Request intended to meet renewable resource acquisition goals

SPOKANE, Wash., Sept. 24 /PRNewswire-FirstCall/ -- Avista (NYSE: AVA) is seeking proposals from suppliers of renewable energy to meet its resource acquisition targets for additional cost-effective qualified renewable energy resources. The request for proposals (RFP) is based on resource acquisition goals identified in Avista's 2009 Electric Integrated Resource Plan (IRP).

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Through the RFP process, Avista is seeking to acquire approximately 35 average megawatts (aMW) of long-term qualified renewable energy to be supplied by the end of 2012 in order to take advantage of federal and state tax incentives.

Currently the company supplies about 55 percent of its electric needs through renewable hydropower. Other renewable resources presently utilized by Avista include wood waste and wind power.

The 2009 IRP identifies a goal of approximately 50 aMW of renewable energy, which equates to 150 megawatts (MW) of wind power capacity, by the end of 2012. Other near-term IRP resource acquisition goals include saving 339 MW through aggressive energy efficiency programs and other measures over the next 10 years.

The company is seeking proposals from various types of qualifying renewables as part of this process.

Qualifying projects could include:

    --  Wind;
    --  Solar;
    --  Geothermal;
    --  Biomass;
    --  Qualified hydroelectric; and

    --  Other eligible renewable resources that meet Washington's renewable
        portfolio standard.

"In this RFP we are addressing our goal to acquire qualified renewable resources at the lowest reasonable price for our customers," said Dick Storro, Avista vice president of energy resources.

Avista will host a conference call for potential bidders on September 30. Responses to the renewables request for proposals are due by October 23, 2009. The full RFP and instructions for bidders are posted on the Avista Utilities web site at: http://www.avistautilities.com/inside/resources/pages/default.aspx.

About Avista

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 our operating division that provides electric service to 353,000 homes and businesses and natural gas to 313,000 homes and businesses in three Western states, serving more than 492,000 customers. Avista's primary, non-regulated subsidiary is Advantage IQ. Our stock is traded under the ticker symbol "AVA." For more information about Avista, please visit www.avistacorp.com.

This news release contains forward-looking statements regarding the company's current expectations. Forward-looking statements are all statements other than historical facts. Such statements speak only as of the date of the news release and are subject to a variety of risks and uncertainties, many of which are beyond the company's control, which could cause actual results to differ materially from the expectations. These risks and uncertainties include, in addition to those discussed herein, all of the factors discussed in the company's Annual Report on Form 10-K for the year ended Dec. 31, 2008, and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2009.

Avista Corp. and the Avista Corp. logo are trademarks of Avista Corporation.

SOURCE Avista Corp.

Hugh Imhof, +1-509-495-4264, hugh.imhof@avistacorp.com, or Avista 24/7 Media Access, +1-509-495-4174, both of Avista Corp.