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 September 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 I.R.S.
Commission in their charters, state of Employer
File Number incorporation, address of Identification
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 September
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
Consolidated Statements of Comprehensive 9
Income
Notes to Consolidated Financial Statements 10-14
Independent Accountants' Report 15
Idaho Power Company:
Consolidated Statements of Income 16-17
Consolidated Balance Sheets 18-19
Consolidated Statements of Capitalization 20
Consolidated Statements of Cash Flows 21
Consolidated Statements of Comprehensive 22
Income
Notes to Consolidated Financial Statements 23-24
Independent Accountants' Report 25
Item 2. Management's Discussion and Analysis of
Financial
Condition and Results of Operations 26-33
Part II. Other Information:
Item 6. Exhibits and Reports on Form 8-K 34-37
Signatures 38-39
DEFINITIONS
FASB - Financial Accounting Standards Board
FERC - Federal Energy Regulatory Commission
IPUC - Idaho Public Utilities Commission
KWh - kilowatt-hour
MAF - Million Acre-Feet
MMbtu - Million British Thermal Units
MWh - Megawatt-hour
OPUC - Oregon Public Utilities Commission
PCA - Power Cost Adjustment
PUCN - Public Utility Commission of Nevada
REA - Rural Electrification Administration
SFAS - Statement of Financial 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
September 30,
1999 1998
(Thousands of Dollars
except for per share
amounts)
REVENUES:
General business $137,193 $ 149,411
Off-system sales 19,078 74,560
Other revenues 5,707 6,229
Total revenues 161,978 230,200
EXPENSES:
Operations:
Purchased power 41,088 92,885
Fuel expense 23,523 25,054
Power cost adjustment (14,774) (1,338)
Other 36,615 34,455
Maintenance 10,903 10,709
Depreciation 19,511 19,140
Taxes other than income taxes 5,170 5,258
Total expenses 122,036 186,163
INCOME FROM OPERATIONS 39,942 44,037
OTHER INCOME:
Allowance for equity funds used
during
Construction 322 46
Energy trading activities - Net 6,802 2,042
Other - Net 2,098 5,037
Total other income 9,222 7,125
INTEREST EXPENSE AND OTHER:
Interest on long-term debt 13,078 13,106
Other interest 2,339 2,223
Allowance for borrowed funds
used during
Construction (247) (274)
Preferred dividends of Idaho
Power
Company 1,401 1,410
Total interest expense and 16,571 16,465
other
INCOME BEFORE INCOME TAXES 32,593 34,697
INCOME TAXES 10,574 12,392
NET INCOME $22,019 $ 22,305
AVERAGE COMMON SHARES OUTSTANDING 37,612 37,612
(000)
EARNINGS PER SHARE OF COMMON STOCK
(basic and
diluted) $ 0.59 $ 0.59
The accompanying notes are an integral part of these statements.
IDACORP, Inc.
Consolidated Statements of Income
Nine Months Ended
September 30,
1999 1998
(Thousands of Dollars
except for per share
amounts)
REVENUES:
General business $396,415 $ 382,631
Off-system sales 86,109 162,204
Other revenues 18,676 23,411
Total revenues 501,200 568,246
EXPENSES:
Operations:
Purchased power 81,503 145,862
Fuel expense 64,398 60,077
Power cost adjustment 424 12,951
Other 110,579 106,008
Maintenance 30,285 31,262
Depreciation 58,087 57,080
Taxes other than income taxes 16,429 16,103
Total expenses 361,705 429,343
INCOME FROM OPERATIONS 139,495 138,903
OTHER INCOME:
Allowance for equity funds used
during
Construction 710 71
Energy trading activities - Net 14,646 4,911
Other - Net 6,224 10,643
Total other income 21,580 15,625
INTEREST EXPENSE AND OTHER:
Interest on long-term debt 40,231 39,204
Other interest 6,768 6,368
Allowance for borrowed funds
used during
Construction (605) (714)
Preferred dividends of Idaho
Power
Company 4,121 4,232
Total interest expense and 50,515 49,090
other
INCOME BEFORE INCOME TAXES 110,560 105,438
INCOME TAXES 37,799 34,730
NET INCOME $ 72,761 $ 70,708
AVERAGE COMMON STOCK OUTSTANDING 37,612 37,612
(000)
EARNINGS PER SHARE OF COMMON STOCK
(basic and
diluted) $ 1.93 $ 1.88
The accompanying notes are an integral part of these statements.
IDACORP, Inc.
Consolidated Balance Sheets
Assets
September December
30, 31,
1999 1998
(Thousands of Dollars)
ELECTRIC PLANT:
In service (at original cost) $2,710,168 $ 2,659,441
Accumulated provision for
depreciation (1,060,783) (1,009,387)
In service - Net 1,649,385 1,650,054
Construction work in progress 77,224 59,717
Held for future use 1,742 1,738
Electric plant - Net 1,728,351 1,711,509
INVESTMENTS AND OTHER PROPERTY 140,267 129,437
CURRENT ASSETS:
Cash and cash equivalents 17,207 22,867
Receivables:
Customer 102,901 81,245
Allowance for uncollectible (1,397) (1,397)
accounts
Natural gas 36,124 21,426
Notes 4,747 4,643
Employee notes 4,412 4,510
Other 6,449 6,059
Energy trading assets 50,715 -
Accrued unbilled revenues 26,224 34,610
Materials and supplies (at 32,127 30,157
average cost)
Fuel stock (at average cost) 8,281 7,096
Prepayments 14,414 16,042
Regulatory assets associated
with income
Taxes 2,965 2,965
Total current assets 305,169 230,223
DEFERRED DEBITS:
American Falls and Milner water 31,585 31,830
rights
Company-owned life insurance 43,368 35,149
Regulatory assets associated
with income
Taxes 202,153 201,465
Regulatory assets - other 54,190 62,013
Other 50,520 49,994
Total deferred debits 381,816 380,451
TOTAL $2,555,603 $ 2,451,620
The accompanying notes are an integral part of these statements.
IDACORP, Inc.
Consolidated Balance Sheets
Capitalization and Liabilities
September December
30, 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) $ 451,112 $ 451,564
Retained earnings 298,973 278,607
Accumulated other (686) 226
comprehensive income
Total common stock equity 749,399 730,397
Preferred stock of Idaho Power 105,856 105,968
Company
Long-term debt 741,849 815,937
Total capitalization 1,597,104 1,652,302
CURRENT LIABILITIES:
Long-term debt due within one 88,026 6,029
year
Notes payable 11,630 38,524
Accounts payable 97,818 73,499
Accounts payable - natural gas 48,530 28,476
Energy trading liabilities 54,569 -
Taxes accrued 31,075 24,785
Interest accrued 15,853 18,365
Deferred income taxes 2,965 2,965
Other 13,259 12,275
Total current liabilities 363,725 204,918
DEFERRED CREDITS:
Regulatory liabilities
associated with
deferred investment tax 67,961 69,396
credits
Deferred income taxes 422,356 422,196
Regulatory liabilities
associated with
income taxes 28,075 28,075
Regulatory liabilities - other 3,996 4,161
Other 72,386 70,572
Total deferred credits 594,774 594,400
COMMITMENTS AND CONTINGENT
LIABILITIES
TOTAL $2,555,603 $ 2,451,620
The accompanying notes are an integral part of these statements.
IDACORP, Inc.
Consolidated Statements of Capitalization
September December
30, 31,
1999 % 1998 %
(Thousands of Dollars)
COMMON STOCK EQUITY:
Common stock $451,112 $ 451,564
Retained earnings 298,973 278,607
Accumulated other comprehensive (686) 226
income
Total common stock equity 749,399 47 730,397 44
PREFERRED STOCK OF IDAHO POWER
COMPANY:
4% preferred stock 15,856 15,968
7.68% Series, serial preferred 15,000 15,000
stock
7.07% Series, serial preferred 25,000 25,000
stock
Auction rate preferred stock 50,000 50,000
Total preferred stock 105,856 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 (80,000) -
year
Net first mortgage 477,000 557,000
bonds
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 24,200 24,200
2026
Variable Rate Series 1996C due 24,000 24,000
2026
Total pollution control 170,460 170,460
revenue bonds
REA notes 1,433 1,489
Amount due within one year (75) (74)
Net REA notes 1,358 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 70,411 62,103
Amount due within one year (7,951) (5,955)
Net affordable housing debt 62,460 56,148
Unamortized premium/discount - (1,466) (1,539)
Net
Net Idaho Power Company debt 741,397 815,314
OTHER SUBSIDIARY DEBT 452 623
Total long-term debt 741,849 46 815,937 49
TOTAL CAPITALIZATION $1,597,104 100 $ 1,652,302 100
The accompanying notes are an integral part of these statements.
IDACORP, Inc.
Consolidated Statements of Cash Flows
Nine Months Ended September
30,
1999 1998
(Thousands of Dollars)
OPERATING ACTIVITIES:
Net income $ 72,761 $ 70,708
Adjustments to reconcile net
income to net
cash provided by operating
activities:
Depreciation and amortization 68,913 62,895
Deferred taxes and investment
tax
Credits (1,963) (656)
Accrued PCA costs 243 12,743
Change in:
Accounts receivable and (35,122) (56,060)
prepayments
Accrued unbilled revenue 8,386 6,847
Materials and supplies and
fuel
Stock (3,155) 284
Accounts payable 44,373 45,741
Taxes accrued 6,290 3,187
Other current assets and 2,326 (5,327)
liabilities
Other - net 5,701 (9,751)
Net cash provided by operating
Activities 168,753 130,611
INVESTING ACTIVITIES:
Additions to utility plant (73,113) (60,136)
Investments in affordable (17,556) (19,139)
housing projects
Investments in company-owned (6,462) -
life insurance
Other - net (5,510) (7,486)
Net cash used in investing (102,641) (86,761)
activities
FINANCING ACTIVITIES:
Proceeds from issuance of:
Long-term debt related to
affordable
housing projects 14,582 15,088
First mortgage bonds - 60,000
Retirement of subsidiary long- (6,446) (3,316)
term debt
Retirement of first mortgage - (30,000)
bonds
Dividends on common stock (52,395) (52,399)
Decrease in short-term (26,894) (35,077)
borrowings
Other - net (619) (135)
Net cash used in financing (71,772) (45,839)
activities
Net decrease in cash and cash (5,660) (1,989)
equivalents
Cash and cash equivalents beginning 22,867 6,905
of period
Cash and cash equivalents at end of $ 17,207 $ 4,916
period
SUPPLEMENTAL DISCLOSURE OF CASH
FLOW
INFORMATION:
Cash paid during the period for:
Income taxes $ 34,017 $ 44,773
Interest (net of amount $ 46,836 $ 40,712
capitalized)
The accompanying notes are an integral part of these statements.
IDACORP, Inc.
Consolidated Statements of Comprehensive Income
Three Months Ended
September 30,
1999 1998
(Thousands of Dollars)
NET INCOME $ 22,019 $ 22,305
OTHER COMPREHENSIVE INCOME:
Unrealized gains (losses) on
securities
(net of tax of ($688)) (912) -
TOTAL COMPREHENSIVE INCOME $ 21,107 $ 22,305
Nine Months Ended
September 30,
1999 1998
(Thousands of Dollars)
NET INCOME $ 72,761 $ 70,708
OTHER COMPREHENSIVE INCOME:
Unrealized gains (losses) on
securities
(net of tax of ($688) and (912) 1,915
$1,229)
Minimum pension liability
adjustment
(net of tax of $1,159) - (1,805)
TOTAL COMPREHENSIVE INCOME $ 71,849 $ 70,818
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), is a holding company
whose principal operating subsidiary is Idaho Power Company
(IPC). On October 1, 1998 IPC's outstanding common stock was
converted on a share-for-share basis into common stock of
IDACORP. However, IPC's preferred stock and debt securities
outstanding were unaffected and remain with IPC.
IPC, a public utility, represents over 90% of the consolidated
total assets of the Company and is its principal operating
subsidiary. IPC is regulated by the FERC and the state
regulatory commission 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 September 30, 1999, and its consolidated results of
operations for the three and nine months ended September 30, 1999
and 1998 and cash flows for the nine months ended September 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 of adoption on net income 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.
Reclassifications
Certain items previously reported for periods prior to September
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 nine months
increased from 32.9 percent in 1998 to 34.2 percent in 1999.
Reconciliations between the statutory income tax rate and the
effective rates for the nine-month periods ended September 30,
1999 and 1998 are as follows:
1999 1998
Amount Rate Amount Rate
Computed income taxes based on
statutory
federal income tax rate $ 38,696 35.0% $ 36,903 35.0 %
Changes in taxes resulting from:
Current state income taxes 5,964 5.4 5,106 4.8
Net depreciation 3,952 3.6 4,005 3.8
Investment tax credits restored (2,221) (2.0) (2,197) (2.1)
Removal costs (612) (0.6) (1,037) (1.0)
Repair allowance (2,066) (1.9) (2,346) (2.2)
Affordable housing credits (6,958) (6.3) (5,160) (4.9)
Preferred dividends 1,442 1.3 1,482 1.4
Settlement of prior year tax
returns - - (1,500) (1.4)
Other (398) (0.3) (526) (0.5)
Total $ 37,799 34.2% $ 34,730 32.9 %
3. PREFERRED STOCK OF IDAHO POWER COMPANY:
The number of shares of IPC preferred stock outstanding were as
follows:
September December
30, 31,
1999 1998
Cumulative, $100 par value:
4% preferred stock (authorized 215,000 158,562 159,680
shares)
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 September 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 $5.7 million at September 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:
Power Cost Adjustment (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.
The May 16, 1999 rate adjustment reduced Idaho general business
customer rates by 9.2 percent. The decrease was a result of
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 during the 1999-2000 rate period.
For the 1999-2000 rate period, actual power supply costs have
been greater than forecast, due to actual hydroelectric
generating conditions being less favorable than forecast. To
account for these higher-than-expected costs, IPC has recorded an
increase in regulatory assets of $4.2 million as of September 30,
1999.
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.
For the nine month period ending September 30, 1999, the Company
has set aside $4.5 million for the benefit of its Idaho retail
customers.
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 requirements 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.
Oral argument before the Idaho Supreme Court has been set for
December 8, 1999.
In December 1998, IPC filed with the IPUC a request to recover
remaining deferred DSM expenditures of approximately $2.1
million. IPC requested that the amount be applied against 1998
earnings sharing amounts. On May 11, 1999 IPC received Order No.
28041 allowing recovery of $1.5 million of existing and future
DSM expenditures as part of the authorized deductions from the
1998 revenue sharing funds of $6.4 million (as noted above).
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. The
Company expects to adopt this standard by January 1, 2001.
8. DERIVATIVE FINANCIAL INSTRUMENTS:
The notional amount of open commodity derivative positions as of
September 30, 1999 was a net long electricity position of 427 MW
and a net short natural gas position of 111 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 nine
months ended September 30, 1999 was $(3.9) 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, renewable energy products and
systems, 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)
Three months ended September
30, 1999:
Revenues $ 161,978 $ - $ 161,978
Net income 16,836 5,183 22,019
Three months ended September
30, 1998:
Revenues $ 230,200 $ - $ 230,200
Net income 20,858 1,447 22,305
IPC Total
Utility Other Enterprise
(Thousands of Dollars)
Nine months ended September
30, 1999:
Revenues $ 501,200 $ - $ 501,200
Net income 62,933 9,828 72,761
Total assets at September 30,
1999 2,333,301 222,302 2,555,603
Nine months ended September
30, 1998:
Revenues $ 568,246 $ - $ 568,246
Net income 67,513 3,195 70,708
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 September 30, 1999, and the related consolidated statements of
income and comprehensive income for the three and nine month
periods ended September 30, 1999 and 1998 and the consolidated
statements of cash flows for the nine month periods ended
September 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 of 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
October 29, 1999
Idaho Power Company
Consolidated Statements of Income
Three Months Ended September
30,
1999 1998
(Thousands of Dollars)
REVENUES:
General business $137,193 $ 149,411
Off-system sales 19,078 74,560
Other revenues 5,707 6,229
Total revenues 161,978 230,200
EXPENSES:
Operations:
Purchased power 41,088 92,885
Fuel expense 23,523 25,054
Power cost adjustment (14,774) (1,338)
Other 36,615 34,455
Maintenance 10,903 10,709
Depreciation 19,511 19,140
Taxes other than income taxes 5,170 5,258
Total expenses 122,036 186,163
INCOME FROM OPERATIONS 39,942 44,037
OTHER INCOME:
Allowance for equity funds used
during
construction 322 46
Energy trading activities - Net 7,266 2,042
Other - Net 1,064 5,037
Total other income 8,652 7,125
INTEREST CHARGES:
Interest on long-term debt 13,041 13,106
Other interest 2,010 2,223
Allowance for borrowed funds
used during
construction (247) (274)
Total interest expense and 14,804 15,055
other
INCOME BEFORE INCOME TAXES 33,790 36,107
INCOME TAXES 10,419 12,392
NET INCOME 23,371 23,715
Dividends on preferred stock 1,401 1,410
EARNINGS ON COMMON STOCK $ 21,970 $ 22,305
The accompanying notes are an integral part of these statements.
Idaho Power Company
Consolidated Statements of Income
Nine Months Ended September
30,
1999 1998
(Thousands of Dollars)
REVENUES:
General business $396,415 $ 382,631
Off-system sales 86,109 162,204
Other revenues 18,676 23,411
Total revenues 501,200 568,246
EXPENSES:
Operations:
Purchased power 81,503 145,862
Fuel expense 64,398 60,077
Power cost adjustment 424 12,951
Other 110,579 106,008
Maintenance 30,285 31,262
Depreciation 58,087 57,080
Taxes other than income taxes 16,429 16,103
Total expenses 361,705 429,343
INCOME FROM OPERATIONS 139,495 138,903
OTHER INCOME:
Allowance for equity funds used
during
construction 710 71
Energy trading activities - Net 15,852 4,911
Other - Net 3,802 10,643
Total other income 20,364 15,625
INTEREST CHARGES:
Interest on long-term debt 40,120 39,204
Other interest 5,913 6,368
Allowance for borrowed funds
used during
construction (605) (714)
Total interest charges 45,428 44,858
INCOME BEFORE INCOME TAXES 114,431 109,670
INCOME TAXES 37,480 34,730
NET INCOME 76,951 74,940
Dividends on preferred stock 4,121 4,232
EARNINGS ON COMMON STOCK $ 72,830 $ 70,708
The accompanying notes are an integral part of these statements.
Idaho Power Company
Consolidated Balance Sheets
Assets
September December
30, 31,
1999 1998
(Thousands of Dollars)
ELECTRIC PLANT:
In service (at original cost) $2,710,168 $ 2,659,441
Accumulated provision for
depreciation (1,060,783) (1,009,387)
In service - Net 1,649,385 1,650,054
Construction work in progress 75,011 58,904
Held for future use 1,742 1,738
Electric plant - Net 1,726,138 1,710,696
INVESTMENTS AND OTHER PROPERTY 113,923 105,600
CURRENT ASSETS:
Cash and cash equivalents 9,400 20,029
Receivables:
Customer 101,586 81,227
Allowance for uncollectible (1,397) (1,397)
accounts
Natural gas - 21,426
Notes 355 467
Employee notes 4,412 4,510
Other (including $3,164 from
related
Parties at 12/31/98) 7,188 8,502
Energy trading assets 35,625 -
Accrued unbilled revenues 26,224 34,610
Materials and supplies (at 31,716 30,143
average cost)
Fuel stock (at average cost) 8,281 7,096
Prepayments 14,393 16,011
Regulatory assets associated
with income
taxes 2,965 2,965
Total current assets 240,748 225,589
DEFERRED DEBITS:
American Falls and Milner water 31,585 31,830
rights
Company-owned life insurance 43,368 35,149
Regulatory assets associated
with income
taxes 202,153 201,465
Regulatory assets - other 54,190 62,013
Other 49,903 49,448
Total deferred debits 381,199 379,905
TOTAL $2,462,008 $ 2,421,790
The accompanying notes are an integral part of these statements.
Idaho Power Company
Consolidated Balance Sheets
Capitalization and Liabilities
September December
30, 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 $ 94,031 $ 94,031
outstanding)
Premium on capital stock 362,189 362,156
Capital stock expense (3,820) (3,823)
Retained earnings 272,524 252,137
Accumulated other (686) 226
comprehensive income
Total common stock equity 724,238 704,727
Preferred stock 105,856 105,968
Long-term debt 741,849 815,937
Total capitalization 1,571,943 1,626,632
CURRENT LIABILITIES:
Long-term debt due within one 88,026 6,029
year
Notes payable 10,165 38,508
Accounts payable (including $88
from
related parties at 9/30/99) 98,010 72,660
Accounts payable - natural gas - 28,476
Energy trading liabilities 40,408 -
Taxes accrued 31,606 25,164
Interest accrued 15,842 18,364
Deferred income taxes 2,965 2,965
Other 12,575 12,117
Total current liabilities 299,597 204,283
DEFERRED CREDITS:
Regulatory liabilities
associated with
deferred investment tax 67,961 69,396
credits
Deferred income taxes 420,586 420,268
Regulatory liabilities
associated with
income taxes 28,075 28,075
Regulatory liabilities - other 3,996 4,161
Other 69,850 68,975
Total deferred credits 590,468 590,875
COMMITMENTS AND CONTINGENT
LIABILITIES
TOTAL $2,462,008 $ 2,421,790
The accompanying notes are an integral part of these statements.
Idaho Power Company
Consolidated Statements of Capitalization
September December
30, 31,
1999 % 1998 %
(Thousands of Dollars)
COMMON STOCK EQUITY:
Common stock $ 94,031 $ 94,031
Premium on capital stock 362,189 362,156
Capital stock expense (3,820) (3,823)
Retained earnings 272,524 252,137
Accumulated other comprehensive (686) 226
income
Total common stock equity 724,238 46 704,727 43
PREFERRED STOCK:
4% preferred stock 15,856 15,968
7.68% Series, serial preferred 15,000 15,000
stock
7.07% Series, serial preferred 25,000 25,000
stock
Auction rate preferred stock 50,000 50,000
Total preferred stock 105,856 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 (80,000) -
year
Net first mortgage 477,000 557,000
bonds
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 24,200 24,200
2026
Variable Rate Series 1996C due 24,000 24,000
2026
Total pollution control 170,460 170,460
revenue bonds
REA notes 1,433 1,489
Amount due within one year (75) (74)
Net REA notes 1,358 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 70,411 62,103
Amount due within one year (7,951) (5,955)
Net affordable housing debt 62,460 56,148
Other subsidiary debt 452 623
Unamortized premium/discount - (1,466) (1,539)
Net
Total long-term debt 741,849 47 815,937 50
TOTAL CAPITALIZATION $1,571,943 100 $ 1,626,632 100
The accompanying notes are an integral part of these statements.
Idaho Power Company
Consolidated Statements of Cash Flows
Nine Months Ended September
30,
1999 1998
(Thousands of Dollars)
OPERATING ACTIVITIES:
Net income $ 76,951 $ 74,940
Adjustments to reconcile net
income to net
cash provided by operating
activities:
Depreciation and amortization 68,711 62,895
Deferred taxes and investment
tax
credits (1,805) (656)
Accrued PCA costs 243 12,743
Change in:
Accounts receivable and 4,209 (56,060)
prepayments
Accrued unbilled revenue 8,386 6,847
Materials and supplies and
fuel
stock (2,758) 284
Accounts payable (3,126) 45,741
Taxes accrued 6,442 3,187
Other current assets and 2,719 (5,327)
liabilities
Other - net 5,874 (9,751)
Net cash provided by operating
activities 165,846 134,843
INVESTING ACTIVITIES:
Additions to utility plant (71,713) (60,136)
Investments in affordable (17,556) (19,139)
housing projects
Investments in company-owned (6,462) -
life insurance
Other - net (3,842) (7,486)
Net cash used in investing (99,573) (86,761)
activities
FINANCING ACTIVITIES:
Proceeds from issuance of:
Long-term debt related to
affordable
housing projects 14,582 15,088
First mortgage bonds - 60,000
Retirement of subsidiary long- (6,446) (3,316)
term debt
Retirement of first mortgage - (30,000)
bonds
Dividends on common stock (52,443) (52,399)
Dividends on preferred stock (4,121) (4,232)
Decrease in short-term (28,343) (35,077)
borrowings
Other - net (131) (135)
Net cash used in financing (76,902) (50,071)
activities
Net decrease in cash and cash (10,629) (1,989)
equivalents
Cash and cash equivalents
beginning of
period 20,029 6,905
Cash and cash equivalents at end
of
period $ 9,400 $ 4,916
SUPPLEMENTAL DISCLOSURE OF CASH
FLOW
INFORMATION:
Cash paid during the period for:
Income taxes (including
amounts paid
to parent) $ 34,243 $ 44,773
Interest (net of amount $ 45,837 $ 40,712
capitalized)
The accompanying notes are an integral part of these statements.
Idaho Power Company
Consolidated Statements of Comprehensive Income
Three Months Ended
September 30,
1999 1998
(Thousands of Dollars)
NET INCOME $ 23,371 $ 23,715
OTHER COMPREHENSIVE INCOME:
Unrealized gains (losses) on
securities
(net of tax of ($688)) (912) -
TOTAL COMPREHENSIVE INCOME $ 22,459 $ 23,715
Nine Months Ended
September 30,
1999 1998
(Thousands of Dollars)
NET INCOME $ 76,951 $ 74,940
OTHER COMPREHENSIVE INCOME:
Unrealized gains (losses) on
securities
(net of tax of ($688) and (912) 1,915
$2,185)
Minimum pension liability
adjustment
(net of tax of $1,159) - (1,805)
TOTAL COMPREHENSIVE INCOME $ 76,039 $ 75,050
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 Consolidated Statement of Income
for the nine months ending September 30, 1998 includes $2.7
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 nine months increased from
31.7 percent in 1998 to 32.8 percent in 1999. Reconciliations
between the statutory income tax rate and the effective rates for
the nine-month periods
ended September 30, 1999 and 1998 are as follows:
1999 1998
Amount Rate Amount Rate
Computed income taxes based on
statutory
federal income tax rate $ 40,051 35.0% $ 38,385 35.0 %
Changes in taxes resulting from:
Current state income taxes 5,964 5.2 5,106 4.7
Net depreciation 3,952 3.5 4,005 3.6
Investment tax credits restored (2,221) (1.9) (2,197) (2.0)
Removal costs (612) (0.5) (1,037) (0.9)
Repair allowance (2,066) (1.8) (2,346) (2.1)
Affordable housing credits (6,958) (6.1) (5,160) (4.7)
Settlement of prior year tax
returns - - (1,500) (1.4)
Other (630) (0.6) (526) (0.5)
Total $ 37,480 32.8% $ 34,730 31.7 %
8. DERIVATIVE FINANCIAL INSTRUMENTS:
The notional amount of open commodity derivative positions as of
September 30, 1999 was a net long electricity position of 427 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 nine months ended
September 30, 1999 was $5.0 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 renewable energy products and systems, 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)
Three months ended September
30, 1999:
Revenues $ 161,978 $ - $ 161,978
Net income 16,836 6,535 23,371
Three months ended September
30, 1998:
Revenues $ 230,200 $ - $ 230,200
Net income 20,858 2,857 23,715
Regulated
Electric Total
Operations Other Enterprise
(Thousands of Dollars)
Nine months ended September
30, 1999:
Revenues $ 501,200 $ - $ 501,200
Net income 62,933 14,018 76,951
Total assets at September 30,
1999 2,333,301 128,707 2,462,008
Nine months ended September
30, 1998:
Revenues $ 568,246 $ - $ 568,246
Net income 67,513 7,427 74,940
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 September 30, 1999, and the related
consolidated statements of income and comprehensive income for
the three and nine month periods ended September 30, 1999 and
1998 and the consolidated statements of cash flows for the nine
month periods ended September 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 of 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
October 29, 1999
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERTIONS
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,
operations 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 $0.59
for the quarter ended September 30, 1999, the same as the amount
reported for the same quarter of 1998. Year-to-date, earnings
were $1.93 per share, $0.05 (2.7 percent) above last year. At
September 30, 1999, the book value per share of IDACORP common
stock was $19.92, compared to $19.41 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 2.9 percent for the second
quarter and 3.0 percent year-to-date. This increase was due
primarily to economic growth in our service territory.
Our revenue per MWh decreased 10.7 percent for the quarter and
0.5 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."
Dry weather conditions during the growing season contributed to
increased sales of energy. MWh sales to irrigation customers
increased 13.2 percent for the quarter and year-to date over 1998
amounts.
Temperatures also affected sales during the quarter. Combined,
heating degree-days and cooling degree-days, common measures used
in the utility industry to analyze demand, were below 1998 levels
by 23.7 percent for the quarter. Compared to 1998, the average
kWh's sold per general business customer (excluding irrigation)
decreased 3.1 percent for the quarter.
The combination of these factors resulted in general business
revenue decreases of $12.2 million (8.2 percent) for the quarter
and increases of $13.8 million (3.6 percent) year-to-date
compared to 1998.
Off-System Sales
Off-system sales, which consist primarily of long-term sales
contracts and opportunity sales of surplus system energy, decreased
by $55.5 million (74.4 percent) for the quarter and $76.1 million
(46.9 percent) year-to-date. The decreased sales are primarily a
result of lower market prices and less surplus system energy available
for sale in 1999.
Expenses
Purchased power expenses decreased $51.8 million (55.8 percent) for
the quarter and $64.4 million (44.1 pecent) year-to-date, due primarily
to decreases in MWhs purchased of 49.3 percent for the quarter and 39.6
percent year-to-date, and to favorable market prices. The decreased
quantities are due primarily to reductions in system requirements in
1999.
Fuel expenses decreased $1.5 million (6.1 percent) for the
quarter and increased $4.3 million (7.2 percent) year-to-date.
The decrease for the quarter is due primarily to lower coal
prices, offset by a 2.2 percent increase in MWhs generated at our
coal fired plants. The year-to-date increase is due primarily to
a 10.1 percent increase in MWhs generated, offset by lower coal
prices.
The PCA component of expenses decreased $13.4 million for the
quarter and $12.5 million year-to-date. 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 third
quarter of 1999, actual power supply costs were above what had
been forecast, resulting in a large PCA credit. The 1999
forecast used to set the 1999-2000 PCA rate adjustment
anticipated better than normal streamflow conditions. Actual
conditions have not been as favorable as forecasted and are
discussed below in "Streamflow Conditions." We discuss the PCA
in more detail below in "PCA."
Other operating expenses increased $2.2 million (6.3 percent) for
the quarter and $4.6 million (4.3 percent) year-to-date. The
increase for the quarter is due primarily to increases in
administration expenses and costs of generation at our coal-fired
generating facilities, offset by a decrease in costs for
electricity transmitted by others. The year-to-date increase is
due primarily to increases in costs of generation at our coal-
fired generating facilities.
Other
Other income increased for the quarter and year-to-date, due
primarily to improved results from energy marketing activities.
The increase for 1999 over 1998 was reduced due to a one-time
demand side management accounting adjustment, made in the third
quarter 1998, for carrying charges for the 1994-97 period. Other
income for IDACORP was also decreased by costs incurred by new
subsidiaries and other diversified business operations.
Income taxes decreased for the quarter and increased year-to-
date. These changes were due primarily to changes in net income
before taxes, the impact of a tax settlement that reduced
expenses in 1998, and changes in affordable housing tax credits.
LIQUIDITY AND CAPITAL RESOURCES:
Cash Flow
For the nine months ended September 30, 1999, IDACORP generated
$168.8 million in net cash from operations. After deducting for
common stock dividends, net cash generation from operations
provided approximately $116.4 million for our construction
program and other capital requirements.
Cash Expenditures
We estimate that our total cash construction expenditures for
1999 will be approximately $105 million. This estimate is
subject to revision in light of changing economic, regulatory,
and environmental factors. During the first nine months of 1999,
we spent approximately $73.1 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
September 30, 1999, our short-term borrowings totaled $11.6
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 September 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
September 30, 1999.
REGULATORY ISSUES:
Power Cost Adjustment (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.
Our May 16, 1999 rate adjustment reduced Idaho general business
customer rates by 9.2 percent. The decrease was the result of
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 during the 1999-2000 rate period.
For the 1999 - 2000 rate year, actual power supply costs have
been greater than forecast, due to actual hydroelectric
generating conditions being less favorable than forecast. To
account for these higher-than-expected costs, we have recorded a
regulatory asset of $4.2 million as of September 30, 1999.
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.
For the nine month period ending September 30, 1999, we have set
aside $4.5 million for the benefit of our Idaho retail customers.
OTHER MATTERS:
Energy Trading
Energy trading activity 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 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, composed 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 in 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. Inflows into Brownlee were
7.9 MAF for the 1998-9 water year, 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 a
full-time Year 2000 Project Manger to direct the project.
Additional staff has been committed to complete the conversion
and implementation needed to bring non-compliant items into
compliance. At its peak, there were over 20 full-time employees
devoted to the project with dozens of others involved to varying
degrees. Third parties have completed technical and legal audits
of our plan. With respect to these audits, we have implemented
their recommendations as recommended by the Y2K Steering
Committee. The legal audit recommendations are also being
implemented.
As of September 1999 we consider ourselves ready for the Year
2000. This means that all critical systems are believed to be
capable of handling the century rollover and that we will be able
to continue servicing our customers as usual. Also, we have
identified all of the less critical systems and contingency
and/or repair plans are in place for dealing with the change of
century.
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
and generation plants (parts of which are owned by IPC but are
operated by other electric utilities), (ii) remediation and
testing, (iii) education and awareness and (iv) contingency
planning.
We have identified the critical systems that must be Year 2000
compliant in order to continue operations. Each of these is now
Year 2000 ready. The largest of these critical systems and their
status regarding compliance are described below:
System Description Status
Business The business systems include the PeopleSoft and
Systems financial and administrative Passport are
functions common to most both compliant
companies. Business systems vendor
include accounts payable, packages.
general ledger, accounts Testing to
receivable, labor entry, verify
inventory, purchasing, cash compliance is
management, budgeting, asset complete.
management, payroll, and
financial reporting.
Customer This system is used to bill In-house
Information customers, log calls from system has
System customers and create service or been repaired.
work requests and track them Testing to
through completion, among other verify
things. At this time, the compliance is
Company uses an in-house complete.
developed, mainframe-based
Customer Information System to
accomplish these tasks.
Energy The most critical function the The packages
Management Company offers is the delivery comprising the
System of electricity from the source EMS are fully
to the consumer. This must be compliant with
done with minimal interruption the latest
in the midst of high demand, releases.
weather anomalies and equipment Testing and
failures. To accomplish this, rollout are
the Company relies on a server- now complete.
based energy management system
provided by Landis & Gyr. This
system monitors and directs the
delivery of electricity
throughout the Company's service
area.
Metering The Company relies on several In-house code
Systems processes for metering has been
electricity usage, including repaired and
some hand-held devices with tested.
embedded chips. It is critical Vendor
for metering systems to operate packages have
without interruption so as not been upgraded.
to jeopardize the Company's Testing of
revenue stream. critical
components is
complete.
Embedded There is a category of systems Testing is
Systems on which the Company is highly complete.
reliant 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 Systems The Company also relies on a In various
number of other important stages of
systems to support engineering, repair and
human resources, safety and testing.
regulatory compliance, etc.
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, members of the Year 2000 team have
met periodically with the third parties to assess their status
and are satisfied with their efforts. Our survey of the 93 key
manufacturers has shown them to be Year 2000-ready to our
satisfaction.
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 nationwide Y2K drills for electric utilities, held in
April and September 1999.
Our estimate of the cost of the Year 2000 plan remains at
approximately $5.3 million. This amount includes $3.6 million of
costs already incurred 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 ten 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, which might increase 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
size of those businesses that are forced to discontinue business
activities because of the Year 2000 issue.
The final phase of our Year 2000 Methodology is contingency
planning. The contingency planning focused on the identification
of internal risks beginning with a listing of the Company's core
business processes, prioritized in order of importance and the
identification of key sub-processes under each process for which
it was determined that a contingency plan might be necessary.
This methodology was adapted, in part, from the Company's normal
business practice where the Company maintains and periodically
initiates various contingency plans to maintain and restore its
energy services during emergency circumstances, some of which
could arise from Year 2000 related problems. In addition, the
Company is coordinating its Year 2000 readiness efforts,
including contingency planning with various trade associations
and industry groups. Contingency plans were developed for a
number of critical infrastructure areas including, but not
limited to communications, including voice, data and corporate;
generation; distribution; transmission; substations; call center,
metering and billing.
The Company believes that its contingency plans will adequately
handle problem(s) which may develop in any of our critical
infrastructure areas. The Company will continue to review its
contingency plan to identify and further enhancements or updates
related to Year 2000.
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. 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 until fiscal years
beginning after June 15, 2000. We are reviewing SFAS No. 133 to
determine its effects on our financial position and results of
operations. We expect to adopt this statement by January 1,
2001.
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
September 9, 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) 1-3198 3(h) Amended By-laws of IDACORP,
Form 10-Q Inc. as of July 8, 1999.
for 6/30/99
*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:
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) 1-3198 4(b) Agreement of IPC to furnish
Form 10-Q certain debt instruments.
for 6/30/99
*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
Form 10-K January 30, 1998, related to
for 1997 agreement filed as Exhibit
4(c).
*4(d) 1-14465 4 Rights Agreement, dated as
Form 8-K of September 10, 1998,
dated between IDACORP, Inc. and
September 15, the Bank of New York as
1998 Rights Agent.
*10(a)1 1-3198 10(n)(i) The Revised Security Plan
Form 10-K for Senior Management
for 1994 Employees - a non-qualified,
deferred compensation plan
effective August 1, 1996.
1 Compensatory
plan
*10(b)1 1-3198 10(n)(ii) The Executive Annual
Form 10-K Incentive Plan for senior
for 1994 management employees of IPC
effective January 1, 1995.
*10(c)1 1-3198 10(n)(iii) The 1994 Restricted Stock
Form 10-K Plan for officers and key
for 1994 executives of IDACORP, Inc.
and IPC effective July 1,
1994.
*10(d)1 1-14465 10(h)(iv) The Revised Security Plan
1-3198 for Board of Directors - a
Form 10-K non-qualified, deferred
for 1998 compensation plan effective
August 1, 1996, revised
March 2, 1999.
*10(e)1 1-3198 10(e) IDACORP, Inc. Non-Employee
Form 10-Q Directors Stock Compensation
for 6/30/99 Plan as of May 17, 1999.
*10(f) 1-3198 10(y) Executive Employment
Form 10-K Agreement dated November 20,
for 1997 1996 between IPC and Richard
R. Riazzi.
*10(g) 1-3198 10(g) Executive Employment
Form 10-Q Agreement dated April 12,
for 6/30/99 1999 between IPC and Marlene
Williams.
10(h) Form of Change in Control
Agreement between IDACORP,
Inc. and Jan B. Packwood, J.
LaMont Keen, James C.
Miller, Richard Riazzi,
Darrel T. Anderson, Bryan
Kearney, Cliff N. Olson,
Robert W. Stahman and
Marlene K. 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).
1 Compensatory plan
15 Letter Re: Unaudited
Interim Financial
Information.
27(a) Financial Data Schedule for
IDACORP, Inc.
27(b) Financial Data Schedule for
IPC.
(b) Reports on Form 8-K. No reports on Form 8-K were filed
during the three-month period ended September 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 November 5, 1999 By: /s/ J LaMont Keen
J LaMont Keen
Senior Vice President
Administration
and Chief Financial Officer
(Principal Financial Officer)
Date November 5, 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 November 5, 1999 By: /s/ J LaMont Keen
J LaMont Keen
Senior Vice President
Administration
and Chief Financial Officer
(Principal Financial Officer)
Date November 5, 1999 By: /s/ Darrel T Anderson
Darrel T Anderson
Vice President Finance
and Treasurer
(Principal Accounting Officer)