Avista Receives Commission Approval in Idaho Electric and Natural Gas General Rate Requests

SPOKANE, WA — (Marketwire) — 09/30/11 — Avista (NYSE: AVA) received approval today from the Idaho Public Utilities Commission (IPUC) on the all-party settlement agreement, concluding the company–s electric and natural gas rate request. Avista made the requests to the IPUC on followed by an all-party settlement agreement on . New customer rates will become effective Oct. 1, 2011.

“We are pleased the Commission recognized the need for our rates to reflect the increased costs necessary to operate and maintain our energy system. Making the effective dates for the multiple filings coincide for October 1 means our customers will actually receive a decrease in their electric rates,” said Dennis Vermillion, Avista Corp. senior vice president and president of Avista Utilities.

The new retail rates from the settlement agreement reflect an overall 1.1 percent increase in electric base rates, providing $2.8 million in additional annual electric revenue. Base natural gas rates will increase by an overall 1.6 percent with $1.1 million in additional annual natural gas revenue.

In separate actions, the IPUC also approved annual electric and natural gas rate adjustments that pass through actual changes in expenses or credits and have no impact on company earnings. The adjustments will offset all or a portion of the bill impact of the base rate increase to customers.

A residential customer using an average 956 kilowatt-hours a month will see a $1.79 per month decrease, or 2.1 percent, for a revised monthly bill of $82.02. A residential natural gas customer using an average of 62 therms would see a $0.20 per month increase, or 0.3 percent, for a revised monthly bill of $60.96. Avista serves over 122,000 electric and more than 74,000 natural gas customers in Idaho.

The approval also includes an increase in annual funding for the Community Action Partnership Association of Idaho (CAPAI) from $40,000 to $50,000 for outreach and education activities for low income customers. This funding is in addition to the current $700,000 for low-income weatherization programs.

Information on energy assistance programs and energy efficiency rebates and incentives for customers is available at .

Avista Corp. is an energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses. Avista Utilities is our operating division that provides electric service to 357,000 customers and natural gas to 317,000 customers. Our service territory covers 30,000 square miles in eastern Washington, northern Idaho and parts of southern and eastern Oregon, with a population of 1.5 million. Avista–s primary, non-regulated subsidiary is Advantage IQ. Our stock is traded under the ticker symbol “AVA.” For more information about Avista, please visit .

This news release contains forward-looking statements regarding the company–s current expectations. Forward-looking statements are all statements other than historical facts. Such statements speak only as of the date of the news release and are subject to a variety of risks and uncertainties, many of which are beyond the company–s control, which could cause actual results to differ materially from the expectations. These risks and uncertainties include, in addition to those discussed herein, all of the factors discussed in the company–s Annual Report on Form 10-K for the year ended Dec. 31, 2010 and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2011.

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