Pension and Postretirement Benefits

6 Months Ended

Jun. 30, 2011

Pension and Postretirement Benefits

We show the components of net periodic pension benefit cost in the following table:

	Quarter Ended June 30,						Six Months Ended June 30,

	2011			2010			2011			2010

	(In millions)
Components of net periodic pension benefit cost
Service cost	$	15.0		$	9.1		$	26.4		$	18.6
Interest cost		24.6			19.7			47.2			41.4
Expected return on plan assets		(32.3	)		(23.2	)		(62.3	)		(49.9	)
Recognized net actuarial loss		11.9			8.7			24.1			16.8
Amortization of prior service cost		1.1			0.9			2.1			1.9
Amount capitalized as construction cost		(3.2	)		(2.9	)		(6.1	)		(4.8	)

Net periodic pension benefit cost¹	$	17.1		$	12.3		$	31.4		$	24.0

1 BGE's portion of our net periodic pension benefit cost, excluding amounts capitalized, was $9.0 million for the quarter ended June 30, 2011 and $8.5 million for the quarter ended June 30, 2010. BGE's portion of our net periodic pension benefit cost, excluding amounts capitalized, was $18.1 million for the six months ended June 30, 2011 and $14.8 million for the six months ended June 30, 2010. Net periodic pension benefit costs exclude settlement charges of $1.5 million in the quarter and six months ended June 30, 2010.

We show the components of net periodic postretirement benefit cost in the following table:

	Quarter Ended June 30,						Six Months Ended June 30,

	2011			2010			2011			2010

	(In millions)
Components of net periodic postretirement benefit cost
Service cost	$	0.8		$	0.6		$	1.5		$	1.3
Interest cost		5.1			5.0			9.3			9.7
Amortization of transition obligation		0.5			0.6			1.0			1.1
Recognized net actuarial loss (gain)		0.2			(0.1	)		0.8			0.2
Amortization of prior service cost		(0.9	)		(0.7	)		(1.5	)		(1.4	)
Amount capitalized as construction cost		(1.7	)		(1.6	)		(3.1	)		(2.9	)

Net periodic postretirement benefit cost¹	$	4.0		$	3.8		$	8.0		$	8.0

1 BGE's portion of our net periodic postretirement benefit cost, excluding amounts capitalized, was $4.9 million for the quarter ended June 30, 2011 and $4.6 million for the quarter ended June 30, 2010. BGE's portion of our net periodic postretirement benefit costs, excluding amounts capitalized, was $9.5 million for the six months ended June 30, 2011 and $9.4 million for the six months ended June 30, 2010.

Our non-qualified pension plans and our postretirement benefit programs are not funded; however, we have trust assets securing certain executive pension benefits. We estimate that we will incur approximately $9.4 million in pension benefit payments for our non-qualified pension plans and approximately $22.6 million for retiree health and life insurance costs in 2011.

- Definition

This element may be used to capture the entire disclosure for an employer that sponsors one or more defined benefit pension plans or one or more other defined benefit postretirement plans, of certain information, separately for pension plans and other postretirement benefit plans including the entity's schedule of fair value of plan assets for defined benefit or other postretirement plans. Also includes description containing the entire postemployment benefits disclosure which may include supplemental unemployment benefits, obligations recognized for all types of benefits provided to former or inactive employees, their beneficiaries, and covered dependents after employment but before retirement. Disclosure may also include discussion that an obligation for postemployment benefits is not accrued in accordance with regulation only because the amount cannot be reasonably estimated. Also includes description of the terms and benefits provided by the employer's defined contribution plans. A defined contribution plan provides benefits in return for services rendered, provides an individual account for each participant, and has terms that specify how contributions to the individual's account are to be determined rather than the amount of benefits the individual is to receive.

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