Xcel Energy 2015 Annual Report Download - page 129
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2015 2014 2013
Significant Assumptions Used to Measure Costs:
Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.08% 4.82% 4.10%
Expected average long-term rate of return on assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.80 7.17 7.11
Projected Benefit Payments
The following table lists Xcel Energy’s projected benefit payments for the pension and postretirement benefit plans:
(Thousands of Dollars)
Projected
Pension Benefit
Payments
Gross Projected
Postretirement
Health Care
Benefit Payments
Expected
Medicare Part D
Subsidies
Net Projected
Postretirement
Health Care
Benefit Payments
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 260,240 $ 48,047 $ 2,355 $ 45,692
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255,206 47,460 2,493 44,967
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263,689 47,039 2,637 44,402
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268,975 46,522 2,761 43,761
2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271,853 46,819 2,869 43,950
2021-2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,353,351 220,122 16,053 204,069
Multiemployer Plans
NSP-Minnesota and NSP-Wisconsin each contribute to several union multiemployer pension and other postretirement benefit plans,
none of which are individually significant. These plans provide pension and postretirement health care benefits to certain union
employees, including electrical workers, boilermakers, and other construction and facilities workers who may perform services for
more than one employer during a given period and do not participate in the NSP-Minnesota and NSP-Wisconsin sponsored pension
and postretirement health care plans. Contributing to these types of plans creates risk that differs from providing benefits under NSP-
Minnesota and NSP-Wisconsin sponsored plans, in that if another participating employer ceases to contribute to a multiemployer plan,
additional unfunded obligations may need to be funded over time by remaining participating employers.
Contributions to multiemployer plans were as follows for the years ended Dec. 31, 2015, 2014 and 2013. The average number of
NSP-Minnesota union employees covered by the multiemployer pension plans decreased to approximately 900 in 2015 from
approximately 1,000 in 2014. There were no other significant changes to the nature or magnitude of the participation of NSP-
Minnesota and NSP-Wisconsin in multiemployer plans for the years presented:
(Thousands of Dollars) 2015 2014 2013
Multiemployer pension contributions:
NSP-Minnesota. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 17,223 $ 20,254 $ 23,515
NSP-Wisconsin. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 944 156 130
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,167 $ 20,410 $ 23,645
Multiemployer other postretirement benefit contributions:
NSP-Minnesota. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 135 $ 273 $ 390
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 135 $ 273 $ 390
10. Other Income, Net
Other income, net for the years ended Dec. 31 consisted of the following:
(Thousands of Dollars) 2015 2014 2013
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,737 $ 7,353 $ 8,343
Other nonoperating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,514 4,866 3,025
Insurance policy expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,851)(6,923) (8,292)
Other nonoperating expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (104)
Other income, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,400 $ 5,296 $ 2,972