Xcel Energy 2007 Annual Report Download - page 108

Benefit Obligations — A comparison of the actuarially computed pension-benefit obligation and plan assets, on a
combined basis, is presented in the following table:
2007 2006
(Thousands of Dollars)
Accumulated Benefit Obligation at Dec. 31 ..................................... $2,497,898 $2,486,370
Change in Projected Benefit Obligation
Obligation at Jan. 1 .................................................... $2,666,555 $2,796,780
Service cost ......................................................... 61,392 61,627
Interest cost ......................................................... 162,774 155,413
Plan amendments ...................................................... (19,955) (16,569)
Actuarial (gain) loss .................................................... 23,325 (82,339)
Benefit payments ...................................................... (231,332) (248,357)
Obligation at Dec. 31 ................................................... $2,662,759 $2,666,555
Change in Fair Value of Plan Assets
Fair value of plan assets at Jan. 1 ............................................ $3,183,375 $3,093,536
Actual return on plan assets ............................................... 199,230 306,196
Employer contributions .................................................. 35,000 32,000
Benefit payments ...................................................... (231,332) (248,357)
Fair value of plan assets at Dec. 31 ........................................... $3,186,273 $3,183,375
Funded Status of Plans at Dec. 31
Funded status ........................................................ $ 523,514 $ 516,820
Noncurrent assets ...................................................... 568,055 586,712
Noncurrent liabilities ................................................... (44,541) (69,892)
Net pension amounts recognized on consolidated balance sheets ......................... $ 523,514 $ 516,820
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost:
Net loss ............................................................ $ 216,776 $ 143,695
Prior service cost ...................................................... 123,426 168,437
Total ............................................................. $ 340,202 $ 312,132
SFAS No. 158 Amounts Have Been Recorded as Follows Based Upon Expected Recovery in Rates:
Regulatory assets ...................................................... $ 205,720 208,216
Regulatory liabilities .................................................... 111,650 89,627
Deferred income taxes ................................................... 9,780 6,312
Net-of-tax AOCI ...................................................... 13,052 7,977
Total ............................................................. $ 340,202 312,132
Measurement Date ..................................................... Dec. 31, 2007 Dec. 31, 2006
Significant Assumptions Used to Measure Benefit Obligations
Discount rate for year-end valuation .......................................... 6.25% 6.00%
Expected average long-term increase in compensation level ............................ 4.00 4.00
At Dec. 31, 2007, one of Xcel Energy’s pension plans had projected benefit obligations of $732.7 million, which
exceeded plan assets of $688.1 million. At Dec. 31, 2006, the projected benefit obligations of $728.1 million, exceeded
plan assets of $658.2 million. All other Xcel Energy plans in the aggregate had plan assets of $2.5 billion and projected
benefit obligations of $1.9 billion on Dec. 31, 2007.
Cash Flows — Cash funding requirements can be impacted by changes to actuarial assumptions, actual asset levels and
other calculations prescribed by the funding requirements of income tax and other pension-related regulations. These
regulations did not require cash funding for 2005 through 2007 for Xcel Energy’s pension plans and are not expected
to require cash funding in 2008.
• Voluntary contributions were made to the PSCo Bargaining Pension Plan of $35 million in 2007, $30 million in
2006 and $15 million in 2005.
• Voluntary contributions were made to the NCE Non-Bargaining Pension Plan of $2 million in 2006 and
$5 million in 2005. No voluntary contributions were made to the plan during 2007.
• During 2008, Xcel Energy expects to voluntarily contribute approximately $35 million to the PSCo pension plan
for bargaining employees and does not expect to contribute to the NCE non-bargaining plan.
Plan Changes — The Pension Protection Act of 2006 (PPA) was effective Dec. 31, 2006. PPA requires a change in the
conversion basis for lump-sum payments and three-year vesting for plans with account balance or pension equity
benefits. These changes are reflected as a plan amendment for purposes of SFAS No. 87-’’Employers’ Accounting for
Pensions’’.
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