UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2000
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Exact name of registrants as
specified
in their charters, state of I.R.S.
Commission incorporation, address of Employer
File principal executive offices, Identification
Number and telephone number Number
1-14465 IDACORP, Inc. 82-0505802
1-3198 Idaho Power Company 82-0130980
1221 W. Idaho Street
Boise, ID 83702-5627
Telephone: (208) 388-2200
State of Incorporation: Idaho
Web site: www.idacorpinc.com
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
Number of shares of Common Stock outstanding as of June 30,
2000:
IDACORP, Inc.: 37,612,351
Idaho Power Company: 37,612,351 shares, all of which are held by
IDACORP, Inc.
INDEX
Page
Definitions 2
Part I. Financial Information:
Item 1. Financial Statements
IDACORP, Inc.:
Consolidated Statements of Income 3-4
Consolidated Balance Sheets 5-6
Consolidated Statements of Capitalization 7
Consolidated Statements of Cash Flows 8
Consolidated Statements of Comprehensive 9
Income
Notes to Consolidated Financial Statements 10-14
Independent Accountants' Report 15
Idaho Power Company:
Consolidated Statements of Income 16-17
Consolidated Balance Sheets 18-19
Consolidated Statements of Capitalization 20
Consolidated Statements of Cash Flows 21
Consolidated Statements of Comprehensive 22
Income
Notes to Consolidated Financial Statements 23-24
Independent Accountants' Report 25
Item 2. Management's Discussion and Analysis of
Financial
Condition and Results of Operations 26-32
Part II. Other Information:
Item 4. Submission of Matters to a Vote of 33-34
Security Holders
Item 6. Exhibits and Reports on Form 8-K 35-38
Signatures 39-40
DEFINITIONS
FASB - Financial Accounting Standards Board
FERC - Federal Energy Regulatory Commission
IPUC - Idaho Public Utilities Commission
kWh - kilowatt-hour
MAF - Million Acre-Feet
MMbtu - Million British Thermal Units
MWh - Megawatt-hour
OPUC - Oregon Public Utility Commission
PCA - Power Cost Adjustment
PUCN - Public Utility Commission of Nevada
REA - Rural Electrification Administration
SFAS - Statement of Financial Accounting Standards
FORWARD LOOKING INFORMATION
This Form 10-Q contains "forward-looking statements" intended to
qualify for 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
Item 1. Financial Statements
IDACORP, Inc.
Consolidated Statements of Income
Three Months Ended
June 30,
2000 1999
(Thousands of Dollars except
for per share amounts)
REVENUES:
General business $139,168 $129,530
Off system sales 64,054 29,520
Other revenues 9,859 6,022
Total revenues 213,081 165,072
EXPENSES:
Operation:
Purchased power 101,630 22,527
Fuel expense 20,056 18,854
Power cost adjustment (21,943) 6,192
Other 37,885 41,196
Maintenance 13,902 11,499
Depreciation 19,949 19,404
Taxes other than income taxes 5,463 5,676
Total expenses 176,942 125,348
INCOME FROM OPERATIONS 36,139 39,724
OTHER INCOME:
Allowance for equity funds used
during construction 635 230
Energy marketing activities - Net 28,037 7,096
Other - Net 123 1,893
Total other income 28,795 9,219
INTEREST EXPENSE AND OTHER:
Interest on long-term debt 13,253 13,758
Other interest 1,989 2,200
Allowance for borrowed funds used
during construction (525) (134)
Preferred dividends of Idaho
Power Company 1,484 1,352
Total interest expense and
other 16,201 17,176
INCOME BEFORE INCOME TAXES 48,733 31,767
INCOME TAXES 16,211 10,525
NET INCOME $ 32,522 $ 21,242
AVERAGE COMMON SHARES OUTSTANDING
(000) 37,612 37,612
EARNINGS PER SHARE OF COMMON STOCK
basic and diluted) $ 0.86 $ 0.56
The accompanying notes are an integral part of these
statements.
IDACORP, Inc.
Consolidated Statements of Income
Six Months Ended
June 30,
2000 1999
(Thousands of Dollars except
for per share amounts)
REVENUES:
General business $262,382 $259,222
Off-system sales 99,979 67,031
Other revenues 17,053 12,969
Total revenues 379,414 339,222
EXPENSES:
Operation:
Purchased power 114,519 40,415
Fuel expense 44,715 40,875
Power cost adjustment (18,685) 15,198
Other 73,121 73,964
Maintenance 22,912 19,382
Depreciation 39,836 38,575
Taxes other than income taxes 10,890 11,259
Total expenses 287,308 239,668
INCOME FROM OPERATIONS 92,106 99,554
OTHER INCOME:
Allowance for equity funds used
during construction 1,091 387
Gain on sale of asset 14,000 -
Energy marketing activities -
Net 36,560 7,843
Other - Net 3,553 4,126
Total other income 55,204 12,356
INTEREST EXPENSE AND OTHER:
Interest on long-term debt 26,415 27,153
Other interest 4,686 4,429
Allowance for borrowed funds
used during construction (1,012) (358)
Preferred dividends of
Idaho Power Company 2,912 2,720
Total interest expense and
other 33,001 33,944
INCOME BEFORE INCOME TAXES 114,309 77,966
INCOME TAXES 39,707 27,224
NET INCOME $ 74,602 $ 50,742
AVERAGE COMMON SHARES OUTSTANDING
(000) 37,612 37,612
EARNINGS PER SHARE OF COMMON STOCK
(basic and diluted) $ 1.98 $ 1.35
The accompanying notes are an integral part of these
statements.
IDACORP, Inc.
Consolidated Balance Sheets
Assets
June 30, December 31,
2000 1999
(Thousands of Dollars)
ELECTRIC PLANT:
In service (at original cost) $2,749,748 $2,726,026
Accumulated provision for
depreciation (1,110,710) (1,073,722)
In service - Net 1,639,038 1,652,304
Construction work in progress 118,107 91,637
Held for future use 2,018 1,742
Electric plant - Net 1,759,163 1,745,683
INVESTMENTS AND OTHER PROPERTY 160,643 146,019
CURRENT ASSETS:
Cash and cash equivalents 43,669 111,338
Receivables:
Customer 139,331 98,923
Allowance for uncollectible
accounts (1,397) (1,397)
Notes 7,046 4,353
Employee notes 4,326 4,105
Other 6,623 7,764
Energy marketing assets 377,479 37,398
Accrued unbilled revenues 42,397 31,994
Materials and supplies (at
average cost) 30,471 29,611
Fuel stock (at average cost) 8,350 9,329
Prepayments 20,054 16,097
Regulatory assets associated
with income taxes 3,232 893
Total current assets 681,581 350,408
DEFERRED DEBITS:
American Falls and Milner water
rights 31,585 31,585
Company-owned life insurance 39,048 40,480
Regulatory assets associated
with income taxes 212,111 214,782
Regulatory assets - other 66,840 52,759
Other 59,859 55,277
Total deferred debits 409,443 394,883
TOTAL $3,010,830 $2,636,993
The accompanying notes are an integral part of these
statements.
IDACORP, Inc.
Consolidated Balance Sheets
Capitalization and Liabilities
June 30, December 31,
2000 1999
(Thousands of Dollars)
CAPITALIZATION:
Common stock equity:
Common stock without par
value (shares authorized
120,000,000; shares
outstanding - 37,612,351) $ 449,800 $ 451,343
Retained earnings 339,774 300,093
Accumulated other
comprehensive income 2,277 1,534
Total common stock equity 791,851 752,970
Preferred stock of Idaho Power
Company 105,583 105,811
Long-term debt 821,073 821,558
Total capitalization 1,718,507 1,680,339
CURRENT LIABILITIES:
Long-term debt due within one
year 8,155 89,101
Notes payable 25,458 19,757
Accounts payable 195,068 145,737
Energy marketing liabilities 378,329 33,814
Taxes accrued 23,707 21,313
Interest accrued 16,869 19,126
Deferred income taxes 3,232 893
Other 33,024 16,696
Total current liabilities 683,842 346,437
DEFERRED CREDITS:
Regulatory liabilities associated
with deferred investment
tax credits 66,742 67,433
Deferred income taxes 435,448 430,468
Regulatory liabilities
associated with income taxes 33,506 33,817
Regulatory liabilities - other 5,438 3,363
Other 67,347 75,136
Total deferred credits 608,481 610,217
COMMITMENTS AND CONTINGENT
LIABILITIES
TOTAL $3,010,830 $2,636,993
The accompanying notes are an integral part of these
statements.
IDACORP, Inc.
Consolidated Statements of Capitalization
June 30, December 31,
2000 % 1999 %
(Thousands of Dollars)
COMMON STOCK EQUITY:
Common stock $ 449,800 $ 451,343
Retained earnings 339,774 300,093
Accumulated other comprehensive
income 2,277 1,534
Total common stock equity 791,851 46 752,970 45
PREFERRED STOCK OF IDAHO POWER
COMPANY:
4% preferred stock 15,583 15,811
7.68% Series, serial preferred
stock 15,000 15,000
7.07% Series, serial preferred
stock 25,000 25,000
Auction rate preferred stock 50,000 50,000
Total preferred stock 105,583 6 105,811 6
LONG-TERM DEBT:
First mortgage bonds:
8.65 %Series due 2000 - 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
5.83 % Series due 2005 60,000 60,000
7.20 % Series due 2009 80,000 80,000
Maturing 2021 through 2031 with
rates ranging from 7.5% to
9.52% 230,000 230,000
Total first mortgage bonds 557,000 637,000
Amount due within one year - (80,000)
Net first mortgage bonds 557,000 557,000
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
Variable Rate Series 2000
due 2027 4,360 -
Total pollution control
revenue bonds 174,820 170,460
REA notes 1,377 1,415
Amount due within one year (77) (76)
Net REA notes 1,300 1,339
American Falls Bond guarantee 19,885 19,885
Milner Dam note guarantee 11,700 11,700
Unamortized premium/discount - Net (1,397) (1,441)
Debt related to investments in
affordable housing with
rates ranging from 6.03% - 8.59%
due 2000 to 2011 65,373 71,183
Amount due within one year (8,078) (9,025)
Net affordable housing debt 57,295 62,158
Other subsidiary debt 470 457
Total long-term debt 821,073 48 821,558 49
TOTAL CAPITALIZATION $1,718,507 100 $1,680,339 100
The accompanying notes are an integral part of these
statements.
IDACORP, Inc.
Consolidated Statements of Cash Flows
Six Months Ended
June 30,
2000 1999
(Thousands of Dollars)
OPERATING ACTIVITIES:
Net income $ 74,602 $ 50,742
Adjustments to reconcile net
income to net cash provided
by operating activities:
Unrealized losses from
energy marketing activities 4,434 29
Gain on sale of asset (14,000) -
Depreciation and amortization 48,490 47,717
Deferred taxes and investment
tax credits 6,669 (2,282)
Undistributed earnings of
affiliates (6,495) (1,438)
Accrued PCA costs (18,962) 15,122
Change in:
Accounts receivable and
prepayments (46,138) (11,628)
Accrued unbilled revenue (10,403) 1,024
Materials and supplies and
fuel stock 119 (4,467)
Accounts payable 49,331 (11,461)
Taxes accrued 2,394 2,589
Other current assets and
liabilities 7,208 2,778
Other - net 399 (3,280)
Net cash provided by operating
activities 97,648 85,445
INVESTING ACTIVITIES:
Additions to utility plant (53,838) (51,517)
Investments in affordable
housing projects (10,704) (10,591)
Proceeds from sale of asset 17,500 -
Investments in Company - owned - (6,749)
life insurance
Other - net (5,809) (1,915)
Net cash used in investing
activities (52,851) (70,772)
FINANCING ACTIVITIES:
Proceeds from issuance of:
Pollution control revenue bonds 4,360 -
Long-term debt related to
affordable housing projects 4,335 7,271
Retirement of:
Long-term debt related to
affordable housing projects (10,145) (4,279)
First mortgage bonds (80,000) -
Dividends on common stock (34,921) (34,931)
Increase in short-term 5,701 9,626
borrowings
Other - net (1,796) (556)
Net cash used in financing
activities (112,466) (22,869)
Net decrease in cash and cash
equivalents (67,669) (8,196)
Cash and cash equivalents at
beginning of period 111,338 22,867
Cash and cash equivalents at end
of period $ 43,669 $ 14,671
SUPPLEMENTAL DISCLOSURE OF CASH
FLOW INFORMATION:
Cash paid during the period
for:
Income taxes $ 28,364 $ 24,784
Interest (net of amount
capitalized) $ 31,204 $ 30,095
The accompanying notes are an integral part of these
statements.
IDACORP, Inc.
Consolidated Statements of Comprehensive Income
Three Months Ended
June 30,
2000 1999
(Thousands of Dollars)
NET INCOME $32,522 $21,242
OTHER COMPREHENSIVE INCOME:
Unrealized gains on securities
(net of tax of ($184)) 606 -
TOTAL COMPREHENSIVE INCOME $33,128 $21,242
Six Months Ended
June 30,
2000 1999
(Thousands of Dollars)
NET INCOME $74,602 $50,742
OTHER COMPREHENSIVE INCOME:
Unrealized gains on securities
(net of tax of ($95)) 743 -
TOTAL COMPREHENSIVE INCOME $75,345 $50,742
The accompanying notes are an integral part of these
statements
IDACORP, Inc.
Notes to Consolidated Financial Statements
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Nature of Business
IDACORP, Inc. (IDACORP or the Company), is a holding company
whose principal operating subsidiary is Idaho Power Company
(IPC). IPC is regulated by the FERC and the state
regulatory commissions of Idaho, Oregon, Nevada and Wyoming
and is engaged in the generation, transmission,
distribution, sale and purchase of electric energy.
Financial Statements
In the opinion of the Company, the accompanying unaudited
consolidated financial statements contain all adjustments
necessary to present fairly its consolidated financial
position as of June 30, 2000, and its consolidated results
of operations for the three and six months ended June 30,
2000 and 1999 and cash flows for the six months ended June
30, 2000 and 1999. These financial statements do not
contain the complete detail or footnote disclosure
concerning accounting policies and other matters that would
be included in full year financial statements and therefore
they should be read in conjunction with the Company's
audited consolidated financial statements included in the
Company's Annual Report on Form 10-K for the year ended
December 31, 1999. The results of operations for the
interim periods are not necessarily indicative of the
results to be expected for the full year.
Principles of Consolidation
The consolidated financial statements include the accounts
of the Company and its wholly-owned or controlled
subsidiaries. All significant intercompany transactions and
balances have been eliminated in consolidation. 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.
Derivative Financial Instruments
The Company uses financial instruments such as commodity
futures, forwards, options and swaps to manage exposure to
commodity price risk in the electricity and natural gas
markets. The objective of the Company's risk management
program is to mitigate the risk associated with the purchase
and sale of electricity and natural gas as well as to
optimize its energy marketing portfolio. The accounting for
derivative financial instruments that are used to manage
risk is in accordance with the concepts established in SFAS
No. 80, "Accounting for Futures Contracts," American
Institute of Certified Public Accountants Statement of
Position 86-2, "Accounting for Options," and Emerging Issues
Task Force (EITF) 98-10, "Accounting for Contracts Involved
in Energy Trading Activities." EITF 98-10 was adopted
effective January 1, 1999 resulting in an adjustment to net
income that was not material.
Energy trading contracts as defined by EITF 98-10 are
reported at fair value on the balance sheet with the
resulting gains and losses reported on the income statement.
Cash flows from energy trading contracts are recognized in
the statement of cash flows as an operating activity.
Reclassifications
Certain items previously reported for periods prior to June
30, 2000 have been reclassified to conform with the current
period's presentation. Net income was not affected by these
reclassifications.
2. INCOME TAXES
The Company's effective tax rate for the first six months
decreased from 34.9 percent in 1999 to 34.7 percent in 2000.
Reconciliations between the statutory income tax rate and
the effective rates are as follows (in thousands of
dollars):
Six Months Ended June 30,
2000 1999
Amount Rate Amount Rate
Computed income taxes based
on statutory
federal income tax rate $ 40,008 35.0% $ 27,288 35.0%
Changes in taxes resulting
from:
Investment tax credits (1,542) (1.4) (1,481) (1.9)
Repair allowance (1,400) (1.2) (1,137) (1.5)
Pension expense (950) (0.8) 7 0.0
State income taxes 5,607 4.9 4,230 5.4
Depreciation 3,461 3.0 2,662 3.4
Tax credits (5,499) (4.8) (4,222) (5.4)
Preferred dividends of IPC 1,019 0.9 952 1.2
Other (997) (0.9) (1,075) (1.3)
Total $ 39,707 34.7% $ 27,224 34.9%
3. PREFERRED STOCK OF IDAHO POWER COMPANY:
The number of shares of IPC preferred stock outstanding were
as follows:
June 30, December 31,
2000 1999
Cumulative, $100 par value:
4% preferred stock (authorized
215,000 shares) 155,827 158,112
Serial preferred stock, 7.68%
Series (authorized
150,000 shares) 150,000 150,000
Serial preferred stock, cumulative,
without par value; total of
3,000,000 shares authorized:
7.07% Series, $100 stated value,
(authorized 250,000 shares) 250,000 250,000
Auction rate preferred stock,
$100,000 stated value,
(authorized 500 shares) 500 500
4. FINANCING:
The Company currently has a $300.0 million shelf
registration statement that can be used for the issuance of
unsecured debt securities and preferred or common stock. At
June 30, 2000, none had been issued.
On March 23, 2000, IPC filed a $200.0 million shelf
registration statement that can be used for first mortgage
bonds (including medium term notes), unsecured debt, or
preferred stock.
On January 1, 2000, IPC redeemed at maturity, $80.0 million
8.65% First Mortgage Bonds using funds from the issuance of
$80.0 million Secured Medium Term Notes, Series B, 7.20%
issued on November 23, 1999.
On April 26, 2000, at the Company's request, the American
Falls Reservoir District issued its American Falls Refunding
Replacement Dam Bonds, Series 2000, in the aggregate
principal amount of $19.9 million for the purpose of
refunding on April 26, 2000, a like amount of its bonds
dated May 1, 1990. The Company has guaranteed repayment of
these bonds.
On May 17, 2000, tax exempt Pollution Control Revenue
Refunding Bonds Series 2000 in the aggregate principal
amount of $4.4 million were issued by Port of Morrow, Oregon
for the purpose of refunding on August 1, 2000, a like
amount of its Pollution Control Revenue Bonds, Series 1978.
5. 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 $9.2 million at June
30, 2000. 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 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 flows.
6. REGULATORY ISSUES:
Power Cost Adjustment (PCA)
IPC has a PCA mechanism that provides for annual adjustments
to the rates charged to its Idaho retail electric customers.
These adjustments, which take effect annually on May 16, are
based on forecasts of net power supply costs, and the true-
up of the prior year's forecast. The difference between the
actual costs incurred and the forecasted costs is deferred,
with interest, and trued-up in the next annual rate
adjustment.
The IPUC approved IPC's May 16, 2000 PCA adjustment, issuing
Order 28358 dated May 9, 2000. This rate adjustment
increased Idaho general business customer rates by 9.5
percent, and results from forecasted below-average
hydroelectric generating conditions (see "Streamflow
Conditions" below). Overall, IPC's annual general business
revenues are expected to increase by $38 million during the
2000-2001 rate period, to partially offset the forecasted
increase in power supply costs.
So far in the 2000-2001 PCA rate year, actual power supply
costs have been greater than the forecast, due to actual
hydroelectric generation being below the forecast, and
purchased power volumes and prices being above the forecast.
To account for these higher-than-forecasted costs, IPC has
recorded a regulatory asset of $20.3 million as of June 30,
2000.
Regulatory Settlement
IPC had a settlement agreement with the IPUC that expired at
the end of 1999. Under the terms of the settlement, when
earnings in IPC's Idaho jurisdiction exceeded an 11.75
percent return on year-end common equity, IPC set aside 50
percent of the excess for the benefit of Idaho retail
customers.
In March 2000 IPC submitted its 1999 annual earnings sharing
compliance filing to the IPUC. This filing indicated that
there was almost $9.6 million in 1999 earnings and $2.7
million in unused 1998 reserve balances available for the
benefit of our Idaho customers.
In April 2000 the IPUC issued Order 28333, which ordered
that $6.9 million of the revenue sharing balance be refunded
to Idaho customers through rate reductions effective May 16,
2000. The Order also approved IPC's continued participation
in the Northwest Energy Efficiency Alliance (NEEA) for the
years 2000-2004, ordering IPC to set aside the remaining
$5.4 million of revenue sharing dollars to fund that
participation.
DSM (Conservation) Expenses
IPC requested that the IPUC allow for the recovery of post-
1993 DSM expenses and acceleration of the recovery of DSM
expenditures authorized in the last general rate case. In
its Order No. 27660 issued on July 31, 1998, the IPUC set a
new amortization period of 12 years instead of the 24-year
period previously adopted. In 2000, the Idaho Supreme Court
affirmed the IPUC order, after hearing an appeal by a group
of industrial customers.
7. NEW ACCOUNTING PRONOUNCEMENTS:
In June 1998 the FASB issued SFAS No. 133 "Accounting for
Derivative Instruments and Hedging Activities." This
statement establishes accounting and reporting standards for
derivative financial instruments and other similar
instruments and for hedging activities. It was originally
effective for fiscal years beginning after June 15, 1999.
In June 1999 the FASB issued SFAS No. 137 "Accounting for
Derivative Instruments and Hedging Activities - Deferral of
the Effective Date of FASB Standard No. 133", which defers
the effective date of SFAS No. 133 one year. In June 2000,
SFAS No. 138 "Accounting for Certain Derivative Instruments
and Certain Hedging Activities, an amendment of FASB
Statement No. 133" was issued. The Company is reviewing
SFAS No. 133 and SFAS No. 138 to determine their effect on
the Company's financial position and results of operations.
The Company will adopt this standard on January 1, 2001.
8. DERIVATIVE FINANCIAL INSTRUMENTS:
The following table shows a summary of the notional amounts
of the Company's forward exposure (including both sales and
purchases) as of June 30, 2000 and December 31, 1999. The
maximum term related to any forward position is five years.
June 30, 2000 December 31, 1999
Gas Electricity Gas Electricity
MMbtu's MWh's MMbtu's MWh's
Total gross
notional
volume 444,536 22,556 112,513 10,818
The following table displays the fair values of the
Company's energy marketing assets and liabilities at June
30, 2000 and December 31, 1999 and the average values for
the six months ended June 30, 2000 (in thousands of
dollars):
Balance at June 30, Six Months Average Balance at
2000 Balance December 31, 1999
Assets Liabilities Assets Liabilities Assets Liabilities
Gas $ 85,925 $ 86,732 $ 52,872 $ 53,343 $ 8,302 $ 8,220
Electricity 291,554 291,597 122,427 116,425 29,096 25,594
Total $377,479 $378,329 $175,299 $169,768 $ 37,398 $ 33,814
Notional amounts listed above reflect the volume of energy
related to transactions with counterparties, but do not
measure exposure to market or credit risks. The maximum
term detailed above also is not indicative of likely future
cash flows as positions may be offset in the markets at any
time to meet risk management guidelines.
9. INDUSTRY SEGMENT INFORMATION:
IDACORP's principal operating segment is the regulated
utility operations of IPC. IPC's primary business is the
generation, transmission, distribution, purchase and sale of
electricity. Substantially all of the Company's revenue
comes from the sale of electricity and related services,
predominately in the United States.
The Company's marketing segment includes electricity and
natural gas commodity trading, home security, internet and
satellite television services, and energy-related products
and services.
The Company also is involved in the development and sale of
clean-energy products, including fuel cell and photovoltaic
systems, invests in projects generating tax credits, and
manages and develops independent power projects.
The following table summarizes IDACORP's segment
information:
IPC Total
Utility Marketing Other Enterprise
(Thousands of Dollars)
Three months ended
June 30, 2000:
Revenues $ 213,081 $ - $ - $ 213,081
Net income 12,762 17,499 2,261 32,522
Total assets at
June 30, 2000 $2,348,688 $ 485,812 $ 176,330 $3,010,830
Three months ended
June 30, 1999:
Revenues $ 165,072 $ - $ - $ 165,072
Net income 15,482 4,486 1,274 21,242
Total assets at
December 31, 1999 $2,355,907 $ 129,275 $ 151,811 $2,636,993
IPC Total
Utility Marketing Other Enterprise
(Thousands of Dollars)
Six months ended
June 30, 2000:
Revenues $ 379,414 $ - $ - $ 379,414
Net income 37,856 22,664 14,082 74,602
Six months ended
June 30, 1999:
Revenues $ 339,222 $ - $ - $ 339,222
Net income 42,235 4,590 3,917 50,742
INDEPENDENT ACCOUNTANTS' REPORT
IDACORP, Inc.
Boise, Idaho
We have reviewed the accompanying consolidated balance sheet
and statement of capitalization of IDACORP, Inc. and
subsidiaries as of June 30, 2000, and the related
consolidated statements of income and comprehensive income
for the three and six month periods ended June 30, 2000 and
1999 and consolidated statements of cash flows for the six
month periods ended June 30, 2000 and 1999. 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 of making inquiries of persons
responsible for financial and accounting matters. It is
substantially less in scope than an audit conducted in
accordance with auditing standards generally accepted in the
United States of America, 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
accounting principles generally accepted in the United
States of America.
We have previously audited, in accordance with auditing
standards generally accepted in the United States of
America, the consolidated balance sheet and statement of
capitalization of IDACORP, Inc. and subsidiaries as of
December 31, 1999, and the related consolidated statements
of income, comprehensive income, retained earnings, and cash
flows for the year then ended (not presented herein); and in
our report dated January 31, 2000, 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, 1999 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
Boise, Idaho
July 25, 2000
Idaho Power Company
Consolidated Statements of Income
Three Months Ended
June 30,
2000 1999
(Thousands of Dollars)
REVENUES:
General business $ 139,168 $ 129,530
Off system sales 64,054 29,520
Other revenues 9,859 6,022
Total revenues 213,081 165,072
EXPENSES:
Operation:
Purchased power 101,630 22,527
Fuel expense 20,056 18,854
Power cost adjustment (21,943) 6,192
Other 37,885 41,196
Maintenance 13,902 11,499
Depreciation 19,949 19,404
Taxes other than income taxes 5,463 5,676
Total expenses 176,942 125,348
INCOME FROM OPERATIONS 36,139 39,724
OTHER INCOME:
Allowance for equity funds used
during construction 635 230
Energy marketing activities - 25,981 7,860
Net
Other - Net 2,355 788
Total other income 28,971 8,878
INTEREST CHARGES:
Interest on long-term debt 13,226 13,720
Other interest 914 1,741
Allowance for borrowed funds
used during construction (525) (134)
Total interest charges 13,615 15,327
INCOME BEFORE INCOME TAXES 51,495 33,275
INCOME TAXES 19,341 10,479
NET INCOME 32,154 22,796
Dividends on preferred stock 1,484 1,352
EARNINGS ON COMMON STOCK $ 30,670 $ 21,444
The accompanying notes are an integral part of these
statements.
Idaho Power Company
Consolidated Statements of Income
Six Months Ended
June 30,
2000 1999
(Thousands of Dollars)
REVENUES:
General business $262,382 $259,222
Off system sales 99,979 67,031
Other revenues 17,053 12,969
Total revenues 379,414 339,222
EXPENSES:
Operation:
Purchased power 114,519 40,415
Fuel expense 44,715 40,875
Power cost adjustment (18,685) 15,198
Other 73,121 73,964
Maintenance 22,912 19,382
Depreciation 39,836 38,575
Taxes other than income taxes 10,890 11,259
Total expenses 287,308 239,668
INCOME FROM OPERATIONS 92,106 99,554
OTHER INCOME:
Allowance for equity funds
used during construction 1,091 387
Energy marketing activities -
Net 33,705 8,586
Other - Net 7,081 2,739
Total other income 41,877 11,712
INTEREST CHARGES:
Interest on long-term debt 26,358 27,080
Other interest 2,391 3,903
Allowance for borrowed funds
used during construction (1,012) (358)
Total interest charges 27,737 30,625
INCOME BEFORE INCOME TAXES 106,246 80,641
INCOME TAXES 40,366 27,061
NET INCOME 65,880 53,580
Dividends on preferred stock 2,912 2,720
EARNINGS ON COMMON STOCK $ 62,968 $ 50,860
The accompanying notes are an integral part of these
statements.
Idaho Power Company
Consolidated Balance Sheets
Assets
June 30, December 31,
2000 1999
(Thousands of Dollars)
ELECTRIC PLANT:
In service (at original cost) $2,749,748 $2,726,026
Accumulated provision for
depreciation (1,110,710) (1,073,722)
In service - Net 1,639,038 1,652,304
Construction work in progress 118,064 88,348
Held for future use 2,018 1,742
Electric plant - Net 1,759,120 1,742,394
INVESTMENTS AND OTHER PROPERTY 27,020 117,759
CURRENT ASSETS:
Cash and cash equivalents 7,806 95,038
Receivables:
Customer 111,019 83,412
Allowance for uncollectible
accounts (1,397) (1,397)
Notes 2,886 345
Employee notes 4,326 4,105
Related parties - 195
Other 3,964 7,095
Energy marketing assets 291,554 29,096
Accrued unbilled revenues 42,397 31,994
Materials and supplies (at
average cost) 26,222 28,960
Fuel stock (at average cost) 8,350 9,329
Prepayments 19,856 16,054
Regulatory assets associated
with income taxes 3,232 893
Total current assets 520,215 305,119
DEFERRED DEBITS:
American Falls and Milner water
rights 31,585 31,585
Company-owned life insurance 39,048 40,480
Regulatory assets associated
with income taxes 212,111 214,782
Regulatory assets - other 66,840 52,759
Other 56,998 54,496
Total deferred debits 406,582 394,102
TOTAL $2,712,937 $2,559,374
The accompanying notes are an integral part of these
statements.
Idaho Power Company
Consolidated Balance Sheets
Capitalization and Liabilities
June 30, December 31,
2000 1999
(Thousands of Dollars)
CAPITALIZATION:
Common stock equity:
Common stock, $2.50 par value
(50,000,000 shares
authorized; 37,612,351 shares
outstanding) $ 94,031 $ 94,031
Premium on capital stock 362,278 362,203
Capital stock expense (3,814) (3,819)
Retained earnings 280,138 274,181
Accumulated other
comprehensive income 2,277 1,534
Total common stock equity 734,910 728,130
Preferred stock 105,583 105,811
Long-term debt 763,308 821,558
Total capitalization 1,603,801 1,655,499
CURRENT LIABILITIES:
Long-term debt due within one
year 77 89,101
Notes payable 14,500 19,757
Accounts payable 130,371 95,125
Notes and accounts payable to
related parties 6,497 10,076
Energy marketing liabilities 291,598 25,594
Taxes accrued 15,553 21,773
Interest accrued 14,643 19,122
Deferred income taxes 3,232 893
Other 32,835 16,069
Total current liabilities 509,306 297,510
DEFERRED CREDITS:
Regulatory liabilities
associated with deferred
investment tax credits 66,742 67,433
Deferred income taxes 428,645 428,923
Regulatory liabilities
associated with income taxes 33,506 33,817
Regulatory liabilities - other 5,438 3,363
Other 65,499 72,829
Total deferred credits 599,830 606,365
COMMITMENTS AND CONTINGENT
LIABILITIES
TOTAL $2,712,937 $2,559,374
The accompanying notes are an integral part of these
statements.
Idaho Power Company
Consolidated Statements of Capitalization
June 30, December 31,
2000 % 1999 %
(Thousands of Dollars)
COMMON STOCK EQUITY:
Common stock $ 94,031 $ 94,031
Premium on capital stock 362,278 362,203
Capital stock expense (3,814) (3,819)
Retained earnings 280,138 274,181
Accumulated other comprehensive
income 2,277 1,534
Total common stock equity 734,910 46 728,130 44
PREFERRED STOCK:
4% preferred stock 15,583 15,811
7.68% Series, serial preferred
stock 15,000 15,000
7.07% Series, serial preferred
stock 25,000 25,000
Auction rate preferred stock 50,000 50,000
Total preferred stock 105,583 6 105,811 6
LONG-TERM DEBT:
First mortgage bonds:
8.65 %Series due 2000 - 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
5.83 %Series due 2005 60,000 60,000
7.20 %Series due 2009 80,000 80,000
Maturing 2021 through
2031 with rates ranging
from 7.5% to 9.52% 230,000 230,000
Total first mortgage bonds 557,000 637,000
Amount due within one year - (80,000)
Net first mortgage bonds 557,000 557,000
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
Variable Rate Series 2000
due 2027 4,360 -
Total pollution control
revenue bonds 174,820 170,460
REA notes 1,377 1,415
Amount due within one year (77) (76)
Net REA notes 1,300 1,339
American Falls bond guarantee 19,885 19,885
Milner Dam note guarantee 11,700 11,700
Debt related to investments in
affordable housing with
rates ranging from 6.03% to
8.77% due 2000 to 2010 - 71,183
Amount due within one year - (9,025)
Net affordable housing debt - 62,158
Other subsidiary debt - 457
Unamortized premium/discount - Net (1,397) (1,441)
Total long-term debt 763,308 48 821,558 50
TOTAL CAPITALIZATION $1,603,801 100 $1,655,499 100
The accompanying notes are an integral part of these
statements.
Idaho Power Company
Consolidated Statements of Cash Flows
Six Months Ended
June 30,
2000 1999
(Thousands of Dollars)
OPERATING ACTIVITIES:
Net income $ 65,880 $ 53,580
Adjustments to reconcile net income
to net cash:
Unrealized losses from energy
marketing activities 3,545 4,285
Depreciation and amortization 44,895 47,592
Deferred taxes and investment tax
credits 6,118 (2,105)
Undistributed earnings of
affiliate (4,151) (1,189)
Accrued PCA costs (18,962) 15,122
Change in:
Accounts receivable and (33,684) 1,798
prepayments
Accrued unbilled revenue (10,403) 1,024
Materials and supplies and fuel
stock 763 (4,267)
Accounts payable 38,126 (3,414)
Taxes accrued (5,756) 2,242
Other current assets and 7,256 2,369
liabilities
Other - net (426) (10,777)
Net cash provided by
operating activities 93,201 106,260
INVESTING ACTIVITIES:
Additions to utility plant (53,838) (50,249)
Investments in affordable housing
projects - (10,591)
Investments in Company - owned life
insurance - (6,749)
Net cash of affiliates transferred
to parent (4,737) -
Other - net (3,733) 2,803
Net cash used in investing
activities (62,308) (64,786)
FINANCING ACTIVITIES:
Issuance of:
Long-term debt related to
affordable housing projects - 7,271
Pollution control revenue bonds 4,360 -
Retirement of:
First mortgage bonds (80,000) -
Long-term debt related to
affordable housing projects - (4,279)
Dividends on common stock (34,921) (34,979)
Dividends on preferred stock (2,912) (2,720)
Decrease in short-term borrowings (4,467) (21,232)
Other - net (185) (56)
Net cash used in financing
activities (118,125) (55,995)
Net decrease in cash and cash (87,232) (14,521)
equivalents
Cash and cash equivalents at beginning
of period 95,038 20,029
Cash and cash equivalents at end of
period $ 7,806 $ 5,508
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Cash paid during the period for:
Income taxes $ 30,788 $ 23,844
Interest (net of amount
capitalized) $ 29,331 $ 29,466
Net assets of affiliates
transferred to parent $ 22,090 $ -
The accompanying notes are an integral part of these
statements.
Idaho Power Company
Consolidated Statements of Comprehensive Income
Three Months Ended
June 30,
2000 1999
(Thousands of Dollars)
NET INCOME $ 32,154 $ 22,796
OTHER COMPREHENSIVE INCOME:
Unrealized gains on securities
(net of tax of ($184)) 606 -
TOTAL COMPREHENSIVE INCOME $ 32,760 $ 22,796
Six Months Ended
June 30,
2000 1999
(Thousands of Dollars)
NET INCOME $ 65,880 $ 53,580
OTHER COMPREHENSIVE INCOME:
Unrealized gains on securities
(net of tax of ($95)) 743 -
TOTAL COMPREHENSIVE INCOME $ 66,623 $ 53,580
The accompanying notes are an integral part of these
statements
Idaho Power Company
Notes to the Consolidated Financial Statements
On October 1, 1998, IDACORP, Inc. (IDACORP) became the
parent of Idaho Power Company and subsidiaries (IPC). On
January 1, 2000 IPC's ownership interests in two
subsidiaries were transferred to IDACORP at book value.
IPC's consolidated balance sheet as of December 31, 1999
included total assets of $108 million and net assets of $22
million, and the consolidated statements of income for the
quarter and six months ended June 30, 1999 included net
income of $525 thousand and $840 thousand, respectively,
attributable to the transferred subsidiaries.
Except as modified below, the Notes to the Consolidated
Financial Statements of IDACORP also contained in this Form
10-Q are incorporated herein by reference insofar as they
relate to IPC.
Note 1 - Summary of Significant Accounting Policies
Note 3 - Preferred Stock of Idaho Power Company
Note 4 - Financing
Note 5 - Commitments and Contingent Liabilities
Note 6 - Regulatory Issues
Note 7 - New Accounting Pronouncement
2. INCOME TAXES:
IPC's effective tax rate for the first six months increased
from 33.6 percent in 1999 to 38.0 percent in 2000.
Reconciliations between the statutory income tax rate and
the effective rates are as follows (in thousands of
dollars):
Six Months Ended June 30,
2000 1999
Amount Rate Amount Rate
Computed income taxes based
on statutory
federal income tax rate $ 37,186 35.0% $ 28,224 35.0%
Changes in taxes resulting
from:
Investment tax credits (1,542) (1.4) (1,481) (1.8)
Repair allowance (1,400) (1.3) (1,137) (1.4)
Pension expense (950) (0.9) 7 0.0
State income taxes 5,145 4.8 4,230 5.2
Depreciation 3,461 3.3 2,662 3.3
Affordable housing tax - - (4,222) (5.2)
credits
Other (1,534) (1.5) (1,222) (1.5)
Total $ 40,366 38.0% $ 27,061 33.6%
8. DERIVATIVE FINANCIAL INSTRUMENTS:
The following table shows a summary of the notional amounts
of IPC's forward exposure (including both sales and purchases)
as of June 30, 2000 and December 31, 1999. The maximum term
related to any forward position is five years.
June 30, 2000 December 31, 1999
Electricity Electricity
MWh's MWh's
Total gross
notional volume 22,556 10,818
The following table displays the fair value of IPC's energy
marketing assets and liabilities (all electricity) at June
30, 2000 and December 31, 1999 and the average values for
the six months ended June 30, 2000 (in thousands of
dollars):
Balance at June 30, 2000 Six Months Average Balance at December 31,
Balance 1999
Assets Liabilities Assets Liabilities Assets Liabilities
$291,554 $291,598 $122,427 $116,425 $ 29,096 $ 25,594
9. INDUSTRY SEGMENT INFORMATION:
IPC's principal operating segment is its regulated electric
operations, including the generation, transmission,
distribution, purchase and sale of electricity.
Substantially all of IPC's revenue comes from the sale of
electricity and related services, predominately in the
United States
The Company's marketing segment represents its electricity
commodity trading.
The following table summarizes IPC's segment information:
Regulated
Electric Total
Operations Marketing Other Enterprise
(Thousands of Dollars)
Three months ended
June 30, 2000:
Revenues $ 213,081 $ - $ - $ 213,081
Net income 14,246 16,195 1,713 32,154
Total assets at June
30, 2000 $2,348,688 $ 336,288 $ 27,961 $2,712,937
Three months ended
June 30, 1999:
Revenues $ 165,072 $ - $ - $ 165,072
Net income 16,834 4,858 1,104 22,796
Total assets at
December 31, 1999 $2,355,907 $ 72,023 $ 131,444 $2,559,374
Regulated
Electric Total
Operations Marketing Other Enterprise
(Thousands of Dollars)
Six months ended June
30, 2000:
Revenues $ 379,414 $ - $ - $ 379,414
Net income 40,768 20,840 4,272 65,880
Six months ended June
30, 1999:
Revenues $ 339,222 $ - $ - $ 339,222
Net income 44,955 5,302 3,323 53,580
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 June 30, 2000, and the related
consolidated statements of income and comprehensive income
for the three and six month periods ended June 30, 2000 and
1999 and consolidated statements of cash flows for the six
month periods ended June 30, 2000 and 1999. 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 of making inquiries of persons
responsible for financial and accounting matters. It is
substantially less in scope than an audit conducted in
accordance with auditing standards generally accepted in the
United States of America, 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
accounting principles generally accepted in the United
States of America.
We have previously audited, in accordance with auditing
standards generally accepted in the United States of
America, the consolidated balance sheet and statement of
capitalization of Idaho Power Company and subsidiaries as of
December 31, 1999, and the related consolidated statements
of income, comprehensive income, retained earnings, and cash
flows for the year then ended (not presented herein); and in
our report dated January 31, 2000, 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, 1999 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
Boise, Idaho
July 25, 2000
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERTIONS
In Management's Discussion and Analysis we explain the
general financial condition and results of operations for
IDACORP, Inc. and subsidiaries (IDACORP or the Company) and
for Idaho Power Company and subsidiaries (IPC). IPC, an
electric utility, is IDACORP's principal operating
subsidiary. Except where we indicate otherwise, this
discussion explains the material changes in results of
operations and the financial condition of both IDACORP and
IPC. This discussion should be read in conjunction with the
accompanying consolidated financial statements of both
IDACORP and IPC.
This discussion updates the discussion that we included in
our Annual Report on Form 10-K for the year ended December
31, 1999. This discussion should be read in conjunction
with the discussion in the annual report.
FORWARD-LOOKING INFORMATION:
In connection with the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 (Reform Act), we
are hereby filing cautionary statements identifying
important factors that could cause our actual results to
differ materially from those projected in forward-looking
statements (as such term is defined in the Reform Act) made
by or on behalf of the Company and IPC in this quarterly
report on Form 10-Q, in presentations, in response to
questions or otherwise. Any statements that express, or
involve discussions as to expectations, beliefs, plans,
objectives, assumptions or future events or performance
(often, but not always, through the use of words or phrases
such as "anticipates", "believes", "estimates", "expects",
"intends", "plans", "predicts", projects", "will likely
result", "will continue", or similar expressions) are not
statements of historical facts and may be forward-looking.
Forward-looking statements involve estimates, assumptions,
and uncertainties and are qualified in their entirety by
reference to, and are accompanied by, the following
important factors, which are difficult to predict, contain
uncertainties, are beyond our control and may cause actual
results to differ materially from those contained in forward-
looking statements:
prevailing governmental policies and regulatory actions,
including those of the FERC, the IPUC, the OPUC, and the
PUCN, with respect to allowed rates of return, industry and
rate structure, acquisition and disposal of assets and
facilities, operations and construction of plant facilities,
recovery of purchased power and other capital investments,
and present or prospective wholesale and retail competition
(including but not limited to retail wheeling and
transmission costs);
economic and geographic factors including political and
economic risks;
changes in and compliance with environmental and safety laws
and policies;
weather conditions;
population growth rates and demographic patterns;
competition for retail and wholesale customers;
pricing and transportation of commodities;
market demand, including structural market changes;
changes in tax rates or policies or in rates of inflation;
changes in project costs;
unanticipated changes in operating expenses and capital
expenditures;
capital market conditions;
competition for new energy development opportunities; and
legal and administrative proceedings (whether civil or
criminal) and settlements that influence the business and
profitability of the Company.
Any forward-looking statement speaks only as of the date on
which such statement is made, and we undertake no obligation
to update any forward-looking statement to reflect events or
circumstances after the date on which such statement is made
or to reflect the occurrence of unanticipated events. New
factors emerge from time to time and it is not possible for
management to predict all such factors, nor can it assess
the impact of any such factor on the business, or the extent
to which any factor, or combination of factors, may cause
results to differ materially from those contained in any
forward-looking statement.
RESULTS OF OPERATIONS:
Quarter ended June 30, 2000 vs. Quarter ended June 30, 1999:
Earnings per share of IDACORP Common Stock:
Earnings per share (EPS) of IDACORP common stock (basic and
diluted) was $0.86 for the quarter ended June 30, 2000, an
increase of $0.30 over the same quarter last year. The
increase in EPS was due primarily to improved results from
energy marketing activities, which increased EPS
approximately $0.34. Energy marketing is discussed below in
"Other Income."
General Business Revenue
Our general business revenue is dependent on many factors,
including the number of customers we serve, the rates we
charge, and economic and weather conditions (temperature and
precipitation) in our service territory. The following
changes affected our general business revenue:
Precipitation, which affects sales to irrigators,
decreased 38 percent in May and June, the heavier
irrigation sales months in the quarter. MWh sales to
irrigation customers increased 44 percent.
The average number of general business customers we
served increased 2.7 percent. This increase was due
primarily to economic growth in our service territory.
Our revenue per MWh was mostly unchanged. Changes in
revenue per MWh result principally from the annual rate
adjustments authorized by regulatory authorities. These
rate adjustments are discussed below in "PCA" and
"Regulatory Settlement."
Heating and cooling degree-days, common measures used in
the utility industry to analyze demand, were below 1999
levels by 35 percent.
The combination of these factors resulted in an increase in
general business revenue of $9.6 million.
Power Supply
Power supply components of income from operations include
off-system sales, purchased power and fuel expenses and the
PCA.
Off-system sales, consisting primarily of long-term sales
contracts and opportunity sales of surplus system energy
increased $34.5 million from last year while purchased power
expenses increased $79.1 million. Our purchased power costs
increase is due to a number of factors:
Hydro generation was down from last year, necessitating
more purchases in the open market.
In late June 2000 a unit of the Bridger steam plant
suffered a forced outage, requiring us to buy market-
priced power.
Market prices of purchased power increased significantly
late in the quarter, resulting in a 64 percent increase
in average price per MWh.
Off-system revenues were also lifted by the increase in
market prices, with a 117 percent increase in the average
price per MWh.
The $1.2 million increase in fuel expenses is due to two
factors, a five percent increase in total MWhs generated at
our coal-fired plants, and an increase in the average cost
per ton of coal used. We increased utilization of these
plants because of less hydro generation. Cost per ton was
higher because a greater proportion of our generation was
from our Valmy plant, which has a higher delivered cost of
coal than our other plants.
The PCA decreased $28.1 million. The PCA is a regulatory
mechanism that increases expense when actual power supply
costs are below the costs forecasted in the annual PCA
filing, and decreases expense when actual power supply costs
are above the forecast. In 2000, actual power supply costs
were significantly above the forecast, due to the factors
previously described, and resulted in a PCA credit. In
1999, actual power supply costs were below that year's
forecast. We discuss the PCA in more detail below in
"PCA."
The impact of these changes in net power supply costs is an
increase in net expense in 2000 of $18 million.
Other expenses
Other operating expenses decreased $3.3 million. The
decrease is due primarily to a reduction in pension costs
for our defined benefit pension plan and decreased falling
water expenses resulting from our refinancing of the
American Falls bonds.
Other income
IDACORP's other income increased for the quarter, due to
improved results from energy marketing activities, which
increased IDACORP's other income by $20.9 million and IPC's
other income by $18.1 million. This increase is due
primarily to an increase in volumes and price volatility
over last year. While managing within strict risk limits,
our trading strategy was able to take advantage of several
key market factors such as price differential between
regions, the run-up in power and natural gas prices and the
increase in volatility.
Income taxes
The increase in income taxes is predominately due to the
increases in net income before taxes. IPC's effective tax
rate increased because of a transfer of its IDACORP
Financial Services (IFS) subsidiary to IDACORP on January 1,
2000. IFS invests in projects which generate income tax
credits. These credits reduced IPC's income tax expense for
periods prior to January 1, 2000.
Six months ended June 30, 2000 vs. Six months ended June 30,
1999:
Earnings per share of IDACORP Common Stock
Earnings per share of IDACORP common stock (basic and
diluted) was $1.98 for the six months ended June 30, 2000,
an increase of $0.63 over last year. The increase in EPS
was due primarily to two factors, improved results from
energy marketing activities, which increased EPS
approximately $0.46, and the sale of the Hermiston Power
Project, which increased EPS approximately $0.22. These
factors are discussed below in "Other Income."
General Business Revenue
The following changes affected our general business revenue:
The average number of general business customers we
served increased 2.7 percent, due primarily to economic
growth in our service territory.
Precipitation, which affects sales to irrigators,
decreased 38 percent in May and June, the heavier
irrigation sales months in the period. MWh sales to
irrigation customers have increased 42 percent year-to-
date.
Our revenue per MWh decreased 4.1 percent compared to
1999. Changes in revenue per MWh result primarily from
the annual rate adjustments authorized by regulatory
authorities. These adjustments are discussed below in
"PCA" and "Regulatory Settlement."
Heating and cooling degree-days, common measures used in
the utility industry to analyze demand, were below 1999
levels by 13 percent.
Sales (in MWhs) to commercial and industrial customers
increased 4.3 percent, due primarily to positive economic
factors in our service territory.
The combination of these factors resulted in an increase in
general business revenue of $3 million compared to 1999.
Power Supply
Off-system sales, consisting primarily of long-term sales
contracts and opportunity sales of surplus system energy
increased $32.8 million from last year while purchased power
expenses increased $74.1 million. Our purchased power costs
increase is due to a number of factors:
Hydro generation was down from last year, necessitating
more purchases in the open market.
In late June 2000 a unit of the Bridger steam plant
suffered a forced outage, requiring us to buy market-
priced power.
Market prices of purchased power increased significantly
late in June, resulting in a 79 percent increase in
average price per MWh.
Off-system revenues were also lifted by the significant
increase in market prices, with a 75 percent increase in the
average price per MWh.
The $3.8 million increase in fuel expenses is due to two
factors, a ten percent increase in total MWhs generated at
our coal-fired plants, and an increase in average price of
coal used. We increased utilization of these plants because
of less hydro generation. Cost per ton was higher because a
greater proportion of our generation was from our Valmy
plant, which has a higher delivered cost of coal.
The PCA decreased $33.9 million. The PCA is a regulatory
mechanism that increases expense when actual power supply
costs are below the costs forecasted in the annual PCA
filing, and decreases expense when actual power supply costs
are above the forecast. In 2000, actual power supply costs
were significantly above the forecast, due to the power
supply variations described above, and resulted in a PCA
credit. In 1999, actual power supply costs were below that
year's forecast. We discuss the PCA in more detail below
in "PCA."
The impact of these changes in net power supply costs is an
increase in net expense in 2000 of $11.1 million.
Other expenses
Maintenance expenses increased $3 million. The increase is
due primarily to tree trimming and pole maintenance efforts
around our distribution system, and maintenance of the
Bridger generation plant.
Other income
IDACORP's other income increased due primarily to the sale
of our interest in the Hermiston Power Project, a 536 MW,
gas-fired cogeneration project located near Hermiston,
Oregon. We recorded a pre-tax gain of $14.0 million on this
transaction. This item does not affect IPC's financial
statements because Ida-West, the developer of the Hermiston
project, is a subsidiary of IDACORP, and not IPC.
In addition, improved results from energy marketing
activities increased IDACORP's other income by $28.7 million
and IPC's other income by $25.1 million. This increase is due
primarily to an increase in volumes and price volatility
over last year. While managing within strict risk limits,
our trading strategy was able to take advantage of several
key market factors such as price differential between
regions, the run-up in power and natural gas prices and the
increase in volatility.
Income taxes
The increase in income taxes is predominantly due to the
increases in net income before taxes. IPC's effective tax
rate increased because of a transfer of its IDACORP
Financial Services (IFS) subsidiary to IDACORP on January 1,
2000. IFS invests in projects which generate income tax
credits. These credits reduced IPC's income tax expense for
periods prior to January 1, 2000.
LIQUIDITY AND CAPITAL RESOURCES:
Cash Flow
For the six months ended June 30, 2000, IDACORP generated
$97.6 million in net cash from operations. After deducting
for common stock dividends, net cash generation from
operations provided approximately $62.7 million for our
construction program and other capital requirements.
Cash Expenditures
We estimate that our total cash construction expenditures
for 2000 will be approximately $121 million. This estimate
is subject to revision in light of changing economic,
regulatory, and environmental factors. During the first six
months of 2000, we spent approximately $53.8 million for
construction. Our primary financial commitments and
obligations are related to contracts and purchase orders
associated with ongoing construction programs. To the
extent required, we expect to finance these commitments and
obligations by using both internally generated funds and
externally financed capital. At June 30, 2000, our short-
term borrowings totaled $25.5 million.
Financing Program
IDACORP has a $300.0 million shelf registration statement
that can be used for the issuance of unsecured debt
securities and preferred or common stock. At June 30, 2000,
none had been issued.
On March 23, 2000, IPC filed a $200.0 million shelf
registration statement that can be used for both First
Mortgage Bonds (including Medium Term Notes), Preferred
Stock, and unsecured debt. At June 30, 2000, none had been
issued.
On April 26, 2000, at the Company's request, the American
Falls Reservoir District issued its American Falls Refunding
Replacement Dam Bonds, Series 2000, in the aggregate
principal amount of $19.9 million for the purpose of
refunding on April 26, 2000, a like amount of its bonds
dated May 1, 1990. IPC has guaranteed repayment of these
bonds.
On May 17, 2000, tax exempt Pollution Control Revenue
Refunding Bonds Series 2000 in the aggregate principal
amount of $4.4 million were issued by Port of Morrow, Oregon
for the purpose of refunding on August 1, 2000, a like
amount of its Pollution Control Revenue Bonds, Series 1978.
REGULATORY ISSUES:
Power Cost Adjustment (PCA)
IPC has a PCA mechanism that provides for annual adjustments
to the rates charged to its Idaho retail electric customers.
These adjustments, which take effect annually on May 16, are
based on forecasts of net power supply costs, and the true-
up of the prior year's forecast. The difference between the
actual costs incurred and the forecasted costs is deferred,
with interest, and trued-up in the next annual rate
adjustment.
The IPUC approved IPC's May 16, 2000 PCA adjustment, issuing
Order 28358 dated May 9, 2000. This rate adjustment
increased Idaho general business customer rates by 9.5
percent, and results from forecasted below-average
hydroelectric generating conditions (see "Streamflow
Conditions" below). Overall, IPC's annual general business
revenues are expected to increase by $38 million during the
2000-2001 rate period, to partially offset the forecasted
increase in power supply costs.
So far in the 2000-2001 PCA rate year, actual power supply
costs have been greater than the forecast, due to actual
hydroelectric generation being below the forecast, and
purchased power volumes and prices being above the forecast.
To account for these higher-than-forecasted costs, IPC has
recorded a regulatory asset of $20.3 million as of June 30,
2000.
Regulatory Settlement
IPC had a settlement agreement with the IPUC that expired at
the end of 1999. Under the terms of the settlement, when
earnings in IPC's Idaho jurisdiction exceeded an 11.75
percent return on year-end common equity, IPC set aside 50
percent of the excess for the benefit of Idaho retail
customers.
In March 2000 IPC submitted its 1999 annual earnings sharing
compliance filing to the IPUC. This filing indicated that
there was almost $9.6 million in 1999 earnings and $2.7
million in unused 1998 reserve balances available for the
benefit of our Idaho customers.
In April 2000 the IPUC issued Order 28333, which ordered
that $6.9 million of the revenue sharing balance be refunded
to Idaho customers through rate reductions effective May 16,
2000. The Order also approved IPC's continued participation
in the Northwest Energy Efficiency Alliance (NEEA) for the
years 2000-2004, ordering IPC to set aside the remaining
$5.4 million of revenue sharing dollars to fund that
participation.
DSM (Conservation) Expenses
IPC requested that the IPUC allow for the recovery of post-
1993 DSM expenses and acceleration of the recovery of DSM
expenditures authorized in the last general rate case. In
its Order No. 27660 issued on July 31, 1998, the IPUC set a
new amortization period of 12 years instead of the 24-year
period previously adopted. In 2000, the Idaho Supreme Court
affirmed the IPUC order, after hearing an appeal by a group
of industrial customers.
OTHER MATTERS:
Energy Marketing
Over the last three years we have been implementing a
strategy to become a competitive energy provider throughout
the western markets. In order to compete as an energy
provider of choice we needed to build a foundation of an
effective and efficient trading operation that competently
participates in the electricity, natural gas and other
related markets. In 1997 we opened natural gas trading
operations in Houston, Texas and in Boise, Idaho. We also
began to expand our electricity marketing, which, along with
natural gas, is included in other income. We have seen
increasing positive results from our strategy. Our natural
gas marketing capability continues to expand as the
electricity and natural gas markets move toward convergence,
and our electricity marketing efforts have resulted in volume
and income increases each year since inception of the
strategy. While building this business capability over the
last three years, we have also been developing appropriate
controls to mitigate the operational, market and credit risks
inherent in the marketing business.
When buying and selling energy, the high volatility of
energy prices can have a significant impact on profitability
if not managed. Also, counterparty creditworthiness is key
to ensuring that transactions entered into withstand
dramatic market fluctuations. To manage these risks while
implementing our business strategy, the Company has a Risk
Management Committee, comprised of Company officers, to
oversee the risk management program as defined in the risk
management policy. The program is intended to minimize
fluctuations in earnings while managing the volatility of
energy prices by mitigating commodity price risk, credit
risk, and other risks related to the energy trading
business.
The aggregate potential daily loss in earnings from our
energy trading activity as of June 30, 2000 is estimated to
be $1.3 million at a 95 percent confidence interval and for
a holding period of one business day. The potential loss in
earnings was estimated using an analytic value-at-risk
methodology. This methodology computes value-at-risk based
upon market prices for futures and option-implied
volatilities as of June 30, 2000. The value-at-risk is
understood to be a forecast and is not guaranteed to occur.
The chosen confidence level and holding period are industry
standards. The confidence level and holding period imply
that there is a five percent chance that the daily loss will
exceed $1.3 million.
The primary factors causing the increase in our value-at-
risk since December 31, 1999 is the large increase in
electricity and natural gas prices and volatility since the
beginning of the year. The value-at-risk estimate is
reported on a daily basis and managed within acceptable
limits by the Risk Management Committee.
Subsidiary Activities
IDACORP Financial, a wholly owned subsidiary of IDACORP, is
expanding its investment portfolio to include projects that
provide historical tax credits. IDACORP Financial recently
closed on a historical tax credit project in San Diego,
California, the El Cortez project, which is expected to
contribute to earnings beginning in the third quarter of
2000.
In June, 2000, IdaTech (formerly Northwest Power Systems, a
majority-owned subsidiary of IDACORP), delivered the first
of 110 fuel cell systems to Bonneville Power Administration.
Since then, two additional units have been delivered with
the final seven "alpha" units scheduled to go out by the end
of 2000. IdaTech also received an additional patent on its
fuel processor. This patent covers the process that will
help reduce the cost of the materials used in the hydrogen
purification module. IdaTech is on schedule to demonstrate
a natural gas fuel cell system later this summer and it
continues to work on key alliances to meet the goal of
commercializing fuel cell systems for home and small
commercial applications by 2003.
Streamflow Conditions
We monitor the effect of streamflow conditions on Brownlee
Reservoir, the water source for our three Hells Canyon
hydroelectric projects. In a typical year, these three
projects combine to produce about half of our generated
electricity.
Inflows into Brownlee result from a combination of
precipitation, storage, and ground water conditions. The
National Weather Service's projected inflows into Brownlee
were 3.9 MAF for the 2000-2001 water year, compared to the
70-year median of 4.9 MAF and 1999's 7.9 MAF.
Integrated Resource Plan (IRP)
Every two years, IPC is required to file with the IPUC and
OPUC an Integrated Resource Plan (IRP), a comprehensive look
at IPC's present and future demands for electricity and plan
for meeting that demand. The 2000 IRP identifies a potential
electricity shortfall within our utility service territory
by mid-2004. The plan projects a 250 MW resource need in
2004 to satisfy energy demand during IPC's peak periods.
Prior to 2004, the IRP calls for IPC to increase purchases
from the Northwest energy markets to meet short-term energy
needs. IPC anticipates that after 2004, transmission
constraints will not allow it to continue to cover
increasing demand by increasing purchases. The plan calls
for IPC to issue a request for proposals (RFP) to acquire
additional generating capacity accessible to IPC's utility
service territory. The final decision on the acquisition of
additional energy supplies will be made in consultation with
the IPUC and OPUC.
In response to IPC's IRP filing, Ida-West Energy Company,
IDACORP's unregulated subsidiary, has announced plans to
respond to the RFP when it is issued. If selected, Ida-West
intends to construct a 250-MW combined-cycle natural gas
turbine facility within IPC's service territory. In June
2000, Ida-West filed an application with the Idaho Division
of Environmental Quality seeking the necessary air quality
permits to construct and operate the gas turbine generator.
Regional Transmission Organization
IPC and other regional utility entities are moving forward
on the development of a regional transmission organization
(RTO) proposal for an October 15, 2000 filing as ordered by
the FERC. The group has formed RTO West and filed articles
of incorporation in May 2000. RTO West will use a
collaborative approach to draft a proposal for establishing
a transmission organization that gives power producers and
marketers equal access to high voltage power lines and
ensures regional grid reliability.
New Accounting Pronouncements
In June 1998 the FASB issued SFAS No. 133 "Accounting for
Derivative Instruments and Hedging Activities." This
statement establishes accounting and reporting standards for
derivative financial instruments and other similar
instruments and for hedging activities. In June 1999 the
FASB issued SFAS No. 137 "Accounting for Derivative
Instruments and Hedging Activities - Deferral of the
Effective Date of FASB Standard No. 133" which defers the
effective date of SFAS No. 133 until fiscal years beginning
after June 15, 2000. In June 2000, the FASB issued SFAS No.
138 "Accounting for Certain Derivative Instruments and
Certain Hedging Activities, an amendment of FASB Statement
No. 133." We are reviewing SFAS No. 133 and SFAS No. 138 to
determine their effect on our financial position and results
of operations. Significant interpretation, system
development and potential derivative identification have
been accomplished and the project is ongoing. We will adopt
these statements on January 1, 2001.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK
The information required by this item is included in Item 2
"Management's Discussion and Analysis of Financial Condition
and Results of Operations" under "Energy Marketing".
Item 4. Submission of Matters to a Vote of Security Holders
(a) Regular annual meeting of IDACORP'S stockholders,
held May 11, 2000 in Boise, Idaho.
(b) Directors elected at the meeting for a three-year
term:
Jan B. Packwood
Peter T. Johnson
Peter S. O'Neill
Continuing Directors:
Rotchford L. Barker Roger L. Breezley
Robert D. Bolinder John B. Carley
Jon H. Miller Jack K. Lemley
Robert A. Tinstman Evelyn Loveless
(c)(1)a) To elect three Director Nominees;
Name For Withheld Total Voted
Peter T. Johnson 32,836,864 1,013,057 33,849,921
Peter S. O'Neill 32,686,504 1,163,417 33,849,921
Jan B. Packwood 32,782,516 1,067,405 33,849,921
b) To approve the IDACORP 2000 Long-Term Incentive and
Compensation Plan, and;
Class of Stock For Against Abstain Total Voted
Common 25,112,143 7,800,812 936,966 33,849,921
c) To ratify the selection of Deloitte & Touche LLP (D&T)
as independent auditors for the fiscal year ending December
31, 2000.
Class of Stock For Against Abstain Total Voted
Common 33,241,217 299,596 309,108 33,849,921
Item 4. Submission of Matters to a Vote of Security Holders
(a) Regular annual meeting of Idaho Power Company's
stockholders, held May 11, 2000 in Boise, Idaho.
(b) Directors elected at the meeting for a three-year
term:
Jan B. Packwood
Peter T. Johnson
Peter S. O'Neill
Continuing Directors:
Rotchford L. Barker Roger L. Breezley
Robert D. Bolinder John B. Carley
Jon H. Miller Jack K. Lemley
Robert A. Tinstman Evelyn Loveless
(c)(1)a) To elect three Director Nominees;
Common 4% Preferred 7.68% Preferred
Name For Withheld For Withheld For Withheld
Peter T. Johnson 37,612,351 - 2,221,420 59,940 98,779 150
Peter S. O'Neill 37,612,351 - 2,215,380 65,980 98,779 150
Jan B. Packwood 37,612,351 - 2,219,660 61,700 98,779 150
b) To amend certain articles of Idaho Power Company
Restated Articles of Incorporation to conform to Idaho law
and the amended Bylaws of Idaho Power; and
Broker
Class of Stock For Against Abstain Non-Votes Total Voted
Common 37,612,351 - - - 37,612,351
4% Preferred 1,587,120 98,800 65,220 530,220 2,281,360
7.68% Preferred 72,069 200 260 26,400 98,929
Total 39,271,540 99,000 65,480 556,620 39,992,640
c) To ratify the selection of Deloitte & Touche LLP (D&T)
as independent auditors for the fiscal year ending
December 31, 1999.
Class of Stock For Against Abstain Total Voted
Common 37,612,351 - - 37,612,351
4% Preferred 2,188,700 59,920 32,740 2,281,360
7.68% Preferred 98,749 100 80 98,929
Total 39,899,800 60,020 32,820 39,992,640
(2) Director Nominees
Class of Stock For Withheld Total Voted
Common 37,612,351 - 37,612,351
4% Preferred 2,215,380 65,980 2,281,360
7.68% Preferred 98,779 150 98,929
Total 39,926,510 66,130 39,992,640
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
Exhibit File Number As Exhibit
*2 333-48031 2 Agreement and Plan of Exchange
between IDACORP, Inc., and IPC dated
as of February 2, 1998.
*3(a) 33-00440 4(a)(xiii) Restated Articles of Incorporation
of IPC as filed with the Secretary
of State of Idaho on June 30, 1989.
*3(a)(i) 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) of IPC, as filed
with the Secretary of State of Idaho
on November 5, 1991.
*3(a)(ii) 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) of
IPC, as filed with the Secretary of
State of Idaho on June 30, 1993.
3(a)(iii) Articles of Amendment to Restated
Articles of Incorporation of IPC as
filed with the Secretary of State of
Idaho on June 15, 2000.
*3(b) 33-41166 4(b) Waiver resolution to Restated
Articles of Incorporation of IPC
adopted by Shareholders on May 1,
1991.
*3(c) 1-3198 3(c) By-laws of IPC amended on September
Form 10-Q 9, 1999, and presently in effect.
for 9/30/99
*3(d) 33-56071 3(d) Articles of Share Exchange, as filed
with the Secretary of State of Idaho
on September 29, 1998.
*3(e) 333-64737 3.1 Articles of Incorporation of
IDACORP, Inc.
*3(f) 333-64737 3.2 Articles of Amendment to Articles of
Incorporation of IDACORP, Inc. as
filed with the Secretary of State of
Idaho on March 9, 1998.
*3(g) 333-00139 3(b) Articles of Amendment to Articles of
Incorporation of IDACORP, Inc.
creating A Series Preferred Stock,
without par value, as filed with the
Secretary of State of Idaho on
September 17, 1998.
*3(h) 1-14465 3(c) Amended Bylaws of IDACORP, Inc. as
Form 10-Q of July 8, 1999.
for 6/30/99
*4(a)(i) 2-3413 B-2 Mortgage and Deed of Trust, dated as
of October 1, 1937, between IPC and
Bankers Trust Company and
R. G. Page, as Trustees.
*4(a)(ii) IPC Supplemental Indentures to
Mortgage and Deed of Trust:
Number Dated
1-MD B-2-a First July 1, 1939
2-5395 7-a-3 Second November 15, 1943
2-7237 7-a-4 Third February 1, 1947
2-7502 7-a-5 Fourth May 1, 1948
2-8398 7-a-6 Fifth November 1, 1949
2-8973 7-a-7 Sixth October 1, 1951
2-12941 2-C-8 Seventh January 1, 1957
2-13688 4-J Eighth July 15, 1957
2-13689 4-K Ninth November 15, 1957
2-14245 4-L Tenth April 1, 1958
2-14366 2-L Eleventh October 15, 1958
2-14935 4-N Twelfth May 15, 1959
2-18976 4-O Thirteenth November 15, 1960
2-18977 4-Q Fourteenth November 1, 1961
2-22988 4-B-16 Fifteenth September 15, 1964
2-24578 4-B-17 Sixteenth April 1, 1966
2-25479 4-B-18 Seventeenth October 1, 1966
2-45260 2(c) Eighteenth September 1, 1972
2-49854 2(c) Nineteenth January 15, 1974
2-51722 2(c)(i) Twentieth August 1, 1974
2-51722 2(c)(ii) Twenty-first October 15, 1974
2-57374 2(c) Twenty-second November 15, 1976
2-62035 2(c) Twenty-third August 15, 1978
33-34222 4(d)(iii) Twenty-fourth September 1, 1979
33-34222 4(d)(iv) Twenty-fifth November 1, 1981
33-34222 4(d)(v) Twenty-sixth May 1, 1982
33-34222 4(d)(vi) Twenty-seventh May 1, 1986
33-00440 4(c)(iv) Twenty-eighth June 30, 1989
33-34222 4(d)(vii) Twenty-ninth January 1, 1990
33-65720 4(d)(iv) Thirty-first August 15, 1991
33-65720 4(d)(v) Thirty-second March 15, 1992
33-65720 4(d)(vi) Thirty-third April 1, 1993
1-3198 4 Thirty-fourth December 1, 1993
Form 8-K
Dated
12/17/93
4(b) Instruments relating to IPC American
Falls bond guarantee (see Exhibit
10(c)).
*4(c) 33-65720 4(f) Agreement of IPC 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) 1-14465 4 Rights Agreement, dated as of
Form 8-K September 10, 1998, between IDACORP,
dated Inc. and the Bank of New York as
September Rights Agent.
15, 1998
*10(a) 2-49584 5(b) Agreements, dated September 22,
1969, between IPC and Pacific
Power & Light Company relating to
the operation, construction and
ownership of the Jim Bridger
Project.
*10(a)(i) 2-51762 5(c) Amendment, dated February 1, 1974,
relating to operation agreement
filed as Exhibit 10(a).
*10(b) 2-49584 5(c) Agreement, dated as of October 11,
1973, between IPC and Pacific
Power & Light Company.
10(c) Guaranty Agreement, dated April 11,
2000, between IPC and Bank One Trust
Company, N.A., as Trustee, relating
to $19,885,000 American Falls
Replacement Dam Refinancing Bonds of
the American Falls Reservoir
District, Idaho.
*10(d) 2-62034 5(r) Guaranty Agreement, dated as of
August 30, 1974, between IPC and
Pacific Power & Light Company.
*10(e) 2-56513 5(i) Letter Agreement, dated January 23,
1976, between IPC and Portland
General Electric Company.
*10(e)(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 IPC.
*10(e)(ii) 2-62034 5(t) Amendment, dated September 30, 1977,
relating to agreement filed as
Exhibit 10(e).
*10(e)(iii) 2-62034 5(u) Amendment, dated October 31, 1977,
relating to agreement filed as
Exhibit 10(e).
*10(e)(iv) 2-62034 5(v) Amendment, dated January 23, 1978,
relating to agreement filed as
Exhibit 10(e).
*10(e)(v) 2-62034 5(w) Amendment, dated February 15, 1978,
relating to agreement filed as
Exhibit 10(e).
*10(e)(vi) 2-68574 5(x) Amendment, dated September 1, 1979,
relating to agreement filed as
Exhibit 10(e).
*10(f) 2-68574 5(z) Participation Agreement, dated
September 1, 1979, relating to the
sale and leaseback of coal handling
facilities at the Number One
Boardman Station on Carty Reservoir.
*10(g) 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
IPC.
*10(h)(i)1 1-3198 10(n)(i) The Revised Security Plan for Senior
Form 10-K Management Employees - a non-
for 1994 qualified, deferred compensation
plan effective August 1, 1996.
*10(h)(ii)1 1-3198 10(n)(ii) The Executive Annual Incentive Plan
Form 10-K for senior management employees of
for 1994 IPC effective January 1, 1995.
*10(h)(iii)1 1-3198 10(n)(iii) The 1994 Restricted Stock Plan for
Form 10-K officers and key executives of
for 1994 IDACORP, Inc. and IPC effective July
1, 1994.
*10(h)(iv)1 1-14465 10(h)(iv) The Revised Security Plan for Board
1-3198 of Directors - a non-qualified,
Form 10-K deferred compensation plan effective
for 1998 August 1, 1996, revised March 2,
1999.
*10(h)(v)1 14465 10(e) IDACORP, Inc. Non-Employee Directors
Form 10-Q Stock Compensation Plan as of May
for 6/30/99 17, 1999.
*10(h)(vi) 1-3198 10(y) Executive Employment Agreement dated
Form 10-K November 20, 1996 between IPC and
for 1997 Richard R. Riazzi.
*10(h)(vii) 1-3198 10(g) Executive Employment Agreement dated
Form 10-Q April 12, 1999 between IPC and
for 6/30/99 Marlene Williams.
*10(h)(viii) 1-14465 10(h) Agreement between IDACORP, Inc. and
Form 10-Q Jan B. Packwood, J. LaMont Keen,
for 9/30/99 James C. Miller, Richard Riazzi,
Darrel T. Anderson, Bryan Kearney,
Cliff N. Olson, Robert W. Stahman
and Marlene K. Williams.
*10(h)(ix)1 1-14465 10(h)(ix) IDACORP, Inc. 2000 Long-Term
Form 10-K Incentive and Compensation Plan.
for 1999
*10(i) 33-65720 10(h) Framework Agreement, dated October
1, 1984, between the State of Idaho
and IPC relating to IPC's Swan Falls
and Snake River water rights.
__________________________
1 Compensatory plan
*10(i)(i) 33-65720 10(h)(i) Agreement, dated October 25, 1984,
between the State of Idaho and IPC
relating to the agreement filed as
Exhibit 10(i).
*10(i)(ii) 33-65720 10(h)(ii) Contract to Implement, dated October
25, 1984, between the State of Idaho
and IPC relating to the agreement
filed as Exhibit 10(i).
*10(j) 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 IPC and the Twin Falls Canal
Company and the Northside Canal
Company Limited.
*10(j)(i) 33-65720 10(m)(i) Guaranty Agreement, dated February
10, 1992, between IPC and New York
Life Insurance Company, as Note
Purchaser, relating to $11,700,000
Guaranteed Notes due 2017 of Milner
Dam Inc.
12 Statement Re: Computation of Ratio
of Earnings to Fixed Charges.
(IDACORP, Inc.)
12(a) Statement Re: Computation of
Supplemental Ratio of Earnings to
Fixed Charges. (IDACORP, Inc.)
12(b) Statement Re: Computation of Ratio
of Earnings to Combined Fixed
Charges and Preferred Dividend
Requirements. (IDACORP, Inc.)
12(c) Statement Re: Computation of
Supplemental Ratio of Earnings to
Combined Fixed Charges and Preferred
Dividend Requirements. (IDACORP,
Inc.)
12(d) Statement Re: Computation of Ratio
of Earnings to Fixed Charges. (IPC)
12(e) Statement Re: Computation of
Supplemental Ratio of Earnings to
Fixed Charges. (IPC)
12(f) Statement Re: Computation of Ratio
of Earnings to Combined Fixed
Charges and Preferred Dividend
Requirements. (IPC)
12(g) Statement Re: Computation of
Supplemental Ratio of Earnings to
Combined Fixed Charges and Preferred
Dividend Requirements. (IPC)
15 Letter re: Unaudited Interim
Financial Information
27(a) Financial Data Schedule for IDACORP,
Inc.
27(b) Financial Data Schedule for IPC.
(b) Reports on Form 8- K. No reports on Form 8- K were filed during the
three-month period ended June 30, 2000.
* 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 report to be signed on its behalf
by the undersigned thereunto duly authorized.
IDACORP, Inc.
(Registrant)
Date August 4, 2000 By: /s/ J LaMont Keen
J LaMont Keen
Senior Vice President
Administration
and Chief Financial Officer
(Principal Financial Officer)
Date August 4, 2000 By: /s/ Darrel T Anderson
Darrel T Anderson
Vice President Finance
and Treasurer
(Principal Accounting Officer)
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
(Registrant)
Date August 4, 2000 By: /s/ J LaMont Keen
J LaMont Keen
Senior Vice President
Administration
and Chief Financial Officer
(Principal Financial Officer)
Date August 4, 2000 By: /s/ Darrel T Anderson
Darrel T Anderson
Vice President Finance
and Treasurer
(Principal Accounting Officer)
