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78
The components of net periodic benefit expense for the Pension and SERP Plans are shown below. The net periodic benefit expense and the
intercompany allocations less the capitalized portion of pension is included in Operations and Maintenance on the statements of income. Capitalized
pension amounts relate to employees working on capital projects and are included in Property, Plant and Equipment, Net. Intercompany allocations
are not included in the CL&P, NSTAR Electric, PSNH and WMECO net periodic benefit expense amounts. Pension and SERP expense reflected in
the statements of cash flows for CL&P, NSTAR Electric, PSNH and WMECO does not include the intercompany allocations and the corresponding
capitalized portion, as these amounts are cash settled on a short-term basis.
Pension and SERP
For the Year Ended December 31, 2014
NSTAR
 NU CL&P Electric PSNH WMECO
Service Cost $79.9 $20.2 $13.6 $9.7 $3.5
Interest Cost 225.7 50.5 41.3 23.8 10.3
Expected Return on Plan Assets (310.8) (75.4) (63.0) (38.1) (17.9)
Actuarial Loss 128.4 33.7 23.5 11.6 6.9
Prior Service Cost 4.4 1.8 - 0.7 0.4
Total Net Periodic Benefit Expense $127.6 $30.8 $15.4 $7.7 $3.2
Intercompany Allocations N/A $26.7 $10.4 $7.6 $5.1
Capitalized Pension Expense $35.2 $17.6 $7.9 $3.0 $2.4
Pension and SERP
For the Year Ended December 31, 2013
NSTAR
 NU CL&P Electric
(1)
PSNH WMECO
Service Cost $102.3 $24.9 $33.1 $13.1 $4.7
Interest Cost 206.7 48.3 58.0 23.6 10.0
Expected Return on Plan Assets (278.1) (73.8) (84.4) (35.4) (17.4)
Actuarial Loss 210.5 55.9 58.1 21.6 11.8
Prior Service Cost/(Credit) 4.0 1.8 (0.3) 0.7 0.4
Total Net Periodic Benefit Expense $245.4 $57.1 $64.5 $23.6 $9.5
Intercompany Allocations N/A $44.9 $(8.4) $10.5 $8.0
Capitalized Pension Expense $73.2 $28.0 $28.9 $7.3 $5.2
Pension and SERP
For the Year Ended December 31, 2012
NSTAR
 NU
(2)
CL&P Electric
(1)
PSNH WMECO
Service Cost $84.3 $21.8 $30.3 $11.8 $4.1
Interest Cost 198.3 51.2 58.9 24.4 10.5
Expected Return on Plan Assets (220.9) (70.6) (65.6)฀(28.2) (16.4)
Actuarial Loss 172.4 49.6 63.1 16.2 10.7
Prior Service Cost/(Credit) 7.9 3.6 (0.6) 1.5 0.8
Total Net Periodic Benefit Expense $242.0 $55.6 $86.1 $25.7 $9.7
Curtailments and Settlements $2.2 $ - $ - $ - $ -
Intercompany Allocations N/A $42.8 $(12.3) $10.1 $8.1
Capitalized Pension Expense $70.6 $26.8 $30.7 $7.9 $5.1
(1)NSTAR Electric's allocated expense associated with the NSTAR SERP was $3.2 million and $3.6 million for the years ended December 31,
2013 and 2012, respectively, and were not included in the NSTAR Electric amounts in the tables above. For the year ended December 31, 2014,
the SERP amounts are now allocated to NSTAR Electric due to the service company merger.
(2)NSTAR amounts were included in NU beginning April 10, 2012.
The following actuarial assumptions were used to calculate Pension and SERP expense amounts:
Pension and SERP
For the Years Ended December 31,
2014 2013 2012
Discount Rate 4.85 % - 5.03 %4.13 % - 4.24 %4.52 % - 5.03 %
Expected Long-Term Rate of Return 8.25 % 8.25 % 7.30 % - 8.25 %
Compensation/Progression Rate 3.50 % - 4.00 %3.50 % - 4.00 %3.50 % - 4.00 %