Pension and Other Postretirement Benefits

6 Months Ended

Jun. 30, 2012

Disclosure Pension And Other Postretirement Benefits [Abstract]

Pension and Other Postretirement Benefits Text Block

8.       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			2012		2011		2012		2011
Service cost		$	2,130	$	1,900	$	177	$	168
Interest cost			4,304		4,526		315		343
Expected return on plan assets			(4,639)		(4,456)		-		-
Amortization of net actuarial loss			3,844		2,692		103		68
Amortization of prior service costs			49		88		49		49
Amortization of transition obligations			-		-		103		103
	Net periodic benefit cost		5,688		4,750		747		731
Amount allocated to construction			(1,428)		(1,251)		(215)		(229)
Amount deferred to regulatory balancing account(1)			(2,094)		(1,329)		-		-
	Net amount charged to expense	$	2,166	$	2,170	$	532	$	502
		Six Months Ended June 30,
							Other Postretirement
			Pension Benefits				Benefits
Thousands			2012		2011		2012		2011
Service cost		$	4,260	$	3,799	$	354	$	336
Interest cost			8,608		9,053		629		687
Expected return on plan assets			(9,277)		(8,912)		-		-
Amortization of net actuarial loss			7,687		5,384		206		136
Amortization of prior service costs			98		176		98		98
Amortization of transition obligations			-		-		206		206
	Net periodic benefit cost		11,376		9,500		1,493		1,463
Amount allocated to construction			(2,846)		(2,486)		(429)		(455)
Amount deferred to regulatory balancing account(1)			(4,162)		(2,659)		-		-
	Net amount charged to expense	$	4,368	$	4,355	$	1,064	$	1,008
(1) Effective January 1, 2011, the Oregon Public Utility Commission (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. Deferred pension expense balances include accrued interest at the utility’s authorized rate of return. See "Regulatory Accounting" in Note 2.

Employer Contributions to Company-Sponsored Defined Benefit Pension Plans

In the six months endedJune 30, 2012, we made cash contributions totaling $18.4 million to our qualified defined benefit pension plans. We also expect to make additional contributions up to $10 million to these qualified plans over the last six months of 2012, plus we expect to make ongoing benefit payments under our unfunded, non-qualified pension plans and other postretirement benefit plans.

Multiemployer Pension and Defined Contribution Plans

In addition to the company-sponsored defined benefit pension plans referred to above, we contribute to a multiemployer pension plan (EIN 94-6076144) for our utility's bargaining unit employees, known as the Western States Office and Professional Employees Pension Fund (Western States Plan), and to defined contribution plans for utility and non-utility employees. The costs of these plans are in addition to pension expense in the table above. Our contributions to the Western States Plan amounted to $0.2 million, for the six months endedJune 30, 2012 and 2011, respectively.  Under the terms of our current collective bargaining agreement, we can withdraw from the Western States Plan at any time. However, if we withdraw and the plan is underfunded, we could be assessed a withdrawal liability. We donot recognize a liability currently for the Western States Plan because we have made no decision to withdraw from the plan.

The Retirement K Savings Plan provided to our employees is a qualified defined contribution plan under Internal Revenue Code Section 401(k). Our contributions to this plan totaled $1.2 million and $1.3 million for the six months endedJune 30, 2012 and 2011, respectively.

See Note 9, in the 2011 Form 10-K for more information about these plans.