$	9,036	$	(7,143	)

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
2020	$	3,152	$	1,426
2021		3,144		1,639
2022		3,309		1,916
2023		3,720		2,006
2024		4,652		2,089
2025-2029		26,501		11,652
Totals	$	44,478	$	20,728

Allocation of plan assets

The allocation of plan assets at December 31, 2019 and 2018 by asset category is as follows:

	Pension Plan									Other Benefits Plan
Asset Category	2019			2018			Target			2019			2018			Target
Equity Securities		61.5	%		59.5	%		55	%		60.0	%		54.7	%		43	%
Debt Securities		36.5	%		36.5	%		38	%		33.0	%		37.3	%		50	%
Cash		0.5	%		1.6	%		2	%		7.0	%		8.0	%		2	%
Real Estate/Commodities		1.5	%		2.4	%		5	%		0.0	%		0.0	%		5	%
Total		100.0	%		100.0	%					100.0	%		100.0	%

Fair value of plan assets

The following tables present Middlesex’s Pension Plan assets measured and recorded at fair value within the fair value hierarchy:

	(Thousands of Dollars)
	As of December 31, 2019
	Level 1		Level 2		Level 3		Total
Mutual Funds	$	69,565	$	—	$	—	$	69,565
Money Market Funds		397		—		—		397
Common Equity Securities		10,418		—		—		10,418
Total Investments	$	80,380	$	—	$	—	$	80,380

	(Thousands of Dollars)
	As of December 31, 2018
	Level 1		Level 2		Level 3		Total
Mutual Funds	$	57,014	$	—	$	—	$	57,014
Money Market Funds		1,074		—		—		1,074
Common Equity Securities		8,683		—		—		8,683
Total Investments	$	66,771	$	—	$	—	$	66,771

The following tables present Middlesex’s Other Benefits Plan assets measured and recorded at fair value within the fair value hierarchy:

	(Thousands of Dollars)
	As of December 31, 2019
	Level 1		Level 2		Level 3		Total
Mutual Funds	$	24,361	$	—	$	—	$	24,361
Money Market Funds		2,859		—		—		2,859
Agency/US/State/Municipal Debt		—		13,393		—		13,393
Total Investments	$	27,220	$	13,393	$	—	$	40,613

Index

	(Thousands of Dollars)
	As of December 31, 2018
	Level 1		Level 2		Level 3		Total
Mutual Funds	$	18,924	$	—	$	—	$	18,924
Money Market Funds		2,769		—		—		2,769
Agency/US/State/Municipal Debt		—		12,929		—		12,929
Total Investments	$	21,693	$	12,929	$	—	$	34,622

Restricted stock plan

The following table presents information on the 2018 Restricted Stock Plan:

	Shares (thousands)			Unearned Compensation (thousands)			Weighted Average Grant Price
Balance, January 1, 2017		132		$	1,764
Granted		22			799		$	36.95
Vested		(20	)		—
Forfeited		(2	)		(54	)
Amortization of Compensation Expense		—			(724	)
Balance, December 31, 2017		132		$	1,785
Granted		22			827		$	36.53
Vested		(27	)		—
Forfeited		(2	)		(18	)
Amortization of Compensation Expense		—			(956	)
Balance, December 31, 2018		125		$	1,638
Granted		18			975		$	55.99
Vested		(28	)		—
Forfeited		(18	)		—
Amortization of Compensation Expense		—			(907	)
Balance, December 31, 2019		97		$	1,706