EMPLOYEE BENEFIT PLANS

6 Months Ended

Jun. 30, 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 June 30,
Service cost	$	5.9		$	4.9		$	1.6	$	1.2
Interest cost	9.4			10.6			2.7		3.0
Expected return on assets	(15.3		)	(14.8		)	—		—
Prior service cost amortization	1.7			1.8			0.2		0.3
Transition obligation amortization	—			—			0.1		0.1
Amortization of actuarial losses	5.5			4.6			0.9		0.2
Net periodic benefit cost	$	7.2		$	7.1		$	5.5	$	4.8

Six months ended June 30,
Service cost	$	11.8		$	9.7		$	3.2	$	2.5
Interest cost	18.9			21.3			5.5		6.0
Expected return on assets	(30.7		)	(29.6		)	—		—
Prior service cost amortization	3.4			3.5			0.4		0.5
Transition obligation amortization	—			—			0.3		0.3
Amortization of actuarial losses	10.9			9.3			1.7		0.4
Net periodic benefit cost	$	14.3		$	14.2		$	11.1	$	9.7

No contribution to the pension trust will be necessary until after 2014, nor will limitations on benefit payments apply. As authorized by the SCPSC, prior to January 1, 2013 SCE&G deferred all pension expense related to retail electric and gas operations as a regulatory asset. 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. SCE&G continues to defer such costs related to gas operations. Costs totaling $0.6 million and $1.2 million related to gas operations were deferred for the three and six months ended June 30, 2013, respectively. Costs totaling $3.7 million and $7.4 million related to electric and gas operations were deferred for the corresponding periods in 2012. 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 June 30,
Service cost	$	4.8		$	3.8		$	1.3	$	1.0
Interest cost	8.0			9.1			2.2		2.3
Expected return on assets	(13.0		)	(12.6		)	—		—
Prior service cost amortization	1.4			1.5			0.1		0.2
Amortization of actuarial losses	4.6			4.0			0.7		0.1
Net periodic benefit cost	$	5.8		$	5.8		$	4.3	$	3.6

	Pension Benefits						Other Postretirement Benefits
Millions of dollars	2013			2012			2013		2012
Six months ended June 30,
Service cost	$	9.6		$	7.7		$	2.5	$	2.0
Interest cost	16.0			18.2			4.4		4.7
Expected return on assets	(26.0		)	(25.2		)	—		—
Prior service cost amortization	2.8			2.9			0.3		0.4
Amortization of actuarial losses	9.2			8.0			1.3		0.2
Net periodic benefit cost	$	11.6		$	11.6		$	8.5	$	7.3

No contribution to the pension trust will be necessary until after 2014, nor will limitations on benefit payments apply. As authorized by the SCPSC, prior to January 1, 2013 SCE&G deferred all pension expense related to retail electric and gas operations as a regulatory asset. 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. SCE&G continues to defer such costs related to gas operations. Costs totaling $0.6 million and $1.2 million related to gas operations were deferred for the three and six months ended June 30, 2013, respectively. Costs totaling $3.7 million and $7.4 million related to electric and gas operations were deferred for the corresponding periods in 2012. Previously deferred cost related to electric operations are being recovered as described in Note 2.