Avista (AVA) 10-Q 2010 Q2 Quarterly report

Exhibit 12

AVISTA CORPORATION

Computation of Ratio of Earnings to Fixed Charges

Consolidated

(Thousands of Dollars)

	Six  months ended June 30, 2010			Years Ended December 31
				2009			2008			2007			2006			2005
Fixed charges, as defined:
Interest charges	$	36,352		$	61,361		$	74,914		$	80,095		$	88,426		$	84,952
Amortization of debt expense and premium - net		2,181			5,673			4,673			6,345			7,741			7,762
Interest portion of rentals		810			1,874			1,601			1,612			1,802			2,394
Total fixed charges	$	39,343		$	68,908		$	81,188		$	88,052		$	97,969		$	95,108
Earnings, as defined:
Pre-tax income from continuing operations	$	89,066		$	134,971		$	120,382		$	63,061		$	114,927		$	70,752
Add (deduct):
Capitalized interest		(694	)		(545	)		(4,612	)		(3,864	)		(2,934	)		(1,689	)
Total fixed charges above		39,343			68,908			81,188			88,052			97,969			95,108
Total earnings	$	127,715		$	203,334		$	196,958		$	147,249		$	209,962		$	164,171
Ratio of earnings to fixed charges		3.25			2.95			2.43			1.67			2.14			1.73