Here is a commandline workaround for the current lack of reasonable GUI
configuration (and lack of sensible defaults):

  gsettings set org.gnome.settings-daemon.plugins.power lid-close-ac-
action 'nothing'

Per the "lack of sensible defaults" remark above, I'm also marking this
bug as affecting gnome-settings-daemon; having the machine suspend on
lid close when connected to power is an infuriating regression.

** Also affects: gnome-settings-daemon (Ubuntu)
   Importance: Undecided
       Status: New

** Changed in: gnome-settings-daemon (Ubuntu Oneiric)
       Status: New => Triaged

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https://bugs.launchpad.net/bugs/792636

Title:
  [Regression] Power section no longer allows configuration of "when the
  lid is closed" action in Oneiric

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