Pricing Supplement Filing under Rule 424(b)(3)
Dated December 13, 2000 Registration No. 333-82165
(To Prospectus dated August 17, 1999
as supplemented by Prospectus
Supplement dated August 19, 1999)
AVISTA CORPORATION
MEDIUM-TERM NOTES, SERIES D
FIXED RATE NOTES
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Principal Amount: $45,000,000 Price to Public: 100%
Original Interest Accrual Date: December 18, 2000 Agent's Commission: $67,500
Stated Maturity: December 20, 2001 Proceeds to Company: $44,932,500
Interest Rate: 8.00% per annum* Redeemable at Company's Option: Yes No X
--- ---
Interest Payment Dates: Each March 1 and OID: Yes No X
September 1, commencing March 1, 2001 --- ---
Regular Record Dates: February 15 and August 15
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Use of Proceeds: To reduce short term debt.
Other Provisions: *The interest rate payable on the Notes will be subject to
permanent adjustment to (i) 8.25% per annum in the event
that one of Moody's Investors Service, Inc. and Standard &
Poor's Rating Services changes its rating on the Medium-Term
Notes, Series D program to be below investment grade, and
(ii) 8.50% per annum if the other rating agency subsequently
changes its rating on the Medium-Term Notes, Series D
program to be below investment grade, as described in
Attachment 1 to this Pricing Supplement.
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The Securities and Exchange Commission and state securities regulators have not
approved or disapproved of these securities, or determined if this pricing
supplement or the accompanying prospectus supplement or prospectus is truthful
or complete. Any representation to the contrary is a criminal offense.
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MORGAN STANLEY DEAN WITTER
MERRILL LYNCH & CO.
SALOMON SMITH BARNEY
THIS PRICING SUPPLEMENT AND THE ACCOMPANYING PROSPECTUS SUPPLEMENT AND
PROSPECTUS INCORPORATE BY REFERENCE IMPORTANT BUSINESS AND FINANCIAL INFORMATION
ABOUT AVISTA CORP. THAT IS NOT INCLUDED IN OR DELIVERED WITH THE PROSPECTUS.
THIS INFORMATION IS AVAILABLE TO YOU AS SET FORTH IN THE ACCOMPANYING
PROSPECTUS.
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ATTACHMENT 1
INTEREST RATE ADJUSTMENT
The interest rate on the Notes will be subject to adjustment in the event
that Moody's Investors Service, Inc. ("Moody's") and/or Standard & Poor's Rating
Services ("S&P") change their ratings on the Medium-Term Notes, Series D program
to be below investment grade (below Baa3 for Moody's or below BBB- for S&P).
Avista Corp.'s current Medium-Term Notes, Series D program rating is Baa2 by
Moody's, and BBB by S&P.
If only one of Moody's and S&P announces such a negative rating change, the
initial interest rate on the Notes will be permanently increased by 25 basis
points, to 8.25% per annum, commencing with the first Interest Payment Date
following such announcement. If the other rating agency subsequently also
announces such a negative rating change, the interest rate on the Notes will be
permanently increased by an additional 25 basis points, to 8.50% per annum,
commencing with the first Interest Payment Date following the date the second
downgrade is announced.
P-2
