Pricing Supplement Filing under Rule 424(b)(3)
Dated December 26, 2000 Registration No. 333-82165
(To Prospectus dated August 17, 1999
as supplemented by Prospectus
Supplement dated August 19, 1999 and
Pricing Supplement dated December 13, 2000)
AVISTA CORPORATION
MEDIUM-TERM NOTES, SERIES D
FIXED RATE NOTES
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Avista Corporation is offering hereby $4,000,000 principal amount of its
Medium-Term Notes, Series D - Fixed Rate Notes (the "Notes") as an addition to,
and under identical terms with, $45,000,000 principal amount of its Notes issued
on December 18, 2000, pursuant to the Prospectus dated August 17, 1999 as
supplemented by the Prospectus Supplement dated August 19, 1999 and the Pricing
Supplement dated December 13, 2000, for an aggregate principal amount of
$49,000,000 of Notes.
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Principal Amount: $4,000,000 Price to Public: 100%
Original Interest Accrual Date: December 18, 2000 Agent's Commission: $6,000
Stated Maturity: December 20, 2001 Proceeds to Company: $3,994,000(1)
Interest Rate: 8.00% per annum* Redeemable at Company's Option: Yes No X
Interest Payment Dates: Each March 1 and --- ---
September 1, commencing March 1, 2001 OID: Yes No X
Regular Record Dates: February 15 and August 15 --- ---
CUSIP No.: 05379FAB4
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(1)Plus accrued interest from December 18, 2000.
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
