EXHIBIT 12

AVISTA CORPORATION

Computation of Ratio of Earnings to Fixed Charges and Preferred Dividend Requirements

Consolidated

(Thousands of Dollars)

	12 months ended September 30, 2005		Years Ended December 31
			2004		2003		2002		2001
Fixed charges, as defined:
Interest expense	$	84,354	$	84,746	$	85,013	$	96,005	$	100,180
Amortization of debt expense and premium - net		7,982		8,301		7,972		8,861		5,639
Interest portion of rentals		1,584		2,443		4,452		6,140		5,140
Total fixed charges	$	93,920	$	95,490	$	97,437	$	111,006	$	110,959
Earnings, as defined:
Income from continuing operations	$	42,336	$	35,614	$	50,643	$	42,174	$	68,241
Add (deduct):
Income tax expense		23,487		21,592		35,340		34,849		40,585
Total fixed charges above		93,920		95,490		97,437		111,006		110,959
Total earnings	$	159,743	$	152,696	$	183,420	$	188,029	$	219,785
Ratio of earnings to fixed charges		1.70		1.60		1.88		1.69		1.98
Fixed charges and preferred dividend requirements:
Fixed charges above	$	93,920	$	95,490	$	97,437	$	111,006	$	110,959
Preferred dividend requirements (1)		—		—		1,910		4,387		3,878
Total	$	93,920	$	95,490	$	99,347	$	115,393	$	114,837
Ratio of earnings to fixed charges and preferred dividend requirements		1.70		1.60		1.85		1.63		1.91

(1) Preferred dividend requirements have been grossed up to their pre-tax level. Effective July 1, 2003, preferred dividends are included in interest expense with the adoption of SFAS No. 150.