v3.26.3
Pension Plans and Other Postretirement Benefit Plans
 9 Months Ended
Sep. 30, 2026
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 $10 million in cash to the pension plan during the nine months ended September 30, 2026, and does not expect further contributions in 2026.

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 millions):

 

 

Pension Benefits

 

 

Other Postretirement Benefits

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Three months ended September 30:

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

4

 

 

$

4

 

 

$

1

 

 

$

1

 

Interest cost

 

 

9

 

 

 

8

 

 

 

1

 

 

 

2

 

Expected return on plan assets

 

 

(11

)

 

 

(11

)

 

 

(1

)

 

 

(1

)

Net loss recognition

 

 

—

 

 

 

1

 

 

 

—

 

 

 

—

 

Net periodic benefit cost

 

$

2

 

 

$

2

 

 

$

1

 

 

$

2

 

Nine months ended September 30:

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

12

 

 

$

12

 

 

$

2

 

 

$

2

 

Interest cost

 

 

27

 

 

 

26

 

 

 

5

 

 

 

5

 

Expected return on plan assets

 

 

(33

)

 

 

(33

)

 

 

(3

)

 

 

(3

)

Net loss recognition

 

 

—

 

 

 

2

 

 

 

—

 

 

 

—

 

Net periodic benefit cost

 

$

6

 

 

$

7

 

 

$

4

 

 

$

4

 

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 50 percent of all labor and benefits is capitalized to utility property and 50 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 and Comprehensive Income or capitalized as a regulatory asset. Approximately 50 percent of the costs are capitalized to regulatory assets and 50 percent is expensed to the income statement.