2025 Essential Annual Report

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (continued) (In thousands of dollars, except per share amounts)

The following table provides selected information about plans with accumulated benefit obligation and projected benefit obligation in excess of plan assets:

December 31,

December 31,

2025

2024

Other Post- retirement Benefits

Other Post- retirement Benefits

Pension Benefits

Pension Benefits

Selected information for plans with projected benefit obligation in excess of plan assets: Projected benefit obligation $

$ $

N/A $ N/A $

17,858 $

N/A N/A

18,406

Fair value of plan assets

$

- $

-

Selected information for plans with accumulated benefit obligation in excess of plan assets: Accumulated benefit obligation

$ $

$ $

$ $

15,352 $

18,406

29,231 14,107

30,072

Fair value of plan assets 13,507 The following table provides the components of net periodic benefit costs for the years ended December 31: - - $

Pension Benefits

Other Post-retirement Benefits

2025

2024

2023

2025

2024

2023

Service cost Interest cost

$

1,218 $ 1,429 $ 1,507 $

1,488$ 1,453$ 1,347 4,529 4,450 4,476 (4,282) (4,420) (4,372)

15,964

15,632 16,007 (18,782) (22,223)

Expected return on plan assets Amortization of prior service cost Amortization of actuarial loss (gain) Net periodic benefit cost/(credit)

(17,065)

311

325

684

-

-

-

3,331

3,003 2,962

(1,606) (1,068) (1,317)

$

3,759 $ 1,607 $ (1,063) $

129$ 415$

134

The Company records the underfunded/overfunded status of its pension and other post-retirement benefit plans on its consolidated balance sheets and records a regulatory asset/liability for these costs that would otherwise be charged to stockholders’ equity, as the Company anticipates recoverability of the costs through customer rates to be probable. Changes in the plans’ funded status will affect the assets and liabilities recorded on the balance sheet. Due to the Company’s regulatory treatment, the recognition of the funded status is recorded as a regulatory asset pursuant to the FASB’s accounting guidance for regulated operations.

The following table provides the amounts recognized in regulatory assets and regulatory liabilities that have not been recognized as components of net periodic benefit cost as of December 31:

Pension Benefits

Other Post-retirement Benefits

2025

2024

2025

2024

Net actuarial loss (gain)

$

85,822 $ 92,190 $

(29,383) $

(24,504)

Prior service cost

1,366

1,540

-

-

Total recognized in regulatory assets

$

87,188 $ 93,730 $

(29,383) $

(24,504)

74

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