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
(Thousands of Dollars)		Pension Benefits						Postretirement Health Care  Benefits
Service cost	$	5,679		$	4,432		$	706		$	906
Interest cost		12,776			13,059			6,131			7,097
Expected return on plan assets		(16,326	)		(16,988	)		(6,264	)		(6,990	)
Amortization of transition obligation		-			-			2,751			2,751
Amortization of prior service cost (credit)		57			56			(1,288	)		(728	)
Amortization of net loss		8,552			7,032			2,734			2,236
Net periodic benefit cost		10,738			7,591			4,770			5,272
Additional cost recognized due to the effects of regulation		-			-			972			972
Net benefit cost recognized for financial reporting	$	10,738		$	7,591		$	5,742		$	6,244

	Nine Months Ended Sept. 30
	2012			2011			2012			2011
(Thousands of Dollars)	Pension Benefits						Postretirement Health Care  Benefits
Service cost	$	17,039		$	13,295		$	2,119		$	2,719
Interest cost		38,329			39,176			18,395			21,293
Expected return on plan assets		(48,977	)		(50,961	)		(18,792	)		(20,971	)
Amortization of transition obligation		-			-			8,253			8,253
Amortization of prior service cost (credit)		171			167			(3,863	)		(2,185	)
Amortization of net loss		25,652			21,095			8,198			6,707
Net periodic benefit cost		32,214			22,772			14,310			15,816
Additional cost recognized due to the effects of regulation		-			-			2,918			2,918
Net benefit cost recognized for financial reporting	$	32,214		$	22,772		$	17,228		$	18,734

In January 2012, contributions of $190.5 million were made across four of Xcel Energy's pension plans, of which $41.0 million was attributable to PSCo.  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 PSCo's results of operations, cash flows, or financial position.  These arrangements will expire in December 2012.