EXHIBIT 12

AVISTA CORPORATION

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

Consolidated

(Thousands of Dollars)

	12 months ended June 30, 2007		Years Ended December 31
			2006		2005		2004		2003
Fixed charges, as defined:
Interest expense	$	85,150	$	88,426	$	84,952	$	84,746	$	85,013
Amortization of debt expense and premium - net		7,157		7,741		7,762		8,301		7,972
Interest portion of rentals		1,686		1,802		2,394		2,443		4,452
Total fixed charges	$	93,993	$	97,969	$	95,108	$	95,490	$	97,437
Earnings, as defined:
Income from continuing operations	$	56,187	$	72,941	$	44,988	$	35,453	$	50,643
Add (deduct):
Income tax expense		31,877		41,986		25,764		21,506		35,340
Total fixed charges above		93,993		97,969		95,108		95,490		97,437
Total earnings	$	182,057	$	212,896	$	165,860	$	152,449	$	183,420
Ratio of earnings to fixed charges		1.94		2.17		1.74		1.60		1.88
Fixed charges and preferred dividend requirements:
Fixed charges above	$	93,993	$	97,969	$	95,108	$	95,490	$	97,437
Preferred dividend requirements (1)		—		—		—		—		1,910
Total	$	93,993	$	97,969	$	95,108	$	95,490	$	99,347
Ratio of earnings to fixed charges and preferred dividend requirements		1.94		2.17		1.74		1.60		1.85

(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.