
				Receiving Regulatory Treatment
	Remaining Amortization Period			(1) Earning A Return		Not Earning A Return		(2) Pending Regulatory Treatment		Total 2011		Total 2010
Regulatory assets:
Investment in exchange power-net		2019		$	18,783	$	—	$	—	$	18,783	$	21,233
Regulatory assets for deferred income tax		(3	)		—		84,576		—		84,576		90,025
Regulatory assets for pensions and other postretirement benefit plans		(4	)		—		—		260,359		260,359		178,985
Current regulatory asset for utility derivatives		(5	)		—		69,685		—		69,685		48,891
Power deferrals		(3	)		—		—		—		—		18,305
Unamortized debt repurchase costs		(6	)		23,037		—		—		23,037		25,454
Regulatory asset for settlement with Coeur d'Alene Tribe		2059			52,463		—		—		52,463		54,056
Demand side management programs		(3	)		—		798		—		798		4,251
Montana lease payments		(3	)		5,096		—		—		5,096		6,134
Lancaster Plant 2010 net costs		2015			5,327		—		—		5,327		6,687
Regulatory asset for interest rate swaps		2012-2013			—		18,895		—		18,895		—
Non-current regulatory asset for utility derivatives		(5	)		—		40,345		—		40,345		15,724
Other regulatory assets		(3	)		5,097		3,875		5,341		14,313		16,248

Total regulatory assets				$	109,803	$	218,174	$	265,700	$	593,677	$	485,993


Regulatory Liabilities:
Oregon Senate Bill 408	2012		$	772	$	—	$	—	$	772	$	2,545
Natural gas deferrals	(3	)		12,140		—		—		12,140		22,074
Power deferrals	(3	)		13,692		—		—		13,692		—
Regulatory liability for utility plant retirement costs	(7	)		227,282		—		—		227,282		223,131
Income tax related liabilities	(3	)		—		18,607		—		18,607		28,353
Regulatory liability for Spokane Energy	(8	)		—		—		19,902		19,902		17,076
Other regulatory liabilities	(3	)		3,001		2,533		—		5,534		5,043

Total regulatory liabilities			$	256,887	$	21,140	$	19,902	$	297,929	$	298,222

(1)	Earning a return includes either interest on the regulatory asset/liability, or a return on the investment as a component of rate base or the weighted cost of capital.

(2)	Pending regulatory treatment includes regulatory assets and liabilities that have prior regulatory precedent.

(3)	Remaining amortization period varies depending on timing of underlying transactions.

(4)	As the Company has historically recovered and currently recovers its pension and other postretirement benefit costs related to its regulated operations in retail rates, the Company records a regulatory asset for that portion of its pension and other postretirement benefit funding deficiency.

(5)

The WUTC and the IPUC issued accounting orders authorizing Avista Utilities to offset commodity derivative assets or liabilities with a regulatory asset or liability. This accounting treatment is intended to defer the recognition of mark-to-market gains and losses on energy commodity transactions until the period of settlement. The orders provide for Avista Utilities to not recognize the unrealized gain or loss on utility derivative commodity instruments in the Consolidated Statements of Income. Realized gains or losses are recognized in the period of settlement, subject to approval for recovery through retail rates. Realized gains and losses, subject to regulatory approval, result in adjustments to retail rates through purchased gas cost adjustments, the ERM in Washington, the PCA mechanism in Idaho, and periodic general rates cases.

(6)

For the Company's Washington jurisdiction and for any debt repurchases beginning in 2007 in all jurisdictions, premiums paid to repurchase debt are amortized over the remaining life of the original debt that was repurchased or, if new debt is issued in connection with the repurchase, these costs are amortized over the life of the new debt. In the Company's other regulatory jurisdictions, premiums paid to repurchase debt prior to 2007 are being amortized over the average remaining maturity of outstanding debt when no new debt was issued in connection with the debt repurchase. These costs are recovered through retail rates as a component of interest expense.

(7)	This amount is dependent upon the cost of removal of underlying utility plant assets and the life of utility plant.

(8)	Consists of a regulatory liability recorded for the cumulative retained earnings of Spokane Energy that the Company will flow through regulatory accounting mechanisms in future periods.