Jan32002_letter_rl-tc.doc

January 3, 2002

Kelly Norwood
Vice President – Energy Resources
Avista Corporation
E. 1411 Mission Avenue
PO Box 3727
Spokane, WA 99220

RE: Potlatch Corporation (Lewiston Facility)
Centralia Sale Proceeds

Dear Mr. Norwood:

On December 31, 2001, the January 3, 1991 Electric Service and Purchase Agreement between Avista and Potlatch expired. This letter is to affirm Commission Staff’s understanding that the receipt by Potlatch of a share of the remaining customer portion of Centralia sale proceeds will result in a shortening of the refund period.

Sincerely,

Randy Lobb
Administrator-Utilities
Idaho Public Utilities Commission

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