Filed Pursuant to Rule 424(b)(5)
File No. 333-122153
Pricing Supplement No. 1 Dated October 15, 2007
(To Prospectus dated January 27, 2005 and
Prospectus Supplement dated September 21, 2007)
relating to First Mortgage Bonds,
Secured Medium-Term Notes, Series G
$100,000,000
IDAHO POWER COMPANY
6.25% First Mortgage Bonds due 2037
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Title of Securities: 6.25% First Mortgage Bonds due 2037 (the "Notes")
Principal Amount: $100,000,000
Price to Public: 99.732% payable in immediately available funds
Purchasers' Discount: 0.75%
Proceeds to Us after Discount: 98.982%
Interest Rate: 6.25%
Original Issue Date: October 18, 2007
Original Interest Accrual Date: October 18, 2007
Interest Payment Dates: April 15 and October 15
Record Dates: March 31 and September 30
Maturity Date: October 15, 2037
Redemption: See "Optional Redemption" below
Form: Book-Entry
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Wachovia Securities
Banc of America Securities LLC
JPMorgan
KeyBanc Capital Markets
RBC Capital Markets
Wedbush Morgan Securities Inc.
Piper Jaffray
Optional Redemption:
We may, at our option, redeem the Notes, in whole at any time, or in part from
time to time, prior to the maturity date, at a redemption price equal to the
greater of:
o 100% of the principal amount of the Notes to be redeemed and
o as determined by an Independent Investment Banker, the sum of the
present values of the remaining scheduled payments of principal on the
Notes to be redeemed and interest thereon (not including any portion of
payments of interest accrued as of the date fixed for redemption),
discounted to the date fixed for redemption on a semi-annual basis
(assuming a 360-day year consisting of twelve 30-day months) at the
Treasury Rate (as defined below), plus 25 basis points.
plus in either case interest accrued and unpaid on the principal amount of the
Notes to be redeemed to the date fixed for redemption. We will mail notice of
any redemption at least 30 days before the date fixed for redemption to each
holder of the Notes to be redeemed.
"Treasury Rate" means, with respect to any date fixed for redemption, the rate
per annum equal to the semi-annual equivalent yield to maturity of the
Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue
(expressed as a percentage of its principal amount) equal to the Comparable
Treasury Price for such date.
"Comparable Treasury Issue" means the United States Treasury security selected
by an Independent Investment Banker as having a maturity comparable to the
remaining term of the Notes to be redeemed that would be used, at the time of
selection and in accordance with customary financial practice, in pricing new
issues of corporate debt securities of comparable maturity to the remaining term
of the Notes to be redeemed.
"Comparable Treasury Price" means, with respect to any date fixed for
redemption,
(1) the average of the bid and asked prices for the Comparable Treasury
Issue (expressed in each case as a percentage of its principal amount)
on the third business day preceding such date, as set forth in the
daily statistical release (or any successor release) published by the
Federal Reserve Bank of New York and designated "Composite 3:30 p.m.
Quotations for U.S. Government Securities" or
(2) if such release (or any successor release) is not published or does
not contain such prices on such business day, (a) the average of the
Reference Treasury Dealer Quotations for such date, after excluding the
highest and lowest such Reference Treasury Dealer Quotations for such
date, or (b) if the trustee obtains fewer than four such Reference
Treasury Dealer Quotations, the average of all the quotations received.
"Independent Investment Banker" means any one of the Reference Treasury Dealers
that we may appoint.
"Reference Treasury Dealer Quotations" means, with respect to each Reference
Treasury Dealer and any date fixed for redemption, the average, as determined by
the trustee, of the bid and asked
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prices for the Comparable Treasury Issue (expressed in each case as a percentage
of its principal amount) quoted in writing to the trustee by such Reference
Treasury Dealer at 5:00 p.m. New York City time on the third business day
preceding the date fixed for redemption.
"Reference Treasury Dealer" means (1) Banc of America Securities LLC, J.P.
Morgan Securities Inc. and their respective successors, unless any of them
ceases to be a primary U.S. Government securities dealer in New York City (a
"Primary Treasury Dealer"), in which case we will substitute another Primary
Treasury Dealer and (2) any other Primary Treasury Dealers that we may select.
Terms Agreement:
We have entered into a terms agreement with the purchasers of the Notes with
respect to the Notes. The purchasers are committed to take and pay for all of
the Notes if any are purchased. Subject to certain conditions, each purchaser
has severally agreed to purchase the principal amount of the Notes indicated in
the table below:
Name Principal Amount of Notes
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Wachovia Capital Markets, LLC $ 27,500,000
Banc of America Securities LLC 25,000,000
J.P. Morgan Securities Inc. 25,000,000
KeyBanc Capital Markets Inc. 7,500,000
RBC Capital Markets Corporation 5,000,000
Wedbush Morgan Securities Inc. 5,000,000
Piper Jaffray & Co. 5,000,000
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Total $ 100,000,000
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The Notes sold by the purchasers to the public will initially be offered at the
initial price to the public set forth on the cover of this pricing supplement.
Any Notes sold by the purchasers to securities dealers may be sold at a discount
from the initial price to the public of up to 0.45% of the principal amount of
the Notes. Any such securities dealers may resell any Notes purchased from the
purchasers to certain other brokers or dealers at a discount from the initial
price to the public of up to 0.25% of the principal amount of the Notes.
Interest Payment Dates:
We will make interest payments on the Notes on April 15 and October 15 of each
year, commencing April 15, 2008, and at maturity. The record date for the April
15 payment of
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interest will be March 31 and the record date for the October 15 payment of
interest will be September 30.
Use of Proceeds:
The purchasers will pay the net proceeds from the sale of the Notes to us in
immediately available funds. After our receipt of the net proceeds, the Notes
will be credited to the purchasers' Depository Trust Company accounts free of
payment. We will use the net proceeds from the sale of the Notes to repay the
$80,000,000 7.38% First Mortgage Bonds that mature on December 1, 2007 and to
repay a portion of our short-term debt. If we do not use the proceeds
immediately, we may temporarily invest them in short-term investments.
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