Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2014

Change in projected benefit obligation and fair value of plan assets

The table below sets forth information relating to the Company's Pension Plan and Other Benefits Plan for 2014 and 2013.

	(Thousands of Dollars)
	Pension Plan						Other Benefits Plan
	December 31,
	2014			2013			2014			2013
Change in Projected Benefit Obligation:
Beginning Balance	$	56,041		$	62,817		$	37,212		$	50,608
Plan Amendment*		—			—			—			(10,244	)
Service Cost		1,894			2,300			1,032			1,338
Interest Cost		2,682			2,468			1,792			1,594
Actuarial (Gain) Loss		16,429			(9,694	)		10,092			(5,595	)
Benefits Paid		(2,003	)		(1,850	)		(550	)		(489	)
Ending Balance	$	75,043		$	56,041		$	49,578		$	37,212
* See discussion of Other Benefits Plan amendment in “Other Benefits” above.
		(Thousands of Dollars)
	Pension Plan						Other Benefits Plan
		December 31,
		2014			2013			2014			2013
Change in Fair Value of Plan Assets:
Beginning Balance	$	46,443		$	37,904		$	25,145		$	20,408
Actual Return on Plan Assets		3,603			6,779			1,243			2,553
Employer Contributions		3,580			3,610			1,697			2,673
Benefits Paid		(2,003	)		(1,850	)		(550	)		(489	)
Ending Balance	$	51,623		$	46,443		$	27,535		$	25,145

Funded Status	$	(23,420	)	$	(9,598	)	$	(22,043	)	$	(12,067	)

Amounts recognized in balance sheet

Amounts Recognized in the Consolidated Balance Sheets consist of:
Current Liability		328		330		—		—
Noncurrent Liability		23,092		9,268		22,043		12,067
Net Liability Recognized	$	23,420	$	9,598	$	22,043	$	12,067

Components of net benefit cost

	Years Ended December 31,
	(Thousands of Dollars)
	Pension Plan									Other Benefits Plan
	2014			2013			2012			2014			2013			2012
Components of Net Periodic Benefit Cost
Service Cost	$	1,894		$	2,300		$	2,198		$	1,032		$	1,338		$	1,784
Interest Cost		2,682			2,468			2,417			1,792			1,594			1,868
Expected Return on Plan Assets		(3,534	)		(2,894	)		(2,458	)		(1,937	)		(1,622	)		(1,258	)
Amortization of Net Transition Obligation		—			—			—			—			—			135
Amortization of Net Actuarial Loss		416			1,632			1,549			1,413			2,066			1,765
Amortization of Prior Service Cost/(Credit)		2			10			10			(1,728	)		(1,728	)		—
Net Periodic Benefit Cost	$	1,460		$	3,516		$	3,716		$	572		$	1,648		$	4,294

Amounts expected to be amortized from regulatory assets

Amounts that are expected to be amortized from Regulatory Assets into Net Periodic Benefit Cost in 2015 are as follows:

	(Thousands of Dollars)
	Pension Plan		Other Benefits Plan
Actuarial Loss	$	1,646	$	2,261
Prior Service Credit		—		(1,728	)

Discount and compensation rates

The discount rate and compensation increase rate for determining our postretirement benefit plans' benefit obligations and costs as of December 31, 2014, 2013 and 2012, respectively, are as follows:

	Pension Plan									Other Benefits Plan
	2014			2013			2012			2014			2013			2012
Weighted Average Assumptions:
Expected Return on Plan Assets		7.50	%		7.50	%		7.50	%		7.50	%		7.50	%		7.50	%
Discount Rate for:
Benefit Obligation		3.91	%		4.87	%		3.99	%		3.91	%		4.87	%		3.99	%
Benefit Cost		4.87	%		3.99	%		4.37	%		4.87	%		3.99	%		4.37	%
Compensation Increase for:
Benefit Obligation		3.00	%		3.00	%		3.00	%		3.00	%		3.00	%		3.00	%
Benefit Cost		3.00	%		3.00	%		3.00	%		3.00	%		3.00	%		3.00	%

Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

A one-percentage point change in assumed healthcare cost trend rates would have the following effects on the Other Benefits Plan:

	(Thousands of Dollars)
	1 Percentage Point
	Increase		Decrease
Effect on Current Year's Service and Interest Cost	$	570	$	(443	)
Effect on Projected Benefit Obligation	$	9,404	$	(7,298	)

Expected benefit payments

The following benefit payments, which reflect expected future service, are expected to be paid:

	(Thousands of Dollars)
Year	Pension Plan		Other Benefits Plan
2015	$	2,056	$	885
2016		2,031		1,051
2017		2,315		1,269
2018		2,392		1,443
2019		2,405		1,629
2020-2024		17,554		10,060
Totals	$	28,753	$	16,337

Allocation of plan assets

The allocation of plan assets at December 31, 2014 and 2013 by asset category is as follows:

	Pension Plan					Other Benefits Plan
Asset Category		2014		2013			2014		2013		Target		Range
Equity Securities		60.7	%	65.4	%		49.5	%	47.8	%	60	%	30-70%
Debt Securities		35.8	%	32.1	%		47.5	%	47.9	%	38	%	25-70%
Cash		1.2	%	0.8	%		2.8	%	3.6	%	2	%	0-10%
Real Estate/Commodities		2.3	%	1.7	%		0.2	%	0.7	%	0	%	0-5%
Total		100.0	%	100.0	%		100.0	%	100.0	%

Fair value of plan assets

The following table presents Middlesex's Pension Plan assets measured and recorded at fair value within the fair value hierarchy as of December 31, 2014 (amounts in thousands):

	Level 1		Level 2		Level 3		Total
Mutual Funds:
Small Cap Core	$	261	$	—	$	—		261
Small Cap Value		876		—		—		876
Mid Cap Core		1,013		—		—		1,013
Mid Cap Value		627		—		—		627
Large Cap Blend		1,187		—		—		1,187
Large Cap Core		15,321		—		—		15,321
Foreign Large Core		989		—		—		989
Foreign Large Growth		449						449
Foreign Large Blend		2,566		—		—		2,566
Diversified Emerging Markets		737		—		—		737
Intermediate Term Bond		9,824		—		—		9,824
World Bond		8,668		—		—		8,668
Money Market Funds:
Cash and Cash Equivalents		127		386		—		513
Common Equity Securities:
Non-Financial Services		280		—		—		280
Financial Services		1,656		—		—		1,656
Utilities		1,504		—		—		1,504
Consumer Growth		1,123		—		—		1,123
Consumer Staples		459		—		—		459
Consumer Cyclicals		922		—		—		922
Industrial Resources		155		—		—		155
Capital Equipment		453		—		—		453
Technology		1,328		—		—		1,328
Energy		712		—		—		712
Total Investments	$	51,237	$	386	$	—	$	51,623

The following table presents Middlesex's Pension Plan assets measured and recorded at fair value within the fair value hierarchy as of December 31, 2013 (amounts in thousands):

	Level 1		Level 2		Level 3		Total
Mutual Funds:
Small Cap Core	$	191	$	—	$	—		191
Small Cap Value		278		—		—		278
Mid Cap Growth		1,015		—		—		1,015
Mid Cap Value		555		—		—		555
Large Cap Core		13,916		—		—		13,916
Foreign Small Mid Growth		298		—		—		298
Foreign Large Core		863		—		—		863
Foreign Large Growth		457						457
Foreign Large Blend		2,439		—		—		2,439
Pacific Asia/ex-Japan Stock		157						157
Diversified Emerging Markets		590		—		—		590
Intermediate Term Bond		14,909		—		—		14,909
Real Asset		1,074		—		—		1,074
Money Market Funds:
Cash and Cash Equivalents		44		313		—		357
Common Equity Securities:
Non-Financial Services		147		—		—		147
Financial Services		1,882		—		—		1,882
Utilities		1,433		—		—		1,433
Consumer Growth		1,665		—		—		1,665
Consumer Staples		392		—		—		392
Consumer Cyclicals		1,063		—		—		1,063
Industrial Resources		149		—		—		149
Capital Equipment		419		—		—		419
Technology		1,319		—		—		1,319
Energy		875		—		—		875
Total Investments	$	46,130	$	313	$	—	$	46,443

The following table presents Middlesex's Other Benefits Plan assets measured and recorded at fair value within the fair value hierarchy as of December 31, 2014 (amounts in thousands):

	Level 1		Level 2		Level 3		Total
Mutual Funds:
Small Cap Core	$	491	$	—	$	—	$	491
Small Cap Growth		82		—		—		82
Mid Cap Core		292		—		—		292
Mid Cap Growth		121		—		—		121
Mid Cap Value		768		—		—		768
Large Cap Core		10,516		—		—		10,516
Foreign Small Mid Growth		119		—		—		119
Foreign Large Core		735		—		—		735
Foreign Large Value		113		—		—		113
Diversified Emerging Markets		371		—		—		371
Real Estate Index		62		—		—		62
Money Market Funds:
Cash and Cash Equivalents		450		332		—		782
Preferred Equity Securities		221		—		—		221
Agency/US/State/Municipal Debt		—		12,862		—		12,862
Total Investments	$	14,341	$	13,194	$	—	$	27,535

The following table presents Middlesex's Other Benefits Plan assets measured and recorded at fair value within the fair value hierarchy as of December 31, 2013 (amounts in thousands):

	Level 1		Level 2		Level 3		Total
Mutual Funds:
Small Cap Core	$	290	$	—	$	—	$	290
Mid Cap Core		264		—		—		264
Mid Cap Growth		470		—		—		470
Mid Cap Value		658		—		—		658
Large Cap Core		8,650		—		—		8,650
Foreign Small Mid Growth		361		—		—		361
Foreign Large Core		780		—		—		780
Foreign Large Growth		151		—		—		151
Foreign Large Value		86		—		—		86
Pacific Asia/ex-Japan Stock		125						125
Diversified Emerging Markets		195		—		—		195
Preferred Stock Index		110		—		—		110
Real Estate Index		59		—		—		59
Money Market Funds:
Cash and Cash Equivalents		—		895		—		895
Agency/US/State/Municipal Debt		767		11,161		—		11,928
Commodities		123		—		—		123
Total Investments	$	13,089	$	12,056	$	—	$	25,145

Restricted stock plan

The following table presents information on the 2008 Restricted Stock Plan:

	Shares (thousands)			Unearned Compensation (thousands)			Weighted Average Grant Price
Balance, January 1, 2012		108		$	1,079
Granted		21			408		$	19.35
Vested		(15	)		—
Forfeited		—			—
Amortization of Compensation Expense		—			(448	)
Balance, December 31, 2012		114		$	1,039
Granted		28			589		$	21.20
Vested		(24	)		—
Forfeited		(1	)		(12	)
Amortization of Compensation Expense		—			(400	)
Balance, December 31, 2013		117		$	1,216
Granted		33			711		$	21.46
Vested		(22	)		—
Forfeited		(1	)		(10	)
Amortization of Compensation Expense		—			(434	)
Balance, December 31, 2014		127		$	1,483