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SECURITIES AND EXCHANGE COMMISSION

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): May 22, 2002

AVISTA CORPORATION

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Washington		1-3701		91-0462470
(State or other jurisdiction of incorporation or organization)		(Commission File Number)		(I.R.S. Employer Identification No.)

1411 East Mission Avenue, Spokane, Washington		99202-2600
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: Web site: http://www.avistacorp.com		509-489-0500

(Former name or former address, if changed since last report)

 

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	Item 5. Other Information
	Item 7. Exhibits
SIGNATURES
EXHIBIT 99.(A)

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Item 5. Other Information

On February 13, 2002, the Federal Energy Regulatory Commission (FERC) issued an order commencing a fact-finding investigation of potential manipulation of electric and natural gas prices in California energy markets. On May 8, 2002, the FERC requested data and information with respect to certain trading strategies that companies may have engaged in. Specifically, the requests inquired as to whether or not certain trading strategies were the same or similar to those of Enron Corporation and its affiliates. This request was made to all sellers of wholesale electricity and/or ancillary services to the California Independent System Operator and/or the California Power Exchange during the period 2000 and 2001, including Avista Corporation and Avista Energy.

On May 22, 2002, Avista Corporation and Avista Energy filed their responses to this request. In their responses, Avista Corporation and Avista Energy deny improper California trading activities. Avista Corporation’s press release is filed as exhibit 99(a).

Item 7. Exhibits

99(a)        Press Release dated May 22, 2002.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

AVISTA CORPORATION (Registrant)

Date: May 28, 2002

/s/     Jon E. Eliassen Jon E. Eliassen Senior Vice President and Chief Financial Officer (Principal Accounting and Financial Officer)

 

                                                                  EXHIBIT 99.(a)



[AVISTA CORP. LOGO]



- -----------------------------------------------------------         NEWS RELEASE
CONTACT:  Media:  Hugh Imhof (509) 495-4264  hugh.imhof@avistacorp.com
          Investors: Angie Teed (509) 495-2930  angela.teed@avistacorp.com


                                                         FOR IMMEDIATE RELEASE:
                                                         May 22, 2002
                                                         5:30 p.m. EDT


              AVISTA DENIES IMPROPER CALIFORNIA TRADING ACTIVITIES
EXTENSIVE RECORDS SEARCH CONFIRMS THAT TRADING STRATEGIES WERE ETHICAL AND LEGAL

SPOKANE, WASH.: Avista Corp. (NYSE:AVA) has affirmed that the past and present
trading activities of both its utility and unregulated subsidiary have been
carried out in a legitimate and ethical manner. The company has detailed its
position in a response to a Federal Energy Regulatory Commission inquiry into
trading practices in the California energy market during 2000 and 2001.

        "Avista's actions were legitimate, backed by real energy assets and did
not violate the ISO tariff or any state or federal regulations," said Gary G.
Ely, chairman, president and chief executive officer of Avista Corp. "Our
company's success has been built on decades of experience serving customers in
the western energy markets."

        An extensive search of Avista's records failed to turn up any pertinent
references to trading practices allegedly carried out by Enron traders to
manipulate the California market.

        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 affiliates include Avista Advantage, Avista Labs 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.

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