Document:

Exhibit 10.108 

SEVERANCE BENEFITS
AGREEMENT 

 
        AGREEMENT,
dated as of May 16, 2005, by and among GLIMCHER REALTY TRUST, a Maryland real estate
investment trust, with offices at 150 East Gay Street, Columbus, Ohio 43215
(“GRT”), GLIMCHER PROPERTIES LIMITED PARTNERSHIP, a Delaware limited
partnership, with offices at 150 East Gay Street, Columbus, Ohio 43215 (“GPLP”),
and George “Buck” Sappenfield, Sr. (the “Executive”). 

 
        WHEREAS,
GRT, GPLP and/or their subsidiaries and affiliates, including entities in which GRT or
GPLP own a majority of any non-voting stock (collectively, the “Company”), have
employed, or may employ in the future, the Executive as an employee of the Company to
perform certain services for and on behalf of the Company upon terms and conditions upon
which the Company and the Executive have previously agreed, or may in the future agree
(the “Services”); 

 
        WHEREAS,
the Company recognizes that the Executive’s contributions to the future growth of the
Company will be substantial; and 

 
        WHEREAS,
to induce the Executive to remain in the employ of the Company, the parties hereto desire
to set forth certain severance benefits which GPLP will pay to the Executive in the event
of a Change in Control of GRT (as defined in Section 2 hereof). 

 
        IT
IS AGREED: 

 
        1.
TERM. This Agreement shall commence on the date hereof and shall terminate upon the
earlier of (a) the date on which GPLP and GRT have satisfied all of their obligations
hereunder or (b) the date on which the Executive is no longer an employee of the Company
for any reason whatsoever including, without limitation, termination without cause.
Notwithstanding the termination of this Agreement subsequent to a Change in Control of
GRT, in the event that the Executive is an employee of the Company at the moment
immediately prior to a Change in Control of GRT, the Executive shall be entitled to
receive all benefits described hereunder and the provisions hereof related thereto shall
survive such termination. 

 
        2.
CHANGE IN CONTROL OF GRT. For purposes of this Agreement, a “Change in Control
of GRT” shall be deemed to occur if: 

	 	 
        (i)
there shall have occurred a change in control of a nature that would be required to be
reported in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), as in effect
on the date hereof, whether or not GRT is then subject to such reporting requirement;  provided,
however, that there shall not be deemed to be a Change in Control  of GRT if
immediately prior to the occurrence of what would otherwise be a Change in  Control of
GRT (a) the Executive is the other party to the transaction (a “Control of  GRT Event”)
that would otherwise result in a Change in Control of GRT or  (b)  the Executive is
an executive officer, trustee, director or more than 5% equity holder of  the other party
to the Control of GRT Event or of any entity, directly or indirectly,  controlling such
other party;  

	 	 
        (ii)
GRT merges or consolidates with, or sells all or substantially all of its assets to,
another company (each, a “Transaction”); provided, however, that
a  Transaction shall not be deemed to result in a Change in Control of GRT if (a)
immediately  prior thereto the circumstances in (i)(a) or (i)(b) above exist or (b) (1)
the  shareholders of GRT, immediately before such transaction, own, directly or
indirectly,  immediately following such Transaction in excess of fifty percent (50%) of
the combined  voting power of the outstanding voting securities of the corporation or
other entity  resulting from such Transaction (the “Surviving Corporation”) in
substantially  the same proportion as their ownership of the voting securities of GRT
immediately before  such Transaction and (2) the individuals who were members of GRT’s
Board of Trustees  immediately prior to the execution of the agreement providing for such
Transaction  constitute at least a majority of the members of the board of directors or
the board of  trustees, as the case may be, of the Surviving Corporation, or of a
corporation or other  entity beneficially, directly or indirectly, owning a majority of
the outstanding voting  securities of the Surviving Corporation; or  

	 	 
        (iii)
GRT acquires assets of another company or a subsidiary of GRT merges or consolidates with
another company (each an “Other Transaction”) and (a) the shareholders of GRT,
immediately before such Other Transaction own, directly of indirectly, immediately
following such Other Transaction fifty percent (50%) or less of the combined voting power
of the outstanding voting securities of the corporation or other entity resulting from
such Other Transaction (the “Other Surviving Corporation”) in substantially the
same proportion as their ownership of the voting securities of GRT immediately before
such  Other Transaction or (b) the individuals who were members of GRT’s Board of
Trustees  immediately prior to the execution of the agreement providing for such Other
Transaction  constitute less than a majority of the members of the board of directors or
board of  trustees, as the case may be, of the Other Surviving Corporation, or of a
corporation or  other entity beneficially, directly or indirectly, owing a majority of
the outstanding  voting securities of the Other Surviving Corporation; provided,
however,  that an Other Transaction shall not be deemed to result in a Change in
Control of GRT if  immediately prior thereto the circumstances in (i)(a) or (i)(b) above
exist.  

 
        3.
COMPENSATION UPON A CHANGE IN CONTROL OF GRT. If the Executive is an employee of
the Company at the moment immediately prior to a Change in Control of GRT, the Executive
shall be entitled to receive the compensation and benefits set forth below. 

 
        (a)
GPLP shall pay to the Executive, not later than the date of any Change in Control of GRT,
unless otherwise agreed to in writing, a lump sum severance payment (the “Severance
Payment”) equal to two (2) times the Base Amount (as defined below). For purposes of
the Section 3(a), the Base Amount shall mean the Executive’s annual compensation
during the calendar year period preceding the calendar year in which the Change in Control
of GRT occurs. For purposes of determining annual compensation in this Section 3(a), there
shall be included (i) all base salary and bonuses paid or payable to the Executive by the
Company with respect to the preceding calendar year; (ii) all grants of restricted common
shares of beneficial interest of GRT (the “Shares”), if any, with respect to
such preceding calendar year, which Shares shall be valued based on their date of grant at
the then Fair Market Value (as defined in Section of 2.15 of GRT’s 2004 Incentive
Compensation Plan or any other plan or agreement pursuant to which they are issued) and
(iii) the fair market value of any other property or rights given or awarded to the
Executive by the Company with respect to such preceding calendar year, or partial first
year of employment. 

 
        (b)
Any Shares now or hereafter issued to the Executive pursuant to any restricted Share grant
shall vest on the day immediately prior to the date of a Change in Control of GRT and no
longer be subject to repurchase or any other forfeiture restrictions. 

 
        (c)
GRT and GPLP shall cause the Company to maintain in full force and effect for the
Executive’s continued benefit for eighteen (18) months following a Change in Control
of GRT, all life, accident, medical and dental insurance benefit plans and programs or
arrangements in which the Executive was entitled to participate immediately prior to the
date of a Change in Control of GRT, provided that the Executive’s continued
participation is allowable under the general terms and provisions of such plans and
programs and provided, further, that in the event that the Executive becomes employed by
any third party during such 18-month period, then upon the date of such employment the
Executive shall no longer be entitled to any accident, medical or dental insurance
benefits described in the preceding clause. Subject to the preceding sentence, in the
event that the Executive’s participation in any such plan or program is barred, GRT
and GPLP shall arrange to cause the Company to provide the Executive with benefits
substantially similar to those which the Executive was entitled to receive under such
plans and programs. Subject to the first sentence of this paragraph, at the end of the
period of coverage, the Executive shall have the option to have assigned to him at no cost
to the Executive and with no apportionment of prepaid premiums, any assignable insurance
policy owned by the Company and relating specifically to the Executive. 

 
        (d)
All options to purchase Shares now or hereafter granted to the Executive shall vest on the
day immediately prior to the date of a Change in Control of GRT and become fully
exercisable in accordance with their terms. 

 
        (e)
The Executive shall not be required to mitigate the amount of any payment provided for in
this Section 3 by seeking other employment or otherwise, nor shall the amount of any
payment or benefit provided for in this Section 3 be reduced by any compensation earned by
him as the result of employment by another employer or by retirement benefits after the
date of termination, or otherwise, except as specifically provided in this Section 3. 

 
        4.
ADDITIONAL AMOUNT. Whether or not Section 3 hereof is applicable, if in the opinion
of tax counsel selected by the Executive and reasonably acceptable to the Company, the
Executive has or will receive any compensation or recognize any income (whether or not
pursuant to this Agreement or any plan or other arrangement of the Company and whether or
not the Executive’s employment with the Company has terminated) which constitutes an
“excess of parachute payment” within the meaning of Section 280G(b)(1) of the
Internal Revenue Code of 1986, as amended (the “Code”) (or for which a tax is
otherwise payable under Section 4999 of the Code), then GPLP shall pay the Executive an
additional amount (the “Additional Amount”) equal to the sum of (i) all taxes
payable by the Executive under Section 4999 of the Code with respect to all such excess
parachute payments (or otherwise) including, without limitation, the Additional Amount,
plus (ii) all Federal, state and local income taxes for which the Executive may be liable
with respect to the Additional Amount. The amounts payable pursuant to this Section 4
shall be paid by GPLP to the Executive not later than the date of any Change in Control of
GRT, unless otherwise agreed to in writing. 

 
        5.
EXPENSES. GPLP shall pay or reimburse the Executive, as the case may be, for all
legal fees and related expenses (including the costs of experts, evidence and counsel)
paid by the Executive as a result of (i) the Executive seeking to obtain or enforce any
right or benefit provided by this Agreement or (ii) any action taken by the Company
against the Executive in enforcing its rights hereunder; provided, however, that GPLP
shall reimburse the legal fees and related expenses described in Section 5 only if and
when a final judgment has been rendered in favor of the Executive and all appeals related
to any such action have been exhausted. 

 
        6.
NO EMPLOYMENT RIGHTS OR OBLIGATIONS. Nothing contained herein shall confer upon the
Executive the right to continue in the employment or service of the Company or affect any
right that the Company may have to terminate the employment or service of the Executive at
any time for any reason. 

 
        7.
GRT GUARANTY. GRT guarantees the satisfaction of all obligations of, and the full
and prompt payment of all amounts payable by GPLP hereunder. In addition, GRT guarantees
the satisfaction of all obligations of the Company hereunder. 

 
        8
GOVERNING LAW; ARBITRATION. This Agreement shall be governed by and construed in
accordance with the internal laws of the State of Maryland, without regard to
Maryland’s conflicts of law principles. Any dispute or controversy arising under this
Agreement, or out of the interpretation hereof, or based upon the breach hereof, shall be
resolved by arbitration held at the offices of the American Arbitration Association in The
Commonwealth of Pennsylvania, in the City of Philadelphia, in accordance with the rules
and regulations of such association prevailing at the time of the demand for arbitration
by either party hereto; provided, however, that the arbitrator or arbitrators shall only
have the power and authority to interpret, and not modify or amend, the terms and
provisions hereof. Judgment upon an award rendered by the arbitrator or arbitrators may be
entered in any court having jurisdiction thereof. Notwithstanding anything contained in
this Section 8, either party shall have the right to seek preliminary injunctive relief in
any court in the City of Philadelphia in aid of (and pending the final decision) the
arbitration proceeding. 

 
        9.
ENTIRE AGREEMENT. This Agreement sets forth the entire agreement of the parties and
is intended to supersede all prior negotiations, understandings and agreements with
respect to the subject matter hereof. No provision of this Agreement may be waived or
changed, except by a writing signed by the party to be charged with such waiver or change. 

 
        10.
SUCCESSORS; BINDING AGREEMENT. This shall inure to the benefit of, be binding upon
and enforceable by GRT and GPLP, their successors and assigns, and the Executive and the
Executive’s personal or legal representatives, executors, administrators, successors,
heirs, distributees, devisees and legatees. 

 
        11.
NOTICES. All notices provided for in this Agreement shall be in writing, and shall
be deemed to have been duly given when delivered personally to the party to receive the
same, when given by telex, telegram or mailgram, or when mailed first class postage
prepaid, by registered or certified mail, return receipt requested, addressed to the party
to receive the same. All notices shall be deemed to have been given as of the date of
personal delivery, transmittal or mailing thereof. 

 
        12.
SEVERABILITY. If any provision in this Agreement is determined to be invalid, it
shall not affect the validity or enforceability of any of the other remaining provisions
hereof. 

 
        13.
GRT EXCULPATION. This Agreement and all documents, agreements, understandings and
arrangements relating to the matters described herein have been executed by the
undersigned representative of GRT in his/her capacity as an officer or trustee of GRT
which has been formed as a Maryland real estate investment trust pursuant to the Amended
and Restated Declaration of Trust of GRT, as amended, and not individually, and neither
the trustees, officers or shareholders of GRT shall be bound or have any personal
liability hereunder or thereunder. The Executive shall look solely to the assets of GRT
for satisfaction of any liability of GRT in respect to this Agreement and all documents,
agreements, understandings and arrangements relating to this transaction and will not seek
recourse or commence any action against any of the trustees, officers or shareholders or
GRT or any of their personal assets for the performance or payment of any obligation
hereunder or thereunder. The foregoing shall also apply to any future documents,
agreements, understandings, arrangements and transactions between the parties hereto. 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK] 

 
        IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
above written. 

	 	GLIMCHER
REALTY TRUST 

	 	By:  	/s/
Michael P. Glimcher   

	 	 	Michael
P. Glimcher, Chief Executive Officer & President 

	 	GLIMCHER
PROPERTIES LIMITED PARTNERSHIP 

	 	BY:  	 GLIMCHER
PROPERTIES CORPORATION,
its General Partner  

	 	By:  	/s/
Michael P. Glimcher   

	 	 	
Michael P. Glimcher, Chief Executive

Officer & President 

EXECUTIVE:

	/s/
George “Buck” Sappenfield, Sr. 

	George “Buck” Sappenfield, Sr.<PAGE>

                                                                     EXHIBIT 4.1

================================================================================

                               AVISTA CORPORATION

                                       TO

                                 CITIBANK, N.A.

                           As Successor Trustee under
                           Mortgage and Deed of Trust,
                            dated as of June 1, 1939

                            ------------------------

                      THIRTY-EIGHTH SUPPLEMENTAL INDENTURE

         Providing among other things for two series of bonds designated
                 "First Mortgage Bonds, Collateral Series 2005B"
                               Due October 1, 2032
                                       and
                 "First Mortgage Bonds, Collateral Series 2005C"
                                Due March 1, 2034

                            ------------------------

                             Dated as of May 1, 2005

================================================================================

<PAGE>

                      THIRTY-EIGHTH SUPPLEMENTAL INDENTURE

            THIS INDENTURE, dated as of the 1st day of May, 2005, between AVISTA
CORPORATION (formerly known as The Washington Water Power Company), a
corporation of the State of Washington, whose post office address is 1411 East
Mission Avenue, Spokane, Washington 99202 (the "Company"), and CITIBANK, N.A.,
formerly First National City Bank (successor by merger to First National City
Trust Company, formerly City Bank Farmers Trust Company), a national banking
association incorporated and existing under the laws of the United States of
America, whose post office address is 388 Greenwich Street, 14th Floor, New
York, 10013 New York (the "Trustee"), as Trustee under the Mortgage and Deed of
Trust, dated as of June 1, 1939 (the "Original Mortgage"), executed and
delivered by the Company to secure the payment of bonds issued or to be issued
under and in accordance with the provisions thereof, this indenture (the
"Thirty-eighth Supplemental Indenture") being supplemental to the Original
Mortgage, as heretofore supplemented and amended.

            WHEREAS pursuant to a written request of the Company made in
accordance with Section 103 of the Original Mortgage, Francis M. Pitt (then
Individual Trustee under the Mortgage, as supplemented) ceased to be a trustee
thereunder on July 23, 1969, and all of his powers as Individual Trustee have
devolved upon the Trustee and its successors alone; and

            WHEREAS by the Original Mortgage the Company covenanted that it
would execute and deliver such further instruments and do such further acts as
might be necessary or proper to carry out more effectually the purposes of the
Original Mortgage and to make subject to the lien of the Original Mortgage any
property thereafter acquired intended to be subject to the lien thereof; and

            WHEREAS the Company has heretofore executed and delivered, in
addition to the Original Mortgage, the indentures supplemental thereto, and has
issued the series of bonds, set forth in Exhibit A hereto (the Original
Mortgage, as supplemented and amended by the First through Thirty-seventh
Supplemental Indentures, being herein sometimes called the "Mortgage"); and

            WHEREAS the Original Mortgage and the First through Thirty-sixth
Supplemental Indentures have been appropriately filed or recorded in various
official records in the States of Washington, California, Idaho, Montana and
Oregon, as set forth in the First through Thirty-fourth supplemental Indentures
and the Instrument of Further Assurance, dated December 15, 2001, hereinafter
referred to; and

            WHEREAS the Thirty-fourth Supplemental Indenture, dated as of
November 1, 2004, and the Thirty-fifth, Thirty-sixth and Thirty-seventh
Supplemental Indentures, each dated as of December 1, 2004, have been
appropriately filed or recorded in the States of Washington, California, Idaho,
Montana and Oregon, as set forth in Exhibit B hereto; and

            WHEREAS for the purpose of confirming or perfecting the lien of the
Mortgage on certain of its properties, the Company has heretofore executed and
delivered a Short Form Mortgage and Security Agreement, in multiple counterparts
dated as of various dates in 1992,

<PAGE>

and such instrument has been appropriately filed or recorded in the various
official records in the States of California, Montana and Oregon; and

            WHEREAS for the purpose of confirming or perfecting the lien of the
Mortgage on certain of its properties, the Company has heretofore executed and
delivered an Instrument of Further Assurance, dated as of December 15, 2001, and
such instrument has been appropriately filed or recorded in the various official
records in the States of Washington, California, Idaho, Montana and Oregon; and

            WHEREAS in addition to the property described in the Mortgage the
Company has acquired certain other property, rights and interests in property;
and

            WHEREAS Section 8 of the Original Mortgage provides that the form of
each series of bonds (other than the First Series) issued thereunder and of the
coupons to be attached to coupon bonds of such series shall be established by
Resolution of the Board of Directors of the Company; that the form of such
series, as established by said Board of Directors, shall specify the descriptive
title of the bonds and various other terms thereof; and that such series may
also contain such provisions not inconsistent with the provisions of the
Mortgage as the Board of Directors may, in its discretion, cause to be inserted
therein expressing or referring to the terms and conditions upon which such
bonds are to be issued and/or secured under the Mortgage; and

            WHEREAS Section 120 of the Original Mortgage provides, among other
things, that any power, privilege or right expressly or impliedly reserved to or
in any way conferred upon the Company by any provision of the Mortgage, whether
such power, privilege or right is in any way restricted or is unrestricted, may
be in whole or in part waived or surrendered or subjected to any restriction if
at the time unrestricted or to additional restriction if already restricted, and
the Company may enter into any further covenants, limitations or restrictions
for the benefit of any one or more series of bonds issued thereunder, or the
Company may cure any ambiguity contained therein, or in any supplemental
indenture, by an instrument in writing executed and acknowledged by the Company
in such manner as would be necessary to entitle a conveyance of real estate to
record in all of the states in which any property at the time subject to the
lien of the Mortgage shall be situated; and

            WHEREAS the Company now desires to create two new series of bonds;
and

            WHEREAS the execution and delivery by the Company of this
Thirty-eighth Supplemental Indenture, and the terms of the bonds of the
Thirty-seventh and Thirty-eighth Series, hereinafter referred to, have been duly
authorized by the Board of Directors of the Company by appropriate Resolutions
of said Board of Directors, and all things necessary to make this Thirty-eighth
Supplemental Indenture a valid, binding and legal instrument have been
performed;

            NOW, THEREFORE, THIS INDENTURE WITNESSETH: That the Company, in
consideration of the premises and of other good and valuable consideration, the
receipt and sufficiency whereof are hereby acknowledged, hereby confirms the
estate, title and rights of the Trustee (including, without limitation, the lien
of the Mortgage on the property of the Company

                                       2

<PAGE>

subjected thereto, whether now owned or hereafter acquired) held as security for
the payment of both the principal of and interest and premium, if any, on the
bonds from time to time issued under the Mortgage according to their tenor and
effect and the performance of all the provisions of the Mortgage and of such
bonds, and, without limiting the generality of the foregoing, hereby confirms
the grant, bargain, sale, release, conveyance, assignment, transfer, mortgage,
pledge, setting over and confirmation unto the Trustee, contained in the
Mortgage, of all the following described properties of the Company, whether now
owned or hereafter acquired, namely:

            All of the property, real, personal and mixed, of every character
      and wheresoever situated (except any hereinafter or in the Mortgage
      expressly excepted) which the Company now owns or, subject to the
      provisions of Section 87 of the Original Mortgage, may hereafter acquire
      prior to the satisfaction and discharge of the Mortgage, as fully and
      completely as if herein or in the Mortgage specifically described, and
      including (without in anywise limiting or impairing by the enumeration of
      the same the scope and intent of the foregoing or of any general
      description contained in Mortgage) all lands, real estate, easements,
      servitudes, rights of way and leasehold and other interests in real
      estate; all rights to the use or appropriation of water, flowage rights,
      water storage rights, flooding rights, and other rights in respect of or
      relating to water; all plants for the generation of electricity, power
      houses, dams, dam sites, reservoirs, flumes, raceways, diversion works,
      head works, waterways, water works, water systems, gas plants, steam heat
      plants, hot water plants, ice or refrigeration plants, stations,
      substations, offices, buildings and other works and structures and the
      equipment thereof and all improvements, extensions and additions thereto;
      all generators, machinery, engines, turbines, boilers, dynamos,
      transformers, motors, electric machines, switchboards, regulators, meters,
      electrical and mechanical appliances, conduits, cables, pipes and mains;
      all lines and systems for the transmission and distribution of electric
      current, gas, steam heat or water for any purpose; all towers, mains,
      pipes, poles, pole lines, conduits, cables, wires, switch racks,
      insulators, compressors, pumps, fittings, valves and connections; all
      motor vehicles and automobiles; all tools, implements, apparatus,
      furniture, stores, supplies and equipment; all franchises (except the
      Company's franchise to be a corporation), licenses, permits, rights,
      powers and privileges; and (except as hereinafter or in the Mortgage
      expressly excepted) all the right, title and interest of the Company in
      and to all other property of any kind or nature.

            The property so conveyed or intended to be so conveyed under the
      Mortgage shall include, but shall not be limited to, the property set
      forth in Exhibit C hereto, the particular description of which is intended
      only to aid in the identification thereof and shall not be construed as
      limiting the force, effect and scope of the foregoing.

            TOGETHER WITH all and singular the tenements, hereditaments and
appurtenances belonging or in anywise appertaining to the aforesaid property or
any part thereof, with the reversion and reversions, remainder and remainders
and (subject to the provisions of Section 57 of the Original Mortgage) the
tolls, rents, revenues, issues, earnings, income, product and profits thereof,
and all the estate, right, title and interest and claim whatsoever, at law as
well

                                       3

<PAGE>

as in equity, which the Company now has or may hereafter acquire in and to the
aforesaid property and franchises and every part and parcel thereof.

            THE COMPANY HEREBY CONFIRMS that, subject to the provisions of
Section 87 of the Original Mortgage, all the property, rights, and franchises
acquired by the Company after the date thereof (except any hereinbefore or
hereinafter or in the Mortgage expressly excepted) are and shall be as fully
embraced within the lien of the Mortgage as if such property, rights and
franchises had been owned by the Company at the date of the Original Mortgage
and had been specifically described therein.

            PROVIDED THAT the following were not and were not intended to be
then or now or hereafter granted, bargained, sold, released, conveyed, assigned,
transferred, mortgaged, pledged, set over or confirmed under the Mortgage and
were, are and shall be expressly excepted from the lien and operation namely:
(l) cash, shares of stock and obligations (including bonds, notes and other
securities) not hereafter specifically pledged, paid, deposited or delivered
under the Mortgage or covenanted so to be; (2) merchandise, equipment, materials
or supplies held for the purpose of sale in the usual course of business or for
consumption in the operation of any properties of the Company; (3) bills, notes
and accounts receivable, and all contracts, leases and operating agreements not
specifically pledged under the Mortgage or covenanted so to be; (4) electric
energy and other materials or products generated, manufactured, produced or
purchased by the Company for sale, distribution or use in the ordinary course of
its business; and (5) any property heretofore released pursuant to any
provisions of the Mortgage and not heretofore disposed of by the Company;
provided, however, that the property and rights expressly excepted from the lien
and operation of the Mortgage in the above subdivisions (2) and (3) shall (to
the extent permitted by law) cease to be so excepted in the event that the
Trustee or a receiver or trustee shall enter upon and take possession of the
Mortgaged and Pledged Property in the manner provided in Article XII of the
Original Mortgage by reason of the occurrence of a Completed Default as defined
in said Article XII.

            TO HAVE AND TO HOLD all such properties, real, personal and mixed,
granted, bargained, sold, released, conveyed, assigned, transferred, mortgaged,
pledged, set over or confirmed by the Company in the Mortgage as aforesaid, or
intended so to be, unto the Trustee, and its successors, heirs and assigns
forever.

            IN TRUST NEVERTHELESS, for the same purposes and upon the same
terms, trusts and conditions and subject to and with the same provisos and
covenants as set forth in the Mortgage, this Thirty-eighth Supplemental
Indenture being supplemental to the Mortgage.

            AND IT IS HEREBY FURTHER CONFIRMED by the Company that all the
terms, conditions, provisos, covenants and provisions contained in the Mortgage
shall affect and apply to the property in the Mortgage described and conveyed,
and to the estates, rights, obligations and duties of the Company and the
Trustee and the beneficiaries of the trust with respect to said property, and to
the Trustee and its successors in the trust, in the same manner and with the
same effect as if the said property had been owned by the Company at the time of
the execution of the Original Mortgage, and had been specifically and at length
described in and conveyed to said Trustee by the Original Mortgage as a part of
the property therein stated to be conveyed.

                                       4

<PAGE>

            The Company further covenants and agrees to and with the Trustee and
its successor or successors in such trust under the Mortgage, as follows:

                                   ARTICLE I

                         THIRTY-SEVENTH SERIES OF BONDS

            SECTION 1. (I) (I) There shall be a series of bonds designated
"Collateral Series 2005B" (herein sometimes referred to as the "Thirty-seventh
Series"), each of which shall also bear the descriptive title First Mortgage
Bond, and the form thereof, which has been established by Resolution of the
Board of Directors of the Company, is set forth on Exhibit D hereto. Bonds of
the Thirty-seventh Series shall be issued as fully registered bonds in
denominations of One Thousand Dollars and, at the option of the Company, any
amount in excess thereof (the exercise of such option to be evidenced by the
execution and delivery thereof) and shall be dated as in Section 10 of the
Mortgage provided. Each bond of the Thirty-seventh Series shall mature on
October 1, 2032 and shall bear interest, be redeemable and have such other terms
and provisions as set forth below.

            (II) The Bonds of the Thirty-seventh Series shall have the following
terms and characteristics:

            (a) the Bonds of the Thirty-seventh Series shall be initially
      authenticated and delivered under the Mortgage in the aggregate principal
      amount of $66,700,000, which principal amount is equal to the outstanding
      aggregate principal amount of the 1999A Revenue Bonds;

            (b) the Bonds of the Thirty-seventh Series shall bear interest at
      the same rate or rates as shall be in effect from time to time in respect
      of the 1999A Revenue Bonds; and interest on such bonds shall be payable at
      the same times as interest is payable on the 1999A Revenue Bonds;

            (c) the principal of and interest on each bond of the Thirty-seventh
      Series payable at Maturity shall be payable upon presentation thereof at
      the office or agency of the Company in the Borough of Manhattan, The City
      of New York, in such coin or currency as at the time of payment is legal
      tender for public and private debts. The interest on each Bond of the
      Thirty-seventh Series (other than interest payable at Maturity) shall be
      payable directly to the registered owner thereof;

            (d) the Bonds of the Thirty-seventh Series shall not be redeemable,
      in whole or in part, at the option of the Company;

            (e)  (i) the Bonds of the Thirty-seventh Series are to be issued and
      delivered to the 1999A Revenue Bond Trustee in order to further evidence
      the obligations of the Company under Section 4.01 of the 1999A Loan
      Agreement;

                 (ii) in the event that any 1999A Revenue Bonds are to be
      redeemed pursuant to Section 4.03 of the 1999A Revenue Bond Indenture
      following a Determination of Taxability (as defined in the 1999A Revenue
      Bond Indenture), Bonds

                                       5

<PAGE>

      of the Thirty-seventh Series, in a principal amount equal to the principal
      amount of 1999A Revenue Bonds to be redeemed, shall be redeemed on the
      date fixed for redemption of the 1999A Revenue Bonds, at the principal
      amount thereof plus accrued interest to the redemption date;

                  (iii) in the event that all 1999A Revenue Bonds have become
      immediately due and payable pursuant to Section 9.02(a) of the 1999A
      Revenue Bond Indenture following the occurrence of an Event of Default (as
      defined in the 1999A Revenue Bond Indenture), the Bonds of the
      Thirty-seventh Series (unless already due and payable) shall thereupon be
      redeemed at the principal amount thereof plus accrued interest to the
      redemption date (the obligation to effect such redemption being rescinded
      upon the rescission of such acceleration);

                  (iv) the obligation of the Company to make any payment of the
      principal of or interest on the Bonds of the Thirty-seventh Series shall
      be deemed to have been satisfied and discharged to the extent of the sum
      of

                  (A) the amount, if any, credited under the 1999A Loan
            Agreement against the obligation of the Company to make payment in
            respect of the corresponding amount of principal of or interest on
            the 1999A Revenue Bonds; and

                  (B) the amount, if any, paid by the Company pursuant to the
            1999A Loan Agreement in respect of such corresponding amount of
            principal of or interest on the 1999A Revenue Bonds;

                  (v) the Trustee shall be entitled to presume that the
      obligation of the Company to pay the principal of and interest on the
      Bonds of the Thirty-seventh Series as the same shall become due and
      payable shall have been fully satisfied and discharged unless and until it
      shall have received a written notice from the 1999A Revenue Bond Trustee,
      signed by an authorized officer thereof, stating that the principal of
      and/or interest on the Bonds of the Thirty-seventh Series has become due
      and payable and has not been fully paid, and specifying the amount of
      funds required to make such payment;

            (f) no service charge shall be made for the registration of transfer
      or exchange of Bonds of the Thirty-seventh Series;

            (g) in the event of an application by the 1999A Revenue Bond Trustee
      for a substituted Bond of the Thirty-seventh Series pursuant to Section 16
      of the Original Mortgage, the 1999A Revenue Bond Trustee shall not be
      required to provide any indemnity or pay any expenses or charges as
      contemplated in said Section 16; and

            (h) the Bonds of the Thirty-seventh Series shall have such other
      terms as are set forth in the form of bond attached hereto as Exhibit D.

            Anything in this Supplemental Indenture or in the Bonds of the
Thirty-seventh Series to the contrary notwithstanding, if, at the time of the
Maturity of the Bonds of the Thirty-seventh Series, the stated aggregate
principal amount of such Bonds then Outstanding shall

                                       6

<PAGE>

exceed the aggregate principal amount of 1999A Revenue Bonds then outstanding,
the aggregate principal amount of such Bonds shall be deemed to have been
reduced by the amount of such excess.

            (III) For all purposes of this Article I, except as otherwise
expressly provided or unless the context otherwise requires, the terms defined
below shall have the meanings specified:

            "CITY" means the City of Forsyth, Montana, a political subdivision
      of the State of Montana.

            "1999A LOAN AGREEMENT" means the Loan Agreement, dated as of
      September 1, 1999, between the City and the Company, relating to the 1999A
      Revenue Bonds, as amended and restated in its entirety by the First
      Supplemental Loan Agreement, dated as of May 1, 2005, between the City and
      the Company.

            "1999A REVENUE BONDS" means the Pollution Control Revenue Refunding
      Bonds (Avista Corporation Colstrip Project) Series 1999A issued by the
      City.

            "1999A REVENUE BOND INDENTURE" means the Trust Indenture, dated as
      of September 1, 1999, between the City and J.P. Morgan Trust Company,
      National Association (successor in interest to Chase Manhattan Bank and
      Trust Company, National Association), trustee, relating to the 1999A
      Revenue Bonds, as amended and restated in its entirety by the First
      Supplemental Trust Indenture, dated as of May 1, 2005, between the City
      and J.P. Morgan Trust Company, National Association.

            "1999A REVENUE BOND TRUSTEE" means the trustee under the 1999A
      Revenue Bond Indenture.

            Copies of the 1999A Revenue Bond Indenture, the 1999A Loan Agreement
and the Policy are on file at the office of the 1999A Revenue Bond Trustee at
560 Mission Street, 13th Floor, San Francisco, CA 94105 and at the office of the
Company at 1411 East Mission Avenue, Spokane, WA 99202.

                                       7

<PAGE>

                                   ARTICLE II

                          THIRTY-EIGHTH SERIES OF BONDS

            SECTION 1. (I) (I) There shall be a series of bonds designated
"Collateral Series 2005C" (herein sometimes referred to as the "Thirty-eighth
Series"), each of which shall also bear the descriptive title First Mortgage
Bond, and the form thereof, which has been established by Resolution of the
Board of Directors of the Company, is set forth on Exhibit D hereto. Bonds of
the Thirty-eighth Series shall be issued as fully registered bonds in
denominations of One Thousand Dollars and, at the option of the Company, any
amount in excess thereof (the exercise of such option to be evidenced by the
execution and delivery thereof) and shall be dated as in Section 10 of the
Mortgage provided. Each bond of the Thirty-eighth Series shall mature on March
1, 2034 and shall bear interest, be redeemable and have such other terms and
provisions as set forth below.

            (II) The Bonds of the Thirty-eighth Series shall have the following
terms and characteristics:

            (a) the Bonds of the Thirty-eighth Series shall be initially
      authenticated and delivered under the Mortgage in the aggregate principal
      amount of $17,000,000, which principal amount is equal to the outstanding
      aggregate principal amount of the 1999B Revenue Bonds;

            (b) the Bonds of the Thirty-eighth Series shall bear interest at the
      same rate or rates as shall be in effect from time to time in respect of
      the 1999B Revenue Bonds; and interest on such bonds shall be payable at
      the same times as interest is payable on the 1999B Revenue Bonds;

            (c) the principal of and interest on each bond of the Thirty-eighth
      Series payable at Maturity shall be payable upon presentation thereof at
      the office or agency of the Company in the Borough of Manhattan, The City
      of New York, in such coin or currency as at the time of payment is legal
      tender for public and private debts. The interest on each Bond of the
      Thirty-eighth Series (other than interest payable at Maturity) shall be
      payable directly to the registered owner thereof;

            (d) the Bonds of the Thirty-eighth Series shall not be redeemable,
      in whole or in part, at the option of the Company;

            (e)  (i) the Bonds of the Thirty-eighth Series are to be issued and
      delivered to the 1999B Revenue Bond Trustee in order to further evidence
      the obligations of the Company under Section 4.01 of the 1999B Loan
      Agreement;

                 (ii) in the event that any 1999B Revenue Bonds are to be
      redeemed pursuant to Section 4.03 of the 1999B Revenue Bond Indenture
      following a Determination of Taxability (as defined in the 1999B Revenue
      Bond Indenture), Bonds of the Thirty-eighth Series, in a principal amount
      equal to the principal amount of 1999B Revenue Bonds to be redeemed, shall
      be redeemed on the date fixed for redemption of

                                       8

<PAGE>

      the 1999B Revenue Bonds, at the principal amount thereof plus accrued
      interest to the redemption date;

                  (iii) in the event that all 1999B Revenue Bonds have become
      immediately due and payable pursuant to Section 9.02(a) of the 1999B
      Revenue Bond Indenture following the occurrence of an Event of Default (as
      defined in the 1999B Revenue Bond Indenture), the Bonds of the
      Thirty-eighth Series (unless already due and payable) shall thereupon be
      redeemed at the principal amount thereof plus accrued interest to the
      redemption date (the obligation to effect such redemption being rescinded
      upon the rescission of such acceleration);

                  (iv) the obligation of the Company to make any payment of the
      principal of or interest on the Bonds of the Thirty-eighth Series shall be
      deemed to have been satisfied and discharged to the extent of the sum of

                  (A) the amount, if any, credited under the 1999B Loan
            Agreement against the obligation of the Company to make payment in
            respect of the corresponding amount of principal of or interest on
            the 1999B Revenue Bonds; and

                  (B) the amount, if any, paid by the Company pursuant to the
            1999B Loan Agreement in respect of such corresponding amount of
            principal of or interest on the 1999B Revenue Bonds;

                  (v) the Trustee shall be entitled to presume that the
      obligation of the Company to pay the principal of and interest on the
      Bonds of the Thirty-eighth Series as the same shall become due and payable
      shall have been fully satisfied and discharged unless and until it shall
      have received a written notice from the 1999B Revenue Bond Trustee, signed
      by an authorized officer thereof, stating that the principal of and/or
      interest on the Bonds of the Thirty-eighth Series has become due and
      payable and has not been fully paid, and specifying the amount of funds
      required to make such payment;

            (f) no service charge shall be made for the registration of transfer
      or exchange of Bonds of the Thirty-eighth Series;

            (g) in the event of an application by the 1999B Revenue Bond Trustee
      for a substituted Bond of the Thirty-eighth Series pursuant to Section 16
      of the Original Mortgage, the 1999B Revenue Bond Trustee shall not be
      required to provide any indemnity or pay any expenses or charges as
      contemplated in said Section 16; and

            (h) the Bonds of the Thirty-eighth Series shall have such other
      terms as are set forth in the form of bond attached hereto as Exhibit D.

            Anything in this Supplemental Indenture or in the Bonds of the
Thirty-eighth Series to the contrary notwithstanding, if, at the time of the
Maturity of the Bonds of the Thirty-eighth Series, the stated aggregate
principal amount of such Bonds then Outstanding shall exceed the aggregate
principal amount of 1999B Revenue Bonds then outstanding, the aggregate

                                       9

<PAGE>

principal amount of such Bonds shall be deemed to have been reduced by the
amount of such excess.

            (III) For all purposes of this Article I, except as otherwise
expressly provided or unless the context otherwise requires, the terms defined
below shall have the meanings specified:

            "CITY" means the City of Forsyth, Montana, a political subdivision
      of the State of Montana.

            "1999B LOAN AGREEMENT" means the Loan Agreement, dated as of
      September 1, 1999, between the City and the Company, relating to the 1999B
      Revenue Bonds, as amended and restated in its entirety by the First
      Supplemental Loan Agreement, dated as of May 1, 2005, between the City and
      the Company.

            "1999B REVENUE BONDS" means the Pollution Control Revenue Refunding
      Bonds (Avista Corporation Colstrip Project) Series 1999B issued by the
      City.

            "1999B REVENUE BOND INDENTURE" means the Trust Indenture, dated as
      of September 1, 1999, between the City and J.P. Morgan Trust Company,
      National Association (successor in interest to Chase Manhattan Bank and
      Trust Company, National Association), trustee, relating to the 1999B
      Revenue Bonds, as amended and restated in its entirety by the First
      Supplemental Trust Indenture, dated as of May 1, 2005, between the City
      and J.P. Morgan Trust Company, National Association.

            "1999B REVENUE BOND TRUSTEE" means the trustee under the 1999B
      Revenue Bond Indenture.

            Copies of the 1999B Revenue Bond Indenture, the 1999B Loan Agreement
and the Policy are on file at the office of the 1999B Revenue Bond Trustee at
560 Mission Street, 13th Floor, San Francisco, CA 94105 and at the office of the
Company at 1411 East Mission Avenue, Spokane, WA 99202.

                                  ARTICLE III
                                OUTSTANDING BONDS

            Upon the delivery of this Thirty-eighth Supplemental Indenture,
Bonds of the Thirty-seventh Series in the aggregate principal amount of
$66,700,000 and Bonds of the Thirty-eighth Series in the aggregate principal
amount of $17,000,000 are to be issued and will be Outstanding, in addition to
$856,350,000 aggregate principal amount of bonds of prior series Outstanding at
the date of delivery of this Thirty-eighth Supplemental Indenture.

                                       10

<PAGE>

                                   ARTICLE IV

                              PROSPECTIVE AMENDMENT

            SECTION 1. The owners of the Bonds of the Thirty-seventh and
Thirty-eighth Series shall be deemed to have consented to the amendment of
Section 28 of the Original Mortgage to add at the end thereof a new paragraph
reading as follows:

            Notwithstanding the foregoing, any Opinion of Counsel delivered
      pursuant to subdivision (7) of this Section 28, or pursuant to any other
      provision of this Indenture by reference to this Section 28, may, at the
      election of the Company, omit any or all of the statements contained in
      clause (a) of subdivision (7) if there shall have been delivered to the
      Trustee a policy of title insurance (or endorsement thereto) issued by a
      nationally recognized title insurance company, in an amount not less than
      twenty-eight percent (28%)1 of the cost or fair value to the Company
      (whichever is less) of the Property Additions made the basis of such
      application, insuring, in customary terms, against risk of loss sustained
      or incurred by the Trustee by reason of any circumstances or conditions by
      virtue of which the statements omitted from clause (a) of such Opinion of
      Counsel would not have been accurate if made.

                                   ARTICLE V

                            MISCELLANEOUS PROVISIONS

            SECTION 1. The terms defined in the Original Mortgage shall, for all
purposes of this Thirty-eighth Supplemental Indenture, have the meanings
specified in the Original Mortgage.

            SECTION 2. The Trustee hereby confirms its acceptance of the trusts
in the Original Mortgage declared, provided, created or supplemented and agrees
to perform the same upon the terms and conditions in the Original Mortgage set
forth, including the following:

            The Trustee shall not be responsible in any manner whatsoever for or
in respect of the validity or sufficiency of this Thirty-eighth Supplemental
Indenture or for or in respect of the recitals contained herein, all of which
recitals are made by the Company solely. Each and every term and condition
contained in Article XVI of the Original Mortgage, shall apply to and form part
of this Thirty-eighth Supplemental Indenture with the same force and effect as
if the same were herein set forth in full, with such omissions, variations and
insertions, if any, as may be appropriate to make the same conform to the
provisions of this Thirty-eighth Supplemental Indenture.

----------
(1) The owners of the Bonds of the Thirty-seventh and Thirty-eighth Series shall
be deemed to have consented to the amendment contained in this Section 1 of
Article II, either with the percentage shown above or with any higher
percentage.

                                       11

<PAGE>

            SECTION 3. Whenever in this Thirty-eighth Supplemental Indenture
either of the parties hereto is named or referred to, this shall, subject to the
provisions of Articles XV and XVI of the Original Mortgage be deemed to include
the successors and assigns of such party, and all the covenants and agreements
in this Thirty-eighth Supplemental Indenture contained by or on behalf of the
Company, or by or on behalf of the Trustee, or either of them, shall, subject as
aforesaid, bind and inure to the respective benefits of the respective
successors and assigns of such parties, whether so expressed or not.

            SECTION 4. Nothing in this Thirty-eighth Supplemental Indenture,
expressed or implied, is intended, or shall be construed, to confer upon, or to
give to, any person, firm or corporation, other than the parties hereto and the
holders of the bonds and coupons Outstanding under the Mortgage, any right,
remedy or claim under or by reason of this Thirty-eighth Supplemental Indenture
or any covenant, condition, stipulation, promise or agreement hereof, and all
the covenants, conditions, stipulations, promises and agreements in this
Thirty-eighth Supplemental Indenture contained by or on behalf of the Company
shall be for the sole and exclusive benefit of the parties hereto, and of the
holders of the bonds and of the coupons Outstanding under the Mortgage.

            SECTION 5. This Thirty-eighth Supplemental Indenture shall be
executed in several counterparts, each of which shall be an original and all of
which shall constitute but one and the same instrument.

            SECTION 6. The titles of the several Articles of this Thirty-eighth
Supplemental Indenture shall not be deemed to be any part thereof.

                                       12

<PAGE>

            IN WITNESS WHEREOF, on the 13th day of May, 2005, AVISTA CORPORATION
has caused its corporate name to be hereunto affixed, and this instrument to be
signed and sealed by its President or one of its Vice Presidents, and its
corporate seal to be attested by its Corporate Secretary or one of its Assistant
Corporate Secretaries for and in its behalf, all in The City of Spokane,
Washington, as of the day and year first above written; and on the 13th day of
May, 2005, CITIBANK, N.A., has caused its corporate name to be hereunto affixed,
and this instrument to be signed and sealed by its President or one of its Vice
Presidents or one of its Senior Trust Officers or one of its Trust Officers and
its corporate seal to be attested by one of its Vice Presidents or one of its
Trust Officers, all in The City of New York, New York, as of the day and year
first above written.

                               AVISTA CORPORATION

                               By: /s/ Malyn K. Malquist
                                   --------------------------------
                                             Senior Vice President

Attest:

       /s/ Susan Y. Miner
----------------------------------------
           Assistant Corporate Secretary

Executed, sealed and delivered
 by AVISTA CORPORATION
 in the presence of:

       /s/ Diane C. Thoren
----------------------------------------
       Diane C. Thoren

       /s/ Paul W. Kimball
----------------------------------------
       Paul W. Kimball

                                       13

<PAGE>

                                            CITIBANK, N.A., AS TRUSTEE

                                            By: /s/ Wafaa Orfy
                                                --------------------------------
                                                      Wafaa Orfy, Vice President

Attest:

       /s/ Nancy Forte
-------------------------------------------
     Nancy Forte, Assistant Vice President

Executed, sealed and delivered
  by CITIBANK, N.A.,
  as trustee. in the presence of:

       /s/ R. T. Kirchner
-------------------------------------------
          R. T. Kirchner, Vice President

       /s/ John J. Byrnes
-------------------------------------------
        John J. Byrnes, Vice President

                                       14

<PAGE>

STATE OF WASHINGTON      )
                         ) ss.:
COUNTY OF SPOKANE        )

            On the 13th day of May, 2005, before me personally appeared Malyn
Malquist, to me known to be a Senior Vice President of AVISTA CORPORATION, one
of the corporations that executed the within and foregoing instrument, and
acknowledged said instrument to be the free and voluntary act and deed of said
Corporation for the uses and purposes therein mentioned and on oath stated that
he was authorized to execute said instrument and that the seal affixed is the
corporate seal of said Corporation.

            On the 13th day of May, 2005, before me, Diane L. Kaufman, a Notary
Public in and for the State and County aforesaid, personally appeared Malyn
Malquist, known to me to be a Senior Vice President of AVISTA CORPORATION, one
of the corporations that executed the within and foregoing instrument and
acknowledged to me that such Corporation executed the same.

            IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year first above written.

                                                   /s/ Diane L. Kaufman
                                                --------------------------------
                                                                  Notary Public

                                                       Diane L. Kaufman
                                                        Notary Public
                                                     State of Washington
                                                  Commission Expires 7-03-08

                                       15

<PAGE>

STATE OF NEW YORK       )
                        ) ss.:
COUNTY OF NEW YORK      )

            On the 10th day of May, 2005, before me personally appeared Wafaa
Orfy, to me known to be a Vice President of CITIBANK, N.A., one of the
corporations that executed the within and foregoing instrument, and acknowledged
said instrument to be the free and voluntary act and deed of said Corporation
for the uses and purposes therein mentioned and on oath stated that he was
authorized to execute said instrument and that the seal affixed is the corporate
seal of said Corporation.

            On the 10th day of May, 2005, before me, a Notary Public in and for
the State and County aforesaid, personally appeared Wafaa Orfy, known to me to
be an Vice President of CITIBANK, N.A., one of the corporations that executed
the within and foregoing instrument and acknowledged to me that such Corporation
executed the same.

            IN WITNESS WHEREOF, I have hereunto set my hand and affixed my
official seal the day and year first above written.

                                      /s/ Nanette Murphy
                                      --------------------------------
                                                 Notary Public

                                                NANETTE MURPHY
                                                Notary Public, State of New York
                                                No. 01MU6086415
                                                Qualified in Kings County
                                                Commission Expires 1/21/07

                                       16

<PAGE>

                                                                       EXHIBIT A

                        MORTGAGE, SUPPLEMENTAL INDENTURES
                               AND SERIES OF BONDS

<TABLE>
<CAPTION>
MORTGAGE OR                                            SERIES
SUPPLEMENTAL                               -----------------------------------  PRINCIPAL AMOUNT  PRINCIPAL AMOUNT
 INDENTURE               DATED AS OF       NO.            DESIGNATION                ISSUED          OUTSTANDING
--------------        -----------------    ---    ----------------------------  ----------------  ----------------
<S>                   <C>                  <C>    <C>                           <C>               <C>
Original              June 1, 1939           1       3-1/2% Series due 1964     $  22,000,000           None
First                 October 1, 1952        2       3-3/4% Series due 1982        30,000,000           None
Second                May 1, 1953            3       3-7/8% Series due 1983        10,000,000           None
Third                 December 1, 1955                        None
Fourth                March 15, 1957                          None
Fifth                 July 1, 1957           4       4-7/8% Series due 1987        30,000,000           None
Sixth                 January 1, 1958        5       4-1/8% Series due 1988        20,000,000           None
Seventh               August 1, 1958         6       4-3/8% Series due 1988        15,000,000           None
Eighth                January 1, 1959        7       4-3/4% Series due 1989        15,000,000           None
Ninth                 January 1, 1960        8       5-3/8% Series due 1990        10,000,000           None
Tenth                 April 1, 1964          9       4-5/8% Series due 1994        30,000,000           None
Eleventh              March 1,1965          10       4-5/8% Series due 1995        10,000,000           None
Twelfth               May 1, 1966                             None
Thirteenth            August 1, 1966        11         6% Series due 1996          20,000,000           None
Fourteenth            April 1, 1970         12       9-1/4% Series due 2000        20,000,000           None
Fifteenth             May 1, 1973           13       7-7/8% Series due 2003        20,000,000           None
Sixteenth             February 1, 1975      14       9-3/8% Series due 2005        25,000,000           None
Seventeenth           November 1, 1976      15       8-3/4% Series due 2006        30,000,000           None
Eighteenth            June 1, 1980                            None
Nineteenth            January 1, 1981       16      14-1/8% Series due 1991        40,000,000           None
Twentieth             August 1, 1982        17         15-3/4% Series due          60,000,000           None
1990-1992
Twenty-First          September 1, 1983     18      13-1/2% Series due 2013        60,000,000           None
Twenty-Second         March 1, 1984         19      13-1/4% Series due 1994        60,000,000           None
Twenty-Third          December 1, 1986      20       9-1/4% Series due 2016        80,000,000           None
Twenty-Fourth         January 1, 1988       21      10-3/8% Series due 2018        50,000,000           None
Twenty-Fifth          October 1, 1989       22       7-1/8% Series due 2013        66,700,000           None
                                            23       7-2/5% Series due 2016        17,000,000           None
Twenty-Sixth          April 1, 1993         24        Secured Medium-Term         250,000,000         73,500,000
                                                        Notes, Series A
                                                   ($250,000,000 authorized)
Twenty-Seventh        January 1, 1994       25        Secured Medium-Term         161,000,000         59,000,000
                                                        Notes, Series B
                                                   ($250,000,000 authorized)
Twenty-Eighth         September 1, 2001     26     Collateral Series due 2002     220,000,000           None
Twenty-Ninth          December 1, 2001      27       7.75% Series due 2007        150,000,000        150,000,000
Thirtieth             May 1, 2002           28     Collateral Series due 2003     225,000,000           None
Thirty-First          May 1, 2003           29     Collateral Series due 2004     245,000,000           None
Thirty-Second         September 1, 2003     30       6.125% Series due 2013        45,000,000         45,000,000
Thirty-Third          May 1, 2004           31     Collateral Series due 2005     350,000,000           None
Thirty-Fourth         November 1, 2004      32       5.45% Series due 2019         90,000,000         90,000,000
Thirty-Fifth          December 1, 2004      33      Collateral Series 2004A        88,850,000         88,850,000
Thirty-Sixth          December 1, 2004      34      Collateral Series 2004B        66,700,000         66,700,000(1)
                                            35      Collateral Series 2004C        17,000,000         17,000,000(2)
Thirty-Seventh        December 1, 2004      36      Collateral Series 2004 D      350,000,000        350,000,000

</TABLE>

--------------
(1)   To be retired in connection with the delivery of a like principal amount
      of First Mortgage Bonds, Collateral Series 2005B.

(2)   To be retired in connection with the delivery of a like principal amount
      of First Mortgage Bonds, Collateral Series 2005C.

                                      A-1

<PAGE>

                                                                       EXHIBIT B

                             FILING AND RECORDING OF
                      THIRTY-FOURTH SUPPLEMENTAL INDENTURE

                             FILING IN STATE OFFICES

<TABLE>
<CAPTION>
                                                                                       FINANCING STATEMENT
  STATE                       OFFICE OF                          DATE                    DOCUMENT NUMBER
  -----                       ---------                          ----                    ---------------
<S>                       <C>                                   <C>                    <C>
Washington                Secretary of State                    1/26/05                  2005-026-8690-4
  Idaho                   Secretary of State                    1/26/05                 B-2005-0979190-4
 Montana                  Secretary of State                    1/26/05                     81315361
  Oregon                  Secretary of State                    1/26/05                      6816615
California                Secretary of State                    1/27/05                   05-7014412044
</TABLE>

                           RECORDING IN COUNTY OFFICES

<TABLE>
<CAPTION>

                                                             REAL ESTATE MORTGAGE RECORDS          FINANCING
                                                         -----------------------------------       STATEMENT
                                                           DOCUMENT                                 DOCUMENT
   COUNTY                OFFICE OF            DATE          NUMBER          BOOK        PAGE         NUMBER
   ------                ---------            ----          ------          ----        ----         ------
<S>                      <C>                <C>          <C>                <C>         <C>        <C>
 WASHINGTON
   Adams                  Auditor           1/25/05         276342           N/A         N/A          N/A
   Asotin                 Auditor           1/25/05         281342           N/A         N/A          N/A
   Benton                 Auditor           1/25/05       2005-002533        N/A         N/A          N/A
  Douglas                 Auditor           1/25/05         3081556          N/A         N/A          N/A
   Ferry                  Auditor           1/25/05         261291           N/A         N/A          N/A
  Franklin                Auditor           1/25/05         1657090          N/A         N/A          N/A
  Garfield                Auditor           1/25/05          9042            N/A         N/A          N/A
   Grant                  Auditor           1/25/05         1163161          N/A         N/A          N/A
 Klickitat                Auditor           1/26/05         1051328          N/A         N/A          N/A
   Lewis                  Auditor           1/26/05         3214672          N/A         N/A          N/A
  Lincoln                 Auditor           1/25/05      2005-0435348        86         3660          N/A
Pend Oreille              Auditor           1/25/05      2005-0279310        N/A         N/A          N/A
  Skamania                Auditor           1/27/05       2005-156048        N/A         N/A          N/A
  Spokane                 Auditor           1/28/05         5174247          N/A         N/A          N/A
  Stevens                 Auditor           1/25/05      2005-0000898        322        1521          N/A
  Thurston                Auditor           1/27/05         3705299          N/A         N/A          N/A
  Whitman                 Auditor           1/25/05         660809           N/A         N/A          N/A

   IDAHO
  Benewah                 Recorder          1/25/05         237007           N/A         N/A          N/A
</TABLE>

                                       B-1

<PAGE>

<TABLE>
<S>                   <C>                    <C>         <C>                 <C>         <C>           <C>
    Bonner                 Recorder          1/25/05         668094           N/A         N/A          N/A
   Boundary                Recorder          1/25/05         218721           N/A         N/A          N/A
  Clearwater               Recorder          1/25/05         198277           N/A         N/A          N/A
    Idaho                  Recorder          1/25/05         439741           N/A         N/A          N/A
   Kootenai                Recorder          1/25/05         1926058          N/A         N/A          N/A
    Latah                  Recorder          1/26/05         493475           N/A         N/A          N/A
    Lewis                  Recorder          1/25/05         131784           N/A         N/A          N/A
  Nez Perce                Recorder          1/25/05         713780           N/A         N/A          N/A
   Shoshone                Recorder          1/27/05         421600           N/A         N/A          N/A

   MONTANA
   Big Horn           Clerk & Recorder       1/26/05         332575           79          754          N/A
  Broadwater          Clerk & Recorder       1/26/05         149711           81          814          N/A
Golden Valley         Clerk & Recorder       1/26/05          76528            M         11547         N/A
   Meagher            Clerk & Recorder       1/26/05         114246           F60         652          N/A
   Mineral            Clerk & Recorder       1/26/05          97083           N/A         N/A          N/A
   Rosebud            Clerk & Recorder       1/26/05          97440           110         933          N/A
   Sanders            Clerk & Recorder       1/26/05          48799            1         48799         N/A
  Stillwater          Clerk & Recorder       1/26/05         320817           N/A         N/A          N/A
   Treasure           Clerk & Recorder       1/26/05          79095           M17         363          N/A
  Wheatland           Clerk & Recorder       1/26/05         102696            M         15820         N/A
 Yellowstone          Clerk & Recorder       1/26/05         3320182          N/A         N/A          N/A

    OREGON
   Douglas                 Recorder          1/27/05       2005-002485        N/A         N/A          N/A
   Jackson                 Recorder          1/27/05       2005-004794        N/A         N/A          N/A
  Josephine                Recorder          1/26/05       2005-002053        N/A         N/A          N/A
   Klamath                 Recorder          1/28/05           N/A            M05        6220          N/A
    Morrow                 Recorder          1/28/05       2005-13043         N/A         N/A          N/A
    Union                  Recorder          1/26/05        2005-0417         N/A         N/A          N/A
   Wallowa                 Recorder          1/26/05          53892          Ind.        52374         N/A

  CALIFORNIA
  El Dorado                Recorder           2/3/05     2005-0009132-00      N/A         N/A          N/A
</TABLE>

                                       B-2

<PAGE>

                             FILING AND RECORDING OF
                       THIRTY-FIFTH SUPPLEMENTAL INDENTURE

                             FILING IN STATE OFFICES

<TABLE>
<CAPTION>
                                                                                      FINANCING STATEMENT
  STATE                       OFFICE OF                           DATE                   DOCUMENT NUMBER
  -----                       ---------                           ----                   ---------------
<S>                       <C>                                   <C>                   <C>
Washington                Secretary of State                    2/24/05                  2005-055-6338-7
  Idaho                   Secretary of State                    2/24/05                 B-2005-0980577-0
 Montana                  Secretary of State                    2/24/05                     81714778
  Oregon                  Secretary of State                    2/24/05                      6840898
California                Secretary of State                    2/24/05                   05-7017148114
</TABLE>

                           RECORDING IN COUNTY OFFICES

<TABLE>
<CAPTION>
                                                       REAL ESTATE MORTGAGE RECORDS                FINANCING
                                            ------------------------------------------------       STATEMENT
                                                           DOCUMENT                                 DOCUMENT
   COUNTY                OFFICE OF            DATE          NUMBER          BOOK        PAGE         NUMBER
   ------                ---------            ----          ------          ----        ----         ------
<S>                      <C>                <C>          <C>                <C>         <C>        <C>
 WASHINGTON
   Adams                  Auditor           2/23/05         276617           N/A         N/A          N/A
   Asotin                 Auditor           2/23/05         281851           N/A         N/A          N/A
   Benton                 Auditor           2/23/05       2005-005541        N/A         N/A          N/A
  Douglas                 Auditor           2/23/05         3082433          N/A         N/A          N/A
   Ferry                  Auditor           2/23/05         261513           N/A         N/A          N/A
  Franklin                Auditor           2/23/05         1658465          N/A         N/A          N/A
  Garfield                Auditor           2/23/05          9099            N/A         N/A          N/A
   Grant                  Auditor           2/23/05         1164608          N/A         N/A          N/A
 Klickitat                Auditor           2/24/05         1051844          N/A         N/A          N/A
   Lewis                  Auditor           2/24/05         3216535          N/A         N/A          N/A
  Lincoln                 Auditor           2/23/05      2005-0435613        86         4632          N/A
Pend Oreille              Auditor           2/25/05      2005-0279677        N/A         N/A          N/A
  Skamania                Auditor           2/25/05       2005-156379        N/A         N/A          N/A
  Spokane                 Auditor            3/7/05         5187605          N/A         N/A          N/A
  Stevens                 Auditor           2/23/05      2005-0001965        323        2630          N/A
  Thurston                Auditor           2/25/03         3711539          N/A         N/A          N/A
  Whitman                 Auditor           2/23/05         661313           N/A         N/A          N/A

   IDAHO
  Benewah                 Recorder          2/23/05         237307           N/A         N/A          N/A
   Bonner                 Recorder          2/24/05         670862           N/A         N/A          N/A
</TABLE>

                                       B-3

<PAGE>

<TABLE>
<S>                   <C>                    <C>         <C>                 <C>         <C>           <C>
   Boundary                Recorder          2/23/05         219104           N/A         N/A          N/A
  Clearwater               Recorder          2/23/05         198488           N/A         N/A          N/A
    Idaho                  Recorder          2/23/05         440222           N/A         N/A          N/A
   Kootenai                Recorder          2/24/05         1931514          N/A         N/A          N/A
    Latah                  Recorder          2/23/05         494014           N/A         N/A          N/A
    Lewis                  Recorder          2/23/05         131869           N/A         N/A          N/A
  Nez Perce                Recorder          2/23/05         714612           N/A         N/A          N/A
   Shoshone                Recorder          2/23/05         422045           N/A         N/A          N/A

   MONTANA
   Big Horn           Clerk & Recorder       2/24/05         332697           80          159          N/A
  Broadwater          Clerk & Recorder       2/24/05         149896           82          434          N/A
Golden Valley         Clerk & Recorder       2/25/05          76560            M         11597         N/A
   Meagher            Clerk & Recorder       2/24/05         114388           F60         902          N/A
   Mineral            Clerk & Recorder       2/24/05          97222           N/A         N/A          N/A
   Rosebud            Clerk & Recorder       2/25/05          97586           111         89           N/A
   Sanders            Clerk & Recorder       2/24/05          49098            1         49098         N/A
  Stillwater          Clerk & Recorder       2/24/05         321247           N/A         N/A          N/A
   Treasure           Clerk & Recorder       2/24/05          79136           17          403          N/A
  Wheatland           Clerk & Recorder       2/24/05         103019            M         15896         N/A
 Yellowstone          Clerk & Recorder       2/25/05         3323358          N/A         N/A          N/A

    OREGON
   Douglas                 Recorder          2/24/05       2005-004967        N/A         N/A          N/A
   Jackson                 Recorder          2/28/05       2005-010718        N/A         N/A          N/A
  Josephine                Recorder          2/25/05       2005-004553        N/A         N/A          N/A
   Klamath                 Recorder          2/28/05           N/A            M05        12752         N/A
    Morrow                 Recorder          2/24/05       2005-13243         N/A         N/A          N/A
    Union                  Recorder          2/24/05        2005-0892         N/A         N/A          N/A
   Wallowa                 Recorder          2/24/05          54153          Mrtg.       52541         N/A

  CALIFORNIA
  El Dorado                Recorder           3/2/05     2005-0016743-00      N/A         N/A          N/A
</TABLE>

                                       B-4

<PAGE>

                             FILING AND RECORDING OF
                       THIRTY-SIXTH SUPPLEMENTAL INDENTURE

                             FILING IN STATE OFFICES

<TABLE>
<CAPTION>
                                                                                      FINANCING STATEMENT
  STATE                       OFFICE OF                           DATE                  DOCUMENT NUMBER
  -----                       ---------                           ----                  ---------------
<S>                       <C>                                   <C>                   <C>
Washington                Secretary of State                    2/24/05                  2005-055-6360-8
  Idaho                   Secretary of State                    2/24/05                 B-2005-0980578-9
 Montana                  Secretary of State                    2/24/05                     81715042
  Oregon                  Secretary of State                    2/24/05                      6840909
California                Secretary of State                    2/24/05                   05-7017148972
</TABLE>

                      RECORDING IN COUNTY OFFICES

<TABLE>
<CAPTION>
                                                       REAL ESTATE MORTGAGE RECORDS                FINANCING
                                            ------------------------------------------------       STATEMENT
                                                           DOCUMENT                                 DOCUMENT
   COUNTY                OFFICE OF            DATE          NUMBER          BOOK        PAGE         NUMBER
   ------                ---------            ----          ------          ----        ----         ------
<S>                      <C>                <C>          <C>                <C>         <C>        <C>
 WASHINGTON
   Adams                  Auditor           2/23/05         276618           N/A         N/A          N/A
   Asotin                 Auditor           2/23/05         281852           N/A         N/A          N/A
   Benton                 Auditor           2/23/05       2005-005542        N/A         N/A          N/A
  Douglas                 Auditor           2/23/05         3082434          N/A         N/A          N/A
   Ferry                  Auditor           2/23/05         261514           N/A         N/A          N/A
  Franklin                Auditor           2/23/05         1658466          N/A         N/A          N/A
  Garfield                Auditor           2/23/05          9100            N/A         N/A          N/A
   Grant                  Auditor           2/23/05         1164609          N/A         N/A          N/A
 Klickitat                Auditor           2/24/05         1051845          N/A         N/A          N/A
   Lewis                  Auditor           2/24/05         3216536          N/A         N/A          N/A
  Lincoln                 Auditor           2/23/05      2005-0435614        86         4661          N/A
Pend Oreille              Auditor           2/25/05      2005-0279678        N/A         N/A          N/A
  Skamania                Auditor           2/25/05       2005-156380        N/A         N/A          N/A
  Spokane                 Auditor            3/7/05         5187604          N/A         N/A          N/A
  Stevens                 Auditor           2/23/05      2005-0001966        323        2659          N/A
  Thurston                Auditor           2/25/03         3711540          N/A         N/A          N/A
  Whitman                 Auditor           2/23/05         661314           N/A         N/A          N/A

   IDAHO
  Benewah                 Recorder          2/23/05         237308           N/A         N/A          N/A
</TABLE>

                                       B-5

<PAGE>

<TABLE>
<S>                   <C>                    <C>         <C>                 <C>         <C>           <C>
    Bonner                 Recorder          2/24/05         670863           N/A         N/A          N/A
   Boundary                Recorder          2/23/05         219105           N/A         N/A          N/A
  Clearwater               Recorder          2/23/05         198489           N/A         N/A          N/A
    Idaho                  Recorder          2/23/05         440223           N/A         N/A          N/A
   Kootenai                Recorder          2/24/05         1931515          N/A         N/A          N/A
    Latah                  Recorder          2/23/05         494015           N/A         N/A          N/A
    Lewis                  Recorder          2/23/05         131870           N/A         N/A          N/A
  Nez Perce                Recorder          2/23/05         714613           N/A         N/A          N/A
   Shoshone                Recorder          2/23/05         422046           N/A         N/A          N/A

   MONTANA
   Big Horn           Clerk & Recorder       2/24/05         332698           80          188          N/A
  Broadwater          Clerk & Recorder       2/24/05         149897           82          463          N/A
Golden Valley         Clerk & Recorder       2/25/05          76561            M         11625         N/A
   Meagher            Clerk & Recorder       2/24/05         114389           F60         931          N/A
   Mineral            Clerk & Recorder       2/24/05          97223           N/A         N/A          N/A
   Rosebud            Clerk & Recorder       2/25/05          97587           111         118          N/A
   Sanders            Clerk & Recorder       2/24/05          49099            1         49099         N/A
  Stillwater          Clerk & Recorder       2/24/05         321248           N/A         N/A          N/A
   Treasure           Clerk & Recorder       2/24/05          79137           17          432          N/A
  Wheatland           Clerk & Recorder       2/24/05         103020            M         15924         N/A
 Yellowstone          Clerk & Recorder       2/25/05         3323359          N/A         N/A          N/A

    OREGON
   Douglas                 Recorder          2/24/05       2005-004968        N/A         N/A          N/A
   Jackson                 Recorder          2/28/05       2005-010719        N/A         N/A          N/A
  Josephine                Recorder          2/25/05       2005-004554        N/A         N/A          N/A
   Klamath                 Recorder          2/28/05           N/A            M05        12781         N/A
    Morrow                 Recorder          2/24/05       2005-13244         N/A         N/A          N/A
    Union                  Recorder          2/24/05        2005-0893         N/A         N/A          N/A
   Wallowa                 Recorder          2/24/05          54154          Mrtg.       52542         N/A

  CALIFORNIA
  El Dorado                Recorder           3/2/05     2005-0016744-00      N/A         N/A          N/A
</TABLE>

                                       B-6

<PAGE>

                             FILING AND RECORDING OF
                      THIRTY-SEVENTH SUPPLEMENTAL INDENTURE

                             FILING IN STATE OFFICES

<TABLE>
<CAPTION>
                                                                                       FINANCING STATEMENT
  STATE                       OFFICE OF                           DATE                   DOCUMENT NUMBER
  -----                       ---------                           ----                   ---------------
<S>                       <C>                                   <C>                    <C>
Washington                Secretary of State                    2/24/05                  2005-055-6361-5
  Idaho                   Secretary of State                    2/24/05                 B-2005-0980576-1
 Montana                  Secretary of State                    2/24/05                     81715668
  Oregon                  Secretary of State                    2/24/05                      6840676
California                Secretary of State                    2/24/05                   05-7017149488
</TABLE>

                           RECORDING IN COUNTY OFFICES

<TABLE>
<CAPTION>
                                                       REAL ESTATE MORTGAGE RECORDS                FINANCING
                                            ------------------------------------------------       STATEMENT
                                                           DOCUMENT                                 DOCUMENT
   COUNTY                OFFICE OF            DATE          NUMBER          BOOK        PAGE         NUMBER
   ------                ---------            ----          ------          ----        ----         ------
<S>                      <C>                <C>          <C>                <C>         <C>        <C>
 WASHINGTON
   Adams                  Auditor           2/23/05         276619           N/A         N/A          N/A
   Asotin                 Auditor           2/23/05         281853           N/A         N/A          N/A
   Benton                 Auditor           2/23/05       2005-005543        N/A         N/A          N/A
  Douglas                 Auditor           2/23/05         3082435          N/A         N/A          N/A
   Ferry                  Auditor           2/23/05         261515           N/A         N/A          N/A
  Franklin                Auditor           2/23/05         1658467          N/A         N/A          N/A
  Garfield                Auditor           2/23/05          9101            N/A         N/A          N/A
   Grant                  Auditor           2/23/05         1164610          N/A         N/A          N/A
 Klickitat                Auditor           2/24/05         1051846          N/A         N/A          N/A
   Lewis                  Auditor           2/24/05         3216537          N/A         N/A          N/A
  Lincoln                 Auditor           2/23/05      2005-0435615        86         4686          N/A
Pend Oreille              Auditor           2/25/05      2005-0279679        N/A         N/A          N/A
  Skamania                Auditor           2/25/05       2005-156381        N/A         N/A          N/A
  Spokane                 Auditor            3/7/05         5187603          N/A         N/A          N/A
  Stevens                 Auditor           2/23/05      2005-0001967        323        2684          N/A
  Thurston                Auditor           2/25/05         3711541          N/A         N/A          N/A
  Whitman                 Auditor           2/23/05         661315           N/A         N/A          N/A

   IDAHO
  Benewah                 Recorder          2/23/05         237309           N/A         N/A          N/A
</TABLE>

                                      B-7

<PAGE>

<TABLE>
<S>                   <C>                    <C>         <C>                 <C>         <C>          <C>
    Bonner                 Recorder          2/24/05         670864           N/A         N/A          N/A
   Boundary                Recorder          2/23/05         219106           N/A         N/A          N/A
  Clearwater               Recorder          2/23/05         198490           N/A         N/A          N/A
    Idaho                  Recorder          2/23/05         440224           N/A         N/A          N/A
   Kootenai                Recorder          2/24/05         1931516          N/A         N/A          N/A
    Latah                  Recorder          2/23/05         494016           N/A         N/A          N/A
    Lewis                  Recorder          2/23/05         131871           N/A         N/A          N/A
  Nez Perce                Recorder          2/23/05         714614           N/A         N/A          N/A
   Shoshone                Recorder          2/23/05         422047           N/A         N/A          N/A

   MONTANA
   Big Horn           Clerk & Recorder       2/24/05         332699           80          213          N/A
  Broadwater          Clerk & Recorder       2/24/05         149898           82          488          N/A
Golden Valley         Clerk & Recorder       2/25/05          76562            M         11650         N/A
   Meagher            Clerk & Recorder       2/24/05         114390           F60         956          N/A
   Mineral            Clerk & Recorder       2/24/05          97224           N/A         N/A          N/A
   Rosebud            Clerk & Recorder       2/25/05          97588           111         143          N/A
   Sanders            Clerk & Recorder       2/24/05          49100            1         49100         N/A
  Stillwater          Clerk & Recorder       2/24/05         321249           N/A         N/A          N/A
   Treasure           Clerk & Recorder       2/24/05          79138           17          457          N/A
  Wheatland           Clerk & Recorder       2/24/05         103021            M         15948         N/A
 Yellowstone          Clerk & Recorder       2/25/05         3323360          N/A         N/A          N/A

    OREGON
   Douglas                 Recorder          2/24/05       2005-004969        N/A         N/A          N/A
   Jackson                 Recorder          2/28/05       2005-010720        N/A         N/A          N/A
  Josephine                Recorder          2/25/05       2005-004555        N/A         N/A          N/A
   Klamath                 Recorder          2/28/05           N/A            M05        12806         N/A
    Morrow                 Recorder          2/24/05       2005-13245         N/A         N/A          N/A
    Union                  Recorder          2/24/05        2005-0894         N/A         N/A          N/A
   Wallowa                 Recorder          2/24/05          54155          Mrtg        52543         N/A

  CALIFORNIA
  El Dorado                Recorder           3/2/05     2005-0016745-00      N/A         N/A          N/A
</TABLE>

                                       B-8

<PAGE>

                                                                       EXHIBIT C

                               PROPERTY ADDITIONS

(1) BONNER COUNTY, IDAHO: "CABINET GORGE MITIGATION"; PROPERTY NO. ID-7B-251;
GRANTOR: INLAND NORTHWEST LAND TRUST:

      PARCEL 1:

      The West Half of the Northwest Quarter of the Southwest Quarter (W-1/2
      NW-1/4 SW-1/4) of Section 11, Township 57 North, Range 1 East, Boise
      Meridian, Bonner County, Idaho.

      PARCEL 2:

      The East Half of the Northwest Quarter of the Southwest Quarter (E-1/2
      NW-1/4 SW-1/4) of Section 11, Township 57 North, Range 1 East, Boise
      Meridian, Bonner County, Idaho.

      PARCEL 3:

      A parcel of land lying in a portion of the South Half (S-1/2) of Section
      11, Township 57 North, Range 1 East, Boise Meridian, Bonner County, Idaho,
      more particularly described as follows:

      Commencing at the center quarter corner of said Section 11, a found 3-1/4"
      aluminum cap, monumenting said corner, which bears North 00(0)00'02" East,
      2631.61 feet from the South quarter corner of said Section 11, a found
      3-1/4" aluminum cap, monumenting said corner;

      thence South 89(0)51'30" West, 452.96 feet, along the East-West centerline
      of said Section 11, to the Point of Beginning;

      thence continuing South 89(0)51'30" West, 878.15 feet to the Center-West
      1/16th corner;

      thence South 00(0)02'51" East, 1689.29 feet along the North-South West
      1/16th line to a point in the centerline of an existing 40 foot wide road
      easement (Trestle Creek Road);

      thence Northeasterly along said existing road centerline the following two
      (2) courses:

      1. Northeasterly along a 1000.00 foot radius curve right (the chord of
      which bears North 54(0)43'32" East, 182.81 feet) through a central angle
      of 10(0)29'20", an arc distance of 183.06 feet;

      2. North 59(0)58'12" East, 142.21 feet;

      thence leaving said existing road centerline, South 21(0)31'11" East,
      107.59 feet;

      thence South 32(0)15'27" East, 40 feet, more or less, to the thread of
      Trestle Creek;

                                      C-1

<PAGE>

      thence Northeasterly along said thread of Trestle Creek, 612 feet, more or
      less, to a point in a line which bears South from the Point of Beginning;

      thence leaving said thread of Trestle Creek, North 1408 feet, more or
      less, to the Point of Beginning.

      TOGETHER WITH AND SUBJECT TO a 10 foot wide utility easement lying on each
      side, parallel with and adjoining to the existing 40 foot wide ingress and
      egress road easement (Trestle Creek Road)

      PARCEL 4:

      A tract of land located in a portion of Section 11, Township 57 North,
      Range 1 East of the Boise Meridian, Bonner County, Idaho, more
      particularly described as follows:

      Commencing at the Southwest corner of said Section 11;

      thence North along the West line of Section 11, a distance of 204.00 feet
      to corner number 2 of that parcel of land described in Instrument No.
      86437, records of Bonner County, Idaho, said point being the True Point of
      Beginning;

      thence continuing North along said West line of Section 11, a distance of
      76.83 feet;

      thence North 82(0)19'15" East, a distance of 87.33 feet;

      thence South 24(0)42'57" East, a distance of 119.65 feet;

      thence South 31(0)13'40" West, a distance of 128.42 feet to corner number
      4 of said parcel;

      thence North a distance of 130.00 feet to corner number 3 of said parcel;

      thence West, a distance of 70.00 feet to the True Point of Beginning.

      LESS the Forest Service Road right of way.

      PARCEL 5:

      A parcel of land in Government Lot 9, Section 10, Township 57 North, Range
      1 East, Boise Meridian, Bonner County, Idaho, described as follows:

      Beginning at the position of the Section corner common to Sections 10, 11,
      14 and 15, from which a Reference Monument (brass cap on an iron pipe)
      bears North 12(0)55'31" East, 15.51 feet;

      thence North 0(0)03'30" West along the Section line common to Sections 10
      and 11, 201.39 feet to corner 1 and the True Point of Beginning, a 3/4" x
      30" rebar with a Standard Forest Service Aluminum Cap, marked USDA-FS S10
      COR 1 STA ID 150 PLS 4343 1994;

                                      C-2

<PAGE>

      thence North 0(0)03'30" West along the same line, 79.44 feet to corner 2,
      a 3/4" x 30" rebar with a Standard Forest ServicE Aluminum Cap, marked
      USDA-FS S10 COR 2 STA ID 150 PLS 4343 1994;

      thence South 89(0)20'08" West, 70.99 feet to corner 3, a 3/4" x 30" rebar
      with a Standard Forest Service Aluminum Cap marked USDA-FS S10 COR 3 STA
      ID 150 PLS 4343 1994;

      thence South 28(0)30'27" East, 104.93 feet to corner 4, a 3/4" x 30" rebar
      with a Standard Forest Service Aluminum Cap marked USDA-FS S10 COR 4 STA
      ID 150 PLS 4343 1994;

      thence North 57(0)04'14" East, 25.00 feet to corner 1 and the True Point
      of Beginning.

      PARCEL 6:

      The Southwest Quarter of the Southeast Quarter (SW-1/4 SE-1/4) of Section
      3, Township 53 North, Range 1 West, Boise Meridian, Bonner County, Idaho.

      EXCEPT a tract of land in the Southwest Quarter of the Southeast Quarter
      (SW-1/4 SE-1/4) of said Section 3, more fully described as follows:

      Beginning at the South quarter corner of said Section 3, thence North
      89(0)52'50" East, 145.3 feet:

      thence North 31(0)43'20" East, 1546.6 feet;

      thence South 8(0)00'40" East, 149.7 feet to the True Point of Beginning;

      thence South 81(0)59'20" West, 10.0 feet;

      thence South 31(0)12'20" West, 44.3 feet;

      thence South 8(0)00'40" East, 215.7 feet;

      thence North 81(0)59'20" East, 100.00 feet;

      thence North 8(0)00'40" West, 250.0 feet;

      thence South 81(0)59'20" West, 62.0 feet, more or less, to the True Point
      of Beginning;

      ALSO EXCEPT a tract Beginning at the Southeast corner of the Southwest
      quarter of the Southeast quarter (SW-1/4 SE-1/4) of Section 3, Township 53
      North, Range 1 West, Boise Meridian, Bonner County, Idaho;

      thence North along the East line of said 1/16th section, a distance of
      1060 feet;

      thence West to the center of South Gold Creek;

                                      C-3

<PAGE>

      thence Southerly along the centerline of said creek to the South line of
      said 1/16th section;

      thence East along the South line of said 1/16th section to the Point of
      Beginning;

      ALSO EXCEPT commencing at the Southwest corner of the Southwest Quarter of
      the Southeast Quarter (SW-1/4 SE-1/4) of Section 3, Township 53 North,
      Range 1 West, Boise Meridian, Bonner County, Idaho;

      thence North along the West line of said 1/16th section a distance of 860
      feet;

      thence East to the center of South Gold Creek:

      thence Southerly along the centerline of said South Gold Creek to the
      South line of said 1/16th section;

      thence West along the South line of said 1/16th section to the Point of
      Beginning.

      ALSO EXCEPT an "L" shaped portion of land in Section 3, Township 53 North,
      Range 1 West, Boise Meridian, Bonner County, Idaho, generally located in
      the Southeast corner of Lot 5, and the Northeast corner of the Southeast
      Quarter of the Southwest Quarter (SE-1/4 SW-1/4);

      And the Northwest corner of the Southwest Quarter of the Southeast Quarter
      (SW-1/4 SE-1/4) more fully described as follows:

      Beginning at that point at which the South end of the East boundary line
      of Lot 5 meets the West end of the North boundary line of the Southwest
      Quarter of the Southeast Quarter (SW-1/4 SE-1/4) and proceeding North
      along said East line of Lot 5 for a distance of 310 feet;

      thence West at a right angle from said East line of Lot 5 for a distance
      of 188 feet;

      thence South parallel with the East line of Lot 5 and with the Northerly
      portion of the West boundary line of the Southwest Quarter of the
      Southeast Quarter (SW-1/4 SE-1/4) for a distance of 370 feet; the last 60
      feet approximately of said line being located in the Southeast Quarter of
      said Southwest Quarter (SE-1/4 SW-1/4);

      thence East parallel with the South line of Lot 5 and the North line of
      the Southwest Quarter or the Southeast Quarter (SW-1/4 SE-1/4) to the
      midpoint of South Gold Creek a distance of approximately 650 feet;

      thence North along the midpoint line of the bed of South Gold Creek to the
      North boundary line of the Southwest Quarter of the Southeast Quarter
      (SW-1/4 SE-1/4);

      thence West along the North boundary line of the Southwest Quarter of the
      Southeast Quarter (SW-1/4 SE-1/4) to the True Point of Beginning, the
      juncture of the South end of the

                                      C-4

<PAGE>

      East boundary line of Lot 5 and the West end of the North boundary line of
      the Southwest Quarter of the Southeast Quarter (SW-1/4 SE-1/4).

      PARCEL 7:

      Commencing at the Southeast corner of the Northwest Quarter of the
      Northeast Quarter (NW-1/4 NE-1/4) of Section 10, Township 53 North, Range
      1 West, Boise Meridian, Bonner County, Idaho;

      thence North along the East line of said 1/16th section a distance of 1320
      feet, more or less, to the Northeast corner of said 1/16th section;

      thence West along the North line of said 1/16th section to the center of
      South Gold Creek;

      thence Southerly along the center line of said creek to the South line of
      said 1/16th section;

      thence East along the South line of said 1/16th section to the Point of
      Beginning.

      PARCEL 8:

      A triangular shaped parcel of land being a portion of Government Lot 5,
      Section 3, Township 53 North, Range 1 West, Boise Meridian, Bonner County,
      Idaho and being described as follows:

      Commencing at the Southeast corner of Government Lot 5;

      thence North along the East line thereof 1435 feet, more or less, to a
      point on the Southwesterly line of the plat of Lakeview according to the
      plat thereof, recorded in Book "B" of Plats, page 59, records of Bonner
      County, Idaho;

      thence North 69(0)07'00" West, 764 feet, more or less, to an aluminum pipe
      and cap on the Southeast line of North Gold Creek Lime Placer Survey No.
      762;

      thence parallel to the West line of Government Lot 5, South 00(0)15'29"
      West, a distance of 588.01 feet to a found iron roD and PLS 4194 cap;

      thence parallel to the South line of Government Lot 5, South 89(0)50'40"
      East, a distance of 111.91 feet to the Point of Beginning;

      thence continuing along a line parallel to the South line of Government
      Lot 5, South 89(0)50'40" East, a distance of 111.91 feet to a found iron
      rod and PLS 4194 cap;

      thence along a line parallel to the West line of Government Lot 5, South
      00(0)15'29" West, a distance of 111.91 feet;

      thence North 44(0)47'35" West, a distance of 158.13 feet to the Point of
      Beginning.

                                      C-5

<PAGE>

      AND a portion of Government Lot 5, Section 3, Township 53 North, Range 1
      West, Boise Meridian, Bonner County, Idaho, more fully described as
      follows:

      Beginning at the Southeast corner of Government Lot 5;

      thence North 310 feet along the East line of said Government Lot to the
      True Point of Beginning;

      thence North along said East line 1125 feet, more or less, to a point on
      the Southwest line of the plat of Lakeview;

      thence North 69(0)07'00" West, 764 feet, more or less, to a point on the
      Southeast line of North Gold Creek Lime Placer Survey #762;

      thence South 54(0)30'00" West, 200.6 feet to the Southeast corner of South
      Gold Creek Lime Placer Survey #761;

      thence South 69(0)38'00" West along the Southeast line of Survey #761, a
      distance of 227 feet;

      thence South, parallel to the West line of Government Lot 5, a distance of
      392 feet;

      thence West, parallel to the South line of Government Lot 5, a distance of
      130 feet, more or less, to a point which is 100 feet East of the West line
      of said Government Lot;

      thence South, parallel to the West line of said Government Lot, 560 feet;

      thence South 45(0)00'00" East, 792 feet, more or less, to a point on the
      South line of said Government Lot;

      thence East along said South line 472 feet, more or less, to a point which
      is 188 feet West of the Southeast corner of Government Lot 5;

      thence North, parallel to the East line of said Government Lot, 310 feet;

      thence East 188 feet to the True Point of Beginning.

      EXCEPT that portion of Government Lot 5 in Section 3, Township 53 North,
      Range 1 West, Boise Meridian, Bonner County, Idaho, described as follows:

      Beginning at the Southeast corner of said Lot 5;

      Thence North along the East line thereof 1435 feet, more or less, to a
      point on the Southwesterly line of the plat of Lakeview, according to the
      plat thereof, recorded in Book 1 of Plats, Page 44, records of Bonner
      County, Idaho;

      Thence North 69(0)07'00" West, 764 feet, more or less, to a point on the
      Southeast line of North Gold Creek Lime Placer Survey No. 762, said point
      being the True Point of Beginning;

                                      C-6

<PAGE>

      thence South 54(0)30'00" West, 200.6 feet to the Southeast corner of South
      Gold Creek Lime Placer Survey #761;

      thence South 69(0)38'00" West along the Southeast line of said Survey No.
      761, a distance of 227 feet;

      thence South, parallel to the West line of said Government Lot 5, a
      distance of 392 feet;

      thence West, parallel to the South line of said Lot 5, a distance of 130
      feet, more or less, to a point hereinafter referred to as Point A, that is
      100 feet East of the West line of said Lot 5;

      thence South, parallel to said West line, 560 feet;

      thence South 45(0)00'00" East, 792 feet, more or less, to a point on the
      South line of said Lot 5;

      thence East along said South line 172 feet;

      thence North, parallel to the West line of said Lot 5, a distance of 1120
      feet, more or less, to a point in a line running through said Point A,
      that is parallel with the South line of said Government Lot 5;

      thence West, 240 feet, more or less, to a point in a line running through
      the True Point of Beginning, that is parallel with the West line of said
      Government Lot 5;

      thence North along said line 590 feet, more or less, to the True Point of
      Beginning.

      ALSO EXCEPTING a triangular shaped parcel of land being a portion of
      Government Lot 5, Section 3, Township 53 North, Range 1 West, Boise
      Meridian, Bonner County, Idaho and being described as follows:

      Commencing at the Southeast corner of Government Lot 5;

      thence North along the East line thereof, 1435 feet, more or less, to a
      point on the Southwesterly line of the plat of Lakeview according to the
      plat thereof, recorded in Book "B" of Plats, Page 59, records of Bonner
      County, Idaho;

      thence North 69(0)07'00" West, 764 feet, more or less, to an aluminum pipe
      and cap on the Southeast line of North Gold Creek Lime Placer Survey No.
      762;

      thence parallel to the West line of Government Lot 5, South 00(0)15'29"
      West, a distance of 476.10 feet to the Point of Beginning;

      thence continuing parallel to the West line of Government Lot 5, South
      00(0)15'29" West, a distance of 111.91 feet to a found iron rod and PLS
      4194 cap;

      thence along a line parallel to the South line of Government Lot 5, South
      89(0)50'40" East, a distance of 111.91 feet;

                                      C-7

<PAGE>

      thence North 44(0)47'35" West, a distance of 158.13 feet to the Point of
      Beginning.

(2) BONNER COUNTY, IDAHO: "SAGLE 115KV SUBSTATION"; PROPERTY NO. ID-7B-042;
GRANTOR: ELMO AND GLORIA J. WARREN; PTN S/2 S/2, SECTION 10, TOWNSHIP 56 NORTH,
RANGE 2 WEST, B.M.

(3) BONNER COUNTY, IDAHO: "CABINET GORGE MITIGATION"; PROPERTY NO. ID-7B-251;
GRANTOR: SAGE GOODWIN PERKINS AND AHNA GOODWIN SMALL; LOT 12, BLOCK 10, GRANITE
CREEK PROPERTIES IN UNIT 2, SECTION 25, TOWNSHIP 55 NORTH, RANGE 1 WEST, B.M.

                                       C-8

<PAGE>

                                                                       EXHIBIT D

                                 (FORM OF BOND)

                    THIS BOND IS NON-TRANSFERABLE, EXCEPT TO
                A SUCCESSOR TRUSTEE UNDER THE 1999_ REVENUE BOND
                         INDENTURE (AS DEFINED HEREIN).

                               AVISTA CORPORATION

                              First Mortgage Bond,
                             Collateral Series 2005_

REGISTERED                                                            REGISTERED

NO. _________________                                       $___________________

            AVISTA CORPORATION, a corporation of the State of Washington
(hereinafter called the Company), for value received, hereby promises to pay to

, as trustee under the 1999_ Revenue Bond Indenture (as defined in the
Supplemental Indenture hereinafter referred to) or registered assigned
on____________________

                                                                         DOLLARS

and to pay the registered owner hereof interest thereon at the respective rate
or rates as shall be in effect from time to time in respect of the 1999_ Revenue
Bonds (as defined in the Supplemental Indenture hereinafter referred to) until
the Company's obligation with respect to the payment of such principal shall
have been discharged; and such interest shall be payable at the same times as
interest is payable on the 1999_ Revenue Bonds. The principal of and premium, if
any, and interest on this bond payable at Maturity (as hereinafter defined)
shall be payable upon presentation hereof at the office or agency of the Company
in the Borough of Manhattan, The City of New York, in such coin or currency of
the United States of America as at the time of payment is legal tender for
public and private debts. The interest on this bond (other than interest payable
at Maturity) shall be paid directly to the registered owner hereof. Interest
payable at Maturity shall be paid to the person to whom principal shall be paid.
As used herein, the term "Maturity" shall mean the date on which the principal
of this bond becomes due and payable, whether at stated maturity, upon
redemption or acceleration, or otherwise.

            This bond is one of an issue of bonds of the Company issuable in
series and is one of a series known as its First Mortgage Bonds, Collateral
Series 2005_, all bonds of all such issue of series being issued and issuable
under and equally secured (except insofar as any sinking or other fund,
established in accordance with the provisions of the Mortgage hereinafter
mentioned, may afford additional security for the bonds of any particular
series) by a Mortgage and Deed of Trust, dated as of June 1, 1939, executed by
the Company (formerly known as The Washington Water Power Company) to City Bank
Farmers Trust Company and Ralph E. Morton, as Trustees (Citibank, N.A.,
successor Trustee to both said Trustees). Such mortgage

                                      D-1

<PAGE>

and deed of trust has been amended and supplemented by various supplemental
indentures, including the Thirty-eighth Supplemental Indenture, dated as of May
1, 2005 (the "Thirty-eighth Supplemental Indenture") and, as so amended and
supplemented, is herein called the "Mortgage". Reference is made to the Mortgage
for a description of the property mortgaged and pledged, the nature and extent
of the security, the rights of the holders of the bonds and of the Trustee in
respect thereof, the duties and immunities of the Trustee and the terms and
conditions upon which the bonds are and are to be secured and the circumstances
under which additional bonds may be issued. By its acceptance of this bond, the
holder hereof is deemed to have consented and agreed to all of the terms and
provisions of the Mortgage. The Mortgage may be modified or altered by
affirmative vote of the holders of at least 60% in principal amount of the bonds
outstanding under the Mortgage, considered as one class, or, if the rights of
one or more, but less than all, series of bonds then outstanding are to be
affected, then such modification or alteration may be effected with the
affirmative vote only of 60% in principal amount of the bonds outstanding of the
series so to be affected, considered as one class, and, furthermore, for limited
purposes, the Mortgage may be modified or altered without any consent or other
action of holders of any series of bonds. No modification or alteration shall,
however, permit an extension of the Maturity of the principal of, or interest
on, this bond or a reduction in such principal or the rate of interest hereon or
any other modification in the terms of payment of such principal or interest or
the creation of any lien equal or prior to the lien of the Mortgage or deprive
the holder of a lien on the mortgaged and pledged property without the consent
of the holder hereof.

            The bonds of this series are not redeemable, in whole or in part, at
the option of the Company.

            The bonds of this series have been issued and delivered to the 1999_
Revenue Bond Trustee in order to further evidence the Company's obligations
under the 1999_ Loan Agreement (as such terms are defined in the Thirty-eighth
Supplemental Indenture).

            In the event that any 1999_ Revenue Bonds are to be redeemed
pursuant to Section 4.03 of the 1999_ Revenue Bond Indenture (as defined in the
Thirty-sixth Supplemental Indenture) following a Determination of Taxability (as
defined in the 1999_ Revenue Bond Indenture), bonds of this series, in a
principal amount equal to the principal amount of 1999_ Revenue Bonds to be
redeemed, shall be redeemed on the date fixed for redemption of the 1999_
Revenue Bonds, at the principal amount thereof plus accrued interest to the
redemption date.

            In the event that all 1999_ Revenue Bonds have become immediately
due and payable pursuant to Section 9.02(a) of the 1999_ Revenue Bond Indenture
following the occurrence of an Event of Default (as defined in the 1999_ Revenue
Bond Indenture), the bonds of this series (unless already due and payable) shall
thereupon be redeemed at the principal amount thereof plus accrued interest to
the redemption date (the obligation to effect such redemption being rescinded
upon the rescission of such acceleration);

            The obligation of the Company to make any payment of the principal
of or interest on the bonds of this series shall be deemed to have been
satisfied and discharged to the extent of the sum of:

                                      D-2

<PAGE>

            (a) the amount, if any, credited under the 1999_ Loan Agreement
      Indenture against the obligation of the Company to make payment in respect
      of the corresponding amount of principal of or interest on the 1999_
      Revenue Bonds; and

            (b) the amount, if any, paid by the Company pursuant to the 1999_
      Loan Agreement in respect of such corresponding amount of principal of or
      interest on the 1999_ Revenue Bonds.

            Anything in this bond to the contrary notwithstanding, if, at the
time of the Maturity of the bonds of this series, the stated aggregate principal
amount of such bonds then outstanding shall exceed the aggregate principal
amount of 1999_ Revenue Bonds then outstanding, the aggregate principal amount
of such bonds shall be deemed to have been reduced by the amount of such excess.

            The principal hereof may be declared or may become due prior to the
stated maturity date on the conditions, in the manner and at the time set forth
in the Mortgage, upon the occurrence of a Completed Default as in the Mortgage
provided.

            As provided in the Mortgage and subject to certain limitations
therein set forth, this bond or any portion of the principal amount hereof will
be deemed to have been paid if there has been irrevocably deposited with the
Trustee moneys or direct obligations of or obligations guaranteed by the United
States of America, the principal of and interest on which when due, and without
regard to any reinvestment thereof, will provide moneys which, together with
moneys so deposited, will be sufficient to pay when due the principal of and
premium, if any, and interest on this bond when due.

            The Mortgage contains terms, provisions and conditions relating to
the consolidation or merger of the Company with or into, and the conveyance or
other transfer, or lease, of assets to, another Corporation and to the
assumption by such other Corporation, in certain circumstances, of all of the
obligations of the Company under the Mortgage and on the bonds secured thereby.

            This bond is non-transferable except as required to effect transfer
to any successor trustee under the 1999_ Revenue Bond Indenture, any such
transfer to be made at the office or agency of the Company in the Borough of
Manhattan, The City of New York, upon surrender and cancellation of this bond,
together with a written instrument of transfer whenever required by the Company
duly executed by the registered owner or by its duly authorized attorney, and,
thereupon, a new fully registered bond of the same series for a like principal
amount will be issued to the transferee in exchange herefor as provided in the
Mortgage. The Company and the Trustee may deem and treat the person in whose
name this bond is registered as the absolute owner hereof for the purpose of
receiving payment and for all other purposes.

            In the manner prescribed in the Mortgage, any bonds of this series,
upon surrender thereof for cancellation at the office or agency of the Company
in the Borough of Manhattan, The City of New York, are exchangeable for a like
aggregate principal amount of bonds of the same series of other authorized
denominations.

                                      D-3

<PAGE>

            No recourse shall be had for the payment of the principal of or
interest on this bond against any incorporator or any past, present or future
subscriber to the capital stock, stockholder, officer or director of the Company
or of any predecessor or successor corporation, as such, either directly or
through the Company or any predecessor or successor corporation, under any rule
of law, statute or constitution or by the enforcement of any assessment or
otherwise, all such liability of incorporators, subscribers, stockholders,
officers and directors being released by the holder or owner hereof by the
acceptance of this bond and being likewise waived and released by the terms of
the Mortgage.

            This bond shall not become obligatory until Citibank, N.A., the
Trustee under the Mortgage, or its successor thereunder, shall have signed the
form of certificate endorsed hereon.

            IN WITNESS WHEREOF, AVISTA CORPORATION has caused this bond to be
signed in its corporate name by its President or one of its Vice Presidents by
his signature or a facsimile thereof, and its corporate seal to be impressed or
imprinted hereon and attested by its Corporate Secretary or one of its Assistant
Corporate Secretaries by his signature or a facsimile thereof.

Dated:
                               AVISTA CORPORATION

                               By: __________________________________________

ATTEST:  __________________________________________

                                      D-4

<PAGE>

                              TRUSTEE'S CERTIFICATE

            This bond is one of the bonds, of the series herein designated,
described or provided for in the within-mentioned Mortgage.

                                          CITIBANK, N.A.
                                          Trustee

                                           By:  ________________________________
                                                          Authorized Officer

                                      D-5

<PAGE>

            FOR VALUE RECEIVED the undersigned hereby sells, assigns and
transfers unto

 __________________________________________

         [please insert social security or other identifying number of assignee]

 __________________________________________

                        [please print or typewrite name and address of assignee]

the within bond of AVISTA CORPORATION and does hereby irrevocably constitute and
appoint _______________, Attorney, to transfer said bond on the books of the
within-mentioned Company, will full power of substitution in the premises.

Dated: _______________

       ______________________

                                 Notice: The signature to this assignment must
                                 correspond with the name as written upon the
                                 face of the bond in every particular without
                                 alteration or enlargement or any change
                                 whatsoever.

                                      D-6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]