SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) April 25, 2002
Exact name of Registrants as
specified in
Commission their charters, address of IRS Employer
principal executive
File offices and Registrants' Identification
Number telephone number Number
1-14465 IDACORP, Inc. 82-0505802
1-3198 Idaho Power Company 82-0130980
1221 W. Idaho Street
Boise, ID 83702-5627
(208) 388-2200
State or Other Jurisdiction of Incorporation: Idaho
None
Former name, former address and former fiscal year, if changed
since last report.
IDACORP, Inc.
IDAHO POWER COMPANY
Form 8-K
Items 1 through 4 and 6 through 9 are inapplicable and have been
omitted herefrom.
Item 5. OTHER EVENTS.
The Company issued the following press release:
IDACORP Reports First Quarter 2002 Earnings
BOISE - IDACORP, Inc. (NYSE:IDA) today reported first
quarter 2002 earnings of 66 cents per share, a 27-cents-per-share
decline from last year's 93 cents per share.
Net income for the first quarter 2002 was $25 million, $10
million less than the same period a year earlier. The reduction
was due to weakened performance by non-regulated operations.
"IDACORP Energy's weaker financial performance came from
declining regional pricing spreads and fewer credit worthy
counterparties in the markets," said IDACORP President and CEO
Jan Packwood. "Idaho Power, our regulated business, contributed
more to earnings this year, but is still recovering from the
effects of last year's severe drought and high power supply
costs."
The Company reaffirms its April 12 earnings-per-share guidance
for 2002 to a range between $2.20 and $2.50.
Business Operations
IDACORP ENERGY
IDACORP Energy contributed 11 cents per share in the first
quarter, down 51 cents per share from last year's strong
performance. The company's quarterly volume of settled power
sales continues its upward trend, increasing 25 percent to 13
million megawatt-hours (MWh) in first quarter 2002, compared to
10.4 million MWh in the fourth quarter 2001.
The dramatic decline in regional pricing spreads and
volatility has driven this decrease in earnings, despite the
increase in settled sales volumes. The company expects to offset
the current soft market conditions with continued focus on
structured origination activity and growth in product offerings.
IDAHO POWER COMPANY
While still below normal levels, Idaho Power's earnings
improved to 57 cents per share for the quarter, a 20-cents-per-
share increase over the disappointing 37 cents per share earned
in last year's first quarter. The increase reflects better
hydroelectric generating conditions and lower wholesale market
prices that led to lower power supply costs.
For the quarter, general business revenues were up $53
million. The primary driver of the increase in revenues was the
May 1 and October 1, 2001, Power Cost Adjustment (PCA) rate
increases combined with continued customer growth. The PCA
increases were approved solely for power supply cost recovery and
did not enhance bottom line performance. The revenue increase
was dampened somewhat by load reduction programs and the impact
of customers' response to higher retail prices.
The National Weather Service River Forecast Center is
projecting that April-July inflow into Brownlee Reservoir, Idaho
Power's key water storage facility, is expected to be 3.6 million
acre-feet (maf). Average inflow into the reservoir is 6.3 maf.
Idaho Power added 1,273 general business customers during
the first quarter 2002 and as of March 31, Idaho Power had
403,012 general business customers.
Regulatory Update
On April 15, Idaho Power submitted its annual Power Cost
Adjustment filing with the Idaho Public Utilities Commission
(IPUC). This filing calls for the recovery of $249 million in
extraordinary power supply costs.
On April 18, the IPUC ordered the denial of $10 million
(amount through September 2001 now estimated to be $12 million
through March 31, 2002) of revenues forgone by Idaho Power as a
result of last year's irrigation load reduction program. IPC
believes this order is inconsistent with an earlier order that
allowed recovery of such revenues. IPC will be filing a Petition
for Reconsideration relating to this order with the IPUC. It is
a long-standing legal position in Idaho that an IPUC order is not
administratively final until the reconsideration process is
completed. If IPC is unsuccessful in its efforts before the
IPUC, it would write off the amount.
On April 22, IPUC Staff filed testimony related to IPC's
annual PCA filing and its March 11, 2002 Energy Cost Bond Charge
filing (Securitization).
Staff Testimony has proposed a number of adjustments to the
Company's filings. The four major items include:
1) Removal of reduced revenues (estimated to be $12 million)
associated with the Irrigation Load Reduction Program noted
above;
2) Removal of a portion of the expenses (estimated to be $2.9
million) associated with the mobile diesel generators;
3) Denial of IPC's request to issue energy cost recovery bonds
for a portion of the PCA balance; and
4) Recovery of PCA deferred costs over a two-year period with a
carrying charge on the amount deferred beyond one year.
A hearing on these issues is scheduled for Friday, April 26,
2002, and the IPUC is expected to issue an order related to these
and other issues on May 9, 2002. Idaho Power believes that in
items #1 and #2, that it had appropriate regulatory authorization
to defer and collect these amounts.
In the event that IPC is not allowed to issue energy cost
recovery bonds, it will evaluate alternative financing options at
that time.
OTHER SUBSIDIARIES
IDACORP Financial contributed 5 cents per share for the
first quarter 2002, 2 cents per share more than last year's first
quarter.
Ida-West Energy recorded a net loss of 2 cents per share for
the first quarter as compared to a 1-cent-per-share gain in last
year's first quarter. On April 15, Idaho Power exercised its
option to delay the in-service date of the Garnet Energy Facility
from June 1, 2004, to June 1, 2005. This decision was based on
the fact that permitting, resource needs, and regulatory approval
has extended beyond original projections.
IDACORP continues to invest in the future of power
technology and communications through its subsidiaries IdaTech
and IDACOMM. These entities and IDACORP's other business
activities recorded a loss of 5 cents per share on the quarter,
which is a 5-cents-per-share improvement when compared with the
first quarter last year.
Background Information
Boise, Idaho-based IDACORP, formed in 1998, is a holding
company comprised of: Idaho Power, a regulated electric utility;
Ida-West Energy, an independent power project management and
development arm; IDACORP Energy, a marketer of energy and energy
related products and services; IDACORP Financial, an investment
vehicle which makes investments primarily in affordable housing
projects; IdaTech, a developer and producer of fully integrated
fuel cell systems; and IDACOMM, a telecommunications subsidiary
providing high-speed Internet access technologies.
Certain statements contained in this news release, including
statements with respect to future earnings, are "forward-looking
statements" within the meaning of the federal securities laws.
Although IDACORP believes that the expectations and assumptions
reflected in these forward-looking statements are reasonable,
these statements involve a number of risks and uncertainties, and
actual results may differ materially from the results discussed
in the statements. Important factors that could cause actual
results to differ materially from the forward-looking statements
include: the current energy situation in the western United
States, market demand and prices for energy, capacity and fuel;
weather variations affecting customer energy usage; operating
performance of plants and other facilities; environmental
conditions and requirements; and system conditions and operating
costs. Any such forward-looking statements should be considered
in light of such factors and others noted in IDACORP and Idaho
Power Company's Form 10-K for the year 2001, and other reports on
file with the Securities and Exchange Commission.
IDACORP, Inc.
Consolidated Earnings Statements
For Periods Ended March 31, 2002 and 2001
Summary Financial Information
(Millions of Dollars, expect per share data)
Three Months Ended
3/31/02 3/31/01
OPERATING REVENUES:
Electric utility:
General business $ 186 $ 133
Off-system sales 20 55
Other revenues 9 12
Total electric utility
revenues 215 200
Energy marketing:
Energy marketing
commodities & services 434 929
Other 4 3
Total operating revenues 653 1,132
OPERATING EXPENSES:
Electric utility:
Purchased power 30 125
Fuel expense 28 25
Power cost adjustment 34 (58)
Other operation &
maintenance 50 49
Depreciation 23 21
Taxes other than income
taxes 5 5
Total electric utility
operations 170 167
Energy marketing:
Cost of energy commodities
and services 425 858
Selling, administrative
and general 3 33
Other 8 9
Total operating expenses 606 1,067
OPERATING INCOME:
Electric utility 45 33
Energy marketing 6 38
Other (4) (6)
Total operating income 47 65
OTHER INCOME 5 5
INTEREST EXPENSE AND OTHER:
Interest on long-term debt 13 13
Other interest expense 4 3
Preferred dividends - Idaho
Power Company 1 2
Total interest and other 18 18
INCOME BEFORE INCOME TAXES 34 52
INCOME TAXES 9 17
NET INCOME $ 25 $ 35
AVERAGE COMMON SHARES
OUTSTANDING (000'S) 37,560 37,359
EARNINGS PER SHARE (basic and
diluted) $0.66 $0.93
IDACORP, Inc.
Consolidated Statements of Cash Flows
For Periods Ended March 31, 2002 and 2001
Summary Financial Information
(Millions of Dollars)
Three Months Ended
3/31/02 3/31/01
OPERATING ACTIVITIES:
Net income $ 25 $ 35
Adjustments to reconcile net
income to net cash provided by
(used in) operating activities:
Allowance for uncollectible
accounts - 20
Unrealized (gains) losses from
energy marketing activities 20 (75)
Depreciation and amortization 27 26
Deferred taxes and investment
tax credits (14) 62
Accrued PCA costs 30 (60)
Change in:
Receivables and prepayments 22 (23)
Accounts payable (88) (48)
Taxes (receivable) accrued 66 (32)
Other 21 (32)
Net cash provided by (used
in) operating activities 109 (127)
INVESTING ACTIVITIES (72) (57)
FINANCING ACTIVITIES:
Proceeds from issuance of long-
term debt - 120
Retirement of long-term debt (52) (80)
Increase (decrease) in short-term
borrowings 23 96
Dividends on common stock (17) (17)
Other 1 (12)
Net cash provided by (used in)
financing activities (45) 107
Net increase (decrease) in cash
and cash equivalents (8) (77)
Cash and cash equivalents
beginning of period 67 107
Cash and cash equivalents at end
of period $ 59 $ 30
IDACORP, Inc.
Consolidated Balance Sheets
For Periods Ended March 31, 2002 and December 31, 2001
Summary Financial Information
(Millions of Dollars)
3/31/02 12/31/01
ASSETS:
Cash and cash equivalents $ 59 $ 67
Receivables net of allowance 157 181
Energy marketing assets 102 194
Other current assets 140 211
Total current assets 458 653
Investments 207 159
Property, plant and equipment -
net 1,889 1,886
Energy marketing assets - long-
term 138 204
Regulatory assets 509 544
Other assets 198 196
Total other assets 845 944
Total Assets $3,399 $3,642
Liabilities and Shareholders'
Equity
Current maturities of long-term
debt $ 36 $ 36
Notes payable 386 363
Accounts payable 160 248
Energy marketing liabilities 104 125
Derivative liabilities 29 41
Other current liabilities 72 94
Total current liabilities 787 907
Deferred income taxes 584 590
Energy marketing liabilities -
long-term 54 135
Derivative liabilities - long-
term 3 7
Regulatory liabilities 116 114
Other liabilities 78 71
Total other liabilities 835 917
Long-term debt 791 843
Preferred stock of Idaho Power
Company 104 104
Shareholders' equity 882 871
Total Liabilities &
Shareholders' Equity $3,399 $3,642
Idaho Power Company Supplemental Operating Statistics
Three Months Ended
3/31/02 3/31/01
Energy Use - MWh
Residential 1,356,062 1,349,845
Commercial 877,601 833,960
Industrial 773,667 1,063,728
Irrigation 2,728 1,898
Total General Business 3,010,058 3,249,431
Off-System Sales 821,956 494,872
Total 3,832,014 3,744,303
Revenue ($000's)
Residential $ 94,154 $ 69,735
Commercial 48,585 32,705
Industrial 43,120 30,533
Irrigation 261 148
Total General Business 186,120 133,121
Off-System Sales 20,159 55,249
Total $ 206,279 $ 188,370
Customers - Period End
Residential 336,702 329,470
Commercial 52,373 51,220
Industrial 113 117
Irrigation 13,824 15,127
Total 403,012 395,934
IDACORP Energy Unconsolidated Operating Statistics $(000)'s
Revenue (1) $ 436,549 $ 1,038,542
Cost of Goods Sold (1) 427,031 966,567
Gross Margin 9,518 71,975
SG&A 3,257 33,428
Operating Margin $ 6,261 $ 38,547
Value at Risk:
End of period 95% confidence
level $ 1,683 $ 4,363
End of period 99% confidence
level $ 2,384 $ 6,181
Avg. over Period (95% confidence) $ 1,391 $ 7,398
Settled Volume:
Electricity (mwh's) 12,997,815 6,308,614
Natural Gas (mmbtu's) 12,173,707 17,383,287
(1) These amounts differ from those reported on the Consolidated
Earnings Statements due to intersegment eliminations.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrants have duly caused this report to be signed
on their behalf by the undersigned hereunto duly authorized.
IDACORP, INC.
Dated: April 25, 2002 By: /s/Darrel T. Anderson
Darrel T. Anderson
Vice President, Chief
Financial Officer and
Treasurer
IDAHO POWER COMPANY
By: /s/Darrel T. Anderson
Darrel T. Anderson
Vice President, Chief
Financial Officer and
Treasurer