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                                                                 EXHIBIT 10(o)-6

                                  AVISTA CORP.
                         PERFORMANCE AWARD PLAN SUMMARY

                                INTRODUCTORY NOTE

The following Performance Award Plan Summary is governed by the amended and
restated Avista Corp. Long-Term Incentive Plan and the Avista Corp. 2000
Non-Officer Employee Long-Term Incentive Plan (the "Mirror Plan") (collectively,
the "Plans"). The summary description provided herein provides the specific
terms and conditions covering eligibility, performance measures, grant cycles
and other key factors not described in the Plans. Each individual participant
will also receive a Performance Award Agreement (the "Agreement") which defines
the individual terms for participation in a particular Performance Cycle.

PURPOSE

The purpose of the Performance Award Plan is to provide a means for rewarding
executive officers and other key contributors for their success in driving
long-term performance results, which increase shareholder value. It also
promotes a closer identity of interests between Participants and shareholders,
rewards high performance levels and attracts and retains outstanding leadership.

ELIGIBILITY

All Avista Corp. executive officers are eligible to participate. Other key
contributors approved by Avista Corp. Compensation and Organization Committee
(the "Plan Administrator") may also be eligible.

PERFORMANCE CYCLE

The Performance Cycle will begin on January 1 of the first year and continue to
December 31, three years hence.

PERFORMANCE AWARD

Each participant is eligible to be granted a Performance Award for the
Performance Cycle. The grant amount is approved by the Plan Administrator and
established using competitive equity compensation data for comparable positions
within the Energy industry. Awards granted to non-executive positions may be
considered above market compensation for comparable positions.

PERFORMANCE GOALS

The Award payment is determined at the end of the Performance Cycle based upon
achieving Avista Corp. financial, operational and/or shareholder return
performance goals or other indicators determined by the Plan Administrator. The
Performance Goals established for the Performance Cycle will be set forth in the
Performance Award Agreement.

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                                                                 EXHIBIT 10(o)-6

DIVIDEND EQUIVALENT RIGHTS

For every share/unit the participant earns after the Performance Cycle, a cash
dividend value is calculated and distributed. The value is based on the total
number of shares/units earned and the cash distributions that would have been
paid on the shares of Common Stock over the Performance Cycle as if the shares
had been issued and outstanding on the dividend record dates.

Final Performance                   Total Dividends Paid Per           Dividend
   Award Payout              X     Share over Performance       =     Equivalent
 (Avista shares/units)                 Cycle

PERFORMANCE AWARD PAYOUT FORMULA

The Performance Award Payout Formula is provided in each Performance Award
Agreement. Participants are limited to a maximum 150% of the Performance Award
opportunity. Final awards may be distributed in whole shares of Avista Corp.
Common Stock, cash or a combination thereof.

DEFERRAL OF AWARD PAYMENT

The Participant may elect to defer part or all of the payment consistent with
the provisions of the Avista Corp. Executive Deferral Plan. See Executive
Deferral Plan for current provisions regarding deferral of Performance Awards
and Dividend Equivalents.

SETTLEMENT OF PERFORMANCE AWARD

If earned, Awards will be paid as soon as practical following the completion of
the Performance Cycle and approval by the Plan Administrator. Performance Awards
and Dividend Equivalents may be paid in the form of whole shares of Avista Corp.
Common Stock, cash or any combination thereof. The participant may elect to
defer part or all of the payment consistent with the provision of the Avista
Corp. Executive Deferred Compensation Plan.

AUDIT AND APPROVAL OF AWARDS

The financial calculations necessary to determine the Corporation's financial
performance, as well as other steps in determining the award settlement for each
individual, will be reviewed by Corporate Finance before awards are made. The
Plan Administrator will approve all awards prior to payout.

TAX WITHHOLDING

The full value of the Performance Award and the Dividend Equivalents are
considered ordinary income and are subject to applicable taxes at the time of
distribution, unless the awards are deferred into a non-qualified deferral
account. To satisfy the taxes on income not deferred, the Company will first
withhold from the Dividend Equivalents an amount sufficient to cover the taxes.
If the Dividend Equivalent amount is insufficient to cover the taxes required,
the participant may request that shares be withheld, or may provide a cash
payment to cover the remaining amount.

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TERMINATION

Voluntary termination or termination for cause results in forfeiture of all
outstanding Performance Awards. Participation in less than the full Performance
Cycle due to retirement, disability or death of a participant will result in a
prorated award after the Performance Cycle. In general, the prorated award, if
earned after the Performance Cycle, will be calculated using the ratio of the
number of months the Participant is employed during the Cycle to the total
number of months in the Performance Cycle. The Plan Administrator, in its full
discretion, reserves the right to authorize changes to this clause.

CHANGE IN CONTROL

In the event of a qualifying Change in Control (as defined in section 2.4 of the
Plans), outstanding Performance Awards will be paid at 100% as if the
performance goals were met at 100% of target. Then prorated for the portion of
the Performance Cycle completed at the time of the Change in Control. Payments
maybe paid in cash lump sum rather than stock.

TRANSFERABILITY

No Performance Award or Dividend Equivalent Right granted or awarded may be
assigned or transferred other than by will or by the applicable laws of descent
and distribution. Settlements of Awards may be payable only to the Participant
or a designated beneficiary. All assigned or transferees are subject to the same
terms and conditions contained in the Agreement.

CONTINUED EMPLOYMENT OR SERVICES, RIGHTS IN AWARDS

Nothing contained in the Agreement, the Plans, or any action of the Plan
Administrator taken under the Plans or the Agreement shall be construed as
giving any Participant any right to be retained in the employ of Avista or limit
Avista's right to terminate the employment or services of the Participant.

NO RIGHTS AS A SHAREHOLDER

No Performance Award entitles the Participant to any dividends (except in an
award of Dividend Equivalent Rights), voting or any other right as a shareholder
until the shares are earned and free of all applicable restrictions.

ADMINISTRATION OF THE PERFORMANCE AWARD PLAN

The Plan Administrator has complete authority to manage and control the
operation and administration of the Performance Award Plan. Any interpretation
of the Agreement and any decision made by the Plan Administrator are final and
binding.

GOVERNING LAW

The State of Washington shall be the governing law and any litigation arising
under the Agreement shall be conducted in the courts of Spokane County, the
State of Washington or the federal courts of the United States.

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