Interim Pension and Other Postretirement Benefits (Table)

9 Months Ended

Jun. 30, 2014

General Discussion of Pension and Other Postretirement Benefits [Abstract]

Components of net periodic pension cost table

The components of our net periodic pension cost for our pension and other postretirement benefit plans for the three and nine months ended June 30, 2014 and 2013 are presented in the following table. Most of these costs are recoverable through our gas distribution rates; however, a portion of these costs is capitalized into our gas distribution rate base. The remaining costs are recorded as a component of operation and maintenance expense. On October 2, 2013, due to the retirement of one of our executive officers, we recognized a settlement loss of $4.5 million associated with our Supplemental Executive Benefits Plan (SEBP). In association with his retirement, on October 2, 2013, we made a $16.8 million benefit payment from the SEBP. On April 1, 2013, due to the retirement of certain executives, we recognized a curtailment loss of $3.2 million associated with our SEBP and revalued the net periodic pension cost for the remainder of fiscal 2013. The revaluation of the net periodic pension cost resulted in an increase in the discount rate, effective April 1, 2013, to 4.21 percent, which reduced our net periodic pension cost by approximately $0.1 million for the remainder of the fiscal year. All other actuarial assumptions remained the same.

	Three Months Ended June 30
	Pension Benefits						Other Benefits
	2014			2013			2014			2013
	(In thousands)
Components of net periodic pension cost:
Service cost	$	4,738		$	5,194		$	4,196		$	4,700
Interest cost	6,824			6,019			3,987			3,241
Expected return on assets	(5,901		)	(5,739		)	(1,291		)	(997		)
Amortization of transition obligation	—			—			69			271
Amortization of prior service credit	(34		)	(35		)	(363		)	(363		)
Amortization of actuarial loss	3,931			5,432			158			1,049
Settlement loss	—			3,161			—			—
Net periodic pension cost	$	9,558		$	14,032		$	6,756		$	7,901

	Nine Months Ended June 30
	Pension Benefits						Other Benefits
	2014			2013			2014			2013
	(In thousands)
Components of net periodic pension cost:
Service cost	$	14,214		$	15,599		$	12,588		$	14,100
Interest cost	20,472			18,067			11,963			9,723
Expected return on assets	(17,702		)	(17,216		)	(3,875		)	(2,991		)
Amortization of transition obligation	—			—			205			811
Amortization of prior service credit	(102		)	(106		)	(1,088		)	(1,088		)
Amortization of actuarial loss	11,793			16,555			474			3,147
Settlement loss	4,539			3,161			—			—
Net periodic pension cost	$	33,214		$	36,060		$	20,267		$	23,702

Schedule of assumptions used table text block

The assumptions used to develop our net periodic pension cost for the three and nine months ended June 30, 2014 and 2013 are as follows:

	Supplemental Executive Benefit Plans				Pension Benefits				Other Benefits
	2014		2013		2014		2013		2014		2013
Discount rate	4.95	%	4.21	%	4.95	%	4.04	%	4.95	%	4.04	%
Rate of compensation increase	3.50	%	3.50	%	3.50	%	3.50	%	N/A		N/A
Expected return on plan assets	N/A		N/A		7.25	%	7.75	%	4.60	%	4.70	%