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EXHIBIT 12

AVISTA CORPORATION

Computation of Ratio of Earnings to Fixed Charges

Consolidated

(Thousands of Dollars)

	Pro forma 6 Months ended June 30, 2009 (1)			6 Months ended June 30, 2009			Pro forma 2008 (1)
										Years Ended December 31
										2008			2007			2006			2005			2004
Fixed charges, as defined:
Interest charges	$	35,888		$	30,517		$	75,267		$	74,914		$	80,095		$	88,426		$	84,952		$	84,746
Amortization of debt expense and premium - net		2,842			2,842			4,673			4,673			6,345			7,741			7,762			8,301
Interest portion of rentals		1,715			1,715			1,601			1,601			1,612			1,802			2,394			2,443
Total fixed charges	$	40,445		$	35,074		$	81,541		$	81,188		$	88,052		$	97,969		$	95,108		$	95,490
Earnings, as defined:
Pre-tax income from continuing operations	$	85,425		$	90,796		$	120,029		$	120,382		$	63,061		$	114,927		$	70,752		$	57,206
Add (deduct):
Capitalized interest		(998	)		(998	)		(4,612	)		(4,612	)		(3,864	)		(2,934	)		(1,689	)		(1,393	)
Total fixed charges above		40,445			35,074			81,541			81,188			88,052			97,969			95,108			95,490
Total earnings	$	124,872		$	124,872		$	196,958		$	196,958		$	147,249		$	209,962		$	164,171		$	151,303
Ratio of earnings to fixed charges		3.09			3.56			2.42			2.43			1.67			2.14			1.73			1.58

(1) Because the proceeds from the issuance of the $250 million of First Mortgage Bonds will be used to repay indebtedness and the ratio of earnings to fixed charges would change by ten percent or more, pro forma ratios of earnings to fixed charges are presented.