Benefit Plans and Other Postretirement Benefits

Consistent with the process for rate recovery of pension and postretirement benefits for its employees, PSCo accounts for its participation in, and related costs of, pension and other postretirement benefit plans sponsored by Xcel Energy Inc. as multiple employer plans. PSCo is responsible for its share of cash contributions, plan costs and obligations and is entitled to its share of plan assets; accordingly, PSCo accounts for its pro rata share of these plans, including pension expense and contributions, resulting in accounting consistent with that of a single employer plan exclusively for PSCo employees.

Xcel Energy, which includes PSCo, offers various benefit plans to its employees. Approximately 77 percent of employees that receive benefits are represented by several local labor unions under several collective-bargaining agreements. At Dec. 31, 2016, PSCo had 1,984 bargaining employees covered under a collective-bargaining agreement, which expires in May 2017.

The plans invest in various instruments which are disclosed under the accounting guidance for fair value measurements which establishes a hierarchical framework for disclosing the observability of the inputs utilized in measuring fair value. The three levels in the hierarchy and examples of each level are as follows:

Level 1 — Quoted prices are available in active markets for identical assets as of the reporting date. The types of assets included in Level 1 are highly liquid and actively traded instruments with quoted prices.

Level 2 — Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reporting date. The types of assets included in Level 2 are typically either comparable to actively traded securities or contracts, or priced with models using highly observable inputs.

Level 3 — Significant inputs to pricing have little or no observability as of the reporting date. The types of assets included in Level 3 are those with inputs requiring significant management judgment or estimation.

Specific valuation methods include the following:

Cash equivalents — The fair values of cash equivalents are generally based on cost plus accrued interest; money market funds are measured using quoted NAVs.

Insurance contracts — Insurance contract fair values take into consideration the value of the investments in separate accounts of the insurer, which are priced based on observable inputs.

Investments in commingled funds, equity securities and other funds — Equity securities are valued using quoted prices in active markets. The fair values for commingled funds are measured using NAVs, which take into consideration the value of underlying fund investments, as well as the other accrued assets and liabilities of a fund, in order to determine a per share market value. The investments in commingled funds may be redeemed for NAV with proper notice. Proper notice varies by fund and can range from daily with a few days’ notice to annually with 90 days’ notice. Private equity investments require approval of the fund for any unscheduled redemption, and such redemptions may be approved or denied by the fund at its sole discretion. Depending on the fund, unscheduled distributions from real estate investments may require approval of the fund or may be redeemed with proper notice, which is typically quarterly with 45-90 days’ notice; however, withdrawals from real estate investments may be delayed or discounted as a result of fund illiquidity.

Investments in debt securities — Fair values for debt securities are determined by a third party pricing service using recent trades and observable spreads from benchmark interest rates for similar securities.

Derivative Instruments — Fair values for foreign currency derivatives are determined using pricing models based on the prevailing forward exchange rate of the underlying currencies. The fair values of interest rate derivatives are based on broker quotes that utilize current market interest rate forecasts.

Pension Benefits

Xcel Energy, which includes PSCo, has several noncontributory, defined benefit pension plans that cover almost all employees. Generally, benefits are based on a combination of years of service, the employee’s average pay and, in some cases, social security benefits. Xcel Energy Inc.’s and PSCo’s policy is to fully fund into an external trust the actuarially determined pension costs recognized for ratemaking and financial reporting purposes, subject to the limitations of applicable employee benefit and tax laws.

In addition to the qualified pension plans, Xcel Energy maintains a supplemental executive retirement plan (SERP) and a nonqualified pension plan. The SERP is maintained for certain executives that were participants in the plan in 2008, when the SERP was closed to new participants. The nonqualified pension plan provides unfunded, nonqualified benefits for compensation that is in excess of the limits applicable to the qualified pension plans, with distributions attributable to PSCo funded by PSCo’s consolidated operating cash flows. The total obligations of the SERP and nonqualified plan as of Dec. 31, 2016 and 2015 were $43.5 million and $41.8 million, respectively, of which $3.8 million and $3.6 million were attributable to PSCo. In 2016 and 2015, Xcel Energy recognized net benefit cost for financial reporting for the SERP and nonqualified plans of $7.9 million and $9.5 million, respectively, of which $0.6 million in each year was attributable to PSCo.

In 2016, Xcel Energy established rabbi trusts to provide partial funding for future distributions of the SERP and its deferred compensation plan. Rabbi trust funding of deferred compensation plan distributions attributable to PSCo will be supplemented by PSCo’s consolidated operating cash flows as determined necessary. The amount of rabbi trust funding attributable to PSCo is immaterial. Also in 2016, Xcel Energy amended the deferred compensation plan to provide eligible participants the ability to diversify deferred settlements of equity awards, other than time-based equity awards, into various fund options.

Xcel Energy Inc. and PSCo base the investment-return assumption on expected long-term performance for each of the investment types included in the pension asset portfolio and consider the historical returns achieved by the asset portfolio over the past 20-year or longer period, as well as the long-term return levels projected and recommended by investment experts. Xcel Energy Inc. and PSCo continually review pension assumptions. The pension cost determination assumes a forecasted mix of investment types over the long term.


•	Investment returns in 2016 were below the assumed level of 6.84 percent;


•	Investment returns in 2015 were below the assumed level of 6.81 percent;


•	Investment returns in 2014 were above the assumed level of 6.81 percent; and


•	In 2017, PSCo’s expected investment-return assumption is 6.62 percent.

The assets are invested in a portfolio according to Xcel Energy Inc.’s and PSCo’s return, liquidity and diversification objectives to provide a source of funding for plan obligations and minimize the necessity of contributions to the plan, within appropriate levels of risk. The principal mechanism for achieving these objectives is the projected allocation of assets to selected asset classes, given the long-term risk, return, and liquidity characteristics of each particular asset class. There were no significant concentrations of risk in any particular industry, index, or entity. Market volatility can impact even well-diversified portfolios and significantly affect the return levels achieved by pension assets in any year.

The following table presents the target pension asset allocations for PSCo at Dec. 31 for the upcoming year:



	2016		2015
Domestic and international equity securities	36	%	36	%
Long-duration fixed income and interest rate swap securities	31		32
Short-to-intermediate fixed income securities	15		12
Alternative investments	16		18
Cash	2		2
Total	100	%	100	%

The ongoing investment strategy is based on plan-specific investment recommendations that seek to minimize potential investment and interest rate risk as a plan’s funded status increases over time. The investment recommendations result in a greater percentage of long-duration fixed income securities being allocated to specific plans having relatively higher funded status ratios and a greater percentage of growth assets being allocated to plans having relatively lower funded status ratios. The aggregate projected asset allocation presented in the table above for the master pension trust results from the plan-specific strategies.

Pension Plan Assets

The following tables present, for each of the fair value hierarchy levels, PSCo’s pension plan assets that are measured at fair value as of Dec. 31, 2016 and 2015:



	Dec. 31, 2016
(Thousands of Dollars)	Level 1		Level 2			Level 3		Investments Measured at NAV ^(a)		Total
Cash equivalents	$	34,957	$	—		$	—	$	—	$	34,957
Commingled funds:
U.S. equity funds	—		—			—		165,621		165,621
Non U.S. equity funds	—		—			—		122,197		122,197
U.S. corporate bond funds	—		—			—		96,995		96,995
Emerging market equity funds	—		—			—		64,784		64,784
Emerging market debt funds	—		—			—		53,703		53,703
Commodity funds	—		—			—		7,497		7,497
Private equity investments	—		—			—		31,828		31,828
Real estate	—		—			—		61,048		61,048
Other commingled funds	—		—			—		74,696		74,696
Debt securities:
Government securities	—		168,014			—		—		168,014
U.S. corporate bonds	—		86,081			—		—		86,081
Non U.S. corporate bonds	—		13,828			—		—		13,828
Mortgage-backed securities	—		2,179			—		—		2,179
Asset-backed securities	—		1,032			—		—		1,032
Equity securities:
U.S. equities	27,348		—			—		—		27,348
Other	—		(7,595		)	—		—		(7,595		)
Total	$	62,305	$	263,539		$	—	$	678,369	$	1,004,213


^(a)	Based on the requirements of ASU No. 2015-07, investments measured at fair value using a NAV methodology have not been classified in the fair value hierarchy. See Note 2 for further information on the adoption of ASU No. 2015-07.



	Dec. 31, 2015
(Thousands of Dollars)	Level 1		Level 2			Level 3		Investments Measured at NAV ^(a)		Total
Cash equivalents	$	81,954	$	—		$	—	$	—	$	81,954
Derivatives	—		1,204			—		—		1,204
Commingled funds:
U.S. equity funds	—		—			—		125,011		125,011
Non U.S. equity funds	—		—			—		119,394		119,394
U.S. corporate bond funds	—		—			—		82,827		82,827
Emerging market equity funds	—		—			—		56,525		56,525
Emerging market debt funds	—		—			—		54,362		54,362
Commodity funds	—		—			—		14,169		14,169
Private equity investments	—		—			—		34,353		34,353
Real estate	—		—			—		67,075		67,075
Other commingled funds	—		—			—		72,327		72,327
Debt securities:
Government securities	—		214,341			—		—		214,341
U.S. corporate bonds	—		74,787			—		—		74,787
Non U.S. corporate bonds	—		12,127			—		—		12,127
Asset-backed securities	—		881			—		—		881
Equity securities:
U.S. equities	28,797		—			—		—		28,797
Other	—		(3,453		)	—		—		(3,453		)
Total	$	110,751	$	299,887		$	—	$	626,043	$	1,036,681


^(a)	Based on the requirements of ASU No. 2015-07, investments measured at fair value using a NAV methodology have not been classified in the fair value hierarchy. See Note 2 for further information on the adoption of ASU No. 2015-07.

There were no assets transferred in or out of Level 3 for the years ended Dec. 31, 2016, 2015 or 2014.

Benefit Obligations — A comparison of the actuarially computed pension benefit obligation and plan assets for PSCo is presented in the following table:



(Thousands of Dollars)	2016			2015
Accumulated Benefit Obligation at Dec. 31	$	1,213,890		$	1,192,798

Change in Projected Benefit Obligation:
Obligation at Jan. 1	$	1,224,650		$	1,277,957
Service cost	25,926			28,260
Interest cost	55,405			50,857
Transfer to other plan	(9,149		)	(2,938		)
Plan amendments	206			—
Actuarial loss (gain)	51,779			(54,737		)
Benefit payments	(96,995		)	(74,749		)
Obligation at Dec. 31	$	1,251,822		$	1,224,650



(Thousands of Dollars)	2016			2015
Change in Fair Value of Plan Assets:
Fair value of plan assets at Jan. 1	$	1,036,681		$	1,103,865
Actual return (loss) on plan assets	56,762			(9,122		)
Employer contributions	16,829			20,056
Transfer to other plan	(9,064		)	(3,369		)
Benefit payments	(96,995		)	(74,749		)
Fair value of plan assets at Dec. 31	$	1,004,213		$	1,036,681



(Thousands of Dollars)	2016			2015
Funded Status of Plans at Dec. 31:
Funded status ^(a)	$	(247,609	)	$	(187,969	)


^(a)	Amounts are recognized in noncurrent liabilities on PSCo’s consolidated balance sheets.



(Thousands of Dollars)	2016			2015
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost:
Net loss	$	554,999		$	521,703
Prior service credit	(12,155		)	(15,572		)
Total	$	542,844		$	506,131



(Thousands of Dollars)	2016		2015
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost Have Been Recorded as Follows Based Upon Expected Recovery in Rates:
Current regulatory assets	$	515,708	$	28,852
Noncurrent regulatory assets	26,853		477,279
Deferred income taxes	108		—
Net-of-tax accumulated OCI	175		—
Total	$	542,844	$	506,131



Measurement date	Dec. 31, 2016	Dec. 31, 2015



	2016		2015
Significant Assumptions Used to Measure Benefit Obligations:
Discount rate for year-end valuation	4.13	%	4.66	%
Expected average long-term increase in compensation level	3.75		4.00
Mortality table	RP-2014		RP-2014

Mortality — In 2014, the Society of Actuaries published a new mortality table (RP-2014) and projection scale (MP-2014) that increased the overall life expectancy of males and females. On Dec. 31, 2014 PSCo adopted the RP-2014 table, with modifications, based on its population and specific experience and a modified MP-2014 projection scale. During 2016, a new projection table was released (MP-2016). In 2016, PSCo adopted a modified version of the MP-2016 table and will continue to utilize the RP-2014 base table, modified for company experience.

Cash Flows — Cash funding requirements can be impacted by changes to actuarial assumptions, actual asset levels and other calculations prescribed by the funding requirements of income tax and other pension-related regulations. Required contributions were made in 2014 through 2017 to meet minimum funding requirements.

Total voluntary and required pension funding contributions across all four of Xcel Energy’s pension plans were as follows:


•	$150.0 million in January 2017, of which $16.8 million was attributable to PSCo;


•	$125.2 million in 2016, of which $16.8 million was attributable to PSCo;


•	$90.1 million in 2015, of which $20.1 million was attributable to PSCo; and


•	$130.6 million in 2014, of which $35.2 million was attributable to PSCo.

For future years, Xcel Energy and PSCo anticipate contributions will be made as necessary.

Plan Amendments — The 2016 increase in the projected benefit obligation resulted from an increase in the annual credits contributed to the PSCo Bargaining Plan retirement spending account. In 2015, there were no plan amendments made which affected the projected benefit obligation.

Benefit Costs — The components of PSCo’s net periodic pension cost were:



(Thousands of Dollars)	2016			2015			2014
Service cost	$	25,926		$	28,260		$	23,939
Interest cost	55,405			50,857			53,277
Expected return on plan assets	(70,769		)	(72,590		)	(70,709		)
Amortization of prior service credit	(3,211		)	(3,136		)	(3,092		)
Amortization of net loss	26,771			36,377			33,892
Net periodic pension cost	34,122			39,768			37,307
Credits (costs) not recognized due to effects of regulation	3,364			(1,464		)	—
Net benefit cost recognized for financial reporting	$	37,486		$	38,304		$	37,307



	2016		2015		2014
Significant Assumptions Used to Measure Costs:
Discount rate	4.66	%	4.11	%	4.75	%
Expected average long-term increase in compensation level	4.00		3.75		3.75
Expected average long-term rate of return on assets	6.84		6.81		6.81

In addition to the benefit costs in the table above, for the pension plans sponsored by Xcel Energy Inc., costs are allocated to PSCo based on Xcel Energy Services Inc. employees’ labor costs. Amounts allocated to PSCo were $9.4 million, $9.9 million and $9.4 million in 2016, 2015 and 2014, respectively. Pension costs include an expected return impact for the current year that may differ from actual investment performance in the plan. The return assumption used for 2017 pension cost calculations is 6.62 percent. The cost calculation uses a market-related valuation of pension assets. Xcel Energy, including PSCo, uses a calculated value method to determine the market-related value of the plan assets. The market-related value begins with the fair market value of assets as of the beginning of the year. The market-related value is determined by adjusting the fair market value of assets to reflect the investment gains and losses (the difference between the actual investment return and the expected investment return on the market-related value) during each of the previous five years at the rate of 20 percent per year. As these differences between actual investment returns and the expected investment returns are incorporated into the market-related value, the differences are recognized over the expected average remaining years of service for active employees.

Defined Contribution Plans

Xcel Energy, which includes PSCo, maintains 401(k) and other defined contribution plans that cover substantially all employees. The expense to these plans for PSCo was approximately $9.9 million in 2016, $9.5 million in 2015 and $9.1 million in 2014.

Postretirement Health Care Benefits

Xcel Energy, which includes PSCo, has a contributory health and welfare benefit plan that provides health care and death benefits to certain retirees. Xcel Energy discontinued contributing toward health care benefits for PSCo nonbargaining employees retiring after June 30, 2003. Employees of NCE who retired in 2002 continue to receive employer-subsidized health care benefits. Nonbargaining employees of the former NCE who retired after 1998, bargaining employees of the former NCE who retired after 1999 and nonbargaining employees of NCE who retired after June 30, 2003, are eligible to participate in the Xcel Energy health care program with no employer subsidy.

Plan Assets — Certain state agencies that regulate Xcel Energy Inc.’s utility subsidiaries also have issued guidelines related to the funding of postretirement benefit costs. PSCo is required to fund postretirement benefit costs in irrevocable external trusts that are dedicated to the payment of these postretirement benefits. These assets are invested in a manner consistent with the investment strategy for the pension plan.

The following table presents the target postretirement asset allocations for Xcel Energy Inc. and PSCo at Dec. 31 for the upcoming year:



	2016		2015
Domestic and international equity securities	25	%	25	%
Short-to-intermediate fixed income securities	57		57
Alternative investments	13		13
Cash	5		5
Total	100	%	100	%

Xcel Energy Inc. and PSCo base the investment-return assumptions for the postretirement health care fund assets on expected long-term performance for each of the investment types included in the asset portfolio. Assumptions and target allocations are determined at the master trust level. The investment mix at each of Xcel Energy Inc.’s utility subsidiaries may vary from the investment mix of the total asset portfolio. The assets are invested in a portfolio according to Xcel Energy Inc.’s and PSCo’s return, liquidity and diversification objectives to provide a source of funding for plan obligations and minimize the necessity of contributions to the plan, within appropriate levels of risk. The principal mechanism for achieving these objectives is the projected allocation of assets to selected asset classes, given the long-term risk, return, correlation and liquidity characteristics of each particular asset class. There were no significant concentrations of risk in any particular industry, index, or entity. Market volatility can impact even well-diversified portfolios and significantly affect the return levels achieved by postretirement health care assets in any year.

The following tables present, for each of the fair value hierarchy levels, PSCo’s proportionate allocation of the total postretirement benefit plan assets that are measured at fair value as of Dec. 31, 2016 and 2015:



	Dec. 31, 2016
(Thousands of Dollars)	Level 1		Level 2		Level 3		Investments Measured at NAV ^(a)		Total
Cash equivalents	$	18,288	$	—	$	—	$	—	$	18,288
Insurance contracts	—		42,046		—		—		42,046
Commingled funds:
U.S. equity funds	—		—		—		48,462		48,462
U.S fixed income funds	—		—		—		24,132		24,132
Emerging market debt funds	—		—		—		27,089		27,089
Other commingled funds	—		—		—		48,922		48,922
Debt securities:
Government securities	—		33,600		—		—		33,600
U.S. corporate bonds	—		55,473		—		—		55,473
Non U.S. corporate bonds	—		15,384		—		—		15,384
Asset-backed securities	—		16,845		—		—		16,845
Mortgage-backed securities	—		25,563		—		—		25,563
Equity securities:
Non U.S. equities	36,462		—		—		—		36,462
Other	—		1,289		—		—		1,289
Total	$	54,750	$	190,200	$	—	$	148,605	$	393,555


^(a)	Based on the requirements of ASU No. 2015-07, investments measured at fair value using a NAV methodology have not been classified in the fair value hierarchy. See Note 2 for further information on the adoption of ASU No. 2015-07.



	Dec. 31, 2015
(Thousands of Dollars)	Level 1		Level 2			Level 3		Investments Measured at NAV ^(a)		Total
Cash equivalents	$	17,524	$	—		$	—	$	—	$	17,524
Insurance contracts	—		42,123			—		—		42,123
Commingled funds:
U.S. equity funds	—		—			—		34,089		34,089
Non U.S. equity funds	—		—			—		29,979		29,979
U.S fixed income funds	—		—			—		21,638		21,638
Emerging market equity funds	—		—			—		9,901		9,901
Emerging market debt funds	—		—			—		31,827		31,827
Other commingled funds	—		—			—		55,302		55,302
Debt securities:
Government securities	—		35,016			—		—		35,016
U.S. corporate bonds	—		53,433			—		—		53,433
Non U.S. corporate bonds	—		11,598			—		—		11,598
Asset-backed securities	—		25,602			—		—		25,602
Mortgage-backed securities	—		31,778			—		—		31,778
Other	—		(368		)	—		—		(368		)
Total	$	17,524	$	199,182		$	—	$	182,736	$	399,442


^(a)	Based on the requirements of ASU No. 2015-07, investments measured at fair value using a NAV methodology have not been classified in the fair value hierarchy. See Note 2 for further information on the adoption of ASU No. 2015-07.

There were no assets transferred in or out of Level 3 for the years ended Dec. 31, 2016, 2015 or 2014.

Benefit Obligations — A comparison of the actuarially computed benefit obligation and plan assets for PSCo is presented in the following table:



(Thousands of Dollars)	2016			2015
Change in Projected Benefit Obligation:
Obligation at Jan. 1	$	403,574		$	443,753
Service cost	768			928
Interest cost	18,070			17,498
Medicare subsidy reimbursements	1,901			1,712
Plan participants’ contributions	5,376			4,961
Actuarial loss (gain)	27,355			(32,001		)
Benefit payments	(35,221		)	(33,277		)
Obligation at Dec. 31	$	421,823		$	403,574



(Thousands of Dollars)	2016			2015
Change in Fair Value of Plan Assets:
Fair value of plan assets at Jan. 1	$	399,442		$	425,282
Actual return (loss) on plan assets	18,590			(3,076		)
Plan participants’ contributions	5,376			4,961
Employer contributions	5,368			5,552
Benefit payments	(35,221		)	(33,277		)
Fair value of plan assets at Dec. 31	$	393,555		$	399,442



(Thousands of Dollars)	2016			2015
Funded Status at Dec. 31:
Funded status ^(a)	$	(28,268	)	$	(4,132	)


^(a)	Amounts are recognized in noncurrent liabilities on PSCo’s consolidated balance sheets.



(Thousands of Dollars)	2016			2015
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost:
Net loss	$	78,359		$	49,226
Prior service credit	(27,695		)	(33,942		)
Total	$	50,664		$	15,284



(Thousands of Dollars)	2016		2015
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost Have Been Recorded as Follows Based Upon Expected Recovery in Rates:
Noncurrent regulatory assets	$	50,664	$	15,284



Measurement date	Dec. 31, 2016	Dec. 31, 2015



	2016		2015
Significant Assumptions Used to Measure Benefit Obligations:
Discount rate for year-end valuation	4.13	%	4.65	%
Mortality table	RP 2014		RP 2014
Health care costs trend rate — initial	5.50	%	6.00	%

Effective Jan. 1, 2017, the initial medical trend rate was decreased from 6.0 percent to 5.5 percent. The ultimate trend assumption remained at 4.5 percent. The period until the ultimate rate is reached is two years. Xcel Energy Inc. and PSCo base the medical trend assumption on the long-term cost inflation expected in the health care market, considering the levels projected and recommended by industry experts, as well as recent actual medical cost increases experienced by the retiree medical plan.

A one-percent change in the assumed health care cost trend rate would have the following effects on PSCo:



	One-Percentage Point
(Thousands of Dollars)	Increase		Decrease
APBO	$	40,100	$	(34,155	)
Service and interest components	1,980		(1,677		)

Cash Flows — The postretirement health care plans have no funding requirements under income tax and other retirement-related regulations other than fulfilling benefit payment obligations, when claims are presented and approved under the plans. Additional cash funding requirements are prescribed by certain state and federal rate regulatory authorities. Xcel Energy, which includes PSCo, contributed $17.9 million, $18.3 million and $17.1 million during 2016, 2015 and 2014, respectively, of which $5.4 million, $5.6 million and $5.5 million were attributable to PSCo. Xcel Energy expects to contribute approximately $11.8 million during 2017, of which amounts attributable to PSCo will be zero.

Plan Amendments — In 2016 and 2015 there were no plan amendments made which affected the projected benefit obligation.

Benefit Costs — The components of PSCo’s net periodic postretirement benefit costs were:



(Thousands of Dollars)	2016			2015			2014
Service cost	$	768		$	928		$	1,915
Interest cost	18,070			17,498			23,704
Expected return on plan assets	(22,299		)	(23,803		)	(30,214		)
Amortization of prior service credit	(6,247		)	(6,247		)	(6,247		)
Amortization of net loss	1,931			2,475			6,434
Net periodic postretirement benefit credit	$	(7,777	)	$	(9,149	)	$	(4,408	)



	2016		2015		2014
Significant Assumptions Used to Measure Costs:
Discount rate	4.65	%	4.08	%	4.82	%
Expected average long-term rate of return on assets	5.80		5.80		7.18

In addition to the benefit costs in the table above, for the postretirement health care plans sponsored by Xcel Energy Inc., costs are allocated to PSCo based on Xcel Energy Services Inc. employees’ labor costs.

Projected Benefit Payments

The following table lists PSCo’s projected benefit payments for the pension and postretirement benefit plans:



(Thousands of Dollars)	Projected Pension Benefit Payments		Gross Projected Postretirement Health Care Benefit Payments		Expected Medicare Part D Subsidies		Net Projected Postretirement Health Care Benefit Payments
2017	$	79,506	$	33,912	$	2,140	$	31,772
2018	78,738		33,652		2,266		31,386
2019	80,914		33,467		2,383		31,084
2020	81,095		33,991		2,475		31,516
2021	82,084		33,588		2,574		31,014
2022-2026	417,876		156,773		14,246		142,527