v3.25.2
EMPLOYEE BENEFIT PLANS (Notes)
 6 Months Ended
Jun. 30, 2025
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]  
Employee Benefit Plans (Notes) EMPLOYEE BENEFIT PLANS
The following tables set forth the components of net periodic benefit cost (credit) for our pension, inclusive of our defined benefit pension plan and supplemental executive retirement plan, and other postemployment benefit plans for the periods indicated:

Pension Benefits
Three Months EndedSix Months Ended
June 30,June 30,
2025202420252024
(Thousands of dollars)
Components of net periodic benefit cost (credit)
 
Service cost$1,337 $1,551 $2,674 $3,102 
Interest cost (a)
10,042 10,281 20,084 20,562 
Expected return on assets (a)
(11,910)(14,757)(23,820)(29,514)
Amortization of unrecognized prior service cost (credit) (a)
93 93 186 186 
Amortization of net loss (gain) (a)
1,865 1,446 3,730 2,892 
Net periodic benefit cost (credit)
$1,427 $(1,386)$2,854 $(2,772)
(a) These amounts, net of any amounts capitalized as a regulatory asset, have been recognized as other (income) expense, net in the consolidated statement of income. See Note 11 for additional detail.

Other Postemployment Benefits
Three Months EndedSix Months Ended
June 30,June 30,
2025202420252024
(Thousands of dollars)
Components of net periodic benefit cost (credit)
 
Service cost$123 $152 $246 $304 
Interest cost (a)
2,069 2,045 4,138 4,090 
Expected return on assets (a)
(2,212)(2,284)(4,424)(4,568)
Amortization of unrecognized prior service cost (credit) (a)
— — — — 
Amortization of net loss (gain) (a)
(31)(4)(62)(8)
Net periodic benefit cost (credit)
$(51)$(91)$(102)$(182)
(a) These amounts, net of any amounts capitalized as a regulatory asset, have been recognized as other (income) expense, net in the consolidated statement of income. See Note 11 for additional detail.
We recover qualified pension benefit plan and other postemployment benefit plan costs through rates charged to our customers. Certain regulatory authorities require that the recovery of these costs be based on specific guidelines. The difference between these regulatory-based amounts and the periodic benefit cost calculated pursuant to GAAP is deferred as a regulatory asset or liability and amortized to expense over periods in which this difference will be recovered in rates, as authorized by the applicable regulatory authorities. For the six months ended June 30, 2025 and 2024, regulatory deferrals related to net periodic benefit cost (credit) were $(0.5) million and $2.4 million, respectively.

We capitalize all eligible service cost and non-service credit components under the accounting requirements of ASC Topic 980 (Regulated Operations) for rate-regulated entities. Capitalized non-service credits reflected as a regulatory liability in our consolidated balance sheets were $6.7 million at June 30, 2025 and December 31, 2024. See Note 3 of the Notes to Consolidated Financial Statements in this Quarterly Report for additional information.

Nonqualified Deferred Compensation Plan - We have a nonqualified deferred compensation plan with obligations of $20.3 million and $18.9 million at June 30, 2025 and December 31, 2024, respectively, which are reported within other deferred credits in our consolidated balance sheets. These obligations represent the amount owed to plan participants and are treated as if invested in specified investment options. A significant portion of the obligation is indirectly funded with key-person corporate-owned life insurance policies to offset costs associated with our nonqualified deferred compensation plan and the supplemental executive retirement plan. These corporate-owned life insurance policies are measured at cash surrender value of $43.7 million and $41.5 million at June 30, 2025 and December 31, 2024, respectively, and are reported within other assets in our consolidated balance sheets.
Gains (losses) on the corporate-owned life insurance policies are recognized in other income (expense), net within our consolidated statements of income; see Note 11 for additional detail of our other income (expense), net. Deferred compensation expense (income) associated with the nonqualified deferred compensation plan is recognized in operations and maintenance expense within our consolidated statements of income were $1.1 million and $1.4 million for six months ended June 30, 2025 and 2024, respectively.