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Pension Plans And Other Postretirement Benefit Plans
 6 Months Ended
Jun. 30, 2017
General Discussion of Pension and Other Postretirement Benefits [Abstract]  
Pension Plans and Other Postretirement Benefit Plans
PENSION PLANS AND OTHER POSTRETIREMENT BENEFIT PLANS
Avista Utilities
Avista Utilities’ pension and other postretirement plans have not changed during the six months ended June 30, 2017. The Company’s funding policy is to contribute at least the minimum amounts that are required to be funded under the Employee Retirement Income Security Act, but not more than the maximum amounts that are currently deductible for income tax purposes. The Company contributed $14.8 million in cash to the pension plan for the six months ended June 30, 2017 and expects to contribute a total of $22.0 million in 2017. The Company contributed $12.0 million in cash to the pension plan in 2016.
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 six months ended June 30 (dollars in thousands):
 
Pension Benefits
 
Other Post-retirement Benefits
 
2017
 
2016
 
2017
 
2016
Three months ended June 30:
 
 
 
 
 
 
 
Service cost
$
5,092

 
$
4,569

 
$
799

 
$
804

Interest cost
6,976

 
6,900

 
1,374

 
1,534

Expected return on plan assets
(7,900
)
 
(6,875
)
 
(475
)
 
(475
)
Amortization of prior service cost
—

 
—

 
(312
)
 
(312
)
Net loss recognition
2,317

 
2,201

 
1,320

 
1,494

Net periodic benefit cost
$
6,485

 
$
6,795

 
$
2,706

 
$
3,045

Six months ended June 30:
 
 
 
 
 
 
 
Service cost
$
10,134

 
$
9,088

 
$
1,623

 
$
1,583

Interest cost
13,927

 
13,800

 
2,773

 
3,093

Expected return on plan assets
(15,800
)
 
(13,625
)
 
(950
)
 
(950
)
Amortization of prior service cost
—

 
—

 
(624
)
 
(624
)
Net loss recognition
4,863

 
4,091

 
2,593

 
2,859

Net periodic benefit cost
$
13,124

 
$
13,354

 
$
5,415

 
$
5,961


Total net periodic benefit 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 other operating expenses.