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Pension Plans And Other Postretirement Benefit Plans
 3 Months Ended
Mar. 31, 2020
Retirement Benefits, Description [Abstract]  
Pension Plans and Other Postretirement Benefit Plans PENSION PLANS AND OTHER POSTRETIREMENT BENEFIT PLANS
Avista Utilities
Avista Utilities’ maintained the same pension and other postretirement plans during the three months ended March 31, 2020 as those described as of December 31, 2019. 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 $7.3 million in cash to the pension plan for the three months ended March 31, 2020 and it expects to contribute a total of $22 million in 2020.
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
 
2020
 
2019
 
2020
 
2019
Service cost
$
5,546

 
$
4,874

 
$
979

 
$
772

Interest cost
6,971

 
7,138

 
1,515

 
1,372

Expected return on plan assets
(9,125
)
 
(7,815
)
 
(630
)
 
(718
)
Amortization of prior service cost
75

 
75

 
(275
)
 
(275
)
Net loss recognition
1,654

 
2,415

 
1,243

 
1,246

Net periodic benefit cost
$
5,121

 
$
6,687

 
$
2,832

 
$
2,397


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.