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Avista Re-Evaluates Broadband Project
Mutual agreement with vendor to end contract discussions

SPOKANE, Wash. – Feb. 9, 2006, 9:00 a.m. PST: Avista Utilities will re-evaluate its plans for deployment of a broadband-over-power-line (BPL) pilot project in north Idaho. The company and a prospective BPL vendor have mutually agreed to end contract negotiations for a test deployment.

The decision to reassess the project comes at a time when many changes are taking place in the BPL industry. “We want to step back and look at how the industry is evolving in terms of technology and the business model,�? said Avista Market Solutions Manager Dave Heyamoto. “By taking a little more time with this, both our customers and the utility will ultimately benefit.�?

BPL is a technology that allows users to receive broadband Internet service via the existing electric power distribution system. Utilities can also make use of the technology to monitor and maintain various elements of the distribution system.

Avista has not yet set a timeline for any future BPL projects.

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.

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Media: Hugh Imhof (509) 495-4264, hugh.Imhof@avistacorp.com Avista 24/7 Media Access (509) 495-4174

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