Ownership Submission
FORM 3
 UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
  Vermillion Dennis P
 2. Date of Event Requiring Statement (Month/Day/Year)
07/02/2007		 3. Issuer Name and Ticker or Trading Symbol
AVISTA CORP [AVA]
(Last)
(First)
(Middle)
1411 E MISSION AVENUE		 4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Vice President
 5. If Amendment, Date Original Filed(Month/Day/Year)
(Street)

SPOKANE, WA 99202		 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Beneficially Owned
1.Title of Security
(Instr. 4)		 2. Amount of Securities Beneficially Owned
(Instr. 4)		 3. Ownership Form: Direct (D) or Indirect (I)
(Instr. 5)		 4. Nature of Indirect Beneficial Ownership
(Instr. 5)
Common Stock - Restricted Shares (1) 800
D
 
Common Stock (401(k) Investment Plan Shares 6,669
I
by Trustee

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. SEC 1473 (7-02)
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Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 4)		 2. Date Exercisable and Expiration Date
(Month/Day/Year)		 3. Title and Amount of Securities Underlying Derivative Security
(Instr. 4)		 4. Conversion or Exercise Price of Derivative Security 5. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 5)		 6. Nature of Indirect Beneficial Ownership
(Instr. 5)
Date Exercisable Expiration Date Title Amount or Number of Shares
2007 Performance Share Grant   (2)   (2) Common Stock 3,000 $ (3) D  
Employee Stock Option   (4) 11/12/2008 Common Stock 3,075 $ 18.63 D  
Employee Stock Option   (5) 11/11/2009 Common Stock 4,400 $ 17.31 D  

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
Vermillion Dennis P
1411 E MISSION AVENUE
SPOKANE, WA 99202		       Vice President  

Signatures

/s/ Dennis P. Vermillion 07/10/2007
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 5(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Restricted shares vest one-third each year over a three-year period and are payable in Avista Corp. Common Stock at the end of each year in the three-year period.
(2) Each performance cycle is three years in length. Shares are issued at the end of each three-year cycle if performance measure is met.
(3) No conversion price - shares awarded if performance measure is met.
(4) Option was granted on 11/12/1998 and vested in four equal annual installments beginning on the first anniversary of the grant date.
(5) Option was granted on 11/11/1999 and vested in four equal annual installments beginning on the first anniversary of the grant date.

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