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--></style><title>Fwd: ID Message to Community Leaders about Natural
Gas Rat</title></head><body>
<blockquote type="cite" cite>Visionaries: A message from Paul
Kimmell of Avista indicating another</blockquote>
<div><br>
rate decrease in the price of natural gas. It is good news in
bad</div>
<div>economic times.</div>
<div><br></div>
<div>Rep. Tom Trail<br>
</div>
<blockquote type="cite" cite> </blockquote>
<blockquote type="cite" cite> </blockquote>
<blockquote type="cite" cite><img
src="cid:a06240814c6d45964307e@[192.168.153.200].1.0"
alt="image001 298.jpg" width="600" height="115"></blockquote>
<blockquote type="cite" cite> </blockquote>
<blockquote type="cite" cite>As a community leader, it's important
for you to have information about our request to further decrease
natural gas rates for customers in Idaho. We'll be sharing
this message from Kelly Norwood, our vice president for state and
federal regulation, with our customers over the next few
days.</blockquote>
<blockquote type="cite" cite> </blockquote>
<blockquote type="cite" cite>If our request is approved by the Idaho
utility commission, the continuing decreases in the wholesale cost of
natural gas will lead to the third rate reduction this year of 17%
starting November 1, just in time for the cold weather.
Combined, overall natural gas rates for Idaho residential customers
will have decreased by about 25 percent since the beginning of this
year.</blockquote>
<blockquote type="cite" cite> </blockquote>
<blockquote type="cite" cite>I would also like to hear from you.
If you have questions or thoughts to share, (or would prefer not to
receive future emails) just reply to this message and let me know, or
give me a call at <font face="Tahoma">(509)
336-6236</font>.</blockquote>
<blockquote type="cite" cite>Thank you,</blockquote>
<blockquote type="cite" cite> </blockquote>
<blockquote type="cite" cite><font face="Tahoma"><i><b>Paul J.
Kimmell</b></i></font></blockquote>
<blockquote type="cite" cite><font face="Tahoma">Regional Business
Manager</font></blockquote>
<blockquote type="cite" cite><font face="Tahoma">Palouse
Area</font></blockquote>
<blockquote type="cite" cite><font face="Tahoma">Avista
Corporation</font></blockquote>
<blockquote type="cite"
cite><b>_____________________________________________________________</b
></blockquote>
<blockquote type="cite" cite> </blockquote>
<blockquote type="cite" cite>In my last note to you in June, I hoped
that continued lower wholesale natural gas costs would allow Avista to
request another rate decrease called a "purchased gas
adjustment." I'm pleased to confirm that we have made such a
request to the Idaho utility commission, which if approved, will
result in a residential rate decrease of 17%, beginning November 1,
just in time for the winter heating season.</blockquote>
<blockquote type="cite" cite> </blockquote>
<blockquote type="cite" cite>This is the third time this year that
we've requested to decrease rates for our natural gas customers.
If this request is approved, overall natural gas rates for residential
customers will have decreased by about 25% since January
2009.</blockquote>
<blockquote type="cite" cite> </blockquote>
<blockquote type="cite" cite>This is important news since currently
the direct cost of wholesale natural gas represents about 75% of your
bill. We have purchasing plans and decades of experience to help
keep these costs as low as possible, but ultimately the wholesale cost
is set by the market and fluctuates up and down. Lately, we've
benefited from these fluctuations, but wholesale natural gas prices
may go up or down in the future.</blockquote>
<blockquote type="cite" cite> </blockquote>
<blockquote type="cite" cite>Currently, the remaining 25% of your bill
covers the cost of delivering natural gas - the equipment and people
needed to provide safe and reliable delivery of service. The
Idaho utility commission recently approved an increase in these rates
of just over 2% to recover investments made in our natural gas
system.</blockquote>
<blockquote type="cite" cite> </blockquote>
<blockquote type="cite" cite>We'll continue to keep you informed
about these and other relevant issues. To learn more and to
share your comments and questions with us, please visit <a
href="http://www.avistautilities.com/conversation"
>www.avistautilities.com/conversation</a>, or email us at <a
href="mailto:conversation@avistautilities.com"
>conversation@avistautilities.com</a>.</blockquote>
<blockquote type="cite" cite> </blockquote>
<blockquote type="cite" cite>Thank you for your time and
interest.</blockquote>
<blockquote type="cite" cite> </blockquote>
<blockquote type="cite" cite>Kelly Norwood</blockquote>
<blockquote type="cite" cite>Vice President for State and Federal
Regulation</blockquote>
<blockquote type="cite" cite>Avista Corporation</blockquote>
<blockquote type="cite" cite> </blockquote>
<blockquote type="cite" cite><img
src="cid:a06240814c6d45964307e@[192.168.153.200].1.1"
alt="image002 131.jpg" width="75" height="100"></blockquote>
<blockquote type="cite" cite> </blockquote>
<blockquote type="cite" cite>This email contains forward-looking
statements regarding the company's current expectations.
Forward-looking statements are all statements other than historical
facts. Such statements speak only as of the date of the email and are
subject to a variety of risks and uncertainties, many of which are
beyond the company's control, which could cause actual results to
differ materially from the expectations. These risks and uncertainties
include, in addition to those discussed herein, all of the factors
discussed in the company's Annual Report on Form 10-K for the year
ended Dec. 31, 2008, and the Quarterly Report on Form 10-Q for the
quarter ended June 30, 2009.</blockquote>
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<div>Dr. Tom Trail<br>
International Trails<br>
1375 Mt. View Rd.<br>
Moscow, Id. 83843<br>
Tel: (208) 882-6077<br>
Fax: (208) 882-0896<br>
e mail ttrail@moscow.com</div>
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