SPOKANE, Wash., Sept. 5 /PRNewswire-FirstCall/ -- Avista (NYSE: AVA) has filed a purchased gas cost adjustment (PGA) with the Oregon Public Utility Commission (OPUC) seeking to reduce natural gas rates by 0.3 percent for its residential customers with an effective date of Nov. 1. The filing reflects the cost of natural gas Avista has purchased to date to serve its customers during the 2007-2008 heating season.

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If approved by the OPUC, a residential customer using an average of 52 therms of natural gas per month could expect to see a $0.22 decrease for a revised total monthly bill of $80.14. The decrease for commercial and industrial customers will vary by rate class.

PGAs are filed each year to reflect changes in the cost of wholesale natural gas purchased by Avista to serve its customers. As a gas distribution company, Avista does not profit from gas commodity prices because they are passed through directly, without markup, to consumers.

Avista offers a number of energy efficiency programs, incentives and rebates to help customers proactively manage their natural gas consumption. Information on Avista's energy efficiency offerings and no-cost conservation information is available at http://www.avistautilities.com. Through these program offerings Avista's Oregon customers have saved over 87,000 therms of natural gas so far in 2007.

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 service to 346,000 electric and 306,000 natural gas customers in three western states. Avista's primary, non-regulated subsidiary is Advantage IQ (http://www.advantageIQ.com). Avista Corp.'s stock is traded under the ticker symbol "AVA." For more information about Avista, please visit http://www.avistacorp.com. Avista Corp. and the Avista Corp. logo are trademarks of Avista Corporation.

SOURCE Avista Corp. 09/05/2007

CONTACT: media, Debbie Simock, +1-509-495-8031,
debbie.simock@avistacorp.com, or investors, Jason Lang, +1-509-495-2930,
jason.lang@avistacorp.com, or Avista 24-7 Media Access, +1-509-495-4174, all
of Avista Corp.
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Web site: http://www.avistacorp.com
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8356 09/05/2007 15:07 EDT http://www.prnewswire.com