Xcel Energy 2015 Annual Report Download - page 128
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(Thousands of Dollars) 2015 2014
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost:
Net loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 103,039 $ 124,064
Prior service credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (64,925) (75,610)
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 38,114 $ 48,454
(Thousands of Dollars) 2015 2014
Amounts Not Yet Recognized as Components of Net Periodic Benefit Cost Have Been
Recorded as Follows Based Upon Expected Recovery in Rates:
Current regulatory assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 352 $ 285
Noncurrent regulatory assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,135 59,697
Current regulatory liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (985) (892)
Noncurrent regulatory liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (16,916) (17,216)
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,148 2,559
Net-of-tax accumulated OCI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,380 4,021
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 38,114 $ 48,454
Measurement date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dec. 31, 2015 Dec. 31, 2014
2015 2014
Significant Assumptions Used to Measure Benefit Obligations:
Discount rate for year-end valuation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.65% 4.08%
Mortality table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . RP 2014 RP 2014
Health care costs trend rate — initial. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.00% 6.50%
Effective Jan. 1, 2016, the initial medical trend rate was decreased from 6.5 percent to 6.0 percent. The ultimate trend assumption
remained at 4.5 percent. The period until the ultimate rate is reached is three years. Xcel Energy bases its medical trend assumption
on the long-term cost inflation expected in the health care market, considering the levels projected and recommended by industry
experts, as well as recent actual medical cost increases experienced by Xcel Energy’s retiree medical plan.
A one-percent change in the assumed health care cost trend rate would have the following effects on Xcel Energy:
One-Percentage Point
(Thousands of Dollars) Increase Decrease
APBO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 56,383 $ (47,972)
Service and interest components . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,113 (2,594)
Cash Flows — The postretirement health care plans have no funding requirements under income tax and other retirement-related
regulations other than fulfilling benefit payment obligations, when claims are presented and approved under the plans. Additional
cash funding requirements are prescribed by certain state and federal rate regulatory authorities. Xcel Energy contributed $18.3
million during 2015, $17.1 million during 2014, $17.6 million during 2013 and expects to contribute approximately $12.3 million
during 2016.
Plan Amendments — In 2015 and 2014, there were no plan amendments made which affected the benefit obligation.
Benefit Costs — The components of Xcel Energy’s net periodic postretirement benefit costs were:
(Thousands of Dollars) 2015 2014 2013
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,116 $ 3,457 $ 4,079
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,297 34,028 32,141
Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (26,600)(33,954) (33,011)
Amortization of transition obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 825
Amortization of prior service credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,686)(10,688) (12,501)
Amortization of net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,404 11,740 22,325
Net periodic postretirement benefit cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (4,469) $ 4,583 $ 13,858