BEFORE THE WASHINGTON UTILITIES AND TRANSPORTATION
COMMISSION



In the matter of the application of 

AVISTA CORPORATION
for an order establishing compliance
with Chapter 80.08 RCW
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		DOCKET NO. UE-001098
		 
		FIRST SUPPLEMENTAL
		ORDER ESTABLISHING
		COMPLIANCE WITH
		RCW 80.08.040

BACKGROUND

1 The Commission, on August 30, 2000, entered its Order Establishing Compliance 
with Chapter 80.08  RCW in this docket with respect to Avista Corporation's 
(Avista or Company) proposed offering,  issuance and sale of certain secured or 
unsecured bonds, notes and other evidences of indebtedness,  for purposes 
permitted by law, in forms necessary or convenient to its operations, in a 
total amount of  up to and including $500,000,000 and for terms that may exceed 
364 days.

2 By Application filed December 20, 2000, Avista seeks to modify the existing 
Order in this docket to  increase the short-term borrowing limits to 
$700,000,000 outstanding at any one time.  The Company  states that this 
increase is necessary due to the construction of a new generating facility with 
an   approximate cost of $200,000,000.

3 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 enter an order  that the Company has complied with the requirements 
of the statute.  The Company has filed the  information required by the statute 
and has requested that the Commission confirm that the Company  has complied 
with the requirements of Chapter 80.08.040 RCW.

4 This matter was brought before the Commission at its January 11, 2001, 
regularly scheduled open  meeting.  The Commissioners, having been fully 
advised in the matter, and having determined the  following order to be 
consistent with RCW 80.08.040 directed the Secretary to enter the following  
order and related provisions.

FINDINGS

THE COMMISSION FINDS: 

5 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.
6 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.

7 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 purposes 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.

8 An order consistent with the above findings should be entered.

ORDER

THE COMMISSION ORDERS:

9 Avista Corporation is in compliance with the requirements of Chapter 
80.08.040 RCW.

10 Avista Corporation shall 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.

11 This order shall in no way affect the authority of this Commission over 
rates, services, 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 11th day of January, 2001.

WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION



 CAROLE J. WASHBURN, Secretary