EMPLOYEE BENEFIT PLANS

3 Months Ended

Mar. 31, 2013

Pension and Other Postretirement Benefit Plans

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS

Pension and Other Postretirement Benefit Plans

Components of net periodic benefit cost recorded by the Company were as follows: 

	Pension Benefits						Other Postretirement Benefits
Millions of dollars	2013			2012			2013		2012
Three months ended March 31,
Service cost	$	5.9		$	4.8		$	1.6	$	1.3
Interest cost	9.5			10.7			2.8		3.0
Expected return on assets	(15.4		)	(14.8		)	—		—
Prior service cost amortization	1.7			1.7			0.2		0.2
Transition obligation amortization	—			—			0.2		0.2
Amortization of actuarial losses	5.4			4.7			0.8		0.2
Net periodic benefit cost	$	7.1		$	7.1		$	5.6	$	4.9

No contribution to the pension trust will be necessary until after 2014, nor will limitations on benefit payments apply.   In connection with the SCPSC's December 2012 rate order, effective January 1, 2013 SCE&G began recovering pension expense related to retail electric operations through a rate rider that is adjusted annually. As authorized by the SCPSC, prior to January 1, 2013 SCE&G deferred all pension expense related to retail electric operations as a regulatory asset, and has deferred such costs related to gas operations during both periods presented. Costs totaling $0.6 million and $3.7 million were deferred for the three months ended March 31, 2013 and 2012, respectively. Previously deferred costs related to electric operations are being recovered as described in Note 2.

SCEG

Pension and Other Postretirement Benefit Plans

EMPLOYEE BENEFIT PLANS

Pension and Other Postretirement Benefit Plans

Consolidated SCE&G participates in SCANA’s noncontributory defined benefit pension plan, which covers substantially all regular, full-time employees, and also participates in SCANA’s unfunded postretirement health care and life insurance programs, which provide benefits to active and retired employees.  Components of net periodic benefit cost recorded by Consolidated SCE&G were as follows:

	Pension Benefits						Other Postretirement Benefits
Millions of dollars	2013			2012			2013		2012
Three months ended March 31,
Service cost	$	4.8		$	3.9		$	1.2	$	1.0
Interest cost	8.0			9.1			2.2		2.4
Expected return on assets	(13.0		)	(12.6		)	—		—
Prior service cost amortization	1.4			1.4			0.2		0.2
Amortization of actuarial losses	4.6			4.0			0.6		0.1
Net periodic benefit cost	$	5.8		$	5.8		$	4.2	$	3.7

No contribution to the pension trust will be necessary until after 2014, nor will limitations on benefit payments apply.  In connection with the SCPSC's December 2012 rate order, effective January 1, 2013 SCE&G began recovering pension expense related to retail electric operations through a rate rider that is adjusted annually. As authorized by the SCPSC, prior to January 1, 2013 SCE&G deferred all pension expense related to retail electric operations as a regulatory asset, and has deferred such costs related to gas operations during both periods presented. Costs totaling $0.6 million and $3.7 million were deferred for the three months ended March 31, 2013 and 2012, respectively. Previously deferred cost related to electric operations are being recovered as described in Note 2.