DTE Energy 2009 Annual Report Download - page 30

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judicial matters. The Company cannot predict the final disposition of such proceedings. The Company regularly reviews legal matters
and records provisions for claims that it can estimate and are considered probable of loss. The resolution of these pending proceedings
is not expected to have a material effect on its operations or financial statements in the periods they are resolved.
See Note 9 for a discussion of contingencies related to Regulatory Matters.
NOTE 15 — RETIREMENT BENEFITS AND TRUSTEED ASSETS
Measurement Date
In 2008, the Company changed the measurement date of its pension and postretirement benefit plans from November 30 to December
31. As a result, the Company recognized an adjustment of $3 million ($2 million after tax) and $4 million to retained earnings and
regulatory liabilities, respectively, which represents approximately one month of pension and postretirement benefit costs for the
period December 1, 2007 to December 31, 2008. All amounts and balances reported in the following tables as of December 31, 2009
and December 31, 2008 are based on measurement dates of December 31, 2009 and December 31, 2008, respectively.
Pension Plan Benefits
MichCon participates in various plans that provide pension and other postretirement benefits for MichCon and its affiliates. MichCon
is allocated net periodic benefit costs (credits) for its share of the amounts of the combined plans. In prior years, MichCon served as
the plan sponsor for a pension plan for represented employees that changed in 2008 to be sponsored by DTE Energy Corporate
Services, LLC (LLC), a subsidiary of DTE Energy, which also became the plan sponsor for all plans of DTE Energy and its affiliates.
The changes in plan sponsorship did not change the pension cost or contributions allocated to MichCon, or the benefits of plan
participants. Disclosures in the following tables of benefit obligations and plan assets, components of net periodic benefit cost (credit),
and changes in benefit obligations and assets include amounts allocated to MichCon for all plans.
The Company’ s policy is to fund pension costs by contributing amounts consistent with the Pension Protection Act of 2006 provisions
and additional amounts it deems appropriate. The Company does not expect to make a contribution to its pension plans in 2010.
In its April 2005 final rate order, the MPSC approved the deferral of the non-capitalized portion of the Company’ s negative pension
expense. In 2009 and 2008, the Company deferred $23 million and $39 million, respectively, as a regulatory liability.
Net pension credit includes the following components:
(in Millions)
2009
2008
2007
Service cost
$ 9
$ 10
$ 11
Interest cost
42
40
38
Expected return on Plan assets
(87)
(93)
(88)
Amortization of:
Net loss
2
—
2
Prior service cost
—
1
1
Special termination benefits
—
—
1
Net pension credit
$ (34)
$ (42)
$ (35)
Special termination benefits in the above table represent cost associated with our Performance Excellence Process.
(in Millions)
2009
2008
Other changes in plan assets and benefit obligations recognized in regulatory assets
Net actuarial loss (gain)
$ 37
$ 387