Benefit Plans and Other Postretirement Benefits

6 Months Ended

Jun. 30, 2012

Benefit Plans and Other Postretirement Benefits [Abstract]

Benefit Plans and Other Postretirement Benefits

11.   Benefit Plans and Other Postretirement Benefits

 

Components of Net Periodic Benefit Cost

 

	Three Months Ended June 30
	2012				2011				2012				2011
									Postretirement Health
(Thousands of Dollars)			Pension Benefits								Care Benefits
Service cost		$	1,150			$	1,234			$	5			$	5
Interest cost			1,925				1,998				274				300
Expected return on plan assets			(2,634	)			(2,841	)			(12	)			(18	)
Amortization of transition obligation			-				-				43				43
Amortization of prior service cost (credit)			443				474				(3	)			(3	)
Amortization of net loss			1,487				1,066				128				94
Net benefit cost recognized for financial reporting		$	2,371			$	1,931			$	435			$	421

	Six Months Ended June 30
	2012				2011				2012				2011
									Postretirement Health
(Thousands of Dollars)			Pension Benefits								Care Benefits
Service cost		$	2,284			$	2,136			$	10			$	9
Interest cost			3,835				4,016				538				572
Expected return on plan assets			(5,245	)			(5,742	)			(25	)			(37	)
Amortization of transition obligation			-				-				86				86
Amortization of prior service cost (credit)			886				948				(7	)			(7	)
Amortization of net loss			2,922				2,034				242				182
Net benefit cost recognized for financial reporting		$	4,682			$	3,392			$	844			$	805

In January 2012, contributions of $190.5 million were made across four of Xcel Energy's pension plans, of which $12.3 million was attributable to NSP-Wisconsin.  Xcel Energy does not expect additional pension contributions during 2012.

In June 2012, to manage volatility in equity pricing within the pension master trust, Xcel Energy entered into equity collar contracts with a net-zero cost at initiation on a portion of the equity securities.  The equity collar strategy is designed to reduce potential equity losses while limiting gains, resulting in lower equity volatility for the pension plans.  At June 30, 2012, the mark-to-market value of these arrangements was not material to the value of the pension trust assets.  These arrangements will expire in December 2012.