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Avista Begins Construction on Last Phase of New Transmission Line
$40 million upgrade project to serve regional growth - part of $120 million project

Spokane, Wash., April 27// -- Avista Utilities, an operating division of Avista Corp. (NYSE: AVA) will begin construction in early May of a 60 mile electric transmission line between Rosalia, Wash. and Lewiston, Idaho. The $40 million project will provide additional transmission capacity to serve growing demand for electricity in the region, and is part of a $120 million project started in 2003.

In addition to meeting the demand for electricity, the transmission line will improve service reliability for customers throughout the Palouse region. "Right now, the Shawnee substation has only a single source of electricity from the Lewiston area. If there is an outage on the line, power is affected in portions of Pullman, Colfax and surrounding communities," said Dave James, Avista transmission design manager. "The new line will provide an alternate source of power and ensure continued reliable service to the area."

In 2006, Avista will work with International Line Builders (ILB) to construct the first 34 miles of the project between Rosalia and Colfax, Wash. and on to Avista's substation at Shawnee (near Albion, Wash.). Construction will commence in early May and finish in mid-November. Since the line route follows an existing Avista transmission line, ILB will first remove wood poles and wires then install concrete reinforced foundations, erect tubular steel poles, and string new conductors. The remaining 26 miles between Rosalia and the Avista Substation at Benewah (near Latah, Wash.) will be constructed in 2007.

The new 230-kilovolt transmission line is designed to carry 500 megawatts but can supply 1,000 megawatts of electricity during periods of peak demand. One megawatt (one million watts) is enough power for about 650 homes.

The project is part of a larger capital infrastructure initiative that began in 2003 to meet the growing demand for the safe and reliable delivery of power to homes and businesses. It involves modernizing and increasing the capacity of Avista transmission lines and substations throughout the region. By the end of 2007, Avista will have invested over 120 million dollars in the Inland Northwest electric transmission system.

About Avista
Avista Corp. is an energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses. Avista Utilities is a company operating division that provides service to 338,000 electric and 297,000 natural gas customers in three western states. Avista's non-regulated subsidiaries include Avista Advantage and Avista Energy. Avista Corp.'s stock is traded under the ticker symbol "AVA." For more information about Avista, please visit www.avistacorp.com.

Avista Corp. and the Avista Corp. logo are trademarks of Avista Corporation.

CONTACTS:

Hugh Imhof

509-495-4264

hugh.imhof@avistacorp.com

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