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, 1997
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, 1997 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, 1997 and 1996 3, 4
Consolidated Balance Sheets - March 31, 1997
and December 31, 1996 5, 6
Consolidated Statements of Cash Flows -
Three Months and Twelve Months Ended March 31, 1997
and 1996 7, 8
Consolidated Statements of Capitalization -
March 31, 1997 and December 31, 1996 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 - 21
Part II. Other Information:
Item 1. Legal Proceedings 22 - 23
Item 6. Exhibits and Reports on Form 8-K 24 - 28
Signatures 29
This Form 10-Q contains "forward-looking statements" intended
to qualify for the safe harbor from liability established by
the Private Securities Litigation Reform Act of 1995. Forward-
looking statements should be read with the cautionary
statements and important factors included in this form 10-Q at
Part I, Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations - Forward-
Looking Information. Forward-looking statements are all
statements other than statements of historical fact, including
without limitation those that are identified by the use of the
words "anticipates," "estimates," "expects," "intends,"
"plans," "predicts," and similar expressions.
PART I - FINANCIAL INFORMATION
IDAHO POWER COMPANY
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
Item 1. Financial Statements Three Months Ended
March 31, Increase
1997 1996 (Decrease)
(Thousands of dollars)
REVENUES $155,447 $146,629 $ 8,818
EXPENSES
Operation:
Purchased power 19,559 8,215 11,344
Fuel expense 14,485 8,532 5,953
Power cost adjustment (1,244) 6,852 (8,096)
Other 29,918 33,210 (3,292)
Maintenance 10,303 8,806 1,497
Depreciation 17,522 17,395 127
Taxes other than income taxes 5,831 5,130 701
Total expenses 96,374 88,140 8,234
INCOME FROM OPERATIONS 59,073 58,489 584
OTHER INCOME:
Allowance for equity funds used during
construction - (2) 2
Other - Net 3,389 3,342 47
Total other income 3,389 3,340 49
INTEREST CHARGES:
Interest on long-term debt 13,805 12,963 842
Other interest 2,048 1,242 806
Total interest charges 15,853 14,205 1,648
Allowance for borrowed funds used
during construction (132) (52) (80)
Net interest charges 15,721 14,153 1,568
INCOME BEFORE INCOME TAXES 46,741 47,676 (935)
INCOME TAXES 16,361 17,466 (1,105)
NET INCOME 30,380 30,210 170
Dividends on preferred stock 1,394 1,952 (558)
EARNINGS ON COMMON STOCK $28,986 $28,258 $ 728
AVERAGE COMMON SHARES
OUTSTANDING (000) 37,612 37,612 -
Earnings per share of common stock $ 0.77 $ 0.75 $ 0.02
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, 1997 AND 1996
Twelve Months Ended
March 31,
Increase
1997 1996 (Decrease)
(Thousands of Dollars)
REVENUES $587,263 $560,915 $26,348
EXPENSES:
Operation:
Purchased power 80,383 56,084 24,299
Fuel expense 69,286 47,731 21,555
Power cost adjustment (14,954) 15,849 (30,803)
Other 129,375 127,502 1,873
Maintenance 44,228 35,701 8,527
Depreciation 69,832 68,136 1,696
Taxes other than income taxes 21,359 21,984 (625)
Total expenses 399,509 372,987 26,522
INCOME FROM OPERATIONS 187,754 187,928 (174)
OTHER INCOME:
Allowance for equity funds used during
construction 48 (16) 64
Other - Net 12,535 15,770 (3,235)
Total other income 12,583 15,754 (3,171)
INTEREST CHARGES:
Interest on long-term debt 53,008 51,320 1,688
Other interest 5,989 5,278 711
Total interest charges 58,997 56,598 2,399
Allowance for borrowed funds used
during construction (434) (964) 530
Net interest charges 58,563 55,634 2,929
INCOME BEFORE INCOME TAXES 141,774 148,048 (6,274)
INCOME TAXES 50,987 51,644 (657)
NET INCOME 90,787 96,404 (5,617)
Dividends on preferred stock 6,906 7,916 (1,010)
EARNINGS ON COMMON STOCK $83,881 $88,488 $(4,607)
AVERAGE COMMON SHARES
OUTSTANDING (000) 37,612 37,612 -
Earnings per share of common stock $ 2.23 $ 2.35 $(0.12)
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,
1997 1996
(Thousands of Dollars)
ELECTRIC PLANT:
In service (at original cost) $2,553,035 $2,537,565
Accumulated provision for depreciation (900,869) (886,885)
In service - Net 1,652,166 1,650,680
Construction work in progress 47,435 42,178
Held for future use 1,773 1,773
Electric plant - Net 1,701,374 1,694,631
INVESTMENTS AND OTHER PROPERTY 37,101 36,502
CURRENT ASSETS:
Cash and cash equivalents 8,827 7,928
Receivables:
Customer 41,818 34,962
Allowance for uncollectible accounts (1,397) (1,394)
Notes 5,176 5,104
Employee notes receivable 4,360 4,486
Other 8,010 8,489
Accrued unbilled revenues 20,694 27,709
Materials and supplies (at average cost) 27,813 24,639
Fuel stock (at average cost) 10,133 11,631
Prepayments 15,548 16,165
Regulatory assets associated with income taxes 4,010 4,397
Total current assets 144,992 144,116
DEFERRED DEBITS:
American Falls and Milner water rights 32,260 32,260
Company-owned life insurance 55,593 57,291
Regulatory assets associated with income taxes 200,104 196,696
Regulatory assets - other 85,837 89,507
Other 44,024 44,334
Total deferred debits 417,818 420,088
TOTAL $2,301,285 $2,295,337
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
CONSOLIDATED BALANCE SHEETS
CAPITALIZATION & LIABILITIES
March 31, December 31,
1997 1996
(Thousands of Dollars)
CAPITALIZATION:
Common stock equity - $2.50 par value (shares
authorized 50,000,000; shares outstanding -
37,612,351) $ 688,025 $ 694,574
Preferred stock 106,924 106,975
Long-term debt 738,553 738,550
Total capitalization 1,533,502 1,540,099
CURRENT LIABILITIES:
Long-term debt due within one year 71 71
Notes payable 41,593 54,016
Accounts payable 25,330 36,370
Taxes accrued 35,954 17,304
Interest accrued 15,669 15,886
Accumulated deferred income taxes 4,010 4,397
Other 33,175 12,439
Total current liabilities 155,802 140,483
DEFERRED CREDITS:
Regulatory liabilities associated with
deferred investment tax credits 70,885 71,283
Deferred income taxes 417,749 411,890
Regulatory liabilities associated with income
taxes 34,337 35,028
Regulatory liabilities - other 589 616
Other 88,421 95,938
Total deferred credits 611,981 614,755
COMMITMENTS AND CONTINGENT LIABILITIES (Note 2)
TOTAL $2,301,285 $2,295,337
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, 1997 AND 1996
Three Months Ended
March 31,
1997 1996
OPERATING ACTIVITIES: (Thousands of Dollars)
Cash received from operations:
Retail revenues $119,809 $123,351
Wholesale revenues 29,035 17,626
Other revenues 6,173 5,729
Fuel paid (17,157) (14,795)
Purchased power paid (11,829) (13,230)
Other operation & maintenance paid (37,088) (41,323)
Interest paid (includes long and short-term debt
only) (14,605) (13,913)
Income taxes paid (309) (1,771)
Taxes other than income taxes paid (3,488) (2,012)
Other operating cash receipts and payments-Net (295) (2,637)
Net cash provided by operating activities 70,246 57,025
FINANCING ACTIVITIES:
PC bond fund requisitions/Other long-term debt (164) 10,000
Short-term borrowings - Net (19,422) (18,000)
Long-term debt retirement (17) (17)
Preferred stock retirement (55) (20)
Dividends on preferred stock (1,172) (2,015)
Dividends on common stock (17,971) (17,481)
Other sources/(uses) 593 (1,257)
Net cash - financing activities (38,208) (28,790)
INVESTING ACTIVITIES:
Additions to utility plant (25,828) (16,535)
Conservation (299) (107)
Increase in investments (2,500) (14,525)
Other (2,512) 155
Net cash - investing activities (31,139) (31,012)
Change in cash and cash equivalents 899 (2,777)
Cash and cash equivalents beginning of period 7,928 8,468
Cash and cash equivalents end of period $8,827 $5,691
RECONCILIATION OF NET INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
Net income $30,380 $30,210
Adjustments to reconcile net income to net cash:
Depreciation 17,522 17,395
Deferred income taxes 746 (1,559)
Investment tax credit-Net (398) (355)
Allowance for funds used during construction (132) (50)
Postretirement benefits funding (excl pensions) 336 (696)
Changes in operating assets and liabilities:
Accounts receivable (430) 77
Fuel inventory (2,672) (6,263)
Accounts payable 7,730 (5,015)
Taxes payable 18,047 20,734
Interest payable 1,253 288
Other - Net (2,136) 2,259
Net cash provided by operating activities $70,246 $57,025
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, 1997 AND 1996
Twelve Months Ended
March 31,
1997 1996
OPERATING ACTIVITIES: (Thousands of Dollars)
Cash received from operations:
Retail revenues $486,962 $473,214
Wholesale revenues 77,961 61,195
Other revenues 24,913 23,027
Fuel paid (62,160) (55,877)
Purchased power paid (68,902) (53,790)
Other operation & maintenance paid (172,820) (156,437)
Interest paid (includes long and short-term debt
only) (53,965) (54,048)
Income taxes paid (43,588) (39,174)
Taxes other than income taxes paid (24,931) (22,833)
Other operating cash receipts and payments-Net 24,166 5,000
Net cash provided by operating activities 187,636 180,277
FINANCING ACTIVITIES:
First mortgage bonds issued 57,000 -
PC bond fund requisitions/Other long-term debt 114,670 10,000
Short-term borrowings - Net (422) (12,500)
Long-term debt retirement (136,369) (519)
Preferred stock retirement (26,565) (133)
Dividends on preferred stock (7,006) (7,813)
Dividends on common stock (70,413) (69,950)
Other sources/(uses) (2,295) (1,225)
Net cash - financing activities (71,400) (82,140)
INVESTING ACTIVITIES:
Additions to utility plant (102,939) (83,254)
Conservation (4,031) (4,455)
Increase in investments (6,544) (14,525)
Other 414 2,510
Net cash - investing activities (113,100) (99,724)
Change in cash and cash equivalents 3,136 (1,587)
Cash and cash equivalents beginning of period 5,691 7,278
Cash and cash equivalents end of period $8,827 $5,691
RECONCILIATION OF NET INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
Net income $90,787 $96,404
Adjustments to reconcile net income to net cash:
Depreciation 69,832 68,136
Deferred income taxes 9,506 6,218
Investment tax credit-Net 733 (1,374)
Allowance for funds used during construction (482) (948)
Postretirement benefits funding (excl pensions) 2,373 (2,516)
Changes in operating assets and liabilities:
Accounts receivable 2,572 (3,479)
Fuel inventory 7,127 (8,147)
Accounts payable 11,481 2,294
Taxes payable (6,383) 6,821
Interest payable 4,835 2,499
Other - Net (4,745) 14,369
Net cash provided by operating activities $187,636 $180,277
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
CONSOLIDATED STATEMENTS OF CAPITALIZATION
March 31, December 31,
1997 1996
(Thousands of Dollars)
COMMON STOCK EQUITY:
Common stock $94,031 $94,031
Premium on capital stock 361,706 362,297
Capital stock expense (3,841) (3,842)
Retained earnings 236,129 242,088
Total common stock equity 688,025 44.8% 694,574 45.1%
PREFERRED STOCK, cumulative, ($100 par or
stated value):
4% preferred stock (authorized 215,000;shares
outstanding:1997-169,239, 1996-169,753) 16,924 16,975
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:
7.07% 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
Total preferred stock 106,924 7.0 106,975 6.9
LONG-TERM DEBT:
First mortgage bonds:
5.33 % Series due 1998 30,000 30,000
8.65 % Series due 2000 80,000 80,000
6.93 % Series due 2001 30,000 30,000
6.85 % Series due 2002 27,000 27,000
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 527,000 527,000
Amount due within one year - -
Net first mortgage bonds 527,000 527,000
Pollution control revenue bonds:
7 1/4% Series due 2008 4,360 4,360
8.30 % Series 1984 due 2014 49,800 49,800
6.05 % Series 1996A due 2026 68,100 68,100
Variable Rate Series 1996B due 2026 24,200 24,200
Variable Rate Series 1996C due 2026 24,000 24,000
Total pollution control revenue bonds 170,460 170,460
REA Notes 1,614 1,632
Amount due within one year (71) (71)
Net REA Notes 1,543 1,561
Subsidiary debt 9,000 9,000
American Falls bond guarantee 20,560 20,560
Milner Dam note guarantee 11,700 11,700
Unamortized premium/discount - Net (1,710) (1,731)
Total long-term debt 738,553 48.2 738,550 48.0
TOTAL CAPITALIZATION $1,533,502 100.0% $1,540,099 100.0%
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
consolidated financial statements contain all adjustments
necessary to present fairly the consolidated financial
position as of March 31, 1997 and the consolidated results
of operation for the three months, and twelve months ended
March 31, 1997 and 1996 and the consolidated cash flows for
the three months and twelve months ended March 31, 1997 and
1996. These 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,
1996. The results of operation for the interim periods are
not necessarily indicative of the results to be expected
for the full year. Investments in business entities in
which the Company and its subsidiaries do not have control,
but have the ability to exercise significant influence over
operating and financial policies, are accounted for using
the equity method.
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);
Stellar Dynamics, Inc. (Stellar); and Idaho Power Resources
Corporation (IPRC). 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. 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 $1.4 million at
March 31, 1997. 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.
3. REGULATORY ISSUES:
The Company has in place, in its Idaho jurisdiction, a
Power Cost Adjustment (PCA) mechanism which provides for
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. At March 31, 1997, the Company had recorded $11.6
million of power supply costs above those projected in the
1996 forecast in the deferred account. The current
deferred balance is adjusted monthly as actual conditions
are compared to the forecasted net power supply costs.
The Company filed its 1997 PCA application on April 15,
1997, requesting a change in the Idaho jurisdiction PCA
rate. The combined effect of this year's PCA change with
the revenue sharing mechanism described below will decrease
current rates by $2.6 million or an average of 0.63
percent. The proposed rates for Idaho retail customers are
$20.2 million below the base rates established in past
regulatory proceedings.
Under Order No. 26216, when the Company's actual earnings
in the Idaho jurisdiction in a given year exceed an 11.75
percent return on year-end common equity, the Company will
refund 50 percent of the excess when it makes its next PCA
adjustment. In 1996, the Company set aside approximately
$4.9 million of revenue for the benefit of its Idaho
customers. The Company has filed to reduce customers rates
by $3.5 million for the period May 16, 1997 through May 15,
1998 and that the carrying charge (interest) applied to the
Idaho jurisdictional demand side conservation expenditures
for 1996 in the amount of $1.4 million be retained from
sharing and applied against the current regulatory asset
balance.
4. 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. In
1996, the Company issued $30,000,000 and $27,000,000
principal amount of Secured Medium Term Notes, due 2001 and
2002, respectively. These transactions have reduced the
remaining balance of the shelf registration to $143,000,000
at March 31, 1997.
5. INCOME TAXES:
The effective tax rate for the first three months decreased
from 36.6% in 1996 to 35.0% in 1997. A reconciliation
between the statutory federal income tax rate and the
effective rate for the three months ended March 31, 1997
and 1996 is as follows:
1997 1996
Amount Rate Amount Rate
Computed income taxes based on
statutory federal income tax rate $16,359 35.0 % $16,687 35.0 %
Changes in taxes resulting from:
Current state income taxes. 1,823 3.9 2,239 4.7
Net depreciation 1,281 2.7 1,099 2.3
Investment tax credits (719) (1.5) (703) (1.5)
restored
Repair allowance (782) (1.7) (880) (1.8)
Low income housing credit (1,014) (2.2) (345) (0.7)
Other (587) (1.2) (631) (1.4)
$16,361 35.0 % $17,466 36.6 %
6. NEW ACCOUNTING PRONOUNCEMENT:
In February 1997, the Financial Accounting Standards Board
issued Statement of Financial Accounting Standards No. 128,
EARNINGS PER SHARE.
This statement is effective for financial statements for
both interim and annual periods ending after December 15,
1997. The objective of the statement is to simplify the
computations of earnings per share. The Company does not
expect the adoption of this statement to have a significant
effect on its earnings per share.
INDEPENDENT ACCOUNTANTS' REPORT
Idaho Power Company
Boise, Idaho
We have reviewed the accompanying consolidated balance sheet
and statement of capitalization of Idaho Power Company and
subsidiaries as of March 31, 1997, and the related
consolidated statements of income for the three- and twelve-
month periods ended March 31, 1997 and 1996 and consolidated
statements of cash flows for the three- and twelve-month
periods ended March 31, 1997 and 1996. 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 conducted 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 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, 1996, 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, 1997, we expressed an unqualified
opinion on those consolidated financial statements. In our
opinion, the information set forth in the accompanying
consolidated balance sheet and statement of capitalization as
of December 31, 1996 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, 1997
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 six wholly-owned subsidiaries: Idaho Energy Resources
Company (IERCo); Ida-West Energy Company (Ida-West); IDACORP, Inc.;
Idaho Utility Products Company (IUPCo); Idaho Power Resources
Corporation (IPRC); and Stellar Dynamics, Inc. (Stellar). This
discussion uses the terms Idaho Power and the Company interchangeably
to refer to Idaho Power Company and its subsidiaries.
Forward-Looking Information
Certain matters discussed in this report are "forward-looking
statements" intended to qualify for the safe harbor from liability
established by the Private Securities Litigation Reform Act of 1995.
Such statements address future plans, objectives, expectations, and
events or conditions concerning various matters such as capital
expenditures, earnings, litigation, rate and other regulatory matters,
liquidity and capital resources, and accounting matters. Actual
results in each case could differ materially from those currently
anticipated in such statements, by reason of factors including without
limitations, electric utility restructuring, including ongoing state
and federal activities; future economic conditions; legislation;
regulation; competition; and other circumstances affecting anticipated
rates, revenues and costs. Any forward-looking statement speaks only
as of the date on which such statement is made, and the Company
undertakes no obligation to update any forward-looking statement.
Earnings Per Share and Book Value
Earnings per share of common stock were $0.77 for the quarter, an
increase of $0.02 (2.7 percent) from the same quarter last year. The
twelve months ended March 31, 1997 yielded earnings of $2.23 per share,
a decrease of $0.12 (5.1 percent) from the twelve months ended March
31, 1996. The twelve-month earnings represent a 12.2 percent earned
return on March 31, 1997 common equity, compared to the 13.1 percent
earned through March 31 last year. At March 31, 1997, the book value
per share of common stock was $18.29, compared to $17.97 for the same
period a year ago.
RESULTS OF OPERATIONS
Precipitation and Streamflows
Idaho Power monitors the effect of precipitation and streamflow
conditions on Brownlee Reservoir, the water source for the three Hells
Canyon hydroelectric projects. In a typical year, these three projects
combine to produce about half of the Company's generated electricity.
Precipitation in the Company's service territory was below normal
levels for the first three months of 1997. At April 1, 1997, reservoir
storage above Brownlee was 54 percent of capacity, compared to 71
percent last year and an average storage of 101 percent for the same
period.
The U.S. Army Corps of Engineers coordinates flood control activities
of the Company's water resources based upon streamflow forecasts. This
year, due to high mountain snowpacks, the Company is required to draft
water from Brownlee Reservoir to make space for holding anticipated
flood flows. The reservoir will be refilled during the peak of the
runoff in early summer.
Inflows into Brownlee result from a combination of precipitation,
storage, and ground water conditions. At April 1, 1997, the Company
estimated that 9.2 million acre-feet (MAF) of water will flow into
Brownlee Reservoir during the April-July runoff period, compared to 8.3
MAF for 1996. This figure represents approximately 191 percent of the
69-year median of 4.81 MAF.
Energy Requirements
For the first three months of 1997, the Company met its total system
energy requirements from the following sources: hydro generation (68
percent); thermal generation (22 percent); and purchased power and
other interchanges (10 percent). For the same period of 1996, these
figures were 67 percent hydro; 22 percent thermal; and 11 percent
purchased power and other interchanges.
The Company estimates that 56 percent of its 1997 energy requirements
will come from hydro generation, 27 percent from thermal generation,
and 17 percent from purchased power and other interchanges.
Economy
Since 1987, Idaho's economy has consistently posted annual gains in
employment. On many occasions in the past ten years, Idaho earned a
ranking among the top five fastest growing states in the nation. For
this period, nonagricultural employment in the state grew at an annual
average compound rate of approximately 4.2 percent per year. Idaho's
employment growth continued to show strength in the first two months of
1997. Total non-agricultural employment in the state was up 3.5% when
compared to the levels experienced in the first two months of 1996.
The leading sectors were construction employment with an 8.3% gain,
wholesale and retail trade at 4.2% gain, services with a 3.6% gain, and
manufacturing which posted a 2.0% increase in employment. It is likely
that Idaho's economy will continue to post employment gains which are
above the national average throughout 1997.
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. For the period May 1997 through May 1998, the Company filed to
have tariffs approved from the IPUC, reducing Idaho jurisdictional
customers' PCA rates by $2.6 million (0.63 percent), including the true-
up for the PCA period May 1996 through May 1997 and a $3.5 million
refund per IPUC Order No. 26216. The proposed rates for Idaho retail
customers are $20.2 million below the base rates established in past
regulatory proceedings (see Note 3). The reduction reflects
anticipated below normal power supply costs in the coming year due to
above-average hydroelectric generating conditions. The 1997 PCA
forecast reflects power supply costs below those established for PCA
expenses in the Company's last general rate proceeding. At March 31,
1997, the Company had recorded as deferred assets and reduction in
operating expenses $11.6 million of power supply costs above those
projected in the 1996 forecast.
Revenues
General business revenues were down $6.2 million (5.2 percent) for the
quarter but increased $5.5 million (1.2 percent) for the twelve months
ended March 31, 1997. The Company's revenues from residential and
commercial customers decreased $3.8 million and $0.9 million due to
warmer temperatures in the first quarter of 1997 and lower rates due to
the 1996/1997 PCA rate decrease. Industrial revenues were also down by
$1.6 million.
Off-system Sales
Off-system sales are composed of firm sales (long-term contracts) and
opportunity sales made on a when-available basis. The volume and price
of these latter sales depend on the Company's firm energy demand,
hydroelectric generating conditions in its service territory, and
market conditions throughout the West. Revenues from off-system sales
increased $14.3 million (70.0 percent) for the quarter and $23.6
million (38.7 percent) for the twelve months ended. The increase in
off-system sales reflects improved hydroelectric generating conditions
in 1997 and increased trading of non-system sales when sales margins
are favorable and economical.
Total operating revenues increased $8.8 million (6.0 percent) for the
first quarter and $26.3 million (4.7 percent) for the twelve months
ended.
Expenses
Total operation and maintenance expenses were up $7.4 million (11.3
percent) for the quarter, and $25.5 million (9.0 percent) for the
twelve months ended March 31, 1997.
Purchased power expenses were up for the quarter by $11.3 million
(138.1 percent), and $24.3 million (43.3 percent) for the twelve months
ended. The increase also reflects increased purchases from
cogeneration and small power production (CSPP), which also experienced
strong hydroelectric generating conditions. The increases reflect the
Company's increased participation in the buying and selling of non-
system power in the wholesale power market.
Fuel expenses were up for the quarter $6.0 million (69.8 percent), and
$21.6 million (45.2 percent) for the twelve months ended. The increase
for the quarter is mainly due to the operation of the Valmy and Jim
Bridger coal-fired power plants last winter during periods when market
prices were favorable.
The PCA component of expenses was down for the quarter, and twelve-
month periods by $8.1 million, and $30.8 million respectively. The PCA
mechanism reduces expenses when actual power supply costs are above
forecast and increases them when power supply costs are below forecast.
Other operation expenses decreased for the quarter $3.3 million (9.9
percent) and increased $1.9 million (1.5 percent) for the twelve months
ended. The decreased expenses for the quarter are due in part to the
reduction in payroll costs associated with the customer records and
collections expense.
Other maintenance expenses increased for the quarter $1.5 million (17.0
percent) and $8.5 million (23.9 percent) for the twelve months ended.
During the first quarter, maintenance on the Company's steam power
generation facilities was increased, while the Company maximized its
use of hydroelectric facilities. For the twelve month period there was
increased maintenance on both transmission and distribution facilities
due to facilities damaged or destroyed by natural causes.
Other income decreased by $3.2 million or 20.5 percent for the twelve
months ended primarily because profits from Bridger Coal Company were
down due to decreased sales of coal.
Total interest costs increased for the quarter, and twelve months ended
by $1.6 million, and $2.4 million, respectively. These increases are
partly the result of increased borrowings by the Company's subsidiaries
and the issuance of $30.0 million and $27.0 million Medium Term Notes
by the Company in 1996.
Ida-West Energy Company
This wholly-owned subsidiary of the Company holds investments in
thirteen operating hydroelectric plants with a total generating
capacity of 72 megawatts (MW). Five plants are located in Idaho. The
other eight plants are located in California. Ida-West owns, through
various entities, a 50 percent equity interest in ten of these
projects. It holds 100 percent of the senior debt relating to three of
these projects and 100 percent of the subordinated debt relating to
another one of these projects. One of Ida-West's wholly-owned
subsidiaries also operates and maintains ten of these plants.
In addition, Ida-West has an interest in the Hermiston Power Project, a
460-megawatt gas-fired cogeneration project to be located near
Hermiston, Oregon. Ida-West has been responsible for managing all
permitting and development activities relating to the project since its
inception in 1993 and has obtained all permits necessary for
construction and operation of the project. Ida-West and its partner
are exploring various alternatives for marketing the project's output.
To date, the Company's investment in Ida-West is $22.0 million. Ida-
West continues an active search for new projects.
Idaho Power Resources Corporation
IPRC is a wholly-owned subsidiary incorporated in March 1996. IPRC's
goals are to establish, acquire, and expand business operations in
sustainable infrastructure technology and services. IPRC is charged
with marketing the Company's expertise in renewable energy
technologies, communication systems, and energy efficiency. The
Company's total investment is approximately $4.0 million for
development and acquisition activities in IPRC.
Stellar Dynamics, Inc.
Stellar Dynamics' 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. As Stellar's capital requirements
increase, the Company has approved additional equity investments up to
a total of $3.0 million. To date, the Company's investment in Stellar
is $1.2 million.
IDACORP, Inc.
Through this wholly-owned subsidiary, the Company is participating in
six affordable housing programs. These investments provide a return to
IDACORP by reducing the Company's federal income taxes and by assuring
a return on investment through tax credits and tax depreciation
benefits. To date the Company's investment in IDACORP is $9.2 million.
LIQUIDITY AND CAPITAL RESOURCES
Cash Flow
For the three months ended March 31, 1997, the Company generated $70.2
million in net cash from operations. After deducting for both common
and preferred dividends, net cash generation from operations provided
approximately $51.1 million for the Company's construction program and
other capital requirements. This is a 36.2 percent increase over the
same period in 1996.
Cash Expenditures
Idaho Power estimates that its cash construction program for 1997 will
require approximately $89.0 million. This estimate is subject to
revision in light of changing economic, regulatory, environmental, and
conservation factors. During the first three months of 1997, the
Company expended approximately $25.8 million for construction.
Idaho Power's primary financial commitments and obligations are related
to contracts and purchase orders associated with its ongoing
construction program. To the extent required, the Company expects to
finance these commitments and obligations by using both internally
generated funds and externally financed capital. The Company has
regulatory authority to incur up to $200,000,000 of short-term
indebtedness. On December 19, 1996, the company replaced its committed
lines of credit arrangements with a $120,000,000 multi-year revolving
credit facility, which will expire on December 19, 2001. Under this
facility the Company will pay a facility fee on the commitment,
quarterly in arrears, based on the Company's First Mortgage Bond
rating. Commercial paper may be issued in an amount not to exceed 25
percent of revenues for the latest twelve-month period subject to the
$200,000,000 maximum described above and is supported by bank lines of
credit of an equal amount.. The Company may use this revolving credit
facility to finance a portion of its construction program on an interim
basis. At March 31, 1997 the Company's short-term borrowings totaled
$41.6 million.
Financing Program
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. In 1996, the Company issued $30,000,000
and $27,000,000 principal amount of Secured Medium Term Notes, due 2001
and 2002, respectively. These transactions have reduced the remaining
balance of the shelf registration to $143,000,000 at March 31, 1997.
Idaho Power's objective is to maintain capitalization ratios of
approximately 45 percent common equity, 5 to 10 percent preferred
stock, and the balance in long-term debt. For the twelve-month period
ended March 31, 1997, the Company's consolidated pre-tax interest
coverage was 3.40 times.
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.
In mid-August 1994, the federal government changed its designation of
the Snake River Fall Chinook Salmon from Threatened to Endangered. The
Company does not anticipate that the new designation will have any
major effects on its operations. In September 1991, the Company
modified operations at its three-dam Hells Canyon Hydroelectric Complex
to protect the Fall Chinook downstream during spawning and juvenile
emergence. From its start, the Company's Fall Chinook program has
exceeded the protection requirements for threatened species, affording
the fish the same high level of protection due an endangered species.
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 change 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. These interim operations are not expected
to change the Company's current operations for salmon.
The Company has negotiated a five-year contract with BPA to replace
lost energy and capacity resulting from recovery plans that impact the
Company's power supply cost.
Nez Perce Lawsuit
In 1996, Idaho Power's Board of Directors and the Nez Perce Tribe
approved an Agreement between the Company and the Tribe which would
resolve a civil lawsuit filed against Idaho Power in December of 1991,
in the United States District Court for the District of Idaho,
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 Hydroelectric Complex and the
project's alleged impact both on fish and the Tribe's treaty-reserved
fishing rights. The Agreement required the approval of the United
States government (through the Bureau of Indian Affairs (BIA)) acting
in its capacity as trustee for the Tribe. Under the terms of the
Agreement, Idaho Power would pay the Nez Perce Tribe $11.5 million in
the following manner:
- $5 million at which time the Nez Perce would move for the
dismissal of, with prejudice, their legal action against the
Company
- $1,625,000 each year for the next four years
All payments under the Agreement will be made in 1996 dollars, which
allows for adjusted future inflation within a minimum range of 3
percent and a maximum of 7 percent.
On July 12, 1996, the IPUC issued Order No. 26513, and on August 5,
1996, the OPUC issued Order No. 96-207 approving capitalization of
their respective jurisdictional share of the $11.5 million. The
Company has recorded the $11.5 million as a regulatory asset due from
ratepayers and a liability to the Tribe. The Tribe requested BIA
approval. However, on November 21, 1996, the Portland Area Director of
the BIA issued a decision stating that the Agreement did not have to be
approved by the BIA and declined to review the Agreement. On December
19, 1996, Idaho Power Company filed an administrative appeal of the
BIA's decision. As a result of the BIA decision, the Tribe and the
Company explored alternatives to BIA approval that would help assure
the ultimate enforceability of the Agreement. The parties agreed to
request that the Federal District Court for the District of Idaho
approve the Agreement. The Tribe and the Company, by motion,
stipulated that the Ninth Circuit Court of Appeals remand the case to
the Federal District Court for the District of Idaho, which motion was
granted by the Ninth Circuit on February 6, 1997. On March 21, 1997,
the Federal District Court for the District of Idaho entered a
judgement which incorporated the terms of the Agreement. On March 28,
1997, Idaho Power paid the Tribe $5 million plus agreed upon interest
which reduced regulatory assets.
In connection with settling the litigation, Idaho Power and the Tribe
also reached a provisional settlement regarding the license renewal 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, the majority of which the Tribe has agreed to dedicate to
implementable fisheries restoration efforts, 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.
Regulatory Settlement
On August 3, 1995, Idaho Power filed a proposal with the IPUC to
support the Company's organizational redesign. In response to the
Company's proposal, the IPUC approved a Settlement that authorizes the
Company to defer and amortize costs related to reorganization in return
for a general rate freeze through the end of 1999. In addition, the
Settlement allows for the accelerated amortization of regulatory
liabilities associated with accumulated deferred investment tax credits
(ADITCs) to provide a minimum 11.50 percent return on actual year-end
common equity for the Idaho jurisdiction. The new rate 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.
The terms and conditions of the Settlement will remain in effect
through 1999. Under the Settlement, when the Company's actual earnings
in a given year exceed an 11.75 percent return on year-end common
equity, the Company will refund 50 percent of the excess. In 1996, the
Company set aside approximately $4.9 million of revenue for the benefit
of its Idaho customers. The Company has filed to reduce customers
rates by $3.5 million for the period May 16, 1997 through May 15, 1998
and that the carrying charge (interest) applied to the Idaho
jurisdictional demand side conservation expenditures for 1996 in the
amount of $1.4 million be retained from sharing and applied against the
current regulatory asset balance.
Other important points in the Settlement are: (1) the Company may
accelerate a maximum of $30 million of regulatory liabilities
associated with ADITCs over the five-year period; (2) the Company will
not be allowed to increase its Idaho general rates prior to January 1,
2000, except under conditions as defined in the Settlement Agreement;
and (3) Idaho Power agrees that its quality of service will not decline
as a result of corporate reorganization.
The Company has received approval from the Idaho State Tax Commission
and the Internal Revenue Service on the accounting treatment for the
tax credits.
Marketing Business Unit
To accommodate its customers and allow it to compete in the rapidly
evolving competitive market, the Company formed a Marketing Business
Unit effective January 1997. This new business unit will be
responsible for all purchases and sales of electric energy, market
research, and planning and implementation of marketing strategies.
The Board of Directors gave approval in the March 1997 meeting for the
Company to begin building gas marketing capability. It is the intent
of the Company to be a competitive energy provider, including both
electricity and gas. To successfully realize this vision, the
Marketing Business Unit has been charged with developing an
organization with the capability to service our customers' total energy
needs. In response to this objective, the Company has begun setting up
gas marketing capability in its Boise Office to service the Northwest
gas markets and is setting up a gas trading office in Houston, Texas to
service the southern and eastern United States gas markets. Gas
trading at these locations will begin in the second quarter, 1997.
The ability to trade in both electricity and gas physical and commodity
markets gives the Marketing Business Unit the flexibility needed to
service our customers' total energy needs profitably, while managing
the market risk inherent in the energy marketing business.
Competition and Strategic Planning
Competition is increasing in the electric utility industry, due to a
variety of developments. In response, Idaho Power continues to proceed
with a strategic planning process. The goal of this process is to
anticipate and fully integrate into Company operations any legislative,
regulatory, environmental, competitive, or technological changes. With
its low energy production costs, Idaho Power is well-positioned to
enter a more competitive environment and is taking action to preserve
its low-cost competitive advantage.
The Company believes the first meaningful step to a competitive retail
energy market is the functional unbundling of costs into the various
delivery and energy components. The Company believes that the
unbundling of costs will create a real means for our customers to
compare energy prices and that cost unbundling will facilitate the
establishment of more accurate price signals for service components.
Legislation has been passed in Idaho requiring the IPUC to initiate an
unbundling investigation in July 1997. The Company is prepared to
bring forward cost unbundling information in its regulatory
jurisdictions during 1997. The Company expects to have a filing before
the Idaho Commission prior to the start of its investigation.
The Company further believes that the future of the electric utility
industry will be characterized by the right of customers to choose
their own electric service provider. To remain successful, Idaho Power
must continue to provide value to its shareholders in the face of this
new competitive environment. The Company's vision involves three
strategies for creating this value: selective and efficient use of
capital; an enhanced customer orientation; and innovative, efficient
operations. Because future prices for power will be determined more by
market forces and less by regulatory administration, the Company must
be very selective and efficient in the use and allocation of capital.
Idaho Power will invest in improving and expanding its core business,
in developing new opportunities beyond its current service territory,
and in continuing to develop non-regulated opportunities consistent
with the Company's core competencies.
Based on this vision and the Company's efforts to increase shareholder
and customer value, Idaho Power is transforming its operations to
improve both efficiency and customer service. Teams of employees are
redesigning work processes. In some cases, these improved processes
are successfully in place.
Independent Grid Operator (IndeGo)
A group of twenty-one electric utilities, including Idaho Power, seven
Northwest investor-owned utilities, Bonneville Power Administration
(BPA) and several public electric entities have signed a memorandum of
understanding that will create an independent transmission grid
operator called "IndeGO". It will ensure non-discriminatory, open-
access to electricity transmission facilities in compliance with recent
FERC rulings. This memorandum of understanding is an agreement to
investigate the feasibility of developing a regional transmission grid
which would be operated by an entity independent of power market
interests. It is believed that the formation of such an entity will
facilitate the operation of an evolving competitive electric power
market. Operating as one regional system, the utilities will be able
to increase the efficiency of transmission operations and provide
improved access for all system users.
IndeGo is envisioned as an independent transmission company not
controlled by any individual power market participant(s). It is
anticipated that IndeGO will operate as a single control area, with
pricing based on a single zonal tariff applied equally to all users
including the participating companies.
IndeGO will not own transmission facilities at the onset, but will be
responsible for the operation of main transmission grid facilities 230
kilovolts (kV) or more that are owned by the participating utilities.
The group plans to file the IndeGo proposal with FERC during 1997, and
anticipates operation would commence as early as 1999. If the FERC's
approval arrives by April 1998, an IndeGo Board and Site Procurement
could be expected by July 1998.
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.
The Company and the Tribe have reached agreement on a settlement of
this case (Settlement Agreement). The Settlement Agreement has been
approved by the Nez Perce Tribal Executive Committee and the Company's
Board of Directors. Under the terms of the Settlement Agreement, the
Company will pay the Nez Perce Tribe $11.5 million in the following
manner:
-$5 million at which time the Tribe would move for the
dismissal of, with prejudice,their legal action against
the Company.
-$1,625,000 each year for the next four years beginning
in 1998.
All payments under the Settlement Agreement will be made in 1996
dollars, which allows for adjusted future inflation within a minimum
range of 3 percent and a maximum of 7 percent. The first payment of
$5.0 million plus inflation adjustment will be paid sometime in 1997.
On July 12, 1996 the IPUC issued Order No 26513, and on August 5, 1996,
the OPUC issued Order No. 96-207 approving capitalization of their
respective jurisdictional share of the $11.5 million. The parties
requested Bureau of Indian Affairs (BIA) approval of the Settlement
Agreement. However, on November 21, 1996, the Portland Area Director
of the BIA issued a decision stating that the Settlement Agreement did
not have to be approved by the BIA. On December 19, 1996, the Company
filed an administrative appeal of the BIA's decision and have since
requested and been granted a stay of said appeal pending pursuit of an
alternate federal approval. As a result of the BIA decision, the Tribe
and the Company explored alternatives to BIA approval that would help
assure the ultimate enforceability of the Settlement Agreement. The
parties agreed to request that the Federal District Court for the
District of Idaho approve the Settlement Agreement. The Tribe and the
Company, by motion, stipulated that the Ninth Circuit Court of Appeals
remand the case to the Federal District Court for the District of
Idaho, which motion was granted by the Ninth Circuit on February 6,
1997. On March 21, 1997, the Federal District Court for the District
of Idaho entered a judgment which incorporated the terms of the
Settlement Agreement. On March 28, 1997, the Company paid the Tribe $5
million plus agreed upon interest.
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,
March 13, 1997 and other reports filed with the Commission.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
Exhibit File Number As 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)(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
Exhibit File Number As Exhibit
Number Dated
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.
Exhibit File # As Exhibit
*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) 1-3198 10(i)(ii) Third Restated and Amended Coal Sales
Form 10-Q Agreement, dated January 1, 1996, among
for 3/31/96 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.
Exhibit File # As Exhibit
*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 Senior
Form 10-K Management Employees and for Directors-
for 1994 a non-qualified, deferred compensation
plan effective November 30, 1994.
*10(n)(ii)1 1-3198 10(n)(ii) The Executive Annual Incentive Plan for
Form 10-K senior management employees effective
for 1994 January 1, 1995.
*10(n)(iii)1 1-3198 10(n)(iii) The 1994 Restricted Stock Plan for
Form 10-K officers and key executives effective
for 1994 July 1, 1994.
*10(n)(iv)1 1-3198 10(n)(iv) The Revised Security Plans for Senior
Form 10-K Management Employees and for Directors-
1996 a non-qualified, deferred compensation
plan effective August 1, 1996.
*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.
*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.
1 Compensatory Plan
Exhibit File # As Exhibit
*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 substation
Form 10-Q dated October 4, 1995, between the
for 9/30/95 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. No reports on Form 8-K were filed
for the three months ended March 31, 1997.
*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 13, 1997 By: /s/ J LaMont Keen
J LaMont Keen
Vice President, Chief Financial
Officer and Treasurer
(Principal Financial Officer and
Principal Accounting Officer)
<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-31-1997
<PERIOD-END> MAR-31-1997
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 1,701,374
<OTHER-PROPERTY-AND-INVEST> 37,101
<TOTAL-CURRENT-ASSETS> 144,992
<TOTAL-DEFERRED-CHARGES> 417,818
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 2,301,285
<COMMON> 94,031
<CAPITAL-SURPLUS-PAID-IN> 357,865
<RETAINED-EARNINGS> 236,129
<TOTAL-COMMON-STOCKHOLDERS-EQ> 688,025
0
106,924
<LONG-TERM-DEBT-NET> 716,239
<SHORT-TERM-NOTES> 0
<LONG-TERM-NOTES-PAYABLE> 22,243
<COMMERCIAL-PAPER-OBLIGATIONS> 41,593
<LONG-TERM-DEBT-CURRENT-PORT> 71
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 726,190
<TOT-CAPITALIZATION-AND-LIAB> 2,301,285
<GROSS-OPERATING-REVENUE> 155,447
<INCOME-TAX-EXPENSE> 16,361
<OTHER-OPERATING-EXPENSES> 96,374
<TOTAL-OPERATING-EXPENSES> 112,735
<OPERATING-INCOME-LOSS> 42,712
<OTHER-INCOME-NET> 3,389
<INCOME-BEFORE-INTEREST-EXPEN> 46,101
<TOTAL-INTEREST-EXPENSE> 15,721
<NET-INCOME> 30,380
1,394
<EARNINGS-AVAILABLE-FOR-COMM> 28,986
<COMMON-STOCK-DIVIDENDS> 34,943
<TOTAL-INTEREST-ON-BONDS> 0
<CASH-FLOW-OPERATIONS> 70,246
<EPS-PRIMARY> 0.77
<EPS-DILUTED> 0.77
</TABLE>
Exhibit 15
May 13, 1997
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, 1997 and 1996, as indicated in our
report dated April 30, 1997; 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, 1997, is incorporated by reference in Registration
Statement Nos. 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 of 1933, is not considered a part of
the aforementioned registration statements 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
<TABLE>
<CAPTION>
Exhibit 12
Idaho Power Company
Consolidated Financial Information
Ratio of Earnings to Fixed Charges
Twelve Months Ended December 31, Twelve Months
(Thousands of Dollars) Ended
March 31
1992 1993 1994 1995 1996 1997
<S> <C> <C> <C> <C> <C> <C>
Computation of Ratio of Earnings to
Fixed Charges:
Consolidated net income $ 59,990 $ 84,464 $ 74,930 $ 86,921 $ 90,618 $ 90,787
Income taxes:
Income taxes (includes amounts charged
to other income and deductions) 24,601 38,057 35,307 49,498 51,316 50,254
Investment tax credit adjustment (1,439) (1,583) (1,064) (1,086) 776 733
Total income taxes 23,162 36,474 34,243 48,412 52,092 50,987
Income before income taxes 83,152 120,938 109,173 135,333 142,710 141,774
Fixed Charges:
Interest on long-term debt 53,408 53,706 51,172 51,147 52,165 53,008
Amortization of debt discount,
expense and premium - net 392 507 567 567 594 610
Interest on short-term bank loans 647 220 1,157 3,144 2,269 2,369
Other interest 1,011 2,023 1,538 1,598 2,319 3,010
Interest portion of rentals 683 1,077 794 925 991 858
Total fixed charges 56,141 57,533 55,228 57,381 58,338 59,855
Earnings - as defined $139,293 $178,471 $164,401 $192,714 $201,048 $201,629
Ratio of earnings to fixed charges 2.48X 3.10X 2.98X 3.36X 3.45X 3.37X
</TABLE>
<TABLE>
<CAPTION>
Exhibit 12(a)
Idaho Power Company
Consolidated Financial Information
Supplemental Ratio of Earnings to Fixed Charges
Twelve Months Ended December 31, Twelve Months
(Thousands of Dollars) Ended
March 31,
1992 1993 1994 1995 1996 1997
<S> <C> <C> <C> <C> <C> <C>
Computation of Ratio of Earnings to
Fixed Charges:
Consolidated net income $ 59,990 $ 84,464 $ 74,930 $ 86,921 $ 90,618 $ 90,787
Income taxes:
Income taxes (includes amounts charged
to other income and deductions) 24,601 38,057 35,307 49,498 51,316 50,254
Investment tax credit adjustment (1,439) (1,583) (1,064) (1,086) 776 733
Total income taxes 23,162 36,474 34,243 48,412 52,092 50,987
Income before income taxes 83,152 120,938 109,173 135,333 142,710 141,774
Fixed Charges:
Interest on long-term debt 53,408 53,706 51,172 51,147 52,165 53,008
Amortization of debt discount,
expense and premium - net 392 507 567 567 594 610
Interest on short-term bank loans 647 220 1,157 3,144 2,269 2,369
Other interest 1,011 2,023 1,538 1,598 2,319 3,010
Interest portion of rentals 683 1,077 794 925 991 858
Total fixed charges 56,141 57,533 55,228 57,381 58,338 59,855
Suppl increment to fixed charges* 2,487 2,631 2,622 2,611 2,600 2,597
Total supplemental fixed charges 58,628 60,164 57,850 59,992 60,938 62,452
Supplemental earnings - as defined $141,780 $181,102 $167,023 $195,325 $203,648 $204,226
Supplemental ratio of earnings to fixed
charges 2.42X 3.01X 2.89X 3.26X 3.34X 3.27X
<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 Requirement
Twelve Months Ended December 31, Twelve Months
(Thousands of Dollars) Ended
March 31,
1992 1993 1994 1995 1996 1997
<S> <C> <C> <C> <C> <C> <C>
Computation of Ratio of Earnings to
Fixed Charges:
Consolidated net income $ 59,990 $ 84,464 $ 74,930 $ 86,921 $ 90,618 $ 90,787
Income taxes:
Income taxes (includes amounts charged
to other income and deductions) 24,601 38,057 35,307 49,498 51,316 50,254
Investment tax credit adjustment (1,439) (1,583) (1,064) (1,086) 776 733
Total income taxes 23,162 36,474 34,243 48,412 52,092 50,987
Income before income taxes 83,152 120,938 109,173 135,333 142,710 141,774
Fixed Charges:
Interest on long-term debt 53,408 53,706 51,172 51,147 52,165 53,008
Amortization of debt discount,
expense and premium - net 392 507 567 567 594 610
Interest on short-term bank loans 647 220 1,157 3,144 2,269 2,369
Other interest 1,011 2,023 1,538 1,598 2,319 3,010
Interest portion of rentals 683 1,077 794 925 991 858
Total fixed charges 56,141 57,533 55,228 57,381 58,338 59,855
Preferred dividends requirements 7,611 8,547 10,682 12,392 12,146 10,735
Total fixed charges and
preferred dividends 63,752 66,080 65,910 69,773 70,484 70,590
Earnings - as defined $139,293 $178,471 $164,401 $192,714 $201,048 $201,629
Ratio of earnings to fixed charges and
preferred dividends 2.18X 2.70X 2.49X 2.76X 2.85X 2.86X
</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 Ended December 31, Twelve Months
(Thousands of Dollars) Ended
March 31,
1992 1993 1994 1995 1996 1997
<S> <C> <C> <C> <C> <C> <C>
Computation of Ratio of Earnings to
Fixed Charges:
Consolidated net income $ 59,990 $ 84,464 $ 74,930 $ 86,921 $ 90,618 $ 90,787
Income taxes:
Income taxes (includes amounts charged
to other income and deductions) 24,601 38,057 35,307 49,498 51,316 50,254
Investment tax credit adjustment (1,439) (1,583) (1,064) (1,086) 776 733
Total income taxes 23,162 36,474 34,243 48,412 52,092 50,987
Income before income taxes 83,152 120,938 109,173 135,333 142,710 141,774
Fixed Charges:
Interest on long-term debt 53,408 53,706 51,172 51,147 52,165 53,008
Amortization of debt discount,
expense and premium - net 392 507 567 567 594 610
Interest on short-term bank loans 647 220 1,157 3,144 2,269 2,369
Other interest 1,011 2,023 1,538 1,598 2,319 3,010
Interest portion of rentals 683 1,077 794 925 991 858
Total fixed charges 56,141 57,533 55,228 57,381 58,338 59,855
Suppl increment to fixed charges* 2,487 2,631 2,622 2,611 2,600 2,597
Supplemental fixed charges 58,628 60,164 57,850 59,992 60,938 62,452
Preferred dividend requirements 7,611 8,547 10,682 12,392 12,146 10,735
Total supplemental fixed charges
and preferred dividends 66,239 68,711 68,532 72,384 73,084 73,187
Supplemental earnings - as defined $141,780 $181,102 $167,023 $195,325 $203,648 $204,226
Supplemental ratio of earnings to fixed
charges and preferred dividends 2.14X 2.64X 2.44X 2.70X 2.79X 2.79X
<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>
