Exhibit 99
IDACORP
1221 W. Idaho Street
Boise, ID 83702
February 15, 2007
FOR IMMEDIATE RELEASE
Lawrence F. Spencer, Director of Investor Relations
Phone: (208) 388-2664
lspencer@idacorpinc.com
IDACORP Announces Year-End and Fourth Quarter 2006 Results
2006 Year-End Highlights
• IDACORP net income of $107 million or $2.51 per diluted share versus $64 million or $1.50 per diluted share in
2005
o $0.27 per diluted share after-tax gain on sale of IDACORP Technologies
• Idaho Power net income of $2.20 per diluted share versus $1.70 per diluted share in 2005
o $0.19 per diluted share benefit from Internal Revenue Service (IRS) 2001-2003 exam settlement
o $0.11 per diluted share after-tax gain on sale of excess SO2 emission allowances
Fourth Quarter 2006 Highlights
• IDACORP diluted earnings per share of $0.42 versus $0.18 in 2005
• Idaho Power records net income of $0.39 per diluted share, same as 2005
o $0.16 per diluted share benefit from IRS 2001-2003 exam settlement
BOISE--IDACORP, Inc. (NYSE:IDA) today reported fourth quarter net income of $18 million versus $8 million in 2005 and 2006 net earnings of $107 million compared with $64 million in 2005. Fourth quarter diluted earnings per share increased by $0.24 per share from the fourth quarter 2005 to $0.42 per share and year-to-date diluted earnings per share increased by $1.01 per share from last year to $2.51 per share.
"For IDACORP, 2006 was a year driven by improved operating results at Idaho Power Company combined with benefits from the sale of IDACORP Technologies, one of our non-core subsidiaries," said President and Chief Executive Officer J. LaMont Keen. "Idaho Power earnings were enhanced by increased sales, an increase in base rates in June, the sale of excess sulfur dioxide emission allowances and a fourth quarter settlement with the IRS regarding prior year tax returns. In 2007, we are focused on managing the increased capital investments required to support our growing customer base and reducing the regulatory lag inherent in our current growth cycle. It also appears we may be operating with below normal hydroelectric conditions based upon snow pack accumulation to date."
Analysis of Earnings per Diluted Share
The following table summarizes diluted earnings (losses) per share from each business:
| | | | Three Months Ended | | Twelve Months Ended |
| | | | 12/31/06 | | 12/31/05 | | 12/31/06 | | 12/31/05 |
Earnings (Losses) From Continuing Operations | | | | | | | | | |
| Idaho Power Company | $ 0.39 | | $ 0.39 | | $ 2.20 | | $ 1.70 |
| IDACORP Energy | | 0.00 | | 0.13 | | 0.00 | | 0.12 |
| IDACORP Financial Services | 0.07 | | 0.07 | | 0.22 | | 0.26 |
| Ida-West Energy | | 0.00 | | 0.02 | | 0.06 | | 0.06 |
| Holding Company | | (0.04) | | (0.10) | | (0.14) | | (0.12) |
| | | | 0.42 | | 0.51 | | 2.34 | | 2.02 |
Earnings (Losses) From Discontinued Operations | 0.00 | | (0.33) | | 0.17 | | (0.52) |
| | | | | | | | | | |
Earnings Per Diluted Share | $ 0.42 | | $ 0.18 | | $ 2.51 | | $ 1.50 |
| | | | | | | | | | | | | | |
The following table details the key components of year-to-year change in IDACORP diluted earnings per share:
Diluted Earnings Per Share Reconciliation - 2005-2006 Per
Diluted Share |
| | |
IDACORP 2005 earnings per diluted share | $1.50 | |
| | |
Idaho Power Company | | |
Benefit from increased energy sales | 0.34 | |
Benefit from improved margin | 0.25 | |
Change in other revenue related to transmission from 2005 | (0.08) | |
Increase in other operation & maintenance expenses related to salary and benefits | (0.12) | |
Increase in other operation & maintenance expenses | (0.19) | |
Increase in excess SO2 emission allowance sale gains | 0.10 | |
Settlement of 2001-2003 federal income tax returns in 2006 | 0.19 | |
| | |
| | |
Non-regulated Activity | | |
Change in earnings from discontinued operations | 0.69 | |
Change in allowance for bad debt at IDACORP Energy recorded in 2005 | (0.13) | |
| | |
All other activity-net | (0.04) | |
| | |
IDACORP 2006 earnings per diluted share | $2.51 | |
2006 Full Year Performance Summary
Idaho Power Company
• Increased energy sales at Idaho Power contributed $15 million after-tax to earnings. Idaho Power's 2006 general business customers increased by 14,633 (3.2 percent) from 2005. The increase in electricity usage was primarily a result of record electricity demand during an unusually warm period in May, June, and July.
• Improved operating margins contributed $11 million after-tax to earnings, largely due to improved hydroelectric generating conditions and a net 1.0 percent base rate increase effective June 1, 2006.
• Other Operations and Maintenance (O&M) expense at Idaho Power reduced earnings by $9 million after-tax compared to the prior year. This increase in expense is primarily due to higher labor-related expenses, higher thermal operations and maintenance costs.
• Idaho Power recorded an after-tax benefit of $5 million from the sale of excess SO2 emission allowances.
• Income taxes in 2006 reflect a net $8.1 million tax benefit from the settlement of all non-263A (uniform capitalization) issues from the 2001-2003 IRS exam.
Non-regulated Activity
• During 2006, IDACORP sold its fuel cell technology subsidiary IDACORP Technologies and entered into an agreement to sell its telecommunications subsidiary, IDACOMM. The operating results of these businesses have been separately classified and reported as discontinued operations. IDACORP recorded a net-of-tax gain of $12 million ($0.27 per diluted share) from the sale of IDACORP Technologies in 2006. The gain from the sale partially offset by the operating results of both IDACOMM and IDACORP Technologies provided a net benefit of $0.17 per diluted share compared to a loss of $0.52 per diluted share in 2005 for a net improvement of $0.69 per diluted share.
Fourth Quarter Performance Summary
The key components of the change in fourth quarter IDACORP net income are:
• The reduction in Idaho Power's operating income largely attributable to greater other O&M expenses and warmer-than-normal weather.
o Other O&M expenses increased in part due to higher labor-related expenses resulting primarily from the attainment of performance targets and greater thermal and hydroelectric O&M expenses.
o Temperatures were 7.5 percent warmer than normal and 7.8 percent warmer than fourth quarter 2005.
o The 2001-2003 IRS exam settlement contributed a $6.9 million tax benefit in the fourth quarter
• 2005 earnings include the recognition of the benefits of the reversal of an allowance for bad debt related to IDACORP Energy of approximately $10 million.
2007 Outlook
The February 11, 2007 hydrological survey shows Snake River Basin snow pack levels at 72 percent of average. The Northwest River Forecast Center (NWRFC) currently projects 3.6 million acre-feet (maf) of water will flow into Brownlee Reservoir during the April-through-July 2007 period. The NWRFC's 30-year average measured inflow into Brownlee is 6.3 maf during the period. In 2006, April-July inflows were 8.9 maf.
The outlook for key operating and financial metrics are:
Key Operating & Financial Metrics | 2007 Estimates (1) | 2006 Actuals |
Idaho Power Company Operation & Maintenance Expense (Millions) | $270 - $280 | $257 |
Idaho Power Company Capital Expenditures (Millions) (2) | $290 - $320 | $217 |
Idaho Power Company Hydroelectric Generation (Million MWh) (3) | 6.5 - 8.5 | 9.2 |
Non-regulated Subsidiary Earnings Per Share from Continuing Operations (4) | $0.10 - $0.15 | $0.14 |
Effective Tax Rates: Idaho Power Company Consolidated - IDACORP (5) | 35% - 39% 20% - 25% | 31.9% 13.3% |
(1) Key operating and financial metrics will be updated quarterly.
(2) 2007-2009 estimated total capital expenditures of $830 million, excluding new base load plant.
(3) Assumes normal operating conditions and slightly below normal precipitation for spring 2007 with a return to
normal precipitation for the balance of the year.
(4) Estimates include contributions from Ida-West Energy and IDACORP Financial netted against holding company
expenses.
(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.
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, 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 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 such forward-looking statements should be considered in light of such factors and others noted in the companies' Annual Report on Form 10-K for the year ended December 31, 2005, the Quarterly Reports on Form 10-Q for the quarters ended March 31, June 30 and September 30, 2006 and other reports on file with the Securities and Exchange Commission. 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 December 31, 2006 and 2005
(unaudited)
(Thousands of Dollars, except per share amounts)
Three Months Ended Year-To-Date
12/31/06 12/31/05 12/31/06 12/31/05
Operating Revenues:
Electric Utility:
General business $ 135,571 $ 163,081 $ 636,375 $ 667,270
Off-system sales .............. 41,186 37,605 260,717 142,794
Other revenues............................ 6,795 4,146 23,381 27,619
Total electric utility revenues.... 183,552 204,832 920,473 837,683
Other............................................ 1,232 1,266 5,818 5,181
Total Operating Revenues........ 184,784 206,098 926,291 842,864
Operating Expenses:
Electric Utility:
Purchased power.......................... 53,781 59,907 283,440 222,310
Fuel expense.............................. 31,162 25,680 115,018 103,164
Power cost adjustment................ (22,599) (1,322) (29,526) (2,995)
Other operations & maintenance... 70,805 58,353 256,553 241,209
Depreciation................................... 25,354 25,252 99,824 101,485
Taxes other than income taxes.......... 2,704 5,212 18,661 20,856
Total electric utility operations........ 161,207 173,082 743,970 686,029
Other.................................................. 2,459 (7,197) 12,617 2,182
Total Operating Expenses............. 163,666 165,885 756,587 688,211
Operating Income (Loss):
Electric Utility.................................. 22,345 31,750 176,503 151,654
Other............................................. (1,227) 8,463 (6,799) 2,999
Total Operating Income.............. 21,118 40,213 169,704 154,653
Other Income..................................... 4,015 4,187 18,195 17,121
Losses of Unconsolidated
Equity-Method Investments............ (210) (1,297) (2,913) (713)
Other Expenses................................. 1,912 2,095 8,559 8,006
Interest Expense:
Interest on long-term debt................ 13,877 14,246 56,402 56,930
Other interest expense..................... 1,821 919 4,573 2,799
Total Interest expense.............. 15,698 15,165 60,975 59,729
Income Before Income Taxes......... 7,313 25,843 115,452 103,326
Income Tax Expense (Benefit)......... (10,641) 4,323 15,377 17,610
Income from Continuing Operations. 17,954 21,520 100,075 85,716
Income (Losses) from Discontinued
Operations (net of tax)......... 127 (13,993) 7,328 (22,055)
Net Income ................................... $ 18,081 $ 7,527 $ 107,403 $ 63,661
Weighted Average Common Shares
Outstanding-Basic (000's)............. 43,145 42,374 42,713 42,279
Basic Earnings (Loss) per Share:
Income from Continuing Operations $ 0.42 $ 0.51 $ 2.34 $ 2.03
Earnings (Losses) - Discontinued
Operations 0.00 (0.33) 0.17 (0.52)
Basic Earnings per Share............ $ 0.42 $ 0.18 $ 2.51 $ 1.51
Weighted Average Common Shares
Outstanding-Diluted (000's)........ 43,320 42,457 42,874 42,362
Diluted Earnings (Loss) per Share:
Income from Continuing Operations...$ 0.42 $ 0.51 $ 2.34 $ 2.02
Earnings (Losses) - Discontinued
Operations 0.00 (0.33) 0.17 (0.52)
Diluted Earnings per Share.............$ 0.42 $ 0.18 $ 2.51 $ 1.50
Dividends Paid per Share of
Common Stock $ 0.30 $ 0.30 $ 1.20 $ 1.20
IDACORP, Inc.
Condensed Consolidated Statements of Cash Flows
For Twelve Months Ended December 31, 2006 and 2005
(unaudited)
(Thousands of Dollars)
Twelve Months Ended
12/31/06 12/31/05
Operating Activities
Net Income................................................................. $ 107,403 $ 63,661
Adjustments to reconcile net income to
net cash provided by operating activities:
Unrealized (gains) losses from energy marketing
activities............................................................ (234) 17
Depreciation and amortization................................. 122,641 124,124
Deferred income taxes and investment tax credits.... (17,332) (31,769)
Changes in regulatory assets and liabilities.............. (17,133) 7,275
Undistributed earnings of subsidiaries...................... (9,553) (16,762)
Provision for uncollectible accounts......................... 106 (10,729)
Gain on sales of assets......................................... (25,658) (2,128)
Other non-cash adjustments to net income.............. (2,631) 5,909
Change in:
Accounts receivable and prepayments.................. 24,304 (6,436)
Accounts payable and other accrued liabilities...... 6,725 1,821
Taxes accrued................................................... (24,099) 26,412
Other................................................................. 5,239 101
Net cash provided by operating activities.................. 169,778 161,496
Investing Activities
Additions to property, plant and equipment.................... (225,048) (193,314)
Sale of IDACORP Technologies................................... 21,469 -
Sale of emission allowances......................................... 11,323 70,757
Investments in unconsolidated affiliates......................... (16,030) -
Refundable income tax deposit..................................... (44,903) -
Other.......................................................................... 149 33,607
Net cash used in investing activities........................ (253,040) (88,950)
Financing Activities
Issuance of common stock........................................... 41,465 6,296
Issuance of long-term debt........................................... 116,300 64,992
Retirement of long-term debt......................................... (132,642) (83,067)
Dividends on common stock......................................... (51,272) (50,690)
Change in short-term borrowings................................... 68,900 23,830
Other.......................................................................... (1,953) (4,954)
Net cash provided by (used in) financing activities..... 40,798 (43,593)
Net increase (decrease) in cash and cash equivalents.... (42,464) 28,953
Cash and cash equivalents at beginning of period........... 52,356 23,403
Cash and cash equivalents at end of period.................... $ 9,892 $ 52,356
IDACORP, Inc.
Condensed Consolidated Balance Sheets
As of December 31 , 2006 and 2005
(unaudited)
(Thousands of Dollars)
12/31/06 12/31/05
Assets
Cash and cash equivalents.................................. $ 9,892 $ 52,356
Receivables, net of allowance.............................. 111,721 82,768
Employee notes................................................. 2,569 2,951
Energy marketing assets.................................... 12,069 23,859
Other current assets........................................... 126,954 128,913
Assets held for sale............................................ 3,326 6,673
Total current assets......................................... 266,531 297,520
Investments....................................................... 202,825 191,593
Property, plant and equipment-net........................ 2,419,080 2,294,441
Energy marketing assets - long-term.................... - 22,189
Regulatory assets.............................................. 423,548 415,177
Employee notes - long-term................................ 2,411 2,862
Other assets...................................................... 109,659 114,378
Assets held for sale............................................ 21,076 25,966
Total other assets............................................ 556,694 580,572
Total Assets................................................ $ 3,445,130 $ 3,364,126
Liabilities and Shareholders' Equity
Current maturities of long-term debt...................... $ 95,125 $ 16,307
Notes payable.................................................... 129,000 60,100
Accounts payable............................................... 86,440 80,324
Energy marketing liabilities.................................. 13,532 24,093
Other current liabilities........................................ 83,631 106,845
Liabilities held for sale......................................... 2,606 5,916
Total current liabilities...................................... 410,334 293,585
Deferred income taxes........................................ 498,512 519,563
Energy marketing liabilities - long-term................. - 22,189
Regulatory liabilities............................................ 294,844 345,109
Other liabilities................................................... 179,836 124,833
Liabilities held for sale......................................... 8,773 10,051
Total other liabilities......................................... 981,965 1,021,745
Long-term debt................................................... 928,648 1,023,545
Shareholders' equity........................................... 1,124,183 1,025,251
Total Liabilities & Shareholders' Equity........... $ 3,445,130 $ 3,364,126
Idaho Power Company Supplemental Operating Statistics
Three Months Ended Year-To-Date
12/31/06 12/31/05 12/31/06 12/31/05
Energy Use - MWh
Residential.................................. 1,378,784 1,336,060 5,067,767 4,760,275
Commercial................................. 966,808 919,701 3,760,987 3,638,694
Industrial..................................... 878,675 874,799 3,475,157 3,422,616
Irrigation...................................... 42,338 81,710 1,635,402 1,467,227
Total General Business................ 3,266,605 3,212,270 13,939,313 13,288,812
Off-System Sales......................... 743,906 504,803 5,820,823 2,773,852
Total........................................ 4,010,511 3,717,073 19,760,136 16,062,664
Revenue ($000's)
Residential.................................. $ 74,601 $ 83,981 $ 299,594 $ 299,488
Commercial................................. 37,150 43,722 162,391 173,268
Industrial..................................... 22,011 31,366 102,958 118,259
Irrigation...................................... 1,809 4,012 71,432 76,255
Total General Business................ 135,571 163,081 636,375 667,270
Off-System Sales......................... 41,186 37,605 260,717 142,794
Total........................................ $ 176,757 $ 200,686 $ 897,092 $ 810,064
Customers - Period End
Residential.................................. 393,338 380,952
Commercial................................. 60,427 58,087
Industrial..................................... 126 132
Irrigation...................................... 17,888 17,975
