BENEFIT PLANS

Idaho Power has a noncontributory defined benefit pension plan covering most employees. The benefits under the plan are based on years of service and the employee’s final average earnings. In addition, Idaho Power has a nonqualified defined benefit plan for certain senior management employees called the Senior Management Security Plan (SMSP). Idaho Power also maintains a defined benefit postretirement plan (consisting of health care and death benefits) that is available to all employees who were enrolled in the active group plan at the time of retirement as well as their spouses and qualifying dependents. Idaho Power also has an Employee Savings Plan that complies with Section 401(k) of the Internal Revenue Code and covers substantially all employees. Idaho Power matches specified percentages of employee contributions to the Employee Savings Plan.

The table below shows the components of net periodic benefit costs for the pension, SMSP, and postretirement benefits plans for the three months ended June 30 (in thousands of dollars).



	Pension Plan						Senior Management Security Plan				Postretirement Benefits
	2012			2011			2012		2011		2012			2011
Service cost	$	6,345		$	5,074		$	538	$	488	$	295		$	290
Interest cost	7,853			7,610			804		773		749			824
Expected return on plan assets	(8,155		)	(7,984		)	—		—		(513		)	(654		)
Amortization of transition obligation	—			—			—		—		510			510
Amortization of prior service cost	86			129			54		61		(106		)	(112		)
Amortization of net loss	3,594			2,243			382		323		49			118
Net periodic benefit cost	9,723			7,072			1,778		1,645		984			976
Costs not recognized due to the effects of regulation ⁽¹⁾	(4,954		)	(4,350		)	—		—		—			—
Net periodic benefit cost recognized for financial reporting⁽¹⁾	$	4,769		$	2,722		$	1,778	$	1,645	$	984		$	976

⁽¹⁾ Net periodic benefit costs for the pension plan are recognized for financial reporting based upon the authorization of each regulatory jurisdiction in which Idaho Power operates. Under IPUC order, income statement recognition of pension plan costs has been deferred until costs are recovered through rates.

The table below shows the components of net periodic benefit costs for the pension, SMSP, and postretirement benefits plans for the six months ended June 30 (in thousands of dollars).



	Pension Plan						Senior Management Security Plan				Postretirement Benefits
	2012			2011			2012		2011		2012			2011
Service cost	$	12,786		$	10,239		$	1,076	$	976	$	646		$	662
Interest cost	15,745			15,161			1,609		1,546		1,567			1,717
Expected return on plan assets	(15,867		)	(15,935		)	—		—		(1,117		)	(1,321		)
Amortization of transition obligation	—			—			—		—		1,020			1,020
Amortization of prior service cost	173			259			107		122		(211		)	(211		)
Amortization of net loss	7,057			4,337			764		646		192			289
Net periodic benefit cost	19,894			14,061			3,556		3,290		2,097			2,156
Costs not recognized due to the effects of regulation ⁽¹⁾	(10,343		)	(9,610		)	—		—		—			—
Net periodic benefit cost recognized for financial reporting⁽¹⁾	$	9,551		$	4,451		$	3,556	$	3,290	$	2,097		$	2,156

During the six months ended June 30, 2012, Idaho Power contributed $34 million to its pension plan, satisfying its estimated 2012 contribution requirements.