1 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 March 31, ----------------------------------------------- 2001 2000 1999 1998 1997 ------------- -------- -------- -------- -------- Fixed charges, as defined: Interest on long-term debt $ 72,001 $ 65,314 $ 62,032 $ 66,218 $ 63,413 Amortization of debt expense and premium - net 3,568 3,409 3,044 2,859 2,862 Interest portion of rentals 4,320 4,324 4,645 4,301 4,354 -------- -------- -------- -------- -------- Total fixed charges $ 79,889 $ 73,047 $ 69,721 $ 73,378 $ 70,629 ======== ======== ======== ======== ======== Earnings, as defined: Net income from continuing ops $110,557 $ 91,679 $ 26,031 $ 78,139 $114,797 Add (deduct): Income tax expense 86,073 73,461 16,740 43,335 61,075 Total fixed charges above 79,889 73,047 69,721 73,378 70,629 -------- -------- -------- -------- -------- Total earnings $276,519 $238,187 $112,492 $194,852 $246,501 ======== ======== ======== ======== ======== Ratio of earnings to fixed charges 3.46 3.26 1.61 2.66 3.49