EXHIBIT 12

AVISTA CORPORATION

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

Consolidated

(Thousands of Dollars)

	Years Ended December 31
	2007		2006		2005		2004		2003
Fixed charges, as defined:
Interest charges	$	80,095	$	88,426	$	84,952	$	84,746	$	85,013
Amortization of debt expense and premium - net		6,345		7,741		7,762		8,301		7,972
Interest portion of rentals		1,612		1,802		2,394		2,443		4,452
Total fixed charges	$	88,052	$	97,969	$	95,108	$	95,490	$	97,437
Earnings, as defined:
Income from continuing operations	$	38,475	$	72,941	$	44,988	$	35,453	$	50,643
Add (deduct):
Income tax expense		24,334		41,986		25,764		21,506		35,340
Total fixed charges above		88,052		97,969		95,108		95,490		97,437
Total earnings	$	150,861	$	212,896	$	165,860	$	152,449	$	183,420
Ratio of earnings to fixed charges		1.71		2.17		1.74		1.60		1.88
Fixed charges and preferred dividend requirements:
Fixed charges above	$	88,052	$	97,969	$	95,108	$	95,490	$	97,437
Preferred dividend requirements (1)		—		—		—		—		1,910
Total	$	88,052	$	97,969	$	95,108	$	95,490	$	99,347
Ratio of earnings to fixed charges and preferred dividend requirements		1.71		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.