EXHIBIT 12
AVISTA CORPORATION
Computation of Ratio of Earnings to Fixed Charges and
Preferred Dividend Requirements
Consolidated
(Thousands of Dollars)
12 months
ended Years Ended December 31,
March 31, --------------------------------------------
2002 2001 2000 1999 1998
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Fixed charges, as defined:
Interest expense $107,198 $100,841 $ 64,846 $ 61,703 $ 66,158
Amortization of debt expense
and premium - net 7,141 5,639 3,409 3,044 2,859
Interest portion of rentals 5,285 5,140 4,324 4,645 4,301
-------- -------- -------- -------- --------
Total fixed charges $119,624 $111,620 $ 72,579 $ 69,392 $ 73,318
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Earnings, as defined:
Income from continuing operations $ 43,004 $ 59,605 $101,055 $ 28,662 $ 78,316
Add (deduct):
Income tax expense 24,399 34,386 76,998 16,897 43,430
Total fixed charges above 119,624 111,620 72,579 69,392 73,318
-------- -------- -------- -------- --------
Total earnings $187,027 $205,611 $250,632 $114,951 $195,064
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Ratio of earnings to fixed charges 1.56 1.84 3.45 1.66 2.66
Fixed charges and preferred dividend
requirements:
Fixed charges above $119,624 $111,620 $ 72,579 $ 69,392 $ 73,318
Preferred dividend requirements(1) 3,812 3,835 41,820 34,003 13,057
-------- -------- -------- -------- --------
Total $123,436 $115,455 $114,399 $103,395 $ 86,375
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Ratio of earnings to fixed charges
and preferred dividend requirements 1.52 1.78 2.19 1.11 2.26
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(1) Preferred dividend requirements have been grossed up to their pre-tax
level.