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EXHIBIT 12
AVISTA CORPORATION
Computation of Ratio of Earnings to Fixed Charges and
Preferred Dividend Requirements
Consolidated
(Thousands of Dollars)
12 Mos. Ended Years Ended December 31
June 30, --------------------------------------------
1999 1998 1997 1996 1995
------------- -------- -------- -------- --------
Fixed charges, as defined:
Interest on long-term debt $ 66,760 $ 66,218 $ 63,413 $ 60,256 $ 55,580
Amortization of debt expense
and premium - net 1,605 2,859 2,862 2,998 3,441
Interest portion of rentals 4,348 4,301 4,354 4,311 3,962
-------- -------- -------- -------- --------
Total fixed charges $ 72,714 $ 73,378 $ 70,629 $ 67,565 $ 62,983
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Earnings, as defined:
Net income from continuing ops $ 58,162 $ 78,139 $114,797 $ 83,453 $ 87,121
Add (deduct):
Income tax expense 26,569 43,335 61,075 49,509 52,416
Total fixed charges above 72,714 73,378 70,629 67,565 62,983
-------- -------- -------- -------- --------
Total earnings $157,445 $194,852 $246,501 $200,527 $202,520
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Ratio of earnings to fixed charges 2.17 2.66 3.49 2.97 3.22
Fixed charges and preferred dividend
requirements:
Fixed charges above $ 72,714 $ 73,378 $ 70,629 $ 67,565 $ 62,983
Preferred dividend requirements(2) 25,574 13,057 8,261 12,711 14,612
-------- -------- -------- -------- --------
Total $ 98,288 $ 86,435 $ 78,890 $ 80,276 $ 77,595
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Ratio of earnings to fixed charges
and preferred dividend requirements 1.60 2.25 3.12 2.50 2.61
(1) Preferred dividend requirements have been grossed up to their pre-tax level.