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, ------------------------------------------------------------
2005 2004 2003 2002 2001
--------- --------- -------- -------- --------
Fixed charges, as defined:
Interest expense $ 84,378 $ 84,746 $ 85,013 $ 96,005 $100,180
Amortization of debt expense
and premium - net 8,318 8,301 7,972 8,861 5,639
Interest portion of rentals 2,156 2,443 4,452 6,140 5,140
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Total fixed charges $ 94,852 $ 95,490 $ 97,437 $111,006 $110,959
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Earnings, as defined:
Income from continuing operations $ 33,119 $ 35,614 $ 50,643 $ 42,174 $ 68,241
Add (deduct):
Income tax expense 19,292 21,592 35,340 34,849 40,585
Total fixed charges above 94,852 95,490 97,437 111,006 110,959
--------- --------- -------- -------- --------
Total earnings $ 147,263 $ 152,696 $183,420 $188,029 $219,785
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Ratio of earnings to fixed charges 1.55 1.60 1.88 1.69 1.98
Fixed charges and preferred
dividend requirements:
Fixed charges above $ 94,852 $ 95,490 $ 97,437 $111,006 $110,959
Preferred dividend requirements (1) -- -- 1,910 4,387 3,878
--------- --------- -------- -------- --------
Total $ 94,852 $ 95,490 $ 99,347 $115,393 $114,837
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Ratio of earnings to fixed charges
and preferred dividend requirements 1.55 1.60 1.85 1.63 1.91
(1) Preferred dividend requirements have been grossed up to their pre-tax
level. Effective July 1, 2003, preferred dividends are included in
interest expense with the adoption of SFAS No. 150.