**Release: #4555-01****For Release: August 21, 2001**

**AVISTA ENERGY, INC. ORDERED TO PAY $2.1 MILLION TO      SETTLE CFTC CHARGES OF MANIPULATING ELECTRICITY FUTURES**

**Former Company Officers and Employees and NYMEX Floor Broker also      Charged with Manipulation**

      WASHINGTON – The Commodity Futures Trading Commission (CFTC)      announced today that it filed and simultaneously settled administrative      proceedings against **Avista Energy,      Inc**. (Avista Energy), of Spokane, Washington, former Avista      Energy Vice President of Trading **Thomas Johns**      (Johns) of Spokane, Washington, and former Avista Energy trader      **Michael T. Griswold** (Griswold) of Seattle, Washington. In the      Order issued today, the CFTC finds that on four days between April 1998      and August 1998, Avista Energy manipulated the settlement prices of the      Palo Verde and California-Oregon-Border electricity futures contracts      traded on the **New York Mercantile Exchange** (NYMEX), in order to      increase the company’s net gain on certain over-the-counter option      positions, whose value was based on the settlement prices at issue.    

      The CFTC imposed cease and desist orders against Avista Energy, Griswold,      and Johns, and required them to pay civil monetary penalties of $2.1      million, $110,000, and $50,000, respectively. The CFTC also imposed an      18-month trading ban on Griswold and a 12-month trading ban on Johns. The      settlements require Avista Energy, Griswold, and Johns to cooperate in      any further investigations and proceedings related to the conduct at      issue. Avista Energy, Griswold, and Johns consented to the entry of the      orders without admitting or denying the findings made in the orders.    

      In announcing today’s settlements, Acting Chairman James E. Newsome      commented, *This action demonstrates the CFTC’s continuing      vigilance in its efforts to protect the nation’s futures markets      from manipulation.*

The CFTC also filed      a ten-count complaint against former Avista Energy Vice President of      Trading Strategies **William H. Taylor** (Taylor) of Houston, Texas,      former Avista Energy trader **Robert S. Kristufek** (Kristufek) of      Chicago, Illinois, and NYMEX floor broker **Anthony J. DiPlacido**      (DiPlacido) of Bellmore, New York, charging them with participating in      the manipulative scheme.

      A public hearing will be held on the charges against Kristufek, Taylor      and DiPlacido. Possible sanctions include cease and desist orders, civil      monetary penalties of $110,000 per violation of the Commodity Exchange      Act, or three times the monetary gain (whichever is higher), restitution,      trading prohibitions and suspension, restriction or revocation of      DiPlacido’s floor broker registration.    

      The NYMEX Compliance Department assisted the CFTC’s Division of      Enforcement in its investigation.    

      Copies of the CFTC complaint and orders may be found at http://www.cftc.gov/

**Case Contact**:**Charles J. Sgro**       Regional Counsel, CFTC Division of Enforcement       (212) 488-1249    

* * * * * ***THE CFTC APPRECIATES YOUR COVERAGE. SINCE WE DO NOT ALWAYS HAVE      ACCESS TO YOUR FINAL STORY, WE ASK THAT YOU PLEASE SHARE IT WITH US BY      E-MAILING OR FAXING A COPY TO:**[email protected], Public Affairs Fax: 202-418-5525, Attention: Dennis      Holden    

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