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Avista Director Jessie Knight Leaves Board
Accepts new position with Sempra Energy

Spokane, Wash., July 7// -- Jessie J. Knight, Jr. has resigned from Avista's board of directors after seven years of service. Knight has accepted a new position as an executive officer of Sempra Energy, an energy services holding company based in San Diego. Knight will assume the position of executive vice president of external affairs for Sempra Energy, overseeing the company's relationships with local, state, federal and international governmental and community organizations, as well as communications.

Knight was elected to the Avista Board of Directors on May 14, 1999, and served until June 22, 2006. He wrote in a letter of resignation that he deeply regrets having to leave his board position. "I have truly enjoyed my years as a board member of one of this country's best run companies."

Avista Board Chairman and Chief Executive Officer Gary Ely praised Knight for his contributions to the company's ongoing progress. "Jessie has a tremendous amount of experience and knowledge about our industry. He has been a great asset through some difficult times. Although we are sorry to see him go, we wish him the greatest success in his new endeavors," said Ely.

Most recently Knight served as president and chief executive officer of the San Diego Regional Chamber of Commerce. From 1993 through 1998 Knight served as Commissioner of the California Public Utilities Commission. He was the Vice President of Marketing for the San Francisco Chronicle and San Francisco Examiner newspapers for seven years. He spent ten years in senior management positions in marketing and finance for the Dole Foods Company.

Knight was a member of California Governor Arnold Schwarzenegger's Transition Committee, and currently sits on the boards of Alaska Air Group, Environmental Power Corp. and the privately held San Diego Padres Baseball Club. He is former Vice Chairman of the World Affairs Council of Northern California, and is presently a standing member of the Council on Foreign Relations.

Avista has not yet selected a replacement for Knight on its board of directors.

Avista 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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