Press Release

Itron and Avista Collaborate on Smart Grid Demonstration Project in Pullman, Wash

LIBERTY LAKE, Wash. — October 14, 2010 — Itron Inc. (NASDAQ: ITRI) announced today that it is one of several partners that will work with Avista (NYSE: AVA) on its smart grid demonstration project in Pullman, Wash. The Pullman project, part of the larger Pacific Northwest Smart Grid Demonstration Project being led by Battelle, will give customers in Pullman a role in testing technology and shaping smart grid implementation across our region.

The goal of the project is to use smart grid technologies, including advanced metering technology and enhanced utility communication, to automate parts of the energy distribution system, in order to allow customers to monitor their energy consumption, increase power grid reliability, incorporate renewable energy sources and provide shorter restoration times for local outages.

"Avista is pleased to be working with Itron to incorporate smart metering and data management solutions, which are key to preparing the electric distribution system for future technologies," said Don Kopczynski, vice president of transmission and distribution operations for Avista.

Avista will team up with several regional entities for the $38 million Pullman project, including the City of Pullman and cost-share partners Itron, Washington State University, Hewlett-Packard and Spirae.

Smart meters will be used to provide detailed energy usage data, reduce outage response times, and ensure power reliability. Itron's meter data management solution will help provide analytics to optimize distribution system reliability in the area. It can also be utilized to engage consumers and transform energy usage through a variety of future demand response, load management and energy efficiency programs.

"We are excited to have yet another forward-looking utility choose an Itron solution as it looks to realize the benefits of the smart grid," said Philip Mezey, Itron North America senior vice president and COO. "Avista joins a growing list of utilities demonstrating how advanced technology will allow providers to better understand and manage energy delivery."

About Itron

Itron enables utilities and cities to safely, securely and reliably deliver critical infrastructure solutions to communities in more than 100 countries. Our portfolio of smart networks, software, services, meters and sensors helps our customers better manage electricity, gas and water resources for the people they serve. By working with our customers to ensure their success, we help improve the quality of life, ensure the safety and promote the well-being of millions of people around the globe. Itron is dedicated to creating a more resourceful world. Join us:

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Alison Mallahan

Senior Manager, Corporate Communications

(509) 891-3802


David Means

Director, Investor Relations

(737) 242-8448