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92
The components of net periodic benefit expense, for which the total expense less capitalized amounts is included in Operations and
Maintenance on the statements of income, the portion of pension amounts capitalized related to employees working on capital projects,
which is included in Property, Plant and Equipment, Net on the balance sheets, and intercompany allocations not included in the net
periodic benefit expense amounts for the Pension and SERP Plans are as follows:
Pension and SERP
For the Year Ended December 31, 2013
NSTAR
(Millions of Dollars)
NU
CL&P
Electric (2)
PSNH
WMECO
Service Cost
$
102.3
$
24.9
$
33.1
$
13.1
$
4.7
Interest Cost
206.7
48.3
58.0
23.6
10.0
Expected Return on Plan Assets
(278.1)
(73.8)
(84.4)
(35.4)
(17.4)
Actuarial Loss
210.5
55.9
58.1
21.6
11.8
Prior Service Cost/(Credit)
4.0
1.8
(0.3)
0.7
0.4
Total Net Periodic Benefit Expense
$
245.4
$
57.1
$
64.5
$
23.6
$
9.5
Related Intercompany Allocations
N/A
$
44.9
$
(8.4)
$
10.5
$
8.0
Capitalized Pension Expense
$
73.2
$
28.0
$
28.9
$
7.3
$
5.2
Pension and SERP
For the Year Ended December 31, 2012 (1)
NSTAR
(Millions of Dollars)
NU
CL&P
Electric (2)
PSNH
WMECO
Service Cost
$
84.3
$
21.8
$
30.3
$
11.8
$
4.1
Interest Cost
198.3
51.2
58.9
24.4
10.5
Expected Return on Plan Assets
(220.9)
(70.6)
(65.6)
(28.2)
(16.4)
Actuarial Loss
172.4
49.6
63.1
16.2
10.7
Prior Service Cost/(Credit)
7.9
3.6
(0.6)
1.5
0.8
Total Net Periodic Benefit Expense
$
242.0
$
55.6
$
86.1
$
25.7
$
9.7
Curtailments and Settlements
$
2.2
$
-
$
-
$
-
$
-
Related Intercompany Allocations
N/A
$
42.8
$
(12.3)
$
10.1
$
8.1
Capitalized Pension Expense
$
70.6
$
26.8
$
30.7
$
7.9
$
5.1
Pension and SERP
For the Year Ended December 31, 2011
NSTAR
(Millions of Dollars)
NU
CL&P
Electric (2)
PSNH
WMECO
Service Cost
$
55.4
$
19.5
$
26.0
$
10.6
$
3.9
Interest Cost
153.3
51.9
61.0
24.4
10.7
Expected Return on Plan Assets
(170.8)
(76.6)
(71.4)
(19.8)
(17.7)
Actuarial Loss
84.2
33.4
48.6
10.7
7.1
Prior Service Cost/(Credit)
9.7
4.2
(0.7)
1.8
0.9
Total Net Periodic Benefit Expense
$
131.8
$
32.4
$
63.5
$
27.7
$
4.9
Related Intercompany Allocations
N/A
$
34.1
$
(10.2)
$
7.6
$
6.2
Capitalized Pension Expense
$
29.7
$
16.6
$
19.8
$
7.6
$
2.7
(1)
NSTAR Electric amounts were included in NU beginning April 10, 2012.
(2)
NSTAR Electric's allocated expense associated with the NSTAR SERP was $3.2 million, $3.6 million and $4.4 million for the years
ended December 31, 2013, 2012 and 2011, respectively, and are not included in the NSTAR Electric amou
nts in the tables above.
The following actuarial assumptions were used to calculate Pension and SERP expense amounts:
Pension and SERP
For the Years Ended December 31,
NUSCO Pension and SERP Plans
2013
2012
2011
Discount Rate
4.24
%
5.03
%
5.57
%
Expected Long-Term Rate of Return
8.25
%
8.25
%
8.25
%
Compensation/Progression Rate
3.50
%
3.50
%
3.50
%
NSTAR Pension and SERP Plans
Discount Rate
4.13
%
4.52
%
5.30
%
Expected Long-Term Rate of Return
8.25
%
7.30
%
8.00
%
Compensation/Progression Rate
4.00
%
4.00
%
4.00
%