Sec Form 4 Filing - Thoren Diane C @ AVISTA CORP - 2012-02-21

FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP 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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1. Name and Address of Reporting Person Thoren Diane C 2. Issuer Name and Ticker or Trading Symbol AVISTA CORP [ AVA] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director _____ 10% Owner _____ Officer (give title below) X __ Other (specify below) Treasurer (Last) (First) (Middle) 1411 E. MISSION AVENUE 3. Date of Earliest Transaction (MM/DD/YY) 02/21/2012 (Street) SPOKANE, WA99202 4. If Amendment, Date Original Filed (MM/DD/YY) 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 Acquired, Disposed of, or Beneficially Owned 1.Title of Security (Instr. 3) 2. Transaction Date (MM/DD/YY) 2A. Deemed Execution Date, if any (MM/DD/YY) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 02/21/2012 M( 1 ) 1,025 A $ 10.17 5,688 D Common Stock 02/21/2012 S( 1 ) 1,025 D $ 25.53 4,663 D Common Stock held in 401(k) Investment Plan 4,551 I held by Trustee Common Stock held in Executive Deferral Account 975 I held by Trustee Common STock held by Grandson, Zachary Brown 39 I held by Grandson Common Stock held by Niece, Katherine Cuthill 39 I held by Niece Common Stock held by Niece, McIntyre Cuthill 13 I held by Niece Common Stock held by Granddaughter, McKenzie Brown 24 I held by Granddaughter Common Stock held by Grandson, Colton Materne 14 I held by Grandson Common Stock held by Granddaughter, Avery Materne 7 I held by Granddaughter

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities) 1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YY) 3A. Deemed Execution Date, if any (MM/DD/YY) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5) 6. Date Exercisable and Expiration Date (MM/DD/YY) 7. Title and Amount of Underlying Securities (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4) Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares Exercise of Option $ 10.17 02/21/2012 M 1,025 ( 2 ) 11/07/2012 Common Stock 1,025 $ 25.53 0 ( 3 ) D

Reporting Owners Reporting Owner Name / Address Relationships Director 10% Owner Officer Other Thoren Diane C 1411 E. MISSION AVENUE SPOKANE, WA99202 Treasurer Signatures /s/ Diane C. Thoren 02/23/2012 Signature of Reporting Person Date

Explanation of Responses:

( 1 )Exercise of Sale of Option Grant expiring 11/07/2012 ( 2 )Options vest in four (4) equal installments beginning the first annivesary date of the grant. Ms. Thoren acquired the option grant of 2,700 11/07/2002. ( 3 )Total reflects the number for derivative securities remaining for this particular grant. Ms. Thoren no longer holds any AVA Stock Option Grants.

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.

* If the form is filed by more than one reporting person, see Instruction 4(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).

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