UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1999
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Exact name of registrants as
specified in their charters, state I.R.S. Employer
Commission of incorporation, address of Identification
File Number principal executive offices, and Number
telephone number
1-14465 IDACORP, Inc. 82-0505802
1-3198 Idaho Power Company 82-0130980
1221 W. Idaho Street
Boise, ID 83702-5627
Telephone: (208) 388-2200
State of Incorporation: Idaho
Web site: www.idacorpinc.com
None
Former name, former address and former fiscal year, if changed
since last report.
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
Number of shares of Common Stock outstanding as of June 30, 1999:
IDACORP, Inc.: 37,612,351
Idaho Power Company: 37,612,351 shares, all of which are held by
IDACORP,Inc.
INDEX
Page
Definitions 2
Part I. Financial Information:
Item 1. Financial Statements
IDACORP, Inc:
Consolidated Statements of Income 3-4
Consolidated Balance Sheets 5-6
Consolidated Statements of Capitalization 7
Consolidated Statements of Cash Flows 8
Notes to Consolidated Financial Statements 9-13
Independent Accountants' Report 14
Idaho Power Company:
Consolidated Statements of Income 15-16
Consolidated Balance Sheets 17-18
Consolidated Statements of Capitalization 19
Consolidated Statements of Cash Flows 20
Notes to Consolidated Financial Statements 21-22
Independent Accountants' Report 23
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 24-31
Part II. Other Information:
Item 4. Submission of Matters to a Vote of Security
Holders 32-33
Item 6. Exhibits and Reports on Form 8-K 34-37
Signatures 38-39
DEFINITIONS
FASB Financial Accounting Standards Board
FERC Federal EnergyRegulatory Commission
IPUC Idaho Public Utilities Commission
KWh kilowatt-hour
MAF Million Acre-Feet
MMbtu Million British Thermal Units
MWh Megawatt-hour
OPUC Oregon PublicUtilities Commission
PCA Power Cost Adjustment
PUCN Public UtilityCommission of Nevada
REA Rural Electrification Administration
SFAS Statement ofFinancial Accounting Standards
FORWARD LOOKING INFORMATION
This Form 10-Q contains "forward-looking statements" intended to
qualify for safe harbor from liability established by the
Private Securities Litigation Reform Act of 1995. Forward-
looking statements should be read with the cautionary statements
and important factors included in this Form 10-Q at Part I, Item
2. Management's Discussion and Analysis of Financial Condition
and Results Of Operations-Forward-Looking Information. Forward-
looking statements are all statements other than statements of
historical fact, including without limitation those that are
identified by the use of the words "anticipates," "estimates,"
"expects," "intends," "plans," "predicts," and similar
expressions and include, but are not limited to, statements
under the heading "Other Matters" concerning the outcome of
IDACORP, Inc.'s and Idaho Power Company's Year 2000 efforts.
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
IDACORP, Inc.
Consolidated Statements of Income
Three Months Ended June 30,
1999 1998
(Thousands of Dollars except
for per share amounts)
REVENUES:
General business $ 129,530 $ 120,997
Off-system sales 29,520 38,487
Other revenues 6,022 7,648
Total revenues 165,072 167,132
EXPENSES:
Operation:
Purchased power 22,527 25,242
Fuel expense 18,854 14,303
Power cost adjustment 6,192 13,814
Other 41,196 38,606
Maintenance 11,499 11,525
Depreciation 19,404 19,044
Taxes other than income taxes 5,676 5,501
Total expenses 125,348 128,035
INCOME FROM OPERATIONS 39,724 39,097
OTHER INCOME:
Allowance for equity funds
used during construction 230 24
Energy trading activities - Net 7,096 3,198
Other - Net 1,893 3,503
Total other income 9,219 6,725
INTEREST EXPENSE AND OTHER:
Interest on long-term debt 13,758 13,060
Other interest 2,200 2,060
Allowance for borrowed funds
used during construction (134) (279)
Preferred dividends of Idaho
Power Company 1,352 1,417
Total interest expense and
other 17,176 16,258
INCOME BEFORE INCOME TAXES 31,767 29,564
INCOME TAXES 10,525 9,213
NET INCOME $ 21,242 $ 20,351
AVERAGE COMMON SHARES OUTSTANDING
(000) 37,612 37,612
EARNINGS PER SHARE OF COMMON STOCK
(basic and diluted) $ 0.56 $ 0.54
The accompanying notes are an integral part of these statements.
IDACORP, Inc.
Consolidated Statements of Income
Six Months Ended June 30,
1999 1998
(Thousands of Dollars
except for per share
amounts)
REVENUES:
General business $ 259,222 $ 233,220
Off-system sales 67,031 87,643
Other revenues 12,969 17,182
Total revenues 339,222 338,045
EXPENSES:
Operation:
Purchased power 40,415 52,977
Fuel expense 40,875 35,023
Power cost adjustment 15,198 14,289
Other 73,964 71,553
Maintenance 19,382 20,553
Depreciation 38,575 37,940
Taxes other than income taxes 11,259 10,844
Total expenses 239,668 243,179
INCOME FROM OPERATIONS 99,554 94,866
OTHER INCOME:
Allowance for equity funds used
during construction 387 24
Energy trading activities - Net 7,843 2,870
Other - Net 4,126 5,605
Total other income 12,356 8,499
INTEREST EXPENSE AND OTHER:
Interest on long-term debt 27,153 26,097
Other interest 4,429 4,146
Allowance for borrowed funds
used during construction (358) (440)
Preferred dividends of Idaho
Power Company 2,720 2,822
Total interest expense and
other 33,944 32,625
INCOME BEFORE INCOME TAXES 77,966 70,740
INCOME TAXES 27,224 22,338
NET INCOME $ 50,742 $ 48,402
AVERAGE COMMON SHARES OUTSTANDING
(000) 37,612 37,612
EARNINGS PER SHARE OF
COMMON STOCK (basic and diluted)$ 1.35 $ 1.29
The accompanying notes are an integral part of these statements.
IDACORP, Inc.
Consolidated Balance Sheets
Assets
June 30, December 31,
1999 1998
(Thousands of Dollars)
ELECTRIC PLANT:
In service (at original cost) $ 2,690,424 $ 2,659,441
Accumulated provision for
depreciation (1,042,176) (1,009,387)
In service - Net 1,648,248 1,650,054
Construction work in progress 75,915 59,717
Held for future use 1,742 1,738
Electric plant - Net 1,725,905 1,711,509
INVESTMENTS AND OTHER PROPERTY 139,280 129,437
CURRENT ASSETS:
Cash and cash equivalents 14,671 22,867
Receivables:
Customer 81,123 81,245
Allowance for uncollectible
accounts (1,397) (1,397)
Natural gas 33,120 21,426
Notes 4,679 4,643
Employee notes 4,487 4,510
Other 7,633 6,059
Energy trading assets 82,988 -
Accrued unbilled revenues 33,586 34,610
Materials and supplies (at
average cost) 31,995 30,157
Fuel stock (at average cost) 9,725 7,096
Prepayments 14,511 16,042
Regulatory assets associated with
income taxes 2,965 2,965
Total current assets 320,086 230,223
DEFERRED DEBITS:
American Falls and Milner water
rights 31,585 31,830
Company-owned life insurance 43,672 35,149
Regulatory assets associated with
income taxes 201,850 201,465
Regulatory assets - other 40,495 62,013
Other 50,625 49,994
Total deferred debits 368,227 380,451
TOTAL $ 2,553,498 $ 2,451,620
The accompanying notes are an integral part of these statements.
IDACORP, Inc.
Consolidated Balance Sheets
Capitalization and Liabilities
June 30, December 31,
1999 1998
(Thousands of Dollars)
CAPITALIZATION:
Common stock equity:
Common stock without par value
(shares authorized 120,000,000;
shares outstanding
37,612,351) $ 451,076 $ 451,564
Retained earnings 294,418 278,607
Accumulated other comprehensive
income 226 226
Total common stock equity 745,720 730,397
Preferred stock of Idaho Power
Company 105,919 105,968
Long-term debt 738,547 815,937
Total capitalization 1,590,186 1,652,302
CURRENT LIABILITIES:
Long-term debt due within one
year 86,193 6,029
Notes payable 48,150 38,524
Accounts payable 69,439 73,499
Accounts payable - natural gas 21,075 28,476
Energy trading liabilities 83,017 -
Taxes accrued 27,374 24,785
Interest accrued 18,445 18,365
Deferred income taxes 2,965 2,965
Other 14,973 12,275
Total current liabilities 371,631 204,918
DEFERRED CREDITS:
Regulatory liabilities associated
with deferred investment tax
credits 68,424 69,396
Deferred income taxes 421,271 422,196
Regulatory liabilities associated
with income taxes 28,075 28,075
Regulatory liabilities - other 2,122 4,161
Other 71,789 70,572
Total deferred credits 591,681 594,400
COMMITMENTS AND CONTINGENT
LIABILITIES
TOTAL $ 2,553,498 $ 2,451,620
The accompanying notes are an integral part of these statements.
IDACORP, Inc.
Consolidated Statements of Capitalization
June 30, December 31,
1999 % 1998 %
(Thousands of Dollars)
COMMON STOCK EQUITY:
Common stock $ 451,076 $ 451,564
Retained earnings 294,418 278,607
Accumulated other comprehensive
income 226 226
Total common stock equity 745,720 47 730,397 44
PREFERRED STOCK OF IDAHO POWER
COMPANY:
4% preferred stock 15,919 15,968
7.68% Series, serial preferred
stock 15,000 15,000
7.07% Series, serial preferred
stock 25,000 25,000
Auction rate preferred stock 50,000 50,000
Total preferred stock 105,919 7 105,968 7
LONG-TERM DEBT OF IDAHO POWER
COMPANY:
First mortgage bonds:
8.65% Series due 2000 80,000 80,000
6.93% Series due 2001 30,000 30,000
6.85% Series due 2002 27,000 27,000
6.40% Series due 2003 80,000 80,000
8 % Series due 2004 50,000 50,000
5.83% Series due 2005 60,000 60,000
Maturing 2021 through 2031 with
rates ranging from 7.5% to
9.52% 230,000 230,000
Total first mortgage bonds 557,000 557,000
Amount due within one year (80,000) -
Net first mortgage bonds 477,000 557,000
Pollution control revenue bonds:
7 1/4% Series due 2008 4,360 4,360
8.30 % Series 1984 due 2014 49,800 49,800
6.05 % Series 1996A due 2026 68,100 68,100
Variable Rate Series 1996B due
2026 24,200 24,200
Variable Rate Series 1996C due
2026 24,000 24,000
Total pollution control
revenue bonds 170,460 170,460
REA notes 1,452 1,489
Amount due within one year (75) (74)
Net REA notes 1,377 1,415
American Falls bond guarantee 19,885 20,130
Milner Dam note guarantee 11,700 11,700
Debt related to investments in
affordable housing with rates
ranging from 6.03% to 8.59%
due 1999 to 2009 65,095 62,103
Amount due within one year (6,118) (5,955)
Net affordable housing debt 58,977 56,148
Unamortized premium/discount -
Net (1,490) (1,539)
Net Idaho Power Company debt 737,909 815,314
OTHER SUBSIDIARY DEBT 638 623
Total long-term debt 738,547 46 815,937 49
TOTAL CAPITALIZATION $ 1,590,186 100 $ 1,652,302 100
The accompanying notes are an integral part of these statements.
IDACORP, Inc.
Consolidated Statements of Cash Flows
Six Months Ended June 30,
1999 1998
(Thousands of Dollars)
OPERATING ACTIVITIES:
Net income $ 50,742 $ 48,402
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and amortization 47,717 43,562
Deferred taxes and investment
tax credits (2,282) (2,453)
Accrued PCA costs 15,122 14,081
Change in:
Accounts receivable and
prepayments (11,628) 9,808
Accrued unbilled revenue 1,024 1,001
Materials and supplies and
fuel stock (4,467) (1,057)
Accounts payable (11,461) (27,383)
Taxes accrued 2,589 3,232
Other current assets and
liabilities 2,778 (289)
Other - net (4,689) (672)
Net cash provided by operating
activities 85,445 88,232
INVESTING ACTIVITIES:
Additions to utility plant (51,517) (43,659)
Investments in affordable housing
projects (10,591) (10,125)
Investments in company-owned life
insurance (6,749) -
Other - net (1,915) (3,961)
Net cash used in investing
activities (70,772) (57,745)
FINANCING ACTIVITIES:
Issuance of long-term debt related to
affordable housing projects 7,271 4,896
Retirement of long-term debt related
to affordable housing projects (4,279) -
Dividends on common stock (34,931) (34,979)
Increase (Decrease) in short-term
borrowings 9,626 (4,989)
Other - net (556) 110
Net cash used in financing
activities (22,869) (34,962)
Net decrease in cash and cash
equivalents (8,196) (4,475)
Cash and cash equivalents beginning
of period 22,867 6,905
Cash and cash equivalents at end of
period $ 14,671 $ 2,430
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Cash paid during the period for:
Income taxes $ 24,784 $ 27,132
Interest (net of amount
capitalized) $ 30,095 $ 25,078
The accompanying notes are an integral part of these statements
IDACORP, Inc.
Notes to Consolidated Financial Statements
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Nature of Business
IDACORP, Inc. (IDACORP or the Company), a holding company
formed in 1998, is the parent of Idaho Power Company (IPC),
Ida-West Energy Company, IDACORP Energy Solutions Co.,
IDACORP Energy Services Co. and IDACORP Technologies, Inc.
On October 1, 1998 IPC's outstanding common stock was
converted on a share-for-share basis into common stock of the
Company. However, IPC's preferred stock and debt securities
outstanding were unaffected and remain with IPC.
IPC, a public utility, represents over 90% of the total
assets of the Company and is its principal operating
subsidiary. IPC is regulated by the FERC and the state
regulatory commissions of Idaho, Oregon, Nevada and Wyoming
and is engaged in the generation, transmission, distribution,
sale and purchase of electric energy.
Financial Statements
In the opinion of the Company, the accompanying unaudited
consolidated financial statements contain all adjustments
necessary to present fairly its consolidated financial
position as of June 30, 1999, and its consolidated results of
operations and cash flows for the three and six months ended
June 30, 1999 and 1998. These financial statements do not
contain the complete detail or footnote disclosure concerning
accounting policies and other matters that would be included
in full year financial statements and, therefore, they should
be read in conjunction with the Company's audited
consolidated financial statements included in the Company's
Annual Report on Form 10-K for the year ended December 31,
1998. The results of operations for the interim periods are
not necessarily indicative of the results to be expected for
the full year.
Principles of Consolidation
The consolidated financial statements include the accounts of
the Company and its wholly-owned or controlled subsidiaries.
All significant intercompany transactions and balances have
been eliminated in consolidation. Investments in business
entities in which the Company and its subsidiaries do not
have control, but have the ability to exercise significant
influence over operating and financial policies, are
accounted for using the equity method.
Accounting for Contracts Involved in Energy Trading and Risk
Management Activities
The Company adopted Emerging Issues Task Force 98-10
"Accounting for Contracts Involved in Energy Trading
Activities," (EITF 98-10) effective January 1, 1999. The
consensus establishes standards for designating between
energy contracts and energy trading contracts and accounting
for each. Energy trading contracts are reported at fair
value as of the balance sheet date with the resulting gains
and losses reported in the income statement. The resulting
impact on net income of adoption was immaterial. Related to
the adoption of EITF 98-10, the Company has begun reporting
electricity trading activity net (netting revenues and
expenses) in "Other Income-Energy trading activities-net" on
the Consolidated Statements of Income. Prior periods have
been reclassified to conform with the current period's
presentation with no impact to net income.
Derivative Financial Instruments
The Company uses financial instruments such as commodity
forwards, futures, options and swaps to hedge against
exposure to commodity price risk in the electricity and
natural gas markets as well as to optimize its energy trading
portfolio. The accounting for derivative financial
instruments is in accordance with the concepts established in
SFAS No. 80, "Accounting for Futures Contracts," American
Institute of Certified Public Accountants Statement of
Position 86-2, "Accounting for Options," and recently issued
EITF 98-10.
Gains and losses from derivative instruments designed to
hedge energy trading contracts as defined by EITF 98-10 are
recognized in income on a current basis along with the gains
and losses of the hedged transaction. Additionally, gains
and losses on derivative transactions not qualifying as a
hedge are recognized currently in income. Cash flows from
derivatives are recognized in the statement of cash flows as
an operating activity.
Comprehensive Income
For the six-month periods ended June 30, 1999 and 1998, the
Company's comprehensive income was not materially different
from net income. The components of comprehensive income
include net income, the Company's proportionate share of
unrealized holding gains on marketable securities held by an
equity investee, and the changes in additional minimum
liability under a deferred compensation plan for certain
senior management employees and directors.
Reclassifications
Certain items previously reported for periods prior to June 30,
1999 have been reclassified to conform with the current period's
presentation. Net income was not affected by these
reclassifications.
2. INCOME TAXES:
The Company's effective tax rate for the first six months
increased from 31.6 percent in 1998 to 34.9 percent in 1999.
Reconciliations between the statutory income tax rate and the
effective rates for the six-month periods ended June 30, 1999
and 1998 are as follows:
1999 1998
Amount Rate Amount Rate
Computed income taxes based on
statutory federal income tax
rate $ 27,288 35.0% $ 24,759 35.0%
Changes in taxes resulting from:
Current state income taxes 4,230 5.4 3,058 4.3
Net depreciation 2,662 3.4 2,677 3.8
Investment tax credits restored (1,481) (1.9) (1,462) (2.1)
Removal costs (375) (0.5) (877) (1.2)
Repair allowance (1,137) (1.5) (1,564) (2.2)
Affordable housing credits (4,222) (5.4) (3,177) (4.5)
Preferred dividends 952 1.2 988 1.4
Settlement of prior year tax returns - - (1,000) (1.4)
Other (693) (0.8) (1,064) (1.5)
Total $ 27,224 34.9% $ 22,338 31.6%
3. PREFERRED STOCK OF IDAHO POWER COMPANY:
The number of shares of IPC preferred stock outstanding were as follows:
June 30, December 31,
1999 1998
Cumulative, $100 par value:
4% preferred stock (authorized 215,000
shares) 159,190 159,680
Serial preferred stock, 7.68% Series
(authorized 150,000 shares) 150,000 150,000
Serial preferred stock, cumulative, without
Par value; total of 3,000,000 shares
authorized:
7.07% Series, $100 stated value,(authorized
250,000 shares) 250,000 250,000
Auction rate preferred stock, $100,000
stated Value, (authorized 500 shares) 500 500
4. FINANCING:
The Company currently has a $300.0 million shelf registration
statement that can be used for the issuance of unsecured debt
securities and preferred or common stock. At June 30, 1999, none
had been issued.
IPC currently has a $200.0 million shelf registration
statement with a balance of $83.0 million remaining to be
issued. This can be used for first mortgage bonds (including
medium term notes) or preferred stock.
5. COMMITMENTS AND CONTINGENT LIABILITIES:
Commitments under contracts and purchase orders relating to
the Company's program for construction and operation of
facilities amounted to approximately $6.6 million at June 30,
1999. The commitments are generally revocable by the Company
subject to reimbursement of manufacturers' expenditures
incurred and/or other termination charges.
The Company is party to various legal claims, actions, and
complaints, certain of which involve material amounts.
Although the Company is unable to predict with certainty
whether or not it will ultimately be successful in these
legal proceedings, or, if not, what the impact might be,
based upon the advice of legal counsel, management presently
believes that disposition of these matters will not have a
material adverse effect on the Company's financial position,
results of operation, or cash flows.
6. REGULATORY ISSUES:
PCA
IPC has a PCA mechanism that provides for annual adjustments
to the rates charged to Idaho retail customers. These
adjustments, which take effect annually on May 16, are based
on forecasts of net power supply costs and the true-up of the
prior year's forecast. The difference between the actual
costs incurred and the forecasted costs is deferred, with
interest, and trued-up in the next annual rate adjustment.
For the 1999-2000 rate period, actual power supply costs have
been less than forecast, due to better than forecast
hydroelectric generating conditions. IPC has recorded a
reduction to regulatory assets of $7.1 million as of June 30,
1999.
The May 16, 1999 rate adjustment reduced Idaho general
business customer rates by 9.2 percent. The decrease results
from projected above-average hydroelectric generating
conditions and the true-up of the 1998-99 rate period.
Overall, IPC's annual general business revenues are expected
to decrease by $40.4 million.
Regulatory Settlement
Under the terms of an IPUC Settlement in effect through 1999,
when earnings in IPC's Idaho jurisdiction exceed an 11.75
percent return on year-end common equity, 50 percent of the
excess is set aside for the benefit of Idaho retail
customers.
On April 7, 1999 IPC submitted the 1998 annual earnings
sharing compliance filing to the IPUC. This filing indicated
that there was almost $6.4 million in earnings before
authorized deductions, or $3.3 million after authorized
deductions, available for the benefit of IPC's Idaho
customers.
On June 16, 1999 IPC filed a supplement to the April 7, 1999
annual earnings sharing compliance filing requesting that the
$3.3 million of remaining 1997 and 1998 revenue sharing be
refunded to its customers. On July 19, 1999 the IPUC issued
Order No. 28099 in Case IPC-E-99-2, refunding $0.7 million to
special contract and large customers. The remaining balance
of $2.6 million has been deferred with interest until May
2000.
DSM (Conservation) Expenses
IPC has obtained changes to the regulatory treatment of
previously deferred DSM expenses in both Idaho and Oregon.
In Idaho, IPC requested that the IPUC allow for the recovery
of post-1993 DSM expenses and acceleration of the recovery of
DSM expenditures authorized in the last general rate case.
In its Order No. 27660 issued on July 31, 1998, the IPUC set
a new amortization period of 12 years instead of the 24-year
period previously adopted. The IPUC order reflects an
increase in annual Idaho retail revenue requirements of $3.1
million for 12 years.
Per Order No. 27660 issued July 31, 1998, IPC funded the 1998
annual revenue requirement with 1997 revenue sharing amounts
from July 1998 until May 16, 1999. A group of industrial
customers has appealed the IPUC order to the Idaho Supreme
Court.
In December 1998, IPC filed with the IPUC a request to
recover remaining deferred DSM expenditures of approximately
$2.1 million. The IPUC conducted a hearing on this matter in
March 1999. In the filing IPC requested that the amount be
applied against 1998 earnings sharing amounts. On May 11,
1999 IPC received Order No. 28041 allowing for $1.5 million
recovery of existing and future DSM expenditures to be funded
out of 1998 revenue sharing funds.
In Oregon, the OPUC authorized a five-year amortization of
the Oregon-allocated share of DSM expenditures incurred
through 1997. The DSM charge replaces an expiring rate
surcharge related to extraordinary power supply costs
associated with past drought conditions. IPC anticipates
that the charge will recover approximately $540,000 per year.
7. NEW ACCOUNTING PRONOUNCEMENT:
In June 1998 the FASB issued SFAS No. 133 "Accounting for
Derivative Instruments and Hedging Activities." This
statement establishes accounting and reporting standards for
derivative financial instruments and other similar
instruments and for hedging activities. It was originally
effective for fiscal years beginning after June 15, 1999. In
June 1999 the FASB issued SFAS No. 137 "Accounting for
Derivative Instruments and Hedging Activities - Deferral of
the Effective Date of FASB Standard No. 133", which defers
the effective date of SFAS No. 133 one year. The Company is
reviewing SFAS No. 133 to determine its effects on the
Company's financial position and results of operations.
8. DERIVATIVE FINANCIAL INSTRUMENTS:
The notional amount of open commodity derivative positions as
of June 30, 1999 was a net long electricity position of 305
MW and a net long natural gas position of 98 BCF.
The loss in fair value of commodity derivative positions
(including natural gas and electricity forwards, futures,
options and swaps) included in income before income taxes for
the six months ended June 30, 1999 was $(2.2) million.
9. INDUSTRY SEGMENT INFORMATION:
IDACORP's dominant operating segment is the regulated utility
operations of IPC. IDACORP's non-utility operating segments
do not individually constitute more than 10% of enterprise
revenues, income or assets, nor in aggregate do they comprise
more than 25% of enterprise revenues, income or assets.
IPC's primary business is the generation, transmission,
distribution, purchase and sale of electricity.
Substantially all of the Company's revenue comes from the
sale of electricity and related services, predominately in
the United States.
The Company also sells natural gas, solar electric products
and systems, control systems integration services for
substations and semiconductor manufacturing, and other
miscellaneous services. Revenues from these operations are
not significant.
The following table summarizes the segment information for
IPC utility operations, with a reconciliation to total
enterprise information:
IPC Total
Utility Other Enterprise
(Thousands of Dollars)
Six months ended June 30, 1999:
Revenues $ 339,222 $ - $ 339,222
Net income 46,097 4,645 50,742
Total assets at June 30,
1999 2,339,057 214,441 2,553,498
Six months ended June 30, 1998:
Revenues $ 338,045 $ - $ 338,045
Net income 46,655 1,747 48,402
Total assets at December
31,1998 2,310,322 141,298 2,451,620
INDEPENDENT ACCOUNTANTS' REPORT
IDACORP, Inc.
Boise, Idaho
We have reviewed the accompanying consolidated balance
sheet and statement of capitalization of IDACORP, Inc.
and subsidiaries as of June 30, 1999, and the related
consolidated statements of income for the three and six
month periods ended June 30, 1999 and 1998 and
consolidated statements of cash flows for the six month
periods ended June 30, 1999 and 1998. These financial
statements are the responsibility of the Company's
management.
We conducted our review in accordance with standards
established by the American Institute of Certified
Public Accountants. A review of interim financial
information consists principally of applying analytical
procedures to financial data and making inquiries of
persons responsible for financial and accounting
matters. It is substantially less in scope than an
audit conducted in accordance with generally accepted
auditing standards, the objective of which is the
expression of an opinion regarding the financial
statements taken as a whole. Accordingly, we do not
express such an opinion.
Based on our review, we are not aware of any material
modifications that should be made to such consolidated
financial statements for them to be in conformity with
generally accepted accounting principles.
We have previously audited, in accordance with
generally accepted auditing standards, the consolidated
balance sheet and statement of capitalization of
IDACORP, Inc. and subsidiaries as of December 31, 1998,
and the related consolidated statements of income,
comprehensive income, retained earnings, and cash flows
for the year then ended (not presented herein); and in
our report dated January 29, 1999, we expressed an
unqualified opinion on those consolidated financial
statements. In our opinion, the information set forth
in the accompanying consolidated balance sheet and
statement of capitalization as of December 31, 1998 is
fairly stated, in all material respects, in relation to
the consolidated balance sheet and statement of
capitalization from which it has been derived.
DELOITTE & TOUCHE LLP
Boise, Idaho
July 30, 1999
Idaho Power Company
Consolidated Statements of Income
Three Months Ended June 30,
1999 1998
(Thousands of Dollars)
REVENUES:
General business $ 129,530 $ 120,997
Off-system sales 29,520 38,487
Other revenues 6,022 7,648
Total revenues 165,072 167,132
EXPENSES:
Operation:
Purchased power 22,527 25,242
Fuel expense 18,854 14,303
Power cost adjustment 6,192 13,814
Other 41,196 38,606
Maintenance 11,499 11,525
Depreciation 19,404 19,044
Taxes other than income taxes 5,676 5,501
Total expenses 125,348 128,035
INCOME FROM OPERATIONS 39,724 39,097
OTHER INCOME:
Allowance for equity funds
used during construction 230 24
Energy trading activities -
Net 7,860 3,198
Other - Net 788 3,503
Total other income 8,878 6,725
INTEREST CHARGES:
Interest on long-term debt 13,720 13,060
Other interest 1,741 2,060
Allowance for borrowed funds
used during construction (134) (279)
Total interest charges 15,327 14,841
INCOME BEFORE INCOME TAXES 33,275 30,981
INCOME TAXES 10,479 9,213
NET INCOME 22,796 21,768
Dividends on preferred stock 1,352 1,417
EARNINGS ON COMMON STOCK $ 21,444 $ 20,351
The accompanying notes are an integral part of these statements.
Idaho Power Company
Consolidated Statements of Income
Six Months Ended June 30,
1999 1998
(Thousands of Dollars)
REVENUES:
General business $ 259,222 $ 233,220
Off system sales 67,031 87,643
Other revenues 12,969 17,182
Total revenues 339,222 338,045
EXPENSES:
Operation:
Purchased power 40,415 52,977
Fuel expense 40,875 35,023
Power cost adjustment 15,198 14,289
Other 73,964 71,553
Maintenance 19,382 20,553
Depreciation 38,575 37,940
Taxes other than income taxes 11,259 10,844
Total expenses 239,668 243,179
INCOME FROM OPERATIONS 99,554 94,866
OTHER INCOME:
Allowance for equity funds used
during construction 387 24
Energy trading activities - Net 8,586 2,870
Other - Net 2,739 5,605
Total other income 11,712 8,499
INTEREST CHARGES:
Interest on long-term debt 27,080 26,097
Other interest 3,903 4,146
Allowance for borrowed funds
used during construction (358) (440)
Total interest charges 30,625 29,803
INCOME BEFORE INCOME TAXES 80,641 73,562
INCOME TAXES 27,061 22,338
NET INCOME 53,580 51,224
Dividends on preferred stock 2,720 2,822
EARNINGS ON COMMON STOCK $ 50,860 $ 48,402
The accompanying notes are an integral part of these statements.
Idaho Power Company
Consolidated Balance Sheets
Assets
June 30, December 31,
1999 1998
(Thousands of Dollars)
ELECTRIC PLANT:
In service (at original cost) $ 2,690,424 $ 2,659,441
Accumulated provision for
depreciation (1,042,176) (1,009,387)
In service - Net 1,648,248 1,650,054
Construction work in progress 73,834 58,904
Held for future use 1,742 1,738
Electric plant - Net 1,723,824 1,710,696
INVESTMENTS AND OTHER PROPERTY 110,207 105,600
CURRENT ASSETS:
Cash and cash equivalents 5,508 20,029
Receivables:
Customer 80,974 81,227
Allowance for uncollectible
accounts (1,397) (1,397)
Natural gas - 21,426
Notes 361 467
Employee notes 4,487 4,510
Other (including $1,040 and
$3,164 from related parties
in 1999 and 1998
respectively) 8,657 8,502
Energy trading assets 66,459 -
Accrued unbilled revenues 33,586 34,610
Materials and supplies (at
average cost) 31,781 30,143
Fuel stock (at average cost) 9,725 7,096
Prepayments 14,440 16,011
Regulatory assets associated with
income taxes 2,965 2,965
Total current assets 257,546 225,589
DEFERRED DEBITS:
American Falls and Milner water
rights 31,585 31,830
Company-owned life insurance 43,672 35,149
Regulatory assets associated with
income taxes 201,850 201,465
Regulatory assets - other 40,495 62,013
Other 50,028 49,448
Total deferred debits 367,630 379,905
TOTAL $ 2,459,207 $ 2,421,790
The accompanying notes are an integral part of these statements.
Idaho Power Company
Consolidated Balance Sheets
Capitalization and Liabilities
June 30, December 31,
1999 1998
(Thousands of Dollars)
CAPITALIZATION:
Common stock equity:
Common stock, $2.50 par
value (50,000,000 shares
authorized; 37,612,351
shares outstanding) $ 94,031 $ 94,031
Premium on capital stock 362,169 362,156
Capital stock expense (3,821) (3,823)
Retained earnings 268,017 252,137
Accumulated other
comprehensive income 226 226
Total common stock equity 720,622 704,727
Preferred stock 105,919 105,968
Long-term debt 738,547 815,937
Total capitalization 1,565,088 1,626,632
CURRENT LIABILITIES:
Long-term debt due within one
year 86,193 6,029
Notes payable 17,276 38,508
Accounts payable 69,246 72,660
Accounts payable-natural gas - 28,476
Energy trading liabilities 70,744 -
Taxes accrued 27,406 25,164
Interest accrued 18,435 18,364
Deferred income taxes 2,965 2,965
Other 14,415 12,117
Total current liabilities 306,680 204,283
DEFERRED CREDITS:
Regulatory liabilities associated
with deferred investment tax
credits 68,424 69,396
Deferred income taxes 419,520 420,268
Regulatory liabilities associated
with income taxes 28,075 28,075
Regulatory liabilities - other 2,122 4,161
Other 69,298 68,975
Total deferred credits 587,439 590,875
COMMITMENTS AND CONTINGENT LIABILITIES
TOTAL $ 2,459,207 $ 2,421,790
The accompanying notes are an integral part of these statements.
Idaho Power Company
Consolidated Statements of Capitalization
June 30, December 31,
1999 % 1998 %
(Thousands of Dollars)
COMMON STOCK EQUITY:
Common stock $ 94,031 $ 94,031
Premium on capital stock 362,169 362,156
Capital stock expense (3,821) (3,823)
Retained earnings 268,017 252,137
Accumulated other comprehensive
income 226 226
Total common stock equity 720,622 704,727
46 43
PREFERRED STOCK:
4% preferred stock 15,919 15,968
7.68% Series, serial preferred
stock 15,000 15,000
7.07% Series, serial preferred
stock 25,000 25,000
Auction rate preferred stock 50,000 50,000
Total preferred stock 105,919 7 105,968 7
LONG-TERM DEBT:
First mortgage bonds:
8.65 % Series due 2000 80,000 80,000
6.93 % Series due 2001 30,000 30,000
6.85 % Series due 2002 27,000 27,000
6.40 % Series due 2003 80,000 80,000
8 % Series due 2004 50,000 50,000
5.83 % Series due 2005 60,000 60,000
Maturing 2021 through 2031 with
rates ranging from 7.5% to
9.52% 230,000 230,000
Total first mortgage bonds 557,000 557,000
Amount due within one year (80,000) -
Net first mortgage bonds 477,000 557,000
Pollution control revenue bonds:
7 1/4% Series due 2008 4,360 4,360
8.30 % Series 1984 due 2014 49,800 49,800
6.05 % Series 1996A due 2026 68,100 68,100
Variable Rate Series 1996B due
2026 24,200 24,200
Variable Rate Series 1996C due
2026 24,000 24,000
Total pollution control
revenue bonds 170,460 170,460
REA notes 1,452 1,489
Amount due within one year (75) (74)
Net REA notes 1,377 1,415
American Falls bond guarantee 19,885 20,130
Milner Dam note guarantee 11,700 11,700
Debt related to investments in
affordable housing with rates
ranging from 6.03% to 8.59%
due 1999 to 2009 65,095 62,103
Amount due within one year (6,118) (5,955)
Net affordable housing debt 58,977 56,148
Other subsidiary debt 638 623
Unamortized premium/discount - Net (1,490) (1,539)
Total long-term debt 738,547 47 815,937 50
TOTAL CAPITALIZATION $ 1,565,088 100 $ 1,626,632 100
The accompanying notes are an integral part of these statements.
Idaho Power Company
Consolidated Statements of Cash Flows
Six Months Ended June 30,
1999 1998
(Thousands of Dollars)
OPERATING ACTIVITIES:
Net income $ 53,580 $ 51,224
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation and
amortization 47,592 43,562
Deferred taxes and
investment tax credits (2,105) (2,453)
Accrued PCA costs 15,122 14,081
Change in:
Accounts receivable and
prepayments 1,798 9,808
Accrued unbilled revenue 1,024 1,001
Materials and supplies and
fuel stock (4,267) (1,057)
Accounts payable (3,414) (27,383)
Taxes accrued 2,242 3,232
Other current assets and
liabilities 2,369 (289)
Other - net (7,681) (672)
Net cash provided by operating
activities 106,260 91,054
INVESTING ACTIVITIES:
Additions to utility plant (50,249) (43,659)
Investments in affordable housing
projects (10,591) (10,125)
Investments in company owned life
insurance (6,749) -
Other - net 2,803 (3,961)
Net cash used in investing
activities (64,786) (57,745)
FINANCING ACTIVITIES:
Issuance of long-term debt related
to affordable housing projects 7,271 4,896
Retirement of long-term debt related
to affordable housing projects (4,279) -
Dividends on common stock (34,979) (34,979)
Dividends on preferred stock (2,720) (2,822)
Decrease in short-term borrowings (21,232) (4,989)
Other - net (56) 110
Net cash used in financing
activities (55,995) (37,784)
Decrease in cash and cash
equivalents (14,521) (4,475)
Cash and cash equivalents beginning
of period 20,029 6,905
Cash and cash equivalents at end
of period $ 5,508 $ 2,430
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Cash paid during the period for:
Income taxes (including amounts
paid to parent) $ 23,844 $ 27,132
Interest (net of amount
capitalized) $ 29,466 $ 25,078
The accompanying notes are an integral part of these statements.
Idaho Power Company
Notes to the Consolidated Financial Statements
On October 1, 1998, IDACORP, Inc. (IDACORP) became the parent of
Idaho Power Company and its subsidiaries (IPC). At that time
IPC's ownership interests in two subsidiaries were transferred to
IDACORP at book value. IPC's Statement of Consolidated Income for
the six months ending June 30, 1998 includes $1.8 million of net
income attributable to the transferred subsidiaries.
In 1999 the gas trading operations of IPC were transferred to
another subsidiary of IDACORP. The subsidiary assumed the
accounts receivable and accounts payable related to gas trading
operations, and IPC recorded the transfer as a reduction of
accounts receivable from the subsidiary. IPC's Consolidated
Balance Sheet as of December 31, 1998 included $21.4 million of
assets and $28.4 million of liabilities related to gas
operations.
Except as modified below, the Notes to the Consolidated Financial
Statements of IDACORP also contained in this 10-Q Report are
incorporated herein by reference insofar as they relate to IPC.
Note 1 - Summary of Significant Accounting Policies
Note 3 - Preferred Stock of Idaho Power Company
Note 4 - Financing
Note 5 - Commitments and Contingent Liabilities
Note 6 - Regulatory Issues
Note 7 - New Accounting Pronouncement
2. INCOME TAXES:
IPC's effective tax rate for the first six months increased
from 30.3 percent in 1998 to 33.6 percent in 1999.
Reconciliations between the statutory income tax rate and the
effective rates for the six-month periods ended June 30, 1999
and 1998 are as follows:
1999 1998
Amount Rate Amount Rate
Computed income taxes based on
statutory federal income tax
rate $ 28,224 35.0% $ 25,747 35.0%
Changes in taxes resulting from:
Current state income taxes 4,230 5.2 3,058 4.2
Net depreciation 2,662 3.3 2,677 3.6
Investment tax credits
restored (1,481) (1.8) (1,462) (2.0)
Removal costs (375) (0.5) (877) (1.2)
Repair allowance (1,137) (1.4) (1,564) (2.1)
Affordable housing credits (4,222) (5.2) (3,177) (4.3)
Settlement of prior year
tax returns - - (1,000) (1.4)
Other (840) (1.0) (1,064) (1.5)
Total $ 27,061 33.6% $ 22,338 30.3%
8. DERIVATIVE FINANCIAL INSTRUMENTS:
The notional amount of open commodity derivative positions as
of June 30, 1999 was a net long electricity position of 305
MW. The loss in fair value of commodity derivative positions
(including electricity forwards, futures, options and swaps)
included in income before income taxes for the six months
ended June 30, 1999 was $(5.2) million.
9. INDUSTRY SEGMENT INFORMATION:
IPC's dominant operating segment is its regulated utility
operations. IPC's non-utility operating segments do not
individually constitute more than 10% of enterprise revenues,
income or assets, nor in aggregate do they comprise more than
25% of enterprise revenues, income or assets.
IPC's primary business is the generation, transmission,
distribution, purchase and sale of electricity. Substantially all
of IPC's revenue comes from the sale of electricity and related
services, predominately in the United States. IPC subsidiaries
also sell solar electric products and systems, control systems
integration services for substations and semiconductor
manufacturing, and miscellaneous other services. These revenues,
however, are not significant.
The following table summarizes the segment information for the
regulated electric operations, with a reconciliation to total
enterprise information:
Regulated
Electric Total
Operations Other Enterprise
(Thousands of Dollars)
Six months ended June 30, 1999:
Revenues $ 339,222 $ - $ 339,222
Net income 46,097 7,483 53,580
Total assets at June 30, 1999 2,339,057 120,150 2,459,207
Six months ended June 30, 1998:
Revenues $ 338,045 $ - $ 338,045
Net income 46,655 4,569 51,224
Total assets at December 31, 1998 2,312,919 108,871 2,421,790
INDEPENDENT ACCOUNTANTS' REPORT
Idaho Power Company
Boise, Idaho
We have reviewed the accompanying consolidated balance
sheet and statement of capitalization of Idaho Power
Company and subsidiaries as of June 30, 1999, and the
related consolidated statements of income for the three
and six month periods ended June 30, 1999 and 1998 and
consolidated statements of cash flows for the six month
periods ended June 30, 1999 and 1998. These financial
statements are the responsibility of the Company's
management.
We conducted our review in accordance with standards
established by the American Institute of Certified
Public Accountants. A review of interim financial
information consists principally of applying analytical
procedures to financial data and making inquiries of
persons responsible for financial and accounting
matters. It is substantially less in scope than an
audit conducted in accordance with generally accepted
auditing standards, the objective of which is the
expression of an opinion regarding the financial
statements taken as a whole. Accordingly, we do not
express such an opinion.
Based on our review, we are not aware of any material
modifications that should be made to such consolidated
financial statements for them to be in conformity with
generally accepted accounting principles.
We have previously audited, in accordance with
generally accepted auditing standards, the consolidated
balance sheet and statement of capitalization of Idaho
Power Company and subsidiaries as of December 31, 1998,
and the related consolidated statements of income,
comprehensive income, retained earnings, and cash flows
for the year then ended (not presented herein); and in
our report dated January 29, 1999, we expressed an
unqualified opinion on those consolidated financial
statements. In our opinion, the information set forth
in the accompanying consolidated balance sheet and
statement of capitalization as of December 31, 1998 is
fairly stated, in all material respects, in relation to
the consolidated balance sheet and statement of
capitalization from which it has been derived.
DELOITTE & TOUCHE LLP
Boise, Idaho
July 30, 1999
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
In Management's Discussion and Analysis we explain the general
financial condition and results of operations for IDACORP, Inc.
and subsidiaries (IDACORP or the Company) and for Idaho Power
Company and subsidiaries (IPC). IPC, an electric utility, is
IDACORP's principal operating subsidiary, accounting for over 90
percent of IDACORP's assets, revenue and net income. Unless we
indicate otherwise, this discussion explains the material changes
in results of operations and the financial condition of both the
Company and IPC. This discussion should be read in conjunction
with the accompanying consolidated financial statements of both
IDACORP and IPC.
This discussion updates the discussion that we included in our
Annual Report on Form 10-K for the year ended December 31, 1998.
This discussion should be read in conjunction with the discussion
in the annual report.
We have reclassified our electricity trading activities from "Off-
system sales" and "Purchased power" to "Energy trading
activities - net" on the Consolidated Statements of Income for
all periods presented. This change was made to more clearly
report the results of our utility operations and our energy
trading activities.
FORWARD-LOOKING INFORMATION:
In connection with the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 (Reform Act), we are
hereby filing cautionary statements identifying important factors
that could cause our actual results to differ materially from
those projected in forward-looking statements (as such term is
defined in the Reform Act) made by or on behalf of the Company
and IPC in this quarterly report on Form 10-Q, in presentations,
in response to questions or otherwise. Any statements that
express, or involve discussions as to expectations, beliefs,
plans, objectives, assumptions or future events or performance
(often, but not always, through the use of words or phrases such
as "anticipates", "believes", "estimates", "expects", "intends",
"plans", "predicts", "projects", "will likely result", "will
continue", or similar expressions) are not statements of
historical facts and may be forward-looking. Forward-looking
statements involve estimates, assumptions, and uncertainties and
are qualified in their entirety by reference to, and are
accompanied by, the following important factors, which are
difficult to predict, contain uncertainties, are beyond our
control and may cause actual results to differ materially from
those contained in forward-looking statements:
prevailing governmental policies and regulatory actions,
including those of the FERC, the IPUC, the OPUC, and the PUCN,
with respect to allowed rates of return, industry and rate
structure, acquisition and disposal of assets and facilities,
operation and construction of plant facilities, recovery of
purchased power and other capital investments, and present or
prospective wholesale and retail competition (including but not
limited to retail wheeling and transmission costs);
economic and geographic factors including political and
economic risks;
changes in and compliance with environmental and safety laws
and policies;
weather conditions;
population growth rates and demographic patterns;
competition for retail and wholesale customers;
Year 2000 issues;
pricing and transportation of commodities;
market demand, including structural market changes;
changes in tax rates or policies or in rates of inflation;
changes in project costs;
unanticipated changes in operating expenses and capital
expenditures;
capital market conditions;
competition for new energy development opportunities; and
legal and administrative proceedings (whether civil or
criminal) and settlements that influence the business and
profitability of the Company.
Any forward-looking statement speaks only as of the date on which
such statement is made, and we undertake no obligation to update
any forward-looking statement to reflect events or circumstances
after the date on which such statement is made or to reflect the
occurrence of unanticipated events. 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.
RESULTS OF OPERATIONS:
Earnings per Share and Book Value
Earnings per share of common stock (basic and diluted) was $0.56
for the quarter ended, and $1.35 per share for the six months
ended June 30, 1999, increases of $0.02 (3.7 percent) from the
same quarter last year, and $0.06 (4.7 percent) for the six-month
period. At June 30, 1999, the book value per share of IDACORP
common stock was $19.83, compared to $19.27 at the same date in
1998.
General Business Revenue
Our general business revenue is dependent on many factors,
including the number of customers we serve, the rates we charge,
and weather conditions (temperature and precipitation) in our
service territory.
Compared to the same periods in 1998, the number of general
business customers we served increased 3.0 percent for the second
quarter and 3.1 percent year-to-date. This increase was due
primarily to economic growth in our service territory.
Our revenue per MWh increased 1.7 percent for the quarter and 5.9
percent year-to-date, compared to 1998. Changes in revenue per
MWh result primarily from the annual rate adjustments authorized
by regulatory authorities. These adjustments are discussed below
in "PCA" and "Regulatory Settlement."
Temperatures in the first half of 1999 were more extreme than in
1998, which contributed to increased sales of energy. Combined,
heating degree days and cooling degree days, common measures used
in the utility industry to analyze demand, were above 1998 levels
by 27.6 percent for the quarter and 15.4 percent year-to-date.
Compared to 1998, the average kWh's sold per general business
customer increased 2.1 percent for the quarter and 1.9 percent
year-to-date.
The combination of these factors resulted in general business
revenue increases of $8.5 million (7.1 percent) for the quarter
and $26.0 million (11.1 percent) year-to-date compared to 1998.
Off-System Sales
Off-system sales are comprised of long-term sales contracts and
opportunity sales made when we have surplus energy available.
The decreases of $9.0 million (23.3 percent) for the quarter and
$20.6 million (23.5 percent) year-to-date are due primarily to
decrease in MWhs sold of 14.1 percent for the quarter and 16.1
percent year-to-date. Decreased sales resulted primarily from
reduced market opportunities.
Expenses
Purchased power expenses decreased $2.7 million (10.8 percent)
for the quarter and $12.6 million (23.7 percent) year-to-date.
These decreases are due primarily to reduced system requirements
in 1999.
Fuel expenses increased $4.6 million (31.8 percent) for the
quarter and $5.9 million (16.7 percent) year-to-date. These
increases are due primarily to 37.1 percent and 15.7 percent
respective increases in MWh generated at our coal-fired power
plants to meet operating requirements.
The PCA component of expenses decreased $7.6 million for the
quarter. The PCA increases expense when actual power supply
costs are below the costs forecasted in the annual PCA filing,
and decreases expense when actual power supply costs are above
the forecast. In the second quarter of 1999, actual power supply
costs were below what had been forecast, but not to the extent
that costs were below forecast in the second quarter of 1998.
The 1998-99 forecast used to set the 1998-99 PCA rate adjustment,
anticipated near-normal streamflow conditions. Actual conditions
have been better than forecasted and are discussed below in
"Streamflow Conditions." We discuss the PCA in more detail
below in "PCA."
Other operating expenses increased $2.6 million (6.7 percent) for
the quarter and $2.6 million (3.4 percent) year-to-date. This
increase is due primarily to increased MWh generation at our coal-
fired generating facilities.
Other
Other income increased $2.5 million (37.1 percent) for the
quarter and $3.9 million (45.4 percent) year to date, due
primarily to improved results from energy marketing activities.
Income taxes increased $1.3 million (14.2 percent) for the
quarter and $4.9 million (21.9 percent) due primarily to
increased net income before taxes and the impact of a tax
settlement which reduced expenses in 1998.
LIQUIDITY AND CAPITAL RESOURCES:
Cash Flow
For the six months ended June 30, 1999, IDACORP generated $85.4
million in net cash from operations. After deducting for
dividends, net cash generation from operations provided
approximately $50.5 million for our construction program and
other capital requirements.
Cash Expenditures
We estimate that our total cash construction expenditures for
1999 will be approximately $115.5 million. This estimate is
subject to revision in light of changing economic, regulatory,
and environmental factors. During the first six months of 1999,
we spent approximately $51.5 million for construction. Our
primary financial commitments and obligations are related to
contracts and purchase orders associated with ongoing
construction programs. To the extent required, we expect to
finance these commitments and obligations by using both
internally generated funds and externally financed capital. At
June 30, 1999, our short-term borrowings totaled $48.2 million.
Financing Program
IDACORP has a $300.0 million shelf registration statement that
can be used for the issuance of unsecured debt securities and
preferred or common stock. At June 30, 1999, none had been
issued.
IPC has a $200.0 million shelf registration statement that can be
used for both First Mortgage Bonds (including Medium Term Notes)
and Preferred Stock of which $83.0 million remains available at
June 30, 1999.
Our objective is to maintain capitalization ratios of
approximately 45 percent common equity, 5 to 10 percent preferred
stock, and the balance in long-term debt. For the twelve-month
period ended June 30, IDACORP's consolidated pre-tax interest
coverage was 2.89 times.
REGULATORY ISSUES:
PCA
IPC has a PCA mechanism that provides for annual adjustments to
the rates we charge to our Idaho retail customers. These
adjustments, which take effect annually on May 16, are based on
forecasts of net power supply costs and the true-up of the prior
year's forecast. The difference between the actual costs
incurred and the forecasted costs is deferred, with interest, and
trued-up in the next annual rate adjustment.
For the 1999 - 2000 rate year, actual power costs have been less
than forecast, due to better than forecast hydroelectric
generating conditions. For the rate period we have recorded a
reduction to regulatory assets of $7.1 million as of June 30,
1999.
Our May 16, 1999 rate adjustment reduced Idaho customer rates by
9.2 percent. The decrease results from projected above-average
hydroelectric generating conditions and the true-up of the 1998-
99 rate period. Overall, IPC's annual general business revenues
are expected to decrease by $40.4 million.
Regulatory Settlement
IPC has a settlement agreement with the IPUC that remains in
effect through 1999. Under the terms of the settlement, when
earnings in our Idaho jurisdiction exceed an 11.75 percent return
on year-end common equity, we set aside 50 percent of the excess
for the benefit of our Idaho retail customers.
On April 7, 1999 we submitted our 1998 annual earnings sharing
compliance filing to the IPUC. This filing indicated that there
was almost $6.4 million in earnings before authorized deductions,
or $3.3 million after authorized deductions, available for the
benefit of our Idaho customers.
On June 16, 1999 IPC filed a supplement to the April 7, 1999
annual earnings sharing compliance filing requesting that the
$3.3 million of remaining 1997 and 1998 revenue sharing be
refunded to its customers. On July 19, 1999 the IPUC issued
Order No. 28099 in Case IPC-E-99-2, refunding $0.7 million to
special contract and large customers. The remaining balance
of $2.6 million has been deferred with interest until May
2000.
OTHER MATTERS:
Energy Trading
Energy trading activity, which includes both electricity and
natural gas, is reported on a fair value basis with gains and
losses recorded in other income.
Inherent in the energy trading business are risks related to
market movements and the creditworthiness of counterparties.
When buying and selling energy, the high volatility of energy
prices can have a significant impact on profitability if not
managed. Also, counterparty creditworthiness is key to ensuring
that transactions entered into withstand dramatic market
fluctuations.
To mitigate these risks while implementing our business strategy,
the Board of Directors gave approval for executive management to
form a Risk Management Committee, comprised of officers of
IDACORP and subsidiaries, to oversee a risk management program.
The program is intended to minimize fluctuations in earnings
while managing the volatility of energy prices. Embedded within
the Risk Management policy and procedures is a credit policy
requiring a credit evaluation of all counterparties. The
objective of our risk management program is to mitigate commodity
price risk, credit risk, and other risks related to the energy
trading business.
Streamflow Conditions
We monitor the effect of streamflow conditions on Brownlee
Reservoir, the water source for our three Hells Canyon
hydroelectric projects. In a typical year, these three projects
combine to produce about half of our generated electricity.
Inflows into Brownlee result from a combination of precipitation,
storage, and ground water conditions. Our current projection for
April-July 1999 inflow into Brownlee Reservoir, Idaho Power's key
water storage facility, is 8.0 MAF, compared to the 70-year
median of 4.9 MAF and 1998's 8.8 MAF.
Year 2000
Many existing computer systems use only two digits to identify a
year in the date field. These programs were designed and
developed without considering the impact of the upcoming change
in the century. Unless proper modifications are made, the
program logic in many of these systems will start to produce
erroneous results because, among other things, the systems will
read the date "01/01/00" as being January 1 of the year 1900 or
another incorrect date. In addition, the systems may fail to
detect that the year 2000 is a leap year. Similar problems could
arise prior to the year 2000 as dates in the next millennium are
entered into systems that are not Year 2000 compliant.
We recognize the Year 2000 problem as a serious threat to the
Company and our customers. Our Year 2000 effort has been
underway for over two years and is being addressed at the highest
levels within the Company. IPC's Vice President of Corporate
Services is responsible for coordinating the corporate effort.
IPC vice presidents and other IDACORP subsidiary presidents are
responsible for addressing the problem within their respective
business units and each has assigned a Year 2000 Project Leader
to execute the project plan. Each subsidiary President is
responsible for addressing the problem within their subsidiary in
coordination with the corporate effort. In addition, we have
appointed a full-time Year 2000 Project Manager to direct the
project. Additional staff has been committed to complete the
conversion and implementation needed to bring non-compliant items
into compliance. This staff consists of a mix of end users, IPC
Information Services staff and contract programmers. Currently,
there are over 20 full-time employees devoted to the project with
dozens of others involved to varying degrees. We have retained
third parties that have completed technical and legal audits of
our plan. With respect to the technical audit, we have
implemented the recommendations as recommended by the Y2K
Steering Committee. The legal audit recommendations are also
being implemented.
We originally targeted July 1999 as the date by which we expect
to be ready for the Year 2000. This means that all critical
systems are expected to be capable of handling the century
rollover and that we will be able to continue servicing our
customers without interruption. It also means that we expect to
have identified all of the less critical systems and that
contingency and/or repair plans are expected to be in place for
dealing with the change of century. At this time, all but one of
our critical systems has met this target, with the lone exception
scheduled for completion in August.
We are following a detailed project plan. The methodology is
modeled after those used by some of the top companies in the
world and has been adapted to meet our unique requirements. This
process includes all the phases and steps commonly found in such
plans, including the (I) identification and analysis of critical
systems, key manufacturers, service providers, embedded systems,
generation plants (parts of which are owned by IPC but are
operated by another electric utility), (ii) remediation and
testing, (iii) education and awareness and (iv) contingency
planning.
With respect to that key component of the methodology related to
the identification of critical systems, we have identified those
critical systems that must be Year 2000 compliant in order to
continue operations. Many are already compliant or are in the
process of vendor upgrades to become compliant. The largest of
these critical systems and their status regarding compliance are
set forth below:
System Description Status
Business The business systems include the PeopleSoft and
Systems financial and administrative functions PassPort are
common to most companies. Business both compliant
systems include accounts payable, vendor
general ledger, accounts receivable, packages.
labor entry, inventory, purchasing, Testing to
cash management, budgeting, asset verify
management, payroll, and financial compliance is
reporting. complete.
Customer This system is used to bill customers, In-house
Information log calls from customers and create system has
System service or work requests and track been repaired;
them through completion, among other testing to
things. At this time, the Company verify
uses an in-house developed, mainframe- compliance is
based Customer Information System to complete
accomplish these tasks.
Energy The most critical function the Company The packages
Management offers is the delivery of electricity comprising the
System from the source to the consumer. This EMS are fully
must be done with minimal interruption compliant with
in the midst of high demand, weather the latest
anomalies and equipment failures. To releases.
accomplish this, the Company relies on Testing and
a server-based energy management rollout are
system provided by Landis & Gyr. This over 95%
system monitors and directs the complete and
delivery of electricity throughout the will be
Company's service area. completed in
August 1999.
Metering The Company relies on several In-house code
Systems processes for metering electricity has been
usage, including some hand-held repaired and
devices with embedded chips. It is tested.
critical for metering systems to Vendor
operate without interruption so as not packages have
to jeopardize the Company's revenue been upgraded.
stream. Testing of
critical
components is
complete.
Embedded There is a category of systems on Testing is
Systems which the Company is highly reliant complete.
called embedded systems. These are
typically computer chips that provide
for automated operations within some
device other than a computer such as a
relay or a security system. The
Company is highly reliant on these
systems throughout its generation and
delivery systems to monitor and allow
manual or automatic adjustments to the
desired devices. Those devices with
chips that were not Year 2000
compliant, where the chip affected the
application of the device, were
replaced.
Other The Company also relies on a number of In various
Systems other important systems to support stages of
engineering, human resources, safety repair and
and regulatory compliance, etc. testing.
Regarding third parties, the plan methodology has required us to
identify those third parties with which we have a material
relationship. We have identified as material (1) our ownership
interest in thermal generating facilities which are operated and
maintained by third party electric utilities; (2) our fuel
suppliers for those thermal generating facilities; and (3) our
telecommunication providers. In addition, we have identified 93
key manufacturers that provide materials and supplies to us.
With respect to the thermal plants, fuel suppliers and
telecommunication providers, the plan methodology includes a
process wherein some members of the Year 2000 team meet
periodically with the third parties to assess the status of their
efforts. This is an ongoing process and will continue until such
time as the third party has completed compliance testing and
certified to us that they are compliant. Regarding the 93 key
manufacturers we have contacted all via mail and requested they
complete a survey indicating the extent and status of their Year
2000 efforts. The survey is followed up with contact by
telephone if necessary. We are over 95% complete with that
effort.
Finally, we are connected to an electric grid that connects
utilities throughout the western portion of North America. This
interconnection is essential to the reliability and operational
integrity of each connected utility. This also means that
failure of one electric utility in the interconnected grid could
cause the failure of others. In the context of the Year 2000
problem, this interconnectivity compounds the challenge faced by
the electric utility industry. Our Company could do a very
thorough and effective job of becoming Year 2000 compliant and
yet encounter difficulties supplying services and energy because
another utility in the interconnected grid failed to achieve Year
2000 compliance. In this regard, we are working closely with
other electric industry organizations concerned with reliability
issues and technical collaboration. As part of this
collaboration we participated and successfully completed our
roles in a nationwide Y2K drill for electric utilities, held on
April 9, 1999 and plan to participate in a similar drill in
September 1999.
Our estimate of the cost of our Year 2000 plan remains at
approximately $5.3 million. This includes costs incurred to date
of approximately $2.9 million and estimated costs through the
year 2000. This level of expenditure is not expected to have any
material effect on our operations or our financial position.
Funds to cover Year 2000 costs in 1999 have been budgeted by
business entity and within the Information Services Department
with approximately 10 percent of the Information Services budget
used for remediation. No information services department
projects have been deferred due to the Company's year 2000
efforts.
The Year 2000 issue poses risks to our internal operations due to
the potential inability to carry on our business activities and
from external sources due to the potential impact on the ability
of our customers to continue their business activities. The
major applications that pose the greatest risks internally are
those systems, embedded or otherwise, which impact the
generation, transmission and distribution of energy and the
metering and billing systems. The potential risks related to
these systems are electric service interruptions to customers and
associated reduction in loads and revenue and interrupted data
gathering and billing and the resultant delay in receipt of
revenues. All of this would negatively impact our relationship
with our customers that may enhance the likelihood of losing
customers in a restructured industry. Externally, those
customers that inadequately prepare for the Year 2000 issue may
be unable to continue their business activities. This would
affect us in a number of ways. Our loads and revenue would be
reduced because of the lost load from discontinued business
activities, and customers who lose jobs because of discontinued
business activities may face difficulties in paying their power
bills. The impact of this on us is dependent upon the number and
the size of those businesses that are forced to discontinue
business activities because of the Year 2000 issue.
As part of our Year 2000 plan, we have developed and are
finalizing our contingency plans, which should be completed by
the end of August 1999.
New Accounting Pronouncement
In June 1998 the FASB issued SFAS No. 133 "Accounting for
Derivative Instruments and Hedging Activities." This statement
establishes accounting and reporting standards for derivative
financial instruments and other similar instruments and for
hedging activities. It was originally effective for fiscal years
beginning after June 15, 1999. In June 1999 the FASB issued SFAS
No. 137 "Accounting for Derivative Instruments and Hedging
Activities - Deferral of the Effective Date of FASB Standard No.
133" which defers the effective date of SFAS No. 133 one year. We
are reviewing SFAS No. 133 to determine its effects on our
financial position and results of operations.
Item 4. Submission of Matters to a Vote of Security Holders
(a) Regular annual meeting of IDACORP'S stockholders,
held May 5, 1999 in Boise, Idaho.
(b) Directors elected at the meeting for a three-year
term:
Roger L. Breezley
John B. Carley
Jack K. Lemley
Evelyn Loveless
Directors elected at the meeting for a two-year
term:
Rotchford L. Barker
Robert D. Bolinder
Jon H. Miller
Robert A. Tinstman
Directors elected at the meeting for a one-year
term:
Jan B. Packwood
Peter T. Johnson
Joseph W. Marshall
Peter S. O'Neill
(c)(1)a) To elect twelve Director Nominees; and
b) To ratify the selection of Deloitte & Touche
LLP (D&T) as independent auditors for the fiscal
year ending December 31, 1999.
(2) Director Nominees
Class of Stock For Withhold Total Voted
Common 32,778,990 460,854 33,239,844
(3) Proposal to Ratify Selection of D&T as Independent
Auditors
Class of Stock For Against Abstain Total Voted
Common 32,760,864 166,853 312,127 33,239,844
(4) Election of Directors
Name Votes For Votes Withheld
Rotchford L. Barker 32,820,115 419,729
Robert D. Bolinder 32,805,195 434,649
Roger L. Breezley 32,805,773 434,071
John B. Carley 32,817,616 422,228
Peter T. Johnson 32,820,366 419,478
Jack K. Lemley 32,823,498 416,346
Evelyn Loveless 32,809,426 430,418
Jon H. Miller 32,782,809 457,035
Joseph W. Marshall 32,799,548 440,296
Peter S. O'Neill 32,784,937 454,907
Jan B. Packwood 32,820,250 419,594
Robert A. Tinstman 32,778,990 460,854
Item 4. Submission of Matters to a Vote of Security Holders
(a) Regular annual meeting of Idaho Power Company's
stockholders, held May 5, 1999 in Boise, Idaho.
(b) Directors elected at the meeting for a three-year
term:
Roger L. Breezley
John B. Carley
Jack K. Lemley
Evelyn Loveless
Continuing Directors:
Rotchford L. Barker Jan B. Packwood
Robert D. Bolinder Peter T. Johnson
Jon H. Miller Joseph W. Marshall
Robert A. Tinstman Peter S. O'Neill
(c)(1)a) To elect four Director Nominees; and
b) To ratify the selection of Deloitte & Touche
LLP (D&T) as independent auditors for the
fiscal year ending December 31, 1999.
(2) Director Nominees
Class of Stock For Withhold Total Voted
Common 37,612,351 - 37,612,351
4% Preferred 2,133,120 42,420 2,175,540
7.68% Preferred 130,555 315 130,870
Total 39,876,026 42,735 39,918,761
(3) Proposal to Ratify Selection of D&T as Independent Auditors
Class of Stock For Against Abstain Total Voted
Common 37,612,351 - - 37,612,351
4% Preferred 2,141,100 17,340 17,100 2,175,540
7.68% Preferred 130,460 200 210 130,870
Total 39,883,911 17,540 17,310 39,918,761
(4) Election of Directors
Name Votes For Votes Withheld
Roger L. Breezley 39,876,026 42,735
John B. Carley 39,876,026 42,735
Jack K. Lemley 39,876,026 42,735
Evelyn Loveless 39,876,026 42,735
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
Exhibit File Number As Exhibit
*2 333-48031 2 Agreement and Plan of Exchange
between IDACORP, Inc., and IPC
dated as of February 2, 1998.
*3(a) 33-00440 4(a)(xiii) Restated Articles of Incorporation
of IPC as filed with the Secretary
of State of Idaho on June 30, 1989.
*3(a)(I) 33-65720 4(a)(ii) Statement of Resolution
Establishing Terms of Flexible
Auction Series A, Serial Preferred
Stock, Without Par Value
(cumulative stated value of
$100,000 per share) of IPC, as
filed with the Secretary of State
of Idaho on November 5, 1991.
*3(a)(ii) 33-65720 4(a)(iii) Statement of Resolution
Establishing Terms of 7.07% Serial
Preferred Stock, Without Par Value
(cumulative stated value of $100
per share) of IPC, as filed with
the Secretary of State of Idaho on
June 30, 1993.
*3(b) 33-41166 4(b) Waiver resolution to Restated
Articles of Incorporation of IPC
adopted by Shareholders on May 1,
1991.
3(c) By-laws of IPC amended on July 8,
1999, and presently in effect.
*3(d) 33-56071 3(d) Articles of Share Exchange of
IDACORP, Inc. as filed with the
Secretary of State of Idaho on
September 29, 1998.
*3(e) 333-64737 3.1 Articles of Incorporation of
IDACORP, Inc.
*3(f) 333-64737 3.2 Articles of Amendment to Articles
of Incorporation of IDACORP, Inc.
as filed with the Secretary of
State of Idaho on March 9, 1998.
*3(g) 333-00139 3(b) Articles of Amendment to Articles
of Incorporation of IDACORP, Inc.
creating A Series Preferred Stock,
without par value as filed with the
Secretary of State of Idaho on
September 17, 1998.
3(h) Amended Bylaws of IDACORP, Inc. as
of July 8, 1999.
*4(a)(I) 2-3413 B-2 Mortgage and Deed of Trust, dated
as of October 1, 1937, between IPC
and Bankers Trust Company and
R. G. Page, as Trustees.
*4(a)(ii) IPC Supplemental Indentures to
Mortgage and Deed of Trust:
IPC Number Dated
1-MD B-2-a First July 1, 1939
2-5395 7-a-3 Second November 15, 1943
2-7237 7-a-4 Third February 1, 1947
2-7502 7-a-5 Fourth May 1, 1948
2-8398 7-a-6 Fifth November 1, 1949
2-8973 7-a-7 Sixth October 1, 1951
2-12941 2-C-8 Seventh January 1, 1957
2-13688 4-J Eighth July 15, 1957
2-13689 4-K Ninth November 15, 1957
2-14245 4-L Tenth April 1, 1958
2-14366 2-L Eleventh October 15, 1958
2-14935 4-N Twelfth May 15, 1959
2-18976 4-O Thirteenth November 15, 1960
2-18977 4-Q Fourteenth November 1, 1961
2-22988 4-B-16 Fifteenth September 15, 1964
2-24578 4-B-17 Sixteenth April 1, 1966
2-25479 4-B-18 Seventeenth October 1, 1966
2-45260 2(c) Eighteenth September 1, 1972
2-49854 2(c) Nineteenth January 15, 1974
2-51722 2(c)(I) Twentieth August 1, 1974
2-51722 2(c)(ii) Twenty-first October 15, 1974
2-57374 2(c) Twenty-second November 15, 1976
2-62035 2(c) Twenty-third August 15, 1978
33-34222 4(d)(iii) Twenty-fourth September 1, 1979
33-34222 4(d)(iv) Twenty-fifth November 1, 1981
33-34222 4(d)(v) Twenty-sixth May 1, 1982
33-34222 4(d)(vi) Twenty-seventh May 1, 1986
33-00440 4(c)(iv) Twenty-eighth June 30, 1989
33-34222 4(d)(vii) Twenty-ninth January 1, 1990
33-65720 4(d)(iii) Thirtieth January 1, 1991
33-65720 4(d)(iv) Thirty-first August 15, 1991
33-65720 4(d)(v) Thirty-second March 15, 1992
33-65720 4(d)(vi) Thirty-third April 16, 1993
1-3198 4 Thirty-fourth December 1, 1993
Form 8-K
Dated
12/17/93
4(b) Agreement of IPC to furnish certain
debt instruments.
*4(c) 33-65720 4(e) Rights Agreement dated January 11,
1990, between IPC and First Chicago
Trust Company of New York, as
Rights Agent (The Bank of New York,
successor Rights Agent).
*4(c)(I) 1-3198 4(e)(I) Amendment dated as of January 30,
Form 10-K 1998, related to agreement filed as
for 1997 Exhibit 4(c).
*4(d) 1-14465 4 Rights Agreement, dated as of
Form 8-K September 10, 1998, between
dated IDACORP, Inc. and the Bank of New
September York as Rights Agent.
15, 1998
*10(a)1 1-3198 10(n)(I) The Revised Security Plan for
Form 10-K Senior Management Employees - a non-
for 1994 qualified, deferred compensation
plan effective August 1, 1996.
*10(b)1 1-3198 10(n)(ii) The Executive Annual Incentive Plan
Form 10-K for senior management employees of
for 1994 IPC effective January 1, 1995.
*10(c)1 1-3198 10(n)(iii) The 1994 Restricted Stock Plan for
Form 10-K officers and key executives of
for 1994 IDACORP, Inc. and IPC effective
July 1, 1994.
*10(d)1 1-14465 10(h)(iv) The Revised Security Plan for Board
1-3198 of Directors - a non-qualified,
Form 10-K deferred compensation plan
For 1998 effective August 1, 1996, revised
March 2, 1999.
10(e)1 IDACORP, Inc. Non-Employee
Directors Stock Compensation Plan
*10(f) 1-3198 10(y) as of May 17, 1999.
Form 10-K
for 1997 Executive Employment Agreement
dated November 20, 1996 between IPC
and Richard R. Riazzi.
10(g)
Exective Employment Agreement dated
April 12, 1999 between IPC and
Marlene Williams.
12 Statement Re: Computation of Ratio
of Earnings to Fixed Charges.
(IDACORP, Inc.)
12(a) Statement Re: Computation of
Supplemental Ratio of Earnings to
Fixed Charges. (IDACORP, Inc.)
12(b) Statement Re: Computation of Ratio
of Earnings to Combined Fixed
Charges and Preferred Dividend
Requirements. (IDACORP, Inc.)
12(c) Statement Re: Computation of
Supplemental Ratio of Earnings to
Combined Fixed Charges and
Preferred Dividend Requirements.
(IDACORP, Inc.)
12(d) Statement Re: Computation of Ratio
of Earnings to Fixed Charges. (IPC)
12(e) Statement Re: Computation of
Supplemental Ratio of Earnings to
Fixed Charges. (IPC)
12(f) Statement Re: Computation of Ratio
of Earnings to Combined Fixed
Charges and Preferred Dividend
Requirements. (IPC)
12(g) Statement Re: Computation of
Supplemental Ratio of Earnings to
Combined Fixed Charges and
Preferred Dividend Requirements.
(IPC)
15 Letter re: Unaudited Interim
Financial Information.
27(a) Financial Data Schedule for
IDACORP, Inc.
27(b) Financial Data Schedule for IPC.
1Compensatory plan
(b) Reports on Form 8-K. No reports on Form 8-K were filed
during the three-month period ended June 30, 1999.
* Previously filed and Incorporated Herein by Reference
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
IDACORP, Inc.
(Registrant)
Date August 6, 1999 By: /s/ J LaMont Keen
J LaMont Keen
Senior Vice President
Administration
and Chief Financial Officer
(Principal Financial
Officer)
Date August 6, 1999 By: /s/ Darrel T. Anderson
Darrel T. Anderson
Vice President Finance
and Treasurer
(Principal Accounting
Officer)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
IDAHO POWER COMPANY
(Registrant)
Date August 6, 1999 By: /s/ J LaMont Keen
J LaMont Keen
Senior Vice President
Administration
and Chief Financial Officer
(Principal Financial
Officer)
Date August 6, 1999 By: /s/ Darrel T. Anderson
Darrel T. Anderson
Vice President Finance
and Treasurer
(Principal Accounting
Officer)