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Pension Plans and Other Postretirement Benefit Plans
 9 Months Ended
Sep. 30, 2021
Retirement Benefits, Description [Abstract]  
Pension Plans and Other Postretirement Benefit Plans

NOTE 6. PENSION PLANS AND OTHER POSTRETIREMENT BENEFIT PLANS

Avista Utilities

Avista Utilities’ maintained the same pension and other postretirement plans during the nine months ended September 30, 2021 as those described as of December 31, 2020. The Company contributed $42 million in cash to the pension plan for the nine months ended September 30, 2021, the full amount it expects to contribute in 2021.

The Company uses a December 31 measurement date for its defined benefit pension and other postretirement benefit plans. The following table sets forth the components of net periodic benefit costs for the three and nine months ended September 30 (dollars in thousands):

 

 

Pension Benefits

 

 

Other Postretirement Benefits

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Three months ended September 30:

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

6,412

 

 

$

5,549

 

 

$

1,062

 

 

$

982

 

Interest cost

 

 

6,528

 

 

 

6,968

 

 

 

1,305

 

 

 

1,524

 

Expected return on plan assets

 

 

(9,835

)

 

 

(8,625

)

 

 

(509

)

 

 

(590

)

Amortization of prior service cost

 

 

75

 

 

 

75

 

 

 

(275

)

 

 

(275

)

Net loss recognition

 

 

1,592

 

 

 

1,678

 

 

 

777

 

 

 

1,243

 

Net periodic benefit cost

 

$

4,772

 

 

$

5,645

 

 

$

2,360

 

 

$

2,884

 

Nine months ended September 30:

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

18,912

 

 

$

16,645

 

 

$

2,967

 

 

$

2,941

 

Interest cost

 

 

19,638

 

 

 

20,906

 

 

 

3,990

 

 

 

4,563

 

Expected return on plan assets

 

 

(29,314

)

 

 

(26,375

)

 

 

(1,967

)

 

 

(1,810

)

Amortization of prior service cost

 

 

225

 

 

 

225

 

 

 

(825

)

 

 

(825

)

Net loss recognition

 

 

5,103

 

 

 

5,011

 

 

 

3,196

 

 

 

3,729

 

Net periodic benefit cost

 

$

14,564

 

 

$

16,412

 

 

$

7,361

 

 

$

8,598

 

Total service costs in the table above are recorded to the same accounts as labor expense. Labor and benefits expense is recorded to various projects based on whether the work is a capital project or an operating expense. Approximately 40 percent of all labor and benefits is capitalized to utility property and 60 percent is expensed to utility other operating expenses.

The non-service portion of costs in the table above are recorded to other expense below income from operations in the Condensed Consolidated Statements of Income or capitalized as a regulatory asset. Approximately 40 percent of the costs are capitalized to regulatory assets and 60 percent is expensed to the income statement.