UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q/A
Amendment No. 110-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, 19971998
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 1-3198
IDAHO POWER COMPANY
(Exact name of registrant as specified in its charter)
Idaho 82-0130980
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
1221 W. Idaho Street, Boise, Idaho 83702-5627
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (208) 388-2200
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
Indicate the number of shares outstanding of each
of the issuer's classes of common stock, as of the
latest practicable date.
Number of shares of Common Stock, $2.50 par value,
outstanding as of April 30, 1997March 31, 1998 is 37,612,351.
IDAHO POWER COMPANY
Index
Page No
Definitions 2
Part I. Financial Information: Page No
Item 1.
Financial Statements
Consolidated Statements of Income - Three Months,
and Twelve Months Ended March 31, 1997 and 1996 3 4
Consolidated Balance Sheets - March 31, 1997
and December 31, 1996 5, 64-5
Consolidated Statements of Cash Flows -
Three Months and Twelve Months Ended March 31, 1997
and 1996 7, 86
Consolidated Statements of Capitalization -
March 31, 1997 and December 31, 1996 97
Notes to Consolidated Financial Statements 10 - 128-10
Independent Accountants' Report 1311
Item 2.
Management's Discussion and Analysis of Financial Condition and
Results of Operations 14 - 2112-14
Part II. Other Information:
Item 1. Legal Proceedings 22 - 23
Item 6.
Exhibits and Reports on Form 8-K 24 - 2815-19
Signatures 2920
DEFINITIONS
AFDC Allowance For Funds Used During Construction
BPA Bonneville Power Administration
CSPP Cogeneration and Small Power Production
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
MOU Memorandum of Understanding
MWH Megawatt-Hour
OPUC Oregon Public Utilities Commission
PCA Power Cost Adjustment
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-
lookingForward-looking
statements should be read with the cautionary statements and
important factors included in this formForm 10-Q at Part I, Item 2.
Management's Discussion and Analysis of Financial Condition and
Results of Operations - Forward-Looking Information. Forward-
Looking Information. Forward-lookinglooking 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
IDAHO POWER COMPANY
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
Item 1. FinancialConsolidated Statements of Income
Three Months Ended
March 31,
Increase1998 1997 1996 (Decrease)
(Thousands of dollars)
REVENUES $155,447 $146,629 $ 8,818
EXPENSESDollars)
REVENUES:
Total general business $112,223 $112,961
Off system sales 116,413 34,839
Other revenues 9,534 7,647
Total Revenues 238,170 155,447
EXPENSES:
Operation:
Purchased power 94,206 19,559 8,215 11,344
Fuel expense 20,720 14,485 8,532 5,953
Power cost adjustment 475 (1,244)
6,852 (8,096)
Other 32,947 29,918
33,210 (3,292)
Maintenance 9,028 10,303
8,806 1,497
Depreciation 18,895 17,522 17,395 127
Taxes other than income taxes 5,344 5,831 5,130 701
Total expenses 181,615 96,374 88,140 8,234
INCOME FROM OPERATIONS 56,555 59,073 58,489 584
OTHER INCOME:
Allowance for equity funds used during
constructionGas trading activities - (2) 2Net (718) -
Other - Net 1,705 3,389 3,342 47
Total other income 987 3,389 3,340 49
INTEREST CHARGES:
Interest on long-term debt 13,037 13,805 12,963 842
Other interest 2,086 2,048 1,242 806
Total interest charges 15,123 15,853 14,205 1,648
Allowance for borrowed funds used during
construction (161) (132) (52) (80)
Net interest charges 14,962 15,721 14,153 1,568
INCOME BEFORE INCOME TAXES 42,580 46,741 47,676 (935)
INCOME TAXES 13,125 16,361 17,466 (1,105)
NET INCOME 29,455 30,380 30,210 170
Dividends on preferred stock 1,405 1,394 1,952 (558)
EARNINGS ON COMMON STOCK $28,050 $28,986 $28,258 $ 728
AVERAGE COMMON SHARES OUTSTANDING (000) 37,612 37,612
-
Earnings per share of common stock
$(basic and diluted) 0.75 0.77 $ 0.75 $ 0.02
Dividends paid per share of common stock $ 0.465 $ 0.465 $ -
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
CONSOLIDATED STATEMENTS OF INCOME
FOR THE TWELVE MONTHS ENDED MARCH 31, 1997 AND 1996
Twelve Months EndedConsolidated Balance Sheets
ASSETS
March 31, IncreaseDecember 31,
1998 1997 1996 (Decrease)
(Thousands of Dollars)
REVENUES $587,263 $560,915 $26,348
EXPENSES:
Operation:
Purchased power 80,383 56,084 24,299ELECTRIC PLANT:
In service (at original cost) $2,630,643 $2,605,697
Accumulated provision for depreciation (960,926) (942,400)
In service - Net 1,669,717 1,663,297
Construction work in progress 47,662 51,892
Held for future use 1,738 1,738
Electric plant - Net 1,719,117 1,716,927
INVESTMENTS AND OTHER PROPERTY 104,926 97,065
CURRENT ASSETS:
Cash and cash equivalents 3,338 6,905
Receivables:
Customer 79,113 63,076
Allowance for uncollectible accounts (1,397) (1,397)
Gas Operations 28,403 42,128
Notes 4,688 4,613
Employee notes receivable 4,652 4,757
Other 9,613 8,854
Accrued unbilled revenue 23,796 33,312
Materials and supplies (at average cost) 29,792 29,156
Fuel expense 69,286 47,731 21,555
Power cost adjustment (14,954) 15,849 (30,803)
Other 129,375 127,502 1,873
Maintenance 44,228 35,701 8,527
Depreciation 69,832 68,136 1,696
Taxes other thanstock (at average cost) 8,253 7,172
Prepayments 14,092 15,381
Regulatory assets associated with income taxes 21,359 21,984 (625)3,032 3,164
Total expenses 399,509 372,987 26,522
INCOME FROM OPERATIONS 187,754 187,928 (174)
OTHER INCOME:
Allowance for equity funds used during
construction 48 (16) 64current assets 207,375 217,121
DEFERRED DEBITS:
American Falls and Milner water rights 32,055 32,055
Company-owned life insurance 50,793 51,915
Regulatory assets associated with income taxes 200,661 198,521
Regulatory assets - other 87,808 90,239
Other - Net 12,535 15,770 (3,235)44,511 47,973
Total other income 12,583 15,754 (3,171)
INTEREST CHARGES:
Interest on long-term debt 53,008 51,320 1,688
Other interest 5,989 5,278 711
Total interest charges 58,997 56,598 2,399
Allowance for borrowed funds used
during construction (434) (964) 530
Net interest charges 58,563 55,634 2,929
INCOME BEFORE INCOME TAXES 141,774 148,048 (6,274)
INCOME TAXES 50,987 51,644 (657)
NET INCOME 90,787 96,404 (5,617)
Dividends on preferred stock 6,906 7,916 (1,010)
EARNINGS ON COMMON STOCK $83,881 $88,488 $(4,607)
AVERAGE COMMON SHARES
OUTSTANDING (000) 37,612 37,612 -
Earnings per share of common stock $ 2.23 $ 2.35 $(0.12)
Dividends paid per share of common stock $ 1.86 $ 1.86 $ -deferred debits 415,828 420,703
TOTAL $2,447,246 $2,451,816
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
CONSOLIDATED BALANCE SHEETS
ASSETS
March 31, December 31,
1997 1996
(Thousands of Dollars)
ELECTRIC PLANT:
In service (at original cost) $2,553,035 $2,537,565
Accumulated provision for depreciation (900,869) (886,885)
In service - Net 1,652,166 1,650,680
Construction work in progress 47,435 42,178
Held for future use 1,773 1,773
Electric plant - Net 1,701,374 1,694,631
INVESTMENTS AND OTHER PROPERTY 37,101 36,502
CURRENT ASSETS:
Cash and cash equivalents 8,827 7,928
Receivables:
Customer 41,818 34,962
Allowance for uncollectible accounts (1,397) (1,394)
Notes 5,176 5,104
Employee notes receivable 4,360 4,486
Other 8,010 8,489
Accrued unbilled revenues 20,694 27,709
Materials and supplies (at average cost) 27,813 24,639
Fuel stock (at average cost) 10,133 11,631
Prepayments 15,548 16,165
Regulatory assets associated with income taxes 4,010 4,397
Total current assets 144,992 144,116
DEFERRED DEBITS:
American Falls and Milner water rights 32,260 32,260
Company-owned life insurance 55,593 57,291
Regulatory assets associated with income taxes 200,104 196,696
Regulatory assets - other 85,837 89,507
Other 44,024 44,334
Total deferred debits 417,818 420,088
TOTAL $2,301,285 $2,295,337
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
CONSOLIDATED BALANCE SHEETSConsolidated Balance Sheets
CAPITALIZATION & LIABILITIES
March 31, December 31,
1998 1997 1996
(Thousands of Dollars)
CAPITALIZATION:
Common stock equity - $2.50 par value (shares authorized
50,000,000;
shares outstanding - 37,612,351) $ 688,025 $ 694,574$722,011 $711,818
Preferred stock 106,924 106,975106,627 106,697
Long-term debt 738,553 738,550750,116 746,142
Total capitalization 1,533,502 1,540,0991,578,754 1,564,657
CURRENT LIABILITIES:
Long-term debt due within one year 71 7133,999 33,998
Notes payable 41,593 54,01648,816 57,516
Accounts payable 25,330 36,37060,928 69,064
Accounts payable gas operations 28,817 42,874
Taxes accrued 35,954 17,30438,265 24,295
Interest accrued 15,669 15,886
Accumulated deferred16,518 17,918
Deferred income taxes 4,010 4,3973,032 3,164
Other 33,175 12,43913,902 13,703
Total current liabilities 155,802 140,483244,277 262,532
DEFERRED CREDITS:
Regulatory liabilities associated with accumulated
deferred investment tax credits 70,885 71,28370,320 70,196
Deferred income taxes 417,749 411,890433,234 423,736
Regulatory liabilities associated with
income taxes 34,337 35,02827,622 34,072
Regulatory liabilities - other 589 616483 509
Other 88,421 95,93892,556 96,114
Total deferred credits 611,981 614,755624,215 624,627
COMMITMENTS AND CONTINGENT LIABILITIES
(Note 2)
TOTAL $2,301,285 $2,295,337$2,447,246 $2,451,816
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996Consolidated Statements Of Cash Flows
Three Months Ended
March 31,
1998 1997 1996
OPERATING ACTIVITIES:
(Thousands of Dollars)
Cash received from operations:
Retail revenues $119,809 $123,351
Wholesale revenues 29,035 17,626
Other revenues 6,173 5,729
Fuel paid (17,157) (14,795)
Purchased power paid (11,829) (13,230)
Other operation & maintenance paid (37,088) (41,323)
Interest paid (includes long and short-term debt
only) (14,605) (13,913)
Income taxes paid (309) (1,771)
Taxes other than income taxes paid (3,488) (2,012)
Other operating cash receipts and payments-Net (295) (2,637)
Net cash provided by operating activities 70,246 57,025
FINANCING ACTIVITIES:
PC bond fund requisitions/Other long-term debt (164) 10,000
Short-term borrowings - Net (19,422) (18,000)
Long-term debt retirement (17) (17)
Preferred stock retirement (55) (20)
Dividends on preferred stock (1,172) (2,015)
Dividends on common stock (17,971) (17,481)
Other sources/(uses) 593 (1,257)
Net cash - financing activities (38,208) (28,790)
INVESTING ACTIVITIES:
Additions to utility plant (25,828) (16,535)
Conservation (299) (107)
Increase in investments (2,500) (14,525)
Other (2,512) 155
Net cash - investing activities (31,139) (31,012)
Change in cash and cash equivalents 899 (2,777)
Cash and cash equivalents beginning of period 7,928 8,468
Cash and cash equivalents end of period $8,827 $5,691
RECONCILIATION OF NET INCOME TO NET CASH
PROVIDED BY
OPERATING ACTIVITIES:
Net income $29,455 $30,380 $30,210
Adjustments to reconcile net income to net cash:
Depreciation 17,522 17,395& amortization 21,654 19,400
Deferred income taxes 746 (1,559)
Investmentand investment tax credit-Net (398) (355)
Allowance for funds used during construction (132) (50)
Postretirement benefits funding (excl pensions) 336 (696)
Changes in operatingcredits 1,997 1,360
Change in:
Accounts receivable and prepayments (1,752) (5,704)
Accrued unbilled revenue 9,516 7,016
Materials & supplies and fuel stock (1,717) (1,676)
Accounts payable (22,193) (10,876)
Taxes payable 13,969 18,650
Other current assets and liabilities:
Accounts receivable (430) 77
Fuel inventory (2,672) (6,263)
Accounts payable 7,730 (5,015)
Taxes payable 18,047 20,734
Interest payable 1,253 288liabilities (1,172) 3,047
Other - Net (2,136) 2,259net (1,255) (2,964)
Net cash provided by operating activities $70,246 $57,02548,502 58,633
INVESTING ACTIVITIES:
Additions to utility plant (21,324) (24,586)
Investments in affordable housing (5,000) (9,896)
Other (2,024) (448)
Net cash used in investing activities (28,348) (34,930)
FINANCING ACTIVITIES:
Proceeds from issuance of:
Long-term debt-related to affordable housing 4,084 8,909
Dividends on common stock (17,490) (17,971)
Dividends on preferred stock (1,405) (1,394)
Increase (decrease) in short-term borrowings (8,700) (12,423)
Other - net (210) 75
Net cash provided by (used in) financing
activities (23,721) (22,804)
Net increase (decrease) in cash and cash
equivalents (3,567) 899
Cash and cash equivalents at beginning of period 6,905 7,928
Cash and cash equivalents at end of period $ 3,338 $ 8,827
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Income taxes 1,200 309
Interest (net of amount capitalized) 15,102 14,605
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE TWELVE MONTHS ENDED MARCH 31, 1997 AND 1996
Twelve Months EndedConsolidated Statements Of Capitalization
March 31,
1997 1996
OPERATING ACTIVITIES: (Thousands of Dollars)
Cash received from operations:
Retail revenues $486,962 $473,214
Wholesale revenues 77,961 61,195
Other revenues 24,913 23,027
Fuel paid (62,160) (55,877)
Purchased power paid (68,902) (53,790)
Other operation & maintenance paid (172,820) (156,437)
Interest paid (includes long and short-term debt
only) (53,965) (54,048)
Income taxes paid (43,588) (39,174)
Taxes other than income taxes paid (24,931) (22,833)
Other operating cash receipts and payments-Net 24,166 5,000
Net cash provided by operating activities 187,636 180,277
FINANCING ACTIVITIES:
First mortgage bonds issued 57,000 -
PC bond fund requisitions/Other long-term debt 114,670 10,000
Short-term borrowings - Net (422) (12,500)
Long-term debt retirement (136,369) (519)
Preferred stock retirement (26,565) (133)
Dividends on preferred stock (7,006) (7,813)
Dividends on common stock (70,413) (69,950)
Other sources/(uses) (2,295) (1,225)
Net cash - financing activities (71,400) (82,140)
INVESTING ACTIVITIES:
Additions to utility plant (102,939) (83,254)
Conservation (4,031) (4,455)
Increase in investments (6,544) (14,525)
Other 414 2,510
Net cash - investing activities (113,100) (99,724)
Change in cash and cash equivalents 3,136 (1,587)
Cash and cash equivalents beginning of period 5,691 7,278
Cash and cash equivalents end of period $8,827 $5,691
RECONCILIATION OF NET INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
Net income $90,787 $96,404
Adjustments to reconcile net income to net cash:
Depreciation 69,832 68,136
Deferred income taxes 9,506 6,218
Investment tax credit-Net 733 (1,374)
Allowance for funds used during construction (482) (948)
Postretirement benefits funding (excl pensions) 2,373 (2,516)
Changes in operating assets and liabilities:
Accounts receivable 2,572 (3,479)
Fuel inventory 7,127 (8,147)
Accounts payable 11,481 2,294
Taxes payable (6,383) 6,821
Interest payable 4,835 2,499
Other - Net (4,745) 14,369
Net cash provided by operating activities $187,636 $180,277
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
CONSOLIDATED STATEMENTS OF CAPITALIZATION
March 31, December 31,
1998 1997 1996
(Thousands of Dollars)
COMMON STOCK EQUITY:
Common stock $94,031 $94,031
Premium on capital stock 361,706 362,297361,849 362,328
Capital stock expense (3,841) (3,842)(3,838) (3,840)
Retained earnings 236,129 242,088269,860 259,299
Accumulated other comprehensive income 109 -
Total common stock equity 688,025 44.8% 694,574 45.1%722,011 45.7% 711,818 45.5%
PREFERRED STOCK, cumulative, ($100 par or
stated value):STOCK:
4% preferred stock (authorized 215,000;shares
outstanding:1997-169,239, 1996-169,753) 16,924 16,975
Serial16,627 16,697
7.68% Series, serial preferred stock authorized
150,000 shares:
7.68% Series, outstanding 150,000 shares 15,000 15,000
Serial7.07% Series, serial preferred stock without par value,
authorized 3,000,000 shares:
7.07% Series (authorized and outstanding
250,000 shares) 25,000 25,000
Auction Rate Preferred Series A
(authorized and outstanding 500 shares)rate preferred stock 50,000 50,000
Total preferred stock 106,924 7.0 106,975 6.9106,627 6.8 106,697 6.8
LONG-TERM DEBT:
Utility:
First mortgage bonds:
5.33 % Series due 1998 30,000 30,000
8.65 % Series due 2000 80,000 80,000
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
9.50 % Series dueMaturing 2021 75,000 75,000
7.50 % Series due 2023 80,000 80,000
8 3/4% Series due 2027 50,000 50,000
9.52 % Series duethrough 2031 25,000 25,000with
rates from 7.5% to 9.52% 230,000 230,000
Total first mortgage bonds 527,000 527,000
Amount due within one year - -(30,000) (30,000)
Net first mortgage bonds 527,000 527,000497,000 497,000
Pollution control revenue bonds:
7 1/4% Series due 2008 4,360 4,360
8.30 % Series 1984 due 2014 49,800 49,800
6.05 % Series 1996A due 2026 68,100 68,100
Variable Rate Series 1996B1996 B and C
due 2026 24,200 24,200
Variable Rate Series 1996C due 2026 24,000 24,00048,200 48,200
Total pollution control
revenue bonds 170,460 170,460
REA Notes 1,614 1,6321,543 1,561
Amount due within one year (71) (71)(73) (72)
Net REA Notes 1,543 1,561
Subsidiary debt 9,000 9,0001,470 1,489
American Falls bond guarantee 20,560 20,56020,355 20,355
Milner Dam note guarantee 11,700 11,700
Unamortized premium/discount - Net (1,710) (1,731)(1,612) (1,637)
Net utility debt 699,373 699,367
Subsidiaries:
Debt related to investments in affordable
housing with rates ranging from 6.95%
to 8.65% due 1998 to 2008 50,469 46,385
Other subsidiary debt 4,200 4,316
Total subsidiary debt 54,669 50,701
Amount due within one year (3,926) (3,926)
Net subsidiary debt 50,743 46,775
Total long-term debt 738,553 48.2 738,550 48.0750,116 47.5 746,142 47.7
TOTAL CAPITALIZATION $1,533,502$1,578,754 100.0% $1,540,099$1,564,657 100.0%
The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. SUMMARY OF ACCOUNTING POLICIES:
Financial Statements
In the opinion of the Company, the accompanying unaudited
consolidated financial statements contain all adjustments
necessary to present fairly the consolidated financial
position as of March 31, 19971998 and the consolidated results
of operationoperations for the three months and twelve months ended March 31, 19971998
and 19961997 and the consolidated cash flows for the three
months and twelve months ended March 31, 19971998 and 1996.1997. These financial
statements do not contain the complete detail or footnote
disclosure concerning accounting policies and other
matters which would be included in full year financial
statements and, therefore, they should be read in
conjunction with the Company's audited financial
statements included in the Company's Annual Report on Form
10-K for the year ended December 31, 1996.1997. The results of
operationoperations for the interim periods are not necessarily
indicative of the results to be expected for the full
year.
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.
Principles of Consolidation
The consolidated financial statements include the accounts
of the Company and its wholly-owned subsidiaries, Idaho
Energy Resources Co (IERCo); Idaho Utility Products Company
(IUPCo); IDACORP, Inc.; Ida-West Energy Company (Ida-West);
Stellar Dynamics, Inc. (Stellar); and Idaho Power Resources
Corporation (IPRC). All significant intercompany
transactions and balances have been eliminated in
consolidation.
Revenues
In order to match revenues with associated expenses, the
Company accrues unbilled revenues for electric services
delivered to customers but not yet billed at month-end.
Comprehensive Income
The Company adopted SFAS 130, Reporting Comprehensive
Income, on January 1, 1998. The statement establishes a
standard for the reporting and displaying of comprehensive
income and its components in the Company's financial
statements.
For the quarter ended March 31, 1998, the Company's total
comprehensive income was not materially different from net
income. The components of total comprehensive income
include net income, the Company's proportionate share of
unrealized holding gains on marketable securities held by
an equity investee, and the changes in the Company's
additional minimum liability under a deferred compensation
plan for certain senior management employees and
directors.
Cash and Cash Equivalents
For purposes of reporting cash flows, cash and cash
equivalents include cash on hand and highly liquid
temporary investments with original maturity dates of
three months or less. The Company has changed the
statement of cash flows from the direct method to the
indirect method effective for the quarter ended March 31,
1998. Previous year's presentation has been restated to
conform with the new method.
Management Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires
management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and the
disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts
of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
Gas Operations
The Company intends to be a competitive energy provider,
including both electricity and gas. In April 1997 the
Company opened a gas trading office in Houston, Texas to
serve the southern and eastern United States gas markets
and a Boise, Idaho office that serves the Northwest and
Canadian markets. The following table shows gas trading
activities for the quarter ended March 31, 1998 (thousands
of dollars):
Gas revenues $ 97,158
Cost of gas (97,166)
Administrative and General expenses (710)
Gas trading activities - Net $ (718)
Reclassifications
Certain items previously reported for periods prior to
March 31, 1998 have been reclassified to conform with the
current periods presentation. Net income was not affected
by these reclassifications.
2. COMMITMENTS AND CONTINGENT LIABILITIES:
Commitments under contracts and purchase orders relating
to the Company's program for construction and operation of
facilities amounted to approximately $1.4$2.8 million at March
31, 1997.1998. The commitments are generally revocable by the
Company subject to reimbursement of manufacturers'
expenditures incurred and/or other termination charges.
The Company is party to various legal claims, actions, and
complaints, certain of which involve material amounts.
Although the Company is unable to predict with certainty
whether or not it will ultimately be successful in these
legal proceedings, or, if not, what the impact might be,
based upon the advice of legal counsel, management
presently believes that disposition of these matters will
not have a material adverse effect on the Company's
financial position, results of operation, or cash flow.
3. REGULATORY ISSUES:
The Company has in place, in its Idaho jurisdiction, a Power Cost Adjustment (PCA)PCA mechanism whichthat provides for Idaho'sannual
adjustments to the rates charged to Idaho retail customer rates to be adjusted annually to
reflect the Idaho sharecustomers.
These adjustments are based on forecasts of forecasted net power supply
costs. Deviations fromcosts, and take effect annually on May 16. The difference
between the actual costs incurred and the forecasted costs
are deferred, with interest, and then adjusted (trued-up)trued-up in the subsequent
year. Atnext annual
rate adjustment. So far in the current rate period, actual
power cost expenses have exceeded the forecast. The Company
has recorded a regulatory asset of $15.4 million as of March
31, 1997,1998. The variance that exists at the Company had recorded $11.6
millionend of power supply costs above those projectedthe current
rate period will be trued-up in the 1996 forecast innext annual PCA
adjustment.
On April 15, 1998 the deferred account. The current
deferred balance is adjusted monthly as actual conditions
are compared to the forecasted net power supply costs.
The Company filed its 1997annual PCA application on April 15,
1997, requesting a change in the Idaho jurisdiction PCA
rate. The combined effect of this year's PCA changerequest
with the IPUC. The filing requests a $37.1 million increase
over the 1997 rates. The increase is largely due to the
return to more normal streamflow conditions and rising costs
associated with mandatory purchases from CSPP projects. If
this request is approved, revenue sharing mechanism described below will decrease
current rates by $2.6 million or an average of 0.63
percent. The proposed rates forfrom Idaho retail customers
are
$20.2will be $20.4 million belowgreater than what would be recovered if
the Company was charging the base rates established in past
regulatory proceedings.during this rate
period.
Under IPUC Order No. 26216, when the Company's actual
earnings in the Idaho jurisdiction in a given year exceed
an 11.75 percent return on year-end common equity, the
Company will refund 50 percent of the excess whenat the same
time it makes its next PCA adjustment. In 1996,1997, the
Company set aside approximately
$4.9an estimated $8.7 million of revenue for
the benefit of its Idaho customers. The Company has filedSubsequently, this
amount was revised to reduce customers rates
by $3.5$7.6 million, forbased on actual data.
In the period May 16, 1997 through MayApril 15, 1998 andPCA filing, the Company requested
that the carrying charge (interest) applied to the
Idaho jurisdictional demand side conservation expenditures
for 1996 in thethis revised amount of $1.4 million be retained from
sharing and applied against the currentbalance of
demand-side conservation expenditures which are currently
recorded as a regulatory asset
balance.asset.
4. FINANCING:
The Company currently has a $200,000,000 shelf
registration statement whichthat can be used for both First
Mortgage Bonds (including Medium Term Notes) and Preferred
Stock. In
1996, the Company issued $30,000,000 and $27,000,000
principal amountStock of Secured Medium Term Notes, due 2001 and
2002, respectively. These transactions have reduced the
remaining balance of the shelf registration to $143,000,000which $143 million remains available at March 31,
1997.1998.
5. INCOME TAXES:
The effective tax rate for the first three months
decreased from 36.6%35.0 percent in 19961997 to 35.0%30.8 percent in
1997. A1998. The table below displays a reconciliation between
the statutory federal income tax rate of 35.0 percent and
the effective ratetax rates for the three months ended March
31 (dollars are in thousands):
1998 1997
and 1996 is as follows:
1997 1996
Amount Rate Amount Rate
Computed income taxes based on statutory federal
income tax rate $14,903 35.0% $16,359 35.0 % $16,687 35.0 %35.0%
Changes in taxes resulting from:
Current state income taxes.taxes 1,715 4.0 1,823 3.9
2,239 4.7
Net depreciation 1,350 3.2 1,281 2.7 1,099 2.3
Investment tax credits restored (729) (1.7) (719) (1.5)
(703)Removal costs (653) (1.5) restored(267) (0.6)
Repair allowance (782) (1.8) (782) (1.7) (880) (1.8)
Low income housing credit (1,593) (3.7) (1,014) (2.2)
(345) (0.7)
Other (587) (1.2) (631) (1.4)(1,086) (2.7) (320) (0.6)
$13,125 30.8% $16,361 35.0 % $17,466 36.6 %35.0%
6. NEW ACCOUNTING PRONOUNCEMENT:
In FebruaryPREFERRED STOCK:
The number of shares of preferred stock outstanding were as follows:
March 31, December 31,
1998 1997
the Financial Accounting Standards Board
issued StatementCumulative, $100 par value:
4% preferred stock (authorized 215,000 166,271 166,972
shares)
Serial preferred stock, 7.68% Series 150,000 150,000
(authorized 150,000 shares)
Serial preferred stock, cumulative, without
par value; total of Financial Accounting Standards No. 128,
EARNINGS PER SHARE.
This statement is effective for financial statements for
both interim and annual periods ending after December 15,
1997. The objective of the statement is to simplify the
computations of earnings per share. The Company does not
expect the adoption of this statement to have a significant
effect on its earnings per share.3,000,000 shares
authorized:
7.07% Series, $100 stated value, 250,000 250,000
(authorized 250,000 shares)
Auction rate preferred stock, $100,000
stated value,
(authorized 500 shares) 500 500
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, 1997,1998, and the related
consolidated statements of income for the three- and twelve-three month periods
ended March 31, 19971998 and 19961997 and consolidated statements of
cash flows for the three- and twelve-monththree month periods ended March 31, 19971998
and 1996.1997. 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 making inquiries of persons responsible
for financial and accounting matters. It is substantially
less in scope than an audit conducted in accordance with
generally accepted auditing standards, 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
generally accepted accounting principles.
We have previously audited, in accordance with generally
accepted auditing standards, the consolidated balance sheet
and statement of capitalization of Idaho Power Company and
subsidiaries as of December 31, 1996,1997, and the related
consolidated statements of income, retained earnings, and
cash flows for the year then ended (not presented herein);
and in our report dated January 31, 1997,30, 1998, 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, 19961997 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
Portland, Oregon
April 30, 1997May 8, 1998
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
OVERVIEW
Idaho Power Company'sThis discussion and consolidated financial statements representreflect the
operations of Idaho Power Company and its six wholly-owned subsidiaries: Idaho Energy Resources
Company (IERCo); Ida-West Energy Company (Ida-West); IDACORP, Inc.;
Idaho Utility Products Company (IUPCo); Idaho Power Resources
Corporation (IPRC); and Stellar Dynamics, Inc. (Stellar).wholly owned or
controlled subsidiaries. This discussion uses the terms Idaho
Power and the Company interchangeably to refer to Idaho Power Company and
its subsidiaries.
Forward-Looking InformationFORWARD-LOOKING INFORMATION
Certain matters discussed in this report are "forward-looking
statements" intended to qualify for the safe harbor from
liability established by the Private Securities Litigation Reform
Act of 1995. Such statements address future plans, objectives,
expectations, and events or conditions concerning various matters
such as capital expenditures, earnings, litigation, rate and
other regulatory matters, liquidity and capital resources, and
accounting matters. Actual results in each case could differ
materially from those currently anticipated in such statements,
by reason of factors including without limitations, electric
utility restructuring, including ongoing state and federal
activities; future economic conditions; legislation; regulation;
competition; and other circumstances affecting anticipated rates,
revenues and costs. Any forward-looking statement speaks only as
of the date on which such statement is made, and the Company
undertakes no obligation to update any forward-looking statement.
RESULTS OF OPERATIONS
Earnings Per Share and Book Value
Earnings per share of common stock (basic and diluted) were $0.77$0.75
for the quarter an
increaseended March 31, 1998, a decrease of $0.02 (2.7(2.6
percent) from the same quarter last year. The
twelve months ended March 31, 1997 yielded earnings of $2.23 per share,
a decrease of $0.12 (5.1 percent) from the twelve months ended March
31, 1996. The twelve-month earnings represent a 12.2 percent earned
return on March 31, 1997 common equity, compared to the 13.1 percent
earned through March 31 last year. At March 31, 1997,1998, the
book value per share of common stock was $18.29,$19.20.
Revenue
General business revenue is dependent on many factors, including
the number of customers, revenue per MWH, and weather conditions.
In the first quarter of 1998, customers served increased 3.0
percent compared to $17.97 for the same
period a year ago.
RESULTS OF OPERATIONS
Precipitation and Streamflows
Idaho Power monitors the effectfirst quarter of precipitation and streamflow
conditions on Brownlee Reservoir, the water source for the three Hells
Canyon hydroelectric projects. In a typical year, these three projects
combine1997, due primarily to
produce about half of the Company's generated electricity.
Precipitationeconomic growth in the Company's service territory was below normal
levels for the first three months of 1997. At April 1, 1997, reservoir
storage above Brownlee was 54territory. The revenue
per MWH decreased 1.9 percent, of capacity, compared to 71
percent last year and an average storage of 101 percent for the same
period.
The U.S. Army Corps of Engineers coordinates flood control activitiesa result of the Company's water resources based upon streamflow forecasts. This
year, due to high mountain snowpacks, the Company is required to draft
water from Brownlee Reservoir to make space for holding anticipated
flood flows. The reservoir will be refilled during the peak of the
runoffannual rate
adjustments discussed below in early summer.
Inflows into Brownlee result from"Power Cost Adjustment.". Heating
degree days, a combination of precipitation,
storage, and ground water conditions. At April 1, 1997, the Company
estimated that 9.2 million acre-feet (MAF) of water will flow into
Brownlee Reservoir during the April-July runoff period, compared to 8.3
MAF for 1996. This figure represents approximately 191 percent of the
69-year median of 4.81 MAF.
Energy Requirements
For the first three months of 1997, the Company met its total system
energy requirements from the following sources: hydro generation (68
percent); thermal generation (22 percent); and purchased power and
other interchanges (10 percent). For the same period of 1996, these
figures were 67 percent hydro; 22 percent thermal; and 11 percent
purchased power and other interchanges.
The Company estimates that 56 percent of its 1997 energy requirements
will come from hydro generation, 27 percent from thermal generation,
and 17 percent from purchased power and other interchanges.
Economy
Since 1987, Idaho's economy has consistently posted annual gains in
employment. On many occasionscommon measure used in the past ten years, Idaho earned a
ranking among the top five fastest growing states in the nation. For
this period, nonagricultural employment in the state grew at an annual
average compound rate of approximately 4.2utility industry to
analyze temperature-related demand, were 11.5 percent per year. Idaho's
employment growth continued to show strength in the first two months of
1997. Total non-agricultural employment in the state was up 3.5% when
compared to the levels experienced in the first two months of 1996.
The leading sectors were construction employment with an 8.3% gain,
wholesale and retail trade at 4.2% gain, services with a 3.6% gain, and
manufacturing which posted a 2.0% increase in employment. It is likely
that Idaho's economy will continue to post employment gains which are
above the national average throughout 1997.
Power Cost Adjustment
Since 1993, the Idaho Public Utilities Commission (IPUC) has permitted
Idaho Power to use a PCA mechanism in its Idaho jurisdiction. The PCA
enables the Company to collect or to refund a portion of the difference
between net power supply costs actually incurred and those allowed in
the Company's base rates. The current balance is adjusted monthly as
actual conditions are compared to the PCA forecasted net power supply
costs. For the period May 1997 through May 1998, the Company filed to
have tariffs approved from the IPUC, reducing Idaho jurisdictional
customers' PCA rates by $2.6 million (0.63 percent), including the true-
up for the PCA period May 1996 through May 1997 and a $3.5 million
refund per IPUC Order No. 26216. The proposed rates for Idaho retail
customers are $20.2 million below the base rates established in past
regulatory proceedings (see Note 3). The reduction reflects
anticipated below normal power supply costs in the coming year due to
above-average hydroelectric generating conditions. The 1997 PCA
forecast reflects power supply costs below those established for PCA
expenses in the Company's last general rate proceeding. At March 31,
1997, the Company had recorded as deferred assets and reduction in
operating expenses $11.6 million of power supply costs above those
projected in the 1996 forecast.
Revenues
General business revenues were down $6.2 million (5.2 percent) for the
quarter but increased $5.5 million (1.2 percent) for the twelve months
ended March 31, 1997. The Company's revenues from residential and
commercial customers decreased $3.8 million and $0.9 million due to
warmer temperatures inless than
the first quarter of 1997, and lower rates due to19.4 percent below normal. This
resulted in a 1.6 percent decrease in the 1996/1997 PCA rate decrease. Industrial revenues were also down by
$1.6 million.
Off-system Salesaverage MWH used per
customer. These three factors resulted in a 0.7 percent decrease
in general business revenue.
Off-system sales are composedcomprised of firm sales (long-term contracts)trading in the wholesale
electricity markets, long-term contracts, and opportunity sales
made on a when-available basis. The volume and price
of these latter sales depend on the Company's firm energy demand,
hydroelectric generating conditions in its service territory, and
market conditions throughout the West. Revenues from off-system sales
increased $14.3 million (70.0 percent) for the quarter and $23.6
million (38.7 percent) for the twelve months ended.when available. The increase in off-system revenue is due
primarily to a 158.4 percent increase in MWH sales, reflects improved hydroelectric generating conditions
in 1997 andprimarily
from increased trading of non-system sales when sales margins
are favorable and economical.
Total operating revenues increased $8.8 million (6.0 percent) forin the first quarter and $26.3 million (4.7 percent) for the twelve months
ended.wholesale electricity markets.
Expenses
Total operation and maintenance expenses were up $7.4 million (11.3
percent) for the quarter, and $25.5 million (9.0 percent) for the
twelve months ended March 31, 1997.
Purchased power expenses were up for the quarter by $11.3increased $74.6 million (138.1(381.6 percent),
and $24.3 million (43.3 percent) for the twelve months
ended. Thedue to a 323.3 percent increase also reflectsin MWHs purchased, primarily from
increased purchases from
cogeneration and small power production (CSPP), which also experienced
strong hydroelectric generating conditions. The increases reflect the
Company's increased participation in the buying and selling of non-
system powertrading in the wholesale power market.electricity markets.
Fuel expenses were up for the quarter $6.0increased $6.2 million (69.8(43.1 percent), and
$21.6 million (45.2 percent) for the twelve months ended. Thedue
primarily to a 50.2 percent increase for the quarter is mainly due to the operation of the Valmy and Jim
Bridgerin MWHs generated by
Company's coal-fired power plants. Generation by these plants
last winter during periods when market
prices were favorable.was increased to take advantage of off system sales
opportunities.
The PCA component of expenses was down for the quarter, and twelve-
month periods by $8.1 million, and $30.8 million respectively.increased $1.7 million. The PCA
mechanism reduces expenses when actual power supply costs are
above forecast and increases them when power supply costs are
below forecast. In the first quarter of 1998, power supply costs
were below forecast, while in 1997 they were above forecast. The
PCA is discussed below in "Power Cost Adjustment."
Other operation expenses decreased for the quarter $3.3increased $3.0 million (9.9
percent)due to increases
in electricity wheeling charges, related to increased MWH sales,
and increased $1.9payroll-related expenses.
Maintenance expenses decreased $1.3 million (1.5 percent) for the twelve months
ended. Thedue primarily to
decreased expenses for the quarter are due in part to the
reduction in payroll costs associated with the customer records and
collections expense.
Otherboiler maintenance expenses increased forat the quarter $1.5 million (17.0
percent) and $8.5 million (23.9 percent) for the twelve months ended.Jim Bridger plant.
During the first quarter of 1997, extensive maintenance was
performed on the Company's steam power
generation facilities was increased,plant while the Company maximized itsthe use of hydroelectricits
hydro generation facilities.
For the twelve month period there was
increased maintenance on both transmission and distribution facilities
due to facilities damaged or destroyed by natural causes.Other
Other income decreased by $3.2 million or 20.5 percent for the twelve
months ended primarily because profits from Bridger Coal Company were
down due to decreased sales of coal.
Total interest costs increased for the quarter, and twelve months ended
by $1.6 million, and $2.4 million, respectively. These increases are
partlydue primarily to a $1.0
million increase in expenses related to Company initiatives and
$0.7 million of losses on gas trading activities. In addition,
in 1997 the Company recorded a $0.6 million gain on the sale of
an investment.
Income taxes decreased due primarily to the decrease in net
income before taxes and a decrease in the effective tax rate.
The effective tax rate has decreased primarily as a result of
increased borrowings by the Company's subsidiariestax credits from affordable housing and the issuanceimpact of
$30.0 million and $27.0 million Medium Term Notes
byexpected tax settlements for the Company in 1996.
Ida-West Energy Company
This wholly-owned subsidiary of the Company holds investments in
thirteen operating hydroelectric plants with a total generating
capacity of 72 megawatts (MW). Five plants are located in Idaho. The
other eight plants are located in California. Ida-West owns, through
various entities, a 50 percent equity interest in ten of these
projects. It holds 100 percent of the senior debt relating to three of
these projects and 100 percent of the subordinated debt relating to
another one of these projects. One of Ida-West's wholly-owned
subsidiaries also operates and maintains ten of these plants.
In addition, Ida-West has an interest in the Hermiston Power Project, a
460-megawatt gas-fired cogeneration project to be located near
Hermiston, Oregon. Ida-West has been responsible for managing all
permitting and development activities relating to the project since its
inception in 1993 and has obtained all permits necessary for
construction and operation of the project. Ida-West and its partner
are exploring various alternatives for marketing the project's output.
To date, the Company's investment in Ida-West is $22.0 million. Ida-
West continues an active search for new projects.
Idaho Power Resources Corporation
IPRC is a wholly-owned subsidiary incorporated in March 1996. IPRC's
goals are to establish, acquire, and expand business operations in
sustainable infrastructure technology and services. IPRC is charged
with marketing the Company's expertise in renewable energy
technologies, communication systems, and energy efficiency. The
Company's total investment is approximately $4.0 million for
development and acquisition activities in IPRC.
Stellar Dynamics, Inc.
Stellar Dynamics' core business is to provide products and services to
control, protect, and monitor utility and industry processes and
equipment. Stellar offers design and integration of high-quality
modular process control systems backed with field support, training,
documentation, and customer service. As Stellar's capital requirements
increase, the Company has approved additional equity investments up to
a total of $3.0 million. To date, the Company's investment in Stellar
is $1.2 million.
IDACORP, Inc.
Through this wholly-owned subsidiary, the Company is participating in
six affordable housing programs. These investments provide a return to
IDACORP by reducing the Company's federal income taxes and by assuring
a return on investment through tax credits and tax depreciation
benefits. To date the Company's investment in IDACORP is $9.2 million.years 1993-1995.
LIQUIDITY AND CAPITAL RESOURCES
Cash Flow
For the three months ended March 31, 1997,1998, the Company generated
$70.2$48.5 million in net cash from operations. After deducting for
both common and preferred dividends, net cash generation from
operations provided approximately $51.1$29.6 million for the Company's
construction program and other capital requirements. This is a 36.2 percent increase over the
same period in 1996.
Cash Expenditures
Idaho Power estimates that its cash construction program for 19971998
will require approximately $89.0$100.0 million. This estimate is
subject to revision in light of changing economic, regulatory,
environmental, and conservation factors. During the first three
months of 1997,1998, the Company expended approximately $25.8$21.3 million
for construction. Idaho Power's primary financial commitments
and obligations are related to contracts and purchase orders
associated with its ongoing construction program. To the extent
required, the Company expects to finance these commitments and
obligations by using both internally generated funds and
externally financed capital. The Company has
regulatory authority to incur up to $200,000,000 of short-term
indebtedness. On December 19, 1996, the company replaced its committed
lines of credit arrangements with a $120,000,000 multi-year revolving
credit facility, which will expire on December 19, 2001. Under this
facility the Company will pay a facility fee on the commitment,
quarterly in arrears, based on the Company's First Mortgage Bond
rating. Commercial paper may be issued in an amount not to exceed 25
percent of revenues for the latest twelve-month period subject to the
$200,000,000 maximum described above and is supported by bank lines of
credit of an equal amount.. The Company may use this revolving credit
facility to finance a portion of its construction program on an interim
basis. At March 31, 19971998, the Company's
short-term borrowings totaled $41.6$48.8 million.
Financing Program
The Company currently has a $200,000,000 shelf registration
statement whichthat can be used for both First Mortgage Bonds
(including Medium Term Notes) and Preferred Stock. In 1996, the Company issued $30,000,000
and $27,000,000 principal amountStock of Secured Medium Term Notes, due 2001
and 2002, respectively. These transactions have reduced the remaining
balance of the shelf registration to $143,000,000which $143
million remains available at March 31, 1997.1998. Idaho Power's
objective is to maintain capitalization ratios of approximately
45 percent common equity, 5 to 10 percent preferred stock, and
the balance in long-term debt. For the twelve-month period ended
March 31, 1997, the Company's consolidated pre-tax interest coverage
was 3.403.24 times.
Salmon Recovery Plan
Work continues on the development of a comprehensive and scientifically
credible plan to ensure the long-term survival of anadromous fish runs
on the Columbia and Lower Snake Rivers.
In mid-August 1994, the federal government changed its designation of
the Snake River Fall Chinook Salmon from Threatened to Endangered. The
Company does not anticipate that the new designation will have any
major effects on its operations. In September 1991, the Company
modified operations at its three-dam Hells Canyon Hydroelectric Complex
to protect the Fall Chinook downstream during spawning and juvenile
emergence. From its start, the Company's Fall Chinook program has
exceeded the protection requirements for threatened species, affording
the fish the same high level of protection due an endangered species.
In March of 1995, the National Marine Fisheries Service (NMFS) released
a Proposed Recovery Plan for the listed Snake River Salmon. The NMFS
accepted public comment on the Plan through December of 1995. As
drafted, the Plan would not require any change to the Company's current
operations for salmon. Pending completion of a final recovery plan by
the NMFS, the U.S. Army Corps of Engineers and other governmental
agencies operating federally owned dams and reservoirs on the Snake and
Columbia Rivers will continue to consult with the NMFS regarding
ongoing system operations. These interim operations are not expected
to change the Company's current operations for salmon.OTHER MATTERS
Power Cost Adjustment
The Company has negotiated a five-year contract with BPAPCA mechanism that provides for annual
adjustments to replace
lost energy and capacity resulting from recovery plans that impact the Company'srates charged to Idaho retail customers.
These adjustments, which take effect annually on May 16, are
based on forecasts of net power supply cost.
Nez Perce Lawsuit
In 1996, Idaho Power's Board of Directorscosts. The difference
between the actual costs incurred and the Nez Perce Tribe
approved an Agreement betweenforecasted costs are
deferred, with interest, and trued-up in the next annual rate
adjustment.
On April 15, 1998 the Company andfiled its annual PCA request with
the Tribe which would
resolveIPUC. The filing requests a civil lawsuit filed against Idaho Power in December of 1991,
in$37.1 million increase over the
United States District Court for the District of Idaho,
regarding alleged damages1997 rates. The increase is largely due to the Tribe's treaty-reserved fishing
rights.
The suit arosereturn to more
normal streamflow conditions and rising costs associated with
mandatory purchases from CSPP projects. If this request is
approved, revenue from Idaho retail customers will be $20.4
million greater than what would be recovered if the construction, maintenance, and operation of
Idaho Power's three-dam Hells Canyon Hydroelectric Complex andCompany was
charging the project's alleged impact both on fish and the Tribe's treaty-reserved
fishing rights. The Agreement required the approval of the United
States government (through the Bureau of Indian Affairs (BIA)) acting
in its capacity as trustee for the Tribe.base rates during this rate period.
Regulatory Settlement
Under the terms of the
Agreement, Idaho Power would pay the Nez Perce Tribe $11.5 million in
the following manner:
- $5 million at which time the Nez Perce would move for the
dismissal of, with prejudice, their legal action against the
Company
- $1,625,000 each year for the next four years
All payments under the Agreement will be made in 1996 dollars, which
allows for adjusted future inflation within a minimum range of 3
percent and a maximum of 7 percent.
On July 12, 1996, thean IPUC issued Order No. 26513, and on August 5,
1996, the OPUC issued Order No. 96-207 approving capitalization of
their respective jurisdictional share of the $11.5 million. The
Company has recorded the $11.5 million as a regulatory asset due from
ratepayers and a liability to the Tribe. The Tribe requested BIA
approval. However, on November 21, 1996, the Portland Area Director of
the BIA issued a decision stating that the Agreement did not have to be
approved by the BIA and declined to review the Agreement. On December
19, 1996, Idaho Power Company filed an administrative appeal of the
BIA's decision. As a result of the BIA decision, the Tribe and the
Company explored alternatives to BIA approval that would help assure
the ultimate enforceability of the Agreement. The parties agreed to
request that the Federal District Court for the District of Idaho
approve the Agreement. The Tribe and the Company, by motion,
stipulated that the Ninth Circuit Court of Appeals remand the case to
the Federal District Court for the District of Idaho, which motion was
granted by the Ninth Circuit on February 6, 1997. On March 21, 1997,
the Federal District Court for the District of Idaho entered a
judgement which incorporated the terms of the Agreement. On March 28,
1997, Idaho Power paid the Tribe $5 million plus agreed upon interest
which reduced regulatory assets.
In connection with settling the litigation, Idaho Power and the Tribe
also reached a provisional settlement regarding the license renewal of
the Hells Canyon Complex. In return for the Tribe's support of the
Company's application to relicense the project, the Company will place
$5 million, the majority of which the Tribe has agreed to dedicate to
implementable fisheries restoration efforts, in an escrow account on
August 3, 2003, the date by which the Company must file its relicense
application. The Tribe will be entitled to earnings from investments
on this account until the Company accepts or rejects a new federal
license for the project. If the Company accepts the new federal
license, the Tribe will take ownership of the money in the account. If
the Company rejects the license, the money will be returned to the
Company. This settlement is provisional because the Tribe retains the
right to opt out of this relicensing settlement at any time prior to
the Company's acceptance of a new federal license.
Regulatory Settlement
On August 3, 1995, Idaho Power filed a proposal with the IPUC to
support the Company's organizational redesign. In response to the
Company's proposal, the IPUC approved a Settlement that authorizes the
Company to defer and amortize costs related to reorganization in return
for a general rate freeze through the end of 1999. In addition, the
Settlement allows for the accelerated amortization of regulatory
liabilities associated with accumulated deferred investment tax credits
(ADITCs) to provide a minimum 11.50 percent return on actual year-end
common equity for the Idaho jurisdiction. The new rate freeze and the
accelerated amortization of regulatory liabilities associated with
ADITCs gives the Company time to pursue and to implement its efficiency
and growth initiatives with the assurance of at least a reasonable
level of financial performance apart from the need to change customer
prices.
The terms and conditions of the Settlement will remain in effect through 1999. Under the Settlement,though 1999, when
the Company's actual earnings in a given year exceedthe Idaho jurisdiction exceeds
an 11.75 percent return on year-end common equity, the Company
will refund 50 percent of the excess.excess to Idaho's retail
ratepayers. In 1996,1997, the Company set aside approximately $4.9an estimated $8.7
million of revenue for the benefit of its Idaho customers.
The Company has filedSubsequently, this amount was revised to reduce customers
rates by $3.5$7.6 million, forbased on
actual data. In the period May 16, 1997 through MayApril 15, 1998 andPCA filing, the Company
requested that the carrying charge (interest) applied to the Idaho
jurisdictional demand side conservation expenditures for 1996 in thethis revised amount of $1.4 million be retained from sharing and applied against the currentbalance
of demand-side conservation expenditures which are currently
recorded as a regulatory asset balance.
Other important points inasset.
Precipitation and Streamflows
Idaho Power monitors the Settlement are: (1)effect of precipitation and streamflow
conditions on Brownlee Reservoir, the water source for the three
Hells Canyon hydroelectric projects. In a typical year, these
three projects combine to produce about half of the Company's
generated electricity.
Inflows into Brownlee result from a combination of precipitation,
storage, and ground water conditions. Independent forecasters
have projected that inflow into Brownlee Reservoir during the
April-July runoff period will be 5.2 MAF, slightly more than the
70-year median of 4.9 MAF and just more than half of 1997's 9.8
MAF.
Holding Company
In the second half of 1997, the Company may
acceleratefiled applications with
state regulatory commissions in Idaho, Oregon, Nevada and Wyoming
and with the FERC seeking approval to form a maximumholding company to
be called IDACORP, Inc. The purpose of $30 million of regulatory liabilities
associated with ADITCs over the five-year period; (2) the Company will
not be allowedholding company is to
increase its Idaho general rates prior to January 1,
2000, except under conditions as defined in the Settlement Agreement;
and (3)position Idaho Power agrees that its quality of service will not decline
as a result of corporate reorganization.
The Company has received approval fromto respond to the Idaho State Tax Commission
and the Internal Revenue Service on the accounting treatment for the
tax credits.
Marketing Business Unit
To accommodate its customers and allow it to compete in the rapidly
evolving competitive market, the Company formed a Marketing Business
Unit effective January 1997. This newchanging business
unit will be
responsible for all purchases and sales of electric energy, market
research, and planning and implementation of marketing strategies.
The Board of Directors gave approval in the March 1997 meeting for the
Company to begin building gas marketing capability. It is the intent
of the Company to be a competitive energy provider, including both
electricity and gas. To successfully realize this vision, the
Marketing Business Unit has been charged with developing an
organization with the capability to service our customers' total energy
needs. In response to this objective, the Company has begun setting up
gas marketing capability in its Boise Office to service the Northwest
gas markets and is setting up a gas trading office in Houston, Texas to
service the southern and eastern United States gas markets. Gas
trading at these locations will begin in the second quarter, 1997.
The ability to trade in both electricity and gas physical and commodity
markets gives the Marketing Business Unit the flexibility needed to
service our customers' total energy needs profitably, while managing
the market risk inherent in the energy marketing business.
Competition and Strategic Planning
Competition is increasingenvironment in the electric utility industry, due to a
varietyindustry. Upon consummation
of developments. In response,the transaction Idaho Power, continuesalong with Ida-West, will become
wholly owned subsidiaries of IDACORP. Orders approving the
formation of the holding company have been received from Idaho,
Oregon, Wyoming and the FERC. Nevada has also approved the
transaction and will be issuing its order shortly. The matter
was submitted to proceedand approved by the shareholders at the 1998
Annual Meeting. Upon receipt of all regulatory approvals it is
expected the holding company will be effective sometime in the
second half of 1998.
Year 2000 Costs
The Year 2000 issue is the result of potential problems with
computer systems or any equipment with computer chips that use
dates where the year has been stored as just two characters (e.g.
97 for 1997). These systems may incorrectly evaluate dates
beyond the year 1999, potentially causing system failure and
disruption of operations which could materially affect the
Company's ability to conduct business. These systems must be
identified and either modified or replaced with systems that
correctly recognize dates beyond 1999.
The Company has developed and implemented a strategic planning process.Year 2000 Compliance
Plan that addresses traditional hardware and software systems,
embedded systems, and service providers. The goalplan also includes
identification of this process isand coordination with all external interfacing
systems. The Company expects its critical systems to anticipate and fully integrate into Company operations any legislative,
regulatory, environmental, competitive, or technological changes. With
its low energy production costs,be
compliant by mid-1999.
Idaho Power is well-positionedconnected to enter a more competitive environmentan electric grid that connects
utilities throughout the western portion of North America. This
interconnection is essential to the reliability and operational
integrity of each connected utility. This also means that
failure of one electric utility in the interconnected grid could
cause the failure of others. In this regard, the Company is
taking action to preserve
its low-cost competitive advantage.working closely with other electric industry organizations
concerned with the reliability issues and technical
collaboration.
The Company believes the first meaningful stepestimates that its operating expenses related to a competitive retail
energy market is the functional unbundling of costs into the various
deliverythis
issue will total approximately $4.8 million between 1998 and energy components.2000
and will be expensed as incurred. The Company believes that the
unbundling of costs will create a real means for our customers to
compare energy prices and that cost unbundling will facilitate the
establishment of more accurate price signals for service components.
Legislation has been passed in Idaho requiring the IPUC to initiate an
unbundling investigation in July 1997. The Company is prepared to
bring forward cost unbundling information in its regulatory
jurisdictions during 1997. The Company expectsdoes not expect
these expenditures to have a filing before
the Idaho Commission prior to the startmaterial effect on its financial
condition or results of its investigation.
The Company further believes that the future of the electric utility
industry will be characterized by the right of customers to choose
their own electric service provider. To remain successful, Idaho Power
must continue to provide value to its shareholders in the face of this
new competitive environment. The Company's vision involves three
strategies for creating this value: selective and efficient use of
capital; an enhanced customer orientation; and innovative, efficient
operations. Because future prices for power will be determined more by
market forces and less by regulatory administration, the Company must
be very selective and efficient in the use and allocation of capital.
Idaho Power will invest in improving and expanding its core business,
in developing new opportunities beyond its current service territory,
and in continuing to develop non-regulated opportunities consistent
with the Company's core competencies.
Based on this vision and the Company's efforts to increase shareholder
and customer value, Idaho Power is transforming its operations to
improve both efficiency and customer service. Teams of employees are
redesigning work processes. In some cases, these improved processes
are successfully in place.
Independent Grid Operator (IndeGo)
A group of twenty-one electric utilities, including Idaho Power, seven
Northwest investor-owned utilities, Bonneville Power Administration
(BPA) and several public electric entities have signed a memorandum of
understanding that will create an independent transmission grid
operator called "IndeGO". It will ensure non-discriminatory, open-
access to electricity transmission facilities in compliance with recent
FERC rulings. This memorandum of understanding is an agreement to
investigate the feasibility of developing a regional transmission grid
which would be operated by an entity independent of power market
interests. It is believed that the formation of such an entity will
facilitate the operation of an evolving competitive electric power
market. Operating as one regional system, the utilities will be able
to increase the efficiency of transmission operations and provide
improved access for all system users.
IndeGo is envisioned as an independent transmission company not
controlled by any individual power market participant(s). It is
anticipated that IndeGO will operate as a single control area, with
pricing based on a single zonal tariff applied equally to all users
including the participating companies.
IndeGO will not own transmission facilities at the onset, but will be
responsible for the operation of main transmission grid facilities 230
kilovolts (kV) or more that are owned by the participating utilities.
The group plans to file the IndeGo proposal with FERC during 1997, and
anticipates operation would commence as early as 1999. If the FERC's
approval arrives by April 1998, an IndeGo Board and Site Procurement
could be expected by July 1998.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
On December 6, 1991, a complaint entitled Nez Perce Tribe, Plaintiff,
vs. Idaho Power Company, Defendant, Civil No. CIV 91-0517-S-EJL, was
filed against the Company in the United States District Court for the
District of Idaho.
On September 11, 1992, the Tribe filed an Amended Complaint in which it
amplified its original Complaint by asserting that Brownlee, Oxbow and
Hells Canyon Dams were "constructed, operated and maintained in such a
manner as to damage plaintiff's rights" to harvest fish, which rights
the Tribe asserts to be "present, possessory property right(s)". As
the basis for its alleged right to recover damages from the Company,
the Tribe asserts that the Company negligently constructed, operated
and maintained Brownlee, Oxbow and Hells Canyon Dams, that the Company
negligently failed to prevent or mitigate harm to the Tribe, that the
Company intentionally and willfully destroyed, interfered with, and
dispossessed the Tribe of its property rights, and that the Company
improperly exercised dominion over the Tribe's property, thus depriving
the Tribe of its possession. The Tribe seeks through its Amended
Complaint to secure actual, incidental, consequential and punitive
damages in amounts to be proven at trial.
On September 18, 1992, the Company filed a motion for summary judgment
in the hope of securing dismissal of the Tribe's action. The District
Court issued an Order of Reference sending the case to a Federal
Magistrate. On July 30, 1993, the Magistrate issued a Report and
Recommendation that the District Judge granted that portion of the
Company's motion for summary judgment regarding the loss of fish.
On November 30, 1993, the District Court entered a Second Order of
Reference, in which the Court sent the case back to the Magistrate for
the Magistrate to make additional findings with respect to the Tribe's
contention that it is entitled to compensation based on physical
exclusion from its usual and accustomed fishing places. On
February 28, 1994, the Magistrate issued a Second Report and
Recommendation wherein it was recommended that the District Court deny
the Company's motion for summary judgment as to the Tribe's claim for
damages arising from precluding the Tribe's access to its usual and
accustomed fishing places and reaffirmed its recommendation in the
original Report and Recommendation dated July 30, 1993, to grant the
Company's motion for summary judgment as to all other claims.
On September 28, 1994, the Federal District Judge issued an Order
rejecting the Second Report and Recommendation of the Magistrate
granting, in its entirety, the Company's motion for summary judgment.
On November 8, 1994, the Tribe filed its Notice of Appeal with the
Ninth Circuit Court of Appeals.
The Company and the Tribe have reached agreement on a settlement of
this case (Settlement Agreement). The Settlement Agreement has been
approved by the Nez Perce Tribal Executive Committee and the Company's
Board of Directors. Under the terms of the Settlement Agreement, the
Company will pay the Nez Perce Tribe $11.5 million in the following
manner:
-$5 million at which time the Tribe would move for the
dismissal of, with prejudice,their legal action against
the Company.
-$1,625,000 each year for the next four years beginning
in 1998.
All payments under the Settlement Agreement will be made in 1996
dollars, which allows for adjusted future inflation within a minimum
range of 3 percent and a maximum of 7 percent. The first payment of
$5.0 million plus inflation adjustment will be paid sometime in 1997.
On July 12, 1996 the IPUC issued Order No 26513, and on August 5, 1996,
the OPUC issued Order No. 96-207 approving capitalization of their
respective jurisdictional share of the $11.5 million. The parties
requested Bureau of Indian Affairs (BIA) approval of the Settlement
Agreement. However, on November 21, 1996, the Portland Area Director
of the BIA issued a decision stating that the Settlement Agreement did
not have to be approved by the BIA. On December 19, 1996, the Company
filed an administrative appeal of the BIA's decision and have since
requested and been granted a stay of said appeal pending pursuit of an
alternate federal approval. As a result of the BIA decision, the Tribe
and the Company explored alternatives to BIA approval that would help
assure the ultimate enforceability of the Settlement Agreement. The
parties agreed to request that the Federal District Court for the
District of Idaho approve the Settlement Agreement. The Tribe and the
Company, by motion, stipulated that the Ninth Circuit Court of Appeals
remand the case to the Federal District Court for the District of
Idaho, which motion was granted by the Ninth Circuit on February 6,
1997. On March 21, 1997, the Federal District Court for the District
of Idaho entered a judgment which incorporated the terms of the
Settlement Agreement. On March 28, 1997, the Company paid the Tribe $5
million plus agreed upon interest.
This matter has been previously reported in Form 10-K dated March 16,
1992, March 12, 1993, March 10, 1994, March 9, 1995, March 14, 1996,
March 13, 1997 and other reports filed with the Commission.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
Exhibit File Number As Exhibit
2 Agreement and plan of exchange,
dated as of February 2, 1998.
*3(a) 33-00440 4(a)(xiii) Restated Articles of Incorporation
of the Company as filed with the
Secretary of State of Idaho on
June 30, 1989.
*3(a)(ii) 33-65720 4(a)(ii) Statement of Resolution Establishing
Terms of Flexible Auction Series A,
Serial Preferred Stock, Without Par
Value (cumulative stated value of
$100,000 per share), as filed with
the Secretary of State of Idaho on
November 5, 1991.
*3(a)(iii(iii) 33-65720 4(a)(iii) Statement of Resolution Establishing
Terms of 7.07% Serial Preferred
Stock, Without Par Value (cumulative
stated value of $100 per share), as
filed with the Secretary of State of
Idaho on June 30, 1993.
*3(b) 33-41166 4(b) Waiver resolution to Restated
Articles of Incorporation adopted by
Shareholders on May 1, 1991.
*3(c) 33-00440 4(a)(xiv) By-laws of the Company amended on
June 30, 1989, and presently in
effect.
*4(a)(i) 2-3413 B-2 Mortgage and Deed of Trust, dated as
of October 1, 1937, between the
Company and Bankers Trust Company
and R. G. Page, as Trustees.
*4(a)(ii) Supplemental Indentures to Mortgage
and Deed of Trust:
Number Dated
1-MD B-2-a First July 1, 1939
2-5395 7-a-3 Second November 15, 1943
2-7237 7-a-4 Third February 1, 1947
2-7502 7-a-5 Fourth May 1, 1948
2-8398 7-a-6 Fifth November 1, 1949
2-8973 7-a-7 Sixth October 1, 1951
2-12941 2-C-8 Seventh January 1, 1957
2-13688 4-J Eighth July 15, 1957
2-13689 4-K Ninth November 15, 1957
2-14245 4-L Tenth April 1, 1958
2-14366 2-L Eleventh October 15, 1958
2-14935 4-N Twelfth May 15, 1959
2-18976 4-O Thirteenth November 15, 1960
2-18977 4-Q Fourteenth November 1, 1961
2-22988 4-B-16 Fifteenth September 15, 1964
2-24578 4-B-17 Sixteenth April 1, 1966
2-25479 4-B-18 Seventeenth October 1, 1966
2-45260 2(c) Eighteenth September 1, 1972
2-49854 2(c) Nineteenth January 15, 1974
2-51722 2(c)(i) Twentieth August 1, 1974
2-51722 2(c)(ii) Twenty-first October 15, 1974
2-57374 2(c) Twenty-second November 15, 1976
2-62035 2(c) Twenty-third August 15, 1978
33-34222 4(d)(iii) Twenty-fourth September 1, 1979
Exhibit File Number As Exhibit
Number Dated
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 16, 1993
1-3198 4 Thirty-fourth December 1, 1993
Form 8-K
Dated 12/17/93
*4(b) Instruments relating to American
Falls bond guarantee. (see Exhibits
10(f) and 10(f)(i)).
*4(c) 33-65720 4(f) Agreement to furnish certain debt
instruments.
*4(d) 33-00440 2(a)(iii) Agreement and Plan of Merger dated
March 10, 1989, between Idaho Power
Company, a Maine Corporation, and
Idaho Power Migrating Corporation.
*4(e) 33-65720 4(e) Rights Agreement dated January 11,
1990, between the Company and First
Chicago Trust Company of New York,
as Rights Agent (The Bank of New
York, successor Rights Agent).
*4(e)(i) 1-3198 Form 4(e)(i) Amendment, dated as of January 30,
10-K for 1997 1998, related to agreement filed as
exhibit 4(e).
*4(f) 1-3198 Form 4(f) Agreement and Plan of Exchange
10-K for 1997 dated as of February 2, 1998
between Idaho Power Company, and
Idaho Power Holding Company.
*10(a) 2-51762 5(a) Agreement, dated April 20, 1973,
between the Company and FMC
Corporation.
*10(a)(i) 2-57374 5(b) Letter Agreement, dated October 22,
1975, relating to agreement filed as
Exhibit 10(a).
*10(a)(ii) 2-62034 5(b)(i) Letter Agreement, dated December 22,
1976, relating to agreement filed as
Exhibit 10(a).
*10(a)(iii)(iii 33-65720 10(a) Letter Agreement, dated December 11,
1981, relating to agreement filed as
Exhibit 10(a).
*10(b) 2-49584 5(b) Agreements, dated September 22,
1969, between the Company and
Pacific Power & Light Company
relating to the operation,
construction and ownership of the
Jim Bridger Project.
*10(b)(i) 2-51762 5(c) Amendment, dated February 1, 1974,
relating to operation agreement
filed as Exhibit 10(b).
*10(c) 2-49584 5(c) Agreement, dated as of October 11,
1973, between the Company and
Pacific Power & Light Company.
*10(d) 2-49584 5(d) Agreement, dated as of October 24,
1973, between the Company and Utah
Power & Light Company.
*10(d)(i) 2-62034 5(f)(i) Amendment, dated January 25, 1978,
relating to agreement filed as
Exhibit 10(d).
*10(e) 33-65720 10(b) Coal Purchase Contract, dated as of
June 19, 1986, among the Company,
Sierra Pacific Power Company and
Black Butte Coal Company.
Exhibit File # As Exhibit
*10(f) 2-57374 5(k) Contract, dated March 31, 1976,
between the United States of America
and American Falls Reservoir
District, and related Exhibits.
*10(f)(i) 33-65720 10(c) Guaranty Agreement, dated March 1,
1990, between the Company and West
One Bank, as Trustee, relating to
$21,425,000 American Falls
Replacement Dam Bonds of the
American Falls Reservoir District,
Idaho.
*10(g) 2-57374 5(m) Agreement, effective April 15, 1975,
between the Company and The
Washington Water Power Company.
*10(h) 2-62034 5(p) Bridger Coal Company Agreement,
dated February 1, 1974, between
Pacific Minerals, Inc., and Idaho
Energy Resources Co.
*10(i) 2-62034 5(q) Coal Sales Agreement, dated February
1, 1974, between Bridger Coal
Company and Pacific Power & Light
Company and the Company.
*10(i)(i) 33-65720 10(d) Second Restated and Amended Coal
Sales Agreement, dated March 7,
1988, among Bridger Coal Company and
PacifiCorp (dba Pacific Power &
Light Company) and the Company.
*10(i)(ii) 1-3198 10(i)(ii) Third Restated and Amended Coal
Sales
Form 10-Q Sales Agreement, dated January 1,
1996, among
for 3/31/96 1996, among Bridger Coal Company and
PacifiCorp (dba Pacific Power &
Light Company) and the Company.
*10(j) 2-62034 5(r) Guaranty Agreement, dated as of
August 30, 1974, with Pacific Power
& Light Company.
*10(k) 2-56513 5(i) Letter Agreement, dated January 23,
1976, between the Company and
Portland General Electric Company.
*10(k)(i) 2-62034 5(s) Agreement for Construction,
Ownership and Operation of the
Number One Boardman Station on Carty
Reservoir, dated as of October 15,
1976, between Portland General
Electric Company and the Company.
*10(k)(ii) 2-62034 5(t) Amendment, dated September 30, 1977,
relating to agreement filed as
Exhibit 10(k).
*10(k)(iii) 2-62034 5(u) Amendment, dated October 31, 1977,
relating to agreement filed as
Exhibit 10(k).
*10(k)(iv) 2-62034 5(v) Amendment, dated January 23, 1978,
relating to agreement filed as
Exhibit 10(k).
*10(k)(v) 2-62034 5(w) Amendment, dated February 15, 1978,
relating to agreement filed as
Exhibit 10(k).
*10(k)(vi) 2-68574 5(x) Amendment, dated September 1, 1979,
relating to agreement filed as
Exhibit 10(k).
*10(l) 2-68574 5(z) Participation Agreement, dated
September 1, 1979, relating to the
sale and leaseback of coal handling
facilities at the Number One
Boardman Station on Carty Reservoir.
Exhibit File # As Exhibit
*10(m) 2-64910 5(y) Agreements for the Operation,
Construction and Ownership of the
North Valmy Power Plant Project,
dated December 12, 1978, between
Sierra Pacific Power Company and the
Company.
*10(n)(i)1 1-3198 10(n)(i) The Revised Security Plans for
Senior
Form 10-K Senior Management Employees and for
Directors-
for 1994 aDirectors-a non-qualified, deferred
compensation plan effective November
30, 1994.
*10(n)(ii)1 1-3198 10(n)(ii) The Executive Annual Incentive Plan
for
Form 10-K for senior management employees
effective
for 1994 effective January 1, 1995.
*10(n)(iii)1 1-3198 10(n)(iii) The 1994 Restricted Stock Plan for
Form 10-K officers and key executives
effective
for 1994 effective July 1, 1994.
*10(n)(iv)1 1-3198 10(n)(iv) The Revised Security Plans for
Senior
Form 10-K Senior Management Employees and for
Directors-for 1996 aDirectors-a non-qualified, deferred
compensation plan effective August
1, 1996.
*10(o) 33-65720 10(f) Residential Purchase and Sale
Agreement, dated August 22, 1981,
among the United Stated of American
Department of Energy acting by and
through the Bonneville Power
Administration, and the Company.
*10(p) 33-65720 10(g) Power Sales Contact, dated
August 25, 1981, including
amendments, among the United States
of America Department of Energy
acting by and through the Bonneville
Power Administration, and the
Company.
*10(q) 33-65720 10(h) Framework Agreement, dated October
1, 1984, between the State of Idaho
and the Company relating to the
Company's Swan Falls and Snake River
water rights.
*10(q)(i) 33-65720 10(h)(i) Agreement, dated October 25, 1984,
between the State of Idaho and the
Company relating to the agreement
filed as Exhibit 10(q).
*10(q)(ii) 33-65720 10(h)(ii) Contract to Implement, dated October
25, 1984, between the State of Idaho
and the Company relating to the
agreement filed as Exhibit 10(q).
*10(r) 33-65720 10(i) Agreement for Supply of Power and
Energy, dated February 10, 1988,
between the Utah Associated
Municipal Power Systems and the
Company.
*10(s) 33-65720 10(j) Agreement Respecting Transmission
Facilities and Services, dated
March 21, 1988 among PC/UP&L Merging
Corp. and the Company including a
Settlement Agreement between
PacifiCorp and the Company.
*10(s)(i) 33-65720 10(j)(i) Restated Transmission Services
Agreement, dated February 6, 1992,
between Idaho Power Company and
PacifiCorp.
1 Compensatory Plan
Exhibit File # As Exhibit
*10(t) 33-65720 10(k) Agreement for Supply of Power and
Energy, dated February 23, 1989,
between Sierra Pacific Power Company
and the Company.
*10(u) 33-65720 10(l) Transmission Services Agreement,
dated May 18, 1989, between the
Company and the Bonneville Power
Administration.
*10(v) 33-65720 10(m) Agreement Regarding the Ownership,
Construction, Operation and
Maintenance of the Milner
Hydroelectric Project (FERC No.
2899), dated January 22, 1990,
between the Company and the Twin
Falls Canal Company and the
Northside Canal Company Limited.
*10(v)(i) 33-65720 10(m)(i) Guaranty Agreement, dated February
10, 1992, between the Company and
New York Life Insurance Company, as
Note Purchaser, relating to
$11,700,000 Guaranteed Notes due
2017 of Milner Dam Inc.
*10(w) 33-65720 10(n) Agreement for the Purchase and Sale
of Power and Energy, dated October
16, 1990, between the Company and
The Montana Power Company.
*10(x) 1-3198 10(x) Agreement for design of substation
Form 10-Q dated October 4, 1995, between the
for 9/30/95 Company and Micron Technology, Inc.
12 Statement Re: Computation of Ratio
of Earnings to Fixed Charges.
12(a) Statement Re: Computation of
Supplemental Ratio of Earnings to
Fixed Charges.
12(b) Statement Re: Computation of Ratio
of Earnings to Combined Fixed
Charges and Preferred Dividend
Requirements.
12(c) Statement Re: Computation of
Supplemental Ratio of Earnings to
Combined Fixed Charges and Preferred
Dividend Requirements.
15 Letter re: unaudited interim
financial information.
27 Financial Data Schedule
(b) Reports on Form 8-K. No reports on Form 8-K were
filed for the three months ended March 31, 1997.1998.
*Previously Filed and Incorporated Herein by Reference
_______________________________
1 Compensatory plan
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this amendmentreport to be signed
on its behalf by the undersigned thereunto duly authorized.
IDAHO POWER COMPANY
(Registrant)
Date May 13, 19971998 By: /s/ J LaMont Keen
J LaMont Keen
Vice President, Chief
Financial Officer and Treasurer
(Principal Financial Officer
and Principal Accounting
Officer)