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 March 31, 2001
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Exact name of registrants as
specified in their charters, I.R.S.
Commission state of incorporation, address Employer
File of principal executive offices, Identification
Number and telephone number 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 March 31, 2001:
IDACORP, Inc.: 37,412,351
Idaho Power Company: 37,612,351 shares, all of which are held by
IDACORP, Inc.
This combined Form 10-Q represents separate filings by
IDACORP, Inc. and Idaho Power Company. Information
contained herein relating to an individual registrant is
filed by that registrant on its own behalf. Idaho Power
Company makes no representations as to the information
relating to IDACORP, Inc.'s other operations.
INDEX
Page
Definitions 2
Part I. Financial Information:
Item 1. Financial Statements
IDACORP, Inc.:
Consolidated Statements of Income 3
Consolidated Balance Sheets 4-5
Consolidated Statements of Capitalization 6
Consolidated Statements of Cash Flows 7
Consolidated Statements of Comprehensive
Income 8
Notes to Consolidated Financial Statements 9-14
Independent Accountants' Report 15
Idaho Power Company:
Consolidated Statements of Income 16
Consolidated Balance Sheets 17-18
Consolidated Statements of Capitalization 19
Consolidated Statements of Cash Flows 20
Consolidated Statements of Comprehensive
Income 21
Notes to Consolidated Financial Statements 22-23
Independent Accountants' Report 24
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations 25-34
Item 3. Quantitative and Qualitative Disclosures
about Market Risk 34
Part II. Other Information:
Item 2. Changes in Securities and Use of Proceeds 35
Item 6. Exhibits and Reports on Form 8-K 35-39
Signatures 40-41
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 Utility 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 the 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.
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
IDACORP, Inc.
Consolidated Statements of Income
Three Months Ended March 31,
2001 2000
(Thousands of Dollars
Except for Per Share Amounts)
OPERATING REVENUES:
Electric Utility:
General business $133,121 $123,213
Off system sales 55,249 35,925
Other revenues 11,946 7,195
Total electric utility
revenues 200,316 166,333
Diversified Operations:
Energy marketing 82,632 11,253
Other 2,772 4,544
Total diversified
operations revenues 85,404 15,797
Earnings of unconsolidated
partnerships, joint
ventures and subsidiaries 2,525 4,143
Total operating revenues 288,245 186,273
OPERATING EXPENSES:
Electric Utility:
Purchased power 125,287 12,890
Fuel expense 25,247 24,659
Power cost adjustment (58,246) 3,258
Other operations and
maintenance 49,147 44,246
Depreciation 20,952 19,887
Taxes other than income
taxes 5,235 5,427
Total electric utility
expenses 167,622 110,367
Diversified Operations:
Energy marketing 44,127 2,754
Other 8,659 7,350
Total diversified
operations expenses 52,786 10,104
Total operating expenses 220,408 120,471
OPERATING INCOME 67,837 65,802
OTHER INCOME:
Allowance for equity funds
used during construction 225 456
Gain on sale of asset - 14,000
Other - net 2,109 2,117
Total other income 2,334 16,573
INTEREST EXPENSE AND OTHER:
Interest on long-term debt 13,449 13,162
Other interest 4,373 2,697
Allowance for borrowed funds
used during construction (1,164) (487)
Preferred dividends of Idaho
Power Company 1,461 1,428
Total interest expense and
other 18,119 16,800
INCOME BEFORE INCOME TAXES 52,052 65,575
INCOME TAXES 17,282 23,496
NET INCOME $ 34,770 $ 42,079
AVERAGE COMMON SHARES
OUTSTANDING (000's) 37,415 37,612
EARNINGS PER SHARE OF COMMON
STOCK (basic and diluted) $ 0.93 $ 1.12
The accompanying notes are an integral part of these
statements.
IDACORP, Inc.
Consolidated Balance Sheets
Assets
March 31, December 31,
2001 2000
(Thousands of Dollars)
CURRENT ASSETS:
Cash and cash equivalents $ 30,263 $ 106,795
Receivables:
Customer 263,839 243,647
Allowance for uncollectible
accounts (43,253) (23,079)
Employee notes 4,515 4,742
Other 15,848 15,611
Energy marketing assets 706,714 1,060,128
Derivative assets 128,304 -
Taxes receivable 16,035 -
Accrued unbilled revenues 29,857 44,825
Materials and supplies (at
average cost) 30,513 29,731
Fuel stock (at average cost) 8,150 5,105
Prepayments 27,127 24,575
Regulatory assets associated with
income taxes 12,823 8,672
Regulatory assets - derivatives 40,455 -
Total current assets 1,271,190 1,520,752
INVESTMENTS AND OTHER ASSETS 154,437 157,068
PROPERTY, PLANT AND EQUIPMENT
Utility plant in service 2,842,782 2,799,874
Accumulated provision for
depreciation (1,163,037) (1,142,572)
Utility plant in service - net 1,679,745 1,657,302
Construction work in progress 145,401 136,388
Utility plant held for future use 2,166 2,167
Other property, net of
accumulated depreciation 11,918 9,179
Property, plant and equipment -
net 1,839,230 1,805,036
DEFERRED DEBITS:
American Falls and Milner water
rights 31,585 31,585
Company-owned life insurance 39,625 39,554
Energy marketing assets - long-
term 127,657 43,556
Regulatory assets associated with
income taxes 202,462 204,880
Regulatory assets - PCA 179,847 119,905
Regulatory assets - long-term
derivatives 42,503 -
Regulatory assets - other 44,055 45,750
Other 68,808 71,620
Total deferred debits 736,542 556,850
TOTAL $4,001,399 $4,039,706
The accompanying notes are an integral part of these
statements.
IDACORP, Inc.
Consolidated Balance Sheets
Liabilities and Capitalization
March 31, December 31,
2001 2000
(Thousands of Dollars)
CURRENT LIABILITIES:
Current maturities of long-term
debt $ 38,773 $ 39,774
Notes payable 216,800 120,600
Accounts payable 224,676 272,376
Energy marketing liabilities 613,950 1,060,180
Derivative liabilities 168,759 -
Taxes accrued - 15,631
Interest accrued 19,881 16,985
Deferred income taxes 12,823 8,672
Other 24,495 28,104
Total current liabilities 1,320,157 1,562,322
DEFERRED CREDITS:
Deferred income taxes 518,605 460,464
Energy marketing liabilities -
long-term 102,425 46,769
Derivative liabilities - long-
term 42,503 -
Regulatory liabilities associated
with deferred investment tax
credits 66,409 66,050
Regulatory liabilities associated
with income taxes 40,539 40,230
Regulatory liabilities - other 4,668 4,621
Other 67,548 69,259
Total deferred credits 842,697 687,393
LONG-TERM DEBT 905,024 864,114
COMMITMENTS AND CONTINGENT
LIABILITIES
PREFERRED STOCK OF IDAHO POWER 104,766 105,066
COMPANY
COMMON STOCK EQUITY:
Common stock, no par value
(shares authorized 120,000,000;
37,612,351 shares issued) 452,122 453,102
Retained earnings 387,445 370,126
Accumulated other comprehensive
income (loss) (2,768) (921)
Treasury stock (200,000 and
44,425 shares at cost,
respectively) (8,044) (1,496)
Total common stock equity 828,755 820,811
TOTAL $4,001,399 $4,039,706
The accompanying notes are an integral part of these statements.
IDACORP, Inc.
Consolidated Statements of Capitalization
March 31, December 31,
2001 % 2000 %
(Thousands of Dollars)
COMMON STOCK EQUITY:
Common stock $ 452,122 $ 453,102
Retained earnings 387,445 370,126
Accumulated other comprehensive
income (loss) (2,768) (921)
Treasury stock (8,044) (1,496)
Total common stock equity 828,755 45 820,811 46
PREFERRED STOCK OF IDAHO POWER
COMPANY:
4% preferred stock 14,766 15,066
7.68% Series, serial preferred
stock 15,000 15,000
7.07% Series, serial preferred
stock 25,000 25,000
Auction rate preferred stock 50,000 50,000
Total preferred stock 104,766 6 105,066 6
LONG-TERM DEBT:
First mortgage bonds:
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
7.38% Series due 2007 80,000 80,000
7.20% Series due 2009 80,000 80,000
6.60% Series due 2011 120,000 -
Maturing 2021 through 2031
with rates ranging
from 7.5% to 9.52% 155,000 230,000
Total first mortgage bonds 682,000 637,000
Amount due within one year (30,000) (30,000)
Net first mortgage bonds 652,000 607,000
Pollution control revenue
bonds:
8.30% Series 1984 due 2014 49,800 49,800
6.05% Series 1996A due 2026 68,100 68,100
Variable Rate Series 1996B
due 2026 24,200 24,200
Variable Rate Series 1996C
due 2026 24,000 24,000
Variable Rate Series 2000 due
2027 4,360 4,360
Total pollution control
revenue bonds 170,460 170,460
REA notes 1,320 1,339
Amount due within one year (76) (77)
Net REA notes 1,244 1,262
American Falls bond guarantee 19,885 19,885
Milner Dam note guarantee 11,700 11,700
Unamortized premium/discount -
net (1,090) (1,330)
Debt related to investments in
affordable housing with
rates ranging from 6.03% to
8.59% due 2001 to 2011 58,724 64,063
Amount due within one year (8,697) (9,697)
Net affordable housing debt 50,027 54,366
Other subsidiary debt 798 771
Total long-term debt 905,024 49 864,114 48
TOTAL CAPITALIZATION $1,838,545 100 $1,789,991 100
The accompanying notes are an integral part of these statements.
IDACORP, Inc.
Consolidated Statements of Cash Flows
Three Months Ended
March 31,
2001 2000
(Thousands of Dollars)
OPERATING ACTIVITIES:
Net income $ 34,770 $ 42,079
Adjustments to reconcile net
income to net cash provided
by (used in) operating
activities:
Allowance for uncollectible
accounts 20,174 -
Unrealized gains from
energy marketing activities (121,261) (3,971)
Gain on sale of asset - (14,000)
Depreciation and amortization 25,960 24,144
Deferred taxes and investment
tax credits 62,307 182
Accrued PCA costs (59,710) 3,112
Change in:
Accounts receivable and
prepayments (22,754) (7,937)
Accrued unbilled revenue 14,968 5,788
Materials and supplies and
fuel stock (3,827) (1,272)
Accounts payable (47,700) (18,523)
Taxes accrued (31,666) 24,471
Other current assets and
liabilities (713) (1,462)
Other - net 2,519 (5,681)
Net cash provided by (used in)
operating activities (126,933) 46,930
INVESTING ACTIVITIES:
Additions to property, plant
and equipment (52,230) (24,826)
Investments in affordable
housing projects - (6,817)
Proceeds from sale of asset - 17,500
Other - net (4,338) (368)
Net cash used in investing
activities (56,568) (14,511)
FINANCING ACTIVITIES:
Proceeds from issuance of:
First mortgage bonds 120,000 -
Treasury stock acquired (7,968) -
Long-term debt related to
affordable housing projects - 4,335
Retirement of:
Long-term debt related to
affordable housing projects (5,337) (2,736)
First mortgage bonds (75,000) (80,000)
Dividends on common stock (17,451) (17,456)
Increase (decrease) in short-
term borrowings 96,200 (7,828)
Other - net (3,475) (379)
Net cash provided by (used
in) financing activities 106,969 (104,064)
Net decrease in cash and cash
equivalents (76,532) (71,645)
Cash and cash equivalents at
beginning of period 106,795 111,338
Cash and cash equivalents at end
of period $ 30,263 $ 39,693
SUPPLEMENTAL DISCLOSURE OF CASH
FLOW INFORMATION:
Cash (received) paid during the
period for:
Income taxes $ (7,000) $ 2,424
Interest (net of amount
capitalized) $ 13,207 $ 16,075
The accompanying notes are an integral part of these statements
IDACORP, Inc.
Consolidated Statements of Comprehensive Income
Three Months Ended
March 31,
2001 2000
(Thousands of Dollars)
NET INCOME $34,770 $42,079
OTHER COMPREHENSIVE INCOME (LOSS):
Unrealized gains (losses) on securities
(net of tax of ($1,081) and $90) (1,847) 138
TOTAL COMPREHENSIVE INCOME $32,923 $42,217
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). IPC is regulated by the FERC and the state
regulatory commissions of Idaho, Oregon, Nevada and Wyoming,
and is engaged in the generation, transmission,
distribution, sale and purchase of electric energy. IPC is
the parent of Idaho Energy Resources Co., a joint venturer
in Bridger Coal Company, which supplies coal to IPC's Jim
Bridger generating plant.
IDACORP's other significant subsidiaries are:
IDACORP Energy Services - natural gas marketing
Ida-West Energy - independent power projects
development and management
IdaTech - developer of integrated fuel cell systems
IDACORP Financial Services - affordable housing and
other real estate investments
Rocky Mountain Communications (RMC) - commercial and residential
Internet service provider
IDACOMM - provider of telecommunications services
IDACORP Services - products and services for homes and businesses
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 March 31, 2001, and its consolidated results
of operations for the three months ended March 31, 2001 and
2000 and consolidated cash flows for the three months ended
March 31, 2001 and 2000. 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, 2000. The results of operations for the
interim periods are not necessarily indicative of the
results to be expected for the full year.
Planned Major Maintenance
The Company records repair and maintenance costs associated
with planned major maintenance activities as these costs are
incurred.
Regulatory Assets
IPC has $5.5 million of regulatory assets that are not earning
a return. These assets are predominately related to reorganization
costs and postretirement benefits, and have remaining amortization
periods of less than five years.
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.
Reclassifications
Certain items previously reported for periods prior to March
31, 2001 have been reclassified to conform with the current
period's presentation. Net income and common stock equity
were not affected by these reclassifications.
2. INCOME TAXES
The Company's effective tax rate for the first three months
decreased from 35.8 percent in 2000 to 33.2 percent in 2001.
Reconciliations between the statutory income tax rate and
the effective rates are as follows (in thousands of
dollars):
Three Months Ended March 31,
2001 2000
Amount Rate Amount Rate
Computed income taxes based
on statutory federal
income tax rate $ 18,218 35.0% $ 22,951 35.0%
Changes in taxes resulting
from:
Investment tax credits (776) (1.5) (771) (1.2)
Repair allowance (700) (1.3) (700) (1.1)
Pension expense (456) (0.9) (479) (0.7)
State income taxes 2,272 4.4 2,993 4.6
Depreciation 1,823 3.5 1,693 2.6
Affordable housing tax
credits (3,070) (5.9) (2,539) (3.9)
Preferred dividends of IPC 511 1.0 500 0.8
Other (540) (1.1) (152) (0.3)
Total provision for federal
and state income taxes $ 17,282 33.2% $ 23,496 35.8%
3. PREFERRED STOCK OF IDAHO POWER COMPANY:
The number of shares of IPC preferred stock outstanding were
as follows:
March 31, December 31,
2001 2000
Cumulative, $100 par value:
4% preferred stock (authorized 147,655 150,656
215,000 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:
At March 31, 2001, IPC had regulatory authority to incur up
to $500 million of short-term indebtedness. At March 31,
2001, IPC's short term borrowing totaled $128 million.
The Company has credit facilities established at both IPC and IDACORP.
IPC has a $120 million multi-year revolving credit facility under
which it pays a facility fee on the commitment, quarterly in arrears,
based on IPC's First Mortgage Bond rating. IPC also established
on April 27, 2001, a new 364-day credit facility for up to $165
million to help support its ongoing operations. Commercial paper
may be issued subject to the regulatory maximum, and is supported
by bank lines of credit of an equal amount.
IDACORP has separately established a $50 million three-year
credit facility that expires in December 2001, and a $375
million 364-day credit facility that expires in March 2002.
Under these facilities IDACORP pays a facility fee on the
commitment, quarterly in arrears, based on IPC's First
Mortgage Bond rating. Commercial paper may be issued up to
the amounts supported by the bank credit facilities. At
March 31, 2001, short-term borrowing on these facilities
totaled $89 million.
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
March 31, 2001, none had been issued.
On March 23, 2000, IPC filed a $200.0 million shelf
registration statement that could be used for First Mortgage
Bonds (including medium term notes), unsecured debt, or
preferred stock. On December 1, 2000, $80 million principal
amount of Secured Medium Term Notes, Series C, 7.38% Series
due 2007 were issued. Proceeds were used for the early
redemption in January 2001 of the $75 million First
Mortgage Bonds 9.50% Series due 2021. On March 2, 2001,
$120 million principal amount of Secured Medium Term
Notes, Series C, 6.60% Series due 2011 were issued, and
proceeds from this issuance were used to reduce short-
term borrowing incurred in support of ongoing long-term
construction requirements. At March 31, 2001, no amount
remained to be issued on this shelf.
5. COMMITMENTS AND CONTINGENT LIABILITIES:
Commitments under contracts and purchase orders relating to
IPC's program for construction and operation of facilities
amounted to approximately $12.9 million at March 31, 2001.
Additionally, Ida-West Energy has commitments totaling $33.1
million. The commitments are generally revocable by the
Company subject to reimbursement of manufacturers'
expenditures incurred and/or other termination charges.
From time to time the Company is party to various legal
claims, actions, and complaints, certain of which may
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.
IPC also has approximately $7 million in receivables from
less-tahn-investment grade entities at March 31, 2001.
California Energy Situation
With regard to the Company's non-utility energy trading in
the state of California, IPC in January 1999 entered into a
Participation Agreement with the California Power Exchange
(CalPX), a California non-profit public benefit corporation.
The CalPX operates a wholesale electricity market in
California by acting as a clearinghouse through which
electricity is bought and sold. Pursuant to the
Participation Agreement, IPC could sell power to the CalPX
under the terms and conditions of the CalPX Tariff.
On January 18, 2001, the CalPX sent the Company an invoice
for $2.2 million - a "default share invoice" - as a result
of an alleged Southern California Edison (SCE) payment
default of $214.5 million for power purchases. The Company
made this payment. On January 24, 2001, the Company
terminated the Participation Agreement with the CalPX. On
February 8, 2001, the CalPX sent a further default share
invoice for $5.2 million, due February 20, 2001, as a result
of alleged payment defaults by SCE, Pacific Gas and
Electric Company (PG&E), and others. However, because the CalPX
owed the Company $11.3 million for power sold to the CalPX
in November and December 2000, the Company did not pay the
February 8 invoice.
The CalPX allocated the defaults of, among others, SCE and
PG&E to the remaining participants based upon the level of
trading activity of each participant during the preceding
three-month period. The Company believes that the default
invoices were not proper and that it owes no further amounts
to the CalPX. The Company intends to pursue all available
remedies in its efforts to collect amounts owed to it by the
CalPX.
On February 20, 2001, the Company filed a petition with FERC to
intervene in a proceeding which requests the FERC to suspend
the use of the CalPX charge back methodology and provides
for further FERC oversight in the CalPX's implementation of
its default mitigation procedures.
A preliminary injunction has been granted by a Federal
Judge in the Federal District Court for the Central District
of California enjoining the CalPX from declaring any CalPX
participant in default under the terms of the CalPX Tariff.
On March 9, 2001, the CalPX filed for Chapter 11 protection
with the U.S. Bankruptcy Court, Central District of
California.
In April 2001, PG&E filed for bankruptcy. The CalPX and
California Independent System Operator (Cal ISO) were also
creditors of PG&E. To the extent that PG&E's bankruptcy filing
affects the collectibility of our receivables from the CalPX and
Cal ISO our receivables from these entities are at greater risk.
IPC has retained California counsel to represent the
Company's interests in the ongoing CalPX and PG&E
bankruptcies and discontinued energy trading with
California entities in December 2000.
At March 31, 2001, the CalPX and the Cal ISO owe $29 and $13
million respectively for energy sales made to them by IPC in
November and December 2000. IPC has accrued a reserve of
$44 million against these receivables balances and the $7
million of receivables from less-than-investment grade entities
noted above.
These reserves were calculated taking into account the continued
deterioration of the California energy markets and for the less-than-
investment grade receivables, by using a model that estimates the
probability of default and the estimated recovery amounts of such
receivables.
6. REGULATORY ISSUES:
Power Cost Adjustment (PCA)
IPC has a PCA mechanism that provides for annual adjustments
to the rates IPC charges to Idaho retail customers. These
adjustments, which take effect annually in May, are based on
forecasts of net power supply expenses. During the year,
the difference between actual and forecasted costs is
deferred with interest. This balance of this deferral,
called a true-up, is then included in the calculation of the
next year's PCA adjustment.
In the 2001 PCA, the IPUC authorized IPC to recover
approximately $168 million of costs through rate increases
effective May 1, 2001, representing 74 percent of IPC's $227
million request. The increase reflects an average 31.6 percent
increase to rates. The IPUC has deferred recovery of the remaining
$59 million pending a formal hearing of issues involving IPC's
operating and non-operating energy transactions. An expedited
review process commenced May 10, 2001 and resolution is expected by
August 23, 2001. The IPUC order does not address, and IPC is not
accruing, a return on the deferred $59 million, but IPC has
earned or paid a return on all previous PCA deferrals and
intends to request a return on the deferred portion of this
year's PCA. Although the Company is unable to predict the outcome
of the IPUC's decision in this matter, the Company expects to be
allowed recovery of the deferred $59 million.
Of the $227 million requested by IPC, $185 million related
to the true-up of power supply costs incurred in the 2000-
2001 PCA year and $42 million was for recovery of excess
power supply costs forecasted in the 2001-2002 PCA year.
The forecast amount, however, underestimates expected power
supply costs in light of current water and market conditions;
reservoir water is lower than and electricity market prices
are higher than the assumptions used in the forecast.
As part of the May 2001 PCA, the IPUC required IPC to
implement a three-tiered rate structure for Idaho residential
customers. The IPUC determined that the approved rates for
residential customers should increase as a customer's electricity
consumption increases. The residential rate increases are
14.4 percent for the first 800 kWh of usage, 28.8 percent for
the next 1,200 kWh, and 62 percent for usage over 2,000 kWh.
Oregon
IPC filed an application with the OPUC to begin recovering
extraordinary power supply costs in its Oregon jurisdiction.
On May 2, 2001, new rates went into effect that will recover
$0.8 million over the next year.
7. DERIVATIVE FINANCIAL INSTRUMENTS:
The Company uses financial instruments such as commodity
futures, forwards, options and swaps to manage exposure to
commodity price risk in the electricity and natural gas
markets. The objective of the Company's risk management
program is to mitigate the risk associated with the purchase
and sale of electricity and natural gas as well as to
optimize its energy marketing portfolio. The accounting for
derivative financial instruments that are used to manage
risk is in accordance with the concepts established in
Emerging Issues Task Force (EITF) 98-10, "Accounting for
Contracts Involved in Energy Trading Activities," and SFAS
No. 133, "Accounting for Derivative Instruments and Hedging
Activities" as amended by SFAS No. 138 "Accounting for
Certain Derivative Instruments and Certain Hedging
Activities."
Energy Trading Contracts
All contracts classified as energy trading contracts under
the guidance provided by EITF 98-10 that have an open short
or long position are marked to market and the resulting
change in fair value from the previous period is reflected
on the Consolidated Statement of Income in "Energy marketing
revenues" for IDACORP and "Other Income-Energy marketing
activities-net" for IPC. The same accounting treatment is
applied for all energy trading contracts, regardless of
whether they are anticipated to be physically scheduled for
delivery or net settled. In the settlement month, of these
contracts, the fair value is derecognized with the resulting
change in fair value from the prior period booked as a gain
or loss in income; the revenues or expenses resulting from
settlement are booked in the current period as a gain or loss
in current month income as well.
The fair value of positions recorded on the balance sheet is
dependent on the prices and volatility of the energy
markets. As such, these items on the balance sheet can
fluctuate greatly without large changes in volumes or
positions. Cash flows from energy trading contracts are
recognized in the statement of cash flows as an operating
activity.
Derivative Assets and Liabilities
The Company adopted SFAS 133, as amended, effective January
1, 2001. Contracts company-wide were evaluated based upon
the SFAS No. 133 derivative definitions and requirements.
Most of the Company's contracts that meet the derivative
definition are the energy trading contracts that are already
recorded at fair value under EITF 98-10 as discussed above.
Most of the remaining energy contracts meet the definition
of a normal purchase or sale as described in SFAS No. 138
and therefore are not considered derivatives. However, the
Company has certain electricity contracts that are
periodically net settled with the counterparty (booked out).
Booking out of electricity contracts is a normal business
transaction within the electrical utility industry, however
the FASB and the Derivative Implementation Group (DIG) have
interpreted that book outs do not qualify for the normal
purchase and sales exclusion. Accordingly the fair market
value of the booked out system electricity contracts has
been established and recorded within the financial
statements as Derivative Assets and Derivative Liabilities.
Such assets and liabilities at January 1 and March 31, 2001
are as follows:
January 1, 2001 March 31, 2001
(in thousands)
Assets $ 108,909 $128,304
Liabilities (207,407) (211,262)
Net $ (98,498) $(82,958)
The electricity contracts identified above are subject to
IPC regulatory processes. Accordingly, SFAS No. 71,
"Accounting for the Effects of Certain Types of Regulation"
allows the net amount of these Derivative Assets and
Liabilities to be offset by regulatory assets or
liabilities. The IPUC has granted approval of this use of
SFAS No. 71 regulatory assets or liabilities in its Order
28661 issued March 12, 2001. IPC is closely monitoring and
participating in the ongoing discussions with the FASB and
DIG in regards to the accounting for derivatives.
As a result of the items discussed above, the Company's
adoption of SFAS No. 133, as amended, did not have a material
effect on its financial position, results of operations, or
cash flows.
8. INDUSTRY SEGMENT INFORMATION:
The Company has identified two reportable operating
segments, Utility Operations and Energy Marketing.
The following table summarizes the segment information for
the Company's utility and energy marketing segments and the
total of all other segments, and reconciles this information
to total enterprise amounts.
Utility Energy Consolidated
Operations Marketing Other Eliminations Total
(Thousands of Dollars)
Three months ended
March 31, 2001
Revenues $ 203,106 $ 82,632 $ 2,507 $ - $ 288,245
Net income 13,681 23,184 (2,095) - 34,770
Total assets at March
31, 2001 $2,906,892 $ 907,155 $ 187,352 $ - $4,001,399
Three months ended
March 31, 2000
Revenues $ 170,523 $ 11,253 $ 4,497 $ - $ 186,273
Net income 27,534 5,540 9,005 - 42,079
Total assets at
December 31, 2000 $2,530,312 $1,312,045 $ 197,349 $ - $4,039,706
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 March 31, 2001, and the related
consolidated statements of income, comprehensive income, and
cash flows for the three-month periods ended March 31, 2001
and 2000. 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 auditing standards generally accepted in the
United States of America, 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
accounting principles generally accepted in the United
States of America.
We have previously audited, in accordance with auditing
standards generally accepted in the United States of
America, the consolidated balance sheet and statement of
capitalization of IDACORP, Inc. and subsidiaries as of
December 31, 2000, 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 February 1, 2001, 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, 2000 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
May 3, 2001
Idaho Power Company
Consolidated Statements of Income
Three Months Ended
March 31,
2001 2000
(Thousands of Dollars)
REVENUES:
General business $ 133,121 $ 123,213
Off system sales 55,249 35,925
Other revenues 11,946 7,195
Total revenues 200,316 166,333
EXPENSES:
Operation:
Purchased power 125,287 12,890
Fuel expense 25,247 24,659
Power cost adjustment (58,246) 3,258
Other 37,466 35,236
Maintenance 11,681 9,010
Depreciation 20,952 19,887
Taxes other than income taxes 5,235 5,427
Total expenses 167,622 110,367
INCOME FROM OPERATIONS 32,694 55,966
OTHER INCOME:
Allowance for equity funds used
during construction 225 456
Energy marketing activities -
Net 38,125 7,724
Other - Net 4,788 4,726
Total other income 43,138 12,906
INTEREST CHARGES:
Interest on long-term debt 13,423 13,132
Other interest 2,216 1,478
Allowance for borrowed funds
used during construction (1,164) (487)
Total interest charges 14,475 14,123
INCOME BEFORE INCOME TAXES 61,357 54,749
INCOME TAXES 23,132 21,024
NET INCOME 38,225 33,725
Dividends on preferred stock 1,461 1,428
EARNINGS ON COMMON STOCK $ 36,764 $ 32,297
The accompanying notes are an integral part of these
statements.
Idaho Power Company
Consolidated Balance Sheets
Assets
March 31, December 31,
2001 2000
(Thousands of Dollars)
ELECTRIC PLANT:
In service (at original cost) $2,842,782 $2,799,874
Accumulated provision for
depreciation (1,163,037) (1,142,572)
In service - Net 1,679,745 1,657,302
Construction work in progress 140,118 131,214
Held for future use 2,166 2,167
Electric plant - Net 1,822,029 1,790,683
INVESTMENTS AND OTHER PROPERTY 19,767 21,884
CURRENT ASSETS:
Cash and cash equivalents 9,774 83,494
Receivables:
Customer 245,818 215,358
Allowance for uncollectible
accounts (43,253) (23,079)
Notes 2,933 2,945
Employee notes 4,515 4,742
Related parties 391 311
Other 6,157 4,943
Energy marketing assets 614,732 951,193
Derivative assets 128,304 -
Taxes receivable 21,359 -
Accrued unbilled revenues 29,857 44,825
Materials and supplies (at
average cost) 26,063 24,685
Fuel stock (at average cost) 8,150 5,105
Prepayments 26,458 24,145
Regulatory assets associated
with income taxes 12,823 8,672
Regulatory assets - derivatives 40,455 -
Total current assets 1,134,536 1,347,339
DEFERRED DEBITS:
American Falls and Milner water
rights 31,585 31,585
Company-owned life insurance 39,625 39,554
Energy marketing assets - long-
term 127,657 43,556
Regulatory assets associated
with income taxes 202,462 204,880
Regulatory assets - PCA 179,847 119,905
Regulatory assets - long-term
derivatives 42,503 -
Regulatory assets - other 44,055 45,750
Other 52,869 50,410
Total deferred debits 720,603 535,640
TOTAL $3,696,935 $3,695,546
The accompanying notes are an integral part of these statements.
Idaho Power Company
Consolidated Balance Sheets
Capitalization and Liabilities
March 31, December 31,
2001 2000
(Thousands of Dollars)
CAPITALIZATION:
Common stock equity:
Common stock, $2.50 par
value (50,000,000 shares
authorized; 37,612,351
shares outstanding) $ 94,031 $ 94,031
Premium on capital stock 362,509 362,430
Capital stock expense (4,051) (4,024)
Retained earnings 333,100 313,800
Accumulated other
comprehensive income (loss) (2,768) (921)
Total common stock equity 782,821 765,316
Preferred stock 104,766 105,066
Long-term debt 854,199 808,977
Total capitalization 1,741,786 1,679,359
CURRENT LIABILITIES:
Long-term debt due within one
year 30,076 30,077
Notes payable 127,800 59,700
Accounts payable 201,618 250,673
Notes and accounts payable to
related parties 29,491 4,212
Energy marketing liabilities 526,951 944,643
Derivative liabilities 168,759 -
Taxes accrued - 12,983
Interest accrued 16,969 15,002
Deferred income taxes 12,823 8,672
Other 17,078 19,066
Total current liabilities 1,131,565 1,345,028
DEFERRED CREDITS:
Regulatory liabilities
associated with deferred
investment tax credits 66,409 66,050
Deferred income taxes 509,933 452,404
Energy marketing liabilities -
long-term 102,425 46,769
Derivative liabilities - long-
term 42,503 -
Regulatory liabilities
associated with income taxes 40,539 40,230
Regulatory liabilities - other 4,668 4,621
Other 57,107 61,085
Total deferred credits 823,584 671,159
COMMITMENTS AND CONTINGENT
LIABILITIES
TOTAL $3,696,935 $3,695,546
The accompanying notes are an integral part of these statements.
Idaho Power Company
Consolidated Statements of Capitalization
March 31, December 31,
2001 % 2000 %
(Thousands of Dollars)
COMMON STOCK EQUITY:
Common stock $ 94,031 $ 94,031
Premium on capital stock 362,509 362,430
Capital stock expense (4,051) (4,024)
Retained earnings 333,100 313,800
Accumulated other
comprehensive income (loss) (2,768) (921)
Total common stock equity 782,821 45 765,316 46
PREFERRED STOCK:
4% preferred stock 14,766 15,066
7.68% Series, serial
preferred stock 15,000 15,000
7.07% Series, serial
preferred stock 25,000 25,000
Auction rate preferred stock 50,000 50,000
Total preferred stock 104,766 6 105,066 6
LONG-TERM DEBT:
First mortgage bonds:
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
7.38% Series due 2007 80,000 80,000
7.20% Series due 2009 80,000 80,000
6.60% Series due 2011 120,000 -
Maturing 2021 through
2031 with rates ranging
from 7.5% to 9.52% 155,000 230,000
Total first mortgage bonds 682,000 637,000
Amount due within one year (30,000) (30,000)
Net first mortgage bonds 652,000 607,000
Pollution control revenue
bonds:
8.30% Series 1984 due 2014 49,800 49,800
6.05% Series 1996A due 2026 68,100 68,100
Variable Rate Series 1996B
due 2026 24,200 24,200
Variable Rate Series 1996C
due 2026 24,000 24,000
Variable Rate Series 2000
due 2007 4,360 4,360
Total pollution control
revenue bonds 170,460 170,460
REA notes 1,320 1,339
Amount due within one year (76) (77)
Net REA notes 1,244 1,262
American Falls bond guarantee 19,885 19,885
Milner Dam note guarantee 11,700 11,700
Unamortized premium/discount (1,090) (1,330)
- Net
Total long-term debt 854,199 49 808,977 48
TOTAL CAPITALIZATION $1,741,786 100 $1,679,359 100
The accompanying notes are an integral part of these statements.
Idaho Power Company
Consolidated Statements of Cash Flows
Three Months Ended
March 31,
2001 2000
(Thousands of Dollars)
OPERATING ACTIVITIES:
Net income $ 38,225 $ 33,725
Adjustments to reconcile net
income to net cash provided by
(used in) operating activities:
Allowance for uncollectible
accounts 20,174 -
Unrealized gains from energy
marketing activities (109,676) (4,223)
Depreciation and amortization 23,236 22,638
Deferred taxes and investment
tax credits 61,695 (34)
Accrued PCA costs (59,710) 3,112
Change in:
Accounts receivable and
prepayments (33,828) (10,435)
Accrued unbilled revenue 14,968 5,788
Materials and supplies and fuel
stock (4,423) (484)
Accounts payable (49,054) (14,226)
Taxes accrued (34,342) 22,041
Other current assets and
liabilities (21) (2,483)
Other - net (1,566) (7,230)
Net cash provided by (used in)
operating activities (134,322) 48,189
INVESTING ACTIVITIES:
Additions to utility plant (52,123) (24,826)
Net cash of affiliates
transferred to parent - (4,737)
Other - net 10 (39)
Net cash used in investing
activities (52,113) (29,602)
FINANCING ACTIVITIES:
Issuance of first mortgage bonds 120,000 -
Retirement of first mortgage
bonds (75,000) (80,000)
Dividends on common stock (17,464) (17,456)
Dividends on preferred stock (1,461) (1,428)
Increase (decrease) in short-term
borrowings 90,528 (8,017)
Other - net (3,888) (112)
Net cash provided by (used in)
financing activities 112,715 (107,013)
Net decrease in cash and cash
equivalents (73,720) (88,426)
Cash and cash equivalents at
beginning of period 83,494 95,038
Cash and cash equivalents at end of
period $ 9,774 $ 6,612
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Cash paid during the period for:
Income taxes $ - $ 2,424
Interest (net of amount
capitalized) 11,960 16,026
Net assets of affiliates
transferred to parent - 22,090
The accompanying notes are an integral part of these
statements.
Idaho Power Company
Consolidated Statements of Comprehensive Income
Three Months Ended
March 31,
2001 2000
(Thousands of
Dollars)
NET INCOME $ 38,225 $ 33,725
OTHER COMPREHENSIVE INCOME (LOSS):
Unrealized gains (losses) on
securities (net of tax ($1,081)
and $90) (1,847) 138
TOTAL COMPREHENSIVE INCOME $ 36,378 $ 33,863
The accompanying notes are an integral part of these
statements
Idaho Power Company
Notes to the Consolidated Financial Statements
On January 1, 2000 IPC's ownership interests in two
subsidiaries were transferred to IDACORP at book value,
total assets of $108 million and net assets of $22 million.
Except as modified below, the Notes to the Consolidated
Financial Statements of IDACORP also contained in this Form
10-Q 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 - Derivative Financial Instruments
2. INCOME TAXES:
IPC's effective tax rate for the first three months
decreased from 38.4 percent in 2000 to 37.8 percent in 2001.
Reconciliations between the statutory income tax rate and
the effective rates are as follows (in thousands of
dollars):
Three Months Ended March 31,
2001 2000
Amount Rate Amount Rate
Computed income taxes based
on statutory federal income
tax rate $ 21,475 35.0% $ 19,162 35.0%
Changes in taxes resulting
from:
Investment tax credits (776) (1.3) (771) (1.4)
Repair allowance (700) (1.1) (700) (1.3)
Pension expense (456) (0.7) (479) (0.9)
State income taxes 2,607 4.3 2,508 4.6
Depreciation 1,823 3.0 1,693 3.1
Other (841) (1.4) (389) (0.7)
Total provision for federal
and state income taxes $ 23,132 37.8% $ 21,024 38.4%
8. INDUSTRY SEGMENT INFORMATION:
The Company has identified two reportable operating
segments, Utility Operations and Energy Marketing. The
Utility Operations segment has two primary sources of
income, the regulated operations of IPC and income from
Bridger Coal Company, an unconsolidated joint venture also
subject to regulation. IPC's regulated operations include
the generation, transmission, distribution purchase and sale
of electricity. Energy marketing consists of the Company's
unregulated electricity marketing operations.
The following table summarizes IPC's segment information and
reconciles this information to total enterprise amounts:
Utility Energy Consolidated
Operations Marketing Other Eliminations Total
(Thousands of Dollars)
Three months ended
March 31, 2001
Revenues $ 200,316 $ - $ - $ - $ 200,316
Net income 15,141 23,098 (14) - 38,225
Total assets at
March 31, 2001 $2,906,892 $ 786,807 $ 3,236 $ - $3,696,935
Three months ended
March 31, 2000
Revenues $ 166,333 $ - $ - $ - $ 166,333
Net income 28,962 4,763 - - 33,725
Total assets at
December 31,2000 $2,530,312 $1,162,059 $ 3,175 $ - $3,695,546
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 March 31, 2001, and the related
consolidated statements of income, comprehensive income, and
cash flows for the three-month periods ended March 31, 2001
and 2000. 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 auditing standards generally accepted in the
United States of America, 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
accounting principles generally accepted in the United
States of America.
We have previously audited, in accordance with auditing
standards generally accepted in the United States of
America, the consolidated balance sheet and statement of
capitalization of Idaho Power Company and subsidiaries as of
December 31, 2000, 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 February 1, 2001, 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, 2000 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
May 3, 2001
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). IDACORP is
a holding company formed in 1998 as the parent of IPC and
several other entities.
IPC is an electric utility with a service territory covering
over 20,000 square miles in southern Idaho and eastern
Oregon. IPC also conducts electricity marketing and trading
operations, and is the parent of Idaho Energy Resources,
Co., a joint venturer in Bridger Coal Company, which
supplies coal to IPC's Jim Bridger generating plant.
IDACORP's other significant operating subsidiaries are:
IDACORP Energy Services - natural gas marketing
Ida-West Energy - independent power projects development
and management
IdaTech - developer of integrated fuel cell systems
IDACORP Financial Services - affordable housing and other
real estate investments
Rocky Mountain Communications (RMC) - commercial and residential
Internet service provider
IDACOMM - provider of telecommunications services
IDACORP Services - products and services for homes and businesses
Except where we indicate otherwise, this discussion explains
the material changes in results of operations and the
financial condition of both IDACORP and IPC. This MD&A
should be read in conjunction with the accompanying
consolidated financial statements of both IDACORP and IPC.
This discussion updates our MD&A included in our Annual
Report on Form 10-K for the year ended December 31, 2000.
This discussion should be read in conjunction with the
discussion in the annual report.
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);
the current energy situation in the western United
States;
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;
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. 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
In this section we discuss the factors that affected our
earnings, beginning with a general overview, then discussing
results for each of our operating segments.
Earnings per share 2001 2000
Electric utility $ 0.37 0.73
Marketing 0.62 0.15
Other (0.06) 0.24
Total $ 0.93 1.12
EPS from utility operations decreased due to increased power
supply costs resulting from a decline in hydroelectric
generating conditions and increased market prices for
purchased power. These increased costs are partially offset
by increased general business revenues resulting from rate
increases, customer growth and weather conditions, and the
deferral of expenses related to our power cost adjustment
mechanism.
Our net income from energy marketing activities increased
$18 million in the first quarter of 2001, reflecting the
expansion of marketing activities in terms of both volume
and geographic area.
EPS from IDACORP's other businesses decreased due to the
sale of our Hermiston project in 2000, which contributed
approximately $0.22 per share in 2000 and due to increased
losses at IdaTech and RMC.
Utility Operations
This section discusses IPC's utility operations, which are
subject to regulation by, among others, the state regulatory
commissions of Idaho, Oregon, Nevada and the FERC.
General Business Revenue
The following table presents IPC's general business revenue
for the quarters ended March 31, 2001 and 2000:
$ in thousands MWH (in thousands)
2001 2000 2001 2000
Residential $ 69,734 $ 60,862 1,349 1,238
Commercial (including
street lighting) 32,714 30,089 834 811
Industrial 30,533 31,708 1,064 1,269
Irrigation 148 554 2 12
Total $133,121 $123,213 3,248 3,331
Our general business revenue is dependent on many factors,
including the number of customers we serve, the rates we
charge, and economic and weather conditions. The change in
revenues in 2001 is due primarily to the following:
our annual power cost adjustment increased average
rates from customers subject to the PCA by 7.1 percent,
resulting in increased revenues of $7 million. We
discuss the PCA in more detail below in "Regulatory
Issues - PCA."
population growth in our service territory increased
our customer count by 2.6 percent, resulting in a $2
million increase in revenues.
colder weather increased sales to residential customers
by $4 million. Heating degree-days, a common measure
used in the utility industry to analyze demand, were
above 2000 levels by 14.5 percent.
the changes in contract provisions with certain large
industrial customers decreased revenues $3 million.
Off-system sales
Off-system sales consist primarily of long-term sales
contracts and opportunity sales of surplus system energy.
The increase in 2001 is due to substantial increases in
electricity prices in the IPC region, offset by the
decreased availability of excess energy due to poor
hydroelectric generating conditions.
$ (in thousands) MWHs (in thousands) Revenue per MWH
2001 2000 2001 2000 2001 2000
$55,249 $35,925 495 1,544 $111.64 $23.27
Power Supply
Power supply components of income from operations include
off-system sales (described above) and purchased power,
fuel, and PCA expenses (analyzed below).
The impact of the changes in net power supply costs was an
increase in power supply expense of $32 million in 2001.
The PCA adjustment is not designed to fully mitigate the
effect of fluctuations in net power supply costs, and is
applicable only to Idaho customers.
Purchased power
$ (in thousands) MWHs (in thousands) Cost per MWH
2001 2000 2001 2000 2001 2000
$125,287 $12,890 579 300 $216.39 $42.96
Purchased power expenses increased $112 million in 2001, due
primarily to an increase of over 400 percent in the average
cost per MWH purchased, and a 93 percent increase in MWHs
purchased. The price increases are the result of the
volatile western United States electricity markets.
Purchase power volumes have increased because poor
hydroelectric generating conditions have reduced hydro
generation by 1.3 million MWH.
Fuel expense
Fuel expenses were essentially unchanged from 2000, as
generation at our coal-fired plants was also essentially
unchanged.
Thermal MWHs generated
$ (in thousands) (in thousands)
2001 2000 2001 2000
$25,247 $24,659 1,951 1,960
PCA
The PCA decreased expenses $62 million. The PCA expense
component is related to our PCA regulatory mechanism, which
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 2001, actual power supply costs have been
significantly greater than forecasted, resulting in a large
PCA credit. We discuss the PCA in more detail below in
"Regulatory Issues - PCA."
Other expenses
Other operating and maintenance expenses increased $5
million due primarily to $2.7 million in maintenance at the
Company's thermal and distribution operations, and $2.0
million of customer expenses, primarily for our new customer
information system.
Energy Marketing
Energy marketing revenues increased $71 million in 2001 due
primarily to increased marketing activity and increased
prices in the energy markets. These increases reflect the
expansion of the marketing activities in both volume and
geographic reach. Power marketing volumes increased by 39
percent over the prior year, primarily attributable to
expansion into markets in Canada and the midwestern and
southwestern United States. Energy marketing is now doing
business in twenty states and two Canadian provinces.
Energy marketing expenses increased $42 million in 2001, due
primarily to $20 million in reserves recorded in 2001
related to trading activities conducted with California
entities in 2000. In addition, we recorded $11 million of
expenses related to our exposure to losses from non-California
trading counterparties, and a $10 million increase in general and
administrative costs.
We discuss the ongoing California energy situation, including
its effect on operations and liquidity, below in "California
Energy Situation."
Other Diversified Operations
Other diversified operations include the results of
operations of IDACORP's diversified subsidiaries, including
Ida-West Energy, IdaTech, IDACORP Financial Services,
RMC, and IDACORP Services.
Revenues
Revenues from other diversified operations decreased $2
million, due to a $4 million reduction resulting from the
sale of Applied Power Company (APC) in January 2001, offset
by $2 million in revenues at RMC, which we acquired in
August 2000.
Expenses
Other diversified operating expenses increased due to $3
million of expenses at RMC, which was acquired in
August 2000, and $2 million from increased production
activities at IdaTech, our fuel cell technology subsidiary.
These increases were offset by a $4 million decrease
resulting from the sale of APC in January 2001.
Other Income
IDACORP's other income decreased for the quarter because in
2000 we recorded a pre-tax gain of $14 million on the sale
of our interest in the Hermiston Power Project, a 536-MW,
gas-fired cogeneration project located near Hermiston,
Oregon.
Income Taxes
Income taxes decreased for the quarter, due primarily to the
decreases in net income before taxes. IDACORP's income
taxes were also affected by an increase in tax credits from
affordable housing projects.
LIQUIDITY AND CAPITAL RESOURCES:
Cash Flow
Our net cash used by operations totaled $127 million for the
quarter ended March 31, 2001. Significant factors affecting
cash flows include:
the growth in our PCA regulatory asset balance,
reflecting increased power supply expenditures that we
have not yet recovered through PCA rate adjustments.
Recovery of this regulatory asset commenced in May
2001 (see PCA discussion below);
payments to energy trading counterparties exceeded
receipts due to unpaid receivables from the CalPX and
Cal ISO and other California-based entities;
increased margin deposit requirements established for
our energy marketing business;
net power supply costs absorbed by the Company and not
recovered under the PCA mechanism.
We anticipate that our cash flows from operations will be
positively affected when we begin realizing increased
revenues from the May 2001 PCA adjustment (see "PCA" below).
However, we also expect that poor water conditions and high
wholesale energy prices in the Northwest will result in
power supply costs that continue to exceed the amounts we
are recovering in rates in the 2001-2002 PCA rate year.
These conditions could have an adverse effect on our
operating cash flows and require additional short-term
borrowing or other financing options.
Working Capital
The change in Customer Receivables and Accounts Payable is
attributed primarily to trading volumes and prices on settled
energy trading contracts. Accounts Payable also decreased due to
an incentive accrual of $19 million at December 31, 2000 that was
paid in the first quarter of 2001. The increase in the Allowance
for Uncollectible Accounts of $20 million is due to additional
reserves against settled energy trading contracts related to
trading activities in the California markets.
The net income in current Energy Marketing Assets over Energy
Marketing Liabilities, is attributed to changes in unrealized
gains recorded at March 31, 2001.
The remaining changes in working capital are attributed to
timing and normal business activity.
Cash Expenditures
We forecast that internal cash generation after dividends
will provide approximately 34 percent of total capital
requirements in 2001 and 109 percent during the four-year
period 2002-2005. We expect to finance our utility
construction programs and other capital requirements with
both internally generated funds and, to the extent
necessary, externally financed capital.
Financing Program
At March 31, 2001, IPC had regulatory authority to incur up
to $500 million of short-term indebtedness. At March 31,
2001, IPC's short term borrowing totaled $128 million.
We have credit facilities established at both IPC and
IDACORP. IPC has a $120 million multi-year revolving credit
facility under which we pay a facility fee on the
commitment, quarterly in arrears, based on IPC's First
Mortgage Bond rating. We also established on April 27,
2001, a new 364-day credit facility for up to $165 million
to help support IPC's ongoing operations. Commercial paper
may be issued subject to the regulatory maximum, and is
supported by bank lines of credit of an equal amount.
IDACORP has separately established a $50 million three-year
credit facility that expires in December 2001, and a $375
million 364-day credit facility that expires in March 2002.
Under these facilities we pay a facility fee on the
commitment, quarterly in arrears, based on IPC's First
Mortgage Bond rating. Commercial paper may be issued up to
the amounts supported by the bank credit facilities. At
March 31, 2001, short-term borrowing on these facilities
totaled $89 million.
IDACORP currently has a $300 million shelf registration
statement that can be used for the issuance of unsecured debt
securities (including medium-term notes) and preferred or
common stock. At March 31, 2001 none had been issued.
In March 2000 IPC filed a $200 million shelf-registration
statement that could be used for both first mortgage bonds
(including medium-term notes), unsecured debt or preferred
stock. In December 2000, $80 million of Secured Medium Term
Notes were issued by IPC. Proceeds from this issuance were
used in early January 2001 for the early redemption of $75
million of First Mortgage Bonds originally due in 2021. In
March 2001, $120 million of Secured Medium Term Notes were
issued by IPC. Proceeds were used to reduce short-term
borrowing incurred in support of ongoing long-term
construction requirements. At March 31, 2001, no amount
remained to be issued on this shelf.
OTHER MATTERS:
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 in May, are based on
forecasts of net power supply expenses. During the year,
the difference between actual and forecasted costs is
deferred with interest. This balance of this deferral,
called a true-up, is then included in the calculation of the
next year's PCA adjustment.
In the 2001 PCA, the IPUC authorized IPC to recover
approximately $168 million of costs through rate increases
effective May 1, 2001, representing 74 percent of IPC's $227
million request. The increase reflects an average 31.6 percent
increase to rates. The IPUC has deferred recovery of the
remaining $59 million pending a formal hearing of issues involving
IPC's operating and non-operating energy transactions. An expedited
review process commenced May 10, 2001 and resolution is expected by
August 23, 2001. The IPUC order does not address, and IPC is not
accruing, a return on the deferred $59 million, but IPC has
earned or paid a return on all previous PCA deferrals and
intends to request a return on the deferred portion of this
year's PCA. Although we are unable to predict the outcome of
the IPUC's decision in this matter, we expect to be allowed
recovery of the deferred $59 million.
Of the $227 million requested by IPC, $185 million related
to the true-up of power supply costs incurred in the 2000-
2001 PCA year and $42 million was for recovery of excess
power supply costs forecasted in the 2001-2002 PCA year.
The forecast amount, however, underestimates expected power
supply costs in light of current water and market conditions;
reservoir water is lower than and electricity market prices
are higher than the assumptions used in the forecast.
As part of the May 2001 PCA, the IPUC required IPC to
implement a three-tiered rate structure for Idaho residential
customers. The IPUC determined that the approved rates for
residential customers should increase as a customer's electricity
consumption increases. The residential rate increases are
14.4 percent for the first 800 kWh of usage, 28.8 percent for
the next 1,200 kWh, and 62 percent for usage over 2,000 kWh.
Oregon
IPC filed an application with the OPUC to begin recovering
extraordinary power supply costs in its Oregon jurisdiction.
On May 2, 2001, new rates went into effect that will recover
$0.8 million over the next year.
New Idaho Legislation
Idaho Senate Bill No. 1255, chapter 15, title 61, Idaho Code
(the "Act"), was signed into law on April 10, 2001. It
authorizes the IPUC to allow public utilities or their
assignees to issue energy cost recovery bonds to finance,
among other things, significant increases in the cost of
electricity resulting from shortfalls in available
hydroelectric power for which higher-cost replacement power
must be substituted. The legislative intent of the Act is
to provide utilities with a mechanism for recovery of these
increased costs while leveling the rate impact of such
increases on the utilities' customers. Energy cost recovery
bonds must have an expected maturity date no later than five
years after issuance and a legal maturity date no later than
seven years after issuance.
Under the Act, the IPUC may issue an energy cost financing
order in favor of the utility, pursuant to which a charge,
known as an energy cost bond charge, would be included on the bills
of the utility's Idaho customers. The Act requires the
energy cost bond charge to remain in effect until the energy
cost recovery bonds are paid in full. In addition, the
charge is subject to periodic adjustment to ensure the
timely payment of principal and interest on the energy cost
recovery bonds and the recovery of certain related expenses.
An energy cost financing order creates energy cost property,
which includes the right to receive revenues arising from
the energy cost bond charge. Energy cost property may be
sold or otherwise transferred to, among others, the assignee
of the public utility that issues energy cost recovery
bonds, and it may be pledged as security for such bonds.
The Act requires that, before it issues an energy cost
financing order, the IPUC must find that the public interest
would be better served if increased costs reflected in a
fuel or power cost adjustment and related expenses were
recovered through the issuance of energy cost recovery bonds
than if these amounts were recovered over a one-year period
assuming a conventional financing.
California Energy Situation
With regard to our non-utility energy trading in the state
of California, IPC in January 1999 entered into a
Participation Agreement with the California Power Exchange
(CalPX), a California non-profit public benefit corporation.
The CalPX operates a wholesale electricity market in
California by acting as a clearinghouse through which
electricity is bought and sold. Pursuant to the
Participation Agreement, IPC could sell power to the CalPX
under the terms and conditions of the CalPX Tariff.
On January 18, 2001, the CalPX sent us an invoice for $2.2
million - a "default share invoice" - as a result of an
alleged Southern California Edison (SCE) payment default of
$214.5 million for power purchases. We made this payment.
On January 24, 2001, we terminated our Participation
Agreement with the CalPX. On February 8, 2001, the CalPX
sent a further default share invoice for $5.2 million, due
February 20, 2001, as a result of alleged payment defaults
by SCE and Pacific Gas and Electric Company (PG&E), and
others. However, becasue the CalPX owed us $11.3 million for
power sold to the CalPX in November and December 2000, we did
not pay the February 8 invoice.
The CalPX allocated the defaults of, among others, SCE and
PG&E to the remaining participants based upon the level of
trading activity of each participant during the preceding
three-month period. IPC believes that the default invoices
were not proper and that it owes no further amounts to the
CalPX. IPC intends to pursue all available remedies in its
efforts to collect amounts owed to it by the CalPX.
On February 20, 2001, we filed a petition with FERC to intervene
in a proceeding which requests the FERC to suspend the use
of the CalPX charge back methodology and provides for
further FERC oversight in the CalPX's implementation of its
default mitigation procedures.
A preliminary injunction has been granted by a Federal
Judge in the Federal District Court for the Central District
of California enjoining the CalPX from declaring any CalPX
participant in default under the terms of the CalPX Tariff.
On March 9,2001, the CalPX filed for Chapter 11 protection
with the U.S. Bankruptcy Court, Central District of
California.
In April 2001, PG&E filed for bankruptcy. The CalPX and California
Independent System Operator (Cal ISO) were also creditors of PG&E.
To the extent that PG&E's bankruptcy filing affects the collectibility
of our receivables from the CalPX and Cal ISO our receivables from
these entities are at greater risk.
IPC has retained California counsel to represent the Company's
interests in the ongoing CalPX and PG&E bankruptcies and discountinued
energy trading with California entities in December 2000.
At March 31, 2001, the CalPX and Cal ISO owe $29 million and
$13 million respectively for energy sales made to them by IPC in
November and December 2000. IPC has accrued a reserve of $44
million against these receivable balances and $7 million of
receivables from other less-than-investment grade entities.
These reserves were calculated taking into account the continued
deterioration of the California energy markets and for the less-
than-investment grade receivables, by using a model that estimates
the probability of default and the estimated recovery amounts of
such receivables.
Based on the reserves that we have recorded as of March 31, 2001,
we believe that the future collectibility of these receivables
would not have a significant adverse impact on operations or liquidity.
Energy Marketing
When buying and selling energy, the high volatility of
energy prices can have a significant impact on
profitability. Also, counterparty creditworthiness is key
to ensuring that transactions entered into withstand
dramatic market fluctuations. To manage these risks while
implementing our business strategy, the Company has a Risk
Management Committee, comprised of Company officers, to
oversee the risk management program as defined in the risk
management policy. The program is intended to minimize
fluctuations in earnings while managing the volatility of
energy prices by mitigating commodity price risk, credit
risk, and other risks related to the energy trading
business.
The aggregate potential daily loss in earnings from our
energy trading activity as of March 31, 2001 is estimated to
be $4.4 million at a 95 percent confidence interval and for
a holding period of one business day (common industry
parameters). This potential loss in earnings was estimated
using an analytic value-at-risk methodology. This
methodology computes value-at-risk based upon market prices
for futures and option-implied volatilities as of March 31,
2001. The value-at-risk is understood to be a statistical
calculation of potential loss and not a forecast of expected
loss and as such, is not guaranteed to occur. The
confidence level and holding period imply that there is a
five percent chance that the daily loss could exceed $4.4
million.
The primary factors causing the increase in our value-at-
risk since December 31, 2000 are increases in electricity
and natural gas prices and volatility since the beginning of
the year. The daily value-at-risk estimate is managed
within acceptable limits and is reported daily to the Risk
Management Committee.
In August 2000 IPC submitted an application to the IPUC to
move our non-operating electricity marketing activity to
another IDACORP subsidiary, IDACORP Energy (IES). These non-
operating transactions do not involve sales from IPC's
resources and are not related to system reliability.
The IPUC approved this application but has since indicated a
desire to review some of the previously approved formulas
for pricing transactions between IES and IPC. We expect
that hearings will be scheduled for this summer 2001.
IPC and IES filed a joint application with the FERC to obtain
market-based pricing authority for IES. The FERC, with one
modification, accepted for filing IES's request. The proposed
rate schedules were made effective as of April 28, 2001.
The FERC required IES and IPC to modify the proposed
transfer pricing for real-time transactions between IPC and
IES. We will file our concurrence with the Commission
order, including compliance with the real-time pricing
adjustment, on May 14, 2001.
Power supply and demand management
Our utility operations are being affected by the electricity
market and generation conditions in the western United
States. The tremendous increase in prices for purchased
power, along with increasing demand and reduced
hydroelectric generation, have combined to produce
substantial increases in our costs to supply power.
We monitor the effect of streamflow conditions on Brownlee
Reservoir, the water source for our three Hells Canyon
hydroelectric facilities. 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. The current mountain snowpack above Brownlee
was at 32 percent of normal at May 10, 2001 and our most
recent forecast for inflows into Brownlee during the April-
July runoff period is 2.2 million acre-feet (MAF). This
compares to the 73-year median of 5.0 MAF and last year's
4.4 MAF. Hydro generation on IPC's system decreased 47
percent or 1.3 million MWH in the first quarter of 2001
compared to 2000 because of these poor generating
conditions. These conditions are expected to continue
through this water year.
These conditions have set in motion a number of programs to
decrease our reliance on expensive wholesale power. These
programs are designed to reduce overall energy use, decrease
peak demand levels, and increase generation within our
service territory. Significant programs include the
following:
IPC filed to site a 90-MW simple-cycle, natural gas-
fired combustion turbine near Mountain Home, Idaho,
targeting completion in August 2001. IPC is also in
the process of installing 25 temporary generators at
various locations in Boise. These generators, which
will be on-site until November 2001, will supply 40 MW
during the summer peak usage.
The IPUC approved a two-year agreement through which
IPC will compensate its largest industrial customer,
Astaris, for reducing its load by 50 MW. The load
reduction, effective in April 2001, should provide IPC
an additional 300,000 MWHs in 2001.
In March 2001, the IPUC and OPUC approved a program
that compensates large customers who voluntarily reduce
load by at least one MW when requested to do so by IPC.
The IPUC and OPUC have also approved a program that
compensates irrigation customers capable of reducing
usage by at least 100 MWh. The program is projected to
reduce usage by 500,000 MWh, more than 25 percent of
normal irrigation load.
As part of the May 2001 PCA discussed above, the IPUC
required IPC to implement a tiered rate structure for
Idaho residential customers. This rate structure
increases rates as a customer's usage increases.
IPC is also studying residential and commercial
conservation programs, e.g. fluorescent light bulbs, AC
heat pump servicing, and methods of funding such
programs.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK
The information required by this item is included in Item 2
"Management's Discussion and Analysis of Financial Condition
and Results of Operations" under "Other Matters - Energy
Marketing".
PART II - OTHER INFORMATION
Item 2. Changes in Securities and Use of Proceeds
On November 6, 2000, IDACORP issued $154,500 shares of common
stock to certain key shareholder of Rocky Mountain
Communications in connection with IDACORP'S acquisition of
Rocky Mountain Communications. The IDACORP stock was issued
in exchange for 3,047,453 shares of common stock of Rocky
Mountain Communications held by these shareholders. The
issuance of the shares was exempt from registration pursuant
to Section 4 (2) of the Securities Act of 1933, as amended,
and Rule 506 of Regulation D promulgated thereunder. The
transaction involved fewer than 35 purchasers, information
was provided to such purchasers as required by Regulation D,
and the applicable form was filed with the Commission.
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(a)(iii) 1-3198 3(a)(iii) Articles of Amendment to Restated
Form 10-Q Articles of Incorporation of IPC as
for 6/30/00 filed with the Secretary of State of
Idaho on June 15, 2000.
*3(b) 1-3198 3(c) By-laws of IPC amended on September
Form 10-Q 9, 1999, and presently in effect.
for 9/30/99
*3(c) 33-56071 3(d) Articles of Share Exchange, as filed
with the Secretary of State of Idaho
on September 29, 1998.
*3(d) 333-64737 3.1 Articles of Incorporation of IDACORP,
Inc.
*3(e) 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(f) 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(g) 1-14465 3(c) Amended Bylaws of IDACORP, Inc. as of
Form 10-Q 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:
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
1-3198 4 Thirty-fifth November 1, 2000
Form 8-K
Dated 11/21/0
*4(b) 33-65720 10(c) Instruments relating to IPC American
Falls bond guarantee. (see Exhibit
10(c)).
*4(c) 33-65720 4(f) Agreement of IPC 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) 1-14465 4 Rights Agreement, dated as of
Form 8-K September 10, 1998, between IDACORP,
dated Inc. and the Bank of New York as
September 15, Rights Agent.
1998
*10(a) 2-49584 5(b) Agreements, dated September 22, 1969,
between IPC and Pacific Power & Light
Company relating to the operation,
construction and ownership of the Jim
Bridger Project.
*10(a)(i) 2-51762 5(c) Amendment, dated February 1, 1974,
relating to operation agreement filed
as Exhibit 10(a).
*10(b) 2-49584 5(c) Agreement, dated as of October 11,
1973, between IPC and Pacific Power &
Light Company.
*10(c) 33-65720 10(c) Guaranty Agreement, dated March 1,
1990, between IPC and West One Bank,
as Trustee, relating to $21,425,000
American Falls Replacement Dam Bonds
of the American Falls Reservoir
District, Idaho.
*10(d) 2-62034 5(r) Guaranty Agreement, dated as of
August 30, 1974, between IPC and
Pacific Power & Light Company.
*10(e) 2-56513 5(i) Letter Agreement, dated January 23,
1976, between IPC and Portland
General Electric Company.
*10(e)(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
IPC.
*10(e)(ii) 2-62034 5(t) Amendment, dated September 30, 1977,
relating to agreement filed as
Exhibit 10(e).
*10(e)(iii) 2-62034 5(u) Amendment, dated October 31, 1977,
relating to agreement filed as
Exhibit 10(e).
*10(e)(iv) 2-62034 5(v) Amendment, dated January 23, 1978,
relating to agreement filed as
Exhibit 10(e).
*10(e)(v) 2-62034 5(w) Amendment, dated February 15, 1978,
relating to agreement filed as
Exhibit 10(e).
*10(e)(vi) 2-68574 5(x) Amendment, dated September 1, 1979,
relating to agreement filed as
Exhibit 10(e).
*10(f) 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(g) 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 IPC.
*10(h)(i)1 1-3198 10(n)(i) The Revised Security Plan for Senior
Form 10-K Management Employees - a non-
for 1994 qualified, deferred compensation plan
effective August 1, 1996..
*10(h)(ii)1 1-3198 10(n)(ii) The Executive Annual Incentive Plan
Form 10-K for senior management employees of
for 1994 IPC effective January 1, 1995.
*10(h)(iii)1 1-3198 10(n)(iii) The 1994 Restricted Stock Plan for
Form 10-K officers and key executives of
for 1994 IDACORP, Inc. and IPC effective July
1, 1994.
*10(h)(iv)1 1-14465 10(h)(iv) The Revised Security Plan for Board
1-3198 of Directors - a non-qualified,
Form 10-K deferred compensation plan effective
for 1998 August 1, 1996, revised March 2,
1999.
*10(h)(v)1 14465 10(e) IDACORP, Inc. Non-Employee Directors
Form 10-Q Stock Compensation Plan as of May 17,
for 6/30/99 1999.
*10(h)(vi) 1-3198 10(y) Executive Employment Agreement dated
Form 10-K November 20, 1996 between IPC and
for 1997 Richard R. Riazzi.
*10(h)(vii) 1-3198 10(g) Executive Employment Agreement dated
Form 10-Q April 12, 1999 between IPC and
for 6/30/99 Marlene Williams.
*10(h)(viii) 1-14465 10(h) Agreement between IDACORP, Inc. and
Form 10-Q Jan B. Packwood, J. LaMont Keen,
for 9/30/99 James C. Miller, Richard Riazzi,
Darrel T. Anderson, Bryan Kearney,
Cliff N. Olson, Robert W. Stahman and
Marlene K. Williams.
*10(h)(ix)1 1-14465 10(h)(ix) IDACORP, Inc. 2000 Long-Term
Form 10-K Incentive and Compensation Plan.
for 1999
*10(i) 33-65720 10(h) Framework Agreement, dated October 1,
1984, between the State of Idaho and
IPC relating to IPC's Swan Falls and
Snake River water rights.
*10(i)(i) 33-65720 10(h)(i) Agreement, dated October 25, 1984,
between the State of Idaho and IPC
relating to the agreement filed as
Exhibit 10(i).
*10(i)(ii) 33-65720 10(h)(ii) Contract to Implement, dated October
25, 1984, between the State of Idaho
and IPC relating to the agreement
filed as Exhibit 10(i).
*10(j) 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 IPC and the Twin Falls Canal
Company and the Northside Canal
Company Limited.
*10(j)(i) 33-65720 10(m)(i) Guaranty Agreement, dated February
10, 1992, between IPC and New York
Life Insurance Company, as Note
Purchaser, relating to $11,700,000
Guaranteed Notes due 2017 of Milner
Dam Inc.
12 Statement Re: Computation of Ratio
of Earnings to Fixed Charges.
(IDACORP, Inc.)
12(a) Statement Re: Computation of
Supplemental Ratio of Earnings to
Fixed Charges. (IDACORP, Inc.)
12(b) Statement Re: Computation of Ratio
of Earnings to Combined Fixed Charges
and Preferred Dividend Requirements.
(IDACORP, Inc.)
12(c) Statement Re: Computation of
Supplemental Ratio of Earnings to
Combined Fixed Charges and Preferred
Dividend Requirements. (IDACORP,
Inc.)
12(d) Statement Re: Computation of Ratio
of Earnings to Fixed Charges. (IPC)
12(e) Statement Re: Computation of
Supplemental Ratio of Earnings to
Fixed Charges. (IPC)
12(f) Statement Re: Computation of Ratio
of Earnings to Combined Fixed Charges
and Preferred Dividend Requirements.
(IPC)
12(g) Statement Re: Computation of
Supplemental Ratio of Earnings to
Combined Fixed Charges and Preferred
Dividend Requirements. (IPC)
15 Letter Re: Unaudited Interim
Financial information.
21 Subsidiaries of IDACORP, Inc. and
IPC.
1 Compensatory plan
(b) Reports on Form 8-K. The following reports on Form 8-K were filed for
the three months ended March 31, 2001.
Items Reported Date of Report Filed By
Item 5 - Other events and
FD disclosure and February 23, 2001 IPC and IDACORP, Inc.
Item 7 - Financial statements
and exhibits
Item 7 - Financial statements
and exhibits February 28, 2001 IDACORP, Inc.
* 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 May 15, 2001 By: /s/ J LaMont Keen
J LaMont Keen
Senior Vice President
Administration
and Chief Financial Officer
(Principal Financial Officer)
Date May 15, 2001 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 May 15, 2001 By: /s/ J LaMont Keen
J LaMont Keen
Senior Vice President
Administration
and Chief Financial Officer
(Principal Financial Officer)
Date May 15, 2001 By: /s/ Darrel T Anderson
Darrel T Anderson
Vice President-Finance
and Treasurer
(Principal Accounting Officer)