Exhibit 99
IDACORP
1221 W. Idaho Street
Boise, ID 83702
November 6, 2008
FOR IMMEDIATE RELEASE
Lawrence F. Spencer, Director of Investor Relations
Phone: (208) 388-2664
lspencer@idacorpinc.com
IDACORP Announces Third Quarter 2008 Results
BOISE-IDACORP, Inc. (NYSE:IDA) reported 2008 third quarter net income of $51.7 million or $1.14 per diluted share, compared to $28.9 million or $0.65 per diluted share in 2007. Idaho Power Company (IPC), IDACORP’s principal subsidiary, reported third quarter net income of $47.4 million compared to $24.1 million in 2007. IDACORP reported year-to-date results of $91 million or $2.02 per diluted share compared to $72 million or $1.63 per diluted share in 2007.
“Our improved financial performance today reflects the impact of three primary factors – progress from prolonged and purposeful regulatory efforts, Mother Nature, and operational efficiencies companywide,” said IDACORP President and Chief Executive Officer J. LaMont Keen. “This year’s regulatory accomplishments both in Idaho and Oregon highlight the achievement of key milestones of our strategy. Our service area experienced near-normal temperatures and better water conditions this year, in stark contrast to the extreme temperatures and drought of recent years. Our workforce responded well to both operational and economic challenges in 2008, demonstrating the ability to effectively manage the bottom line while continuing to provide our customers some of the lowest electric rates in the nation.”
“We are very encouraged by our year-to-date results; however, there is still work to do,” added Keen. “While our performance is an improvement relative to prior quarters, we are still not earning our allowed rate of return. Looking forward, we must continue our strategy of timely regulatory filings in order to match our revenues with our costs. We must also increase our efforts to evaluate and manage capital and operating expenditures to match economic realities.”
Page 1 of 9
Performance Summary
A summary of IDACORP’s and each IDACORP subsidiary’s net income for the third quarter and year-to-date 2008 as compared to 2007 is as follows:
| Three Months Ended | Nine Months Ended |
| September 30, | September 30, |
| 2008 | 2007 | 2008 | 2007 |
| (in thousands except per diluted share amounts) |
| | | | | | | | |
Earnings From: | | | | | | | | |
| Idaho Power Company | $ | 47,405 | $ | 24,108 | $ | 86,404 | $ | 63,603 |
| IDACORP Financial Services | | 710 | | 1,752 | | 2,212 | | 5,374 |
| Ida-West Energy | | 1,208 | | 993 | | 2,171 | | 2,034 |
| Holding Company (including | | | | | | | | |
| | discontinued operations) | | 2,416 | | 2,078 | | 182 | | 1,033 |
Total Earnings | $ | 51,739 | $ | 28,931 | $ | 90,969 | $ | 72,044 |
| | | | | | | | |
Average outstanding shares–diluted | | 45,194 | | 44,543 | | 45,098 | | 44,080 |
Earnings per diluted share | $ | 1.14 | $ | 0.65 | $ | 2.02 | $ | 1.63 |
| | | | | | | | | | |
The key factors affecting the change in IDACORP’s net income for the third quarter of 2008 include:
• IPC’s net income, the primary component of IDACORP’s net income, was $47.4 million for the quarter, an increase of $23.3 million. The key factors causing the change in IPC’s net income include:
• General business revenue increased $34.8 million due to a $17.4 million increase in retail base rates and a $17.4 million increase in power cost adjustment (PCA) rates.
• Improved hydroelectric generating conditions decreased net power supply costs (fuel and purchased power less off-system sales) by $27.2 million.
• The PCA decreased $23.6 million primarily due to higher amortization expense from prior year excess net power supply costs as well as improved hydroelectric generating conditions.
o A change in the monthly allocation of base net power supply costs increased the PCA $17.6 million.
• O&M expense increased $5.6 million due to an increase of $6.4 million in payroll-related expenses and $2.2 million in water lease costs. Partially offsetting these increases was a decrease of $3.3 million from the fixed cost adjustment mechanism.
• Earnings from Bridger Coal increased $3.2 million due to higher prices and volumes of coal sold.
• Interest expense increased $2.0 million due primarily to increased long-term debt balances.
• Income tax expense increased $10.3 million due principally to higher income before income taxes.
• IFS net income decreased $1.0 million due to lower tax benefits from aging investments.
Page 2 of 9
The key factors affecting the change in IDACORP’s net income for the nine months ended September 30, 2008 include:
• IPC’s net income, the primary component of IDACORP’s net income, was $86.4 million, an increase of $22.8 million. The key factors causing the change in IPC’s net income include:
• General business revenue increased $91.4 million due to an increase of $21.2 million in retail base rates, an increase of $65.7 million in PCA rates, and an increase of $5.8 million due to customer growth.
• Improved hydroelectric generating conditions decreased net power supply costs (fuel and purchased power less off-system sales) by $19.6 million.
• The PCA decreased $68.8 million primarily due to higher amortization expense from prior year excess net power supply costs as well as improved hydroelectric generating conditions.
• Interest expense increased $7.0 million due primarily to increased long-term debt balances.
• Gain on sale of emission allowances decreased $2.2 million due to fewer sales and lower prices in 2008.
• Income tax expense increased $9.5 million due primarily to higher income before income taxes.
• IFS earnings decreased $3.2 million due to lower tax benefits from aging investments.
2008 Operating & Financial Metrics
The outlook for key operating and financial metrics for 2008 is:
| 2008 Estimates |
Key Operating & Financial Metrics | Current | Previous |
Idaho Power Operation & | | |
| Maintenance Expense (Millions) | No change | $285-$295 |
Idaho Power Capital | | |
| Expenditures (Millions) (1) | $235-$250 | $255-$270 |
Idaho Power Hydroelectric | | |
| Generation (Million MWh) (2) | 6.7–7.2 | 6.5-7.5 |
Non-Regulated | | |
| Subsidiary Earnings (Millions) (3) | No change | $2.3-$4.6 |
Effective Tax Rates: | | |
| Idaho Power | No change | 32%-36% |
| Consolidated – IDACORP | No change | 22%-26% |
(1) The decrease in capital expenditures is largely due to the decline in new customer connections and the deferral of certain capital expenditures.
(2) The range of estimated hydroelectric generation has been revised to reflect refinements related to river flows.
(3) Estimates include contributions from Ida-West Energy and IDACORP Financial netted against holding company expenses.
Page 3 of 9
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; and Ida-West Energy, an operator of small hydroelectric generation projects that satisfy the requirements of the Public Utility Regulatory Policies Act of 1978. To learn more about Idaho Power or IDACORP, visit www.idahopower.com or www.idacorpinc.com.
Page 4 of 9
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 and compliance with governmental policies, including new interpretations of existing policies, and regulatory actions and regulatory audits, including those of the Federal Energy Regulatory Commission, the North American Electric Reliability Corporation, the Western Electricity Coordinating Council, the Idaho Public Utilities Commission, and the Oregon Public Utility Commission 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, provision of transmission services, including critical infrastructure protection and system reliability, relicensing of hydroelectric projects, recovery of power supply costs, recovery of 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; changes in tax laws or related regulations or new interpretations of applicable law by the Internal Revenue Service or other taxing jurisdiction; litigation and regulatory proceedings, including those resulting from the energy situation in the western United States, and penalties and settlements that influence business and profitability; changes in and compliance with laws, regulations, and policies including changes in law and compliance with environmental, natural resources, endangered species and safety laws, regulations and policies and the adoption of laws and regulations addressing greenhouse gas emissions or global climate change; global climate change and regional weather variations affecting customer demand and hydroelectric generation; over-appropriation of surface and groundwater in the Snake River Basin resulting in reduced generation at hydroelectric facilities; construction of power generation, transmission and distribution facilities, including an inability to obtain required governmental permits and approvals, rights-of-way and siting, and risks related to contracting, construction and start-up; operation of power generating facilities including performance below expected levels, breakdown or failure of equipment, availability of transmission and fuel supply; changes in operating expenses and capital expenditures, including costs and availability of materials, fuel and commodities; blackouts or other disruptions of Idaho Power Company’s transmission system or the western interconnected transmission system; impacts from the formation of a regional transmission organization or the development of another transmission group; population growth rates and other demographic patterns; market prices and demand for energy, including structural market changes; increases in uncollectible customer receivables; fluctuations in sources and uses of cash; results of financing efforts, including the ability to obtain financing or refinance existing debt when necessary or on favorable terms, which can be affected by factors such as credit ratings, volatility in the financial markets and other economic conditions; actions by credit rating agencies, including changes in rating criteria and new interpretations of existing criteria; changes in interest rates or rates of inflation; performance of the stock market, interest rates, credit spreads and other financial market conditions, as well as changes in government regulations, which affect the amount and timing of required contributions to pension plans and the reported costs of providing pension and other postretirement benefits; increases in health care costs and the resulting effect on medical benefits paid for employees; increasing costs of insurance, changes in coverage terms and the ability to obtain insurance; homeland security, acts of war or terrorism; natural disasters and other natural risks, such as earthquake, flood, drought, lightning, wind and fire; 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, 2007, and the Quarterly Reports on Form 10-Q for the quarters ended March 31, 2008, June 30, 2008, 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.
Page 5 of 9
