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Note 11 - Pension Plan and Other Postretirement Benefits
 3 Months Ended
Mar. 31, 2020
Notes to Financial Statements  
Retirement Benefits [Text Block]

11. Pension Plan and Other Postretirement Benefits

 

Pension Plan—Components of net periodic pension benefit cost of the Company's noncontributory funded pension plan are as follows:

 

   

Three Months Ended March 31,

  

(in thousands)

  

2020

    

2019

  

Service Cost—Benefit Earned During the Period

   $ 1,655     $ 1,373  

Interest Cost on Projected Benefit Obligation

     3,263       3,603  

Expected Return on Assets

     (5,505 )     (5,325 )

Amortization of Prior-Service Cost:

                

From Regulatory Asset

     -       1  

From Other Comprehensive Income1

     -       2  

Amortization of Net Actuarial Loss:

                

From Regulatory Asset

     2,231       1,163  

From Other Comprehensive Income1

     55       27  

Net Periodic Pension Cost2

   $ 1,699     $ 844  

1Corporate cost included in nonservice cost components of postretirement benefits.

                

2Allocation of costs:

                

Service costs included in OTP capital expenditures

   $ 423     $ 390  

Service costs included in electric operation and maintenance expenses

     1,192       950  

Service costs included in other nonelectric expenses

     40       33  

Nonservice costs capitalized as regulatory assets

     11       (150 )

Nonservice costs included in nonservice cost components of postretirement benefits

     33       (379 )

 

Cash flows—The Company had no minimum funding requirement as of December 31, 2019 but made a discretionary plan contribution of $11.2 million in January 2020.

 

Executive Survivor and Supplemental Retirement Plan—Components of net periodic pension benefit cost of the Company’s unfunded, nonqualified benefit plan for executive officers and certain key management employees are as follows:

 

   

Three Months Ended March 31,

  

(in thousands)

  

2020

    

2019

  

Service Cost—Benefit Earned During the Period

   $ 45     $ 105  

Interest Cost on Projected Benefit Obligation

     362       434  

Amortization of Prior Service Cost:

                

From Regulatory Asset

     -       1  

From Other Comprehensive Income1

     -       4  

Amortization of Net Actuarial Loss:

                

From Regulatory Asset

     23       31  

From Other Comprehensive Income1

     86       87  

Net Periodic Pension Cost2

   $ 516     $ 662  

1Amortization of prior service costs and net actuarial losses from other comprehensive income are included in nonservice cost components of postretirement benefits.

               

2Allocation of Costs:

                

Service costs included in electric operation and maintenance expenses

   $ -     $ 26  

Service costs included in other nonelectric expenses

     45       79  

Nonservice costs included in nonservice cost components of postretirement benefits

     471       557  

 

Other Postretirement Benefits—Components of net periodic postretirement benefit cost for health insurance benefits for retired OTP and corporate employees, net of the effect of Medicare Part D Subsidy:

 

   

Three Months Ended March 31,

  

(in thousands)

  

2020

    

2019

  

Service Cost—Benefit Earned During the Period

   $ 462     $ 321  

Interest Cost on Projected Benefit Obligation

     598       770  

Amortization of Prior-Service Cost:

                

From Regulatory Asset

     (1,169 )     -  

From Other Comprehensive Income1

     (29 )     -  

Amortization of Net Actuarial Loss:

                

From Regulatory Asset

     1,051       393  

From Other Comprehensive Income1

     26       10  

Net Periodic Postretirement Benefit Cost2

   $ 939     $ 1,494  

Effect of Medicare Part D Subsidy

   $ 281     $ (45 )

1Corporate cost included in nonservice cost components of postretirement benefits.

                

2Allocation of Costs:

                

Service costs included in OTP capital expenditures

   $ 118     $ 91  

Service costs included in electric operation and maintenance expenses

     333       223  

Service costs included in other nonelectric expenses

     11       7  

Nonservice costs capitalized as regulatory assets

     122       333  

Nonservice costs included in nonservice cost components of postretirement benefits

     355       840