Eversource 2012 Annual Report Download - page 114

101
The following tables represent information on PBOP Plan benefit obligations, fair values of plan assets, and funded status:
PBOP
As of December 31,
2012
2011
(Millions of Dollars)
NU (1)
CL&P
PSNH
WMECO
NU
CL&P
PSNH
WMECO
Change in Benefit Obligation
Benefit Obligation as of Beginning of Year
$
(520.9)
$
(198.9)
$
(99.2)
$
(42.9)
$
(489.9)
$
(190.2)
$
(89.9)
$
(41.7)
Liabilities Assumed from Merger with NSTAR (770.6)
-
-
-
-
-
-
-
Service Cost
(15.7)
(3.0)
(2.0)
(0.6)
(9.2)
(2.9)
(1.9)
(0.6)
Interest Cost
(49.0)
(9.2)
(4.6)
(2.0)
(25.7)
(10.0)
(4.8)
(2.2)
Actuarial Gain/(Loss)
70.9
1.2
0.3
0.1
(30.1)
(8.5)
(8.4)
(1.0)
Federal Subsidy on Benefits Paid (6.2)
(1.7)
(0.6)
(0.3)
(4.1)
(1.8)
(0.7)
(0.4)
Benefits Paid
58.2
14.8
5.9
3.2
38.1
14.5
6.5
3.0
Benefit Obligation as of End of Year
$
(1,233.3)
$
(196.8)
$
(100.2)
$
(42.5)
$
(520.9)
$
(198.9)
$
(99.2)
$
(42.9)
Change in Plan Assets
Fair Value of Plan Assets as of Beginning of Year
$
285.4
$
112.2
$
58.7
$
27.1
$
278.5
$
108.6
$
56.9
$
26.7
Assets Assumed from Merger with NSTAR
330.4
-
-
-
-
-
-
-
Actual Return on Plan Assets 78.8
15.0
7.5
3.5
(2.5)
(1.2)
(0.4)
(0.1)
Employer Contributions
72.7
19.8
9.2
3.6
47.5
19.3
8.7
3.5
Benefits Paid
(58.2)
(14.8)
(5.9)
(3.2)
(38.1)
(14.5)
(6.5)
(3.0)
Fair Value of Plan Assets as of End of Year
$
709.1
$
132.2
$
69.5
$
31.0
$
285.4
$
112.2
$
58.7
$
27.1
Funded Status as of December 31st
$
(524.2)
$
(64.6)
$
(30.7)
$
(11.5)
$
(235.5)
$
(86.7)
$
(40.5)
$
(15.8)
(1)
The NU consolidated results include NSTAR PBOP Plan activity from the date of the merger, April 10, 2012, through December 31,
2012.
The following actuarial assumptions were used in calculating the PBOP Plans' year end funded status:
PBOP
As of December 31,
2012
2011
NUSCO PBOP Plans
Discount Rate 4.04
% 4.84
%
Health Care Cost Trend Rate
7.00
%
7.00
%
NSTAR PBOP Plan
Discount Rate
4.35
%
N/A
Health Care Cost Trend Rate
7.10
%
N/A
PBOP Expense: For the NUSCO Plans, NU allocates net periodic postretirement benefits expense to its subsidiaries based on the
actual participant demographic data for each subsidiary's participants. Benefit payments to participants and contributions are also
tracked for each subsidiary. The actual investment return in the trust is allocated to each of the subsidiaries annually in proportion to
the investment return expected to be earned during the year. For the NSTAR Plan, NSTAR allocates the net periodic postretirement
expenses to its subsidiaries based on actual participant demographic data for each of its subsidiaries. The net periodic postretirement
expense allocated to NSTAR Electric was $34.1 million, $26 million, and $33 million for the years ended December 31, 2012, 2011 and
2010, respectively.
The components of net periodic postretirement benefit expense and intercompany allocations not included in the net periodic benefit
expense amounts for the PBOP Plans were as follows:
PBOP
For the Years Ended December 31,
2012
2011
2010
(Millions of Dollars)
NU (1)
CL&P
PSNH
WMECO
NU
CL&P
PSNH
WMECO
NU
CL&P
PSNH
WMECO
Service Cost
$
15.7
$
3.0
$
2.0
$
0.6
$
9.2
$
2.9
$
1.9
$
0.6
$
8.5
$
2.7
$
1.8
$
0.6
Interest Cost
49.0
9.2
4.6
2.0
25.7
10.0
4.8
2.2
26.8
10.5
5.0
2.3
Expected Return
on Plan Assets
(39.2)
(9.1)
(4.6)
(2.1)
(21.6)
(8.7)
(4.3)
(2.0)
(21.7)
(8.7)
(4.3)
(2.1)
Actuarial Loss
36.0
7.5
3.6
1.2
19.0
7.2
3.2
1.1
16.7
6.3
2.7
0.9
Prior Service
Cost/(Credit)
(1.4)
-
-
-
(0.3)
-
-
1.3
(0.3)
-
-
-
Net Transition
Obligation Cost(2)
12.2
6.1
2.5
1.3
11.6
6.2
2.5
-
11.6
6.1
2.5
1.3
Total Net Periodic
Benefit Expense $ 72.3
$ 16.7
$ 8.1
$ 3.0
$ 43.6
$ 17.6
$ 8.1
$ 3.2
$ 41.6
$ 16.9
$ 7.7
$ 3.0
Related Intercompany
Allocations N/A
$ 7.9
$ 2.0
$ 1.5
N/A
$ 8.2
$ 2.0
$ 1.5
N/A
$ 7.9
$ 2.0
$ 1.4
(1)
The NU consolidated results include NSTAR PBOP Plan expense from the date of the merger, April 10, 2012, through December 31,
2012.
(2)
The NUSCO PBOP Plans and NSTAR PBOP Plan transition obligation costs will be fully amortized in 2013.