Eversource 2014 Annual Report Download - page 92

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year ended December 31, 2014 was an increase of approximately $82 million. In addition, the decreases in the discount rates resulted in an increase
on NU's funded status liability of approximately $110 million. Partially offsetting these increases are the impact of other actuarial assumptions.
The following actuarial assumptions were used in calculating the PBOP Plans'year end funded status:
PBOP
As of December 31,
2014 2013
Discount Rate 4.22 %4.78 % - 5.10 %
Health Care Cost Trend Rate 6.50 %7.00 %
NU charges 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 each year is allocated to each of the subsidiaries annually in proportion to the investment return expected to be earned during the year.
For the years ended December 31, 2013 and 2012 (prior to the service company merger), the net periodic postretirement expense of the NSTAR
PBOP Plan allocated to NSTAR Electric was $4.6 million and $34.1 million, respectively.
The components of net periodic benefit expense for the PBOP Plans are shown below. The net periodic benefit expense and the intercompany
allocations less the capitalized portion of PBOP is included in Operations and Maintenance on the statements of income. Capitalized PBOP 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. PBOP 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.
PBOP
For the Year Ended December 31, 2014
NSTAR
 NU CL&P Electric PSNH WMECO
Service Cost $12.5 $2.2 $3.1 $1.3 $0.4
Interest Cost 49.5 8.1 19.4 4.31.7
Expected Return on Plan Assets (63.3) (10.5) (25.9) (5.4) (2.3)
Actuarial Loss/(Gain) 12.2 4.2 (0.5) 2.2 0.5
Prior Service Credit (2.8) -(1.9) - -
Total Net Periodic Benefit Expense/(Income) $8.1 $4.0 $ (5.8) $ 2.4 $0.3
Intercompany Allocations N/A $ 3.8 $0.8 $1.0 $0.7
Capitalized PBOP Expense/(Income) $1.4 $1.8 $ (2.3) $ 0.8 $0.2
PBOP
For the Year Ended December 31, 2013
 NU CL&P PSNH WMECO
Service Cost $16.9 $3.4 $2.3 $0.7
Interest Cost 47.2 7.9 4.0 1.7
Expected Return on Plan Assets (55.4) (10.1) (5.2) (2.3)
Actuarial Loss 26.0 7.4 3.6 1.1
Prior Service Credit (2.1) ---
Total Net Periodic Benefit Expense $32.6 $8.6 $ 4.7 $1.2
Intercompany Allocations N/A $ 7.1 $1.6 $1.3
Capitalized PBOP Expense $8.8 $3.9 $1.3 $0.6
PBOP
For the Year Ended December 31, 2012
 NU
(1)
CL&P PSNH WMECO
Service Cost $15.7 $3.0 $2.0 $0.6
Interest Cost 49.0 9.2 4.6 2.0
Expected Return on Plan Assets (39.2) (9.1) (4.6) (2.1)
Actuarial Loss 36.0 7.5 3.6 1.2
Prior Service Credit (1.4) ---
Net Transition Obligation Cost
12.2 6.1 2.5 1.3
Total Net Periodic Benefit Expense $72.3 $16.7 $8.1 $3.0
Intercompany Allocations N/A $ 7.9 $2.0 $1.5
Capitalized PBOP Expense $26.6 $8.2 $2.3 $1.6
(1)
NSTAR amounts were included in NU beginning April 10, 2012.