SPOKANE, Wash., July 23 /PRNewswire-FirstCall/ -- Avista Energy, Avista Corp.'s (NYSE: AVA) electricity and natural gas marketing, trading and resource management subsidiary, today announced that it has renewed its $110 million, 364-day committed line of credit, extending the agreement expiration to July 22, 2005.

(Logo: http://www.newscom.com/cgi-bin/prnh/20040128/SFW031LOGO )

"We are pleased to renew our committed credit facility," said Dennis Vermillion, president of Avista Energy. "We believe this demonstrates recognition by our banks that Avista Energy continues to be a strong, focused performer in Western energy markets. The renewed credit facility will provide continued financial flexibility going forward and reinforce our strong relationship with our banking partners."

About Avista Energy

Avista Energy is an electricity and natural gas marketing, trading and resource management business, applying its energy marketing knowledge and expertise to physical assets in Western regional markets. Avista Energy controls or manages hydroelectric and gas-fired resources or assets for other companies in the West and also manages natural gas assets -- both pipelines and storage.

About Avista Corp.

Avista Corp. is an energy company involved in the generation, transmission and distribution of energy as well as other energy-related businesses. Avista Utilities is a company operating division that provides electric and natural gas service to customers in four western states. Avista's non-regulated affiliates include Avista Advantage and Avista Energy. Avista Corp.'s stock is traded under the ticker symbol "AVA." For more information about Avista, please visit www.avistacorp.com.

NOTE: Avista Corp. and the Avista Corp. logo are trademarks of Avista Corporation. All other trademarks mentioned in this document are the property of their respective owners.

This news release contains a forward-looking statement (within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended), regarding future financial flexibility. Such statement speaks only as of the date of the news release and is subject to a variety of risks and uncertainties, many of which are beyond the company's control and which could cause actual results to differ materially from the expectations. An important factor that could cause actual results to differ materially from the expectations is changes in Avista Corp.'s credit ratings. For a discussion of other material risks and uncertainties and other important factors that can affect Avista Energy's financial flexibility, please refer to the company's Annual Report on Form 10- K for the year ended Dec. 31, 2003, and the company's Form 10-Q for the first quarter ended March 31, 2004.

SOURCE  Avista Corp.
    -0-                             07/23/2004
    /CONTACT:  Media Jessie Wuerst, +1-509-495-8578, or
jessie.wuerst@avistacorp.com, or, Investors, Angela Teed, +1-509-495-2930, or
angela.teed@avistacorp.com, both of Avista Corp./
      /Photo:  http://www.newscom.com/cgi-bin/prnh/20040128/SFW031LOGO
             AP Archive:  http://photoarchive.ap.org
             PRN Photo Desk, photodesk@prnewswire.com/
    /Web site:  http://www.avistacorp.com /
    (AVA)

CO:  Avista Corp.; Avista Energy
ST:  Washington
IN:  OIL UTI
SU:

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