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,
		2003		2002		2001		2000		1999
Fixed charges, as defined:
	Interest expense	$	91,517	$	96,475	$	100,841	$	64,846	$	61,703
	Amortization of debt expense and premium - net		8,431		8,861		5,639		3,409		3,044
	Interest portion of rentals		6,179		6,140		5,140		4,324		4,645
	Total fixed charges	$	106,127	$	111,476	$	111,620	$	72,579	$	69,392
Earnings, as defined:
	Income from continuing operations	$	36,113	$	34,310	$	59,605	$	101,055	$	28,662
	Add (deduct):
	Income tax expense		30,955		29,994		34,386		76,998		16,897
	Total fixed charges above		106,127		111,476		111,620		72,579		69,392
	Total earnings	$	173,195	$	175,780	$	205,611	$	250,632	$	114,951
Ratio of earnings to fixed charges			1.63		1.58		1.84		3.45		1.66
Fixed charges and preferred dividend requirements:
	Fixed charges above	$	106,127	$	111,476	$	111,620	$	72,579	$	69,392
	Preferred dividend requirements (1)		4,405		4,502		3,835		41,820		34,003
	Total	$	110,532	$	115,978	$	115,455	$	114,399	$	103,395
Ratio of earnings to fixed charges and preferred dividend requirements			1.57		1.52		1.78		2.19		1.11

(1) Preferred dividend requirements have been grossed up to their pre-tax level.