UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K/A
Amendment No. 2
(Mark One)
X ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1995
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from ...........to.................
Commission file number 1-3198
IDAHO POWER COMPANY
(Exact name of registrant as specified in its charter)
IDAHO 82-0130980
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1221 W. Idaho Street, Boise, Idaho 83702-5627
(Address of principal executive offices)(Zip Code)
Registrant's telephone number, including area code (208)388-2200
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Name of each exchange on which registered
Common Stock ($2.50 par value) New York and Pacific
Securities registered pursuant to Section 12(g) of the Act:
Preferred Stock
(Title of Class)
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
Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of Regulation S-K is not contained herein,
and will not be contained, to the best of registrant's knowledge,
in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-K or any amendment to this
Form 10-K.
Aggregate market value of voting stock
held by nonaffiliates (January 31, 1996) $1,182,514,000
Number of shares of common stock outstanding at February 29, 1996
37,612,351
Documents Incorporated by Reference:
Part III, Item 10 Portions of the definitive proxy statement of
Item 11 the Registrant to be filed pursuant to
Item 12 Regulation 14A for the 1996 Annual Meeting of
Item 13 Shareowners to be held on May 1, 1996.
The exhibit index is located on page 31. This document contains
32 pages.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
INDEX TO FINANCIAL STATEMENTS
AND FINANCIAL STATEMENT SCHEDULES
PAGE
Management's Responsibility for Financial Statements 3
Consolidated Financial Statements:
Consolidated Balance Sheets as of December 31, 1995,
1994 and 1993 4-5
Consolidated Statements of Income for the Years
Ended December 31, 1995, 1994 and 1993 6
Consolidated Statements of Retained Earnings for
the Years Ended December 31, 1995, 1994 and 1993 7
Consolidated Statements of Capitalization as of
December 31, 1995, 1994 and 1993 8
Consolidated Statements of Cash Flows for the Years
Ended December 31, 1995, 1994 and 1993 9
Notes to Consolidated Financial Statements 10-20
Independent Auditors' Report 21
Supplemental Financial Information (Unaudited) 22
Supplemental Schedule for the Years Ended December 31,
1995, 1994 and 1993:
Schedule II- Consolidated Valuation and
Qualifying Accounts 29
MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL STATEMENTS
The management of Idaho Power Company is responsible for the
preparation and presentation of the information and
representations contained in the accompanying financial
statements. The financial statements have been prepared in
conformance with generally accepted accounting principles for a
rate regulated enterprise. Where estimates are required to be
made in preparing the financial statements, management has
applied its best judgment as to the adequacy of the estimates
based upon all available information.
The Company maintains systems of internal accounting controls and
related policies and procedures. The systems are designed to
provide reasonable assurance that all assets are protected
against loss or unauthorized use. Also, the systems provide that
transactions are executed in accordance with management's
authorization and properly recorded to permit preparation of
reliable financial statements. The systems are supported by a
staff of corporate accountants and internal auditors who, among
other duties, evaluate and monitor the systems of internal
accounting control in coordination with the independent auditors.
The staff of internal auditors conduct special and operational
audits in support of these accounting controls throughout the
year.
The Board of Directors, through its Audit Committee comprised
entirely of outside directors, meets periodically with
management, internal auditors and the Company's independent
auditors to discuss auditing, internal control and financial
reporting matters. To ensure their independence, both the
internal auditors and independent auditors have full and free
access to the Audit Committee.
The financial statements have been audited by Deloitte & Touche
LLP, the Company's independent auditors, who were responsible for
conducting their audit in accordance with generally accepted
auditing standards.
/s/ Joseph W. Marshall /s/ J. LaMont Keen
Joseph W. Marshall J. LaMont Keen
Chairman and Vice President and Chief
Chief Executive Officer Financial Officer
/s/ Harold J. Hochhalter
Harold J. Hochhalter
Controller and Chief Accounting Officer
IDAHO POWER COMPANY
CONSOLIDATED BALANCE SHEETS
ASSETS
December 31,
1995 1994 1993
(Thousands of Dollars)
ELECTRIC PLANT (Notes 1, 5 and 10):
In service (at original cost) $2,481,830 $2,383,898 $2,249,723
Accumulated provision for depreciation (830,615) (775,033) (728,979)
In service - Net 1,651,215 1,608,865 1,520,744
Construction work in progress 20,564 46,628 92,682
Held for future use 1,106 1,150 2,958
Electric plant - Net 1,672,885 1,656,643 1,616,384
INVESTMENTS AND OTHER PROPERTY 16,826 18,034 20,772
CURRENT ASSETS:
Cash and cash equivalents (Note 1) 8,468 7,748 8,228
Receivables:
Customer 33,357 31,889 29,741
Allowance for uncollectible accounts (1,397) (1,377) (1,377)
Notes 5,134 4,962 5,616
Employee notes receivable 4,648 5,444 5,909
Other 10,770 4,316 1,858
Accrued unbilled revenues (Note 1) 25,025 29,115 25,583
Materials and supplies
(at average cost) 25,937 24,141 23,372
Fuel stock (at average cost) 13,063 11,310 11,553
Prepayments (Note 9) 20,778 21,398 20,975
Regulatory assets associated
with income taxes (Note 1) 5,777 5,674 4,914
Total current assets 151,561 144,620 136,372
DEFERRED DEBITS:
American Falls and Milner water rights 32,440 32,605 32,755
Company-owned life insurance (Note 9) 56,066 49,510 45,294
Regulatory assets associated with
income taxes (Note 1) 200,379 179,311 171,569
Regulatory assets - other (Note 1) 68,348 67,713 35,036
Other 43,248 43,380 39,235
Total deferred debits 400,481 372,519 323,889
TOTAL $2,241,753 $2,191,816 $2,097,417
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
CONSOLIDATED BALANCE SHEETS
CAPITALIZATION AND LIABILITIES
December 31,
1995 1994 1993
(Thousands of Dollars)
CAPITALIZATION (See Page 8):
Common stock equity (Note 3):
Common stock - $2.50 par value
(shares authorized 50,000,000;
shares outstanding 1995 -
37,612,351, 1994 - 37,612,351
and 1993 - 37,085,055 $ 94,031 $ 94,031 $ 92,713
Premium on capital stock 363,044 363,063 350,882
Capital stock expense (4,127) (4,132) (4,128)
Retained earnings 229,827 220,838 222,900
Total common stock equity 682,775 673,800 662,367
Preferred stock (Note 4) 132,181 132,456 132,751
Long-term debt (Note 5) 672,618 693,206 693,780
Total capitalization 1,487,574 1,499,462 1,488,898
CURRENT LIABILITIES:
Long-term debt due within one year 20,517 517 466
Notes payable (Note 7) 53,020 55,000 4,000
Accounts payable 40,483 32,063 31,912
Taxes accrued 15,409 16,394 15,452
Interest accrued 14,785 14,755 14,920
Accumulated deferred income taxes
(Notes 1 & 2) 5,777 5,674 4,914
Other 12,866 12,574 13,731
Total current liabilities 162,858 136,977 85,395
DEFERRED CREDITS:
Regulatory liabilities associated
with accumulated deferred
investment tax credits (Notes
1 and 2) 70,507 71,593 72,013
Accumulated deferred income taxes
(Notes 1 and 2) 408,394 375,252 353,366
Regulatory liabilities associated
with income taxes (Note 1) 34,554 35,090 34,968
Regulatory liabilities - other
(Note 1) 789 626 4,235
Other (Note 9) 77,076 72,816 58,542
Total deferred credits 591,321 555,377 523,124
COMMITMENTS AND CONTINGENT
LIABILITIES (Note 8)
TOTAL $2,241,753 $2,191,816 $2,097,417
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
CONSOLIDATED STATEMENTS OF INCOME
Year Ended December 31,
1995 1994 1993
(Thousands of Dollars)
REVENUES (Note 1) $545,621 $543,658 $540,402
EXPENSES:
Operation:
Purchased power (Notes 8 and 10) 54,586 60,216 45,361
Fuel expense (Note 10) 54,691 94,888 87,855
Power cost adjustment (Note 1) 7,292 (12,076) (1,551)
Other 126,714 123,328 122,803
Maintenance 35,953 43,490 43,136
Depreciation (Note 1) 67,415 60,202 58,724
Taxes other than income taxes 22,979 23,945 22,129
Total expenses 369,630 393,993 378,457
INCOME FROM OPERATIONS 175,991 149,665 161,945
OTHER INCOME:
Allowance for equity funds used
during construction (Note 1) (16) 1,680 3,060
Other - Net 14,372 10,480 9,924
Total other income 14,356 12,160 12,984
INTEREST CHARGES:
Interest on long-term debt 51,146 51,172 53,706
Other interest (Notes 1 and 7) 5,309 3,261 2,750
Total interest charges 56,456 54,433 56,456
Allowance for borrowed funds used during
construction (Note 1) (1,442) (1,781) (2,465)
Net interest charges 55,014 52,652 53,991
INCOME BEFORE INCOME TAXES 135,333 109,173 120,938
INCOME TAXES (Notes 1 and 2) 48,412 34,243 36,474
NET INCOME 86,921 74,930 84,464
Dividends on preferred stock (Note 4) 7,991 7,398 6,009
EARNINGS ON COMMON STOCK $ 78,930 $ 67,532 $ 78,455
AVERAGE COMMON SHARES
OUTSTANDING (000) 37,612 37,499 36,675
EARNINGS PER SHARE OF
COMMON STOCK (Note 3) $ 2.10 $ 1.80 $ 2.14
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
Year Ended December 31,
1995 1994 1993
(Thousands of Dollars)
RETAINED EARNINGS
Beginning of year $220,838 $222,900 $212,404
NET INCOME 86,921 74,930 84,464
Total 307,759 297,830 296,868
DIVIDENDS:
Preferred stock (Note 4) 7,991 7,398 6,009
Common stock (per share:
1995 - 1993 - $1.86) (Note 3) 69,941 69,594 67,959
Total dividends 77,932 76,992 73,968
RETAINED EARNINGS
End of year $229,827 $220,838 $222,900
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
CONSOLIDATED STATEMENTS OF CAPITALIZATION
December 31,
1995 % 1994 % 1993 %
(Thousands of Dollars)
COMMON STOCK EQUITY (Note 3):
Common stock $ 94,031 $ 94,031 $ 92,713
Premium on capital stock 363,044 363,063 350,882
Capital stock expense (4,127) (4,132) (4,128)
Retained earnings 229,827 220,838 222,900
Total common stock equity 682,775 46 673,800 45 662,367 44
PREFERRED STOCK (Note 4):
4% preferred stock 17,181 17,456 17,751
7.68% Series, serial preferred
stock 15,000 15,000 15,000
8.375% Series, serial preferred
stock 25,000 25,000 25,000
Auction rate preferred stock 50,000 50,000 50,000
7.07% Series, serial
preferred stock 25,000 25,000 25,000
Total preferred stock 132,181 9 132,456 9 132,751 9
LONG-TERM DEBT (Note 5):
First mortgage bonds:
5 1/4 % Series due 1996 20,000* 20,000 20,000
5.33 % Series due 1998 30,000 30,000 30,000
8.65 % Series due 2000 80,000 80,000 80,000
6.40 % Series due 2003 80,000 80,000 80,000
8 % Series due 2004 50,000 50,000 50,000
9.50 % Series due 2021 75,000 75,000 75,000
7.50 % Series due 2023 80,000 80,000 80,000
8 3/4 % Series due 2027 50,000 50,000 50,000
9.52 % Series due 2031 25,000 25,000 25,000
Total first mortgage bonds 490,000 490,000 490,000
*Amount due within one year (20,000) - -
Net first mortgage bonds 470,000 490,000 490,000
Pollution control revenue bonds:
5.90 % Series due 2003 24,200* 24,650* 25,050*
6.0 % Series due 2007 24,000 24,000 24,000
7 1/4 % Series due 2008 4,360 4,360 4,360
7 5/8 % Series 1983 - 1984
due 2013 - 2014 68,100 68,100 68,100
8.30 % Series 1984 due 2014 49,800 49,800 49,800
Total pollution control
revenue bonds 170,460 170,910 171,310
*Amount due within one year (450) (450) (400)
Net pollution control revenue
bonds 170,010 170,460 170,910
REA notes 1,700 1,768 1,834
Amount due within one year (67) (67) (66)
Net REA notes 1,633 1,701 1,768
American Falls bond guarantee 20,740 20,905 21,055
Milner Dam note guarantee 11,700 11,700 11,700
Unamortized premium/discount-
Net (Note 1) (1,466) (1,560) (1,653)
Total long-term debt 672,618 45 693,206 46 693,780 47
TOTAL CAPITALIZATION $1,487,574 100 $1,499,462 100 $1,488,898 100
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
1995 1994 1993
(Thousands of Dollars)
OPERATING ACTIVITIES:
Cash received from operations:
Retail revenues $468,821 $457,202 $434,625
Wholesale revenues 59,260 62,110 84,726
Other revenues 22,825 23,711 23,411
Fuel paid (61,741) (94,530) (83,885)
Purchased power paid (52,526) (62,592) (50,246)
Other operation & maintenance paid (154,209) (171,774) (162,014)
Interest pd. (incl. long and short-term
debt only) (54,303) (52,376) (56,348)
Income taxes paid (40,402) (16,518) (32,512)
Taxes other than income taxes paid (22,939) (21,698) (22,165)
Other operating cash receipts and payments
- Net 3,644 2,122 8,213
Net cash provided by operating activities 168,430 125,657 143,805
FINANCING ACTIVITIES:
First mortgage bonds issued - - 188,136
PC bond fund requisitions/other long-term debt - - 5,594
Common stock issued - 13,402 26,781
Preferred stock issued - - 24,781
Short-term borrowings - Net (2,000) 51,000 (2,140)
Long-term debt retirement (519) (466) (191,878)
Preferred stock retirement (151) (166) (65)
Dividends on preferred stock (7,888) (7,565) (5,914)
Dividends on common stock (69,967) (69,594) (67,959)
Other sources (781) - -
Net cash - financing activities (81,306) (13,389) (22,664)
INVESTING ACTIVITIES:
Additions to utility plant (83,965) (110,523) (122,949)
Conservation (5,688) (6,830) (6,687)
Other 3,249 4,605 11,757
Net cash - investing activities (86,404) (112,748) (117,879)
Change in cash and cash equivalents 720 (480) 3,262
Cash and cash equivalents beginning of year 7,748 8,228 4,966
Cash and cash equivalents end of year $ 8,468 $ 7,748 $ 8,228
RECONCILIATION OF NET INCOME TO NET
CASH PROVIDED BY OPERATING
ACTIVITIES:
Net income $ 86,921 $ 74,930 $ 84,464
Adjustments to reconcile net income to net cash:
Depreciation 67,415 60,202 58,724
Deferred income taxes 11,539 14,265 5,997
Investment tax credit - Net (1,086) (1,064) (1,583)
Allowance for funds used during construction (1,425) (3,461) (5,525)
Postretirement benefits funding
(excl pensions) (2,857) (5,182) (7,481)
Changes in operating assets and liabilities:
Accounts receivable 5,285 (635) 2,360
Fuel inventory (7,050) 358 3,970
Accounts payable 2,061 (2,376) (4,885)
Taxes payable (2,519) 7,296 (1,141)
Interest payable 2,100 1,656 (1,010)
Other - Net 8,046 (20,332) 9,915
Net cash provided by operating activities $168,430 $125,657 $143,805
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
PRINCIPLES OF CONSOLIDATION - The consolidated financial statements
include the accounts of the Company and its wholly-owned subsidiaries,
Idaho Energy Resources Co (IERCo), Ida-West Energy Company (Ida-West),
IDACORP, Inc., Idaho Utility Products Company (IUPCo), and Stellar
Dynamics. All significant intercompany transactions and balances have
been eliminated in consolidation.
SYSTEM OF ACCOUNTS - The Company is an electric utility and its
accounting records conform to the Uniform System of Accounts prescribed
by the Federal Energy Regulatory Commission (FERC) and adopted by the
public utility commissions of Idaho, Oregon, Nevada and Wyoming.
ELECTRIC PLANT - The cost of additions to electric plant in service
represents the original cost of contracted services, direct labor and
material, allowance for funds used during construction and indirect
charges for engineering, supervision and similar overhead items.
Maintenance and repairs of property and replacements and renewals of
items determined to be less than units of property are charged to
operations. For property replaced or renewed the original cost plus
removal cost less salvage is charged to accumulated provision for
depreciation while the cost of related replacements and renewals is
added to electric plant.
ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION (AFDC) - The allowance, a
non-cash item, represents the composite interest costs of debt, shown
as a reduction to interest charges, and a return on equity funds, shown
as an addition to other income, used to finance construction. While
cash is not realized currently from such allowance, it is realized
under the ratemaking process over the service life of the related
property through increased revenues resulting from higher rate base and
higher depreciation expense. Based on the uniform formula adopted by
the FERC, the Company's weighted average monthly AFDC rates for 1995,
1994 and 1993 were 6.1 percent, 8.2 percent and 9.6 percent,
respectively.
REVENUES - In order to match revenues with associated expenses, the
Company accrues unbilled revenues for electric services delivered to
customers but not yet billed at month-end.
POWER COST ADJUSTMENT- The Company has in place, in its Idaho
jurisdiction, a Power Cost Adjustment (PCA) mechanism which allows
Idaho's retail customer rates to be adjusted annually to reflect the
Idaho share of forecasted net power supply costs. Deviations from
forecasted costs are deferred with interest and then adjusted (trued-
up) in the subsequent year.
DEPRECIATION - All electric plant is depreciated using the straight-
line method. Annual depreciation provisions as a percent of average
depreciable electric plant in service approximated 2.90 percent in
1995, 2.93 percent in 1994 and 2.92 percent in 1993 and are considered
adequate to amortize the original cost over the estimated service lives
of the properties.
INCOME TAXES - The Company follows the liability method of computing
deferred taxes on all temporary differences between book and tax basis
of assets and liabilities and adjust deferred tax liabilities and
assets for enacted changes in tax laws or rates. Consistent with orders
and directives of the Idaho Public Utilities Commission (IPUC), the
regulatory authority having principal jurisdiction, deferred income
taxes (commonly referred to as normalized accounting) are provided for
the difference between income tax depreciation and straight-line
depreciation on coal-fired generation facilities and properties
acquired after 1980. On other facilities, deferred income taxes are
provided for the difference between accelerated income tax depreciation
and straight-line depreciation using tax guideline lives on assets
acquired prior to 1981. Deferred income taxes are not provided for
those income tax timing differences where the prescribed regulatory
accounting methods do not provide for current recovery in rates.
Regulated enterprises are required to recognize such adjustments as
regulatory assets or liabilities if it is probable that such amounts
will be recovered from or returned to customers in future rates (see
Note 2).
The state of Idaho allows a three percent investment tax credit (ITC)
upon certain plant additions. ITC earned on regulated assets are
deferred and amortized to income over the estimated service lives of
the related properties and credits earned on non-regulated assets or
investments are recognized in the year earned.
In 1995, the Company received an accounting order from the IPUC
approving acceleration of amortization of up to $30.0 million of
regulatory liabilities associated with deferred ITC to non-operating
income subject to Internal Revenue Service (IRS) and the Idaho State
Tax Commission (STC) approvals. The IRS application for approval has
been filed and the STC has approved the application. Acceleration of
ITC amortization is to be utilized until the actual return on year-end
common equity is 11.5 percent. No accelerated ITC was recognized in
1995.
CASH AND CASH EQUIVALENTS - For purposes of reporting cash flows, cash
and cash equivalents include cash on hand and highly liquid temporary
investments with original maturity dates of three months or less.
REGULATION OF UTILITY OPERATIONS - The Company follows Statement of
Accounting Standards (SFAS) No. 71, "Accounting for the Effects of
Certain Types of Regulation", and its financial statements reflect the
effects of the different ratemaking principles followed by the various
jurisdictions regulating the Company. Pursuant to SFAS No. 71 the
Company capitalizes, as deferred regulatory assets, incurred costs
which are expected to be recovered in future utility rates. The Company
also records as deferred regulatory liabilities the current recovery in
utility rates of costs which are expected to be paid in the future.
The following is a breakdown of regulatory assets and liabilities for
the years 1995, 1994 and 1993:
1995 1994 1993
Assets Liabilities Assets Liabilities Assets Liabilities
(Millions of Dollars)
Income taxes $206.2 $ 34.6 $185.0 $ 35.1 $176.5 $ 35.0
Conservation 36.3 29.7 21.2
Employee benefits 8.3 9.5 7.4
Other 23.7 0.7 28.5 0.6 6.4 4.2
Accumulated
deferred investment
tax credits 70.5 71.6 72.0
Total $274.5 $105.8 $252.7 $107.3 $211.5 $111.2
The regulatory environment is becoming more complex resulting from the
expanding effects of competition. In the event that recovery of cost
through rates becomes unlikely or uncertain, this may force the Company
away from the cost of service ratemaking and SFAS No. 71 would no
longer apply. If the Company were to discontinue application of SFAS
No. 71 for some or all of its operations then these items may represent
stranded investments. Certain regulators are currently reviewing ways
to allow the electric utilities to recover these investments in the
event the customers are allowed to choose their energy supplier.
However, if the Company is not allowed recovery of these investments it
would be required to write off the applicable portion of regulatory
assets and the financial effects could be significant. At December 31,
1995, the Company had $17.6 million of regulatory assets that were not
earning a return on investment excluding the $206.2 million that
relates to income taxes.
OTHER ACCOUNTING POLICIES - Debt discount, expense and premium are
being amortized over the terms of the respective debt issues.
RECLASSIFICATIONS - Certain items previously reported for years prior
to 1995 have been reclassified to conform with the current year's
presentation. Net income was not affected by these reclassifications.
2. INCOME TAXES:
1995 1994 1993
(Thousands of Dollars)
A reconciliation between the
statutory federal income tax rate
and the effective rate is as follows:
Computed income taxes based on
statutory federal income tax rate $ 47,367 $ 38,210 $ 42,328
Change in taxes resulting from:
AFUDC (504) (1,211) (1,798)
Investment tax credits (2,837) (3,351) (2,898)
Repair allowance (3,150) (1,575) (2,975)
Elimination of amounts provided
in prior years (1,963) (2,607) (4,686)
Current state income taxes 3,275 1,496 2,693
Depreciation 5,493 2,812 4,116
Other 731 469 (306)
Total provision for federal and state
income taxes $ 48,412 $ 34,243 $ 36,474
Effective tax rate 35.8% 31.4% 30.2%
The provision for income taxes consists of the following:
Income taxes currently payable:
Federal $ 33,456 $ 19,617 $ 27,892
State 4,503 1,425 4,168
Total 37,959 21,042 32,060
Income taxes deferred - Net of amortization:
Federal 10,904 12,595 5,928
State 635 1,670 69
Total 11,539 14,265 5,997
Investment and other tax credits:
Deferred 1,751 1,643 1,315
Restored (2,837) (2,707) (2,898)
Total (1,086) (1,064) (1,583)
Total provision for income taxes $ 48,412 $ 34,243 $ 36,474
The tax effects of significant items comprising the
Company's net deferred tax liability are as follows:
Deferred tax Liabilities:
Property, plant and equipment $237,655 $225,444 $217,343
Regulatory asset 206,156 184,986 176,483
Investment tax credit 70,507 71,593 72,013
Conservation programs 11,746 4,704 2,739
Other 18,489 17,811 11,384
Total 544,553 504,538 479,962
Deferred tax assets:
Regulatory liability 34,554 35,090 34,968
Advances for construction 14,823 10,542 8,103
Other 10,498 6,387 6,598
Total 59,875 52,019 49,669
Net deferred tax liabilities $484,678 $452,519 $430,293
The Company has settled Federal and Idaho tax liabilities on all open
years through the 1992 tax year except for amounts related to a
partnership which, in management's opinion, have been adequately
accrued for.
3. COMMON STOCK:
Changes in shares of the common stock of the Company for 1995, 1994 and
1993 were as follows:
Common Stock
$2.50 Par Premium on
Shares Value Capital Stock
(Thousands of Dollars)
Balance at December 31, 1992 36,186,527 $90,466 $326,338
Gain on reacquired 4% preferred
stock (Note 4) - - 50
Stock purchase plans 898,528 2,247 24,494
Balance at December 31, 1993 37,085,055 92,713 350,882
Gain on reacquired 4% preferred
stock (Note 4) - - 126
Stock purchase plans 527,296 1,318 12,055
Balance at December 31, 1994 37,612,351 94,031 363,063
Gain on reacquired 4% preferred
stock (Note 4) - - 117
Restricted Stock Plan (Note 9) - - (136)
Balance at December 31, 1995 37,612,351 $94,031 $363,044
During the period of January 1993 through May 1994, the Company issued
original issue shares of common stock for its Dividend Reinvestment and
Stock Purchase Plan and the Employee Savings Plan. During 1993 and 1994
common shares totaling 898,528 and 527,296 respectively, were issued to
these plans.
As of December 31, 1995, the Company had 2,791,321 of its authorized
but unissued shares of common stock reserved for future issuance under
its Dividend Reinvestment and Stock Purchase Plan and Employee Savings
Plan.
On January 11, 1990, the Board of Directors adopted a Shareowner Rights
Plan (Plan). Under the Plan, the Company declared a distribution of one
Preferred Stock Right (Right) for each of the Company's outstanding
Common shares held on January 29, 1990 or issued thereafter. The Rights
are currently not exercisable and will be exercisable only if a person
or group (Acquiring Person) either acquires ownership of 20 percent or
more of the Company's Voting Stock or commences a tender offer that
would result in ownership of 20 percent or more. The Company may redeem
the Rights at a price of $0.01 per Right anytime prior to acquisition
by an Acquiring Person of a 20 percent position.
Following the acquisition of a 20 percent position, each Right will
entitle its holder, subject to regulatory approval, to purchase for $85
that number of shares of Common Stock or Preferred Stock having a
market value of $170.
If after the Rights become exercisable, the Company is acquired in a
merger or other business combination, 50 percent or more of its
consolidated assets or earnings power are sold or the Acquiring Person
engages in certain acts of self-dealing, each Right entitles the holder
to purchase for $85, shares of the acquiring company's Common Stock
having a market value of $170. Any Rights that are or were held by an
Acquiring Person become void if either of these events occurs. The
Rights expire on January 11, 2000.
4. PREFERRED STOCK:
The number of shares of preferred stock outstanding at December 31,
1995, 1994 and 1993 were as follows:
Shares Outstanding at
December 31, Call Price
1995 1994 1993 Per Share
Preferred stock:
Cumulative, $100 par value:
4% preferred stock (authorized
215,000 shares) 171,813 174,556 177,506 $104.00
Serial preferred stock, 7.68%
Series (authorized 150,000
shares) 150,000 150,000 150,000 $102.97
Serial preferred stock, cumulative,
without par value; total of
3,000,000 shares authorized:
8.375% Series, $100 stated value,
(authorized 250,000 shares)(a) 250,000 250,000 250,000 $105.58
to $100.37
7.07% Series, $100 stated value,
(authorized 250,000 shares)(b) 250,000 250,000 250,000 $103.535
to $100.354
Auction rate preferred stock,
$100,000 stated value,
(authorized 500 shares)(c) 500 500 500 $100,000.00
Total 822,313 825,056 828,006
(a) Not redeemable prior to October 1, 1996.
(b) Not redeemable prior to July 1, 2003.
(c) Dividend rate at December 31, 1995 was 4.49% and ranged between
4.36% and 4.71% during the year.
During 1995, 1994 and 1993 the Company reacquired and retired 2,743;
2,950 and 1,229 shares of 4% preferred stock resulting in a net
addition to premium on capital stock of $117,346, $126,066 and $50,151
respectively. As of December 31, 1995 the overall effective cost of all
outstanding preferred stock was 6.28 percent.
5. LONG-TERM DEBT:
The amount of first mortgage bonds issuable by the Company is limited
to a maximum of $900,000,000 and by property, earnings and other
provisions of the mortgage and supplemental indentures thereto.
Substantially all of the electric utility plant is subject to the lien
of the indenture. Pollution Control Revenue Bonds, Series 1984, due
December 1, 2014, are secured by First Mortgage Bonds, Pollution
Control Series A, which were issued by the Company and are held by a
Trustee for the benefit of the bondholders.
First mortgage bonds maturing during the five-year period ending 2000
are $20,000,000 in 1996, $30,000,000 in 1998 and $80,000,000 in 2000.
Sinking fund requirements for the first mortgage bonds outstanding at
December 31, 1995 are $5,398,000 per year. These requirements may be
met by the deposit of cash, deposit of bonds, or by certification of
property additions at the rate of 167% of requirements. The Company's
practice is to certify additional property to meet the sinking fund
requirements. In September 1993, 1994, and 1995 $400,000, $400,000 and
$450,000 respectively, of the 5.90% Series, Pollution Control Revenue
Bonds, were retired pursuant to sinking fund requirements for those
years. Sinking fund requirements during the five-year period ending
2000 for pollution control bonds outstanding at December 31, 1995 are
$450,000 in 1996 and $500,000 in 1997 through 2000. At December 31,
1993, 1994 and 1995, the overall effective cost of all outstanding
first mortgage bonds and pollution control revenue bonds for all three
years was 8.02 percent.
6. FAIR VALUE OF FINANCIAL INSTRUMENTS:
The estimated fair value of the Company's financial instruments have
been determined by the Company using available market information and
appropriate valuation methodologies. The use of different market
assumptions and/or estimation methodologies may have a material effect
on the estimated fair value amounts.
Cash and cash equivalents, customer and other receivables, notes
payable, accounts payable, interest accrued, and taxes accrued are
reported at their carrying value as these are a reasonable estimate of
their fair value. The total estimated fair value of long-term debt was
approximately $762,575,000 for 1993, $682,647,000 for 1994 and
$731,168,000 for 1995. The estimated fair values for long-term debt are
based upon quoted market prices of the same or similar issues.
7. NOTES PAYABLE:
At January 1, 1996, the Company had regulatory authority to incur up to
$150,000,000 of short-term indebtedness. Under this authority, total
lines of credit maintained with various banks amounted to $85,000,000.
Under annual borrowing arrangements with these banks, the Company is
required to pay a fee of 8/100 of 1 percent on the available and
committed lines of credit. Commercial paper may be issued in an amount
not to exceed 25 percent of revenues for the latest twelve-month period
subject to the $150,000,000 maximum described above and are supported
by bank lines of credit of an equal amount.
Balances and interest rates of short-term borrowings were as follows:
Year Ended December 31,
1995 1994 1993
(Thousands of Dollars)
Balance at end of year $53,020 $55,000 $4,000
Effective annual interest rate
at end of year 6.0% 6.1% 6.9%
(a) Effective rate has been inflated by the commitment fees being
larger than the interest paid for the year.
If the commitment fees were excluded the effective annual interest
rate at end of the year would have been 3.6%.
8. 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 $2,600,000 at December 31, 1995. The commitments are
generally revocable by the Company subject to reimbursement of
manufacturers' expenditures incurred and/or other termination charges.
The Company is currently purchasing energy from 65 on-line cogeneration
and small power production facilities with contracts ranging from 1 to
32 years. Under these contracts the Company could be required to
purchase up to 782,000 (MWH) annually. During the fiscal year ended
December 31, 1995, the Company purchased 654,000 (MWH) at a cost of
$38.0 million.
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 flow.
9. BENEFIT PLANS:
Incentive Plan - The Company implemented two annual incentive plans
effective January 1, 1995. The Executive Annual Incentive Plan and the
Employee Incentive Plan tie a portion of each employee's compensation
to achieving annual operational and financial goals. The plans share
common goals designed to promote safety, control capital expenditures,
control operation and maintenance expenses and increase annual earnings
per share. At December 31, 1995 the Company had recorded $2,898,785 of
incentive for the Plans.
Restricted Stock Plan - The 1994 Restricted Stock Plan ("Plan")
approved by shareholders at the May 1994 Annual Meeting was implemented
January 1, 1995 as an equity-based long-term incentive plan. The
performance-based grant approach and administrative guidelines for the
Plan were developed by the Compensation Committee of the Board of
Directors ("Committee") during 1994. At December 31, 1995, there were
370,000 shares reserved for the Plan. The first grant under the Plan
was made to all officers during January 1995. For the first grant, the
Committee has selected a three-year restricted period beginning January
1, 1995, through December 31, 1997, with a single financial performance
goal of Cumulative Earnings Per Share ("CEPS"). Final award amounts
will depend on the attainment by the Company of the CEPS performance
goal established by the Committee and may be prorated in the event of
death, disability or retirement of an officer based on the number of
whole months of service the officer completes during the Restricted
Period. Upon the officer's termination of employment during the
Restricted Period for any other reason, all such shares will be
forfeited by the officer to the Trustee.
During 1995, the Company purchased and granted 9,480 shares of the
Company's common stock for this Plan. Of this amount 360 shares were
forfeited in 1995. Restricted stock awards are compensatory awards and
the Company accrued compensation expense of $91,200 for 1995 (which was
charged to operations) based upon the market value of the earned
shares.
Pension Plan - The Company maintains a trusteed noncontributory defined
benefit pension plan for all employees who work 1,000 hours or more
during a calendar year. The benefits under the plan are based on years
of service and the employee's final average earnings. The Company's
policy is to fund with an independent corporate trustee at least the
minimum required under the Employee Retirement Income Security Act of
1974 but not more than the maximum amount deductible for income tax
purposes. The Company funded $5.9 million in 1995, $5.5 million in 1994
and $5.0 million in 1993. The plan's assets held by the trustee consist
primarily of listed stocks (both U.S. and foreign), fixed income
securities and investment grade real estate.
Deferred Compensation Plan - The Company has a nonqualified, deferred
compensation plan for certain senior management employees and directors
that provides for supplemental retirement and death benefit payments to
the participant and his or her family. The plan is being financed by
life insurance policies, of which the Company is the beneficiary, with
premiums being paid by the Company. These policies have accumulated
cash values of $53.0, $47.1 and $42.4 million at December 31, 1995,
1994 and 1993, respectively, which do not qualify as plan assets in the
actuarial computation of the funded status. Based upon SFAS No. 87, the
Company has recorded a net liability of $21.5 million as of December
31, 1995.
The following tables set forth the amounts recognized in the Company's
financial statements and the funded status of both plans in accordance
with accounting standard SFAS No. 87, "Employers' Accounting for
Pensions."
Plan Costs for the Year: 1995 1994 1993
(Thousands of Dollars)
Pension plan:
Service cost $ 5,167 $ 6,049 $ 4,496
Interest cost 12,998 12,263 11,688
Actual return on plan assets (45,990) 312 (23,322)
Deferred gain (loss) on plan assets 31,489 (15,584) 9,848
Net cost $ 3,664 $ 3,040 $ 2,710
Approximate percentage included in
operating expenses 65% 67% 66%
Net deferred compensation plan costs
charged to other income (including
life insurance and SFAS No. 87
liability accrual)(a) $ 37 $ 508 $ 1,372
(a) These charges to the Income Statement have been reduced by
gains from the Company-Owned Life Insurance of $2,320; $2,724, and
$1,638, for 1995, 1994 and 1993, respectively.
Funded status and significant assumptions as of December 31:
Deferred
Pension Plan Compensation Plan
1995 1994 1993 1995 1994 1993
(Thousands of Dollars)
Actuarial present value of
benefit obligations:
Vested benefit obligation $145,334 $128,162 $134,292 $ 21,530 $ 19,148 $ 24,024
Accumulated benefit
obligation $150,688 $132,766 $139,270 $ 21,530 $ 19,148 $ 24,027
Projected benefit obligation $193,133 $167,103 $179,895 $ 22,111 $ 19,681 $ 30,114
Plan assets at fair value 204,760 165,839 169,920 - - -
Plan assets in excess of (or
less than) projected benefit
obligation 11,627 (1,264) (9,975) (22,111) (19,681) (30,114)
Unrecognized net (gain) loss
from past experience different
from that assumed (8,341) 6,040 17,295 4,389 2,173 7,295
Unrecognized prior service cost 5,941 6,365 1,460 (3,097) (3,516) 2,546
Unrecognized net (asset)
obligation existing at date of
initial adoption (19.5 year
straight-line amortization) (2,493) (2,756) (3,019) 5,827 6,440 7,053
Minimum liability adjustment - - - (6,538) (4,564) (10,807)
Net asset (liability) included
in the balance sheet $ 6,734 $ 8,385 $ 5,761 $(21,530) $(19,148) $(24,027)
Discount rate to compute
projected benefit obligation 7.25% 8.0% 7.0% 7.25% 8.0% 7.0%
Rate for future compensation
increases 4.5 4.5 4.5 4.5 4.5 4.5
Expected long-term rate of
return on plan assets 9.0 9.0 9.0 - - -
Supplemental Employee Retirement Plan (SERP) - The Company has a
nonqualified SERP that provides benefits in excess of Internal
Revenue Service limits (Section 401 (a) (17) of the Internal
Revenue Code) for highly paid individuals. The projected benefit
obligation of this plan was $1,581,000, $857,000 and $525,000 at
December 31, 1995, 1994 and 1993, respectively, with accrued
pension costs of $682,000, $396,000 and $226,000. The Company's
net periodic pension cost of this plan was $184,000, $125,000 and
$36,000 for the same periods.
Savings Plan - The Company has an Employee Savings Plan whereby,
for each $1 of employee contribution up to 6 percent of their
base salary the Company will match 100 percent of the first 2
percent employee contribution and 50 percent of the next 4
percent employee contribution, all such amounts to be invested by
a trustee to any or all of seven investment options. The
Company's contribution amounted to $2,426,840 in 1995, $2,410,200
in 1994 and $2,283,200 in 1993.
Postretirement Benefits - The Company maintains a defined benefit
postretirement plan (consisting of health care and life
insurance) that covers all employees who were enrolled in the
active group plan at the time of retirement, their spouses and
qualifying dependents. The plan provides for payment of hospital
services, physician services, prescription drugs, dental services
and various other health services, some of which have annual or
lifetime limits, after subtracting payments by Medicare or other
providers and after a stated deductible and co-payments have been
met. Participants become eligible for the benefits if they retire
from the Company after reaching age 55 with 15 years of service
or after 30 years of service. The plan is contributory with
retiree contributions adjusted annually. For those retirees that
were age 65 or older at December 31, 1992 the plan is
noncontributory. The Company also provides life insurance of one
times salary for pre-65 retirees and $20,000 for post-65 retirees
with the retirees paying a portion of the cost.
The following tables set forth the amounts to be recognized in
the Company's financial statements for year-end 1995, 1994 and
1993 and the funded status of the plan in accordance with
accounting standard SFAS No. 106 as of December 31:
1995 1994 1993
Postretirement Benefit Cost: (Thousands of Dollars)
Service Cost $ 763 $ 855 $ 750
Interest Cost 3,571 3,334 3,610
Actual return on plan assets (1,116) (1,114) (860)
Amortization of transition obligation
20 year amortization) 2,040 2,040 2,040
Net amortization and deferral - - -
Regulatory assets 506 (1,907) (3,548)
Voluntary severance program 64 - -
Net cost $ 5,828 $ 3,208 $ 1,992
1995 1994 1993
Funded Status: (Thousands of Dollars)
Accumulated postretirement benefit
obligation (APBO) $(48,928) $(45,001) $(48,290)
Plan assets at fair value 15,920 12,116 11,840
APBO in excess of plan assets (33,008) (32,885) (36,450)
Unrecognized gain/losses 378 773 4,670
Unrecognized transition obligation 34,680 36,720 38,760
Prepaid postretirement benefit cost $ 2,050 $ 4,608 $ 6,980
Discount rate 7.50% 8.25% 7.25%
Medical and dental inflation rate 6.75 7.25 6.75
Long-term plan assets expected return 9.0 9.0 9.0
A one percent change in the medical inflation rate would change
the APBO by 7.2 percent and the postretirement expense for 1995
by 8.6 percent.
The Company has a retiree medical benefits funding program which
consists of life insurance policies on active employees of which
the Company is the beneficiary, and a qualified Voluntary
Employees Beneficiary Association (VEBA) Trust. The net charge to
other income for the life insurance policies was $1,754,300 in
1995, $776,400 in 1994 and $632,500 in 1993. The funding to the
VEBA was $916,200 in 1995, $743,600 in 1994 and $2,692,000 in
1993 and recorded as a prepayment. The VEBA trust represents plan
assets which are invested in variable life insurance policies,
Trust Owned Life Insurance (TOLI), on active employees. Inside
buildup in the TOLI policies is tax deferred and tax free if the
policy proceeds are paid to the Trust as death benefits. The
investment return assumption reflects an expectation that
investment income in the VEBA will be substantially tax free.
Postemployment Benefits - The Company provides certain benefits
to former or inactive employees, their beneficiaries, and covered
dependents after employment but before retirement. The Company
accrues for such postemployment benefits. These benefits include
salary continuation and related health care and life insurance
for both long and short-term disability plans, workmen's
compensation and health care for surviving spouse and dependent
plan. The Company recognizes a deferred asset which represents
future revenue expected to be realized at the time the
postemployment benefits are included in the Company's rates. The
Company has recorded a liability of $3.7 million and a regulatory
asset of $3.4 million which represents the costs associated with
postemployment benefits at December 31, 1995. The Company
received IPUC Order No. 25880 authorizing the amortization of the
regulatory asset over a 10-year period.
10.ELECTRIC PLANT IN SERVICE AND JOINTLY-OWNED PROJECTS:
The following table sets out the major classifications of the
Company's electric plant in service and accumulated provision for
depreciation for the years 1995, 1994, and 1993.
Electric Plant in Service: 1995 1994 1993
(Thousands of Dollars)
Production $1,350,239 $1,303,572 $1,229,237
Transmission 330,812 308,055 298,201
Distribution 648,549 625,149 582,604
General and other 152,230 147,122 139,681
Total in service 2,481,830 2,383,898 2,249,723
Accumulated provision for
depreciation (830,615) (775,033) (728,979)
In service - Net $1,651,215 $1,608,865 $1,520,744
The Company is involved in the ownership and operation of three
jointly-owned generating facilities. The Consolidated Statements
of Income include the Company's proportionate share of direct
operation and maintenance expenses applicable to the projects.
Each facility and extent of Company participation as of December
31, 1995 are as follows:
Company Ownership
Electric Accumulated
Plant In Provision for
Name of Plant/Location Service Depreciation % MW
(Thousands of Dollars)
Jim Bridger Units 1-4
Rock Springs, WY $379,008 $159,721 33 693
Boardman
Boardman, OR 60,368 26,087 10 53
Valmy Units 1 & 2
Winnemucca, NV 299,189 105,612 50 261
The Company's wholly-owned subsidiary, IERCO, is a joint venturer
in Bridger Coal Company, which operates the mine supplying coal
for the Jim Bridger steam generation plant. Coal purchased by the
Company from the joint venture amounted to $44,278,000 in 1995,
$46,097,000 in 1994 and $45,424,000 in 1993.
The Company has contracts to purchase the energy from five PURPA
Qualified Facilities which are 50 percent owned by Ida-West.
Power purchased from these facilities amounted to $8,695,800 in
1995, $7,139,000 in 1994 and $5,975,093 in 1993.
INDEPENDENT AUDITORS' REPORT
Board of Directors and Shareowners of Idaho Power Company:
We have audited the accompanying consolidated financial statements
of Idaho Power Company and its subsidiaries listed in the
accompanying index to financial statements and financial
statement schedules at Item 8. These financial statements
and financial statement schedules are the responsibility
of the Company's management. Our responsibility is to
express an opinion on the financial statements and financial
statement schedules based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used
and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such consolidated financial statements present
fairly, in all material respects, the consolidated financial
position of Idaho Power Company and subsidiaries at December 31,
1995, 1994, and 1993, and the results of their operations and
their cash flows for the years then ended, in conformity with
generally accepted accounting principles. Also, in our opinion,
such financial statement schedule, when considered in relation
to the basic consolidated financial statements taken as a whole,
present fairly in all material respects the information set forth
therein.
Deloitte & Touche LLP
Portland, Oregon
January 31, 1996
IDAHO POWER COMPANY
SUPPLEMENTAL FINANCIAL INFORMATION, UNAUDITED
QUARTERLY FINANCIAL DATA:
The following unaudited information is presented for each quarter
of 1995, 1994 and 1993 (in thousands of dollars, except for per
share amounts). In the opinion of the Company, all adjustments
necessary for a fair statement of such amounts for such periods
have been included. The results of operation for the interim
periods are not necessarily indicative of the results to be
expected for the full year. Accordingly, earnings information for
any three month period should not be considered as a basis for
estimating operating results for a full fiscal year. Amounts are
based upon quarterly statements and the sum of the quarters may
not equal the annual amount reported.
Quarter Ended
March 31 June 30 Sept 30 Dec 31
1995
Revenues $131,336 $130,254 $148,726 $135,306
Income from operations 46,552 38,681 45,637 45,122
Income taxes 14,234 10,951 12,442 10,786
Net income 20,727 17,588 23,772 24,833
Dividends on preferred stock 2,026 2,006 1,976 1,982
Earnings on common stock 18,701 15,582 21,796 22,851
Earnings per share of common
stock 0.50 0.41 0.58 0.61
1994
Revenues 128,810 128,541 151,031 135,277
Income from operations 37,408 33,984 33,609 44,663
Income taxes 9,406 6,554 8,150 10,133
Net income 18,260 17,030 16,289 23,351
Dividends on preferred stock 1,789 1,819 1,862 1,928
Earnings on common stock 16,471 15,211 14,427 21,423
Earnings per share of common
stock 0.44 0.41 0.38 0.57
1993
Revenues 140,809 129,471 134,577 135,545
Income from operations 41,479 38,980 34,286 47,201
Income taxes 10,610 9,270 9,108 7,486
Net income 21,347 18,524 16,427 28,166
Dividends on preferred stock 1,345 1,318 1,565 1,781
Earnings on common stock 20,002 17,206 14,862 26,385
Earnings per share of common
stock 0.55 0.47 0.40 0.71
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULE
AND REPORTS ON FORM 8-K
(a) Please refer to Item 8, "Financial Statements and
Supplementary Data" for a complete listing of all
consolidated financial statements and financial statement
schedule.
(b) Reports on SEC Form 8-K. No reports on Form 8-K were filed
during the three months ended December 31, 1995.
(c) Exhibits.
* Previously Filed and Incorporated Herein by Reference
File As
Exhibit Number Exhibit
*3(a) 33-00440 4(a)(xiii) Restated Articles of Incorporation
of the Company as filed with the
Secretary of State of Idaho on
June 30, 1989.
*3(a)(i) 33-65720 4(a)(i) Statement of Resolution
Establishing Terms of 8.375%
Serial Preferred Stock, Without
Par Value (cumulative stated value
of $100 per share), as filed with
the Secretary of State of Idaho on
September 23, 1991.
*3(a)(ii) 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), as filed with
the Secretary of State of Idaho on
November 5, 1991.
*3(a)(iii) 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), 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 adopted
by Shareholders on May 1, 1991.
*3(c) 33-00440 4(a)(xiv) By-laws of the Company amended on
June 30, 1989, and presently in
effect.
*4(a)(i) 2-3413 B-2 Mortgage and Deed of Trust, dated
as of October 1, 1937, between the
Company and Bankers Trust Company
and R. G. Page, as Trustees.
*4(a)(ii) Supplemental Indentures to
Mortgage and Deed of Trust:
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 1, 1993
1-3198 4 Thirty-fourth December 1, 1993
Form 8-K
Dated
12/17/93
*4(b) Instruments relating to American
Falls bond guarantee. (see
Exhibits 10(f) and 10(f)(i)).
*4(c) 33-65720 4(f) Agreement to furnish certain debt
instruments.
*4(d) 33-00440 2(a)(iii) Agreement and Plan of Merger dated
March 10, 1989, between Idaho
Power Company, a Maine
Corporation, and Idaho Power
Migrating Corporation.
*4(e) 33-65720 4(e) Rights Agreement dated January 11,
1990, between the Company and
First Chicago Trust Company of New
York, as Rights Agent (The Bank of
New York, successor Rights Agent).
*10(a) 2-51762 5(a) Agreement, dated April 20, 1973,
between the Company and FMC
Corporation.
*10(a)(i) 2-57374 5(b) Letter Agreement, dated
October 22, 1975, relating to
agreement filed as Exhibit 10(a).
*10(a)(ii) 2-62034 5(b)(i) Letter Agreement, dated
December 22, 1976, relating to
agreement filed as Exhibit 10(a).
*10(a)(iii) 33-65720 10(a) Letter Agreement, dated
December 11, 1981, relating to
agreement filed as Exhibit 10(a).
*10(b) 2-49584 5(b) Agreements, dated September 22,
1969, between the Company and
Pacific Power & Light Company
relating to the operation,
construction and ownership of the
Jim Bridger Project.
*10(b)(i) 2-51762 5(c) Amendment, dated February 1, 1974,
relating to operation agreement
filed as Exhibit 10(b).
*10(c) 2-49584 5(c) Agreement, dated as of October 11,
1973, between the Company and
Pacific Power & Light Company.
*10(d) 2-49584 5(d) Agreement, dated as of October 24,
1973, between the Company and Utah
Power & Light Company.
*10(d)(i) 2-62034 5(f)(i) Amendment, dated January 25, 1978,
relating to agreement filed as
Exhibit 10(d).
*10(e) 33-65720 10(b) Coal Purchase Contract, dated as
of June 19, 1986, among the
Company, Sierra Pacific Power
Company and Black Butte Coal
Company.
*10(f) 2-57374 5(k) Contract, dated March 31, 1976,
between the United States of
America and American Falls
Reservoir District, and related
Exhibits.
*10(f)(i) 33-65720 10(c) Guaranty Agreement, dated
March 1, 1990, between the Company
and West One Bank, as Trustee,
relating to $21,425,000 American
Falls Replacement Dam Bonds of the
American Falls Reservoir District,
Idaho.
*10(g) 2-57374 5(m) Agreement, effective April 15,
1975, between the Company and The
Washington Water Power Company.
*10(h) 2-62034 5(p) Bridger Coal Company Agreement,
dated February 1, 1974, between
Pacific Minerals, Inc., and Idaho
Energy Resources Co.
*10(i) 2-62034 5(q) Coal Sales Agreement, dated
February 1, 1974, between Bridger
Coal Company and Pacific Power &
Light Company and the Company.
*10(i)(i) 33-65720 10(d) Second Restated and Amended Coal
Sales Agreement, dated March 7,
1988, among Bridger Coal Company
and PacifiCorp (dba Pacific
Power & Light Company) and the
Company.
*10(j) 2-62034 5(r) Guaranty Agreement, dated as of
August 30, 1974, with Pacific
Power & Light Company.
*10(k) 2-56513 5(i) Letter Agreement, dated January
23, 1976, between the Company and
Portland General Electric Company.
*10(k)(i) 2-62034 5(s) Agreement for Construction,
Ownership and Operation of the
Number One Boardman Station on
Carty Reservoir, dated as of
October 15, 1976, between Portland
General Electric Company and the
Company.
*10(k)(ii) 2-62034 5(t) Amendment, dated September 30,
1977, relating to agreement filed
as Exhibit 10(k).
*10(k)(iii) 2-62034 5(u) Amendment, dated October 31, 1977,
relating to agreement filed as
Exhibit 10(k).
*10(k)(iv) 2-62034 5(v) Amendment, dated January 23, 1978,
relating to agreement filed as
Exhibit 10(k).
*10(k)(v) 2-62034 5(w) Amendment, dated February 15,
1978, relating to agreement filed
as Exhibit 10(k).
*10(k)(vi) 2-68574 5(x) Amendment, dated September 1,
1979, relating to agreement filed
as Exhibit 10(k).
*10(l) 2-68574 5(z) Participation Agreement, dated
September 1, 1979, relating to the
sale and leaseback of coal
handling facilities at the Number
One Boardman Station on Carty
Reservoir.
*10(m) 2-64910 5(y) Agreements for the Operation,
Construction and Ownership of the
North Valmy Power Plant Project,
dated December 12, 1978, between
Sierra Pacific Power Company and
the Company.
*10(n)(i)1 1-3198 10(n)(i) The Revised Security Plans for
Form 10-K Senior Management Employees and
for 1994 for Directors-a non-qualified,
deferred compensation plan
effective November 30, 1994.
*10(n)(ii)1 1-3198 10(n)(ii) The Executive Annual Incentive
Form 10-K Plan for senior management
for 1994 employees effective January 1,
1995.
*10(n)(iii)1 1-3198 10(n)(iii) The 1994 Restricted Stock Plan for
Form 10-K officers and key executives
for 1994 effective July 1, 1994.
*10(o) 33-65720 10(f) Residential Purchase and Sale
Agreement, dated August 22, 1981,
among the United Stated of America
Department of Energy acting by and
through the Bonneville Power
Administration, and the Company.
*10(p) 33-65720 10(g) Power Sales Contact, dated
August 25, 1981, including
amendments, among the United
States of America Department of
Energy acting by and through the
Bonneville Power Administration,
and the Company.
___________________
1 Compensatory Plan
*10(q) 33-65720 10(h) Framework Agreement, dated October
1, 1984, between the State of
Idaho and the Company relating to
the Company's Swan Falls and Snake
River water rights.
*10(q)(i) 33-65720 10(h)(i) Agreement, dated October 25, 1984,
between the State of Idaho and the
Company relating to the agreement
filed as Exhibit 10(q).
*10(q)(ii) 33-65720 10(h)(ii) Contract to Implement, dated
October 25, 1984, between the
State of Idaho and the Company
relating to the agreement filed as
Exhibit 10(q).
*10(r) 33-65720 10(i) Agreement for Supply of Power and
Energy, dated February 10, 1988,
between the Utah Associated
Municipal Power Systems and the
Company.
*10(s) 33-65720 10(j) Agreement Respecting Transmission
Facilities and Services, dated
March 21, 1988 among PC/UP&L
Merging Corp. and the Company
including a Settlement Agreement
between PacifiCorp and the
Company.
*10(s)(i) 33-65720 10(j)(i) Restated Transmission Services
Agreement, dated February 6, 1992,
between Idaho Power Company and
PacifiCorp.
*10(t) 33-65720 10(k) Agreement for Supply of Power and
Energy, dated February 23, 1989,
between Sierra Pacific Power
Company and the Company.
*10(u) 33-65720 10(l) Transmission Services Agreement,
dated May 18, 1989, between the
Company and the Bonneville Power
Administration.
*10(v) 33-65720 10(m) Agreement Regarding the Ownership,
Construction, Operation and
Maintenance of the Milner
Hydroelectric Project (FERC No.
2899), dated January 22, 1990,
between the Company and the Twin
Falls Canal Company and the
Northside Canal Company Limited.
*10(v)(i) 33-65720 10(m)(i) Guaranty Agreement, dated February
10, 1992, between the Company and
New York Life Insurance Company,
as Note Purchaser, relating to
$11,700,000 Guaranteed Notes due
2017 of Milner Dam Inc.
*10(w) 33-65720 10(n) Agreement for the Purchase and
Sale of Power and Energy, dated
October 16, 1990, between the
Company and The Montana Power
Company.
*10(x) 1-3198 10(x) Agreement for design of substation
Form 10-Q dated October 4, 1995, between the
for 9/30/95 Company and Micron Technology,
Inc.
*12 1-3198 12 Statement Re: Computation of
Form 10-K Ratio of Earnings to Fixed
For 1995 Charges.
*12(a) 1-3198 12(a) Statement Re: Computation of
Form 10-K Supplemental Ratio of Earnings to
For 1995 Fixed Charges.
*12(b) 1-3198 12(b) Statement Re: Computation of
Form 10-K Ratio of Earnings to Combined
For 1995 Fixed Charges and Preferred
Dividend Requirements.
*12(c) 1-3198 12(c) Statement Re: Computation of
Form 10-K Supplemental Ratio of Earnings to
For 1995 Combined Fixed Charges and
Preferred Dividend Requirements.
*21 1-3198 21 Subsidiaries of Registrant
Form 10-K
for 1994
23(a) Independent Auditors' Consent.
*27 1-3198 27 Financial Data Schedule
Form 10-K
For 1995
IDAHO POWER COMPANY
SCHEDULE II - CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS
Years Ended December 31, 1995, 1994 and 1993
Column A Column B Column C Column D Column E
Additions
Charged Balance
Balance At Charged (Credited) At
Beginning to to Other Deductions End Of
Classification Of Period Income Accounts (1) Period
(Thousands of Dollars)
1995:
Reserves Deducted From
Applicable Assets:
Reserve for
uncollectible
accounts $1,377 $ 217 $2,927(2) $3,124 $1,397
Other Reserves:
Injuries and damages
reserve $1,500 $1,364 $ - $1,364 $1,500
Miscellaneous
operating reserves $ 940 $ 460 $ (176) $ 81 $1,143
1994:
Reserves Deducted From
Applicable Assets:
Reserve for
uncollectible
accounts $1,377 $1,360 $1,018(2) $2,378 $1,377
Other Reserves:
Injuries and damages
reserve $1,500 $1,804 $ - $1,804 $1,500
Miscellaneous
operating reserves $ 748 $ 429 $ (156) $ 81 $ 940
1993:
Reserves Deducted From
Applicable Assets:
Reserve for
uncollectible
accounts $1,421 $1,174 $1,001(2) $2,219 $1,377
Other Reserves:
Injuries and damages
reserve $1,500 $2,820 $ - $2,820 $1,500
Miscellaneous
operating reserves $ - $ 870 $ 332 $ 454 $ 748
NOTES: (1) Represents deductions from the reserves for purposes for
which the reserves were created.
(2) Represents collections of accounts previously written off.
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this amendment to
be signed on its behalf by the undersigned, thereunto duly authorized.
IDAHO POWER COMPANY
(Registrant)
March 25, 1996 By: /s/J. LaMont Keen
J. LaMont Keen
Vice President, Chief Financial
Officer and Treasurer
EXHIBIT INDEX
Exhibit Page
Number Number
23(a) Independent Auditors' Consent. 32