Exhibit 99
IDACORP
1221 W. Idaho Street
Boise, ID 83702
August 8, 2006
FOR IMMEDIATE RELEASE
Lawrence F. Spencer, Director of Investor Relations
Phone: (208) 388-2664
lspencer@idacorpinc.com
IDACORP Announces Second Quarter 2006 Results
Second Quarter 2006 Highlights
Second quarter 2006 diluted earnings per share of $0.47 versus $0.22 in 2005
Idaho Power records $17 million increase in operating income
Hydroelectric generation increases 56 percent over last year
Idaho Power records $4.7 million after-tax benefit from sale of excess emission allowances
BOISE-IDACORP, Inc. (NYSE:IDA) today reported second quarter income of $19.9 million versus $9.5 million in 2005 and year-to-date earnings of $45.3 million compared with $32.5 million in 2005. Diluted earnings per share increased by $0.25 per share for the quarter to $0.47 per share and by $0.29 per share for the first six months to $1.06 per share.
"Increased loads as a result of warmer-than-normal temperatures, improved water conditions, and higher irrigation demand helped lift earnings over last year," said IDACORP President and Chief Executive Officer J. LaMont Keen. "In addition, second quarter results benefited from the sale of excess emission allowances."
On August 1, the Northwest River Forecast Center (NWRFC) reported 9.0 million acre-feet (maf) of water flowed 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.
Second Quarter Performance Summary
The following are key components of the change in second quarter IDACORP net income from 2005 to 2006.
Enhanced hydroelectric generating conditions factored heavily into Idaho Power's improved performance. Second quarter 2006 hydro generation was 56 percent higher than second quarter 2005. This additional hydro generation significantly reduced net power supply costs providing a seven-cents-per-diluted-share benefit, quarter-over-quarter.
General business revenues increased $8.6 million from last year's second quarter. Idaho Power's increase in general business revenues reflects the continuing growth in general business customers, warmer temperatures and two general rate increases. On June 1, 2005, annual Idaho general business rates increased 1.8 percent ($9.4 million) and on June 1, 2006, those annual customer rates increased an additional 3.2 percent ($18.1 million).
Average energy use increased in the residential and irrigation customer classes. This is highlighted by irrigation energy sales which increased 64 percent over the levels reported in the abnormally cool and wet second quarter of 2005.
Idaho Power recorded a benefit of $4.7 million after tax from the sale of excess emission allowances in accordance with a regulatory order from the Idaho Public Utilities Commission (IPUC).
On June 1, 2006, annual Idaho retail rates decreased by an average of 19.3 percent as the result of the Power Cost Adjustment (PCA). The company projects the PCA reduction will decrease the company's revenues approximately $123 million during the period June 1, 2006 through May 31, 2007.
Analysis of Earnings Per Diluted Share
The following table summarizes diluted earnings (loss) per share from each
business:
| | | | Three Months Ended | Six Months Ended |
| | | | 6/30/06 | 6/30/05 | 6/30/06 | 6/30/05 |
Continuing Operations: | | | | | |
| Idaho Power Company | $ 0.51 | $ 0.30 | $ 1.10 | $ 0.81 |
| IDACORP Energy | | 0.00 | (0.01) | 0.00 | (0.01) |
| IDACORP Financial Services | 0.05 | 0.06 | 0.10 | 0.12 |
| Ida-West Energy | | 0.02 | 0.02 | 0.03 | 0.02 |
| Holding Company | | (0.05) | (0.07) | (0.07) | (0.03) |
| | | | $ 0.53 | $ 0.30 | $ 1.16 | $ 0.91 |
| | | | | | | |
Losses From Discontinued Operations | (0.06) | (0.08) | (0.10) | (0.14) |
| | | | | | | |
Earnings Per Diluted Share | $ 0.47 | $ 0.22 | $ 1.06 | $ 0.77 |
Discontinued Operations
IdaTech and IDACOMM have been classified as discontinued operations and presented on the income statement as a single line net of tax and on the balance sheets as separate line items for current and non-current assets and liabilities held for sale. On July 20, 2006, IDACORP completed the sale of all of the outstanding common stock of IDACORP Technologies, Inc. to IdaTech UK Limited, a wholly-owned subsidiary of Investec Group Investments (UK) Limited.
2006 Outlook
The outlook for key operating and financial metrics for 2006 are:
Metric | Current Estimate (1) | Previous Estimate |
Idaho Power Company Operation & Maintenance Expense (Millions) | No Change | $250 - $260 |
Idaho Power Company Capital Expenditures (Millions) | No Change | $190 - $200 |
Idaho Power Company Hydroelectric Generation (Million MWh) (2) | 8.8 - 9.3 | 8.5 - 10.5 |
Non-regulated Subsidiary Earnings Per Share from Continuing Operations | $0.09 - $0.13 (3) | $(0.05) - $0.00 |
Effective Tax Rates: Idaho Power Company Consolidated - IDACORP (4) | No Change No Change | 38% - 42% 20% - 25% |
(1) Key operating and financial metrics will be updated quarterly.
(2) Assumes normal operating conditions and normal precipitation for the balance of the year.
(3) With the classification of the operations of IdaTech and IDACOMM as discontinued operations, the results of these operations are now excluded from the estimate of earnings from continuing operations of the non-regulated businesses. Current estimates include contributions from Ida-West Energy and IDACORP Financial netted against holding company expenses.
(4) For continuing operations.
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 12 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; 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 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 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 June 30, 2006 and 2005
(unaudited)
(Thousands of Dollars, except per share amounts)
Three Months Ended Year-To-Date
6/30/06 6/30/05 6/30/06 6/30/05
Operating Revenues:
Electric Utility:
General business........................................ $ 159,210 $ 150,583 $ 321,393 $ 296,953
Off-system sales.......................................... 75,598 38,872 179,839 71,085
Other revenues............................................. 6,040 10,253 6,890 22,538
Total electric utility revenues.................. 240,848 199,708 508,122 390,576
Other................................................................. 1,787 1,582 2,853 2,240
Total Operating Revenues..................... 242,635 201,290 510,975 392,816
Operating Expenses:
Electric Utility:
Purchased power......................................... 74,808 36,929 130,733 81,007
Fuel expense................................................ 21,954 24,369 48,923 49,465
Power cost adjustment............................... 4,600 12,415 48,067 7,998
Other operations & maintenance.............. 69,840 65,717 131,513 120,816
Gain on sale of emission allowances..... (8,126) - (8,235) -
Depreciation.................................................. 24,633 25,193 49,182 50,112
Taxes other than income taxes................. 6,329 5,302 11,900 10,529
Total electric utility expenses................. 194,038 169,925 412,083 319,927
Other................................................................. 3,046 3,229 6,863 6,255
Total Operating Expenses...................... 197,084 173,154 418,946 326,182
Operating Income (Loss):
Electric Utility................................................... 46,810 29,783 96,039 70,649
Other................................................................. (1,259) (1,647) (4,010) (4,015)
Total Operating Income.......................... 45,551 28,136 92,029 66,634
Other Income..................................................... 5,080 3,216 9,749 7,368
Losses of Unconsolidated
Equity-Method Investments.......................... (2,208) (951) (2,259) (288)
Other Expenses................................................. 2,655 1,193 4,076 2,296
Interest Expense:
Interest on long-term debt............................ 14,200 14,292 28,284 28,366
Other interest expense.................................. 1,175 810 2,204 1,282
............................. Total Interest expense 15,375 15,102 30,488 29,648
Income Before Income Taxes........................ 30,393 14,106 64,955 41,770
Income Tax Expense........................................ 7,720 1,513 15,327 3,535
Income from Continuing Operations............ 22,673 12,593 49,628 38,235
Losses from Discontinued Operations (net of tax) (2,817) (3,142) (4,296) (5,718)
Net Income......................................................... $ 19,856 $ 9,451 $ 45,332 $ 32,517
Weighted Average Common Shares
Outstanding (000's)........................................ 42,557 42,230 42,515 42,220
Basic Earnings (Loss) per Share:
Income from Continuing Operations.......... $ 0.53 $ 0.30 $ 1.17 $ 0.91
Losses from Discontinued Operations..... (0.06) (0.08) (0.10) (0.14)
Basic Earnings per Share............................ $ 0.47 $ 0.22 $ 1.07 $ 0.77
Diluted Earnings (Loss) per Share:
Income from Continuing Operations.......... $ 0.53 $ 0.30 $ 1.16 $ 0.91
Losses from Discontinued Operations..... (0.06) (0.08) (0.10) (0.14)
Diluted Earnings per Share......................... $ 0.47 $ 0.22 $ 1.06 $ 0.77
Dividends Paid per Share of Common Stock $ 0.30 $ 0.30 $ 0.60 $ 0.60
IDACORP, Inc.
Condensed Consolidated Statements of Cash Flows
For Six Months Ended June 30, 2006 and 2005
(unaudited)
(Thousands of Dollars)
Six Months Ended
6/30/06 6/30/05
Operating Activities
Net Income................................................................. $ 45,332 $ 32,517
Adjustments to reconcile net income to
net cash provided by operating activities:
Unrealized (gains) losses from energy marketing
activities............................................................ (234) 359
Depreciation and amortization................................. 60,339 61,635
Deferred income taxes and investment tax credits.... (35,056) (4,380)
Changes in regulatory assets and liabilities.............. 61,143 4,826
Undistributed earnings of subsidiaries...................... (4,607) (6,255)
Provision for uncollectible accounts......................... (133) (157)
Gain on sales of assets......................................... (7,547) -
Other non-cash adjustments to net income.............. (1,957) 13
Change in:
Accounts receivable and prepayments.................. 26,095 (4,102)
Accounts payable and other accrued liabilities...... (10,470) (21,985)
Taxes accrued................................................... 14,317 6,161
Other................................................................. (708) (2,635)
Net cash provided by operating activities.................. 146,514 65,997
Investing Activities
Additions to property, plant and equipment.................... (102,465) (90,434)
Sale of emission allowances......................................... 10,865 -
Investments in unconsolidated affiliate........................... (11,520) -
Other.......................................................................... 1,772 29,137
Net cash used in investing activities........................ (101,348) (61,297)
Financing Activities
Issuance of common stock........................................... 4,816 1,474
Issuance of long-term debt........................................... - 4,992
Retirement of long-term debt......................................... (7,901) (9,497)
Dividends on common stock......................................... (25,521) (25,326)
Change in short-term borrowings................................... (14,900) 12,530
Other.......................................................................... (145) (370)
Net cash used in financing activities........................ (43,651) (16,197)
Net increase (decrease) in cash and cash equivalents.... 1,515 (11,497)
Cash and cash equivalents at beginning of period........... 52,356 23,403
Cash and cash equivalents at end of period.................... $ 53,871 $ 11,906
IDACORP, Inc.
Condensed Consolidated Balance Sheets
As of June 30, 2006 and December 31, 2005
(unaudited)
(Thousands of Dollars)
6/30/06 12/31/05
Assets
Cash and cash equivalents.................................. $ 53,871 $ 52,356
Receivables, net of allowance.............................. 60,974 82,768
Employee notes................................................. 2,681 2,951
Energy marketing assets.................................... 13,308 23,859
Other current assets........................................... 135,710 128,913
Assets held for sale............................................ 5,085 6,673
Total current assets......................................... 271,629 297,520
Investments....................................................... 195,828 191,593
Property, plant and equipment-net........................ 2,351,683 2,294,441
Energy marketing assets - long-term.................... 11,251 22,189
Regulatory assets.............................................. 376,537 415,177
Employee notes - long-term................................ 2,563 2,862
Other assets...................................................... 113,179 114,378
Assets held for sale............................................ 27,066 25,966
Total other assets............................................ 530,596 580,572
Total Assets................................................ $ 3,349,736 $ 3,364,126
Liabilities and Shareholders' Equity
Current maturities of long-term debt...................... $ 15,949 $ 16,307
Notes payable.................................................... 45,200 60,100
Accounts payable............................................... 71,730 80,324
Energy marketing liabilities.................................. 13,937 24,093
Other current liabilities........................................ 134,126 106,845
Liabilities held for sale......................................... 3,921 5,916
Total current liabilities...................................... 284,863 293,585
Deferred income taxes........................................ 483,018 519,563
Energy marketing liabilities - long-term................. 11,251 22,189
Regulatory liabilities............................................ 372,289 345,109
Other liabilities................................................... 125,193 124,833
Liabilities held for sale......................................... 7,648 10,051
Total other liabilities......................................... 999,399 1,021,745
Long-term debt................................................... 1,016,133 1,023,545
Shareholders' equity........................................... 1,049,341 1,025,251
Total Liabilities & Shareholders' Equity........... $ 3,349,736 $ 3,364,126
Idaho Power Company Supplemental Operating Statistics
Three Months Ended Year-To-Date
6/30/06 6/30/05 6/30/06 6/30/05
Energy Use - MWh
Residential.................................. 1,023,820 954,957 2,439,487 2,282,979
Commercial................................. 872,948 866,508 1,785,315 1,754,193
Industrial..................................... 845,475 835,730 1,721,206 1,668,050
Irrigation...................................... 593,246 361,382 606,529 373,047
Total General Business................ 3,335,489 3,018,577 6,552,537 6,078,269
Off-System Sales......................... 2,342,532 1,037,100 4,286,482 1,682,273
Total........................................ 5,678,021 4,055,677 10,839,019 7,760,542
Revenue ($000's)
Residential.................................. $ 64,005 $ 60,599 $ 152,442 $ 139,375
Commercial................................. 40,511 41,540 83,541 81,432
Industrial..................................... 27,006 28,101 56,893 55,114
Irrigation...................................... 27,688 20,343 28,517 21,032
Total General Business................ 159,210 150,583 321,393 296,953
Off-System Sales......................... 75,598 38,872 179,839 71,085
Total........................................ $ 234,808 $ 189,455 $ 501,232 $ 368,038
Customers - - Period End
Residential.................................. 387,206 372,634
Commercial................................. 58,862 57,030
Industrial..................................... 132 129
Irrigation...................................... 18,197 18,044
Total........................................ 464,397 447,837
