Exhibit 99
IDACORP
1221 W. Idaho Street
Boise, ID 83702
November 2, 2006
FOR IMMEDIATE RELEASE
Lawrence F. Spencer, Director of Investor Relations
Phone: (208) 388-2664
lspencer@idacorpinc.com
IDACORP Announces Third Quarter 2006 Results
Third Quarter 2006 Highlights
• Third quarter diluted earnings per share of $1.03 versus $0.56 in 2005
• $0.27 per diluted share after-tax gain on sale of IDACORP Technologies
• Idaho Power records $9 million improvement in operating income -- diluted earnings per share up $0.21
BOISE--IDACORP, Inc. (NYSE:IDA) today reported third quarter net income of $44.0 million versus $23.6 million in 2005 and year-to-date earnings of $89.3 million compared with $56.1 million in 2005. Diluted earnings per share increased by $0.47 per share for the quarter to $1.03 per share and by $0.76 per share for the first nine months to $2.09 per share.
"Our third quarter performance demonstrates progress in implementing our back-to-basics strategy," said IDACORP President and Chief Executive Officer J. LaMont Keen. "We continue to divest ourselves of non-core businesses and are focusing efforts and resources on the challenges and long-term opportunities provided by Idaho Power's growing customer base."
Third Quarter Performance Summary
The following are key components of the increase in third quarter IDACORP net income from 2005 to 2006:
• IDACORP recorded a net of tax gain of $11.8 million, or $0.27 per diluted share, from the sale of IDACORP Technologies.
• Idaho Power earnings increased from $21.0 million to $30.4 million.
o Increased sales attributable to continued customer growth and higher usage due to warmer weather raised revenues $7.9 million. Customer numbers grew by approximately 15,700, or 3.5 percent, and cooling degree days increased 9.9 percent quarter over quarter. General business revenues decreased $35.7 million due to changes in rates, effective June 1*.
o Other revenues increased $7.5 million due to the expiration in the second quarter 2006 of certain regulatory amortizations.
o Net power supply expenses** increased $18.9 million as a result of higher fuel and fuel transportation costs, and the need to make power purchases during a period of high prices prompted by warmer than normal weather, especially in July.
o The Power Cost Adjustment (PCA) mechanism resulted in a $55 million credit for the quarter. Net power supply costs in excess of the amounts in the annual PCA forecast account for $51 million of the $55 million credit with the remainder representing the amortization of prior year authorized balances.
o Also, during the third quarter, other operations and maintenance expenses decreased in part due to a $3 million court judgment in Sept. reversing accrued Federal Energy Regulatory Commission fees. Taxes other than income taxes were lower due to property tax relief enacted by the Idaho Legislature in August 2006.
* A 3.2 percent increase in Idaho base rates offset by a 19.3 percent reduction attributable to the annual Power Cost Adjustment.
** Fuel and purchased power expense less off-system sales.
Analysis of Earnings per Diluted Share
The following table summarizes diluted earnings (loss) per share from each
business:
| | | | Three Months Ended | Nine Months Ended |
| | | | 9/30/06 | 9/30/05 | 9/30/06 | 9/30/05 |
Income from Continuing Operations: | | | | | |
| Idaho Power Company | $ 0.71 | $ 0.50 | $ 1.81 | $ 1.31 |
| IDACORP Energy | | 0.00 | 0.00 | 0.00 | (0.01) |
| IDACORP Financial Services | 0.05 | 0.06 | 0.15 | 0.18 |
| Ida-West Energy | | 0.03 | 0.02 | 0.06 | 0.04 |
| Holding Company | | (0.03) | 0.03 | (0.10) | 0.00 |
| | | | 0.76 | 0.61 | 1.92 | 1.52 |
| | | | | | | |
Earnings (Losses) From Discontinued Operations | 0.27 | (0.05) | 0.17 | (0.19) |
| | | | | | | |
Earnings Per Diluted Share | $ 1.03 | $ 0.56 | $ 2.09 | $ 1.33 |
| | | | | | | | |
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) (2) | $210 - $215 | $190 - $200 |
Idaho Power Company Hydroelectric Generation (Million MWh) (3) | 9.0 - 9.2 | 8.8 - 9.3 |
Non-regulated Subsidiary Earnings Per Share from Continuing Operations (4) | $0.15 - $0.17 | $0.09 - $0.13 |
Effective Tax Rates: Idaho Power Company Consolidated - IDACORP (5) | No Change No Change | 38% - 42% 20% - 25% |
(1) Key operating and financial metrics will be updated quarterly.
(2) Increase in estimated capital expenditures due to expenditures related to gas peaking facilities, land purchases associated with relicensing efforts, and increased customer connection costs.
(3) Assumes normal operating conditions and normal precipitation for the balance of the year.
(4) Estimates include contributions from Ida-West Energy and IDACORP Financial netted against holding company expenses. Increase in estimate due to better than expected contributions from Ida-West Energy as a result of improved water and operating conditions.
(5) 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.
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, transmission and distribution 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 medical benefits 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 September 30, 2006 and 2005
(unaudited)
(Thousands of Dollars, except per share amounts)
| Three Months Ended | | Year-To-Date |
| 9/30/2006 | | 9/30/2005 | | 9/30/2006 | | 9/30/2005 |
Operating Revenues: | | | | | | | |
Electric utility: | | | | | | | |
General business | $ | 179,411 | | $ | 207,237 | | $ | 500,803 | | $ | 504,189 |
Off-system sales | 39,692 | | 34,105 | | 219,531 | | 105,189 |
Other revenues | 9,696 | | 2,890 | | 16,587 | | 25,429 |
Total electric utility revenues | 228,799 | | 244,232 | | 736,921 | | 634,807 |
Other | 1,733 | | 1,675 | | 4,586 | | 3,915 |
Total Operating Revenues | 230,532 | | 245,907 | | 741,507 | | 638,722 |
Operating Expenses: | | | | | | | |
Electric utility: | | | | | | | |
Purchased power | 98,926 | | 81,396 | | 229,659 | | 162,403 |
Fuel expense | 34,933 | | 28,018 | | 83,856 | | 77,483 |
Power cost adjustment | (54,995) | | (9,670) | | (6,928) | | (1,673) |
Other operations & maintenance | 62,395 | | 64,292 | | 193,909 | | 185,108 |
Gain on sale of emission allowances | (22) | | - | | (8,258) | | - |
Depreciation | 25,289 | | 25,726 | | 74,471 | | 75,838 |
Taxes other than income taxes | 4,057 | | 5,115 | | 15,957 | | 15,644 |
Total electric utility operations | 170,583 | | 194,877 | | 582,666 | | 514,803 |
Other | 3,293 | | 3,125 | | 10,157 | | 9,380 |
Total Operating Expenses | 173,876 | | 198,002 | | 592,823 | | 524,183 |
Operating Income (Loss): | | | | | | | |
Electric utility | 58,216 | | 49,355 | | 154,255 | | 120,004 |
Other | (1,560) | | (1,450) | | (5,571) | | (5,465) |
Total Operating Income | 56,656 | | 47,905 | | 148,684 | | 114,539 |
Other Income | 4,431 | | 3,610 | | 14,181 | | 10,978 |
Income (Losses) of Unconsolidated | | | | | | | |
Equity-Method Investments | (444) | | 872 | | (2,703) | | 584 |
Other Expenses | 2,669 | | 1,759 | | 6,745 | | 4,055 |
Interest Expense: | | | | | | | |
Interest on long-term debt | 14,241 | | 14,317 | | 42,525 | | 42,683 |
Other interest expense | 549 | | 598 | | 2,753 | | 1,879 |
Total interest expense | 14,790 | | 14,915 | | 45,278 | | 44,562 |
Income Before Income Taxes | 43,184 | | 35,713 | | 108,139 | | 77,484 |
Income Tax Expense | 10,692 | | 9,752 | | 26,019 | | 13,287 |
Income from Continuing Operations | 32,492 | | 25,961 | | 82,120 | | 64,197 |
Income (Losses) from Discontinued | | | | | | | |
Operations (net of tax) | 11,497 | | (2,344) | | 7,201 | | (8,062) |
Net Income | $ | 43,989 | | $ | 23,617 | | $ | 89,321 | | $ | 56,135 |
Weighted Average Common Shares | | | | | | | |
Outstanding - Basic (000's) | 42,678 | | 42,287 | | 42,569 | | 42,245 |
Basic Earnings (Loss) per Share: | | | | | | | |
Income from Continuing Operations | $ | 0.76 | | $ | 0.61 | | $ | 1.93 | | $ | 1.52 |
Earnings (Losses) - Discontinued
Operations | 0.27 | | (0.05) | | 0.17 | | (0.19) |
Basic Earnings per Share | $ | 1.03 | | $ | 0.56 | | $ | 2.10 | | $ | 1.33 |
Weighted Average Common Shares | | | | | | | |
Outstanding - Diluted (000's) | 42,863 | | 42,380 | | 42,710 | | 42,318 |
Diluted Earnings (Loss) per Share: | | | | | | | |
Income from Continuing Operations | $ | 0.76 | | $ | 0.61 | | $ | 1.92 | | $ | 1.52 |
Earnings (Losses) - Discontinued
Operations | 0.27 | | (0.05) | | 0.17 | | (0.19) |
Diluted Earnings per Share | $ | 1.03 | | $ | 0.56 | | $ | 2.09 | | $ | 1.33 |
Dividends Paid per Share of Common
Stock | $ | 0.30 | | $ | 0.30 | | $ | 0.90 | | $ | 0.90 |
IDACORP, Inc.
Condensed Consolidated Statements of Cash Flows
For Nine Months Ended September 30, 2006 and 2005
(unaudited)
(Thousands of Dollars)
| Nine Months Ended |
| 9/30/06 | | 9/30/05 |
Operating Activities: | | | |
Net income | $ | 89,321 | | $ | 56,135 |
Adjustments to reconcile net income to net | | | |
cash provided by operating activities: | | | |
Unrealized (gains) losses from energy | | | |
marketing activities | (234) | | 71 |
Depreciation and amortization | 90,928 | | 93,069 |
Deferred income taxes and investment tax credits | (16,467) | | (8,030) |
Changes in regulatory assets and liabilities | 6,111 | | 2,974 |
Undistributed earnings of subsidiaries | (7,944) | | (12,027) |
Provision for uncollectible accounts | 42 | | (167) |
Gain on sales of assets | (25,242) | | (1,490) |
Other non-cash adjustments to net income | (2,400) | | - |
Change in: | | | |
Accounts receivables and prepayments | 23,569 | | (8,875) |
Accounts payable and other accrued liabilities | (14,252) | | (31,518) |
Taxes accrued | 2,720 | | 19,774 |
Other | 23,696 | | 11,267 |
| | | |
Net cash provided by operating activities | 169,848 | | 121,183 |
| | | |
Investing Activities: | | | |
Additions to property, plant and equipment | (168,185) | | (132,974) |
Sale of ITI | 21,469 | | - |
Sale of emission allowances | 11,323 | | - |
Investments in unconsolidated affiliates | (15,370) | | - |
Other | 4,580 | | 32,449 |
| | | |
Net cash used in investing activities | (146,183) | | (100,525) |
| | | |
Financing Activities | | | |
Issuance of common stock | 9,174 | | 3,661 |
Issuance of long-term debt | - | | 64,992 |
Retirement of long-term debt | (10,993) | | (76,166) |
Dividends on common stock | (38,449) | | (38,001) |
Change in short term borrowings | (27,410) | | 19,330 |
Other | 23 | | (4,564) |
| | | |
Net cash used in financing activities | (67,655) | | (30,748) |
| | | |
Net decrease in cash and cash equivalents | (43,990) | | (10,090) |
| | | |
Cash and cash equivalents at beginning of period | 52,356 | | 23,403 |
| | | |
Cash and cash equivalents at end of period | $ | 8,366 | | $ | 13,313 |
| | | |
IDACORP, Inc.
Condensed Consolidated Balance Sheets
As of September 30, 2006 and December 31, 2005
(unaudited)
(Thousands of Dollars)
| 9/30/06 | | 12/31/05 |
Assets | |
Cash and cash equivalents | $ | 8,366 | | $ | 52,356 |
Receivables, net of allowance | 69,163 | | 82,768 |
Employee notes | 2,668 | | 2,951 |
Energy marketing assets | 11,590 | | 23,859 |
Other current assets | 123,889 | | 128,913 |
Assets held for sale | 3,556 | | 6,673 |
Total current assets | 219,232 | | 297,520 |
| | | |
Investments | 199,916 | | 191,593 |
Property, Plant and Equipment - net | 2,383,975 | | 2,294,441 |
| | | |
Energy marketing assets - long-term | 2,768 | | 22,189 |
Regulatory assets | 371,026 | | 415,177 |
Employee notes -long-term | 2,454 | | 2,862 |
Other assets | 112,202 | | 114,378 |
Assets held for sale | 19,852 | | 25,966 |
Total other assets | 508,302 | | 580,572 |
| | | |
Total Assets | $ | 3,311,425 | | $ | 3,364,126 |
| | | |
Liabilities and Shareholders' Equity | |
Current maturities of long-term debt | $ | 15,364 | | $ | 16,307 |
Notes payable | 32,690 | | 60,100 |
Accounts payable | 66,448 | | 80,324 |
Energy marketing liabilities | 11,945 | | 24,093 |
Other current liabilities | 125,231 | | 106,845 |
Liabilities held for sale | 1,536 | | 5,916 |
Total current liabilities | 253,214 | | 293,585 |
| | | |
Deferred income taxes | 497,661 | | 519,563 |
Energy marketing liabilities - long-term | 2,829 | | 22,189 |
Regulatory liabilities | 316,807 | | 345,109 |
Other liabilities | 132,998 | | 124,833 |
Liabilities held for sale | 7,666 | | 10,051 |
Total other liabilities | 957,961 | | 1,021,745 |
| | | |
Long-Term Debt | 1,013,692 | | 1,023,545 |
Shareholders' equity | 1,086,558 | | 1,025,251 |
| | | |
Total Liabilities & Shareholders'
Equity | $ | 3,311,425 | | $ | 3,364,126 |
| | | |
Idaho Power Company Supplemental Operating Statistics
| Three Months Ended | | Year-To-Date |
| 9/30/06 | | 9/30/05 | | 9/30/06 | | 9/30/05 |
Energy Use - MWh | | | | | | | | | | | |
| | | | | | | | | | | |
| Residential | | 1,249,496 | | | 1,141,236 | | | 3,688,983 | | | 3,424,215 |
| Commercial | | 1,008,865 | | | 964,801 | | | 2,794,180 | | | 2,718,994 |
| Industrial | | 875,275 | | | 879,766 | | | 2,596,481 | | | 2,547,816 |
| Irrigation | | 986,535 | | | 1,012,470 | | | 1,593,064 | | | 1,385,517 |
| Total
General
Business | | 4,120,171 | | | 3,998,273 | | | 10,672,708 | | | 10,076,542 |
| Off-System
Sales | | 790,435 | | | 586,776 | | | 5,076,917 | | | 2,269,049 |
| | Total | | 4,910,606 | | | 4,585,049 | | | 15,749,625 | | | 12,345,591 |
| | | | | | | | | | | |
Revenue ($000's) | | | | | | | | | | |
| | | | | | | | | | | |
| Residential | $ | 72,550 | | $ | 76,131 | | $ | 224,992 | | $ | 215,506 |
| Commercial | | 41,700 | | | 48,115 | | | 125,241 | | | 129,547 |
| Industrial | | 24,055 | | | 31,780 | | | 80,947 | | | 86,893 |
| Irrigation | | 41,106 | | | 51,211 | | | 69,623 | | | 72,243 |
| Total
General
Business | | 179,411 | | | 207,237 | | | 500,803 | | | 504,189 |
| Off-System Sales | | 39,692 | | | 34,105 | | | 219,531 | | | 105,189 |
| | Total | $ | 219,103 | | $ | 241,342 | | $ | 720,334 | | $ | 609,378 |
| | | | | | | | | | | | | |
Customers - Period End | | | | | | | | | |
| | | | | | | | | | | |
| Residential | | 390,380 | | | 376,784 | | | | | | |
| Commercial | | 59,389 | | | 57,501 | | | | | | |
| Industrial | | 130 | | | 131 | | | | | | |
| Irrigation | | 18,230 | | | 18,015 | | | | | | |
| | Total | | 468,129 | | | 452,431 | | | | | | |
| | | | | | | | | | | | | |
