Settlement Agreement Reached on Avista's Power-Cost Recovery Plan

Apr 30, 2001, 01:00 ET from Avista Corp.

    SPOKANE, Wash., April 30 /PRNewswire/ -- Avista Corp. (NYSE:   AVA), the
 staff of the Washington Utilities and Transportation Commission (WUTC), the
 Public Counsel Section of the Washington Attorney General's Office and the
 Industrial Customers of Northwest Utilities have reached an agreement
 regarding Avista's power-cost deferral and recovery plan. The parties,
 representing all participants in the proceeding, have requested that the
 commission approve the settlement on or before May 25.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990629/AVALOGO )
     The settlement agreement calls for extension of the Washington deferral
 accounting mechanism through February 2003, which coincides with Avista's cost
 recovery proposal. In 2002, Avista expects to be in a surplus power position,
 with the benefits of surplus power sales expected to offset the power costs
 that the company has been deferring since July 2000. Avista anticipates
 reducing the power-cost deferral balance to zero by the end of February 2003.
 The current deferral mechanism allows Avista Utilities to defer certain
 electric power costs incurred to serve customer loads.
     If Avista is successful in carrying out its plan, the company will fully
 recover its deferred costs without a price increase to its retail customers.
 The ability to fully offset the deferred costs, however, is based on a number
 of assumptions including, but not limited to, stream flow conditions, thermal
 plant performance, level of retail loads, and wholesale market prices during
 the deferral period.
     "The collaborative settlement agreement is positive for our customers, our
 company and our state. We've worked extremely hard to shield our customers
 from the substantial electric rate increases that others throughout the region
 are experiencing," said Gary G. Ely, Avista Corp. president and chief
 executive officer. "The commission staff and all parties are to be
 congratulated for their efforts in pursuing the settlement, and we are
 encouraged that all the parties involved support our plan and view the
 agreement as being in the public interest."
     Avista Corp. is an energy, information and technology company whose
 utility and subsidiary operations focus on delivering superior products and
 providing innovative solutions to business and residential customers
 throughout North America.
     Avista Corp.'s affiliate companies include Avista Utilities, which
 operates the company's electric and natural gas generation, transmission and
 distribution business. Avista's non-regulated businesses include Avista
 Advantage, Avista Labs, Avista Communications, Avista Energy, Avista Energy
 Canada, Ltd., Avista Power, and Avista Ventures. Avista Corp.'s stock is
 traded under the ticker symbol "AVA." For more information about Avista Corp.
 and its affiliate businesses, visit the corporate website at
 www.avistacorp.com.
     NOTE:  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 10-K for the year ended Dec. 31, 2000.
 
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SOURCE Avista Corp.
    SPOKANE, Wash., April 30 /PRNewswire/ -- Avista Corp. (NYSE:   AVA), the
 staff of the Washington Utilities and Transportation Commission (WUTC), the
 Public Counsel Section of the Washington Attorney General's Office and the
 Industrial Customers of Northwest Utilities have reached an agreement
 regarding Avista's power-cost deferral and recovery plan. The parties,
 representing all participants in the proceeding, have requested that the
 commission approve the settlement on or before May 25.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19990629/AVALOGO )
     The settlement agreement calls for extension of the Washington deferral
 accounting mechanism through February 2003, which coincides with Avista's cost
 recovery proposal. In 2002, Avista expects to be in a surplus power position,
 with the benefits of surplus power sales expected to offset the power costs
 that the company has been deferring since July 2000. Avista anticipates
 reducing the power-cost deferral balance to zero by the end of February 2003.
 The current deferral mechanism allows Avista Utilities to defer certain
 electric power costs incurred to serve customer loads.
     If Avista is successful in carrying out its plan, the company will fully
 recover its deferred costs without a price increase to its retail customers.
 The ability to fully offset the deferred costs, however, is based on a number
 of assumptions including, but not limited to, stream flow conditions, thermal
 plant performance, level of retail loads, and wholesale market prices during
 the deferral period.
     "The collaborative settlement agreement is positive for our customers, our
 company and our state. We've worked extremely hard to shield our customers
 from the substantial electric rate increases that others throughout the region
 are experiencing," said Gary G. Ely, Avista Corp. president and chief
 executive officer. "The commission staff and all parties are to be
 congratulated for their efforts in pursuing the settlement, and we are
 encouraged that all the parties involved support our plan and view the
 agreement as being in the public interest."
     Avista Corp. is an energy, information and technology company whose
 utility and subsidiary operations focus on delivering superior products and
 providing innovative solutions to business and residential customers
 throughout North America.
     Avista Corp.'s affiliate companies include Avista Utilities, which
 operates the company's electric and natural gas generation, transmission and
 distribution business. Avista's non-regulated businesses include Avista
 Advantage, Avista Labs, Avista Communications, Avista Energy, Avista Energy
 Canada, Ltd., Avista Power, and Avista Ventures. Avista Corp.'s stock is
 traded under the ticker symbol "AVA." For more information about Avista Corp.
 and its affiliate businesses, visit the corporate website at
 www.avistacorp.com.
     NOTE:  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 10-K for the year ended Dec. 31, 2000.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X44251265
 
 SOURCE  Avista Corp.

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