20180126Avista to Staff_DR_144(H1).docx

HYDRO ONE LIMITED
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:OREGONDATE PREPARED:10/02/2017
CASE NO.:UM 1897WITNESS:Mayo Schmidt
REQUESTER:PUC StaffRESPONDER:Adele PantusaTYPE:Data RequestDEPT:Law
REQUEST NO.:Staff-144(H1)TELEPHONE:[phone]EMAIL:[e-mail]: Please provide quantitative detail of the financial status and Hydro One’s assessment of Avista’s pension and post retirement medical funds.RESPONSE:All dollar figures are stated in U.S. dollars.
The January 2017 actuarial valuation indicates the qualified pension plan is under fundedby $17.7 million, based on comparing the fair value of plan assets to the accumulated benefit obligation. Comparing the fair value of plan assets to the projected benefit obligation, the plan is under funded by $96.6 million.The estimated contributions are $22 million for 2017 through 2021.
The January 2017 actuarial valuation indicates the retiree medical and life insurance plans (RMLIP) are under funded by $93.3 million, based on comparing the fair value of plan assets to the accumulated postretirement benefit obligation. The Company does not currently plan to make contributions to the plan. Annual Company cash payments are tied to the benefits paid. Payments under the RMLIP are expected to be $6.7 million in 2017. The January 2017 actuarial report indicates the retiree health reimbursement plan (RHRP) is under funded by $5.8 million, based on the accumulated postretirement benefit obligation. The plan does not have any assets and is not funded in advance.  Annual Company cash payments are tied to the benefits paid. Payments under the RHRP are expected to be $0.4 million in 2017.