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Pension Plans and Other Postretirement Benefit Plans
 9 Months Ended
Sep. 30, 2024
Retirement Benefits, Description [Abstract]  
Pension Plans and Other Postretirement Benefit Plans

NOTE 6. PENSION PLANS AND OTHER POSTRETIREMENT BENEFIT PLANS

Avista Utilities

The Company contributed $10.0 million in cash to the pension plan for the nine months ended September 30, 2024, and does not expect further contributions in 2024.

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

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Three months ended September 30:

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

4,030

 

 

$

3,098

 

 

$

719

 

 

$

559

 

Interest cost

 

 

8,430

 

 

 

8,524

 

 

 

1,706

 

 

 

1,872

 

Expected return on plan assets

 

 

(11,356

)

 

 

(10,922

)

 

 

(974

)

 

 

(891

)

Amortization of prior service cost (credit)

 

 

126

 

 

 

123

 

 

 

(263

)

 

 

(263

)

Net loss recognition

 

 

684

 

 

 

1,184

 

 

 

96

 

 

 

(54

)

Net periodic benefit cost

 

$

1,914

 

 

$

2,007

 

 

$

1,284

 

 

$

1,223

 

Nine months ended September 30:

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

11,739

 

 

$

11,092

 

 

$

2,000

 

 

$

1,909

 

Interest cost

 

 

25,012

 

 

 

24,277

 

 

 

5,178

 

 

 

4,825

 

Expected return on plan assets

 

 

(33,940

)

 

 

(32,766

)

 

 

(2,922

)

 

 

(2,673

)

Curtailment loss

 

 

169

 

 

 

—

 

 

 

—

 

 

 

—

 

Amortization of prior service cost (credit)

 

 

375

 

 

 

369

 

 

 

(789

)

 

 

(789

)

Net loss recognition

 

 

2,043

 

 

 

3,208

 

 

 

275

 

 

 

471

 

Net periodic benefit cost

 

$

5,398

 

 

$

6,180

 

 

$

3,742

 

 

$

3,743

 

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.

In 2024, the Company offered pension participants an election to leave the pension plan for an alternative defined contribution 401(k) plan. In April 2024, it was determined that due to the number of participants electing to leave the pension plan, as well as the resulting decrease in expected future service, this event resulted in a curtailment of the pension plan, and an associated gain of $1.4 million for the reduction in the benefit obligation. This gain was offset against the unrecognized net actuarial loss (and recorded within a regulatory asset). There was also a $0.2 million loss recognized for the acceleration of unrecognized prior service costs. The curtailment triggered a remeasurement of pension plan. The impact of the remeasurement was not material to the Company's condensed consolidated financial statements.