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Avista Expedites Fuel Spill Cleanup
Groundwater is not affected, storage tanks to be taken out of service

Spokane, Wash., September 9// -- Avista Utilities has developed a rapid cleanup plan for a diesel fuel spill at its Northeast Combustion Turbine site. Two storage tanks will be removed from the contaminated area as soon as possible to help expedite excavation work, and efforts to remove all affected soil will take place around the clock until cleanup is completed.

It is estimated that some 30,000 gallons of fuel leaked into the soil below a secondary containment area at the site on Aug 7. Avista discovered the spill the following day. An investigation, supervised by the Washington Department of Ecology, determined that the fuel is present in the underlying soil to a maximum depth of 30-35 feet. Groundwater below the site is at a depth of 170 feet.

Although monitoring wells have shown no impact to groundwater from the spill, Avista plans to take additional steps to ensure there are no further threats to the water supply.

"We want to do everything we possibly can to protect the aquifer," said Scott Morris, Avista Utilities president. "That includes cleaning this up as quickly as possible and permanently taking the remaining fuel storage tanks at the site out of service."

Cenex Cooperative leases the site from Avista for diesel fuel storage. The fuel spill occurred when Cenex made an unscheduled delivery of diesel during the early morning hours of Sunday, Aug 7. The fuel was routed to a tank that was already nearly full and the extra fuel overflowed into a containment area

An independent professional inspected the containment area in June of this year. The area was found to be in satisfactory condition. However, the post-spill investigation showed fuel leaked through the concrete containment barrier.

Environmental cleanup experts are currently working at the site to prepare it for excavation. Cenex is removing all remaining fuel from the adjoining storage tanks. It is anticipated that remediation efforts will be completed within two weeks.

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 330,000 electric and 285,000 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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