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, 2006		Years Ended December 31
			2005		2004		2003		2002
Fixed charges, as defined:
Interest expense	$	87,860	$	84,952	$	84,746	$	85,013	$	96,005
Amortization of debt expense and premium - net		7,690		7,762		8,301		7,972		8,861
Interest portion of rentals		1,867		2,394		2,443		4,452		6,140
Total fixed charges	$	97,417	$	95,108	$	95,490	$	97,437	$	111,006
Earnings, as defined:
Income from continuing operations	$	80,516	$	45,168	$	35,614	$	50,643	$	42,174
Add (deduct):
Income tax expense		44,218		25,861		21,592		35,340		34,849
Total fixed charges above		97,417		95,108		95,490		97,437		111,006
Total earnings	$	222,151	$	166,137	$	152,696	$	183,420	$	188,029
Ratio of earnings to fixed charges		2.28		1.75		1.60		1.88		1.69
Fixed charges and preferred dividend requirements:
Fixed charges above	$	97,417	$	95,108	$	95,490	$	97,437	$	111,006
Preferred dividend requirements (1)		—		—		—		1,910		4,387
Total	$	97,417	$	95,108	$	95,490	$	99,347	$	115,393
Ratio of earnings to fixed charges and preferred dividend requirements		2.28		1.75		1.60		1.85		1.63

(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.