UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q/A
Amendment No. 1
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 1-3198
IDAHO POWER COMPANY
(Exact name of registrant as specified in its charter)
Idaho 82-0130980
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
1221 W. Idaho Street, Boise, Idaho 83702-5627
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (208) 388-2200
None
Former name, former address and former fiscal year, if changed since
last report.
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for
the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable date.
Number of shares of Common Stock, $2.50 par value,
outstanding as of April 30, 1996 is 37,612,351.
IDAHO POWER COMPANY
Index
Part I. Financial Information: Page No
Item 1. Financial Statements
Consolidated Statements of Income - Three Months
and Twelve Months Ended March 31, 1996 and 1995 3, 4
Consolidated Balance Sheets - March 31, 1996
and December 31, 1995 5, 6
Consolidated Statements of Cash Flows -
Three Months and Twelve Months Ended March 31,
1996 and 1995 7, 8
Consolidated Statements of Capitalization -
March 31, 1996 and December 31, 1995 9
Notes to Consolidated Financial Statements 10-12
Independent Accountants' Report 13
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations 14-24
Part II. Other Information:
Item 1. Legal Proceedings 25-26
Item 6. Exhibits and Reports on Form 8-K 27-36
Signatures 37
PART I - FINANCIAL INFORMATION
IDAHO POWER COMPANY
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
Item 1. Financial Statements
Three Months Ended
March 31, Increase
1996 1995 (Decrease)
(Thousands of Dollars)
REVENUES (Notes 1 and 4) $146,629 $131,336 $ 15,293
EXPENSES (Notes 1 and 4):
Operation:
Purchased power 8,215 6,717 1,498
Fuel expense 8,532 15,492 (6,960)
Power cost adjustment 6,852 (1,705) 8,557
Other 33,210 32,422 788
Maintenance 8,806 9,058 (252)
Depreciation 17,395 16,674 721
Taxes other than income taxes 5,130 6,126 (996)
Total expenses 88,140 84,784 3,356
INCOME FROM OPERATIONS 58,489 46,552 11,937
OTHER INCOME:
Allowance for equity funds used during
construction (Note 2) (1) (2) 1
Other - Net 3,342 1,944 1,398
Total other income 3,341 1,942 1,399
INTEREST CHARGES:
Interest on long-term debt 12,963 12,789 174
Other interest 1,242 1,273 (31)
Total interest charges 14,205 14,062 143
Allowance for borrowed funds used
during construction (Note 2) (52) (529) 477
Net interest charges 14,153 13,533 620
INCOME BEFORE INCOME TAXES 47,677 34,961 12,716
INCOME TAXES (Note 6) 17,466 14,234 3,232
NET INCOME 30,211 20,727 9,484
Dividends on preferred stock 1,952 2,026 (74)
EARNINGS ON COMMON STOCK $ 28,259 $ 18,701 $ 9,558
AVERAGE COMMON SHARES
OUTSTANDING (000) 37,612 37,612 N/A
Earnings per share of common stock $ 0.75 $ 0.50 $ 0.25
Dividends paid per share of common stock $ 0.465 $ 0.465 $ -
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
CONSOLIDATED STATEMENTS OF INCOME
FOR THE TWELVE MONTHS ENDED MARCH 31, 1996 AND 1995
Twelve Months Ended
March 31, Increase
1996 1995 (Decrease)
(Thousands of Dollars)
REVENUES (Notes 1 and 4) $560,915 $546,184 $ 14,731
EXPENSES (Notes 1 and 4):
Operation:
Purchased power 56,084 61,720 (5,636)
Fuel expense 47,731 84,893 (37,162)
Power cost adjustment 15,849 (11,121) 26,970
Other 127,502 124,244 3,258
Maintenance 35,701 42,505 (6,804)
Depreciation 68,136 60,843 7,293
Taxes other than income taxes 21,984 24,292 (2,308)
Total expenses 372,987 387,376 (14,389)
INCOME FROM OPERATIONS 187,928 158,808 29,120
OTHER INCOME:
Allowance for equity funds used during
construction (Note 2) (16) 951 (967)
Other - Net 15,770 9,896 5,874
Total other income 15,754 10,847 4,907
INTEREST CHARGES:
Interest on long-term debt 51,320 51,167 153
Other interest 5,278 3,815 1,463
Total interest charges 56,598 54,982 1,616
Allowance for borrowed funds used
during construction (Note 2) (964) (1,795) 831
Net interest charges 55,634 53,187 2,447
INCOME BEFORE INCOME TAXES 148,048 116,468 31,580
INCOME TAXES 51,644 39,070 12,574
NET INCOME 96,404 77,398 19,006
Dividends on preferred stock 7,916 7,636 280
EARNINGS ON COMMON STOCK $ 88,488 $ 69,762 $ 18,726
AVERAGE COMMON SHARES
OUTSTANDING (000) 37,612 37,590 N/A
Earnings per share of common stock $ 2.35 $ 1.86 $ 0.49
Dividends paid per share of common stock $ 1.86 $ 1.86 $ -
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
CONSOLIDATED BALANCE SHEETS
ASSETS
March 31, December 31,
1996 1995
(Thousands of Dollars)
ELECTRIC PLANT:
In service (at original cost) $2,492,091 $2,481,830
Accumulated provision for depreciation (846,666) (830,615)
In service - Net 1,645,425 1,651,215
Construction work in progress 24,047 20,564
Held for future use 1,106 1,106
Electric plant - Net 1,670,578 1,672,885
INVESTMENTS AND OTHER PROPERTY 31,720 16,826
CURRENT ASSETS:
Cash and cash equivalents 5,691 8,468
Receivables:
Customer 38,105 33,357
Allowance for uncollectible accounts (1,397) (1,397)
Notes 5,238 5,134
Employee notes receivable 4,490 4,648
Other 12,838 10,771
Accrued unbilled revenues (Note 1) 19,624 25,025
Materials and supplies (at average cost) 26,892 25,937
Fuel stock (at average cost) 15,578 13,063
Prepayments 18,599 20,778
Regulatory assets associated with income taxes 5,371 5,777
Total current assets 151,029 151,561
DEFERRED DEBITS:
American Falls and Milner water rights 32,440 32,440
Company owned life insurance 55,425 56,066
Regulatory assets associated with income taxes 200,340 200,379
Regulatory assets - other 62,357 68,348
Other 42,613 43,248
Total deferred debits 393,175 400,481
TOTAL $2,246,502 $2,241,753
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
CONSOLIDATED BALANCE SHEETS
CAPITALIZATION & LIABILITIES
March 31, December 31,
1996 1995
(Thousands of Dollars)
CAPITALIZATION (See Page 9):
Common stock equity - $2.50 par value (shares
authorized 50,000,000; shares outstanding
March 31, 1996 - 37,612,351; December 31,
1995 - 37,612,351) $ 675,798 $ 682,775
Preferred stock (Note 5) 132,150 132,181
Long-term debt (Note 5) 682,624 672,618
Total capitalization 1,490,572 1,487,574
CURRENT LIABILITIES:
Long-term debt due within one year 20,517 20,517
Notes payable 35,016 53,020
Accounts payable 23,762 40,483
Taxes accrued 36,598 15,409
Interest accrued 14,558 14,785
Accumulated deferred income taxes 5,371 5,777
Other 31,639 12,867
Total current liabilities 167,461 162,858
DEFERRED CREDITS:
Accumulated deferred investment tax credits 70,152 70,507
Accumulated deferred income taxes 407,017 408,394
Regulatory liabilities associated with income taxes 34,429 34,554
Regulatory liabilities - other 698 789
Other 76,173 77,077
Total deferred credits 588,469 591,321
COMMITMENTS AND CONTINGENT LIABILITIES (Note 3)
TOTAL $2,246,502 $2,241,753
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
Three Months Ended
March 31,
1996 1995
OPERATING ACTIVITIES: (Thousands of Dollars)
Cash received from operations:
Retail revenues $ 123,351 $ 118,958
Wholesale revenues 17,626 15,691
Other revenues 5,729 5,528
Fuel paid (14,795) (20,659)
Purchased power paid (13,230) (11,966)
Other operation & maintenance paid (41,323) (39,096)
Interest paid (includes long and short-term
debt only) (13,913) (14,168)
Income taxes paid (1,771) (3,000)
Taxes other than income taxes paid (2,012) (2,119)
Other operating cash receipts and payments-Net (2,637) (4,001)
Net cash provided by operating activities 57,025 45,168
FINANCING ACTIVITIES:
PC bond fund requisitions/other long-term debt 10,000 -
Short-term borrowings - Net (18,000) (7,500)
Long-term debt retirement (17) (17)
Preferred stock retirement (20) (38)
Dividends on preferred stock (2,015) (2,091)
Dividends on common stock (17,481) (17,498)
Other sources/(uses) (1,257) (812)
Net cash used in financing activities (28,790) (27,956)
INVESTING ACTIVITIES:
Additions to utility plant (16,535) (17,246)
Conservation (107) (1,339)
Increase in investments (14,525) -
Other 155 903
Net cash used in investing activities (31,012) (17,682)
Change in cash and cash equivalents (2,777) (470)
Cash and cash equivalents beginning of period 8,468 7,748
Cash and cash equivalents end of period $ 5,691 $ 7,278
RECONCILIATION OF NET INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
Net Income $ 30,211 $ 20,727
Adjustments to reconcile net income to net cash:
Depreciation 17,395 16,674
Deferred income taxes (1,559) 3,920
Investment tax credit-Net (355) (67)
Allowance for funds used during construction (50) (527)
Postretirement benefits funding (excl pensions) (697) (1,037)
Changes in operating assets and liabilities:
Accounts receivable 77 8,841
Fuel inventory (6,263) (5,167)
Accounts payable (5,015) (5,249)
Taxes payable 20,734 11,395
Interest payable 288 (110)
Other - Net 2,259 (4,232)
Net cash provided by operating activities $ 57,025 $ 45,168
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE TWELVE MONTHS ENDED MARCH 31, 1996 AND 1995
Twelve Months Ended
March 31,
1996 1995
OPERATING ACTIVITIES: (Thousands of Dollars)
Cash received from operations:
Retail revenues $ 473,214 $ 463,623
Wholesale revenues 61,195 59,691
Other revenues 23,027 23,625
Fuel paid (55,877) (89,926)
Purchased power paid (53,790) (66,977)
Other operation & maintenance paid (156,437) (169,566)
Interest paid (includes long and short-term
debt only) (54,048) (53,133)
Income taxes paid (39,174) (17,488)
Taxes other than income taxes paid (22,833) (21,934)
Other operating cash receipts and payments-Net 5,010 2,612
Net cash provided by operating activities 180,287 130,527
FINANCING ACTIVITIES:
PC bond fund requisitions/other long-term debt 10,000 -
Common stock issued - 6,636
Short-term borrowings - Net (12,500) 45,500
Long-term debt retirement (519) (466)
Preferred stock retirement (133) (129)
Dividends on preferred stock (7,813) (7,841)
Dividends on common stock (69,950) (69,848)
Other sources/(uses) (1,225) (792)
Net cash used in financing activities (82,140) (26,940)
INVESTING ACTIVITIES:
Additions to utility plant (83,254) (101,257)
Conservation (4,455) (6,785)
Increase in investments (14,525) -
Other 2,500 6,929
Net cash used in investing activities (99,734) (101,113)
Change in cash and cash equivalents (1,587) 2,474
Cash and cash equivalents beginning of period 7,278 4,804
Cash and cash equivalents end of period $ 5,691 $ 7,278
RECONCILIATION OF NET INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
Net Income $ 96,404 $ 77,398
Adjustments to reconcile net income to net cash:
Depreciation 68,136 60,843
Deferred income taxes 6,218 13,754
Investment tax credit-Net (1,374) (954)
Allowance for funds used during construction (948) (2,746)
Postretirement benefits funding (excl pensions) (2,516) (4,884)
Changes in operating assets and liabilities:
Accounts receivable (3,479) 755
Fuel inventory (8,147) (5,034)
Accounts payable 2,294 (5,257)
Taxes payable 6,821 11,266
Interest payable 2,499 1,641
Other - Net 14,379 (16,255)
Net cash provided by operating activities $ 180,287 $ 130,527
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
CONSOLIDATED STATEMENTS OF CAPITALIZATION
March 31, December 31,
1996 1995
(Thousands of Dollars)
COMMON STOCK EQUITY:
Common stock $ 94,031 $ 94,031
Premium on capital stock 362,769 363,044
Capital stock expense (4,126) (4,127)
Retained earnings 223,125 229,827
Total common stock equity 675,798 45.3% 682,775 45.9%
PREFERRED STOCK, cumulative, ($100
par or stated value) (Note 5):
4% preferred stock (authorized
215,000; shares outstanding:
1996-171,496; 1995-171,813) 17,150 17,181
Serial preferred stock, authorized
150,000 shares: 7.68% Series,
outstanding 150,000 shares 15,000 15,000
Serial preferred stock, without
par value, authorized 3,000,000
shares: 8.375% Series (authorized
and outstanding 250,000 shares) 25,000 25,000
Auction Rate Preferred Series A
(authorized and outstanding
500 shares) 50,000 50,000
7.07% Series (authorized and
outstanding 250,000 shares) 25,000 25,000
Total preferred stock 132,150 8.9 132,181 8.9
LONG-TERM DEBT (Note 5):
First mortgage bonds:
5 1/4% Series due 1996 20,000* 20,000*
5.33 % Series due 1998 30,000 30,000
8.65 % Series due 2000 80,000 80,000
6.40 % Series due 2003 80,000 80,000
8 % Series due 2004 50,000 50,000
9.50 % Series due 2021 75,000 75,000
7.50 % Series due 2023 80,000 80,000
8 3/4% Series due 2027 50,000 50,000
9.52 % Series due 2031 25,000 25,000
Total first mortgage bonds 490,000 490,000
*Amount due within one year (20,000)
(20,000)
Net first mortgage bonds 470,000 470,000
Pollution control revenue bonds:
5.90 % Series due 2003 24,200* 24,200*
6 % Series due 2007 24,000 24,000
7 1/4% Series due 2008 4,360 4,360
7 5/8% Series 1983-1984 due 2013-2014 68,100 68,100
8.30 % Series 1984 due 2014 49,800 49,800
Total pollution control revenue bonds 170,460 170,460
*Amount due within one year (450) (450)
Net pollution control revenue bonds 170,010 170,010
REA Notes 1,683 1,700
Amount due within one year (67) (67)
Net REA Notes 1,616 1,633
IdaWest Notes 10,000 -
American Falls bond guarantee 20,740 20,740
Milner Dam note guarantee 11,700 11,700
Unamortized premium/discount - Net (1,442) (1,466)
Total long-term debt 682,624 45.8 672,618 45.2
TOTAL CAPITALIZATION $1,490,572 100.0% $1,487,574 100.0%
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. SUMMARY OF ACCOUNTING POLICIES:
Financial Statements
In the opinion of the Company, the accompanying unaudited
financial statements contain all adjustments necessary to
present fairly the consolidated financial position as of
March 31, 1996 and the consolidated results of operation
for the three months, and twelve months ended March 31,
1996 and 1995 and the consolidated cash flows for the three
months and twelve months ended March 31, 1996 and 1995.
These condensed financial statements do not contain the
complete detail or footnote disclosure concerning
accounting policies and other matters which would be
included in full year financial statements and, therefore,
they should be read in conjunction with the Company's
audited financial statements included in the Company's
Annual Report on Form 10-K for the year ended December 31,
1995. The results of operation for the interim periods are
not necessarily indicative of the results to be expected
for the full year.
Principles of Consolidation
The consolidated financial statements include the accounts
of the Company and its wholly-owned subsidiaries, Idaho
Energy Resources Co (IERCo), Idaho Utility Products Company
(IUPCO), IDACORP, INC., Ida-West Energy Company (Ida-West),
and Stellar Dynamics. All significant intercompany
transactions and balances have been eliminated in
consolidation.
Revenues
In order to match revenues with associated expenses, the
Company accrues unbilled revenues for electric services
delivered to customers but not yet billed at month-end.
Cash and Cash Equivalents
For purposes of reporting cash flows, cash and cash
equivalents include cash on hand and highly liquid
temporary investments with original maturity dates of three
months or less.
Management Estimates
The preparation of financial statements, in conformity with
generally accepted accounting principles, requires
management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and the
disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual
results could differ from those estimates.
2. ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION (AFDC):
The allowance, a non-cash item, represents the composite
interest costs of debt, shown as a reduction to interest
charges, and a return on equity funds, shown as an addition
to other income, used to finance construction. While cash
is not realized currently from such allowance, it is
realized under the rate making process over the service
life of the related property through increased revenues
resulting from higher rate base and higher depreciation
expense. Based on the uniform formula adopted by the
Federal Energy Regulatory Commission, the Company's
weighted average monthly AFDC rate for the three months
ended March 31, 1996, was 5.0 percent and was 6.1 percent
for the entire year of 1995.
3. COMMITMENTS AND CONTINGENT LIABILITIES:
Commitments under contracts and purchase orders relating to
the Company's program for construction and operation of
facilities amounted to approximately $1.8 million at March
31, 1996. The commitments are generally revocable by the
Company subject to reimbursement of manufacturers'
expenditures incurred and/or other termination charges.
The Company is party to various legal claims, actions, and
complaints, certain of which involve material amounts.
Although the Company is unable to predict with certainty
whether or not it will ultimately be successful in these
legal proceedings or, if not, what the impact might be,
based upon the advice of legal counsel, management
presently believes that disposition of these matters will
not have a material adverse effect on the Company's
financial position, results of operation, or cash flow.
4. REGULATORY ISSUES:
The Company has in place, in its Idaho jurisdiction, a
Power Cost Adjustment (PCA) mechanism which allows Idaho's
retail customer rates to be adjusted annually to reflect
the Idaho share of forecasted net power supply costs.
Deviations from forecasted costs are deferred with interest
and then adjusted (trued-up) in the subsequent year.
Changes due to better water conditions and milder weather
have resulted in the Company currently recording a PCA
credit of $5.4 million at March 31, 1996. The current
balance is adjusted monthly as actual conditions are
compared to the forecasted net power supply costs.
The Company filed its 1996 PCA application on April 15,
1996, requesting a decrease in the Idaho jurisdiction PCA
rate. The PCA change will decrease Idaho rates by
approximately $24.5 million (5.6 percent), including the
true-up for 1995. The 1996 PCA reflects costs below the
normalized or base rates established for PCA expenses.
5. FINANCING:
The Company currently has a $200,000,000 shelf registration
statement which can be used for both First Mortgage Bonds
(including Medium Term Notes) and Preferred Stock.
6. INCOME TAXES:
The effective tax rate for the first three months decreased
from 40.7% in 1995 to 36.6% in 1996. A reconciliation
between the statutory federal income tax rate and the
effective rate for the three months ended March 31, 1996 is
as follows:
Amount Rate
Computed income taxes based on
statutory federal income tax rate $16,687 35.0%
Changes in taxes resulting from:
Current State Income taxes. 2,239 4.7
Net Depreciation 1,099 2.3
Investment Tax Credits restored (703) (1.5)
Repair Allowance (880) (1.8)
Other (976) (2.1)
$17,466 36.6%
INDEPENDENT ACCOUNTANTS' REPORT
Idaho Power Company
Boise, Idaho
We have reviewed the accompanying condensed consolidated
balance sheets and statements of capitalization of Idaho Power
Company and subsidiaries as of March 31, 1996, and the related
consolidated statements of income for the three-, and twelve-
month periods ended March 31, 1996 and 1995 and condensed
consolidated statements of cash flows for the three- and
twelve-month periods ended March 31, 1996 and 1995. These
financial statements are the responsibility of the Company's
management.
We conducted our review in accordance with standards
established by the American Institute of Certified Public
Accountants. A review of interim financial information
consists principally of applying analytical procedures to
financial data and making inquiries of persons responsible for
financial and accounting matters. It is substantially less in
scope than an audit in accordance with generally accepted
auditing standards, the objective of which is the expression
of an opinion regarding the financial statements taken as a
whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material
modifications that should be made to such condensed
consolidated financial statements for them to be in conformity
with generally accepted accounting principles.
We have previously audited, in accordance with generally
accepted auditing standards, the consolidated balance sheet
and statement of capitalization of Idaho Power Company and
subsidiaries as of December 31, 1995, and the related
consolidated statements of income, retained earnings, and cash
flows for the year then ended (not presented herein), and in
our report dated January 31, 1996, we expressed an unqualified
opinion on those consolidated financial statements. In our
opinion, the information set forth in the accompanying
condensed consolidated balance sheet and statement of
capitalization as of December 31, 1995 is fairly stated, in
all material respects, in relation to the consolidated balance
sheet and statement of capitalization from which it has been
derived.
DELOITTE & TOUCHE LLP
Portland, Oregon
April 30, 1996
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
OVERVIEW
Idaho Power Company's consolidated financial statements represent the
Company and its five wholly-owned subsidiaries: Idaho Energy Resources
Company (IERCo); Ida-West Energy Company (Ida-West); IDACORP, Inc.;
Idaho Utility Products Company (IUPCo); and Stellar Dynamics (Stellar).
This discussion uses the terms Idaho Power and the Company
interchangeably to refer to Idaho Power Company and its subsidiaries.
The Company is primarily a hydro-based electric utility. Therefore,
its operational results, like those of other utilities in the Pacific
Northwest, are significantly affected by changing weather,
precipitation, and streamflow conditions. In addition, the amount of
energy used by general business consumers varies from season to season
- - and from month to month within each season - primarily because of
seasonal weather. Non-firm (or off-system) energy sales also vary, by
quarter and by year, as a result of varying hydro conditions and energy
demand from other utilities. Operating costs fluctuate during periods
when reductions in low-cost hydroelectric generating capability or a
strong, non-firm energy market increase the Company's reliance on
higher-cost thermal generation or purchases of power from other
utilities.
The Company uses a Power Cost Adjustment (PCA) mechanism in Idaho, its
primary jurisdiction. The PCA provides recovery for a major portion of
those operating expenses that have the greatest potential for
variation. With the PCA, the Company's operating results and earnings
per share are more closely aligned with general regulatory, economic,
and temperature-related weather conditions, and are less dependent on
variable precipitation and streamflow conditions.
Earnings Per Share and Book Value
Earnings per share of common stock were $0.75 for the quarter, an
increase of $0.25 (50.0 percent) from the same quarter last year. The
twelve months ended March 31, 1996 yielded earnings of $2.35 per share,
an increase of $0.49 (26.3 percent) from the twelve months ended March
31, 1995. The twelve-month earnings represent a 13.1 percent earned
return on year-end March 31 common equity, compared to the 10.6 percent
earned through March 31 last year. At March 31, 1996, the book value
per share of common stock was $17.97, compared to $17.48 for the same
period a year ago.
RESULTS OF OPERATIONS
Precipitation and Streamflows
Idaho Power analyzes precipitation and streamflow conditions based on
their effect on Brownlee Reservoir, water source for the three Hells
Canyon hydroelectric projects. In normal years, these three projects
combine to produce about half of the Company's generated electricity.
Precipitation in the Company's service territory was above normal for
the first three months of 1996. At April 1, 1996, reservoir storage
above Brownlee was 71 percent of capacity, compared to 63 percent at
this time last year and to the normal capacity of 70 percent for the
same period.
Inflows into Brownlee result from a combination of precipitation,
storage, and ground water conditions. At April 1, 1996, the Company
estimated that 7.5 million acre-feet (MAF) of water will flow into
Brownlee Reservoir during the April-July runoff period. This figure
represents approximately 156 percent of the 68-year median of 4.8 MAF.
Energy Requirements
For the first three months of 1996, the Company met its total system
energy requirements from the following sources: hydro generation (67
percent), thermal generation (22 percent), and purchased power and
other interchanges (11 percent). For the same period of 1995, these
figures were 54 percent hydro, 35 percent thermal, and 11 percent
purchased power and other interchanges.
With precipitation, streamflows, and reservoir storage above average,
the Company estimates that 63 percent of its 1996 energy requirements
will come from hydro generation, 23 percent from thermal generation,
and 14 percent from purchased power and other interchanges. Under
normal conditions, Idaho Power's hydro system would contribute
approximately 57 percent of the Company's total system energy
requirements, with thermal generation accounting for approximately 34
percent, and the remaining 9 percent coming from purchased power and
other interchanges.
Economy
Over the last seven years, Idaho's economy has consistently ranked
among the fastest growing in the U.S. The average annual compound rate
of growth over the last five years was nearly 4.6 percent. It was
inevitable, therefore, that this growth rate would begin to slacken.
In 1995, Idaho experienced a 3.2 percent rate of growth in non-
agricultural employment. This figure compares to 5.0 percent in 1993
and 4.6 percent in 1994. Economic forecasts estimate that Idaho's
employment growth for 1996 and 1997 will be 2.8 percent and 2.9 percent
respectively. In addition, Idaho's population growth is expected to be
moderate in the near-term as the rate of job creation slows. Still,
Idaho will likely maintain a rate of population growth that is nearly
twice that of the national average.
Power Cost Adjustment
Since 1993, the Idaho Public Utilities Commission (IPUC) has permitted
Idaho Power to use a PCA mechanism in its Idaho jurisdiction. The PCA
enables the Company to collect or to refund a portion of the difference
between net power supply costs actually incurred and those allowed in
the Company's base rates. The current balance is adjusted monthly as
actual conditions are compared to the PCA forecasted net power supply
costs. At March 31, 1996, the Company had recorded $5.4 million of
power supply costs above those projected in the 1995 PCA forecast that
were included in the true-up portion of the 1996 PCA filing. The
Company filed its 1996 PCA application on April 15, 1996, requesting a
decrease in the Idaho jurisdiction PCA rate. The PCA change will
decrease Idaho rates by approximately $24.5 million (5.6 percent),
including the true-up for 1995. The 1996 PCA reflects costs below the
normalized or base rates established for PCA expenses.
Revenues
General business revenues were up by $10.9 million (10.0 percent) for
the quarter, and by $8.6 million (1.9 percent) for the twelve months
ended March 31, 1996.
The quarterly gain reflects increases in rate levels, the total number
of customers served, and customer usage when compared to the first
quarter of 1995. The Company posted gains in three customer classes.
Residential revenues increased $7.3 million (13.5 percent); industrial
sales rose $0.8 million (3.1 percent); and commercial sales increased
$2.7 million (10.5 percent).
The increase for the twelve-month period represents the continuing
strength of economic growth in the Company's service territory,
increases in new customers, energy usage patterns, and rate increases
in the Idaho and Oregon jurisdictions. Idaho Power added 11,303 new
general business customers a 3.4 percent increase over the total number
of customers served at this time last year.
Total surplus sales rose $3.2 million during the first quarter and $9.4
million for the twelve-month period. These increases reflect improved
hydroelectric generating conditions in 1995 and 1996. The increased
sales were partially offset by a $4.2 million decline in firm sales for
resale during the twelve-month period. This decline is due to the
expiration of a short-term firm sales agreement with another utility
for sales during July and August of 1994. Firm sales for resale
increased $0.4 million during the first three months of 1996.
When compared to the corresponding periods a year ago, total operating
revenues increased $15.3 million (11.6 percent) for the first quarter
of 1996, and $14.7 million (2.7 percent) for the twelve months ended
March 31, 1996.
Expenses
Total operation and maintenance expenses were up $3.6 million (5.9
percent) for the quarter, but down $19.4 million (6.4 percent) for the
twelve months ended March 31, 1996.
Purchased power expenses were up for the three-month period by $1.5
million, but were down for the twelve-month period by $5.6 million.
The increase for the three-month period reflects economy purchases
Idaho Power made while prices for off-system energy were lower,
allowing the Company to reduce the need for generation at its thermal
facilities. The decrease for the twelve-month period reflects good
hydroelectric generating conditions throughout that period of time.
Fuel expenses were lower for both periods: $7.0 million and $37.2
million respectively. Again, these decreases reflect good
hydroelectric generating conditions during 1995 and 1996.
PCA expenses increased by $8.6 million and $27.0 million for the three-
and twelve-month periods respectively. The PCA mechanism reduces
expenses when power supply costs are above normal, and increases them
when power supply costs are below normal (see Note 4). PCA component
expenses were lower than base amounts; therefore, PCA expenses
increased when compared to the same periods a year ago.
All other operation and maintenance expenses were up $0.5 million for
the first quarter, but down $3.5 million for the twelve months ended
March 31, 1996. The decrease reflects reduced thermal operation and
maintenance expenses, reduced accruals for injury and damage expense,
and the successful efforts of the Company's employees to reduce
operating costs.
Total interest costs increased $0.1 million and $1.6 million for the
three - and twelve-month periods respectively. These increases are the
result of varying levels of short-term borrowings throughout the
reported periods, as well as an increase in long-term debt resulting
from the recent purchase of bonds by the Company's Ida-West subsidiary.
Income taxes increased during both periods because of a corresponding
increase in pre-tax income. Depreciation expense increased as a result
of greater plant investment.
Ida-West Energy Company
This wholly owned subsidiary of the Company holds investments in eight
operating hydroelectric plants with a total generating capacity of
60.8 megawatts (MW). Ida-West owns, through various partnerships, a 50
percent equity interest in five of these projects. Ida-West's wholly-
owned subsidiaries also operate and maintain the five projects, all of
which are located in Idaho. Ida-West holds 100 percent of the
subordinated debt relating to one of these Idaho projects.
In January 1996, Ida-West purchased all of the outstanding bonds
(approximately $33 million) that were issued to finance three
hydroelectric plants known collectively as the Friant Power Project.
This project is located at the U.S. Bureau of Reclamation's Friant Dam
on the headwaters of the San Joaquin River in Madera and Fresno
Counties, California. It has an aggregate generating capacity of 27.4
MW. The project is owned and operated by Friant Power Authority, a
quasi-governmental entity consisting of six irrigation districts, a
water district, and a municipal utility district.
In addition, Ida-West owns, together with two other equal partners, the
Hermiston Power Project, a 460 MW gas-fired cogeneration project to be
located near Hermiston, Oregon. The Bonneville Power Administration
(BPA) selected the project to be a part of its Resource Contingency
Program. In 1993, the partnership and the BPA signed an option
development agreement granting the BPA an option to acquire energy and
capacity from the project any time during a five-year option hold
period after all option development period tasks, including permitting,
have been completed. The agreement also entitles the partnership to
reimbursement from the BPA for certain development costs, based on the
achievement of certain milestones. Ida-West has been responsible for
managing all permitting and development activities relating to the
project since its inception. In March 1996, the Oregon Energy Facility
Siting Council issued a site certificate for the project, the last
major permit necessary for construction and operation of the project.
Therefore, the partnership has completed all of its option development
responsibilities and has entered the option hold period, which expires
on June 30, 2000. The partnership and the BPA are exploring various
alternatives for marketing the project's output. Project financing for
construction costs would be non-recourse to Idaho Power.
To date, the Company has invested $20 million in Ida-West. Ida-West
continues an active search for new projects.
IDACORP, Inc.
Through this wholly-owned subsidiary, Idaho Power is participating in
four affordable housing programs. These investments provide a return
to IDACORP by reducing federal income taxes and by assuring a return on
investment through tax credits and tax depreciation benefits.
Stellar Dynamics
During the first quarter of 1996, Idaho Power invested $1.0 million in
Stellar Dynamics. As Stellar's capital requirements increase, the
Company has approved additional equity investments up to a total of
$3.0 million. Stellar's core business is to provide products and
services to control, protect, and monitor utility and industry
processes and equipment. Stellar offers design and integration of high-
quality modular process control systems backed with field support,
training, documentation, and customer service.
LIQUIDITY AND CAPITAL RESOURCES
Cash Flow
For the three months ended March 31, 1996, the Company generated $57.0
million in net cash from operations. After deducting for both common
and preferred dividends, net cash generation from operations provided
approximately $37.5 million for the Company's construction program and
other capital requirements. This is a 46.7 percent increase over the
same period in 1995.
Cash Expenditures
Idaho Power estimates that its cash construction program for 1996 will
require approximately $85.4 million. This estimate is subject to
revision in light of changing economic, regulatory, environmental, and
conversation factors. During the first three months of 1996, the
Company expended approximately $16.5 million for construction.
Idaho Power's primary financial commitments and obligations are related
to contracts and purchase orders associated with its ongoing
construction program. The Company expects to finance these commitments
and obligations by using both internally generated funds and externally
financed capital to the extent required. Although the Company has
regulatory approval to incur up to $150 million of bank borrowings, it
presently maintains lines of credit with various banks aggregating $85
million. The Company may use these lines of credit to finance a
portion of its construction program on an interim basis. At March 31,
1996, the Company's short-term borrowings totaled $35.0 million.
Financing Program
Idaho Power has on file a shelf registration statement for the issuance
of first mortgage bonds and/or preferred stock with a total aggregate
principal amount not to exceed $200 million.
After reviewing the Company's financial condition, Standard & Poors
(S&P) raised its rating on the Company's first mortgage bonds from A to
A+ effective April 16, 1996. S&P also raised its rating on the
Company's preferred stock and other unsecured debt from A- to A, while
reaffirming the Company's A1 rating for commercial paper.
Idaho Power's current objective is to maintain capitalization ratios of
approximately 45 percent common equity, 8 to 10 percent preferred
stock, and the balance in long-term debt. For the twelve-month period
ended March 31, 1996, the Company's consolidated pre-tax interest
coverage was 3.62 times.
Construction Program
Idaho Power continues to study the economic feasibility of constructing
the Southwest Intertie Project (SWIP) to capitalize on its strategic
location between the Intermountain West and the Pacific Northwest. The
Company's SWIP proposal calls for a 500-mile, 500 kilovolt (kV)
transmission line that would serve as a major north-south transmission
artery, interconnecting the Company's system with those of utilities in
California and the Southwest. In December 1994, the U.S. Bureau of Land
Management (BLM) issued a favorable record of decision on the Company's
environmental impact statement and granted the project a right-of-way
across public lands in Idaho, Nevada, and Utah. Idaho Power intends to
retain up to 20 percent of ownership and capacity in the 1,200 MW
project. The SWIP may be built in segments as warranted by demand for
its transmission services. Idaho Power and the BLM are working on a
detailed, site-specific construction, operation, and maintenance plan
aimed at mitigating the environmental impact of the project.
During the fourth quarter of 1995, the Company sent participation
packages to interested parties and received requests for capacity. The
Company and the six interested parties have completed ownership
allocation and negotiations for the execution of the Memorandum of
Agreement (MOA). When the MOA is executed, the Company will require
each party to pay its share of the approximately $8.5 million expended
for environmental permitting, right-of-way acquisition, and related
development activities. The SWIP owners will then form an Executive
Committee, with voting rights proportional to each share of the
project. The Executive Committee will oversee development activities
for the SWIP and related projects.
The Company has put the SWIP on hold, pending an order from the Public
Service Commission of Nevada to allow Nevada Power to participate in
the project.
Salmon Recovery Plan
Work continues on the development of a comprehensive and scientifically
credible plan to ensure the long-term survival of anadromous fish runs
on the Columbia and Lower Snake Rivers. Idaho Power fully supports and
actively participates in this regional effort.
In March of 1995, the National Marine Fisheries Service (NMFS) released
a Proposed Recovery Plan for the listed Snake River Salmon. The NMFS
accepted public comment on the Plan through December of 1995. As
drafted, the Plan would not require any changes to the Company's
current operations for salmon. Pending completion of a final recovery
plan by the NMFS, the U.S. Army Corps of Engineers and other
governmental agencies operating federally-owned dams and reservoirs on
the Snake and Columbia Rivers will continue to consult with the NMFS
regarding ongoing system operations. The Company does not expect these
interim operations to change its current operations for salmon.
Idaho Power is negotiating with the BPA to obtain reimbursement for
costs associated with lost energy generation and storage resulting from
recovery plans that impact the Company's power supply costs.
Nez Perce Lawsuit
Idaho Power's Board of Directors and the Nez Perce Tribe have approved
an Agreement in Principle between the Company and the Tribe, which
tentatively resolves a four-and-a-half year-old lawsuit regarding
alleged damages to the Tribe's treaty-reserved fishing rights.
The suit arose from the construction, maintenance, and operation of
Idaho Power's three-dam Hells Canyon Complex and the project's alleged
impact both on fish and the Tribe's treaty-reserved fishing rights.
The Agreement requires the approval of the United States government
acting in its capacity as trustee for the Tribe. In addition, the
Idaho and Oregon public utility commissions must issue orders
authorizing specific accounting measures for the Agreement.
Under the terms of the proposed agreement, Idaho Power would pay the
Nez Perce Tribe $11.5 million in the following manner:
- $5 million in 1996. At the time of the payment of the initial $5
million, the Nez Perce would move for dismissal, with prejudice, their
legal action against the Company.
- $1,625,000 each year for the next four years beginning in 1997.
In connection with settling the litigation, the Company and the Tribe
also reached a provisional settlement regarding the relicensing of the
Hells Canyon Complex. In return for the Tribe's support of the
Company's application to relicense the project, the Company will place
$5 million in an escrow account on August 3, 2003, the date by which
the Company must file its relicense application. The Tribe will be
entitled to earnings from investments on this account until the Company
accepts or rejects a new federal license for the project. If the
Company accepts the new federal license, the Tribe will take ownership
of the money in the account. If the Company rejects the license, the
money will be returned to the Company. This settlement is provisional
because the Tribe retains the right to opt out of this relicensing
settlement at any time prior to the Company's acceptance of a new
federal license.
All payments under the Agreement in Principle will be made in 1996
dollars, which allows for future inflation within a range of 3 percent
to 7 percent.
Company Transformation and Regulatory Initiative
On August 3, 1995, Idaho Power filed a new regulatory proposal with the
IPUC to support the Company's organizational redesign and corporate
vision. In response to the Company's proposal, the IPUC approved a
Settlement Stipulation that provides for a general rate freeze through
the end of 1999 and allows, as necessary, for the accelerated
amortization of regulatory liabilities associated with accumulated
deferred investment tax credits (ADITCs) to provide a minimum 11.5
percent return on actual year-end common equity. The new freeze and
the accelerated amortization of regulatory liabilities associated with
ADITCs gives the Company time to pursue and to implement its efficiency
and growth initiatives with the assurance of at least a reasonable
level of financial performance apart from the need to change customer
prices.
On November 22, 1995, the Idaho State Tax Commission approved the
accounting treatment for the Idaho ADITCs; the Internal Revenue Service
granted its approval on March 5, 1996. As of March 31, 1996, no
accumulated amortization of ADITCs has occurred.
New Business Opportunities - Technologies and Services
Idaho Power and representatives from the government of Indonesia signed
a Memorandum of Understanding on March 6, 1996 that clears the way for
the Company to conduct a detailed feasibility study on using solar
photovoltaic (PV) technology, micro hydroelectric systems, and other
renewable energy systems to provide electricity to various locations
throughout Indonesia's complex of islands . The Company expects to
complete the feasibility study by July of this year. If the project is
deemed workable, Idaho Power would likely begin to develop services in
1997.
The Company intends to pursue similar opportunities outside of the
United States through the formation of a non-regulated joint venture
company to be called Idaho Power International (IPI). IPI will seek to
establish successful long-term business operations in markets where
public policy supports the establishment of sustainable, private-sector
energy projects. IPI will focus on markets where individuals can pay
for the electricity services delivered. The World Bank estimates that
two billion people around the world currently do not have access to an
electric grid.
IPUC Workshops Regarding Industry Changes
The IPUC has scheduled workshops to address changes in the electric
utility industry and their possible effects on the state of Idaho. The
workshop participants will discuss a number of issues, including:
- How will competition affect service?
- How will competition benefit utility customers?
- What are the economic transitional issues and how should they be
addressed?
In addition, the IPUC will use the workshops to try to determine what
its next investigative steps should be. The commissioners want to
learn whether or not people believe that it will be necessary to change
the existing regulatory and legal framework in which regulated electric
utilities operate in Idaho. The Company will actively participate in
these workshops to facilitate its transition to a more competitive
business environment.
FERC Proposed Rule
On April 24, 1996, the FERC issued its Order Nos. 888 and 889 dealing
with Open-Access Non-Discriminatory Transmission Services by Public and
Transmitting Utilities, and standards of conduct regarding the same.
These orders require utilities owning transmission lines to file non-
discriminatory rates available to all buyers and sellers of
electricity, require utilities to use that tariff for their own
wholesale sales and purchases, and allow utilities to recover stranded
costs, subject to certain conditions Every utility owning transmission
lines must file compliance tariffs within 60 days after Order No. 888
is published in the Federal Register.
Idaho Power has long had an informal open-access transmission policy,
and is experienced in providing reliable, high-quality, economical
transmission service. The Company provides various firm and non-firm
wheeling services for several surrounding utilities. In November of
1995, the Company filed with the FERC open-access tariffs for Point-to-
Point and Network transmission service. The Company requested and
received permission to implement these tariffs beginning February 1,
1996.
The substance of these tariffs is to offer the same quality and
character of transmission services to anyone seeking them as those the
Company uses in its own operations. The FERC set the proposed rates
for service under the tariffs for hearing, and the Company may provide
service at these proposed rates subject to refund.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
On December 6, 1991, a complaint entitled Nez Perce Tribe, Plaintiff,
vs. Idaho Power Company, Defendant, Civil No. CIV 91-0517-S-EJL, was
filed against the Company in the United States District Court for the
District of Idaho.
On September 11, 1992, the Tribe filed an Amended Complaint in which it
amplified its original Complaint by asserting that Brownlee, Oxbow and
Hells Canyon Dams were "constructed, operated and maintained in such a
manner as to damage plaintiff's rights" to harvest fish, which rights
the Tribe asserts to be "present, possessory property right(s)". As
the basis for its alleged right to recover damages from the Company,
the Tribe asserts that the Company negligently constructed, operated
and maintained Brownlee, Oxbow and Hells Canyon Dams, that the Company
negligently failed to prevent or mitigate harm to the Tribe, that the
Company intentionally and willfully destroyed, interfered with, and
dispossessed the Tribe of its property rights, and that the Company
improperly exercised dominion over the Tribe's property, thus depriving
the Tribe of its possession. The Tribe seeks through its Amended
Complaint to secure actual, incidental, consequential and punitive
damages in amounts to be proven at trial.
On September 18, 1992, the Company filed a motion for summary judgment
in the hope of securing dismissal of the Tribe's action. The District
Court issued an Order of Reference sending the case to a Federal
Magistrate. On July 30, 1993, the Magistrate issued a Report and
Recommendation that the District Judge granted that portion of the
Company's motion for summary judgment regarding the loss of fish.
On November 30, 1993, the District Court entered a Second Order of
Reference, in which the Court sent the case back to the Magistrate for
the Magistrate to make additional findings with respect to the Tribe's
contention that it is entitled to compensation based on physical
exclusion from its usual and accustomed fishing places. On
February 28, 1994, the Magistrate issued a Second Report and
Recommendation wherein it was recommended that the District Court deny
the Company's motion for summary judgment as to the Tribe's claim for
damages arising from precluding the Tribe's access to its usual and
accustomed fishing places and reaffirmed its recommendation in the
original Report and Recommendation dated July 30, 1993, to grant the
Company's motion for summary judgment as to all other claims.
On September 28, 1994, the Federal District Judge issued an Order
rejecting the Second Report and Recommendation of the Magistrate
granting, in its entirety, the Company's motion for summary judgment.
On November 8, 1994, the Tribe filed its Notice of Appeal with the
Ninth Circuit Court of Appeals. No date for oral argument on the
appeal has yet been set.
The Company and the Tribe have reached agreement on a proposed
settlement of this case. The Nez Perce Tribal Executive Committee and
the Company's Board of Directors has approved the settlement, and the
Company has submitted the proposed settlement to appropriate state and
federal regulators for their approval (see Management's Discussion
section regarding the Nez Perce lawsuit).
This matter has been previously reported in Form 10-K dated March 16,
1992, March 12, 1993, March 10, 1994, March 9, 1995, March 14, 1996,
and other reports filed with the Commission.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
File As
Exhibit Number Exhibit
*3(a) 33-00440 4(a)(xiii) Restated Articles of
Incorporation of the Company as
filed with the Secretary of State
of Idaho on June 30, 1989.
*3(a)(i) 33-65720 4(a)(i) Statement of Resolution
Establishing Terms of 8.375%
Serial Preferred Stock, Without
Par Value (cumulative stated
value of $100 per share), as
filed with the Secretary of State
of Idaho on September 23, 1991.
*3(a)(ii) 33-65720 4(a)(ii) Statement of Resolution
Establishing Terms of Flexible
Auction Series A, Serial
Preferred Stock, Without Par
Value (cumulative stated value of
$100,000 per share), as filed
with the Secretary of State of
Idaho on November 5, 1991.
*3(a)(iii) 33-65720 4(a)(iii) Statement of Resolution
Establishing Terms of 7.07%
Serial Preferred Stock, Without
Par Value (cumulative stated
value of $100 per share), as
filed with the Secretary of State
of Idaho on June 30, 1993.
*3(b) 33-41166 4(b) Waiver resolution to Restated
Articles of Incorporation adopted
by Shareholders on May 1, 1991.
*3(c) 33-00440 4(a)(xiv) By-laws of the Company amended on
June 30, 1989, and presently in
effect.
*4(a)(i) 2-3413 B-2 Mortgage and Deed of Trust, dated
as of October 1, 1937, between
the Company and Bankers Trust
Company and R. G. Page, as
Trustees.
*4(a)(ii) Supplemental Indentures to
Mortgage and Deed of Trust:
Number Dated
1-MD B-2-a First July 1, 1939
2-5395 7-a-3 Second November 15, 1943
2-7237 7-a-4 Third February 1, 1947
2-7502 7-a-5 Fourth May 1, 1948
2-8398 7-a-6 Fifth November 1, 1949
2-8973 7-a-7 Sixth October 1, 1951
2-12941 2-C-8 Seventh January 1, 1957
2-13688 4-J Eighth July 15, 1957
2-13689 4-K Ninth November 15, 1957
2-14245 4-L Tenth April 1, 1958
2-14366 2-L Eleventh October 15, 1958
2-14935 4-N Twelfth May 15, 1959
2-18976 4-O Thirteenth November 15, 1960
2-18977 4-Q Fourteenth November 1, 1961
2-22988 4-B-16 Fifteenth September 15, 1964
2-24578 4-B-17 Sixteenth April 1, 1966
2-25479 4-B-18 Seventeenth October 1, 1966
2-45260 2(c) Eighteenth September 1, 1972
2-49854 2(c) Nineteenth January 15, 1974
2-51722 2(c)(i) Twentieth August 1, 1974
2-51722 2(c)(ii) Twenty-first October 15, 1974
2-57374 2(c) Twenty-second November 15, 1976
2-62035 2(c) Twenty-third August 15, 1978
33-34222 4(d)(iii) Twenty-fourth September 1, 1979
33-34222 4(d)(iv) Twenty-fifth November 1, 1981
33-34222 4(d)(v) Twenty-sixth May 1, 1982
33-34222 4(d)(vi) Twenty-seventh May 1, 1986
33-00440 4(c)(iv) Twenty-eighth June 30, 1989
33-34222 4(d)(vii) Twenty-ninth January 1, 1990
33-65720 4(d)(iii) Thirtieth January 1, 1991
33-65720 4(d)(iv) Thirty-first August 15, 1991
33-65720 4(d)(v) Thirty-second March 15, 1992
33-65720 4(d)(vi) Thirty-third April 16, 1993
1-3198 4 Thirty-fourth December 1, 1993
Form 8-K
Dated
12/17/93
*4(b) Instruments relating to
American Falls bond guarantee.
(see Exhibits 10(f) and
10(f)(i)).
*4(c) 33-65720 4(f) Agreement to furnish certain
debt instruments.
*4(d) 33-00440 2(a)(iii) Agreement and Plan of Merger
dated March 10, 1989, between
Idaho Power Company, a Maine
Corporation, and Idaho Power
Migrating Corporation.
*4(e) 33-65720 4(e) Rights Agreement dated
January 11, 1990, between the
Company and First Chicago
Trust Company of New York, as
Rights Agent (The Bank of New
York, successor Rights Agent).
*10(a) 2-51762 5(a) Agreement, dated April 20,
1973, between the Company and
FMC Corporation.
*10(a)(i) 2-57374 5(b) Letter Agreement, dated
October 22, 1975, relating to
agreement filed as Exhibit
10(a).
*10(a)(ii) 2-62034 5(b)(i) Letter Agreement, dated
December 22, 1976, relating to
agreement filed as Exhibit
10(a).
*10(a)(iii) 33-65720 10(a) Letter Agreement, dated
December 11, 1981, relating to
agreement filed as Exhibit
10(a).
*10(b) 2-49584 5(b) Agreements, dated
September 22, 1969, between
the Company and Pacific
Power & Light Company relating
to the operation, construction
and ownership of the Jim
Bridger Project.
*10(b)(i) 2-51762 5(c) Amendment, dated February 1,
1974, relating to operation
agreement filed as Exhibit
10(b).
*10(c) 2-49584 5(c) Agreement, dated as of
October 11, 1973, between the
Company and Pacific Power &
Light Company.
*10(d) 2-49584 5(d) Agreement, dated as of
October 24, 1973, between the
Company and Utah Power & Light
Company.
*10(d)(i) 2-62034 5(f)(i) Amendment, dated January 25,
1978, relating to agreement
filed as Exhibit 10(d).
*10(e) 33-65720 10(b) Coal Purchase Contract, dated
as of June 19, 1986, among the
Company, Sierra Pacific Power
Company and Black Butte Coal
Company.
*10(f) 2-57374 5(k) Contract, dated March 31,
1976, between the United
States of America and American
Falls Reservoir District, and
related Exhibits.
*10(f)(i) 33-65720 10(c) Guaranty Agreement, dated
March 1, 1990, between the
Company and West One Bank, as
Trustee, relating to
$21,425,000 American Falls
Replacement Dam Bonds of the
American Falls Reservoir
District, Idaho.
*10(g) 2-57374 5(m) Agreement, effective April 15,
1975, between the Company and
The Washington Water Power
Company.
*10(h) 2-62034 5(p) Bridger Coal Company
Agreement, dated February 1,
1974, between Pacific
Minerals, Inc., and Idaho
Energy Resources Co.
*10(i) 2-62034 5(q) Coal Sales Agreement, dated
February 1, 1974, between
Bridger Coal Company and
Pacific Power & Light Company
and the Company.
*10(i)(i) 33-65720 10(d) Second Restated and Amended
Coal Sales Agreement, dated
March 7, 1988, among Bridger
Coal Company and PacifiCorp
(dba Pacific Power & Light
Company) and the Company.
10(i)(ii) Third Restated and Amended
Coal Sales Agreement, dated
January 1, 1996, among Bridger
Coal Company and PacifiCorp
(dba Pacific Power & Light
Company) and the Company.
*10(j) 2-62034 5(r) Guaranty Agreement, dated as
of August 30, 1974, with
Pacific Power & Light Company.
*10(k) 2-56513 5(i) Letter Agreement, dated
January 23, 1976, between the
Company and Portland General
Electric Company.
*10(k)(i) 2-62034 5(s) Agreement for Construction,
Ownership and Operation of the
Number One Boardman Station on
Carty Reservoir, dated as of
October 15, 1976, between
Portland General Electric
Company and the Company.
*10(k)(ii) 2-62034 5(t) Amendment, dated September 30,
1977, relating to agreement
filed as Exhibit 10(k).
*10(k)(iii) 2-62034 5(u) Amendment, dated October 31,
1977, relating to agreement
filed as Exhibit 10(k).
*10(k)(iv) 2-62034 5(v) Amendment, dated January 23,
1978, relating to agreement
filed as Exhibit 10(k).
*10(k)(v) 2-62034 5(w) Amendment, dated February 15,
1978, relating to agreement
filed as Exhibit 10(k).
*10(k)(vi) 2-68574 5(x) Amendment, dated September 1,
1979, relating to agreement
filed as Exhibit 10(k).
*10(l) 2-68574 5(z) Participation Agreement, dated
September 1, 1979, relating to
the sale and leaseback of coal
handling facilities at the
Number One Boardman Station on
Carty Reservoir.
*10(m) 2-64910 5(y) Agreements for the Operation,
Construction and Ownership of
the North Valmy Power Plant
Project, dated December 12,
1978, between Sierra Pacific
Power Company and the Company.
*10(n)(i)1 1-3198 10(n)(i) The Revised Security Plans for
Form 10-K Senior Management Employees
for 1994 and for Directors-a non-
qualified, deferred
compensation plan effective
November 30, 1994.
*10(n)(ii)1 1-3198 10(n)(ii) The Executive Annual Incentive
Form 10-K Plan for senior management
for 1994 employees effective January 1,
1995.
*10(n)(iii)1 1-3198 10(n)(iii) The 1994 Restricted Stock
Form 10-K Plan for officers and key
for 1994 executives effective July 1, 1994.
*10(o) 33-65720 10(f) Residential Purchase and Sale
Agreement, dated August 22,
1981, among the United Stated
of American Department of
Energy acting by and through
the Bonneville Power
Administration, and the
Company.
*10(p) 33-65720 10(g) Power Sales Contact, dated
August 25, 1981, including
amendments, among the United
States of America Department
of Energy acting by and
through the Bonneville Power
Administration, and the Company.
*10(q) 33-65720 10(h) Framework Agreement, dated
October 1, 1984, between the
State of Idaho and the
Company relating to the
Company's Swan Falls and
Snake River water rights.
1 Compensatory Plan
*10(q)(i) 33-65720 10(h)(i) Agreement, dated October 25,
1984, between the State of
Idaho and the Company
relating to the agreement
filed as Exhibit 10(q).
*10(q)(ii) 33-65720 10(h)(ii) Contract to Implement, dated
October 25, 1984, between the
State of Idaho and the
Company relating to the
agreement filed as Exhibit 10(q).
*10(r) 33-65720 10(i) Agreement for Supply of Power
and Energy, dated
February 10, 1988, between
the Utah Associated Municipal
Power Systems and the Company.
*10(s) 33-65720 10(j) Agreement Respecting
Transmission Facilities and
Services, dated March 21,
1988 among PC/UP&L Merging
Corp. and the Company
including a Settlement
Agreement between PacifiCorp
and the Company.
*10(s)(i) 33-65720 10(j)(i) Restated Transmission
Services Agreement, dated
February 6, 1992, between
Idaho Power Company and PacifiCorp.
*10(t) 33-65720 10(k) Agreement for Supply of Power
and Energy, dated
February 23, 1989, between
Sierra Pacific Power Company
and the Company.
*10(u) 33-65720 10(l) Transmission Services
Agreement, dated May 18,
1989, between the Company and
the Bonneville Power Administration.
*10(v) 33-65720 10(m) Agreement Regarding the
Ownership, Construction,
Operation and Maintenance of
the Milner Hydroelectric
Project (FERC No. 2899),
dated January 22, 1990,
between the Company and the
Twin Falls Canal Company and
the Northside Canal Company
Limited.
*10(v)(i) 33-65720 10(m)(i) Guaranty Agreement, dated
February 10, 1992, between
the Company and New York Life
Insurance Company, as Note
Purchaser, relating to
$11,700,000 Guaranteed Notes
due 2017 of Milner Dam Inc.
*10(w) 33-65720 10(n) Agreement for the Purchase
and Sale of Power and Energy,
dated October 16, 1990,
between the Company and The
Montana Power Company.
*10(x) 1-3198 10(x) Agreement for design of
Form 10-Q substation dated October 4,
for 9/30/95 1995, between the Company and
Micron Technology, Inc.
12 Statement Re: Computation of
Ratio of Earnings to Fixed
Charges.
12(a) Statement Re: Computation of
Supplemental Ratio of
Earnings to Fixed Charges.
12(b) Statement Re: Computation of
Ratio of Earnings to Combined
Fixed Charges and Preferred
Dividend Requirements.
12(c) Statement Re: Computation of
Supplemental Ratio of
Earnings to Combined Fixed
Charges and Preferred
Dividend Requirements.
15 Letter re: unaudited interim
financial information.
27 Financial Data Schedule
(b) Reports on Form 8-K. The following report on Form 8-K
was filed for the three months ended March 31, 1996.
1. Item 7. Financial Statements and Exhibits -
A report on Form 8-K dated February 27, 1996 was
filed by the Company containing Financial Statements
and certain exhibits.
*Previously Filed and Incorporated Herein By Reference.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this amendment to be signed on its
behalf by the undersigned thereunto duly authorized.
IDAHO POWER COMPANY
(Registrant)
Date May 7, 1996 By: /s/ J LaMont Keen
J LaMont Keen
Vice President, Chief Financial
Officer and Treasurer
(Principal Financial Officer and
Principal Accounting Officer)
<TABLE>
<CAPTION>
Exhibit 12
Idaho Power Company
Consolidated Financial Information
Ratio of Earnings to Fixed Charges
Twelve Months
Twelve Months Ended December 31, Ended
(Thousands of Dollars) March 31,
1991 1992 1993 1994 1995 1996
<S> <C> <C> <C> <C> <C> <C>
Computation of Ratio of Earnings to
Fixed Charges:
Consolidated net income $ 57,872 $ 59,990 $ 84,464 $ 74,930 $ 86,921 $ 96,404
Income taxes:
Income taxes (includes amounts charged
to other income and deductions) 24,321 24,601 38,057 35,307 49,497 53,018
Investment tax credit adjustment (3,177) (1,439) (1,583) (1,064) (1,086) (1,374)
Total income taxes 21,144 23,162 36,474 34,243 48,412 51,644
Income before income taxes 79,016 83,152 120,938 109,173 135,333 148,048
Fixed Charges:
Interest on long-term debt 54,370 53,408 53,706 51,173 51,146 51,320
Amortization of debt discount,
expense and premium - net 374 392 507 567 567 570
Interest on short-term bank loans 935 647 220 1,157 3,144 2,982
Other interest 3,297 1,011 2,023 1,537 1,598 1,726
Interest portion of rentals 884 683 1,077 794 925 994
Total fixed charges 59,860 56,141 57,533 55,228 57,381 57,592
Earnings - as defined $138,876 $139,293 $178,471 $164,401 $192,714 $205,640
Ratio of earnings to fixed charges 2.32X 2.48X 3.10X 2.98X 3.36X 3.57X
</TABLE>
<TABLE>
<CAPTION>
Exhibit 12(a)
Idaho Power Company
Consolidated Financial Information
Supplemental Ratio of Earnings to Fixed Charges
Twelve Months
Twelve Months Ended December 31, Ended
(Thousands of Dollars) March 31,
1991 1992 1993 1994 1995 1996
<S> <C> <C> <C> <C> <C> <C>
Computation of Ratio of Earnings to
Fixed Charges:
Consolidated net income $ 57,872 $ 59,990 $ 84,464 $ 74,930 $ 86,921 $ 96,404
Income taxes:
Income taxes (includes amounts charged
to other income and deductions) 24,321 24,601 38,057 35,307 49,497 53,018
Investment tax credit adjustment (3,177) (1,439) (1,583) (1,064) (1,086) (1,374)
Total income taxes 21,144 23,162 36,474 34,243 48,412 51,644
Income before income taxes 79,016 83,152 120,938 109,173 135,333 148,048
Fixed Charges:
Interest on long-term debt 54,370 53,408 53,706 51,173 51,146 51,320
Amortization of debt discount,
expense and premium - net 374 392 507 567 567 570
Interest on short-term bank loans 935 647 220 1,157 3,144 2,982
Other interest 3,297 1,011 2,023 1,537 1,598 1,726
Interest portion of rentals 884 683 1,077 794 925 994
Total fixed charges 59,860 56,141 57,533 55,228 57,381 57,592
Suppl increment to fixed charges* 1,599 2,487 2,631 2,622 2,611 2,609
Total supplemental fixed charges 61,459 58,628 60,164 57,850 59,992 60,201
Supplemental earnings - as defined $140,475 $141,780 $181,102 $167,023 $195,325 $208,499
Supplemental ratio of earnings to fixed
charges 2.29X 2.42X 3.01X 2.89X 3.26X 3.46X
<F1>
* Explanation of increment:
Interest on the guaranty of American Falls Reservoir District Bonds and Milner Dam Inc.
notes which are already included in operating expense.
</TABLE>
<TABLE>
<CAPTION>
Exhibit 12(b)
Idaho Power Company
Consolidated Financial Information
Ratio of Earnings to Combined Fixed Charges and Preferred Dividend Requirements
Twelve Months
Twelve Months Ended December 31, Ended
(Thousands of Dollars) March 31,
1991 1992 1993 1994 1995 1996
<S> <C> <C> <C> <C> <C> <C>
Computation of Ratio of Earnings to
Fixed Charges:
Consolidated net income $ 57,872 $ 59,990 $ 84,464 $ 74,930 $ 86,921 $ 96,404
Income taxes:
Income taxes (includes amounts charged
to other income and deductions) 24,321 24,601 38,057 35,307 49,497 53,018
Investment tax credit adjustment (3,177) (1,439) (1,583) (1,064) (1,086) (1,374)
Total income taxes 21,144 23,162 36,474 34,243 48,412 51,644
Income before income taxes 79,016 83,152 120,938 109,173 135,333 148,048
Fixed Charges:
Interest on long-term debt 54,370 53,408 53,706 51,173 51,146 51,320
Amortization of debt discount,
expense and premium - net 374 392 507 567 567 570
Interest on short-term bank loans 935 647 220 1,157 3,144 2,982
Other interest 3,297 1,011 2,023 1,537 1,598 1,726
Interest portion of rentals 884 683 1,077 794 925 994
Total fixed charges 59,860 56,141 57,533 55,228 57,381 57,592
Preferred dividends requirements 6,663 7,611 8,547 10,682 12,392 12,110
Total fixed charges and
preferred dividends 66,523 63,752 66,080 65,910 69,773 69,702
Earnings - as defined $138,876 $139,293 $178,471 $164,401 $192,714 $205,640
Ratio of earnings to fixed charges and
preferred dividends 2.09X 2.18X 2.70X 2.49X 2.76X 2.95X
</TABLE>
<TABLE>
<CAPTION>
Exhibit 12(c)
Idaho Power Company
Consolidated Financial Information
Supplemental Ratio of Earnings to Combined Fixed Charges and Preferred Dividend
Requirements
Twelve Months
Twelve Months Ended December 31, Ended
(Thousands of Dollars) March 31,
1991 1992 1993 1994 1995 1996
<S> <C> <C> <C> <C> <C> <C>
Computation of Ratio of Earnings to
Fixed Charges:
Consolidated net income $ 57,872 $ 59,990 $ 84,464 $ 74,930 $ 86,921 $ 96,404
Income taxes:
Income taxes (includes amounts charged
to other income and deductions) 24,321 24,601 38,057 35,307 49,497 53,018
Investment tax credit adjustment (3,177) (1,439) (1,583) (1,064) (1,086) (1,374)
Total income taxes 21,144 23,162 36,474 34,243 48,412 51,644
Income before income taxes 79,016 83,152 120,938 109,173 135,333 148,048
Fixed Charges:
Interest on long-term debt 54,370 53,408 53,706 51,173 51,146 51,320
Amortization of debt discount,
expense and premium - net 374 392 507 567 567 570
Interest on short-term bank loans 935 647 220 1,157 3,144 2,982
Other interest 3,297 1,011 2,023 1,537 1,598 1,726
Interest portion of rentals 884 683 1,077 794 925 994
Total fixed charges 59,860 56,141 57,533 55,228 57,381 57,592
Suppl increment to fixed charges* 1,599 2,487 2,631 2,622 2,611 2,609
Supplemental fixed charges 61,459 58,628 60,164 57,850 59,992 60,201
Preferred dividend requirements 6,663 7,611 8,547 10,682 12,392 12,110
Total supplemental fixed charges
and preferred dividends 68,122 66,239 68,711 68,532 72,384 72,311
Supplemental earnings - as defined $140,475 $141,780 $181,102 $167,023 $195,325 $208,249
Supplemental ratio of earnings to fixed
charges and preferred dividends 2.06X 2.14X 2.64X 2.44X 2.70X 2.88X
<F2>
* Explanation of increment:
Interest on the guaranty of American Falls Reservoir District Bonds
and Milner Dam Inc. Notes which are already included in operating expense.
</TABLE>
Exhibit 15
Idaho Power Company
Boise, Idaho
We have made a review, in accordance with standards established by the
American Institute of Certified Public Accountants, of the unaudited
interim financial information of Idaho Power Company and subsidiaries
for the periods ended March 31, 1996 and 1995, as indicated in our
report dated April 30, 1996; because we did not perform an audit, we
expressed no opinion on that information.
We are aware that our report referred to above, which is included
in Amendment No. 1 to your Quarterly Report on Form 10-Q/A for the quarter
ended March 31, 1996, is incorporated by reference in Registration Statement
Nos. 33-65720, 333-00139, and 33-51215 on Form S-3, and Registration
Statement No. 33-56071 on Form S-8.
We also are aware that the aforementioned report, pursuant to Rule
436(c) under the Securities Act, is not considered a part of the
Registration Statement prepared or certified by an accountant or a
report prepared or certified by an accountant within the meaning of
Sections 7 and 11 of that Act.
DELOITTE & TOUCHE LLP
Portland, Oregon
May 7, 1996
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
This schedule contains summary financial information extracted from (balance
sheets, income statements and cash flow statements) and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 1,670,578
<OTHER-PROPERTY-AND-INVEST> 31,720
<TOTAL-CURRENT-ASSETS> 151,029
<TOTAL-DEFERRED-CHARGES> 393,175
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 2,246,502
<COMMON> 94,031
<CAPITAL-SURPLUS-PAID-IN> 358,643
<RETAINED-EARNINGS> 223,125
<TOTAL-COMMON-STOCKHOLDERS-EQ> 675,798
0
132,150
<LONG-TERM-DEBT-NET> 659,191
<SHORT-TERM-NOTES> 1,016
<LONG-TERM-NOTES-PAYABLE> 23,383
<COMMERCIAL-PAPER-OBLIGATIONS> 34,000
<LONG-TERM-DEBT-CURRENT-PORT> 20,517
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 700,447
<TOT-CAPITALIZATION-AND-LIAB> 2,246,502
<GROSS-OPERATING-REVENUE> 146,629
<INCOME-TAX-EXPENSE> 17,466
<OTHER-OPERATING-EXPENSES> 88,139
<TOTAL-OPERATING-EXPENSES> 105,605
<OPERATING-INCOME-LOSS> 41,024
<OTHER-INCOME-NET> 3,341
<INCOME-BEFORE-INTEREST-EXPEN> 44,365
<TOTAL-INTEREST-EXPENSE> 14,153
<NET-INCOME> 30,211
1,952
<EARNINGS-AVAILABLE-FOR-COMM> 28,259
<COMMON-STOCK-DIVIDENDS> 34,962
<TOTAL-INTEREST-ON-BONDS> 0
<CASH-FLOW-OPERATIONS> 57,025
<EPS-PRIMARY> 0.75
<EPS-DILUTED> 0.75
</TABLE>
Exhibit 10 (i) (ii)
In connection with the construction, ownership and operation
of the Jim Bridger plant located in Sweetwater County, Wyoming,
PacifiCorp and Idaho Power Company created a joint venture,
Bridger Coal Company, to own and operate the coal mine adjacent
to the Jim Bridger plant. Recently, the Second Restated and
Amended Coal Sales Agreement dated March 7, 1988 ("Second
Restated Amendment"), among PacifiCorp, Idaho Power Company and
Bridger Coal Company, covering the delivery of coal from the Jim
Bridger Coal Mine to the Jim Bridger plant was amended with the
Third Restated and Amended Coal Sales Agreement dated January 1,
1996 ("Third Restated Agreement"). The Third Restated Agreement
incorporates previous amendments to the Second Restated Agreement
and some additional amendments. Those amendments update price
components and related indices, make changes to reflect new
operational practices as a result of the installation of an
overland conveyor system by Bridger Coal Company, extend the term
of the Second Restated Agreement for an additional 10 years to
the year 2024, subject additional coal purchases by PacifiCorp
and Idaho Power Company from Bridger Coal Company to the terms
and conditions of the Third Restated Agreement except for price,
revise limitations on the maximum amount of coal which can be
delivered and replace price reviews with the then current cost of
coal study results.
