Benefit Plans and Other Postretirement Benefits

3 Months Ended

Mar. 31, 2012

Benefit Plans and Other Postretirement Benefits [Abstract]

Benefit Plans and Other Postretirement Benefits

10.   Benefit Plans and Other Postretirement Benefits

 

SPS calculates base pension expense in accordance with accounting guidance for retirement benefits.  In 2011, the Texas retail electric jurisdiction began to allow the deferral of allocated pension costs to the extent that those costs exceed test year pension expenses included in rates, within prescribed limits.  Differences between regulatory-based pension expense for the Texas retail electric jurisdiction and expense as calculated under applicable accounting guidance are deferred as a regulatory asset or liability.

Components of Net Periodic Benefit Cost

	Three Months Ended March 31
	2012			2011			2012			2011
							Postretirement Health
(Thousands of Dollars)	Pension Benefits						Care Benefits
Service cost	$	2,133		$	1,949		$	328		$	292
Interest cost		4,880			4,931			671			677
Expected return on plan assets		(6,247	)		(6,599	)		(677	)		(749	)
Amortization of transition obligation		-			-			386			417
Amortization of prior service cost (credit)		360			376			(37	)		(13	)
Amortization of net loss		3,142			1,947			283			212
Net periodic benefit cost		4,268			2,604			954			836
Costs not recognized due to the effects of regulation		(1,075	)		(575	)		-			-
Net benefit cost recognized for financial reporting	$	3,193		$	2,029		$	954		$	836

In January 2012, contributions of $190.5 million were made across four of Xcel Energy's pension plans, of which $12.9 million was attributable to SPS.  Xcel Energy does not expect additional pension contributions during 2012.