SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report February 27, 1996
(Date of earliest event reported)
---------------------------
IDAHO POWER COMPANY
(Exact name of registrant as specified in charter)
Idaho 1-3198 82-0130980
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
1221 W Idaho Street
Boise, Idaho 83702-5627
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, (208) 388-2200
_____________________________________________________
Former name or address, if changed since last report.
(This document consists of 28 pages)
Idaho Power Company
Form 8-K
Items 1 through 6 and Item 8 are inapplicable and have been
omitted herefrom.
Item 7. Financial Statements and Exhibits
(a) Financial Statements
Independent Auditors' Report.
Consolidated Statements of Income for Years Ended
December 31, 1995, 1994 and 1993.
Consolidated Statements of Retained Earnings for
Years Ended December 31, 1995, 1994 and 1993.
Consolidated Balance Sheets at December 31, 1995,
1994 and 1993.
Consolidated Statements of Capitalization at
December 31, 1995, 1994 and 1993.
Notes to Consolidated Financial Statements.
Schedule II - Consolidated Valuation and Qualifying
Accounts.
(c) Exhibits
12 - Ratio of Earnings to Fixed Charges.
12(a)Supplemental Ratio of Earnings to Fixed
Charges.
12(b)Ratio of Earnings to Combined Fixed Charges
and Preferred Dividend Requirements.
12(c)Supplemental Ratio of Earnings to Combined
Fixed Charges and Preferred Dividend
Requirements.
23 - Auditor Consent.
27 - Financial Data Schedule
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly authorized.
IDAHO POWER COMPANY
By: /s/ J LaMont Keen
J LaMont Keen
Vice President and Chief Financial Officer
Dated: February 27, 1996
INDEPENDENT AUDITORS' REPORT
Board of Directors and Shareowners of Idaho Power Company:
We have audited the accompanying consolidated financial statements
of Idaho Power Company and its subsidiaries listed in the accompanying
index to financial statements and financial statement schedules
at Item 8. These financial statements and financial statement
schedules are the responsibility of the Company's management. Our
responsibility is to express an opinion on the financial statements
and financial statement schedules based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such consolidated financial statements present
fairly, in all material respects, the consolidated financial
position of Idaho Power Company and subsidiaries at December 31,
1995, 1994, and 1993, and the results of their operations and
their cash flows for the years then ended, in conformity with
generally accepted accounting principles. Also, in our opinion,
such financial statement schedules, when considered in relation to
the basic consolidated financial statements taken as a whole,
present fairly in all material respects the information set forth
therein.
Deloitte & Touche LLP
Portland, Oregon
January 31, 1996
IDAHO POWER COMPANY
CONSOLIDATED STATEMENTS OF INCOME
Year Ended December 31,
1995 1994 1993
(Thousands of Dollars)
REVENUES (Note 1) $545,621 $543,658 $540,402
EXPENSES:
Operation:
Purchased power (Notes 8 and 10) 54,586 60,216 45,361
Fuel expense (Note 10) 54,691 94,888 87,855
Power cost adjustment (Note 1) 7,292 (12,076) (1,551)
Other 126,714 123,328 122,803
Maintenance 35,953 43,490 43,136
Depreciation (Note 1) 67,415 60,202 58,724
Taxes other than income taxes 22,979 23,945 22,129
Total expenses 369,630 393,993 378,457
INCOME FROM OPERATIONS 175,991 149,665 161,945
OTHER INCOME:
Allowance for equity funds used
during construction (Note 1) (16) 1,680 3,060
Other - Net 14,372 10,480 9,924
Total other income 14,356 12,160 12,984
INTEREST CHARGES:
Interest on long-term debt 51,146 51,172 53,706
Other interest (Notes 1 and 7) 5,309 3,261 2,750
Total interest charges 56,456 54,433 56,456
Allowance for borrowed funds used during
construction (Note 1) (1,442) (1,781) (2,465)
Net interest charges 55,014 52,652 53,991
INCOME BEFORE INCOME TAXES 135,333 109,173 120,938
INCOME TAXES (Notes 1 and 2) 48,412 34,243 36,474
NET INCOME 86,921 74,930 84,464
Dividends on preferred stock (Note 4) 7,991 7,398 6,009
EARNINGS ON COMMON STOCK $78,930 $67,532 $78,455
AVERAGE COMMON SHARES
OUTSTANDING (000) 37,612 37,499 36,675
EARNINGS PER SHARE OF
COMMON STOCK (Note 3) $ 2.10 $ 1.80 $ 2.14
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
Year Ended December 31,
1995 1994 1993
(Thousands of Dollars)
RETAINED EARNINGS
Beginning of year $220,838 $222,900 $212,404
NET INCOME 86,921 74,930 84,464
Total 307,759 297,830 296,868
DIVIDENDS:
Preferred stock (Note 4) 7,991 7,398 6,009
Common stock (per share: 1995-1993-$1.86)
(Note 3) 69,941 69,594 67,959
Total dividends 77,932 76,992 73,968
RETAINED EARNINGS
End of year $229,827 $220,838 $222,900
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
CONSOLIDATED BALANCE SHEETS
ASSETS
December 31,
1995 1994 1993
(Thousands of Dollars)
ELECTRIC PLANT (Notes 1, 5 and 10):
In service (at original cost) $2,481,830 $2,383,898 $2,249,723
Accumulated provision for depreciation (830,615) (775,033) (728,979)
In service - Net 1,651,215 1,608,865 1,520,744
Construction work in progress 20,564 46,628 92,682
Held for future use 1,106 1,150 2,958
Electric plant - Net 1,672,885 1,656,643 1,616,384
INVESTMENTS AND OTHER PROPERTY 16,826 18,034 20,772
CURRENT ASSETS:
Cash and cash equivalents (Note 1) 8,468 7,748 8,228
Receivables:
Customer 33,357 31,889 29,741
Allowance for uncollectible accounts (1,397) (1,377) (1,377)
Notes 5,134 4,962 5,616
Employee notes receivable 4,648 5,444 5,909
Other 10,770 4,316 1,858
Accrued unbilled revenues (Note 1) 25,025 29,115 25,583
Materials and supplies (at average cost) 25,937 24,141 23,372
Fuel stock (at average cost) 13,063 11,310 11,553
Prepayments (Note 9) 20,778 21,398 20,975
Regulatory assets associated
with income taxes (Note 1) 5,777 5,674 4,914
Total current assets 151,561 144,620 136,372
DEFERRED DEBITS:
American Falls and Milner water rights 32,440 32,605 32,755
Company-owned life insurance (Note 9) 56,066 49,510 45,294
Regulatory assets associated with income
taxes (Note 1) 200,379 179,311 171,569
Regulatory assets - other (Note 1) 68,348 67,713 35,036
Other 43,248 43,380 39,235
Total deferred debits 400,481 372,519 323,889
TOTAL $2,241,753 $2,191,816 $2,097,417
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
CONSOLIDATED BALANCE SHEETS
CAPITALIZATION AND LIABILITIES
December 31,
1995 1994 1993
(Thousands of Dollars)
CAPITALIZATION (See Page 9):
Common stock equity (Note 3):
Common stock - $2.50 par value (shares
authorized 50,000,000; shares outstanding
1995 - 37,612,351, 1994 - 37,612,351
and 1993 - 37,085,055 $ 94,031 $ 94,031 $ 92,713
Premium on capital stock 363,044 363,063 350,882
Capital stock expense (4,127) (4,132) (4,128)
Retained earnings 229,827 220,838 222,900
Total common stock equity 682,775 673,800 662,367
Preferred stock (Note 4) 132,181 132,456 132,751
Long-term debt (Note 5) 672,618 693,206 693,780
Total capitalization 1,487,574 1,499,462 1,488,898
CURRENT LIABILITIES:
Long-term debt due within one year 20,517 517 466
Notes payable (Note 7) 53,020 55,000 4,000
Accounts payable 40,483 32,063 31,912
Taxes accrued 15,409 16,394 15,452
Interest accrued 14,785 14,755 14,920
Accumulated deferred income taxes
(Notes 1 & 2) 5,777 5,674 4,914
Other 12,866 12,574 13,731
Total current liabilities 162,858 136,977 85,395
DEFERRED CREDITS:
Regulatory liabilities associated with
accumulated deferred investment tax
credits (Notes 1 and 2) 70,507 71,593 72,013
Accumulated deferred income taxes
(Notes 1 and 2) 408,394 375,252 353,366
Regulatory liabilities associated
with income taxes (Note 1) 34,554 35,090 34,968
Regulatory liabilities - other (Note 1) 789 626 4,235
Other (Note 9) 77,076 72,816 58,542
Total deferred credits 591,321 555,377 523,124
COMMITMENTS AND CONTINGENT
LIABILITIES (Note 8)
TOTAL $2,241,753 $2,191,816 $2,097,417
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
CONSOLIDATED STATEMENTS OF CAPITALIZATION
December 31,
1995 % 1994 % 1993 %
(Thousands of Dollars)
COMMON STOCK EQUITY (Note 3):
Common stock $ 94,031 $ 94,031 $ 92,713
Premium on capital stock 363,044 363,063 350,882
Capital stock expense (4,127) (4,132) (4,128)
Retained earnings 229,827 220,838 222,900
Total common stock equity 682,775 46 673,800 45 662,367 44
PREFERRED STOCK (Note 4):
4% preferred stock 17,181 17,456 17,751
7.68% Series, serial
preferred stock 15,000 15,000 15,000
8.375% Series, serial
preferred stock 25,000 25,000 25,000
Auction rate preferred stock 50,000 50,000 50,000
7.07% Series, serial
preferred stock 25,000 25,000 25,000
Total preferred stock 132,181 9 132,456 9 132,751 9
LONG-TERM DEBT (Note 5):
First mortgage bonds:
5 1/4 % Series due 1996 20,000* 20,000 20,000
5.33 % Series due 1998 30,000 30,000 30,000
8.65 % Series due 2000 80,000 80,000 80,000
6.40 % Series due 2003 80,000 80,000 80,000
8 % Series due 2004 50,000 50,000 50,000
9.50 % Series due 2021 75,000 75,000 75,000
7.50 % Series due 2023 80,000 80,000 80,000
8 3/4 % Series due 2027 50,000 50,000 50,000
9.52 % Series due 2031 25,000 25,000 25,000
Total first mortgage bonds 490,000 490,000 490,000
*Amount due within one year (20,000) - -
Net first mortgage bonds 470,000 490,000 490,000
Pollution control revenue bonds:
5.90 % Series due 2003 24,200* 24,650* 25,050*
6.0 % Series due 2007 24,000 24,000 24,000
7 1/4 % Series due 2008 4,360 4,360 4,360
7 5/8 % Series 1983 - 1984
due 2013 - 2014 68,100 68,100 68,100
8.30 % Series 1984 due 2014 49,800 49,800 49,800
Total pollution control
revenue bonds 170,460 170,910 171,310
*Amount due within one year (450) (450) (400)
Net pollution control
revenue bonds 170,010 170,460 170,910
REA notes 1,700 1,768 1,834
Amount due within one year (67) (67) (66)
Net REA notes 1,633 1,701 1,768
American Falls bond guarantee 20,740 20,905 21,055
Milner Dam note guarantee 11,700 11,700 11,700
Unamortized premium/
discount-Net (Note 1) (1,466) (1,560) (1,653)
Total long-term debt 672,618 45 693,206 46 693,780 47
TOTAL CAPITALIZATION $1,487,574 100 $1,499,462 100 $1,488,898 100
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
1995 1994 1993
(Thousands of Dollars)
OPERATING ACTIVITIES:
Cash received from operations:
Retail revenues $468,821 $457,202 $434,625
Wholesale revenues 59,260 62,110 84,726
Other revenues 22,825 23,711 23,411
Fuel paid (61,741) (94,530) (83,885)
Purchased power paid (52,526) (62,592) (50,246)
Other operation & maintenance paid (154,209) (171,774) (162,014)
Interest pd. (incl. long and
short-term debt only) (54,303) (52,376) (56,348)
Income taxes paid (40,402) (16,518) (32,512)
Taxes other than income taxes paid (22,939) (21,698) (22,165)
Other operating cash receipts and payments-Net 3,644 2,122 8,213
Net cash provided by operating activities 168,430 125,657 143,805
FINANCING ACTIVITIES:
First mortgage bonds issued - - 188,136
PC bond fund requisitions/other long-term debt - - 5,594
Common stock issued - 13,402 26,781
Preferred stock issued - - 24,781
Short-term borrowings - Net (2,000) 51,000 (2,140)
Long-term debt retirement (519) (466) (191,878)
Preferred stock retirement (151) (166) (65)
Dividends on preferred stock (7,888) (7,565) (5,914)
Dividends on common stock (69,967) (69,594) (67,959)
Other sources (781) - -
Net cash - financing activities (81,306) (13,389) (22,664)
INVESTING ACTIVITIES:
Additions to utility plant (83,965) (110,523) (122,949)
Conservation (5,688) (6,830) (6,687)
Other 3,249 4,605 11,757
Net cash - investing activities (86,404) (112,748) (117,879)
Change in cash and cash equivalents 720 (480) 3,262
Cash and cash equivalents beginning of year 7,748 8,228 4,966
Cash and cash equivalents end of year $ 8,468 $ 7,748 $ 8,228
RECONCILIATION OF NET INCOME TO NET
CASH PROVIDED BY OPERATING
ACTIVITIES:
Net income $ 86,921 $ 74,930 $ 84,464
Adjustments to reconcile net income to net cash:
Depreciation 67,415 60,202 58,724
Deferred income taxes 11,539 14,265 5,997
Investment tax credit - Net (1,086) (1,064) (1,583)
Allowance for funds used during construction (1,425) (3,461) (5,525)
Postretirement benefits funding (excl
pensions) (2,857) (5,182) (7,481)
Changes in operating assets and liabilities:
Accounts receivable 5,285 (635) 2,360
Fuel inventory (7,050) 358 3,970
Accounts payable 2,061 (2,376) (4,885)
Taxes payable (2,519) 7,296 (1,141)
Interest payable 2,100 1,656 (1,010)
Other - Net 8,046 (20,332) 9,915
Net cash provided by operating activities $168,430 $125,657 $ 143,805
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
PRINCIPLES OF CONSOLIDATION - The consolidated financial
statements include the accounts of the Company and its wholly-
owned subsidiaries, Idaho Energy Resources Co (IERCo), Ida-West
Energy Company (Ida-West), IDACORP, Inc., Idaho Utility Products
Company (IUPCo), and Stellar Dynamics. All significant
intercompany transactions and balances have been eliminated in
consolidation.
SYSTEM OF ACCOUNTS - The Company is an electric utility and its
accounting records conform to the Uniform System of Accounts
prescribed by the Federal Energy Regulatory Commission (FERC) and
adopted by the public utility commissions of Idaho, Oregon,
Nevada and Wyoming.
ELECTRIC PLANT - The cost of additions to electric plant in
service represents the original cost of contracted services,
direct labor and material, allowance for funds used during
construction and indirect charges for engineering, supervision
and similar overhead items. Maintenance and repairs of property
and replacements and renewals of items determined to be less than
units of property are charged to operations. For property
replaced or renewed the original cost plus removal cost less
salvage is charged to accumulated provision for depreciation
while the cost of related replacements and renewals is added to
electric plant.
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
ratemaking 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 FERC, the Company's weighted average monthly AFDC rates
for 1995, 1994 and 1993 were 6.1 percent, 8.2 percent and 9.6
percent, respectively.
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.
POWER COST ADJUSTMENT- 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.
DEPRECIATION - All electric plant is depreciated using the
straight-line method. Annual depreciation provisions as a percent
of average depreciable electric plant in service approximated
2.90 percent in 1995, 2.93 percent in 1994 and 2.92 percent in
1993 and are considered adequate to amortize the original cost
over the estimated service lives of the properties.
INCOME TAXES - The Company follows the liability method of
completing deferred taxes on all temporary differences between
book and tax basis of assets and liabilities and adjust deferred
tax liabilities and assets for enacted changes in tax laws or
rates. Consistent with orders and directives of the Idaho Public
Utilities Commission (IPUC), the regulatory authority having
principal jurisdiction, deferred income taxes (commonly referred
to as normalized accounting) are provided for the difference
between income tax depreciation and straight-line depreciation on
coal-fired generation facilities and properties acquired after
1980. On other facilities, deferred income taxes are provided for
the difference between accelerated income tax depreciation and
straight-line depreciation using tax guideline lives on assets
acquired prior to 1981. Deferred income taxes are not provided
for those income tax timing differences where the prescribed
regulatory accounting methods do not provide for current recovery
in rates. Regulated enterprises are required to recognize such
adjustments as regulatory assets or liabilities if it is probable
that such amounts will be recovered from or returned to customers
in future rates (see Note 2).
The state of Idaho allows a three percent investment tax credit
(ITC) upon certain plant additions. ITC earned on regulated
assets are deferred and amortized to income over the estimated
service lives of the related properties and credits earned on non-
regulated assets or investments are recognized in the year
earned.
In 1995, the Company received an accounting order from the IPUC
approving acceleration of amortization of up to $30.0 million of
regulatory liabilities associated with deferred ITC to non-
operating income subject to Internal Revenue Service (IRS) and
the Idaho State Tax Commission (STC) approvals. The IRS
application for approval has been filed and the STC has approved
the application. Acceleration of ITC amortization is to be
utilized until the actual return on year-end common equity is
11.5 percent. No accelerated ITC was recognized in 1995.
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.
REGULATION OF UTILITY OPERATIONS - The Company follows Statement
of Accounting Standards (SFAS) No. 71, "Accounting for the
Effects of Certain Types of Regulation", and its financial
statements reflect the effects of the different ratemaking
principles followed by the various jurisdictions regulating the
Company. Pursuant to SFAS No. 71 the Company capitalizes, as
deferred regulatory assets, incurred costs which are expected to
be recovered in future utility rates. The Company also records as
deferred regulatory liabilities the current recovery in utility
rates of costs which are expected to be paid in the future.
The following is a breakdown of regulatory assets and liabilities
for the years 1995, 1994 and 1993:
1995 1994 1993
Assets Liab. Assets Liab. Assets Liab.
(Millions of Dollars)
Income taxes $206.2 $ 34.6 $185.0 $ 35.1 $176.5 $ 35.0
Conservation 36.3 29.7 21.2
Employee benefits 8.3 9.5 7.4
Other 23.7 0.7 28.5 0.6 6.4 4.2
Accumulated deferred
investment tax credits 70.5 71.6 72.0
Total $274.5 $105.8 $252.7 $107.3 $211.5 $111.2
The regulatory environment is becoming more complex resulting
from the expanding effects of competition. In the event that
recovery of cost through rates becomes unlikely or uncertain,
this may force the Company away from the cost of service
ratemaking and SFAS No. 71 would no longer apply. If the Company
were to discontinue application of SFAS No. 71 for some or all of
its operations then these items may represent stranded
investments. Certain regulators are currently reviewing ways to
allow the electric utilities to recover these investments in the
event the customers are allowed to choose their energy supplier.
However, if the Company is not allowed recovery of these
investments it would be required to write off the applicable
portion of regulatory assets and the financial effects could be
significant. At December 31, 1995, the Company had $17.6 million
of regulatory assets that were not earning a return on investment
excluding the $206.2 million that relates to income taxes.
OTHER ACCOUNTING POLICIES - Debt discount, expense and premium
are being amortized over the terms of the respective debt issues.
RECLASSIFICATIONS - Certain items previously reported for years
prior to 1995 have been reclassified to conform with the current
year's presentation. Net income was not affected by these
reclassifications.
2. INCOME TAXES:
1995 1994 1993
(Thousands of Dollars)
A reconciliation between the statutory federal income tax rate
and the effective rate is as follows:
Computed income taxes based on
statutory federal income tax rate $ 47,367 $ 38,210 $ 42,328
Change in taxes resulting from:
AFUDC (504) (1,211) (1,798)
Investment tax credits (2,837) (3,351) (2,898)
Repair allowance (3,150) (1,575) (2,975)
Elimination of amounts provided
in prior years (1,963) (2,607) (4,686)
Current state income taxes 3,275 1,496 2,693
Depreciation 5,493 2,812 4,116
Other 731 469 (306)
Total provision for federal and state
income taxes $48,412 $34,243 $ 36,474
Effective tax rate 35.8% 31.4% 30.2%
The provision for income taxes consists of the following:
Income taxes currently payable:
Federal $33,456 $19,617 $27,892
State 4,503 1,425 4,168
Total 37,959 21,042 32,060
Income taxes deferred - Net of amortization:
Federal 10,904 12,595 5,928
State 635 1,670 69
Total 11,539 14,265 5,997
Investment and other tax credits:
Deferred 1,751 1,643 1,315
Restored (2,837) (2,707) (2,898)
Total (1,086) (1,064) (1,583)
Total provision for income taxes $ 48,412 $ 34,243 $ 36,474
The tax effects of significant items comprising the
Company's net deferred tax liability are as follows:
Deferred tax Liabilities:
Property, plant and equipment $237,655 $225,444 $217,343
Regulatory asset 206,156 184,986 176,483
Investment tax credit 70,507 71,593 72,013
Conservation programs 11,746 4,704 2,739
Other 18,489 17,811 11,384
Total 544,553 504,538 479,962
Deferred tax assets:
Regulatory liability 34,554 35,090 34,968
Advances for construction 14,823 10,542 8,103
Other 10,498 6,387 6,598
Total 59,875 52,019 49,669
Net deferred tax liabilities $484,678 $452,519 $430,293
The Company has settled Federal and Idaho tax liabilities on all
open years through the 1992 tax year except for amounts related
to a partnership which, in management's opinion, have been
adequately accrued for.
3. COMMON STOCK:
Changes in shares of the common stock of the Company for 1995,
1994 and 1993 were as follows:
Common Stock
Premium
$2.50 Par on Capital
Shares Value Stock
(Thousands of Dollars)
Balance at December 31, 1992 36,186,527 $ 90,466 $326,338
Gain on reacquired 4% preferred
stock (Note 4) - - 50
Stock purchase plans 898,528 2,247 24,494
Balance at December 31, 1993 37,085,055 92,713 350,882
Gain on reacquired 4% preferred
stock (Note 4) - - 126
Stock purchase plans 527,296 1,318 12,055
Balance at December 31, 1994 37,612,351 94,031 363,063
Gain on reacquired 4% preferred
stock (Note 4) - - 117
Restricted Stock Plan (Note 9) - - (136)
Balance at December 31, 1995 37,612,351 $ 94,031 $363,044
During the period of January 1993 through May 1994, the Company
issued original issue shares of common stock for its Dividend
Reinvestment and Stock Purchase Plan and the Employee Savings
Plan. During 1993 and 1994 common shares totaling 898,528 and
527,296 respectively, were issued to these plans.
As of December 31, 1995, the Company had 2,791,321 of its
authorized but unissued shares of common stock reserved for
future issuance under its Dividend Reinvestment and Stock
Purchase Plan and Employee Savings Plan.
On January 11, 1990, the Board of Directors adopted a Shareowner
Rights Plan (Plan). Under the Plan, the Company declared a
distribution of one Preferred Stock Right (Right) for each of the
Company's outstanding Common shares held on January 29, 1990 or
issued thereafter. The Rights are currently not exercisable and
will be exercisable only if a person or group (Acquiring Person)
either acquires ownership of 20 percent or more of the Company's
Voting Stock or commences a tender offer that would result in
ownership of 20 percent or more. The Company may redeem the
Rights at a price of $0.01 per Right anytime prior to acquisition
by an Acquiring Person of a 20 percent position.
Following the acquisition of a 20 percent position, each Right
will entitle its holder, subject to regulatory approval, to
purchase for $85 that number of shares of Common Stock or
Preferred Stock having a market value of $170.
If after the Rights become exercisable, the Company is acquired
in a merger or other business combination, 50 percent or more of
its consolidated assets or earnings power are sold or the
Acquiring Person engages in certain acts of self-dealing, each
Right entitles the holder to purchase for $85, shares of the
acquiring company's Common Stock having a market value of $170.
Any Rights that are or were held by an Acquiring Person become
void if either of these events occurs. The Rights expire on
January 11, 2000.
4. PREFERRED STOCK:
The number of shares of preferred stock outstanding at December
31, 1995, 1994 and 1993 were as follows:
Shares Outstanding at
December 31, Call Price
1995 1994 1993 Per Share
Preferred stock:
Cumulative, $100 par value:
4% preferred stock
(authorized 215,000 shares) 171,813 174,556 177,506 $104.00
Serial preferred stock,
7.68% Series (authorized
150,000 shares) 150,000 150,000 150,000 $102.97
Serial preferred stock, cumulative,
without par value; total of 3,000,000
shares authorized:
8.375% Series, $100 stated
value, (authorized 250,000
shares)(a) 250,000 250,000 250,000 $105.58 to
$100.37
7.07% Series, $100 stated
value, (authorized 250,000
shares)(b) 250,000 250,000 250,000 $103.535 to
$100.354
Auction rate preferred stock,
$100,000 stated value,
(authorized 500 shares)(c) 500 500 500 $100,000.00
Total 822,313 825,056 828,006
(a) Not redeemable prior to October 1, 1996.
(b) Not redeemable prior to July 1, 2003.
(c) Dividend rate at December 31, 1995 was 4.49% and ranged
between 4.36% and 4.71% during the year.
During 1995, 1994 and 1993 the Company reacquired and retired
2,743; 2,950 and 1,229 shares of 4% preferred stock resulting in
a net addition to premium on capital stock of $117,346, $126,066
and $50,151 respectively. As of December 31, 1995 the overall
effective cost of all outstanding preferred stock was 6.28
percent.
5. LONG-TERM DEBT:
The amount of first mortgage bonds issuable by the Company is
limited to a maximum of $900,000,000 and by property, earnings
and other provisions of the mortgage and supplemental indentures
thereto. Substantially all of the electric utility plant is
subject to the lien of the indenture. Pollution Control Revenue
Bonds, Series 1984, due December 1, 2014, are secured by First
Mortgage Bonds, Pollution Control Series A, which were issued by
the Company and are held by a Trustee for the benefit of the
bondholders.
First mortgage bonds maturing during the five-year period ending
2000 are $20,000,000 in 1996, $30,000,000 in 1998 and $80,000,000
in 2000. Sinking fund requirements for the first mortgage bonds
outstanding at December 31, 1995 are $5,398,000 per year. These
requirements may be met by the deposit of cash, deposit of bonds,
or by certification of property additions at the rate of 167% of
requirements. The Company's practice is to certify additional
property to meet the sinking fund requirements. In September
1993, 1994, and 1995 $400,000, $400,000 and $450,000
respectively, of the 5.90% Series, Pollution Control Revenue
Bonds, were retired pursuant to sinking fund requirements for
those years. Sinking fund requirements during the five-year
period ending 2000 for pollution control bonds outstanding at
December 31, 1995 are $450,000 in 1996 and $500,000 in 1997
through 2000. At December 31, 1993, 1994 and 1995, the overall
effective cost of all outstanding first mortgage bonds and
pollution control revenue bonds for all three years was 8.02
percent.
6. FAIR VALUE OF FINANCIAL INSTRUMENTS:
The estimated fair value of the Company's financial instruments
have been determined by the Company using available market
information and appropriate valuation methodologies. The use of
different market assumptions and/or estimation methodologies may
have a material effect on the estimated fair value amounts.
Cash and cash equivalents, customer and other receivables, notes
payable, accounts payable, interest accrued, and taxes accrued
are reported at their carrying value as these are a reasonable
estimate of their fair value. The total estimated fair value of
long-term debt was approximately $762,575,000 for 1993,
$682,647,000 for 1994 and $731,168,000 for 1995. The estimated
fair values for long-term debt are based upon quoted market
prices of the same or similar issues.
7. NOTES PAYABLE:
At January 1, 1996, the Company had regulatory authority to incur
up to $150,000,000 of short-term indebtedness. Under this
authority, total lines of credit maintained with various banks
amounted to $85,000,000. Under annual borrowing arrangements with
these banks, the Company is required to pay a fee of 8/100 of 1
percent on the available and committed lines of credit.
Commercial paper may be issued in an amount not to exceed 25
percent of revenues for the latest twelve-month period subject to
the $150,000,000 maximum described above and are supported by
bank lines of credit of an equal amount.
Balances and interest rates of short-term borrowings were as
follows:
Year Ended December 31,
1995 1994 1993
(Thousands of Dollars)
Balance at end of year $53,020 $55,000 $4,000
Effective annual interest rate
at end of year 6.0% 6.1% 6.9%(a)
(a) Effective rate has been inflated by the commitment fees
being larger than the interest paid for the year.
If the commitment fees were excluded the effective annual
interest rate at end of the year would have been 3.6%.
8. 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 $2,600,000 at December 31, 1995. The
commitments are generally revocable by the Company subject to
reimbursement of manufacturers' expenditures incurred and/or
other termination charges.
The Company is currently purchasing energy from 65 on-line
cogeneration and small power production facilities with contracts
ranging from 1 to 32 years. Under these contracts the Company
could be required to purchase up to 782,000 (MWH) annually.
During the fiscal year ended December 31, 1995, the Company
purchased 654,000 (MWH) at a cost of $38.0 million.
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.
9. BENEFIT PLANS:
Incentive Plan - The Company implemented two annual incentive
plans effective January 1, 1995. The Executive Annual Incentive
Plan and the Employee Incentive Plan tie a portion of each
employee's compensation to achieving annual operational and
financial goals. The plans share common goals designed to promote
safety, control capital expenditures, control operation and
maintenance expenses and increase annual earnings per share. At
December 31, 1995 the Company had recorded $2,898,785 of
incentive for the Plans.
Restricted Stock Plan - The 1994 Restricted Stock Plan ("Plan")
approved by shareholders at the May 1994 Annual Meeting was
implemented January 1, 1995 as an equity-based long-term
incentive plan. The performance-based grant approach and
administrative guidelines for the Plan were developed by the
Compensation Committee of the Board of Directors ("Committee")
during 1994. At December 31, 1995, there were 370,000 shares
reserved for the Plan. The first grant under the Plan was made to
all officers during January 1995. For the first grant, the
Committee has selected a three-year restricted period beginning
January 1, 1995, through December 31, 1997, with a single
financial performance goal of Cumulative Earnings Per Share
("CEPS"). Final award amounts will depend on the attainment by
the Company of the CEPS performance goal established by the
Committee and may be prorated in the event of death, disability
or retirement of an officer based on the number of whole months
of service the officer completes during the Restricted Period.
Upon the officer's termination of employment during the
Restricted Period for any other reason, all such shares will be
forfeited by the officer to the Trustee.
During 1995, the Company purchased and granted 9,480 shares of
the Company's common stock for this Plan. Of this amount 360
shares were forfeited in 1995. Restricted stock awards are
compensatory awards and the Company accrued compensation expense
of $91,200 for 1995 (which was charged to operations) based upon
the market value of the earned shares.
Pension Plan - The Company maintains a trusteed noncontributory
defined benefit pension plan for all employees who work 1,000
hours or more during a calendar year. The benefits under the plan
are based on years of service and the employee's final average
earnings. The Company's policy is to fund with an independent
corporate trustee at least the minimum required under the
Employee Retirement Income Security Act of 1974 but not more than
the maximum amount deductible for income tax purposes. The
Company funded $5.9 million in 1995, $5.5 million in 1994 and
$5.0 million in 1993. The plan's assets held by the trustee
consist primarily of listed stocks (both U.S. and foreign), fixed
income securities and investment grade real estate.
Deferred Compensation Plan - The Company has a nonqualified,
deferred compensation plan for certain senior management
employees and directors that provides for supplemental retirement
and death benefit payments to the participant and his or her
family. The plan is being financed by life insurance policies, of
which the Company is the beneficiary, with premiums being paid by
the Company. These policies have accumulated cash values of
$53.0, $47.1 and $42.4 million at December 31, 1995, 1994 and
1993, respectively, which do not qualify as plan assets in the
actuarial computation of the funded status. Based upon SFAS No.
87, the Company has recorded a net liability of $21.5 million as
of December 31, 1995.
The following tables set forth the amounts recognized in the
Company's financial statements and the funded status of both
plans in accordance with accounting standard SFAS No. 87,
"Employers' Accounting for Pensions."
Plan Costs for the Year: 1995 1994 1993
(Thousands of Dollars)
Pension plan:
Service cost $ 5,167 $ 6,049 $ 4,496
Interest cost 12,998 12,263 11,688
Actual return on plan assets (45,990) 312 (23,322)
Deferred gain (loss) on plan assets 31,489 (15,584) 9,848
Net cost $ 3,664 $ 3,040 $ 2,710
Approximate percentage included in
operating expenses 65% 67% 66%
Net deferred compensation plan costs charged to other
income (including life insurance and SFAS No. 87
liability accrual)(a) $ 37 $ 508 $ 1,372
(a) These charges to the Income Statement have been reduced
by gains from the Company-Owned Life Insurance of $2,320;
$2,724, and $1,638, for 1995, 1994 and 1993, respectively.
Funded status and significant assumptions as of December 31:
Deferred
Pension Plan Compensation Plan
1995 1994 1993 1995 1994 1993
(Thousands of Dollars)
Actuarial present value
of benefit obligations:
Vested benefit
obligation $145,334 $128,162 $134,292 $ 21,530 $19,148 $ 24,024
Accumulated benefit
obligation $150,688 $132,766 $139,270 $ 21,530 $19,148 $ 24,027
Projected benefit
obligation $193,133 $167,103 $179,895 $ 22,111 $ 19,681 $ 30,114
Plan assets at fair
value 204,760 165,839 169,920 - - -
Plan assets in excess
of (or less than)
projected benefit
obligation 11,627 (1,264) (9,975) (22,111) (19,681) (30,114)
Unrecognized net (gain)
loss from past
experience different
from that assumed (8,341) 6,040 17,295 4,389 2,173 7,295
Unrecognized prior
service cost 5,941 6,365 1,460 (3,097) (3,516) 2,546
Unrecognized net
(asset) obligation
existing at date of
initial adoption
(19.5 year straight
-line amortization) (2,493) (2,756) (3,019) 5,827 6,440 7,053
Minimum liability
adjustment - - - (6,538) (4,564) (10,807)
Net asset (liability)
included in the
balance sheet $ 6,734 $ 8,385 $ 5,761 $(21,530) $(19,148) $(24,027)
Discount rate to
compute projected
benefit obligation 7.25% 8.0% 7.0% 7.25% 8.0% 7.0%
Rate for future
compensation
increases 4.5 4.5 4.5 4.5 4.5 4.5
Expected long-term
rate of return on
plan assets 9.0 9.0 9.0 - - -
Supplemental Employee Retirement Plan (SERP) - The Company has a
nonqualified SERP that provides benefits in excess of Internal
Revenue Service limits (Section 401 (a) (17) of the Internal
Revenue Code) for highly paid individuals. The projected benefit
obligation of this plan was $1,581,000, $857,000 and $525,000 at
December 31, 1995, 1994 and 1993, respectively, with accrued
pension costs of $682,000, $396,000 and $226,000. The Company's
net periodic pension cost of this plan was $184,000, $125,000 and
$36,000 for the same periods.
Savings Plan - The Company has an Employee Savings Plan whereby,
for each $1 of employee contribution up to 6 percent of their
base salary the Company will match 100 percent of the first 2
percent employee contribution and 50 percent of the next 4
percent employee contribution, all such amounts to be invested by
a trustee to any or all of seven investment options. The
Company's contribution amounted to $2,426,840 in 1995, $2,410,200
in 1994 and $2,283,200 in 1993.
Postretirement Benefits - The Company maintains a defined benefit
postretirement plan (consisting of health care and life
insurance) that covers all employees who were enrolled in the
active group plan at the time of retirement, their spouses and
qualifying dependents. The plan provides for payment of hospital
services, physician services, prescription drugs, dental services
and various other health services, some of which have annual or
lifetime limits, after subtracting payments by Medicare or other
providers and after a stated deductible and co-payments have been
met. Participants become eligible for the benefits if they retire
from the Company after reaching age 55 with 15 years of service
or after 30 years of service. The plan is contributory with
retiree contributions adjusted annually. For those retirees that
were age 65 or older at December 31, 1992 the plan is
noncontributory. The Company also provides life insurance of one
times salary for pre-65 retirees and $20,000 for post-65 retirees
with the retirees paying a portion of the cost.
The following tables set forth the amounts to be recognized in
the Company's financial statements for year-end 1995, 1994 and
1993 and the funded status of the plan in accordance with
accounting standard SFAS No. 106 as of December 31:
1995 1994 1993
Postretirement Benefit Cost: (Thousands of Dollars)
Service Cost $ 763 $ 855 $ 750
Interest Cost 3,571 3,334 3,610
Actual return on plan assets (1,116) (1,114) (860)
Amortization of transition
obligation (20 year amortization) 2,040 2,040 2,040
Net amortization and deferral - - -
Regulatory assets 506 (1,907) (3,548)
Voluntary severance program 64 - -
Net cost $ 5,828 $ 3,208 $ 1,992
1995 1994 1993
Funded Status: (Thousands of Dollars)
Accumulated postretirement
benefit obligation (APBO) $(48,928 $(45,001) $(48,290)
Plan assets at fair value 15,920 12,116 11,840
APBO in excess of plan assets (33,008) (32,885) (36,450)
Unrecognized gain/losses 378 773 4,670
Unrecognized transition obligation 34,680 36,720 38,760
Prepaid postretirement benefit cost $ 2,050 $ 4,608 $ 6,980
Discount rate 7.50% 8.25% 7.25%
Medical and dental inflation rate 6.75 7.25 6.75
Long-term plan assets expected return 9.0 9.0 9.0
A one percent change in the medical inflation rate would change
the APBO by 7.2 percent and the postretirement expense for 1995
by 8.6 percent.
The Company has a retiree medical benefits funding program which
consists of life insurance policies on active employees of which
the Company is the beneficiary, and a qualified Voluntary
Employees Beneficiary Association (VEBA) Trust. The net charge to
other income for the life insurance policies was $1,754,300 in
1995, $776,400 in 1994 and $632,500 in 1993. The funding to the
VEBA was $916,200 in 1995, $743,600 in 1994 and $2,692,000 in
1993 and recorded as a prepayment. The VEBA trust represents plan
assets which are invested in variable life insurance policies,
Trust Owned Life Insurance (TOLI), on active employees. Inside
buildup in the TOLI policies is tax deferred and tax free if the
policy proceeds are paid to the Trust as death benefits. The
investment return assumption reflects an expectation that
investment income in the VEBA will be substantially tax free.
Postemployment Benefits - The Company provides certain benefits
to former or inactive employees, their beneficiaries, and covered
dependents after employment but before retirement. The Company
accrues for such postemployment benefits. These benefits include
salary continuation and related health care and life insurance
for both long and short-term disability plans, workmen's
compensation and health care for surviving spouse and dependent
plan. The Company recognizes a deferred asset which represents
future revenue expected to be realized at the time the
postemployment benefits are included in the Company's rates. The
Company has recorded a liability of $3.7 million and a regulatory
asset of $3.4 million which represents the costs associated with
postemployment benefits at December 31, 1995. The Company
received IPUC Order No. 25880 authorizing the amortization of the
regulatory asset over a 10-year period.
10.ELECTRIC PLANT IN SERVICE AND JOINTLY-OWNED PROJECTS:
The following table sets out the major classifications of the
Company's electric plant in service and accumulated provision for
depreciation for the years 1995, 1994, and 1993.
Electric Plant in Service: 1995 1994 1993
(Thousands of Dollars)
Production $1,350,239 $1,303,572 $1,229,237
Transmission 330,812 308,055 298,201
Distribution 648,549 625,149 582,604
General and other 152,230 147,122 139,681
Total in service 2,481,830 2,383,898 2,249,723
Accumulated provision for
depreciation (830,615) (775,033) (728,979)
In service - Net $1,651,215 $1,608,865 $ 1,520,744
The Company is involved in the ownership and operation of three
jointly-owned generating facilities. The Consolidated Statements
of Income include the Company's proportionate share of direct
operation and maintenance expenses applicable to the projects.
Each facility and extent of Company participation as of December
31, 1995 are as follows:
Company Ownership
Accumulated
Electric Plant Provision For
Name of Plant/Location In Service Depreciation % MW
(Thousands of Dollars)
Jim Bridger Units 1-4/
Rock Springs, WY $379,008 $159,721 33 693
Boardman/
Boardman, OR 60,368 26,087 10 53
Valmy Units 1 & 2/
Winnemucca, NV 299,189 105,612 50 261
The Company's wholly-owned subsidiary, IERCO, is a joint venturer
in Bridger Coal Company, which operates the mine supplying coal
for the Jim Bridger steam generation plant. Coal purchased by the
Company from the joint venture amounted to $44,278,000 in 1995,
$46,097,000 in 1994 and $45,424,000 in 1993.
The Company has contracts to purchase the energy from five PURPA
Qualified Facilities which are 50 percent owned by Ida-West.
Power purchased from these facilities amounted to $8,695,800 in
1995, $7,139,000 in 1994 and $5,975,093 in 1993.
IDAHO POWER COMPANY
SCHEDULE II - CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS
Years Ended December 31, 1995, 1994 and 1993
Column C
Column A Column B Additions Column D Column E
Charged Balance
Balance At Charged (Credited) At
Beginning to to Other Deductions End Of
Classification Of Period Income Accounts (1) Period
(Thousands of Dollars)
1995:
Reserves Deducted From
Applicable Assets:
Reserve for
uncollectible
accounts $1,377 $ 217 $2,927(2) $3,124 $1,397
Other Reserves:
Injuries and damages
reserve $1,500 $1,364 $ - $1,364 $1,500
Miscellaneous
operating reserves $ 940 $ 460 $ (176) $ 81 $1,143
1994:
Reserves Deducted From
Applicable Assets:
Reserve for
uncollectible
accounts $1,377 $1,360 $1,018(2) $2,378 $1,377
Other Reserves:
Injuries and damages
reserve $1,500 $1,804 $ - $1,804 $1,500
Miscellaneous
operating reserves $ 748 $ 429 $ (156) $ 81 $ 940
1993:
Reserves Deducted From
Applicable Assets:
Reserve for
uncollectible
accounts $1,421 $1,174 $1,001(2) $2,219 $1,377
Other Reserves:
Injuries and damages
reserve $1,500 $2,820 $ - $2,820 $1,500
Miscellaneous
operating reserves $ - $ 870 $ 332 $ 454 $ 748
NOTES: (1) Represents deductions from the reserves for purposes for
which the reserves were created.
(2) Represents collections of accounts previously written off.
<TABLE>
Exhibit 12
Idaho Power Company
Consolidated Financial Information
Ratio of Earnings to Fixed Charges
Twelve Months Ended December 31,
(Thousands of Dollars)
<CAPTION>
1990 1991 1992 1993 1994 1995
<S> <C> <C> <C> <C> <C> <C>
Computation of Ratio of Earnings to
Fixed Charges:
Consolidated net income $ 69,241 $ 57,872 $ 59,990 $ 84,464 $ 74,930 $ 86,921
Income taxes:
Income taxes (includes amounts charged
to other income and deductions) 26,418 24,321 24,601 38,057 35,307 49,497
Investment tax credit adjustment (3,184) (3,177) (1,439) (1,583) (1,064) (1,086)
Total income taxes 23,234 21,144 23,162 36,474 34,243 48,412
Income before income taxes 92,475 79,016 82,152 120,938 109,173 135,333
Fixed Charges:
Interest on long-term debt 50,119 54,370 53,408 53,706 51,173 51,146
Amortization of debt discount,
expense and premium - net 309 374 392 507 567 567
Interest on short-term bank loans 1,027 935 647 220 1,157 3,144
Other interest 2,259 3,297 1,011 2,023 1,537 1,598
Interest portion of rentals 902 884 683 1,077 794 925
Total fixed charges 54,616 59,860 56,141 57,533 55,228 57,381
Earnings - as defined $147,091 $138,876 $139,293 $178,471 $164,401 $192,714
Ratio of earnings to fixed charges 2.69X 2.32X 2.48X 3.10X 2.98X 3.36X
</TABLE>
<TABLE>
Exhibit 12(a)
Idaho Power Company
Consolidated Financial Information
Supplemental Ratio of Earnings to Fixed Charges
Twelve Months Ended December 31,
(Thousands of Dollars)
<CAPTION>
1990 1991 1992 1993 1994 1995
<S> <C> <C> <C> <C> <C> <C>
Computation of Ratio of Earnings to
Fixed Charges:
Consolidated net income $ 69,241 $ 57,872 $ 59,990 $ 84,464 $ 74,930 $ 86,921
Income taxes:
Income taxes (includes
amounts charged to other
income and deductions) 26,418 24,321 24,601 38,057 35,307 49,497
Investment tax credit
adjustment (3,184) (3,177) (1,439) (1,583) (1,064) (1,086)
Total income taxes 23,234 21,144 23,162 36,474 34,243 48,412
Income before income taxes 92,475 79,016 83,152 120,938 109,173 135,333
Fixed Charges:
Interest on long-term debt 50,119 54,370 53,408 53,706 51,173 51,146
Amortization of debt discount,
expense and premium - net 309 374 392 507 567 567
Interest on short-term bank
loans 1,027 935 647 220 1,157 3,144
Other interest 2,259 3,297 1,011 2,023 1,537 1,598
Interest portion of rentals 902 884 683 1,077 794 925
Total fixed charges 54,616 59,860 56,141 57,533 55,228 57,381
Suppl increment to fixed
charges* 1,969 1,599 2,487 2,631 2,622 2,611
Total supplemental fixed charges 56,585 61,459 58,628 60,164 57,850 59,992
Supplemental earnings - as defined $149,060 $140,475 $141,780 $181,102 $167,023 $195,325
Supplemental ratio of earnings to fixed
charges 2.63X 2.29X 2.42X 3.01X 2.89X 3.26X
<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>
Exhibit 12(b)
Idaho Power Company
Consolidated Financial Information
Ratio of Earnings to Combined Fixed Charges and Preferred Dividend Requirements
Twelve Months Ended December 31,
(Thousands of Dollars)
<CAPTION>
1990 1991 1992 1993 1994 1995
<S> <C> <C> <C> <C> <C> <C>
Computation of Ratio of Earnings to
Fixed Charges:
Consolidated net income $ 69,241 $ 57,872 $ 59,990 $ 84,464 $ 74,930 $ 86,921
Income taxes:
Income taxes (includes amounts
charged to other income and
deductions) 26,418 24,321 24,601 38,057 35,307 49,497
Investment tax credit adjustment (3,184) (3,177) (1,439) (1,583) (1,064) (1,086)
Total income taxes 23,234 21,144 23,162 36,474 34,243 48,412
Income before income taxes 92,475 79,016 83,152 120,938 109,173 135,333
Fixed Charges:
Interest on long-term debt 50,119 54,370 53,408 53,706 51,173 51,146
Amortization of debt discount,
expense and premium - net 309 374 392 507 567 567
Interest on short-term bank
loans 1,027 935 647 220 1,157 3,144
Other interest 2,259 3,297 1,011 2,023 1,537 1,598
Interest portion of rentals 902 884 683 1,077 794 925
Total fixed charges 54,616 59,860 56,141 57,533 55,228 57,381
Preferred dividends
requirements 5,685 6,663 7,611 8,547 10,682 12,392
Total fixed charges and
preferred dividends 60,301 66,523 63,752 66,080 65,910 69,773
Earnings - as defined $147,091 $138,876 $139,293 $178,471 $164,401 $192,714
Ratio of earnings to fixed charges and
preferred dividends 2.44X 2.09X 2.18X 2.70X 2.49X 2.76X
</TABLE>
<TABLE>
Exhibit 12(c)
Idaho Power Company
Consolidated Financial Information
Supplemental Ratio of Earnings to Combined Fixed Charges and Preferred Dividend Requirements
Twelve Months Ended December 31,
(Thousands of Dollars)
<CAPTION>
1990 1991 1992 1993 1994 1995
<S> <C> <C> <C> <C> <C> <C>
Computation of Ratio of Earnings to
Fixed Charges:
Consolidated net income $ 69,241 $ 57,872 $ 59,990 $ 84,464 $ 74,930 $ 86,921
Income taxes:
Income taxes (includes amounts
charged to other income and
deductions) 26,418 24,321 24,601 38,057 35,307 49,497
Investment tax credit adjustment (3,184) (3,177) (1,439) (1,583) (1,064) (1,086)
Total income taxes 23,234 21,144 23,162 36,474 34,243 48,412
Income before income taxes 92,475 79,016 83,152 120,938 109,173 135,333
Fixed Charges:
Interest on long-term debt 50,119 54,370 53,408 53,706 51,173 51,146
Amortization of debt discount,
expense and premium - net 309 374 392 507 567 567
Interest on short-term bank
loans 1,027 935 647 220 1,157 3,144
Other interest 2,259 3,297 1,011 2,023 1,537 1,598
Interest portion of rentals 902 884 683 1,077 794 925
Total fixed charges 54,616 59,860 56,141 57,533 55,228 57,381
Suppl increment to fixed charges* 1,969 1,599 2,487 2,631 2,622 2,611
Supplemental fixed charges 56,585 61,459 58,628 60,164 57,850 59,992
Preferred dividend requirements 5,685 6,663 7,611 8,547 10,682 12,392
Total supplemental fixed charges
and preferred dividends 62,270 68,122 66,239 68,711 68,532 72,384
Supplemental earnings - as
defined $149,060 $140,475 $141,780 $181,102 $167,023 $195,325
Supplemental ratio of earnings
to fixed charges and preferred
dividends 2.39X 2.06X 2.14X 2.64X 2.44X 2.70X
<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 23
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration
Statement Nos. 33-65720, 33-51215 and 333-00139 of Idaho Power
Company on Form S-3 and Registration Statement No. 33-56071 of
Idaho Power Company on Form S-8 of our report dated January 31,
1996 appearing in this Form 8-K of Idaho Power Company.
DELOITTE & TOUCHE LLP
Portland, Oregon
February 23, 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>
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
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