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                                                                 EXHIBIT 10(q)-8

September 9, 2002

Malyn Malquist
3321 Corey Drive
Reno, NV 89509

Dear Malyn:

         This letter will confirm our recent discussions regarding my offer to
you for the position of Senior Vice President and CFO of Avista Corporation. We
have agreed that your starting date will be effective sometime in late September
2002 or early October 2002 based upon our mutual agreement. Your annual salary
in your position as Senior Vice President and CFO will be $245,000 paid in 26
biweekly increments in accordance with Avista Corporation's normal payroll
procedures. You will be eligible to participate in Avista Corporation's
Executive annual incentive plan. For year 2002, the incentive bonus potential
for the CFO position is 60% of base salary. Actual incentive bonus payout for
officers is determined based on successfully reaching the objectives identified
in each annual plan. You will be granted 50,000 non-qualified stock options upon
your hire date. This initial employment grant will vest in 25% increments
annually over a four-year period. You will also be provided with a Change in
Control Contract upon your hire date that provides you with benefit protection
as outlined in the contract in the event of a change in control.

         As an Avista Corporation employee, you and your eligible family members
will be entitled to participate in the normal benefits package offered to all
employees, including medical, vision, and dental coverage. You will also be
eligible to participate in the 401(k) plan on the enrollment date that coincides
with or immediately follows your employment date (20th of each month, effective
the first pay close in the following month).

         As an executive of the Company, you will be enrolled in the Executive
Income Continuation Plan and the Supplemental Executive Long Term Disability
Plan upon completion of your signature for these plans. You will also be
eligible to participate in the Supplemental Executive Retirement Plan, hereafter
referred to as the Plan, according to the eligibility set forth in the Plan
document. Once you have reached 5 years of service and at least age 55, you will
be eligible for the benefit under Section 4.1b of the Plan. After 5 years of
service and having reached at least age 55, you will be credited with 3 years
Vesting Service and 2 years Benefit Service for each completed year of
employment (meeting a minimum of 1000 hours of service and credited with 1/12th
of a year for every 173 1/3 hours worked up to a maximum of 12 months

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credited per year). The Early Retirement Reduction Factors (ERRF) for retirement
from active service as described in the Retirement Plan for Employees of Avista
Corporation will be utilized in determining the benefit payable from the Plan.
No benefits will be payable from the Plan if you terminate with fewer than 5
years of service. You will become eligible to participate in the Retiree Medical
Plan after five years of service, as defined above, and having reached at least
age 55. Upon meeting eligibility, you will participate at the 15-year employment
level to determine the appropriate Company contribution and premium caps.

         To assist with your move to Spokane, Avista will provide you with a
relocation coordinator and cover the reimbursable amounts of the actual costs of
your relocation up to a mutually agreed upon level. The Company will pay for
reasonable expenses for one round trip between Reno and Spokane, including
airfare, lodging, and meals in connection with a house-hunting trip of up to
seven days in duration for you and your spouse. The Company will also pay for
reasonable temporary living expenses for a period of up to 90 days for food,
lodging, and rental car, if necessary, upon arrival in Spokane. To facilitate an
earlier start date, the company will reimburse you for the cost of your weekend
travel between Reno and Spokane for up to three months until your family can be
moved.

         You will receive 33 days of one leave (crediting you for 24 years of
service) immediately upon employment, which can be used in accordance with
Avista Corporation policy guidelines. After your one-year anniversary, your one
leave will be accumulated on an accrual basis each pay period based upon 25
years of service. For the purpose of calculating your one leave accrual, you
will be granted an additional year of service for each year worked with Avista
Corporation.

         Please note that acceptance of this offer does not create a contract of
continuing employment at Avista Corporation. Your employment with Avista
Corporation is on an at-will basis; either you or Avista Corporation may
terminate the employment relationship at any time for any reason not expressly
prohibited by law. Notwithstanding the foregoing, in the event that, at any time
prior to your completing 5 years of full employment with Avista Corporation, the
Company chooses to relieve you from your position, other than for cause or an
actual Change in Control event, you will be entitled to receive severance
benefits as described herein. This provision becomes null and void upon your
fifth year employment anniversary. For purposes of this offer letter, Cause
shall mean (i) any act of personal dishonesty taken by you in connection with
your responsibilities as an employee which is intended to result in your
personal enrichment, (ii) your conviction of a felony, (iii) any act by you that
constitutes material misconduct and is injurious to Avista Corporation, or (iv)
continued violations by you of your obligations to Avista Corporation. In the
event of a Change in Control, your Change of Control contract takes precedent
and this severance benefit is not payable.

         Based upon the circumstances outlined in the preceding paragraph
occurring, you would be entitled to receive continuing severance payments (less
applicable withholding taxes) at a rate equal to your current base salary as
then in effect, for a period of one year from the date of such termination, to
be paid periodically in accordance with Avista Corporation's normal payroll
policies. The company will also continue to provide you with regular company
medical health benefits for the period of the first three months of your
severance. After three months, you could

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elect to participate in COBRA coverage at which time you would be responsible
for paying the full monthly premium associated with the coverage you elected.

         As a condition of employment, you will be required to sign a
Confidentiality, Non-Solicitation, Invention and Non-Compete Agreement. This
letter and the Confidentiality, Non-Solicitation, Invention and Non-Compete
Agreement set forth the terms of your employment with Avista Corporation and
supersede any prior representations or agreements whether written or oral. This
letter may not be modified or amended except by a written agreement signed by
the CEO and Chairman of Avista Corporation and you.

         In the event of any dispute or claim relating to or arising out of our
employment relationship, you and Avista Corporation agree that (i) any and all
such disputes will be fully and finally resolved by binding arbitration
conducted by the American Arbitration Association in Spokane County, Washington,
(ii) you are waiving any and all rights to a jury trial, but all court remedies
will be available in arbitration, (iii) all disputes will be resolved by a
neutral arbitrator who will issue a written opinion, (iv) the arbitration will
provide for adequate discovery, and (v) each of you and Avista Corporation will
pay one half of the costs and expenses of such arbitration and each of you and
Avista Corporation will separately pay your respective counsel fees and
expenses. However, we agree that this arbitration provision will not apply to
any disputes or claims relating to or arising out of the misuse or
misappropriation of Avista Corporation's proprietary information.

         I am looking forward to you joining Avista Corporation, and I have full
confidence that your background and experience will assist you in making a
significant contribution to the financial and strategic direction of our
Company. If you are in agreement with the general terms outlined in this letter,
I ask that you sign and return the original letter to me as soon as possible.

Sincerely,

/s/ Gary G. Ely

Gary G. Ely
CEO and Chairman of the Board of Directors
Avista Corporation

Accepted by: /s/ Malyn Malquist
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             Malyn Malquist

Dated:       September 10, 2002