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Avista and BLM Agree to Relicensing Terms
Agreement provides new funding for recreation and aesthetics

Spokane, Wash., July 12 // -- Avista and the U.S. Department of Interior, Bureau of Land Management (BLM) have signed a Settlement Agreement, in which both parties agree to specific measures for enhanced recreation opportunities in the vicinity of the Post Falls Hydroelectric Project. The measures will also become part of a new operating license for the Post Falls Project if approved by the Federal Energy Regulatory Commission.

BLM has been an active participant in the collaborative relicensing effort undertaken by Avista since 2002. Numerous studies and discussions have led to a set of proposed conditions that would apply to a new operating license.

Avista will cooperate with BLM to develop or enhance water based recreation facilities on Coeur d'Alene Lake and its tributaries. The agreement calls for Avista to spend up to $200,000 on developing new BLM facilities plus an additional $33,000 per year to supplement BLM's operation and maintenance costs over the term of the new license.

According to Eric Thomson, acting district manager for the BLM, "BLM, Avista, and the rest of the stakeholders have invested a tremendous amount of time in the relicensing process. We're pleased that our agreement with Avista will result in tangible benefits for Coeur d'Alene Lake users beginning in 2007, and will assist BLM in maintaining our existing public facilities on the lake."

Avista's operating license expires in July of 2007. The license application for Post Falls was filed in August 2005. The application addresses the issues identified and studied in the process.

"Avista has proposed a set of actions that protect and enhance natural resources associated with the project, while ensuring sustainable clean energy production," said Bruce Howard, Avista relicensing manager. "We believe the conditions we've proposed are supported by a majority of stakeholders."

FERC is currently in the process of reviewing Avista's license application and proposed terms and conditions. FERC has also called for terms and conditions from resource agencies, tribes and others, which are due by July 17.

CONTACTS:

Hugh Imhof

509-495-4264

hugh.imhof@avistacorp.com

Jason Lang

509-495-2930

jason.lang@avistacorp.com

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