Exhibit 99
IDACORP
1221 W. Idaho Street
Boise, Idaho 83702
May 9, 2006
FOR IMMEDIATE RELEASE
Lawrence F. Spencer, Director of Investor Relations
Phone: (208) 388-2664
lspencer@idacorpinc.com
IDACORP Announces First Quarter 2006 Results
First Quarter 2006 Highlights
First quarter 2006 earnings per share of $0.60 versus $0.55 in 2005
Idaho Power operating income up by $8 million over last year
Hydroelectric generation double first quarter 2005
Idaho general rate case and SO2 emission allowance proposed settlements
BOISE--IDACORP, Inc. (NYSE:IDA) today reported first quarter 2006 net income
of $25.5 million ($0.60 per share) as compared with $23.1 million ($0.55 per share) in the first quarter 2005. Idaho Power Company, IDACORP's principal operating subsidiary, contributed $0.59 per share in this year's first quarter as compared with $0.51 last year.
"We had a good quarter. Abundant water in the rivers has doubled the output from Idaho Power's hydro plants compared to a year ago, lowering the cost of production and tripling surplus sales for the benefit of customers and shareowners alike," said IDACORP President and Chief Executive Officer Jan B. Packwood. "In addition, all parties to the utility's settlement discussions for the general rate case and the sharing of the proceeds from the sale of surplus emission allowances have reached agreement and submitted stipulations for consideration by the Idaho Public Utilities Commission."
First Quarter Performance Summary
The key components of the change in first quarter IDACORP net income from 2005 to 2006 are:
After six years of below normal water conditions, Idaho Power's hydroelectric generation doubled to 2.8 million megawatt-hours from 1.4 million. Hydroelectric generation contributed 62 percent of the company's total system generation as compared with 44 percent in 2005. Idaho Power was able to sell surplus energy, which tripled off-system sales revenue and volumes and significantly reduced net power supply costs. This resulted in a seven-cents-per-share benefit quarter-over-quarter.
Idaho Power's results also reflect the continued benefits of growth in general business customers, cooler temperatures, and the rate increase that went into effect in June 2005. Customer growth improved revenues by $6 million while cooler temperatures and higher retail rates accounted for $2 million and $8 million of the increase, respectively.
IDACORP's non-regulated subsidiaries, including the holding company, contributed one cent to earnings per share as compared to four cents per share in the first quarter 2005. Results in both periods reflect the effect of intra-period income tax allocations recorded at the holding company.
Regulatory Issues Pending Before the Idaho Public Utilities Commission (IPUC)
On February 27, Idaho Power, the IPUC staff and representatives of customer groups filed a stipulation in the Idaho general rate case proposing an $18.1 million, or 3.2 percent, increase in annual Idaho general business revenues effective June 1, 2006.
On April 7, Idaho Power, the IPUC staff and other parties agreed to a settlement of all issues relating to the ratemaking treatment of the net proceeds from the sale of excess sulfur dioxide emission allowances. As proposed, this would allow Idaho Power to record a $4.7 million after-tax benefit in the second quarter, 2006.
On April 12, Idaho Power submitted its annual Power Cost Adjustment filing with the Idaho Public Utilities Commission which, if approved, will result in a $123.5 million annual reduction to current rates of Idaho Power's Idaho retail customers beginning June 1, 2006.
Analysis of Earnings Per Share
The following table summarizes earnings (loss) per share from each
business:
| Three Months Ended |
Subsidiary | 3/31/06 | 3/31/05 |
| | |
Idaho Power Company | $ 0.59 | $ 0.51 |
IDACORP Energy | 0.00 | (0.01) |
IDACORP Financial Services | 0.05 | 0.06 |
Ida-West Energy | 0.01 | 0.00 |
IdaTech | (0.05) | (0.05) |
IDACOMM | 0.01 | 0.00 |
Holding Company | (0.01) | 0.04 |
| $ 0.60 | $ 0.55 |
2006 Outlook
The May 7, 2006, hydrological survey shows Snake River Basin snow pack levels at 112 percent of average. The Northwest River Forecast Center (NWRFC) currently projects 9.0 million acre-feet (maf) of water will flow into Brownlee Reservoir during the April-through-July 2006 period. The NWRFC's 30-year average measured inflow into Brownlee is 6.3 maf during the period. In 2005, April-July inflows were 3.6 maf.
The projected key operating and financial metrics for 2006 are:
Metric | Current Estimate (*) |
Idaho Power Company Operation & Maintenance Expense (Millions) | $250-$260 |
Idaho Power Company Capital Expenditures (Millions) | $190-$200 |
Idaho Power Company Hydroelectric Generation (Million MWh) | 8.5-10.5 |
Non-regulated Subsidiary Earnings Per Share from Continuing Operations | $(0.05)-$0.00 |
Effective Tax Rates: Idaho Power Company Consolidated - IDACORP | 38%-42% 20%-25% |
(*) Key operating and financial metrics will be updated quarterly.
Web Cast / Conference Call
The company will hold an analyst conference call today at 2:30 p.m. Mountain
Time (4:30 p.m. Eastern Time). All parties interested in listening may do so through a live Web cast. Details of the conference call logistics are posted on the company's Web site (http://www.idacorpinc.com). A replay of the conference call will be available on the company's Web site for a period of twelve months.
Background Information / Safe Harbor Statement
Boise, Idaho-based IDACORP, formed in 1998, is a holding company comprised of Idaho Power
Company, a regulated electric utility; IDACORP Financial, a holder of affordable housing projects and other real estate investments; IdaTech, a developer of integrated fuel cell systems; IDACOMM, a provider of telecommunication services and commercial Internet services; and Ida-West Energy, an operator of small hydroelectric generation projects that satisfy the requirements of the Public Utility Regulatory Policies Act of 1978.
Certain statements contained in this news release, including statements with respect to future
earnings, ongoing operations, and financial conditions, are "forward-looking statements" within the meaning of federal securities laws. Although IDACORP and Idaho Power believe that the expectations and assumptions reflected in these forward-looking statements are reasonable, these statements involve a number of risks and uncertainties, and actual results may differ materially from the results discussed in the statements. Factors that could cause actual results to differ materially from the forward-looking statements include: changes in governmental policies, including new interpretations of existing policies, and regulatory actions and regulatory audits, including those of the Federal Energy Regulatory Commission, the Idaho Public Utilities Commission, the Oregon Public Utility Commission and the Internal Revenue Service with respect to allowed rates of return, industry and rate structure, day-to-day business operations, acquisition and disposal of assets and facilities, operation and construction of plant facilities, relicensing of hydroelectric projects, recovery of purchased power expenses, recovery of other capital investments, present or prospective wholesale and retail competition (including but not limited to retail wheeling and transmission costs) and other refund proceedings; changes arising from the recently enacted Energy Policy Act of 2005; litigation and regulatory proceedings, including those resulting from the energy situation in the western United States, and settlements that influence business and profitability; changes in and compliance with environmental, endangered species and safety laws and policies; weather variations affecting hydroelectric generating conditions and customer energy usage; over-appropriation of surface and groundwater in the Snake River Basin resulting in reduced generation at hydroelectric facilities; construction of power generating facilities including inability to obtain required governmental permits and approvals, and risks related to contracting, construction and start-up; operation of power generating facilities including breakdown or failure of equipment, performance below expected levels, competition, fuel supply, including availability, transportation and prices, and transmission; impacts from the potential formation of a regional transmission organization and the recent dissolution of Grid West; population growth rates and demographic patterns; market demand and prices for energy, including structural market changes; changes in operating expenses and capital expenditures and fluctuations in sources and uses of cash; results of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by factors such as credit ratings and general economic conditions; actions by credit rating agencies, including changes in rating criteria and new interpretations of existing criteria; homeland security, natural disasters, acts of war or terrorism; market conditions and technological developments that could affect the operations and prospects of IDACORP's subsidiaries or their competitors; increasing health care costs and the resulting effect on health insurance premiums paid for employees; performance of the stock market and the changing interest rate environment, which affect the amount of required contributions to pension plans, as well as the reported costs of providing pension and other postretirement benefits; increasing costs of insurance, changes in coverage terms and the ability to obtain insurance; changes in tax rates or policies, interest rates or rates of inflation; adoption of or changes in critical accounting policies or estimates; and new accounting or Securities and Exchange Commission requirements, or new interpretation or application of existing requirements. Any forward-looking statement speaks only as of the date on which such statement is made. 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.
IDACORP, Inc.
Condensed Consolidated Statements of Income
For Periods Ended March 31, 2006 and 2005
(unaudited)
(Thousands of Dollars, except per share amounts)
Three Months Ended
3/31/06 3/31/05
Operating Revenues:
Electric Utility:
General business............................................ $ 162,183 $ 146,370
Off-system sales............................................. 104,241 32,212
Other revenues................................................ 850 12,286
Total electric utility revenues.......................... 267,274 190,868
Other................................................................. 6,367 5,314
Total Operating Revenues.............................. 273,641 196,182
Operating Expenses:
Electric Utility:
Purchased power............................................. 55,925 44,078
Fuel expense.................................................. 26,969 25,096
Power cost adjustment.................................... �� 43,467 (4,417)
Other operations & maintenance....................... 61,564 55,098
Depreciation.................................................... 24,549 24,919
Taxes other than income taxes......................... 5,571 5,227
Total electric utility expenses........................ 218,045 150,001
Other:
Expense......................................................... 11,799 11,284
Total Operating Expenses............................. 229,844 161,285
Operating Income (Loss):
Electric Utility.................................................... 49,229 40,867
Other................................................................. (5,432) (5,970)
Total Operating Income................................. 43,797 34,897
Other Income..................................................... 4,689 4,273
Earnings (Losses) of Unconsolidated
Equity-Method Investments.............................. (51) 663
Other Expense................................................... 1,421 1,103
Interest Expense:
Interest on long-term debt.................................... 14,084 14,075
Other interest..................................................... 1,090 455
Total Interest................................................ 15,174 14,530
Income Before Income Taxes................................ 31,840 24,200
Income Tax Expense............................................ 6,364 1,134
Net Income ......................................................... $ 25,476 $ 23,066
Weighted Average Common Shares
Outstanding (000's)........................................... 42,473 42,210
Earnings per Share of Common Stock
Basic and diluted................................................ $ 0.60 $ 0.55
Dividends Paid per Share of Common Stock..... $ 0.30 $ 0.30
IDACORP, Inc.
Condensed Consolidated Statements of Cash Flows
For Three Months Ended March 31, 2006 and 2005
Summary Financial Information
(unaudited)
(Thousands of Dollars)
Three Months Ended
3/31/2006 3/31/2005
Operating Activities
Net Income................................................................. $ 25,476 $ 23,066
Adjustments to reconcile net income to
net cash provided by operating activities:
Unrealized losses from energy marketing activities... - 279
Depreciation and amortization................................. 30,595 30,611
Deferred taxes and investment tax credits................ (26,912) 2,644
Changes in regulatory assets................................. 50,420 (7,873)
Undistributed earnings of subsidiaries...................... (3,413) (3,021)
Provision for uncollectible accounts......................... 42 (479)
Other non-cash adjustments to net income.............. (1,055) -
Change in:
Receivables and prepayments............................. (20,725) 10,795
Accounts payable and other accrued liabilities...... (28,317) (26,586)
Taxes accrued................................................... 24,691 1,930
Other................................................................. 15,462 12,231
Net cash provided by operating activities.................. 66,264 43,597
Investing Activities
Additions to property, plant and equipment.................... (48,967) (40,725)
Sale of emission allowances......................................... 9,921 -
Investments in unconsolidated affiliates......................... (7,820) -
Other.......................................................................... 1,662 33,268
Net cash used in investing activities........................ (45,204) (7,457)
Financing Activities
Issuance of common stock........................................... 2,793 -
Retirement of long-term debt......................................... (2,054) (2,832)
Dividends on common stock......................................... (12,766) (12,665)
Increase (decrease) in short-term borrowings................. (300) 17,430
Other.......................................................................... (201) (92)
Net cash provided by (used in) financing activities..... (12,528) 1,841
Net increase in cash and cash equivalents..................... 8,532 37,981
Cash and cash equivalents at beginning of period........... 52,356 23,403
Cash and cash equivalents at end of period.................... $ 60,888 $ 61,384
IDACORP, Inc.
Condensed Consolidated Balance Sheets
As of March 31, 2006 and December 31, 2005
Summary Financial Information
(unaudited)
(Thousands of Dollars)
3/31/06 12/31/05
Assets
Cash and cash equivalents.................................. $ 60,888 $ 52,356
Receivables, net of allowance.............................. 109,723 87,029
Employee notes................................................. 2,809 2,951
Energy marketing assets.................................... 11,873 23,859
Other current assets........................................... 124,537 131,325
Total current assets......................................... 309,830 297,520
Investments....................................................... 199,190 191,623
Property, plant and equipment-net........................ 2,336,493 2,314,259
Energy marketing assets - long-term.................... 14,068 22,189
Regulatory assets.............................................. 380,323 415,177
Employee notes - long-term................................ 2,597 2,862
Other assets...................................................... 120,350 120,496
Total other assets............................................ 517,338 560,724
Total Assets................................................ $ 3,362,851 $ 3,364,126
Liabilities and Shareholders' Equity
Current maturities of long-term debt...................... $ 16,787 $ 16,307
Notes payable.................................................... 59,800 60,100
Accounts payable............................................... 51,448 83,744
Energy marketing liabilities.................................. 12,577 24,093
Other current liabilities........................................ 147,714 109,341
Total current liabilities...................................... 288,326 293,585
Deferred income taxes........................................ 494,642 521,855
Energy marketing liabilities - long-term................. 14,068 22,189
Regulatory liabilities............................................ 370,703 345,109
Other liabilities................................................... 132,687 132,557
Total other liabilities......................................... 1,012,100 1,021,710
Long-term debt................................................... 1,021,103 1,023,580
Shareholders' equity........................................... 1,041,322 1,025,251
Total Liabilities & Shareholders' Equity........... $ 3,362,851 $ 3,364,126
Idaho Power Company Supplemental Operating Statistics
Three Months Ended
3/31/06 3/31/05
Energy Use - MWh
Residential 1,415,666 1,328,022
Commercial 912,368 887,685
Industrial 875,731 832,320
Irrigation 13,283 11,665
Total General Business 3,217,048 3,059,692
Off-System Sales 1,943,950 645,173
Total........................................... 5,160,998 3,704,865
Revenue ($000's)
Residential $ 88,436 $ 78,776
Commercial 43,030 39,892
Industrial 29,888 27,013
Irrigation 829 689
Total General Business 162,183 146,370
Off-System Sales 104,241 32,212
Total........................................... $ 266,424 $ 178,582
Customers - - Period End
Residential 384,056 368,936
Commercial 58,387 56,592
Industrial 131 126
Irrigation 17,940 17,805
Total........................................... 460,514 443,459
