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Pension Plans and Other Postretirement Benefit Plans
 3 Months Ended
Mar. 31, 2023
Retirement Benefits, Description [Abstract]  
Pension Plans and Other Postretirement Benefit Plans

NOTE 7. PENSION PLANS AND OTHER POSTRETIREMENT BENEFIT PLANS

Avista Utilities

The Company contributed $3.3 million in cash to the pension plan for the three months ended March 31, 2023, and expects to contribute $10.0 million in 2023.

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 months ended March 31 (dollars in thousands):

 

 

Pension Benefits

 

 

Other Postretirement Benefits

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Three months ended March 31:

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

4,894

 

 

$

5,771

 

 

$

818

 

 

$

1,063

 

Interest cost

 

 

7,232

 

 

 

6,907

 

 

 

1,044

 

 

 

1,440

 

Expected return on plan assets

 

 

(10,922

)

 

 

(10,951

)

 

 

(891

)

 

 

(700

)

Amortization of prior service cost

 

 

123

 

 

 

75

 

 

 

(263

)

 

 

(275

)

Net loss recognition

 

 

839

 

 

 

1,148

 

 

 

533

 

 

 

890

 

Net periodic benefit cost

 

$

2,166

 

 

$

2,950

 

 

$

1,241

 

 

$

2,418

 

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.