

			Receiving Regulatory Treatment
	Remaining Amortization Period		(1) Earning A Return		Not Earning A Return		(2) Expected Recovery		Total 2013		Total 2012
Regulatory Assets:
Investment in exchange power-net	2019		$	13,883	$	—	$	—	$	13,883	$	16,333
Regulatory assets for deferred income tax	(3	)	71,421		—		—		71,421		79,406
Regulatory assets for pensions and other postretirement benefit plans	(4	)	—		156,984		—		156,984		306,408
Current regulatory asset for utility derivatives	(5	)	—		10,829		—		10,829		35,082
Unamortized debt repurchase costs	(6	)	19,417		—		—		19,417		21,635
Regulatory asset for settlement with Coeur d’Alene Tribe	2059		49,198		—		—		49,198		50,509
Demand side management programs	(3	)	—		9,576		—		9,576		2,579
Montana lease payments	(3	)	3,022		—		—		3,022		4,059
Lancaster Plant 2010 net costs	2015		2,607		—		—		2,607		3,967
Deferred maintenance costs	2016		—		5,813		—		5,813		6,312
Power deferrals	(3	)	5,065		—		—		5,065		—
Regulatory asset for interest rate swaps	2013		—		—		—		—		1,406
Non-current regulatory asset for utility derivatives	(5	)	—		23,258		—		23,258		25,218
Other regulatory assets	(3	)	4,002		4,683		4,597		13,282		13,717
Total regulatory assets			$	168,615	$	211,143	$	4,597	$	384,355	$	566,631
Regulatory Liabilities:
Natural gas deferrals	(3	)	$	12,075	$	—	$	—	$	12,075	$	6,917
Power deferrals	(3	)	17,904		—		—		17,904		27,323
Regulatory liability for utility plant retirement costs	(7	)	242,850		—		—		242,850		234,128
Income tax related liabilities	(3	)	—		9,203		—		9,203		17,206
Regulatory liability for interest rate swaps	2014-2015		—		33,543		—		33,543		7,265
Regulatory liability for Spokane Energy	(8	)	—		—		25,046		25,046		21,488
Other regulatory liabilities	(3	)	7,249		6,411		—		13,660		4,316
Total regulatory liabilities			$	280,078	$	49,157	$	25,046	$	354,281	$	318,643


(1)	Earning a return includes either interest on the regulatory asset/liability or a return on the investment as a component of rate base at the allowed rate of return.


(2)	Expected recovery is pending regulatory treatment including regulatory assets and liabilities that have prior regulatory precedence.


(3)	Remaining amortization period varies depending on timing of underlying transactions.


(4)	As the Company has historically recovered and currently recovers its pension and other postretirement benefit costs related to its regulated operations in retail rates, the Company records a regulatory asset for that portion of its pension and other postretirement benefit funding deficiency.

(5)

The UTC and the IPUC issued accounting orders authorizing Avista Corp. to offset commodity derivative assets or liabilities with a regulatory asset or liability. This accounting treatment is intended to defer the recognition of mark-to-market gains and losses on energy commodity transactions until the period of settlement. The orders provide for Avista Corp. to not recognize the unrealized gain or loss on utility derivative commodity instruments in the Consolidated Statements of Income. Realized gains or losses are recognized in the period of settlement, subject to approval for recovery through retail rates. Realized gains and losses, subject to regulatory approval, result in adjustments to retail rates through purchased gas cost adjustments, the ERM in Washington, the PCA mechanism in Idaho, and periodic general rates cases.

(6)

For the Company’s Washington jurisdiction and for any debt repurchases beginning in 2007 in all jurisdictions, premiums paid to repurchase debt are amortized over the remaining life of the original debt that was repurchased or, if new debt is issued in connection with the repurchase, these costs are amortized over the life of the new debt. In the Company’s other regulatory jurisdictions, premiums paid to repurchase debt prior to 2007 are being amortized over the average remaining maturity of outstanding debt when no new debt was issued in connection with the debt repurchase. These costs are recovered through retail rates as a component of interest expense.


(7)	This amount is dependent upon the cost of removal of underlying utility plant assets and the life of utility plant.


(8)	Consists of a regulatory liability recorded for the cumulative retained earnings of Spokane Energy that the Company will flow through regulatory accounting mechanisms in future periods.