EXHIBIT 12

AVISTA CORPORATION

Computation of Ratio of Earnings to Fixed Charges

Consolidated

(Thousands of Dollars)

	12 months ended September 30, 2008			Years Ended December 31
				2007			2006			2005			2004
Fixed charges, as defined:
Interest charges	$	77,552		$	80,095		$	88,426		$	84,952		$	84,746
Amortization of debt expense and premium - net		5,063			6,345			7,741			7,762			8,301
Interest portion of rentals		1,551			1,612			1,802			2,394			2,443
Total fixed charges	$	84,166		$	88,052		$	97,969		$	95,108		$	95,490
Earnings, as defined:
Income from continuing operations	$	70,208		$	38,475		$	72,941		$	44,988		$	35,614
Add (deduct):
Income tax expense		45,742			24,334			41,986			25,764			21,592
Capitalized interest		(2,884	)		(3,864	)		(2,934	)		(1,689	)		(1,393	)
Total fixed charges above		84,166			88,052			97,969			95,108			95,490
Total earnings	$	197,232		$	146,997		$	209,962		$	164,171		$	151,303
Ratio of earnings to fixed charges		2.34			1.67			2.14			1.73			1.58