BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION In the matter of the application of ) AVISTA CORPORATION ) ORDER ) ESTABLISHING for an order establishing compliance ) COMPLIANCE with RCW 80.08.040 ) UE-000675 BACKGROUND On May 3, 2000, Avista Corporation (“Avista”), filed an application with the Washington Utilities and Transportation Commission under the provisions of RCW 80.08.040 for an order establishing compliance with the requirements of that statute in connection with Avista’s proposed offering, issuance and sale, of up to 3,700,000 authorized but unissued shares of its Common Stock for various corporate purposes. As revised, RCW 80.08.040 requires the Company to file certain information with the Commission and authorizes the Company, at its option, to request the Commission to enter an order that the Company has complied with the requirements of RCW 80.08.040. The Company has filed the information required by RCW 80.08.040 and has requested that the Commission confirm that the Company has complied with the requirements of RCW 80.08.040. This matter was brought before the Commission at its May 24, 2000, regularly scheduled open meeting, recessed and continued to May 30, 2000. The Commissioners, having been fully advised in the matter, and having determined the following order to be in compliance with RCW 80.08.040, directed the Secretary to enter the following order and related provisions. FINDINGS THE COMMISSION FINDS: 1. Avista Corporation, a Washington corporation, is a public service company subject to the jurisdiction of this Commission under the provisions of Chapter 80.08 RCW. 2. As to form, the application herein meets the requirements of Chapter 80.08 RCW and the rules and regulations of the Commission adopted pursuant thereto. 3. The Company’s application in this Docket contains (a) a description of the purposes for which the proposed securities will be issued along with certification by an authorized officer that the proceeds from this financing will be used for the purpose allowed by Chapter 80.08 RCW; (b) a description of the proposed issuance, including the terms of financing; and (c) a statement as to why the proposed transactions are in the public interest. 4. An order consistent with the above findings should be entered. ORDER THE COMMISSION ORDERS: 1. Avista Corporation has complied with the requirements of RCW 80.08.040. 2. Avista Corporation file, as soon as available: a. The Report of Securities Issued required by WAC 480-146-230. b. Verified copies of any agreement entered into in connection with any transaction pursuant to this order. 3. This order shall in no way affect the authority of this Commission over rates, service, accounts, valuations, estimates or determination of costs, or any matters whatsoever that may come before it, nor shall anything herein be construed as an acquiescence in any estimate or determination of costs, or any valuation of property claimed or asserted. DATED at Olympia, Washington, and effective this 30th day of May, 2000. WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION CAROLE J. WASHBURN Secretary