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Avista Seeks to Increase Energy Conservation Efforts
Request for information issued to review cost-effective energy saving options

Spokane, Wash., March 27// -- Avista Utilities, an operating division of Avista Corp. (NYSE: AVA) has issued a request for information (RFI) to assist the company in identifying potential new energy conservation savings. The RFI is intended to generate ideas and suggestions from businesses, government agencies, environmental organizations and others with expertise in conservation measures.

Reducing demand for energy through conservation can also reduce the need to acquire new generation resources. Avista has been actively engaged in energy conservation since 1978. Since then conservation efforts have saved enough electricity to power approximately 3,300 homes per year. Efforts to conserve natural gas have resulted in saving the equivalent of the energy needed to heat some 800 homes per year.

"Avista manages a resource portfolio intended to stabilize prices and minimize risks for our customers while being good stewards of the environment," said Jon Powell, Avista partnership solutions manager. "This RFI is part of our ongoing commitment to seek cost-effective energy resources to serve our customers and to help them get the most value for their energy dollars."

Avista's most recent integrated resource plan (IRP) identifies the need to acquire 69 megawatts of electricity conservation by the year 2016. The resource plan also calls for an additional 400 megawatts of wind generation, 80 megawatts of other renewable resources, 52 megawatts of upgrades to existing generation facilities, and 250 megawatts of coal-based resources. A natural gas IRP is also being developed and is expected to identify additional conservation needs. Avista plans to develop an energy conservation request for proposals (RFP) to meet those goals.

The RFP will be based on conservation efforts identified through the RFI process. Avista's objective is to offer valuable energy alternatives to customers and secure the most economical resource options for its conservation portfolio. All proposals will be evaluated based on their cost and overall usefulness to Avista.

The entire RFI is available on Avista's web site at this link: www.avistautilities.com/resources/DSMRFI.asp

Responses are requested for receipt no later than April 24, 2006. Responses received after April 24 are unlikely to be incorporated into the development of the RFP.

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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