Exhibit 12

AVISTA CORPORATION

Computation of Ratio of Earnings to Fixed Charges

Consolidated

(Thousands of Dollars)

	Nine months
	ended			Years Ended December 31
	September 30, 2011			2010			2009			2008			2007			2006
Fixed charges, as defined:
Interest charges	$	51,971		$	72,010		$	61,361		$	74,914		$	80,095		$	88,426
Amortization of debt expense and premium - net		3,649			4,414			5,673			4,673			6,345			7,741
Interest portion of rentals		1,421			2,027			1,874			1,601			1,612			1,802
Total fixed charges	$	57,041		$	78,451		$	68,908		$	81,188		$	88,052		$	97,969
Earnings, as defined:
Pre-tax income from continuing operations	$	118,505		$	146,105		$	134,971		$	120,382		$	63,061		$	114,927
Add (deduct):
Capitalized interest		(2,209	)		(298	)		(545	)		(4,612	)		(3,864	)		(2,934	)
Total fixed charges above		57,041			78,451			68,908			81,188			88,052			97,969
Total earnings	$	173,337		$	224,258		$	203,334		$	196,958		$	147,249		$	209,962
Ratio of earnings to fixed charges		3.04			2.86			2.95			2.43			1.67			2.14