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) May 31, 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.
2002 Earnings Guidance
IDACORP, Inc. lowered its 2002 earnings guidance to a range
between $1.35 and $1.70 per share based on stagnant wholesale
energy markets and the continued pressure of drought conditions.
Consistent with earlier guidance, this includes the potential
dilutive effective of issuing equity securities during 2002.
The results of IDACORP's marketing subsidiary, IDACORP Energy,
continue to be negatively impacted by lower volatility and
reduced pricing spreads in the Western wholesale energy market
effectively reducing IDACORP Energy's ability to capitalize on
its regional transmission platform. Faced with increasing
regulatory uncertainty and continued deterioration of credit-
worthy counterparties, IDACORP Energy is putting on hold plans to
expand outside the current western footprint and is limiting its
origination activities to transactions with shorter terms.
IDACORP expects IDACORP Energy to contribute between zero and 25-
cent loss per share for 2002.
In addition to the decline in earnings from IDACORP Energy,
IDACORP's regulated utility, Idaho Power Company, has been
impacted by diminishing precipitation levels in its service area
since early spring. This has decreased the hydro production
forecasted for the balance of the year. Below-forecast spring
precipitation levels combined with anticipated decreases in loads
due to higher prices have negatively impacted the utility's
expected earnings contributions. According to the Northwest
River Forecast Center, inflows into Idaho Power's primary storage
facility, Brownlee Reservoir, are now expected to be 50 percent
of normal over the April-through-July period as compared to last
year's 38 percent of average inflow. Idaho Power has taken
proactive measures to ensure adequate supplies of energy in light
of the decreased generation expectations and load requirements.
After considering these changes, IDACORP is anticipating the
utility will contribute approximately $1.70 to $1.80 per share as
compared to last year's contribution of only $0.60 cents per
share. Included in the utility estimates are expected benefits
from a tax accounting method change, which coupled with recent
changes in the tax laws governing carrybacks, will allow the
Company to recognize certain tax and cash flow benefits. Idaho
Power Company is currently analyzing the impacts of the tax law
changes and estimates that it will recognize between $0.30 and
$0.35 per share in 2002 as a result of these changes. The
Company expects to record this benefit in the 4th quarter of
2002.
IDACORP is taking several measures in order to improve its
financial position. Included is an emphasis on reducing capital
spending for all non-critical projects and a focused effort on
containing costs at all of its operations. IDACORP is committed
to maintaining its credit quality and is continuing to evaluate
its options as to the issuance of equity or equity-like
securities.
Litigation
IDACORP subsidiary IDACORP Energy (IE) has received notice from
Truckee-Donner Public Utility District ("Truckee") asserting they
have the right to renegotiate certain terms of and are paying
under protest under the Agreement for the Sale and Purchase of
Firm Capacity and Energy (Agreement) in place between the two
entities. IE believes there are no grounds for dispute or
renegotiation under Agreement but did agree to discuss certain
issues with Truckee in an effort to resolve the matter.
Generally, the terms of the contract provide for IE to sell to
Truckee 10 MW light load energy and 20 MW heavy load energy for
the term January 1, 2002 through December 31, 2002 at $72 per MWh
and 25 MW flat energy for the term January 1, 2003 through
December 31, 2009 at $72 per MWh. Recent negotiations have
failed to resolve these differences and while IE has agreed to
attempt to mediate these differences, IE filed a declaratory
judgment action against Truckee on May 30, 2002 in the District
Court of the Fourth Judicial District of the State of Idaho, in
and for the County of Ada. In the action, IE seeks a declaratory
judgment that IE is not in breach and has fully performed its
obligations under the Agreement and seeks equitable relief which
would require Truckee to raise their rates to meet their
obligations under the Agreement.
FERC Filings
IDACORP subsidiaries, IDACORP Energy, L.P. and Idaho Power
Company, filed responses on May 31 and June 5, 2002 in FERC?s
Fact-Finding Investigation of Potential Manipulation of Electric
and Natural Gas Prices, Docket No. PA02-2-000. In the May 31
response where the data request was directed to sellers of
wholesale electricity or ancillary services to the California ISO
or the California PX during the years 2000-2001, the Companies
denied engaging in activity referred to as "wash," "round trip"
or "sell/buyback" trading involving the sale of an electricity
product to another company together with a simultaneous purchase
of the same product at the same price.
In the June 5 response, where the data request was directed to
all sellers of natural gas in the Western Systems Coordinating
Council and/or Texas during the years 2000-2001, the Companies
denied engaging in activity referred to as "wash", "round trip"
or "sell/buyback" trading involving the sale of natural gas
together with a simultaneous purchase of the same product at the
same price.
Certain statements contained in this Form 8-K, including
statements with respect to future earnings, are "forward-looking
statements" within the meaning of the federal securities laws.
Although IDACORP and Idaho Power believe 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's and Idaho Power's Forms 10-K for the year 2001, their
quarterly reports on Form 10-Q for the quarter ended March 31,
2002 and other reports on file with the Securities and Exchange
Commission.
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: June 5, 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