National Grid 2008 Annual Report Download - page 326

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 13779
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 120
Description: EXH 2(B).6.1
0/3724.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/724/3*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 13779
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-2.B.6.1, Doc: 6, Page: 120 Description: EXH 2(B).6.1
0/3724.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/724/3*
The estimated net actuarial loss and prior service cost for the PBOP plans that will be amortized from AOCI and re
g
ulatory
assets into net periodic benefit cost during fiscal year 2008 are $49 million and $13 million, respectively.
As a result of the Medicare Act of 2003, the Company receives a federal subsidy for sponsorin
g
a retiree healthcare plan that
provides a benefit that is actuarially equivalent to Medicare Part D.
The followin
g
benefit payments and subsidies under Medicare Part D, which reflect future services, as appropriate, are
expected to be:
F-35
2007 2006
(In thousands
)
Actual return on
p
lan assets 100,881 113,920
Company contributions 53,230 53,700
Benefits
p
aid
(
110,606
)
(
101,604
)
Acquisition of Rhode Island gas PBOP assets
*
13,021 —
Fair value of plan assets at end of period 1,044,715 988,189
Funded status (1,171,311) (1,136,578)
Unrecognized actuarial loss — 583,073
Unreco
g
nized
p
rior service cost — 119,775
Net amount accrued cost $
(
1,171,311
)
$
(
433,730
)
Note:
* On Au
g
ust 24, 2006, the Company acquired the Rhode Island
g
as distribution assets of New En
g
land Gas Company from
Southern Union Company. In connection with this acquisition, the Company’s assets and benefit obli
g
ation of the PBOP
plan increased by $13 million and $48 million, respectively.
2007
(In
thousands
)
Amounts recognized on the balance sheet consist of:
Re
g
ulator
y
asset $ 285,490
PBOP liability (1,171,311)
Accumulated other com
p
rehensive income, before taxes 264,669
Net amount recognized $ (621,152)
Amounts recognized in regulatory assets and AOCI consist of:
Net actuarial loss $ 521,892
Prior service cost 106,445
Net amount reco
g
nized $ 628,337
Pa
y
ments Subsidies
(In thousands)
2008 $117,654 $ 7,063