Eversource 2015 Annual Report Download - page 93

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81
released having the effect of decreasing the estimate of benefits to be provided to plan participants. The impact of the adoption of the new mortality
scale resulted in a decrease of $23 million on Eversource’s liability as of December 31, 2015.
The increase in the discount rate used to calculate the funded status resulted in a decrease on Eversource’s liability of approximately $60 million as of
December 31, 2015. Decreases in the discount rates resulted in an increase on Eversource’s liability of approximately $110 million as of
December 31, 2014.
The following actuarial assumptions were used in calculating the PBOP Plan’s year end funded status:
PBOP
As of December 31,
2015 2014
Discount Rate
4.62 %
4.22 %
Health Care Cost Trend Rate 6.25 %
6.50 %
PBOP Expense: Eversource charges net periodic postretirement benefits expense to its subsidiaries based on the actual participant demographic data
for each subsidiary’s participants. 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 year ended December 31, 2013 (prior to the service company merger), the net
periodic postretirement expense of the NSTAR PBOP Plan allocated to NSTAR Electric was $4.6 million.
The components of net periodic benefit expense for the PBOP Plan are shown below. The net periodic benefit expense and the intercompany
allocations less the capitalized portion of PBOP are 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 on the balance sheets. PBOP expense
reflected in the statements of cash flows for CL&P, NSTAR Electric, PSNH and WMECO does not include the intercompany allocations or the
corresponding capitalized portion, as these amounts are cash settled on a short-term basis.
PBOP
For the Year Ended December 31, 2015
NSTAR
(Millions of Dollars) Eversource
CL&P
Electric
PSNH
WMECO
Service Cost
$
16.3 $
2.1
$
5.4 $
1.4 $
0.4
Interest Cost 47.2 7.2
19.0 3.9 1.5
Expected Return on Plan Assets (67.4) (11.1)
(27.3) (6.0) (2.5)
Actuarial Loss 6.8 0.7
2.3 0.5 -
Prior Service Credit (0.5) -
(0.2) - -
Total Net Periodic Benefit Expense/(Income) $
2.4 $
(1.1)
$
(0.8) $
(0.2) $
(0.6)
Intercompany Allocations N/A $
1.9
$
0.8 $
0.4 $
0.3
Capitalized PBOP Expense/(Income) $
0.1 $
(0.2)
$
(0.2) $
0.2 $
(0.2)
PBOP
For the Year Ended December 31, 2014
NSTAR
(Millions of Dollars) Eversource
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 4.3 1.7
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
(Millions of Dollars) Eversource
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