FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person * MALQUIST MALYN K   2. Issuer Name and Ticker or Trading Symbol AVISTA CORP [AVA] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director _____ 10% Owner __X__ Officer (give title below) _____ Other (specify below) Executive Vice President (Last) (First) (Middle) 1411 E MISSION AVE 3. Date of Earliest Transaction (Month/Day/Year) 01/12/2009 (Street) SPOKANE, WA 99202 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock - 2007 Restricted Stock Award 01/12/2009   F   262 (1) D $ 19.15 50,739 D   Common Stock - 2008 Restricted Stock Award 01/12/2009   F   389 (2) D $ 19.15 50,350 D   Common Stock 01/14/2009   M   26,250 (3) A $ 10.17 76,600 D   Common Stock 01/14/2009   S   26,250 (3) D $ 18.66 50,350 D   Common Stock held in 401(k) Investment Plan               3,021 I by Trustee Common Stock held in Executive Deferral Plan               10,166 I by Trustee Common Stock held by Family Trust (6)               9,500 I by Trustee

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Exercise of Stock Option

$ 10.17

01/14/2009

M

26,250

(4)

11/06/2012

Common Stock

26,250

$ 18.66

0 (5)

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
MALQUIST MALYN K 1411 E MISSION AVE SPOKANE, WA 99202			Executive Vice President

Signatures

/s/ Malyn K. Malquist		01/14/2009
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	Shares sold to pay income tax on second 1/3 of 2007 restricted shares that vested on 01/02/2009.
(2)	Shares sold to pay income tax on first 1/3 of 2008 restricted shares that vested on 01/02/2009.
(3)	Transaction per Mr. Malquist's 10b5-1 Plan dated August 20, 2008.
(4)	Options vest in four equal annual installments beginning the first anniversary of the grant date. Mr. Malquist receive an option grant of 26,250 shares on 11/07/2002.
(5)	Total reflects the number of derivative securities remaining under this particular option grant.
(6)	The Malquist Family Trust, dated February 5, 1999, with Malyn K. Malquist and Georgia G. Malquist, Trustees.

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