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102
The following actuarial assumptions were used to calculate PBOP expense amounts:
PBOP
For the Years Ended December 31,
2012 2011 2010
NUSCO PBOP Plans
Discount Rate
4.84
%
5.28
%
5.73
%
Expected Long-Term Rate of Return
8.25
%
8.25
%
8.75
%
NSTAR PBOP Plan
Discount Rate
4.58
%
N/A
N/A
Expected Long-Term Rate of Return
7.30
%
N/A
N/A
The following is a summary of the changes in plan assets and benefit obligations recognized in Regulatory Assets and OCI as well as
amounts in Regulatory Assets and OCI reclassified as net periodic benefit (expense)/income during the years presented:
Amounts Reclassified To/From
Regulatory Assets
OCI
(Millions of Dollars)
For the Years Ended December 31,
NU PBOP Plans (1)
2012
2011
2012
2011
Actuarial (Gains)/Losses Arising During the Year
$
(108.6)
$
50.2
$
(1.8)
$
4.0
Actuarial Losses Reclassified as Net Periodic Benefit Expense (34.9)
(18.1)
(1.1)
(0.9)
Prior Service Credit Reclassified as Net Periodic Benefit Income
1.4
0.3
-
-
Transition Obligation Reclassified as Net Periodic Benefit Expense
(11.9)
(11.3)
(0.2)
(0.2)
The following is a summary of the remaining Regulatory Assets and Accumulated Other Comprehensive Loss amounts that have not
been recognized as components of net periodic benefit expense as of December 31, 2012 and 2011, and the amounts that are
expected to be recognized as components in 2013:
Regulatory Assets as of Expected AOCI as of Expected
(Millions of Dollars)
December 31,
2013
December 31,
2013
NU PBOP Plans (1)
2012
2011
Expense
2012
2011
Expense
Actuarial Loss
$
376.1
$
196.3
$
31.4
$
9.2
$
12.1
$
1.0
Prior Service Credit
(6.7)
(2.4)
(2.1)
-
-
-
Transition Obligation
-
11.4
-
-
0.2
-
(1) The NU consolidated amounts include the NSTAR PBOP Plan from the date of the merger, April 10, 2012, through December 31,
2012.
For the NUSCO PBOP Plans, the health care cost trend assumption is 7 percent, subsequently decreasing 50 basis points per year to
an ultimate rate of 5 percent in 2017. For the NSTAR PBOP Plan, the health care cost trend assumption is 7.10 percent, subsequently
decreasing to an ultimate rate of 4.50 percent in 2024.
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. The effect of
changing the assumed health care cost trend rate by one percentage point for the year ended December 31, 2012 would have the
following effects:
(Millions of Dollars)
One Percentage
One Percentage
NU PBOP Plans
Point Increase
Point Decrease
Effect on Postretirement Benefit Obligation
$
126.5
$
(101.7)
Effect on Total Service and Interest Cost Components
8.9
(6.9)