Approval of agreement resolves all remaining issues in case

SPOKANE, Wash., April 14 /PRNewswire-FirstCall/ -- The Federal Energy Regulatory Commission (FERC) has approved an agreement that resolves all issues in the investigation of the energy trading practices of Avista Corp. (NYSE: AVA) and its subsidiary Avista Energy during 2000 and 2001.

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

FERC Administrative Law Judge Curtis L. Wagner Jr. certified the agreement to the FERC in July of 2003 after reviewing FERC Trial Staff findings. Judge Wagner concluded that "there are no unresolved issues of material fact and that the record is sufficient for the commission to make a determination on the merits of the settlement..."

After an extensive investigation, the FERC Trial Staff concluded the following:

    -- FERC Trial Staff's investigation found no evidence that any executives
       or employees of Avista Utilities or Avista Energy knowingly engaged in
       or facilitated any improper trading strategy;
    -- FERC Trial Staff's investigation found no evidence that Avista
       Utilities or Avista Energy engaged in any efforts to manipulate the
       western energy markets during 2000 and 2001; and
    -- The responses of Avista Utilities and Avista Energy to the FERC Trial
       Staff investigation indicated an overall cooperative attitude and
       response. FERC Trial Staff found that Avista Utilities and Avista
       Energy did not withhold relevant information from the FERC's inquiry
       into the western energy markets for 2000 and 2001.

"Through its order today, FERC has affirmed the findings of the FERC Trial Staff, and we are pleased to have this matter concluded," said Gary G. Ely, chairman of the board, president and chief executive officer of Avista Corp.

Avista Corp. is an energy company involved in the production, 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 subsidiaries include Avista Advantage and Avista Energy. Avista Corp.'s stock is traded under the ticker symbol "AVA" and its Internet address is www.avistacorp.com.

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.

SOURCE  Avista Corp.
    -0-                             04/14/2004
    /CONTACT:  Media, Patrick Lynch, +1-509-495-4264 or
pat.lynch@avistacorp.com, or, Investors, Angela Teed, +1-509-495-2930 or
angela.teed@avistacorp.com, both of Avista Corp./
    /Photo:  NewsCom:  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.; Federal Energy Regulatory Commission; Avista Energy; Avista
     Utilities
ST:  Washington
IN:  OIL UTI
SU:  LAW

JO 
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5927 04/14/2004 13:02 EDT http://www.prnewswire.com