PURCHASE OF AVISTA

The Commission, in D.05-03-010, dated March 17, 2005, authorized the acquisition of Avista's California gas facilities by Southwest Gas. The Commission indicated that upon consummation of the transaction, Southwest is authorized to substitute its Tariff Rules Nos. 1 through 22 in lieu of Avista's Rules Nos. 1 through 21, retaining the Preliminary Statements and Rate Schedules in the existing Avista tariffs.

Southwest and Avista are to notify the Director of the Commission's Energy Division, in writing, of the transfer of ownership, within 30 days of the date of transfer. The transfer took place on April 28, 2005. Pursuant to the transfer, Avista's customers will now be served by Southwest Gas.

For the time being, Southwest Gas intends to continue the current program structure of Avista's CARE and LIEE programs. When current program contracts expire, Southwest may integrate Avista's current CARE or LIEE or both into Southwest's current programs.