20080728Press Release.pdf

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Contact:
Avista 24/7 Media Access [phone]
Media: Jessie Wuerst [phone], jessie.wuerst(ëavistacorp.com
Investors: Jason Lang [phone], jason.langcæavistacorp.com
Avista Requests Increase in Electric Power Cost Adjustment
Surcharge in Idaho
Annual adjustment reflects higher costs for power
SPOKANE, Wash. July 28,2008: Avista (NYSE:AVA) today filed a request with the Idaho
Public Utilities Commission (IPUC) to increase its existing electric power cost adjustment (PCA)
surcharge by an overall average of about 5.9 percent, or $12.2 milion, to be effective
Oct. 1, 2008. Avista makes no profit from surcharge revenues and is required to absorb the first
10 percent of additional power costs.
The annual PCA adjustment seeks to recover the difference between Avista's actual cost of
generating and purchasing electric power to serve its 120,000 Idaho customers and the cost
currently included in customer rates. The proposed surcharge is designed to recover additional
power costs that the company incurred during the 12-month period ended June 30, 2008.
If approved by the IPUC, a residential customer using an average of 1,000 kilowatt-hours per
month could expect an increase of $3.43 per month, from $63.44 to $66.87, or about a 5.4
percent increase over current residential rates. The actual percentage increase wil vary by
customer class and wil depend on how much energy a customer uses.
"The increased power costs reflect the higher cost of natural gas that we use to generate
electricity, as well as a late spring run-off this year, which decreased the amount of energy from
low-cost hydro power that we use to serve our customers," said Kelly Norwood, Avista vice
president of rates and regulation. "We encourage customers to continue to partner with us in
keeping energy costs as low as possible by taking additional measures to use energy more
effciently. "
Avista offers a number of energy effciency rebates and incentive programs, as well as billng
options to help customers manage their energy bilL. In 2007, as a result of these programs,
Avista customers saved more than 71 milion kilowatt hours of electricity (enough to power
6,000 homes) and over 1.5 millon therms of natural gas (enough to provide space and water
heating to approximately 1,800 homes). In addition, more than $9.4 milion was returned to
customers in 2007 through Avista's energy rebates and incentives programs. Avista's Comfort
Level biling option gives customers the opportunity to smooth seasonal energy bil highs and
lows by averaging energy bills over 12 months.
For information on billng options, energy assistance programs, rebates and incentives visit
www.avistautilities.com .
About Avista Corp.
Avista Corp. is an energy company involved in the production, transmission and
distribution of energy as well as other energy-related businesses. Avista Utilties is our
operating division that provides service to 352,000 electric and 311,000 natural gas
customers in three Western states. Avista's primary, non-regulated subsidiary is
Advantage ia, Our stock is traded under the ticker symbol "AVA." For more
information about Avista, please visit ww.avistacorp.com. Avista Corp. and the Avista
Corp. logo are trademarks of Avista Corporation. All other trademarks mentioned in this
document are the property of their respective owners.
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 1 O-K for the year ended
Dec. 31, 2007, and the Quarterly Report on Form 10-Q for the quarter ended March 31,
2008.
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