RETIREMENT PLAN AND POST-RETIREMENT BENEFITS

9 Months Ended

Sep. 30, 2011

RETIREMENT PLAN AND POST-RETIREMENT BENEFITS [Abstract]

RETIREMENT PLAN AND POST-RETIREMENT BENEFITS

NOTE 7.                      RETIREMENT PLAN AND POST-RETIREMENT BENEFITS

NVE has a single employer defined benefit pension plan covering substantially all employees of NVE and the Utilities.  NVE allocates the unfunded liability and the net periodic benefit costs for its pension benefit and other postretirement benefit plans to NPC and SPPC based upon the current, or in the case of the retirees, previous employment location.  Certain grandfathered and union employees are covered under a benefit formula based on years of service and the employee's highest compensation for a period prior to retirement, while most employees are covered under a cash balance formula with vesting after three years of service. NVE also has other postretirement plans, including a defined contribution plan which provides medical and life insurance benefits for certain retired employees.   A summary of the components of net periodic pension and other postretirement costs for the three and nine months ended September 30 follows.  This summary is based on a December 31, measurement date (dollars in thousands):

NVE
	Pension Benefits								Other Postretirement Benefits
		For the Three Months Ended September 30,							For the Three Months Ended September 30,
		2011			2010				2011			2010
Service cost		$	4,607		$	4,727			$	653		$	617
Interest cost			10,169			10,718				2,090			2,184
Expected return on plan assets			(12,192	)		(11,069	)			(1,596	)		(1,556	)
Amortization of prior service cost			(738	)		(448	)			(987	)		(972	)
Amortization of net loss			4,155			3,777				1,083			1,085
Net periodic benefit cost		$	6,001		$	7,705			$	1,243		$	1,358
	Pension Benefits							Other Postretirement Benefits
		For the Nine Months Ended September 30,							For the Nine Months Ended September 30,
			2011			2010				2011			2010
Service cost		$	13,820		$	14,182			$	1,958		$	1,850
Interest cost			30,507			32,154				6,270			6,551
Expected return on plan assets			(36,575	)		(33,206	)			(4,789	)		(4,667	)
Amortization of prior service cost			(2,214	)		(1,345	)			(2,961	)		(2,917	)
Amortization of net loss			12,465			11,329				3,250			3,256
Net periodic benefit cost		$	18,003		$	23,114			$	3,728		$	4,073
The average percentage of NVE net periodic costs capitalized during 2011 and 2010 was 33.26% and 33.85%, respectively.

NPC
	Pension Benefits							Other Postretirement Benefits
		For the Three Months Ended September 30,							For the Three Months Ended September 30,
		2011			2010				2011			2010
Service cost		$	2,445		$	2,392			$	363		$	353
Interest cost			4,880			5,023				615			619
Expected return on plan assets			(6,169	)		(5,362	)			(590	)		(567	)
Amortization of prior service cost			(470	)		(433	)			229			236
Amortization of net loss			1,690			1,764				302			300
Net periodic benefit cost		$	2,376		$	3,384			$	919		$	941
	Pension Benefits							Other Postretirement Benefits
		For the Nine Months Ended September 30,							For the Nine Months Ended September 30,
			2011			2010				2011			2010
Service cost		$	7,336		$	7,175			$	1,090		$	1,060
Interest cost			14,640			15,069				1,844			1,856
Expected return on plan assets			(18,508	)		(16,085	)			(1,769	)		(1,702	)
Amortization of prior service cost			(1,409	)		(1,300	)			687			709
Amortization of net loss			5,069			5,292				906			899
Net periodic benefit cost		$	7,128		$	10,151			$	2,758		$	2,822
The average percentage of NPC net periodic costs capitalized during 2011 and 2010 was 37.18% and 36.34% respectively.

SPPC
	Pension Benefits				Other Postretirement Benefits
	For the Three Months Ended September 30,				For the Three Months Ended September 30,
	2011		2010		2011		2010
Service cost	$	1,840	$	2,004	$	271	$	245
Interest cost		5,013		5,389		1,457		1,547
Expected return on plan assets		(5,741)		(5,431)		(976)		(961)
Amortization of prior service cost		(277)		(26)		(1,219)		(1,213)
Amortization of net loss		2,412		1,969		773		777
Net periodic benefit cost	$	3,247	$	3,905	$	306	$	395
	Pension Benefits				Other Postretirement Benefits
	For the Nine Months Ended September 30,				For the Nine Months Ended September 30,
	2011		2010		2011		2010
Service cost	$	5,520	$	6,012	$	815	$	733
Interest cost		15,038		16,167		4,372		4,640
Expected return on plan assets		(17,223)		(16,292)		(2,929)		(2,883)
Amortization of prior service cost		(831)		(78)		(3,658)		(3,638)
Amortization of net loss		7,235		5,907		2,319		2,332
Net periodic benefit cost	$	9,739	$	11,716	$	919	$	1,184
The average percentage of SPPC net periodic costs capitalized during 2011 and 2010 was 31.22% and 34.57% respectively.

During the nine months ended September 30, 2011, the company made contributions totaling $10.0 million to the pension plan and no contributions to the other postretirement benefits plan.  At the present time, it is not anticipated that additional funding will be required for either plan in 2011 in order to meet the minimum funding level requirements defined by the Pension Protection Act of 2006.  However, NVE and the Utilities have included in their 2011 assumptions funding levels similar to the 2010 funding.  The amounts to be contributed in 2011 may change subject to market conditions.