Benefit Plans and Other Postretirement Benefits

9 Months Ended

Sep. 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 Sept. 30
	2012				2011				2012				2011
									Postretirement Health
(Thousands of Dollars)		Pension Benefits							Care Benefits
Service cost		$	1,142			$	1,067			$	5			$	4
Interest cost			1,918				2,007				268				287
Expected return on plan assets			(2,622	)			(2,871	)			(13	)			(19	)
Amortization of transition obligation			-				-				42				42
Amortization of prior service cost (credit)			442				473				(4	)			(4	)
Amortization of net loss			1,460				1,019				123				93
Net benefit cost recognized for financial reporting		$	2,340			$	1,695			$	421			$	403

	Nine Months Ended Sept. 30
	2012				2011				2012				2011
									Postretirement Health
(Thousands of Dollars)		Pension Benefits							Care Benefits
Service cost		$	3,426			$	3,203			$	15			$	13
Interest cost			5,753				6,023				806				859
Expected return on plan assets			(7,867	)			(8,613	)			(38	)			(56	)
Amortization of transition obligation			-				-				128				128
Amortization of prior service cost (credit)			1,328				1,421				(11	)			(11	)
Amortization of net loss			4,382				3,053				365				275
Net benefit cost recognized for financial reporting		$	7,022			$	5,087			$	1,265			$	1,208

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 Sept. 30, 2012, the mark-to-market value of these arrangements was not material to the value of the pension trust assets or NSP-Wisconsin's results of operations, cash flows or financial position. These arrangements will expire in December 2012.