Pension and Other Postretirement Benefits

6 Months Ended

Jun. 30, 2011

Disclosure Pension And Other Postretirement Benefits [Abstract]

Pension and Other Postretirement Benefits Text Block

9.       Pension and Other Postretirement Benefit Costs

The following tables provide the components of net periodic benefit cost for our company-sponsored qualified and non-qualified defined benefit pension plans and other postretirement benefit plans:

		Three Months Ended June 30,
							Other Postretirement
			Pension Benefits				Benefits
Thousands			2011		2010		2011		2010
Service cost		$	1,900	$	1,773	$	168	$	156
Interest cost			4,526		4,492		343		342
Expected return on plan assets			(4,456)		(4,563)		-		-
Amortization of net actuarial loss			2,692		1,768		68		8
Amortization of prior service costs			88		204		49		49
Amortization of transition obligations			-		-		103		103
	Net periodic benefit cost		4,750		3,674		731		658
Amount allocated to construction			(1,251)		(947)		(229)		(207)
Amount deferred to regulatory balancing account(1)			(1,329)		-		-		-
	Net amount charged to expense	$	2,170	$	2,727	$	502	$	451
		Six Months Ended June 30,
							Other Postretirement
			Pension Benefits				Benefits
Thousands			2011		2010		2011		2010
Service cost		$	3,799	$	3,546	$	336	$	312
Interest cost			9,053		8,983		687		685
Expected return on plan assets			(8,912)		(9,127)		-		-
Amortization of net actuarial loss			5,384		3,536		136		15
Amortization of prior service costs			176		410		98		98
Amortization of transition obligations			-		-		206		206
	Net periodic benefit cost		9,500		7,348		1,463		1,316
Amount allocated to construction			(2,486)		(1,900)		(455)		(415)
Amount deferred to regulatory balancing account(1)			(2,659)		-		-		-
	Net amount charged to expense	$	4,355	$	5,448	$	1,008	$	901
(1) Effective January 1, 2011, the OPUC approved the deferral of certain pension expenses above or below the amount set in rates, with recovery of these deferred amounts through the implementation of a balancing account, which includes the expectation of lower pension expenses in future years. Our recovery of deferred pension expense balances includes accrued interest at the utility’s authorized rate of return.

See Part II, Item 8., Note 9, in the 2010 Form 10-K for more information about our pension and other postretirement benefit plans.

In addition to the company-sponsored defined benefit plans referred to above, we contribute to a multiemployer pension plan for our bargaining unit employees in accordance with our collective bargaining agreement, known as the Western States Office and Professional Employees International Union Pension Fund (Western States Plan). The cost of this plan is in addition to pension expense in the table above. The Western States Plan has reported an accumulated funding deficit for the current plan year and remains in critical status. The Western States Plan trustees adopted a rehabilitation plan that reduced benefit accrual rates and adjustable benefits for active employee participants and increased future employer contribution rates. These changes are expected to improve the funding status of the plan.  We made contributions totaling $0.2 million to the Western States Plan for both the six months ended June 30, 2011 and 2010.  If we withdraw and the plan is underfunded, we could be assessed a withdrawal liability which is not currently recognized on the balance sheet in accordance with accounting rules for multiemployer plans. Currently, we have no intent to withdraw from the plan, so we have not recorded a withdrawal liability.

Employer Pension Contributions

In the six months ended June 30, 2011,we made cash contributionstotaling $16.4 million to our qualified defined benefit pension plans. We also expect to make additional contributions of between $5 million and $7 millionto these qualified plansover the last six months of 2011,plus we expect to makeongoing benefit payments under our unfunded, non-qualified pension plans and other postretirement benefit plans. For more information see Part II, Item 8., Note 9, in the 2010 Form 10-K.