SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No. )
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Check the appropriate box:
/ / Preliminary Proxy Statement
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/X/ Definitive Proxy Statement
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/ / Soliciting Material Pursuant to Section240.14a-11(c) or
Section240.14a-12
IDACORP, INC. AND IDAHO POWER
COMPANY
- ------------------------------------------------------------
(Name of Registrant as Specified in its Charter)
- ------------------------------------------------------------Filed by the Registrant /X/
Filed by a party other than the Registrant / /
Check the appropriate box:
/ / Preliminary Proxy Statement
/ / Confidential, for Use of the Commission Only (as permitted by Rule
14a-6(e)(2))
/X/ Definitive Proxy Statement
/ / Definitive Additional Materials
/ / Soliciting Material Pursuant to Section 240.14a-12
IDACORP, Inc. and Idaho Power Company
- --------------------------------------------------------------------------------
(Name of Registrant as Specified In Its Charter)
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[ LOGO ] IDACORP [ LOGO ] Idaho Power
NOTICE OF JOINT ANNUAL MEETING OF SHAREHOLDERS
MAY 11, 2000,16, 2002, AT BOISE, IDAHO
March 30, 2000April 8, 2002
TO THE SHAREHOLDERS OF IDACORP, INC. AND IDAHO POWER COMPANY:
Notice is hereby given that the Joint Annual Meeting of Shareholders of IDACORP,
Inc. ("IDACORP") and Idaho Power Company ("Idaho Power") will be held on May 11, 200016,
2002 at 10:00 a.m. local time at the Boise Centre on the Grove, 850Idaho Power Corporate Headquarters
Building, 1221 West FrontIdaho Street, Boise, Idaho, for the following purposes:
1. to elect threefour Directors of IDACORP and Idaho Power for a three year
term;
2. to amend certain Articles of Idaho Power's Restated Articles of Incorporation
to conform with Idaho law and the amended Bylaws of Idaho Power (Idaho Power
shareholders only);
3. to approve the IDACORP 2000 Long-Term Incentive and Compensation Plan
(IDACORP shareholders only);
4. to ratify the selection of Deloitte & Touche LLP as independent
auditor for IDACORP and Idaho Power for the fiscal year ending
December 31, 2000;2002;
3. to act upon a shareholder proposal requesting IDACORP to establish a
written policy on the rights of indigenous peoples; hold ongoing
consultations with Native American Indian Tribes impacted by IDACORP
operations and report to shareholders by August of 2002 regarding
actions taken with respect to indigenous peoples;
4. to act upon a shareholder proposal requesting IDACORP to provide a
report reviewing the relicensing process for the Hells Canyon
Complex and assessing the impact on shareholder value of any capital
spending or limits on operations required to secure a relicense of
the Complex; and
5. to transact such other business that may properly come before the
meeting and any adjournment or adjournments thereof.
All shareholders of record at the close of business on March 22, 2000 are
entitled to notice of the meeting.
Common shareholders of record of IDACORP and Idaho Power and holders of
Idaho Power 4% Preferred Stock and 7.68% Series, Serial Preferred Stock at the
close of business on March 22, 2000,28, 2002, are entitled to vote at the meeting.
All shareholders are cordially invited to attend the Joint Annual Meeting
in person. WHETHER OR NOT YOU PLAN TO ATTEND, PLEASE RETURNVOTE YOUR PROXY PROMPTLY.
It is important that your shares be represented at the meeting. Please mark, sign,
date and return the accompanyingvote your
proxy, regardless of the size of your holdings, as promptly as possible. A self-addressed postage prepaid envelope is enclosed
for you to return the proxy card. Any
shareholder returningvoting a proxy card who attends the meeting may vote in person by
revoking that proxy prior to or at the meeting.
By Order of the Boards of Directors
/s/ Robert W. Stahman
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Robert W. Stahman
Corporate Secretary
TO SHAREHOLDERS WHO RECEIVE MULTIPLE PROXIES
IF YOU OWN IDACORP COMMON STOCK OR IDAHO POWER PREFERRED STOCK OTHER THAN THE
SHARES SHOWN ON THE ENCLOSED PROXY, YOU WILL RECEIVE A PROXY IN A SEPARATE
ENVELOPE FOR EACH SUCH HOLDING. PLEASE EXECUTE AND RETURNVOTE EACH PROXY RECEIVED.
JOINT PROXY STATEMENT
IDACORP, Inc.
Idaho Power Company
1221 West Idaho Street
P. O. Box 70
Boise, Idaho 83707-0070
INTRODUCTION
As a result of the holding company formation on October 1, 1998, IDACORP
holds 100% of the issued and outstanding shares of common stock of Idaho Power
and approximately 92% of the total voting power of Idaho Power. The outstanding
shares of Idaho Power's preferred stock were unchanged by the holding company
formation and continue to be outstanding shares. Holders of voting preferred
stock of Idaho Power hold approximately 8% of Idaho Power's total outstanding
voting power.
GENERAL INFORMATION
This Joint Proxy Statement and the accompanying form of proxy will first
be sent to shareholders on or about March 30, 2000April 8, 2002 and are provided to the
shareholders of IDACORP and Idaho Power in connection with the solicitation of
proxies on behalf of the Boards of Directors of IDACORP and Idaho Power for use
at their Joint Annual Meeting of shareholdersShareholders and any adjournments or
postponements thereof. The Joint Annual Meeting is scheduled to be held on May
11, 2000,16, 2002, at 10:00 a.m., local time, at the Boise Centre on the Grove, 850Idaho Power Corporate Headquarters
Building, 1221 West FrontIdaho Street, Boise, Idaho.
COST AND METHOD OF SOLICITATION
The cost of soliciting proxies will be paid by IDACORP and Idaho Power. In
order to be assured that a quorum of outstanding shares will be represented at
the meeting, proxies may be solicited by officers and regular employees of
IDACORP or Idaho Power, personally or by telephone, telegraph, fax or mail or
other electronic means, without extra compensation. In addition, the
solicitation of proxies from brokers, banks, nominees and institutional
investors will be made by Beacon Hill
Partners,Corporate Investor Communications, Inc., at a cost of
approximately $3,500$4,000 plus out-of-pocket expenses. IDACORP and Idaho Power will
reimburse banks, brokerage firms and other custodians, nominees and fiduciaries
for their expenses in sending proxy materials to beneficial owners.
MATTERS TO BE VOTED UPON
As of March 30, 2000,April 8, 2002, the only known business to be presented at the 20002002
Joint Annual Meeting of shareholders is as follows: Shareholders of IDACORP will
vote on (1) the election of threefour Directors of IDACORP,IDACORP; (2) the approval of the
IDACORP 2000 Long-Term Incentive and Compensation Plan and (3) the ratification of
the appointment of Deloitte & Touche LLP as independent auditors of IDACORP.IDACORP,
Inc.; (3) the shareholder proposal regarding the rights of indigenous peoples;
and (4) the shareholder proposal regarding the relicensing process for the Hells
Canyon Complex. Shareholders of Idaho Power will vote on (1) the election of
threefour Directors of Idaho Power (2) the amendment of Idaho Power's Restated Articles of
Incorporation and (3)(2) the ratification of the appointment of
Deloitte & Touche LLP as independent auditors of Idaho Power. See "Other
Business."
RECORD DATE
The Boards of Directors have fixed March 22, 2000,28, 2002, as the date for the
determination of shareholders of IDACORP and Idaho Power entitled to notice of
and to vote at the meeting. Only shareholders of record at the close of business
on March 22, 200028, 2002 will be entitled to vote at the meeting.
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VOTING SECURITIES
The outstanding voting securities of IDACORP as of the record date for the
meeting are 37,612,35137,729,352 shares of common stock, no par value, each share being
entitled to one vote.
As a result of the holding company formation on October 1, 1998, IDACORP
holds 100% of the issued and outstanding shares of common stock of Idaho Power
and approximately 92% of the total voting power of Idaho Power. The outstanding
shares of Idaho Power's preferred stock were unchanged
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by the holding company formation and continue to be outstanding shares. Holders
of voting preferred stock of Idaho Power hold approximately 8% of Idaho Power's
total outstanding voting power.
The outstanding voting securities of Idaho Power as of the record date for
the meeting are as follows: 37,612,351 shares of common stock, $2.50 par value,
held by IDACORP, each share being entitled to one vote; 157,601142,745 shares of 4%
Preferred Stock, $100 par value, each share being entitled to twenty votes; and
150,000 shares of 7.68% Series, Serial Preferred Stock, $100 par value, each
share being entitled to one vote. The aggregate voting power of outstanding
voting securities for Idaho Power is 40,914,37140,617,251 votes.
VOTING
Shareholders of record may vote their proxies by telephone, through the
Internet or by marking, signing, dating and returning the proxy card in the
enclosed postage-prepaid envelope.
Shareholders whose shares are held by a bank or broker may be able to vote
by telephone or through the Internet. Follow the instructions you receive from
your bank or broker.
Shareholders voting through the Internet should understand that there may
be costs associated with electronic access, such as usage charges from Internet
access providers and telephone companies, that must be paid by the shareholder.
IDACORP and Idaho Power have been advised by counsel that the procedures
for Internet and telephone voting are consistent with the requirements of
applicable law.
Under the Idaho Business Corporation Act, a majority of the votes entitled
to be cast on a matter by a voting group constitutes a quorum of that voting
group for action on that matter. Assuming a quorum of each company is present,
the following votes are required for approval of each proposal at the Joint
Annual Meeting:
(i) Proposal No. 1--directors1 - directors of IDACORP and Idaho Power are
elected by the affirmative vote of a plurality of the votes cast by the shares
entitled to vote in the election of directors for that company. Votes may be
cast in favor or withheld; votes that are withheld will have no effect on the
results.
(ii) Proposal No. 2--the amendment of Idaho Power's Restated Articles of
Incorporation by Idaho Power shareholders requires2 - the affirmative vote of
four-fifths of the Idaho Power shares entitled to vote at the meeting. The
voting group consists of (i) the outstanding common shares of Idaho Power,
all of which are held by IDACORP and will be voted for the amendments and
which constitute in excess of four-fifths of the shares entitled to vote at
the meeting, (ii) the outstanding shares of 4% Preferred Stock and
(iii) the outstanding shares of the 7.68% Series, Serial Preferred Stock,
all voting as one group. An abstention or broker non-vote will have the
effect of a vote against the proposal.
(iii) Proposal No. 3--the approval of the IDACORP 2000 Long-Term
Incentive and Compensation Plan by IDACORP shareholders, for New York Stock
Exchange purposes, requires the affirmative vote of a majority of the
IDACORP votes cast, provided that the total votes cast represent over 50% in
interest of all securities entitled to vote on the Plan. Under the laws of
the State of Idaho, the Plan is approved if the votes cast in favor of the
Plan exceed the votes cast opposing the Plan. Abstentions and broker
non-votes, if any, will have no effect on the results, provided that the
total votes cast represent over 50% in interest of all securities entitled
to vote on the Plan.
(iv) Proposal No. 4--the ratification of the selection of an
independent auditor for IDACORP and Idaho Power is approved where the votes cast
within the voting group in favor exceed the votes cast opposing ratification for
that company.
(iii) Proposal No. 3- the shareholder proposal regarding the rights
of indigenous peoples is approved when the IDACORP votes cast within the voting
group in favor exceed the votes cast against the proposal.
(iv) Proposal No. 4 - the shareholder proposal regarding the
relicensing process for the Hells Canyon Complex is approved when the IDACORP
votes cast within the voting group in favor exceed the votes cast against the
proposal.
Abstentions and broker non-votes, if any, will have no effect on the
results with respect to Proposals 2, 3 and 4.
If no direction is given by a shareholder, proxies received will be voted
FOR Proposal No. 1, election of management's nominees for Directors, FOR
Proposal No. 2, amendment of the Idaho Power Restated Articles of Incorporation
(Idaho Power shareholders only), FOR Proposal No. 3, approval of the IDACORP
2000 Long-Term Incentive and Compensation Plan (IDACORP shareholders only), and
FOR Proposal No. 4, ratification of the selection of Deloitte & Touche LLP as
independent auditor for the fiscal year 2000.2002; AGAINST Proposal No. 3, the
shareholder
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proposal regarding the rights of indigenous peoples (IDACORP shareholders only);
and AGAINST Proposal No. 4, the shareholder proposal regarding the relicensing
process for the Hells Canyon Complex (IDACORP shareholders only).
A proxy may be revoked at any time before it is voted at the meeting. Any
shareholder who attends the meeting and wishes to vote in person may revoke his
or her proxy by oral notice at that time. Otherwise, revocation of a proxy must
be mailed to the Secretary of IDACORP or Idaho Power at 1221 West Idaho Street,
Boise, Idaho 83702-5627, and received prior to the meeting.
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SECRET BALLOT
It is the policy of IDACORP and Idaho Power that all proxy cards and ballotsproxies for the Joint
Annual Meeting that identify shareholders, including employees, are to be kept
secret, and no such document shall be available for examination nor shall the
identity and vote of any shareholder be disclosed to IDACORP or Idaho Power
representatives or to any third party. Proxy cardsProxies shall be returned
in envelopes addressed to the
independent tabulator who receives, inspects and tabulates the proxies.
Individual voted proxies and ballots are not seen by nor reported to IDACORP or
Idaho Power except (i) as necessary to meet applicable legal requirements, (ii)
to allow the independent election inspectors to certify the results of the
shareholder vote, (iii) in the event of a matter of significance where there is
a proxy solicitation in opposition to the Board of Directors, based upon an
opposition proxy statement filed with the Securities and Exchange Commission, or
(iv) to respond to shareholders who have written comments on their proxies.
1. ELECTION OF DIRECTORS
IDACORP's and Idaho Power's Boards of Directors each consist of the same
11 members. IDACORP's Articles of Incorporation, as amended, and Idaho Power's
Restated Articles of Incorporation, as amended, provide that Directors be
elected for three-year terms with approximately one-third of the Board of
Directors to be elected at each annual meeting of shareholders. The threefour
Directors standing for election for the IDACORP and Idaho Power Boards of
Directors at the 20002002 Joint Annual Meeting are identified below as nominees for
election with terms to expire in the year 2003.2005. All nominees are currently
Directors of IDACORP and Idaho Power. Peter T. Johnson has reached age 70, the
mandatory retirement age under the Idaho Power charter, and retired from the
Boards February 3, 2002. Mr. Johnson has served as director since 1993. The
Board thanks Mr. Johnson for his 9 years of distinguished service to IDACORP and
Idaho Power.
Unless otherwise instructed, proxies received will be voted in favor of
the election of the Director nominees of the appropriate company. While it is
not expected that any of the nominees will be unable to qualify for or accept
office, if for any reason one or more shall be unable to do so, the proxies will
be voted for nominees selected by the appropriate Board of Directors.
EACH BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE "FOR" ITS NOMINEES
LISTED BELOW.
IDACORP AND IDAHO POWER
NOMINEES FOR ELECTION
TERMS EXPIRE 2003
PETER T. JOHNSON
Private Investor; former Administrator of the Bonneville Power
Administration (1981-1986); director of Standard Insurance Company; director and
Chairman of the Board of Ida-West Energy Company; director of Idaho Power since
1993 and IDACORP since 1998.
Age 67
PETER S. O'NEILL
President, O'Neill Enterprises Inc. (since 1990); director of Building
Materials Holding Corporation; director of IDACORP Financial Services, Inc.;
director of Idaho Power since 1995 and IDACORP since 1998.
Age 63
JAN B. PACKWOOD
President and Chief Executive Officer of Idaho Power and IDACORP (since
1999); formerly President and Chief Operating Officer (1997-1999); Executive
Vice President (1996-1997) and Vice President--Bulk Power (1989-1996) of Idaho
Power; director and President of Idaho Energy Resources
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Company; director of IDACORP Financial Services, Inc.; director of Ida-West
Energy Company; director of IDACORP Services Co.; director of IDACORP
Technologies, Inc; director of Idaho Power since 1997 and IDACORP since 1998.
Age 56
IDACORP AND IDAHO POWER NOMINEES FOR ELECTION - TERMS EXPIRE 2005
ROGER L. BREEZLEY . . . . . . . Private Investor; formerly a director (1983-1995),
Chairman of the Board (1987-1994) and Chief Executive
Officer (1987-1993) of U.S. Bancorp; director of
IDACORP Technologies, Inc.; director of Idaho Power
since 1993 and IDACORP since 1998. Age 64
JOHN B. CARLEY. . . . . . . . . Former President (1984-1996) and Chief Operating
Officer (1990-1996) of Albertson's, Inc.; director of
IDACORP Technologies, Inc.; director of Idaho Power
since 1990 and IDACORP since 1998. Age 68
JACK K. LEMLEY. . . . . . . . . Director of Lemley & Associates, Inc. (since 1987),
formerly Chairman of the Board and Chief Executive
Officer and a director of American Ecology Corp.
(1995-2001); director of IDACORP Technologies, Inc.;
director of Idaho Power since 1995 and IDACORP since
1998. Age 67
EVELYN LOVELESS . . . . . . . . Chief Executive Officer (since 1992) and a director of
Global, Inc.; director of Farmers & Merchants Bank
(since 1999); formerly President of Global, Inc.
(1989-1992); director of Idaho Power since 1987 and
IDACORP since 1998. Age 68
IDACORP AND IDAHO POWER CONTINUING DIRECTORS - TERMS EXPIRE 2004
ROTCHFORD L. BARKER . . . . . . Director, American Ecology Corporation (since 1996),
Member and former director Chicago Board of Trade;
director of Idaho Power and IDACORP since 1999. Age 65
JON H. MILLER . . . . . . . . . Chairman of the Board of IDACORP and Idaho Power since
1999; Private Investor; formerly President and Chief
Operating Officer (1978-1990) and a director
(1977-1990) of Boise Cascade Corporation; director of
Fibermark Corporation; director of Ida-West Energy
Company; director of Idaho Power since 1988 and IDACORP
since 1998. Age 64
ROBERT A. TINSTMAN. . . . . . . Former President and Chief Executive Officer
(1995-1999) and director (1995-1999) of Morrison
Knudsen Corporation; director of Home Federal Savings &
Loan (since 1999); former Chairman of Contractorhub.com
(2000-2001); director of IDACORP Technologies, Inc.;
director of Idaho Power and IDACORP since 1999. Age 55
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IDACORP AND IDAHO POWER CONTINUING DIRECTORSDIRECTORS- TERMS EXPIRE 2002
ROGER L. BREEZLEY
Private Investor; formerly a director (1983-1995), Chairman of the Board
(1987-1994) and Chief Executive Officer (1987-1993) of U.S. Bancorp; Chairman of
the Board and director of Applied Power Corporation; President and director of
IDACORP Technologies, Inc.; director of Idaho Power since 1993 and IDACORP since
1998.
Age 61
JOHN B. CARLEY
Director of Albertsons, Inc; formerly Chairman of the Executive Committee of
the Board of Directors (1998- 1999), President (1984-1996) and Chief Operating
Officer (1990-1996) of Albertsons, Inc.; director of Boise Cascade Office
Products Co.; director of Idaho Power since 1990 and IDACORP since 1998.
Age 66
JACK K. LEMLEY
Director of Lemley & Associates, Inc. (since 1987), director and Chairman of
the Board and Chief Executive Officer of American Ecology Corp. (Since 1995);
director of Applied Power Corporation; director of IDACORP Technologies, Inc.;
director of Idaho Power since 1995 and IDACORP since 1998.
Age 65
EVELYN LOVELESS
Chief Executive Officer (since 1992) and a director of Global, Inc.;
director of Farmers & Merchants Bank (since 1999); formerly President of
Global, Inc. (1989-1992); director of Idaho Power since 1987 and IDACORP since
1998.
Age 66
IDACORP AND IDAHO POWER
CONTINUING DIRECTORS
TERMS EXPIRE 2001
ROTCHFORD L. BARKER
Director, American Ecology Corporation (since 1996), Member and former
director Chicago Board of Trade; director of Idaho Power and IDACORP since 1999.
Age 63
ROBERT D. BOLINDER
President of Robert D. Bolinder Associates; director of Hannaford Bros.
Co. Inc.; director and Executive Vice President--Corporate Development and
Planning of Smith's Food & Drug Centers, Inc. (1988-1996). director of Idaho
Power since 1980 and IDACORP since 1998.
Age 68
42003
CHRISTOPHER L. CULP, Ph.D . . . Managing Director of C.P. Risk Management L.L.C. and
Adjunct Professor of Finance, Graduate School of
Business at the University of Chicago; director of
IDACORP and Idaho Power since 2002. Age 33
GARY G. MICHAEL . . . . . . . . Former Chairman of the Board and Chief Executive Officer
(1991-2001) Albertson's, Inc.; director of The Clorox
Company (since 2001), Boise Cascade Corporation (since
1997), Harrah's Entertainment, Inc. (since 2001) and
Questar, Inc. (since 1994); director of IDACORP and
Idaho Power since 2001. Age 62
PETER S. O'NEILL. . . . . . . . Chairman and CEO, O'Neill Enterprises L.L.C. (since
1990); director of Building Materials Holding
Corporation (since 1993); director of IDACORP Financial
Services, Inc. (since 1999); director of Idaho Power
since 1995 and IDACORP since 1998. Age 65
JAN B. PACKWOOD . . . . . . . . President and Chief Executive Officer of IDACORP (since
1999) and Chief Executive Officer of Idaho Power (since
2002); formerly President and Chief Executive Officer
(1999-2002); President and Chief Operating Officer
(1997-1999); Executive Vice President (1996-1997) and
Vice President - Bulk Power (1989-1996) of Idaho
Power; director and President of Idaho Energy Resources
Company; director of IDACORP Financial Services, Inc.;
director of Ida-West Energy Company; director of IDACORP
Services Co.; director of IDACORP Technologies, Inc;
director of Velocitus; director of Idaho Power since
1997 and IDACORP since 1998. Age 59
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JON H. MILLER
Chairman of the Board of IDACORP and Idaho Power since 1999; Private
Investor; formerly President and Chief Operating Officer (1978-1990) and a
director (1977-1990) of Boise Cascade Corporation; director of Fibermark
Corporation; director of Ida-West Energy Company; director of Idaho Power since
1988 and IDACORP since 1998.
Age 62
ROBERT A. TINSTMAN
Former President and Chief Executive Officer (1995-1999) and director
(1995-1999) of Morrison Knudsen Corporation; director of Home Federal Savings &
Loan; Chairman of Contractorhub.com; director of Idaho Power and IDACORP since
1999.
Age 53
MEETINGS OF THE BOARDS AND COMMITTEES
The IDACORP and Idaho Power BoardBoards of Directors held six meetings in 1999.2001.
The average attendance during 19992001 at all meetings of the Boards and all
meetings of the committees of the Boards was 95 percent. Mr. CarleyBreezley was ill
during a portion of the 2001 calendar year and as a result attended fewer than
75 percent of all regular and applicable committee meetings in 1999.2001.
The Committees of each of IDACORP and Idaho Power are the Executive
Committee, the Audit Committee, the Compensation Committee and the Investment
Committee. The members of the Committees are the same individuals for both
IDACORP and Idaho Power. In 1999, IDACORP hadhas one committee which Idaho Power does not
have--thehave-the Committee of Outside Directors. Board committees, their membership
during 19992001 and a brief statement of their principal responsibilities are
presented below.
EXECUTIVE COMMITTEE
The Executive Committees act on behalf of the Boards of Directors of
IDACORP and Idaho Power, as applicable, when the respective Boards are not in
session, except on those matters which require action of the full Boards.
Members of the Committee are Jan B. Packwood (Chairman), Robert D. Bolinder
(retired from the Board following the March meeting upon reaching age 70), John
B. Carley, Jack K. Lemley, and Jon H. Miller.Miller and Robert A. Tinstman (who replaced
Mr. Bolinder). During 1999,2001, the IDACORP Executive Committee did not
meet.met two times and
the Idaho Power Executive Committee met two times.
AUDIT COMMITTEE
The Audit Committees of IDACORP and Idaho Power assist the Boards of
Directors in fulfilling oversight responsibilities by reviewing the financial
information which will be provided to the shareholders and others, the systems
of internal controls which management and the Boards have established, the audit
process and services provided by the independent auditors, the plans and
activities of the Internal Audit Department and the conducting of business under
the Business Conduct Guide. Members of the Committee are Jack K. Lemley
(Chairman), Rotchford L. Barker, Robert D. Bolinder (until his retirement from
the Board), Gary G. Michael (who replaced Mr. Bolinder) and Peter T. Johnson.Johnson
(retired in February 2002). During 1999,2001, the IDACORP and Idaho Power Audit
Committee met fourfive times.
COMPENSATION COMMITTEE
The Compensation Committees of IDACORP and Idaho Power assist the Boards
of Directors in discharging duties and responsibilities regarding management of
the total compensation philosophy, total compensation programs for executives,
senior managers and employees, and all other compensation-related matters which
properly come before the Boards of Directors. Members of the Committee are John
B. Carley (Chairman), Peter T. Johnson (retired in February 2002), Evelyn
Loveless and Peter S. O'Neill. During 1999,2001, the IDACORP and Idaho Power
Compensation Committee met threefour times.
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INVESTMENT COMMITTEE
The Investment Committees of IDACORP and Idaho Power assist the Boards of
Directors in fulfilling oversight responsibilities to participants and
beneficiaries under the Retirement Plan and to shareholders by reviewing Plan
design, formulating investment philosophies and establishing investment
policies, establishing performance measurement objectives and benchmarks,
monitoring the performance of investment managers, trustees, independent
consultants and consulting actuaries to the
7
Plan, reviewing sufficiency of Plan assets to cover liabilities and reviewing
compliance with all applicable laws and regulations pertaining to the Plan.
Members of the Committee are Robert D. Bolinder (Chairman) (until his retirement
from the Board), Roger L. Breezley, Jon H. Miller, Jan B. Packwood and Robert A.
Tinstman.Tinstman (Chairman) (who replaced Mr. Bolinder). During 1999,2001, the IDACORP and
Idaho Power Investment Committee met twothree times.
COMMITTEE OF OUTSIDE DIRECTORS
In September of 1998, the IDACORP Board formed a Committee of Outside
Directors. The primary function of the Committee of Outside Directors is to
review and evaluate the performance of the Chief Executive Officer and to
establish individual and corporate goals and strategies relating to the Chief
Executive Officer. It also acts as a nominating committee to review and make
recommendations to the Board of Directors for Director candidates to fill Board
vacancies and considers shareholder nominees for the Board of Directors for whom
timely written resumes are received no earlier than 90 days, and no later than
60 days, prior to the annual meeting. Members of the Committee are all members
of the IDACORP Board of Directors who are not officers or employees or former
officers of IDACORP or one of its subsidiaries. Members of the Committee are
Rotchford L. Barker, Robert D. Bolinder (until his retirement from the Board),
Roger L. Breezley, John B. Carley, Gary G. Michael (Mr. Michael replaced Mr.
Bolinder), Peter T. Johnson, Jack K. Lemley, Evelyn Loveless, Jon H. Miller,
Peter S. O'Neill and Robert A. Tinstman. During 1999,2001, the Committee of Outside
Directors met six times.
TRANSACTIONS WITH MANAGEMENT
See COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION for
additional information regarding Mr. O'Neill.
2. AMENDMENT OF IDAHO POWER
RESTATED ARTICLES OF INCORPORATION
The Board of Directors of Idaho Power Company unanimously recommends that
the shareholders of Idaho Power Company approve certain amendments to the
Company's Restated Articles of Incorporation, as amended (the "Charter"). These
changes will conform certain provisions in the Charter to the laws of the State
of Idaho and to the amended Bylaws of Idaho Power. The Board of Directors
unanimously approved the Charter amendments at its meeting on January 20, 2000,
subject to approval by the shareholders. Approval of the Charter amendments will
also constitute approval of the Bylaw amendments to the extent required by Idaho
law.
The Charter amendments are as follows (additions are underlined and
deletions are in brackets):
ARTICLE 4. DIRECTORS. (a) The number of directors constituting the
Board of Directors of the Corporation shall be fixed from time to time
exclusively by the Board of Directors pursuant to a resolution adopted by
affirmative vote of [two-thirds of the Continuing Directors (as defined in
Article 8 of the Restated Articles of Incorporation)] A MAJORITY OF THE
DIRECTORS, but the number of directors shall be no less than 9 and no
greater than 15. The number of directors may be increased or decreased,
beyond the limits set forth above, only by an amendment to the Restated
Articles of Incorporation of the Corporation pursuant to Article 10 of the
Restated Articles of Incorporation of the Corporation.
6
The Board of Directors shall be divided into three classes as nearly
equal in number as may be. The initial term of office of each director in
the first class shall expire at the annual meeting of shareholders in 1990;
the initial term of office of each director in the second class shall expire
at the annual meeting of shareholders in 1991; and the initial term of
office of each director in the third class shall expire at the annual
meeting of shareholders in 1992. At each annual election commencing at the
annual meeting of shareholders in 1990, the successors to the class of
directors whose term expires at that time shall be elected to hold office
for a term of three years to succeed those whose term expires, so that the
term of one class of directors shall expire each year. Each director shall
hold office for the term for which he is elected or appointed and until his
successor shall be elected and qualified or until his death, or until he
shall resign or be removed; provided, however, that no person who will be
seventy (70) years of age or more on or before the annual meeting shall be
nominated to the Board of Directors, and any directors who reach the age of
seventy (70) shall be automatically retired from the Board.
In the event of any increase or decrease in the authorized number of
directors, (i) each director then serving as such shall nevertheless
continue as a director of the class of which he is a member until the
expiration of his current term, or his earlier resignation, removal from
office or death, (ii) the newly created or eliminated directorships
resulting from such increase or decrease shall be apportioned by the Board
of Directors among the three classes of directors so as to maintain such
classes as nearly equal in number as may be.
(b) Newly created directorships resulting from any increase in the
authorized number of directors or any vacancies in the Board of Directors
resulting from death, resignation, retirement, disqualification, removal
from office or other cause shall be filled by a two-thirds vote of the
directors then in office, or a sole remaining director, although less than a
quorum. DIRECTORS CHOSEN TO FILL VACANCIES RESULTING FROM AN INCREASE IN THE
AUTHORIZED NUMBER OF DIRECTORS SHALL HOLD OFFICE UNTIL THE NEXT ELECTION OF
DIRECTORS BY THE SHAREHOLDERS; [and] directors [so] chosen TO FILL OTHER
VACANCIES shall hold office for a term expiring at the annual meeting of
shareholders at which the term of the class to which they have been elected
expires. If one or more directors shall resign from the Board effective as
of a future date, such vacancy or vacancies shall be filled pursuant to the
provisions hereof, and such new directorship(s) shall become effective when
such resignation or resignations shall become effective, and each director
so chosen shall hold office as herein provided in the filling of other
vacancies.
THE REMAINING SECTIONS OF ARTICLE 4 ARE UNCHANGED.
ARTICLE 9. SPECIAL MEETINGS OF SHAREHOLDERS. Special meetings of
shareholders of the Corporation may be called only by the Chairman of the
Board of Directors, the President, a majority of the Board of Directors, or
the holders of not less than [four-fifths of the shares entitled to vote at
the meeting] TWENTY PERCENT (20%) OF ALL THE SHARES ENTITLED TO VOTE ON ANY
ISSUE PROPOSED TO BE CONSIDERED AT THE PROPOSED SPECIAL MEETING.
ARTICLE 10. AMENDMENTS. Notwithstanding anything to the contrary
contained in these Restated Articles of Incorporation or the By-laws of the
Corporation (and notwithstanding the fact that a lesser percentage may be
specified by law, these Restated Articles of Incorporation or the By-laws of
the Corporation), the affirmative vote of the holders of at least
four-fifths of the voting power of the then outstanding Voting Stock shall
be required to amend, alter, change or repeal, or to adopt any provision
inconsistent with, ARTICLES 4, 8, 9 and 10 of these Restated Articles of
Incorporation, provided that such four-fifths vote shall not be required for
any amendment, alteration, change or repeal recommended to the shareholders
by two-thirds of the Continuing Directors, as defined in ARTICLE 8.
7
THE SHAREHOLDERS MAY ADOPT OR AMEND A BY-LAW THAT FIXES A GREATER QUORUM
OR VOTING REQUIREMENT FOR SHAREHOLDERS, OR VOTING GROUPS OF SHAREHOLDERS,
THAN IS REQUIRED BY THE IDAHO BUSINESS CORPORATION ACT.
ARTICLE 11. AMENDMENT OF BY-LAWS. The Corporation's By-laws may be
amended or repealed or new by-laws may be made: (a) by the affirmative vote
of the holders of record of a majority of the outstanding capital stock of
the Corporation entitled to vote thereon, irrespective of class, given at
any annual or special meeting of the shareholders EXCEPT THAT AMENDMENTS TO
OR REPEAL OF SECTION 7.3, SECTION 2.9 OR ARTICLE III OF THE BY-LAWS BY THE
SHAREHOLDERS SHALL REQUIRE THE AFFIRMATIVE VOTE OF TWO-THIRDS OF ALL SHARES
ENTITLED TO VOTE THEREON; provided that notice of the proposed amendment,
repeal or new by-law or by-laws be included in the notice of such meeting or
waiver thereof; or (b) by the affirmative vote of a majority of the entire
Board of Directors given at any regular meeting of the Board, or any special
meeting thereof.
ARTICLE 12. INDEMNIFICATION AND LIMITATION OR ELIMINATION OF DIRECTOR
LIABILITY. CAPITALIZED TERMS USED IN THIS ARTICLE 12 THAT ARE DEFINED IN
SECTION 30-1-850 OF THE IDAHO BUSINESS CORPORATION ACT SHALL HAVE THE
MEANING GIVEN TO SUCH TERMS UNDER SECTION 30-1-850 OF THE ACT. THE
CORPORATION SHALL INDEMNIFY ITS DIRECTORS AND OFFICERS AGAINST LIABILITY AND
EXPENSES AND SHALL ADVANCE EXPENSES TO ITS DIRECTORS AND OFFICERS IN
CONNECTION WITH ANY PROCEEDING TO THE FULLEST EXTENT PERMITTED BY THE ACT,
AS NOW IN EFFECT OR AS IT MAY BE AMENDED OR SUBSTITUTED FROM TIME TO TIME.
No Director of the Corporation shall be personally liable to the
Corporation or its shareholders for monetary damages for breach of fiduciary
duty as a Director; provided that this Article shall not limit or eliminate
the liability of a Director for any act or omission for which such
limitation or elimination of liability is not permitted under the Idaho
Business Corporation Act. No amendment to the Idaho Business Corporation Act
that further limits or eliminates the acts or omissions for which limitation
or elimination of liability is permitted shall affect the liability of a
Director for any act or omission which occurs prior to the effective date of
such amendment.
REASONS FOR THE AMENDMENTS
The Idaho Power Company Bylaws were amended by the Board of Directors in
September of 1999 to follow the same format as that of the IDACORP Bylaws. Some
of the provisions contained in the amended Idaho Power Bylaws require that
comparable changes be made in the Idaho Power Charter.
The amendment to Article 4(a) changes the vote requirement to fix the exact
number of directors, so that the exact number of directors is determined by a
majority vote of the Board, rather than a two-thirds vote of the Continuing
Directors (as defined in the Charter). A majority vote of the Board is a
standard voting requirement under Idaho law, rather than the higher two-thirds
vote. This amendment will conform the Charter to the amended Idaho Power Bylaws.
Article 4(b) has been amended to conform to the amended Idaho Power Bylaws
and also to comply with the laws of the State of Idaho, which provide that
directors elected to fill vacancies resulting from an increase in the authorized
number of directors serve until the next election of directors by shareholders,
whereas directors who fill other vacancies serve the rest of the term of their
class.
Article 9 has been amended so that a special meeting may be called by
shareholders holding not less than 20% of the voting shares, rather than
four-fifths as provided in the existing Charter. The 20% threshold complies with
the laws of the State of Idaho and conforms to the amended Idaho Power Bylaws.
Article 10 adds language permitting the shareholders to provide for higher
quorum or voting requirements than required by Idaho corporate law. Idaho
corporate law requires this provision to be in the charter to the extent a
company wishes to avail itself of this provision.
8
The basic provisions of Article 11 for Bylaw amendments remain the same--a
majority vote of the Board or a majority vote of all shares entitled to vote.
However, Section 7.3 of the Bylaws provide for a two-thirds shareholder vote,
rather than a majority vote, to amend certain provisions in the Bylaws. The
provisions requiring a higher shareholder vote are amendments to Section 7.3,
Section 2.9 (provisions for transacting business at shareholder meetings) and
Article III (provisions relating to the Board of Directors). This would make it
more difficult for shareholders to amend these sections of the Bylaws.
Article 14 adds to the Charter the indemnification provisions, as permitted
by Idaho law, that were removed from the Bylaws.
THE IDAHO POWER COMPANY BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT IDAHO
POWER SHAREHOLDERS VOTE "FOR" THIS PROPOSAL.
Under Section 30-1-727 of the Idaho Business Corporation Act, the Charter
amendments must be approved by four-fifths of the shares entitled to vote at the
meeting. The voting group consists of (i) the outstanding common shares of Idaho
Power, all of which are held by IDACORP and will be voted for the amendments and
which constitute in excess of four-fifths of the shares entitled to vote at the
meeting, (ii) the outstanding shares of 4% Preferred Stock and (iii) the
outstanding shares of the 7.68% Series, Serial Preferred Stock, all voting as
one group. An abstention or broker non-vote will have the effect of a vote
against the proposal. If a choice has been specified by a shareholder by means
of the proxy, the shares of stock will be voted accordingly. If no choice has
been specified, the shares will be voted "FOR" the proposal.
3. IDACORP
2000 LONG-TERM INCENTIVE
AND COMPENSATION PLAN
At its meeting on January 20, 1999, the Board of Directors adopted the
IDACORP 2000 Long-Term Incentive and Compensation Plan (the "Plan"), which will
become effective on the date of approval by the shareholders.
The IDACORP Board of Directors believes that the Plan will help attract and
retain qualified persons to serve as officers, key employees and directors of
IDACORP and its subsidiaries, increase the equity interests of executives and
directors in IDACORP and strengthen the common interest of executives,
directors, shareholders and customers.
The complete text of the Plan is set forth as Exhibit "A" hereto. The
following is a summary of the material features of the Plan and is qualified in
its entirety by reference to Exhibit "A".
PURPOSE OF THE PLAN
The purpose of the Plan is to promote the success and enhance the value of
IDACORP by linking the personal interests of officers, key employees and
directors to those of IDACORP's shareholders and customers. The Plan is further
intended to assist IDACORP in its ability to motivate, attract and retain the
services of participants upon whose judgment, interest and special effort the
successful conduct of its operations is largely dependent.
EFFECTIVE DATE AND DURATION
The Plan will become effective upon approval by shareholders, and shall
remain in effect, subject to the right of the Board of Directors to terminate
the Plan at any time, until all shares subject to the Plan shall have been
purchased or acquired.
9
AMENDMENTS
The Board may, at any time and from time to time, alter, amend, suspend or
terminate the Plan in whole or in part, subject to certain restrictions as
stated in the Plan.
ADMINISTRATION OF THE PLAN
The Plan will be administered by the Compensation Committee or such other
committee as the Board of Directors shall select consisting solely of two or
more members of the Board of Directors (the "Committee"). The Committee has full
power under the Plan to determine persons to receive awards, the type of awards
and the terms thereof. The Committee may amend outstanding awards, subject to
certain restrictions as stated in the Plan.
SHARES SUBJECT TO THE PLAN
The Plan authorizes the grant of up to 750,000 shares of IDACORP, Inc.
common stock. Shares underlying awards that lapse or are forfeited or are not
paid in shares may be reused for subsequent awards. Shares may be authorized but
unissued shares of common stock, treasury stock or shares purchased on the open
market. The market value of a share of Company common stock as of January 31,
2000 was $33.56.
If any corporate transaction occurs that causes a change in the common stock
or corporate structure of the Company affecting the common stock, the Committee
shall make such adjustments to the number and/or class of shares of stock that
may be delivered under the Plan and the number and class and/or price of shares
of common stock subject to outstanding awards under the Plan, as it deems
appropriate and equitable to prevent dilution or enlargement of participants'
rights. The Committee may not amend an outstanding option for the sole purpose
of reducing the exercise price thereof.
ELIGIBILITY AND PARTICIPATION
Persons eligible to participate in the Plan include all officers, directors
and key employees of the Company and its subsidiaries, as determined by the
Committee. It is anticipated that the approximate number of persons who will be
eligible initially to participate under the Plan will be 40, which includes 10
non-employee directors.
GRANTS UNDER THE PLAN
SECTION 162(M). Stock options, SARs and performance unit/performance share
awards are intended to qualify for deductibility under Section 162(m) of the
Internal Revenue Code of 1986, as amended (the "Code"). Dividend equivalents,
restricted stock, restricted stock units and other awards may qualify for
deductibility.
The total number of shares with respect to which options or SARs may be
granted in any calendar year to any covered employee under Section 162(m) of the
Code shall not exceed 100,000 shares; (ii) the total number of shares of
restricted stock or restricted stock units that are intended to qualify for
deduction that may be granted in any calendar year to any covered employee shall
not exceed 100,000 shares or units, as the case may be; (iii) the total number
of performance shares or performance units that may be granted in any calendar
year to any covered employee shall not exceed 100,000 shares or units, as the
case may be; (iv) the total number of shares that are intended to qualify for
deduction granted pursuant to Article 10 of the Plan in any calendar year to any
covered employee shall not exceed 100,000 shares; (v) the total cash award that
is intended to qualify for deduction that may be paid pursuant to Article 10 of
the Plan in any calendar year to any covered employee shall not exceed $300,000;
and (vi) the aggregate number of dividend equivalents that are intended to
qualify for deduction that a covered employee may receive in any calendar year
shall not exceed 400,000. A covered employee means those
10
persons specified in Section 162(m) of the Code--generally the chief executive
officer and the next four most highly-compensated employees.
STOCK OPTIONS. The Committee may grant incentive stock options ("ISOs") and
nonqualified stock options ("NQSOs"). Options shall be exercisable for such
prices, shall expire at such times and shall have such other terms and
conditions as the Committee may determine at the time of grant and as set forth
in the award agreement. Dividend equivalents may also be granted.
The option exercise price is payable in cash, in shares of common stock of
IDACORP having a fair market value equal to the exercise price, by cashless
exercise or any combination of the foregoing.
STOCK APPRECIATION RIGHTS. The Committee may grant SARs with such terms and
conditions as the Committee may determine at the time of grant and as set forth
in the award agreement. SARs granted under the Plan may be in the form of
freestanding SARs or tandem SARs. The base value of a freestanding SAR shall be
equal to the average of the high and low sale prices of a share of IDACORP
common stock on the date of grant. The base value of a tandem SAR shall be equal
to the option exercise price of the related option.
Freestanding SARs may be exercised upon such terms and conditions as are
imposed by the Committee and as set forth in the SAR award agreement. A tandem
SAR may be exercised only with respect to the shares of common stock of IDACORP
for which its related option is exercisable.
Upon exercise of an SAR, a participant will receive the product of the
excess of the fair market value of a share of IDACORP common stock on the date
of exercise over the base value multiplied by the number of shares with respect
to which the SAR is exercised. Payment due to the participant upon exercise may
be made in cash, in shares of IDACORP common stock having a fair market value
equal to such cash amount, or in a combination of cash and shares, as determined
by the Committee at the time of grant and as set forth in the award agreement.
RESTRICTED STOCK AND RESTRICTED STOCK UNITS. Restricted stock and
restricted stock units may be granted in such amounts and subject to such terms
and conditions as determined by the Committee at the time of grant and as set
forth in the award agreement. The Committee may establish performance goals, as
described below, for restricted stock and restricted stock units.
Participants holding restricted stock may exercise full voting rights with
respect to those shares during the restricted period and, subject to the
Committee's right to determine otherwise at the time of grant, will receive
regular cash dividends. All other distributions paid with respect to the
restricted stock shall be credited subject to the same restrictions on
transferability and forfeitability as the shares of restricted stock with
respect to which they were paid.
PERFORMANCE UNITS AND PERFORMANCE SHARES. Performance units and performance
shares may be granted in such amounts and subject to such terms and conditions
as determined by the Committee at time of grant and as set forth in the award
agreement. The Committee shall set performance goals, which, depending on the
extent to which they are met during the performance periods established by the
Committee, will determine the number and/or value of performance units/shares
that will be paid out to participants.
Participants shall receive payment of the value of performance units/shares
earned after the end of the performance period. Payment of performance
units/shares shall be made in cash and/or shares of common stock which have an
aggregate fair market value equal to the value of the earned performance
units/shares at the end of the applicable performance period, in such
combination as the Committee determines. Shares may be granted subject to any
restrictions deemed appropriate by the Committee.
OTHER AWARDS. The Committee may make other awards which may include,
without limitation, the grant of shares of common stock based upon attainment of
performance goals established by the
11
Committee as described below, the payment of shares in lieu of cash or cash
based on performance goals and the payment of shares in lieu of cash under other
IDACORP incentive or bonus programs.
TAXES. Share withholding for taxes is permitted.
PERFORMANCE GOALS. Performance goals, which are established by the
Committee, shall be based on one or more of the following measures: sales or
revenues, earnings per share, shareholder return and/or value, funds from
operations, operating income, gross income, net income, cash flow, return on
equity, return on capital, earnings before interest, operating ratios, stock
price, customer satisfaction, accomplishment of mergers, acquisitions,
dispositions or similar extraordinary business transactions, profit returns and
margins, financial return ratios and/or market performance. Performance goals
may be measured solely on a corporate, subsidiary or business unit basis, or a
combination thereof. Performance goals may reflect absolute entity performance
or a relative comparison of entity performance to the performance of a peer
group of entities or other external measure.
TERMINATION OF EMPLOYMENT OR BOARD SERVICE
Each award agreement shall set forth the participant's rights with respect
to each award following termination of employment with or service on the Board
of Directors of IDACORP.
TRANSFERABILITY
Except as otherwise determined by the Committee at the time of grant and
subject to the provisions of the Plan, awards may not be sold, transferred,
pledged, assigned or otherwise alienated or hypothecated, other than by will or
by the laws of descent and distribution, and a participant's rights shall be
exercisable only by the participant or the participant's legal representative
during his or her lifetime.
CHANGE IN CONTROL
Upon a change in control, as defined below,
(a) Any and all options and SARs granted under the Plan shall become
immediately vested and exercisable;
(b) Any restriction periods and restrictions imposed on restricted stock,
restricted stock units, qualified restricted stock and qualified
restricted stock units shall be deemed to have expired; any performance
goals shall be deemed to have been met at the target level; restricted
stock and qualified restricted stock shall become immediately vested in
full and restricted stock units and qualified restricted stock units
shall be paid out in cash; and
(c) The target payout opportunity attainable under all outstanding awards of
performance units and performance shares and any other awards shall be
deemed to have been fully earned for the entire performance period(s) as
of the effective date of the change in control. All awards shall become
immediately vested. All performance shares and awards denominated in
shares shall be paid out in shares, and all performance units shall be
paid out in cash.
For purposes of the above, a change in control of IDACORP means the earliest
of the following events to occur: (i) the acquisition by a party or certain
related parties of 20% or more of IDACORP's outstanding voting stock; (ii) the
commencement of a tender or exchange offer which would result in a person owning
30% or more of IDACORP's outstanding voting stock; (iii) the announcement of a
transaction required to be described under Item 6 (e) of the proxy rules;
(iv) a proposed change in a majority of the Board of Directors within a two-year
period without the approval of two-thirds of the Board; (v) entry into a merger
or similar agreement, after which IDACORP's shareholders would hold less than
two-thirds of the voting securities of the surviving entity; (vi) Board approval
of a plan of liquidation
12
or sale of all or substantially all of IDACORP's assets; and (vii) any other
event deemed by the Executive Committee to be a change in control.
AWARD INFORMATION
It is not possible at this time to determine awards that will be made
pursuant to the Plan.
FEDERAL INCOME TAX CONSEQUENCES
The following is a brief summary of the principal federal income tax
consequences related to options to be awarded under the Plan. This summary is
based on IDACORP's understanding of present federal income tax law and
regulations. The summary does not purport to be complete or applicable to every
specific situation.
Capitalized terms not defined herein, which are defined in the Plan, shall
have the meanings set forth in the Plan.
CONSEQUENCES TO THE OPTIONHOLDER
GRANT. There are no federal income tax consequences to the optionholder
solely by reason of the grant of ISOs or NQSOs under the Plan.
EXERCISE. The exercise of an ISO is not a taxable event for regular federal
income tax purposes if certain requirements are satisfied, including the
requirement that the optionholder generally must exercise the ISO no later than
three months following the termination of the optionholder's employment with
IDACORP. However, such exercise may give rise to alternative minimum tax
liability (see "Alternative Minimum Tax" below).
Upon the exercise of a NQSO, the optionholder will generally recognize
ordinary income in an amount equal to the excess of the fair market value of the
shares of IDACORP Common Stock at the time of exercise over the amount paid
therefor by the optionholder as the exercise price. The ordinary income
recognized in connection with the exercise by an optionholder of a NQSO will be
subject to both wage and employment tax withholding.
The optionholder's tax basis in the shares acquired pursuant to the exercise
of an option will be the amount paid upon exercise plus, in the case of a NQSO,
the amount of ordinary income, if any, recognized by the optionholder upon
exercise thereof.
QUALIFYING DISPOSITION. If an optionholder disposes of shares of IDACORP
common stock acquired upon exercise of an ISO in a taxable transaction, and such
disposition occurs more than two years from the date on which the option was
granted and more than one year after the date on which the shares were
transferred to the optionholder pursuant to the exercise of the ISO, the
optionholder will recognize long-term capital gain or loss equal to the
difference between the amount realized upon such disposition and the
optionholder's adjusted basis in such shares (generally the option exercise
price).
DISQUALIFYING DISPOSITION. If the optionholder disposes of shares of
IDACORP common stock acquired upon the exercise of an ISO (other than in certain
tax-free transactions) within two years from the date on which the ISO was
granted or within one year after the transfer of shares to the optionholder
pursuant to the exercise of the ISO, at the time of disposition the optionholder
will generally recognize ordinary income equal to the lesser of (i) the excess
of each such share's fair market value on the date of exercise over the exercise
price paid by the optionholder or (ii) the optionholder's actual gain (i.e., the
excess, if any, of the amount realized on the disposition over the exercise
price paid by the optionholder). If the total amount realized on a taxable
disposition (including return of capital and capital gain) exceeds the fair
market value on the date of exercise of the shares of IDACORP common stock
purchased by the optionholder under the option, the optionholder will recognize
a capital gain in the amount of such excess.
13
If the optionholder incurs a loss on the disposition (i.e., if the total amount
realized is less than the exercise price paid by the optionholder), the loss
will be a capital loss.
OTHER DISPOSITION. If an optionholder disposes of shares of IDACORP common
stock acquired upon exercise of a NQSO in a taxable transaction, the
optionholder will recognize capital gain or loss in an amount equal to the
difference between the optionholder's basis (as discussed above) in the shares
sold and the total amount realized upon disposition. Any such capital gain or
loss (and any capital gain or loss recognized on a disqualifying disposition of
shares of IDACORP common stock acquired upon exercise of ISOs as discussed
above) will be short-term or long-term depending on whether the shares of
IDACORP common stock were held for more than one year from the date such shares
were transferred to the optionholder.
ALTERNATIVE MINIMUM TAX. Alternative minimum tax ("AMT") is payable if and
to the extent the amount thereof exceeds the amount of the taxpayer's regular
tax liability, and any AMT paid generally may be credited against future regular
tax liability (but not future AMT liability). AMT applies to alternative minimum
taxable income; generally regular taxable income as adjusted for tax preferences
and other items is treated differently under the AMT.
For AMT purposes, the spread upon exercise of an ISO (but not a NQSO) will
be included in alternative minimum taxable income, and the taxpayer will receive
a tax basis equal to the fair market value of the shares of IDACORP common stock
at such time for subsequent AMT purposes. However, if the optionholder disposes
of the ISO shares in the year of exercise, the AMT income cannot exceed the gain
recognized for regular tax purposes, provided that the disposition meets certain
third-party requirements for limiting the gain on a disqualifying disposition.
If there is a disqualifying disposition in a year other than the year of
exercise, the income on the disqualifying disposition is not considered
alternative minimum taxable income.
CONSEQUENCES TO IDACORP
There are no federal income tax consequences to IDACORP by reason of the
grant of ISOs or NQSOs or the exercise of an ISO (other than disqualifying
dispositions).
At the time the optionholder recognizes ordinary income from the exercise of
a NQSO, IDACORP will be entitled to a federal income tax deduction in the amount
of the ordinary income so recognized (as described above), provided that IDACORP
satisfies its reporting obligations described below. To the extent the
optionholder recognizes ordinary income by reason of a disqualifying disposition
of the stock acquired upon exercise of an ISO, IDACORP will be entitled to a
corresponding deduction in the year in which the disposition occurs.
IDACORP will be required to report to the Internal Revenue Service any
ordinary income recognized by any optionholder by reason of the exercise of a
NQSO. IDACORP will be required to withhold income and employment taxes (and pay
the employer's share of employment taxes) with respect to ordinary income
recognized by the optionholder upon the exercise of NQSOs.
OTHER TAX CONSEQUENCES
The foregoing discussion is not a complete description of the federal income
tax aspects of options to be granted under the Plan. In addition, administrative
and judicial interpretations of the application of the federal income tax laws
are subject to change. Furthermore, the foregoing discussion does not address
state or local tax consequences.
THE IDACORP BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT IDACORP
SHAREHOLDERS VOTE "FOR" THIS PROPOSAL. Approval of the Plan for New York Stock
Exchange purposes requires the affirmative vote of a majority of the votes cast,
provided that the total votes cast represent over 50% in interest of all
securities entitled to vote on the Plan. Under the laws of the State of
14
Idaho, the Plan is approved if the votes cast in favor of the Plan exceed the
votes cast opposing the Plan. Abstentions and broker non-votes, if any, will
have no effect on the results, provided that the total votes cast represent over
50% in interest of all securities entitled to vote on the Plan. If a choice has
been specified by a shareholder by means of the proxy, the shares of common
stock will be voted accordingly. If no choice has been specified, the shares
will be voted "FOR" the proposal.
4.2. RATIFICATION OF APPOINTMENT OF
INDEPENDENT AUDITOR
At the Joint Annual Meeting, the shareholders will be asked to ratify the
selection by the IDACORP and the Idaho Power Boards of Directors of Deloitte &
Touche LLP as the firm of independent public accountants to audit the financial
statements of IDACORP and Idaho Power for the fiscal year 2000.2002. This firm has
conducted consolidated annual audits of Idaho Power for many years and is one of
the world's largest firms of independent certified public accountants. A
representative of Deloitte & Touche LLP is expected to be present at the meeting
and will have an opportunity to make a statement and to respond to appropriate
questions.
EACH BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE "FOR" DELOITTE &
TOUCHE LLP AS INDEPENDENT AUDITOR OF IDACORP AND IDAHO POWER
3. SHAREHOLDER PROPOSAL
Calvert Asset Management Company, Inc., 4550 Montgomery Avenue, Bethesda,
Maryland 20814, which states that it owns 200 shares of IDACORP common stock,
has notified IDACORP in writing that it intends to present a resolution for
action by the shareholders at the Annual Meeting. The text of the resolution and
the supporting statement submitted by the sponsor are as follows:
CALVERT ASSET MANAGEMENT'S PROPOSAL FOR AN INDIGENOUS PEOPLES'
RIGHTS POLICY AT IDACORP
Whereas, Idacorp faces complex problems as its hydroelectric power plants
impact the survival and security of American Indians and other indigenous
peoples;
Whereas, The United Nations (UN) states that the world's population of
indigenous peoples is over 350 million and represents over 5,000 languages and
cultures in more than 70 countries on every continent. Over the years, the basic
human rights and fundamental freedoms of indigenous peoples continue to be
violated as they are increasingly marginalized and face ongoing oppression,
including the denial of their cultural rights;
Whereas, Indigenous rights to ancestral homelands, self-determination,
livelihood, and culture are often threatened by companies;
Whereas, Idacorp's three-dam Hells Canyon Complex in Idaho has affected
the treaty-reserved fishing and hunting rights of American Indian tribes. The
Hells Canyon Complex provides approximately 75% of the hydroelectric power
generated by Idacorp.
Whereas, the construction of the hydroelectric dams have also blocked fish
runs of chinook salmon and other anadromous fish from reaching their habitat, as
well as environmental repercussions for other species. Sockeye salmon, chinook
salmon, and steelhead from the Snake River have been listed as endangered or
threatened under the U.S. Endangered Species Act according to the U.S. Fish and
Wildlife Service. Failure to rebuild and restore fishing can devastate
fishing-dependent communities, such as certain American Indian tribes.
Whereas, we understand that Idacorp settled a lawsuit for $11.5 million
with the Nez Perce in 1996 for infringing on fishing rights. We understand that
the company built a fish hatchery as a result of that settlement.
9
Whereas, international treaties such as the UN Convention on Biological
Diversity recognizes that indigenous peoples have ownership and use of the lands
they occupy, and the intellectual property rights associated with those uses.
International Labor Organization Conventions call upon nations to promote the
rights of indigenous peoples;
Whereas, we believe global companies need to develop and implement a
comprehensive policy on the rights of indigenous peoples, similar to Calvert's
Policy on Indigenous Peoples' Rights. Companies need to formulate policies and
implement practices to address the challenges they face when their operations
impact the survival and security of indigenous peoples around the world.
Whereas, Idacorp should be in a position to assure shareholders that its
operations do not negatively impact indigenous peoples.
Resolved, that the shareholders hereby request the Board of Directors of
IDACORP to:
o Establish a formal written policy on the rights of indigenous
peoples.
o Hold on-going consultations and dialogue with affected American
Indian tribes on the impact of our company's operations.
o Report a summary of the company's actions with respect to Indigenous
Peoples to shareholders by August 2002.
THE POSITION OF THE BOARD OF DIRECTORS OF IDACORP, INC. WITH RESPECT TO
CALVERT ASSET MANAGEMENT'S PROPOSAL:
THE BOARD HAS CONSIDERED THIS PROPOSAL AND RECOMMENDS THAT SHAREHOLDERS
VOTE "AGAINST" IT FOR THE FOLLOWING REASONS:
The Company values and respects the rights of indigenous peoples. At the
policy decision-making level, the Company has developed a process for addressing
issues related to Native American Tribes. The policymaking body that has been
created under this process draws on the expertise of anthropologists,
archaeologists, fisheries biologists and Indian law attorneys. The Company
believes that its policy towards indigenous peoples is responsive, flexible and
adaptable to changing circumstances. The Company engages in regular
consultations with the Native American tribes in Idaho Power Company's coverage
area pursuant to provisions of the 1980 Settlement Agreement, the 1996
Settlement Agreement with the Nez Perce Tribe, and Native American Tribes have
played an integral part in the Company's process to prepare an application to
relicense the Hells Canyon Complex.
At the Hells Canyon Complex, the Company has undertaken extensive
mitigation efforts for those regional fisheries that are subject to tribal
harvest rights and that have been impacted by the construction and operation of
the Complex. Among these efforts is the Company's voluntary Fall Chinook Plan,
which assists endangered Fall Chinook, directly benefiting regional tribes that
have a treaty right to harvest that type of fish. Moreover, when the Nez Perce
Tribe filed an action against Idaho Power for allegedly violating its
fish-harvesting rights, a federal court held that Idaho Power was not liable.
Notwithstanding the court's decision, Idaho Power later entered into a
Settlement Agreement with the Tribe for business reasons associated with
litigation risk and to obtain the Tribe's cooperation in connection with the
relicensing of the Complex.
The Company believes that, given the Company's longstanding awareness of
its responsibilities to indigenous communities, implementing this proposal would
not be a prudent use of its resources.
THEREFORE, THE IDACORP BOARD URGES SHAREHOLDERS TO VOTE "AGAINST" THIS
PROPOSAL.
10
4. SHAREHOLDER PROPOSAL
Trillium Asset Management Corporation, 104 South Capitol Boulevard, Boise,
Idaho 83702, manages the Advocacy Fund which is the beneficial owner of 400
shares of IDACORP common stock, 150 of which have been held for longer than one
year, has notified IDACORP in writing that it intends to present a resolution
for action by the shareholders at the annual meeting. The text of the resolution
and the supporting statement submitted by the sponsor are as follows:
TRILLIUM ASSET MANAGEMENT CORPORATION SHAREHOLDER PROPOSAL
IDACORP subsidiary Idaho Power is the owner and operator of the Hells
Canyon Complex of three dams and their reservoirs located on the Snake River.
With a total nameplate capacity of 1,166 megawatts, the Complex is one of the
largest privately owned hydroelectric projects in America.
The Hells Canyon Complex represents a crucial financial and strategic
asset to Idaho Power. In a typical year, the Complex produces approximately 50%
of the company's generated electricity. The Complex's Brownlee reservoir
provides Idaho Power flexibility in the timing, amount and value of electricity
it generates.
Idaho Power is seeking the relicensing of the Hells Canyon Complex. Its
current license expires in 2005.
Under the Federal Power Act, operators of non-federal hydropower projects
are generally required to obtain a license from the Federal Energy Regulatory
Commission (FERC). The Act requires FERC, in the relicensing process, to give
"equal consideration" to power and non-power values including "the protection,
mitigation of damage to, and enhancement of, fish and wildlife (including
related spawning grounds and habitat)."
The Hells Canyon Complex forms an upstream barrier to the movement and
migration of fish and has a significant impact on water quality and recreation.
The original license for the Hells Canyon Complex required Idaho Power to
implement fish passage at the dams. However, at present, the Complex lacks fish
passage. What measures Idaho Power will be required to take regarding fish
passage to ensure the relicensing of the Complex remains unresolved.
RESOLVED
Shareholders request that the Board issue a report to shareholders by
October 2002, prepared at reasonable cost and omitting proprietary information,
reviewing the relicensing process for the Hells Canyon Complex and outlining the
expected impact to shareholder value of any remedial capital spending or limits
on operations of the Complex required to secure relicensing.
SUPPORTING STATEMENT
In the report to shareholders, we request information on the expected
impact to shareholder value of any remedial capital spending or limits on
operations of the Complex stemming from factors including - but not limited to
- - the following:
o Any mitigation required by FERC or otherwise implemented by Idaho
Power in the course of relicensing to protect or restore the
habitats of fish and other wildlife and meet water quality standards
11
o Any mitigation implemented by Idaho Power from negotiations with
stakeholders, including American Indian tribes, environmental and
wildlife organizations, farmers, power users, and federal, state or
local authorities
o Any impact on the relicensing or operation of the Hells Canyon
Complex stemming from the implementation of the December 2000
Biological Opinion for Columbia and Snake River salmon, including
potential removal or retaining of the four Lower Snake River dams
operated by the U.S. Army Corps of Engineers
Hells Canyon Complex is a critical financial and strategic asset to our
company. The costs to Idaho Power of litigation, environmental mitigation and
settlements with stakeholders could be material to shareholders.
As shareholders, we consider it crucial that IDACORP be transparent
regarding the financial impact to the company of relicensing of the Hells Canyon
Complex.
THE POSITION OF THE BOARD OF DIRECTORS OF IDACORP, INC. WITH RESPECT TO
TRILLIUM ASSET MANAGEMENT CORPORATION'S PROPOSAL:
THE BOARD HAS CONSIDERED THIS PROPOSAL AND RECOMMENDS THAT SHAREHOLDERS
VOTE "AGAINST" IT FOR THE FOLLOWING REASONS:
This proposal calls for a report to be issued to shareholders in October
2002 reviewing the relicensing process for Hells Canyon Complex and assessing
the impact on shareholder value of any capital spending or limits on operations
of the Complex required to secure relicensing. As part of its reporting
obligations under the Securities Exchange Act of 1934, the Company has, and will
continue to, disclose all material information surrounding the relicensing of
the Complex, including its potential impact on shareholder value, when that
information becomes available. Therefore, the Company believes that implementing
this proposal would impose an unnecessary burden on the Company without
providing shareholders with any additional benefit.
While the Company is supportive of the general intent of the proposal, the
Company believes that, given its longstanding awareness of its responsibilities
of disclosure to shareholders, implementing this proposal would not be a prudent
use of its resources.
THEREFORE, THE IDACORP BOARD URGES SHAREHOLDERS TO VOTE "AGAINST" THIS
PROPOSAL.
12
REPORT OF THE AUDIT COMMITTEE
OF THE BOARD OF DIRECTORS
The Audit Committee of the IDACORP and Idaho Power Boards of Directors
(the Committee) is composed of four independent directors, as defined in
Sections 303.01(B)(2)(a) and (3) of the NYSE's listing standards, and operates
under a written charter adopted by each Board of Directors. The Committee
recommends to each Board of Directors, subject to shareholder ratification, the
selection of the independent accountants.
Management is responsible for the internal controls and the financial
reporting process of IDACORP and Idaho Power. The independent accountants are
responsible for performing an independent audit of the consolidated financial
statements of IDACORP and Idaho Power in accordance with generally accepted
auditing standards and to issue a report thereon. The Committee's responsibility
is to monitor and oversee these processes.
In this context, the Committee has met and held discussions with
management and the independent accountants. Management represented to the
Committee that the consolidated financial statements of IDACORP and Idaho Power
were prepared in accordance with generally accepted-accounting principles, and
the Committee has reviewed and discussed the audited consolidated financial
statements of IDACORP and Idaho Power with management and the independent
accountants. The Committee discussed with the independent accountants matters
required to be discussed by Statement on Auditing Standards No. 61
(Communication with Audit Committees).
The independent accountants also provided to the Committee the written
disclosures and the letter required by Independence Standards Board Standard No.
1 (Independence Discussions with Audit Committees), and the Committee discussed
with the independent accountants that firm's independence.
Finally, the Committee discussed with the independent accountants
services, other than audit services, which they have provided to IDACORP and
Idaho Power and considered whether the providing of and payment for such
services is compatible with maintaining the independence of the independent
accountants.
Based on the Committee's review and discussions referred to above, the
Committee recommended to each Board of Directors that the audited consolidated
financial statements of IDACORP and Idaho Power be included in their respective
Annual Reports on Form 10-K for the year ended December 31, 2001 for filing with
the Securities and Exchange Commission.
Jack K. Lemley (Chairman)
Rotchford L. Barker
Gary G. Michael
Peter T. Johnson
13
INDEPENDENT ACCOUNTANT BILLINGS FOR THE YEAR 2001
The following table sets forth the fees billed or expected to be billed by
the independent accountants to IDACORP and Idaho Power for the year 2001.
FEES BILLED
Audit Fees . . . . . . . . . . . . . . . . . . . . . . . . $ 336,610
Financial Information Systems Design
and Implementation Fee . . . . . . . . . . . . . . . . . . - 0-
All Other Fees:
Audit-Related Fees . . . . . . . . . . . . . . . . . . $ 220,628(a)
Non-Audit Related Fees . . . . . . . . . . . . . . . . $1,132,335(b)
----------
Total (All Other Fees) . . . . . . . . . . . . . . . . $1,352,963
==========
(a) Includes fees for comfort letters, audits of the Company's benefit plans
and stand alone audits of subsidiaries.
(b) Includes tax consulting and computer system implementation advisory
services, network security assessments, and internal audit support
services related to information technology. Other non-audit related fees
also includes $120,000 of fees for services provided by Deloitte
Consulting. Deloitte & Touche has recently announced its intent to
separate Deloitte Consulting from its Firm.
OTHER BUSINESS
Neither the IDACORP nor the Idaho Power Board of Directors nor management
intends to bring before the meeting any business other than the matters referred
to in the Notice of Meeting and this Joint Proxy Statement. In addition, other
than as explained in the next sentence, theyThe IDACORP Board of
Directors have not been informed that any
other matterthe two shareholder proposals discussed in
this Proxy Statement will be presented to the meeting by others. AIn addition, a
shareholder submitted a proposal for inclusion in the proxy statement, which
IDACORP has omitted pursuant to Rule 14a-8 of the Securities and Exchange
Commission's proxy rules. If the shareholder should present the proposal at the
Joint Annual Meeting, it is the intention of the persons named in the proxy to
vote against such proposal. If any other business should properly come before
the meeting, or any adjournment thereof, the persons named in the proxy will
vote on such matters according to their best judgment.
At the meeting, management will report on the business of IDACORP and
Idaho Power, and shareholders will have an opportunity to ask questions.
PRINCIPAL SHAREHOLDERS
The following table presents certain information regarding shareholders
who are known to IDACORP or Idaho Power to be the beneficial owners of more than
5 percent of any class of voting securities of IDACORP or Idaho Power as of
March 1, 2000:2002:
NAME AND ADDRESS AMOUNT AND NATURE OF PERCENT
CLASS OF STOCK OF BENEFICIAL OWNER BENEFICIAL OWNERSHIP OF CLASS
IDACORP Common Stock U.S. Bancorp(1) 2,892,642 7.69
601 2nd Ave. South
Minneapolis, MN 55402- -------------- --------------------- -------------------- --------
Idaho Power Common Stock IDACORP, Inc.(2)(1) 37,612,351 100
1221 W. Idaho Street
Boise, Idaho 83702
- -------------
(1) U.S. Bancorp, trustee for the Idaho Power Company Employee Savings Plan and
Trust, has sole voting power with respect to 2,883,711 shares, shared voting
power with respect to 2,431 shares, sole dispositive power with respect to
55,514 shares and shared dispositive power with respect to 26,267 shares.
Based solely on information as of December 31, 1999 contained in a
Schedule 13G filed by U.S. Bancorp with the Securities and Exchange
Commission.
(2) As a result of the formation of the holding company, IDACORP became the
holder of all issued and outstanding shares of Idaho Power common stock on
October 1, 1998.
1514
SECURITY OWNERSHIP OF DIRECTORS AND EXECUTIVE OFFICERS
The following table sets forth the number of shares of IDACORP common
stock and Idaho Power preferred stock beneficially owned on March 1, 2000,2002, by
the Directors and nominees, by those Executive Officers named in the Summary
Compensation Table and by the Directors and Executive Officers of IDACORP and
Idaho Power as a group:
AMOUNT OF
BENEFICIAL STOCK PERCENT
TITLE OF CLASS NAME OF BENEFICIAL OWNER BENEFICIAL OWNERSHIP(1) OPTIONS(2) OF CLASS
- -------------- --------------------------- ----------------------------------------------- -------------- ------------ ---------
Common Stock Rotchford L. Barker 4,181 *
Common Stock Robert D. Bolinder 1,181. . . . . . . . . . . 10,622 *
Common Stock Roger L. Breezley 928. . . . . . . . . . . . 1,488 *
Common Stock John B. Carley 3,381Carley. . . . . . . . . . . . . . 4,182 *
Common Stock Peter T. Johnson 2,181Christopher L. Culp, Ph.D.(3) . . . . . . -- *
Common Stock Jack K. Lemley 1,681Lemley(4) . . . . . . . . . . . . 4,622 *
Common Stock Evelyn Loveless 1,696. . . . . . . . . . . . . 2,395 *
Common Stock Gary G. Michael . . . . . . . . . . . . . 3,213 *
Common Stock Jon H. Miller 681. . . . . . . . . . . . . . 1,122 *
Common Stock Peter S. O'Neill 1,291O'Neill. . . . . . . . . . . . . 1,886 *
Common Stock Jan B. Packwood 30,258. . . . . . . . . . . . . 72,457 32,000 *
Common Stock Robert A. Tinstman 3,181Tinstman. . . . . . . . . . . . 3,622 *
Common Stock J. LaMont Keen 17,986Keen(5) . . . . . . . . . . . . 35,843 14,000 *
Common Stock Richard Riazzi 7,669Riazzi. . . . . . . . . . . . . . 26,431 14,000 *
Common Stock James C. Miller 5,684. . . . . . . . . . . . . 20,087 14,000 *
Common Stock Robert W. Stahman 21,806Stahman(6). . . . . . . . . . . 17,227 800 *
Common Stock All Directors and Executive Officers of
IDACORP as a group (15 persons) 100,959. . . . . 205,197 *
Preferred Stock All Directors and Executive Officers of
IDACORP as a group (15 persons) . . . . . 27 *
Common Stock All Directors and Executive Officers of
Idaho Power as a group (20(22 persons) 126,981. . . 245,943 *
Preferred Stock All Directors and Executive Officers of
Idaho Power as a group (20(22 persons) . . . 27 *
- -------------
- ------------------------------
* Less than 1 percent.
(1) Includes shares of Common Stock subject to forfeiture and restrictions on
transfer issued pursuant to the 1994 Restricted Stock Plan. AllAlso includes
shares of common stock that beneficial owner has the right to acquire
within 60 days upon exercise of stock options.
(2) Included in the amount of beneficial ownership column.
(3) Mr. Culp joined the Board in late March 2002.
(4) Mr. Lemley disclaims all beneficial ownership of the 2,500 shares owned by
his wife.
(5) Mr. Keen disclaims all beneficial ownership of the 167 shares owned by his
wife and 13 shares held by wife for child.
(6) Mr. Stahman disclaims all beneficial ownership of the 23 shares held by
wife for children.
15
Except as indicated above, all Directors and Executive Officers have sole
voting and investment power for the shares held by them including shares owned
through the Employee Savings Plan and the Dividend Reinvestment and Stock
Purchase Plan.
SECTION 16(A)16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Based solely upon a review of IDACORP and Idaho Power records and copies
of reports on Forms 3, 4 and 5 furnished to IDACORP and Idaho Power or written
representations that no reports on Form 5 were required, IDACORP and Idaho Power
believe that during 19992001 all persons subject to the reporting requirements of
Section 16(a) of the Securities Exchange Act of 1934, as amended, filed the
required reports on a timely basis.
16
basis except Peter T. Johnson for whom a late Form
4 was filed.
COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS
REPORT OF COMPENSATION COMMITTEE
OF THE BOARD OF DIRECTORS
ON EXECUTIVE COMPENSATION
GENERAL
The IDACORP Board of Directors Compensation Committee, which is the same
as the Idaho Power Compensation Committee, ("Committee") established all
components of 19992001 compensation for the Executive Officers of IDACORP and Idaho
Power. There were no extra salary adjustments for the Executive Officers who
serve in the same positions at IDACORP and Idaho Power.
The Committee administers the IDACORP and Idaho Power executive
compensation program. As such, the Committee is responsible for recommending (1)
the compensation philosophy, (2) executive compensation plans that support the
philosophy, and (3) the appropriate levels of compensation for Executive
Officers. The Committee is composed of four independent, non-employee Directors.
Following the development of recommendations by the Compensation Committee, all
issues related to executive compensation are submitted to the full Boards of
Directors of IDACORP and Idaho Power (which are the same) for approval. The
Boards approved, without modification, all executive compensation
recommendations of the Committee for 1999.2001.
COMPENSATION PHILOSOPHY
The compensation philosophy for IDACORP and Idaho Power Executive Officers
is consistent with the compensation philosophy Idaho Power has adopted for all
employees, except that for Executive Officers and senior managers the Committee
has aligned short-term and long-term incentive plans with corporate financial
performance and increased the percentage of their total compensation which is at
risk. The Idaho Power compensation program is designed to:
1. manage employee compensation as an investment with the expectation
employees will contribute to Idaho Power's financial performance,
its environmental record and public reputation;
2. be competitive with respect to those companies in the markets in
which we compete for employees, allowing Idaho Power to successfully
attract and retain the qualified employees necessary for long-term
success;
3. recognize individuals for their demonstrated ability to perform
their position responsibilities and create long-term shareholder
value; and
4. balance total compensation with Idaho Power's ability to pay.
199916
COMPENSATION MARKET
As part of its review of the IDACORP/Idaho Power executive total
compensation program (base salary, annual and long term incentives and
retirement) completed during 2000, the Committee studied the appropriate
competitive market for executive compensation. The previous competitive market
was electric utilities with revenues ranging from $500 million to $1 billion
annually. After review, the Committee concluded that this market did not
appropriately reflect the size, complexity and diversity associated with
IDACORP/Idaho Power. In November 2000, the Committee selected twelve comparable
electric utility holding companies with similar business lines with average
annual revenues of $1.8 billion as the new competitive market for executive
total compensation. The Committee believes this competitive market to be more
representative of IDACORP/Idaho Power's size, complexity and diversity while
still reflective of total revenues.
2001 BASE SALARIES
Salary ranges for Executive Officers are reviewed annually and are
supported by salary comparisons with similar positions in twelve electric
utilities throughout
the United States with annual revenues ranging from $500 millionutility holding companies referred to $1 billion.above. The competitive point for executive
compensation for 19992001 was targeted near the median of the salary levels for
executive officers of these utilities. Actual compensation of individual
Executive Officers is based upon their levels of responsibility, experience in
their positions, prior experience, breadth of knowledge and job performance. The
electric utility group utilized by the Committee to compare Executive Officer
salaries is different from the EEI 100 Electric Utilities Index group utilized
by IDACORP to compare the financial performance of IDACORP and Idaho Power with
a nationally recognized industry standard.
The Committee has used this smaller electric group for salary
comparison purposes since November 1994, based on its belief that it is more
appropriate to compare Executive Officer salaries with electric utilitiesIn January of comparable revenues, size and complexity than with all electric utilities
regardless of size as represented in the EEI Electric Utilities Index.
17
In November of 1998,2001, the Committee recommended adjustments to the 19992001
salary ranges for the Executive Officer group based on the annual Executive
Officer compensation review referenced above. Salary adjustments for 19992001
averaged approximately 1314 percent, to move them nearer (but slightly below) the median of the
comparison group. The 1999 adjustment percentage is higher than it
has been in the past because of some organizational changes at the Executive
Officer level and the appointment of some new officers. The Committee considered each of the factors discussed above
but did not assign a formal weighting for each factor.
SHORT-TERM INCENTIVE COMPENSATION
The Committee implemented the Idaho Power Executive Incentive Plan effective
January 1, 1998 (Executive Incentive Plan). This Incentive Plan ties a portion of each executive's annual
compensation to achieving certain financial goals. For 1999,2001, the established
financial goals were in the areas of earnings per share and return on common
equity. Each goal is designed with a minimum or threshold level and a series of
five levels above the threshold with each level having a multiplier which
increases as the performance requirement under the goal increases. The threshold
level for earnings per share was $2.30$2.78 per share with a multiplier of .25; the
maximum level was $2.42$3.12 per share with a 1.00 multiplier. In 1999,2001, IDACORP
earned $2.43$3.35 per share. The threshold level for return on common equity was
11.512.20 percent with a multiplier of .25 with the highestmaximum level at 12.113.50 percent
with a 1.00 multiplier. In 1999,2001, IDACORP's return on common equity was 12.1414.3
percent. The award opportunities vary by position as a percentage of base salary
with the award opportunities for the officers ranging from a minimum of 7.5
percent to a maximum of 30100 percent. The Executive Incentive Plan does not
permit the payment of awards if there is no payment of awards under the Employee
Incentive Plan. The performance levels within each goal were established based
upon the performance in previous years with the higher levels requiring
achieving goals in excess of performance in previous years in each goal. In
1999,2001, IDACORP achieved the maximum level of performance for each goal, and as a result,
Executive Officers received the maximum award under the Executive Incentive
Plan. Mr. Riazzi, in addition to being Senior Vice-President - Generation and
Marketing for IDACORP, is also President of IDACORP Energy LP, IDACORP's trading
subsidiary. In the calendar year 2001, Mr. Riazzi was eligible for IDACORP
Energy's 2001 Incentive Plan. The IDACORP Energy 2001 Incentive Plan is based
upon acheivement of certain financial goals. The plan is funded based upon a
percentage of earnings before taxes, with awards based upon individual
performance, relative ranking within the group and for Mr. Riazzi at the
discretion of the
17
IDACORP CEO. Awards under the Executive Incentive Plan and the IDACORP Energy
2001 Incentive Plan are reflected in the bonus column of the Summary
Compensation table.Table.
LONG-TERM INCENTIVE COMPENSATION
Long-term incentive awards are intended to develop and retain strong
management through share ownership and incentive awards that recognize future
performance and maximize stockholder value. Restricted Stock and (with the
adoption by shareholders of the IDACORP 2000 Long-Term Incentive and
Compensation Plan at the May 2000 Annual Meeting) stock options were the
long-term incentives granted to executive officers in 2001.
When awarding long-term incentives, the Committee considers an executive's
level of responsibility, prior experience, individual performance criteria, as
well as the compensation practices of the peer group of companies used to
evaluate total compensation. The relative weight given to each of these factors
varies among individuals at the Committee's discretion.
1. Restricted Stock Plan
The 1994 Restricted Stock Stock(Plan ("Plan"), approved by shareholders at the
May 1994 Annual Meeting, was implemented in January 1995 as an equity-based
long-term incentive plan. A new grant under the Plan was made in January 1999,
with a three-year restricted period beginning January 1, 1999 and ending
December 31, 2001, with a single financial performance goal of Cumulative
Earnings Per Share ("CEPS"). In January of 1997,1999, a grant was made under the Plan
for a three year restricted period through December 31, 1999,2001, with a target CEPS
of $6.75.$7.05. The total CEPS for the three year restricted period was $7.12$9.50
resulting in awards earned for 19992001 at the maximum level for all named
executives. A new grant under the Plan was made in January 2001, with a
three-year restricted period beginning January 1, 2001 and ending December 31,
2003, with a single financial performance goal of Cumulative Earnings Per Share
("CEPS"). To receive a final share award each executive officer must be
employed, as an officer, during the entire restricted period (with certain
exceptions), and IDACORP must achieve the CEPS performance goal established by
the Board of Directors. The restricted stock grant percentage (a(expressed as a
percentage of base salary converted into shares of stock based upon the closing
stock price for a share of IDACORP common stock on December 31 of the year
preceding the grant) varied by position with the percentages for the Chief
Executive Officer ranging from a minimum of 18 percent to a maximum of 53
percent. For all other Executive Officers, the percentage ranged from a minimum
of 1013 percent to a maximum of 45 percent. The target grant percentages for new
grants are reviewed annually as part of the annual Executive Officer
compensation review referenced above and the 19992001 grants were at a level below
the median target levels among the comparison group.
2. Stock Options
The 1999IDACORP 2000 Long-Term Incentive and Compensation Plan, approved by
shareholders at the May 2000 Annual Meeting, was implemented in July 2000 as a
second equity-based long-term incentive. In January of 2001, stock options with
an exercise price set at fair market value on the date of grant were granted to
IDACORP and Idaho Power executive officers, including the Chief Executive
Officer. Because the exercise price of these options is equal to the fair market
value of IDACORP's common stock on the date of grant, the options have value
only if the stock price appreciates from the value on the date the options were
granted. The options vest ratably over five years (20% per year). The size of
each award was determined based on the criteria for awarding long-term
incentives stated above and ranged from 4,000 options to each of the Vice
Presidents, to 30,000 for the three Senior Vice-Presidents, to 60,000 options
for the CEO.
The 2001 compensation paid to IDACORP and Idaho Power executive officers
qualified as fully deductible under federal tax laws. The Committee continues to
review the impact of federal tax laws on executive compensation, including
Section 162(m) of the Internal Revenue Code.
Shareholders of IDACORP are being
asked at the 2000 Annual Meeting to approve the IDACORP 2000 Long-Term
18
Incentive and Compensation Plan, which includes terms to permit deductibility of
certain grants under the plan under Section 162(m).
INCENTIVECEO COMPENSATION PLANS--PERFORMANCE
Since 1995, the Committee has been adjusting executive compensation to place
a higher percentage of total executive compensation at risk with the at risk
portion tied to corporate financial performance. This adjustment has been
accomplished by aligning the short-term and long-term incentive plans with
certain financial goals and making the plans a larger percentage of the
executive's total compensation. To date, the Committee feels this approach has
proven successful and has presented high performance expectations to management
in the past and for 2000 and beyond. The Committee believes that a brief review
of corporate financial performance under the short-term and long-term incentive
plans is appropriate in this Report.
The 1994 Restricted Stock Plan is a long-term equity based incentive plan
with a single financial performance goal of cumulative earnings per share (CEPS)
over a three year restricted period. For the three year period (1992-1994) prior
to the establishment of goals under and implementation of the Restricted Stock
Plan, Idaho Power earned a total CEPS of $5.49.- 2001
In January of 1995, a grant was
made under the Restricted Stock Plan for a three year restricted period through
December 31, 1997 with a target CEPS of $6.00. Earnings improved steadily over
the three year restricted period--$2.10 in 1995, $2.21 in 1996 and $2.32 in 1997
for a total CEPS of $6.63. This resulted in grants earned at the maximum level
for all named executives. For the three year period (1993-1995) prior to the
establishment of goals for the second restricted period (1996-1998), Idaho Power
earned a total CEPS of $6.04. In January of 1996, a grant was made under the
Restricted Stock Plan for a three year restricted period through December 31,
1998 with a target CEPS of $6.60. Earnings continued to improve steadily over
the three year restricted period--$2.21 in 1996, $2.32 in 1997 and $2.37 in
1998, for a total CEPS of $6.90 resulting in grants earned at the maximum level
for all named executives. For the three year period (1994-1996) prior to the
establishment of goals for a third restricted period (1997-1999), Idaho Power
earned a total CEPS of $6.11. In January of 1997, a grant was made under the
Restricted Stock Plan for a three year restricted period through December 31,
1999, with a target CEPS of $6.75. Earnings continued to improve steadily over
the three year restricted period--$2.32 in 1997, $2.37 in 1998 and $2.43 in 1999
for a total CEPS of $7.12 resulting in grants earned at the maximum level for
all name executives. The Committee has continued to increase the grant
percentage (a percentage of base salary converted into shares of stock) and the
financial goal (CEPS) in connection with grants under the Restricted Stock Plan
in January of 1998, 1999 and 2000.
In January 1995, the Committee adopted an Executive Annual Incentive Plan.
The Plan was a short-term cash-based incentive plan with a series of four evenly
weighted performance goals designed to promote safety, control capital and
operation and maintenance expenditures and increase annual earnings per share.
In 1995, Idaho Power achieved the maximum level of performance for each goal
area including the earnings per share level. In 1996, a fifth goal--customer
satisfaction--was established with all five goals evenly weighted and Idaho
Power achieved a level of performance averaging near the target level, with the
earnings per share set at a maximum of $2.22 compared with actual earnings of
$2.21. In 1997, the Executive Annual Incentive Plan was suspended and the
executive officers participated in Idaho Power's Employee Incentive Plan. In
1998, the Committee adopted a new Executive Incentive Plan which is described in
the Short-Term Incentive Compensation section of this report. The 1998 Plan had
purely financial goals, earnings per share, return on common equity and capital
and O&M budget expense levels, and the Plan does not permit the payment of
awards if there is no payment of awards made under the Employee Incentive Plan.
In 1998, the Company achieved the maximum level of performance for each goal. In
1999, the Committee eliminated the capital and O&M budget expense goal leaving
two financial goals, earnings per share and return on common equity. The
Committee has continued to increase the target percentage of base salary and the
financial goals in connection with awards under the Executive Incentive Plan.
19
The Committee would like to point out that the Snake River Basin has
experienced above normal water conditions in each year of the last five years,
1995 through 1999, which has favorably influenced earnings and benefitted all
IDACORP shareholders.
CEO SALARY--1999
MR. MARSHALL
In January 1999,2001, Mr. Marshall who had served as Chief Executive Officer
since 1989,Packwood was granted a salary increase of approximately 316
percent. The competitiveness of Mr. Marshall'sPackwood's salary was reviewed annually based upon
comparisons with salaries of chief executive officers of twelve comparable
utilities
with annual revenues ranging from $500 millionelectric utility holding companies referred to $1 billion. The competitive
point for Mr. Marshall's salary was targeted near the median of this comparison.
The actual 1999 salary adjustment for Mr. Marshall was slightly above the median
of salary levels for chief executive officers of the comparison utility group
and was based on the level of his responsibilities, the depth of his experience,
his job performance and the overall competitive level of his current
compensation based on the annual Executive Officer compensation review
referenced above. The Committee considered each of these factors but did not
assign a formal weighting for each factor. Mr. Marshall retired at the end of
September 1999.
Mr. Marshall was a participant in the Executive Incentive Plan with a 1999
award opportunity ranging from a minimum of 7.5 percent to a maximum of
30 percent of base salary. This award level was established based upon the
Executive Officer compensation review referenced above. In 1999, the Company
achieved the maximum level of performance for each goal area, and as a result,
Mr. Marshall will receive an award under the Executive Incentive Plan of
30 percent of his base salary, prorated for nine months of service.
Mr. Marshall was a participant in the Restricted Stock Plan as discussed above.
In January of 1997, a grant was made to Mr. Marshall under the Restricted Stock
Plan for a three year restricted period through December 31, 1999. The Company
achieved the maximum level of performance for the three year restricted period
and as a result, Mr. Marshall will receive an award at the maximum level of
45 percent in 1999. In addition, he received a stock grant at the target level
of 35 percent in 1999. Mr. Marshall will receive a final share award after the
restricted period ends in December 2001 if IDACORP achieves its CEPS performance
goal established by the Board of Directors. The awards will be prorated based on
the number of whole months during the Restricted Period prior to Mr. Marshall's
retirement.
MR. PACKWOOD
In June of 1999, Mr. Packwood replaced Mr. Marshall as Chief Executive
Officer and was granted a salary increase of 25 percent. The competitiveness of
Mr. Packwood's salary will be reviewed annually based upon comparisons with
salaries of chief executive officers of comparable utilities with annual
revenues ranging from $500 million to $1 billion. The competitive point for
Mr. Packwood's salary is targeted near the median of this comparison. The actual
19992001 salary adjustment for Mr. Packwood placed him below5.8 percent above the median
of salary levels for chief executive officers of the comparison utility group and is
based on the level of his responsibilities, the depth of his experience, his job
performance and the overall competitive level of his current compensation based
on the annual Executive Officer compensation review referenced above. The
Committee considered each of these factors but did not assign a formal weighting
for each factor.
Mr. Packwood is a participant in the Executive Incentive Plan with a 19992001
award opportunity ranging from a minimum of 7.512.5 percent to a maximum of 30100
percent of base salary. This award level was established based upon the
Executive Officer compensation review referenced above. In 1999,2001, the Company
achieved the maximum level of performance for each goal area, and as a result,
Mr. Packwood will receive an award under the Executive Incentive Plan of 30100
percent of his base salary. Mr. Packwood is a participant in the Restricted
Stock Plan as discussed above. In January of 1997,1999, a grant was made to
20
Mr.
Packwood under the Restricted Stock Plan for a three year restricted period
through December 31, 1999.2001. The Company achieved the maximum level of performance
for the three year restricted period and as a result, Mr. Packwood will receive
an award at the maximum level of 4245 percent in 1999. In addition, hefor 2001, which is 3,731 shares. Mr.
Packwood received a restricted stock grant at the target level of 35 percent in
19992001 and will receive a final share award after the restricted period ends in
December 20012003 if he remains employed by the Company as an officer during the
entire restricted period (with certain exceptions) and IDACORP achieves its CEPS
performance goal established by the Board of Directors. In addition, Mr.
Packwood received a stock option grant of 60,000 shares in January of 2001 under
the IDACORP 2000 Long-Term Incentive and Compensation Plan with an exercise
price set at fair market value vesting ratably over a five year period (20% per
year) contingent upon Mr. Packwood's continued employment with the Corporation.
The incentive awards were intended to place a greater portion of Mr. Packwood's
total compensation for 2001 "at risk".
John B. Carley, Chairman Evelyn Loveless
Peter T. Johnson
Evelyn Loveless
Peter S. O'Neill
19
IDACORP AND IDAHO POWER
SUMMARY COMPENSATION TABLE
LONG-TERM COMPENSATION
-----------------------------------------
ANNUAL COMPENSATION AWARDS
ANNUAL --------------
COMPENSATION----------------------------- ---------------------------
RESTRICTED -------------------SECURITIES
STOCK UNDERLYING ALL OTHER
NAME AND SALARY BONUS AWARD(S)(1) STOCK OPTION/ COMPENSATION(2)
PRINCIPAL POSITION YEAR ($) ($) ($) SARS (#) ($)
- ---------------------------------- -------- -------- -------- -------------- ---------------------------------- ----- ------- ------- ----------- ------------- ---------------
Joseph W. Marshall (3)
Chairman of the Board and Chief 1999 348,461 101,925 158,550 6,400
Executive Officer, IDACORP and 1998 440,000 132,000 154,000 6,400
Idaho Power 1997 420,000 32,760 126,000 6,400
Jan B. Packwood . . . . . . . . 2001 500,000 500,000 175,000 60,000 6,800
President and 2000 415,000 207,500 145,250 100,000 6,800
Chief Executive Officer, 1999 343,269 112,500 90,000 6,400
President and Chief Executive 1998 250,000 75,000 75,000 6,400
Officer, IDACORP and Idaho Power
1997 207,692 16,200 56,000 5,873
J. LaMont KeenKeen. . . . . . . . . 2001 300,000 240,000 90,000 30,000 6,800
Sr. Vice President--AdministrationPresident- 2000 250,000 100,000 75,000 40,000 6,270
Administration & 1999 215,692 65,400 61,800 6,400
Chief Financial Officer,
IDACORP 1998 200,000 60,000 60,000 6,400
and Idaho Power
1997 178,000 13,884 49,840 6,400
James C. Miller . . . . . . . . 2001 210,000 168,000 63,000 30,000 -0-
Sr. Vice President- 2000 170,000 68,000 51,000 40,000 -0-
Delivery, Idaho Power 1999 146,923 42,000 35,000 4,867
Richard Riazzi. . . . . . . . . 2001 300,000 2,250,000 90,000 30,000 6,800
Sr. Vice President-- Delivery, 1998 128,000 38,400 32,000 4,095
Idaho Power 1997 120,000 9,360 10,140 3,278
Richard Riazzi
Sr. Vice President--President- 2000 250,000 100,000 75,000 40,000 6,800
Generation & Marketing, 1999 226,692 68,700 54,250 5,686
& Marketing, IDACORP and Idaho 1998 210,000 60,202 52,500 4,543
Power 1997 181,450 14,153 64,640 --
Kip W. Runyan (4) 1999 163,392 49,050 -0- 60,900
Sr. Vice President-- Delivery, 1998 192,000 57,600 48,000 6,400
Idaho Power 1997 173,010 70,875 14,846 4,940
Robert W. Stahman . . . . . . . 2001 180,000 108,000 45,000 4,000 6,800
Vice President, General 2000 165,000 49,500 41,250 -- 6,800
Counsel and Secretary 1999 155,000 46,500 38,750 6,400
Vice President, General Counsel 1998 150,000 45,000 37,500 6,400IDACORP and Secretary 1997 144,000 11,232 34,560 5,760Idaho Power
- -------------
- ------------------------
(1) The aggregate restricted stock holdings as of December 31, 19992001 are as
follows: Mr. MarshallPackwood held 12,52211,471 ($335,746)465,722) shares of restricted stock;
Mr. Packwood held 6,279 ($168,356) shares of restricted
21
stock; Mr. Keen held 4,9046,339 ($131,489)257,363) shares of restricted stock; Mr. Miller held
2,1434,153 ($57,459)168,611) shares of restricted stock; Mr. Riazzi held 4,6126,130
($123,659) shares of restricted stock; Mr. Runyan held 3,135 ($84,057)248,878) shares of restricted stock; Mr. Stahman held 3,1783,526 ($143,155)
shares of restricted stock ($85,210).stock. Dividends are paid on restricted stock when
and as paid on the IDACORP Common Stock.
(2) Represents the Company's contribution to the Employee Savings Plan (401-k
plan).
(3) Mr. Marshall retired as Chairman20
OPTIONS / SAR GRANTS IN FISCAL YEAR 2001
NUMBER OF % OF TOTAL
SECURITIES OPTIONS/SARS
UNDERLYING GRANTED TO EXERCISE OR
OPTIONS/SARS EMPLOYEES IN BASE PRICE GRANT DATE VALUE
NAME GRANTED(1) # FISCAL 2001 ($/SHARE) EXPIRATION DATE ($)(2)
- ---- -------------- -------------- -------------- --------------- ----------------
Jan B. Packwood . . . . . . 60,000 21.9% $40.3125 Jan. 18, 2011 $595,800
J. LaMont Keen. . . . . . . 30,000 10.9% $40.3125 Jan. 18, 2011 $297,900
James C. Miller . . . . . . 30,000 10.9% $40.3125 Jan. 18, 2011 $297,900
Richard Riazzi. . . . . . . 30,000 10.9% $40.3125 Jan. 18, 2011 $297,900
Robert W. Stahman . . . . . 4,000 1.5% $40.3125 Jan. 18, 2011 $ 39,720
- -------------
(1) Options were granted pursuant to the 2000 Long-Term Incentive and
Compensation Plan. The options vest 20% per year and accelerate upon a
change in control.
(2) The grant date values were calculated on the basis of the BoardBinomial
option-pricing model. Options were assumed to be exercised 7 years after
the date of grant. A risk-free interest rate of 5.11%, stock price
volatility of 29% and Chief Executive Officer
effective September 30, 1999.
(4) Mr. Runyan resigned his position as Senior Vice President--Delivery for
Idaho Power effective September 30, 1999. In connection with his
resignation, the Company has agreed to pay Mr. Runyan an amounta dividend yield of money
equal to his base salary for a period of twenty-four months. The amount4.60% were used in the
All Other Compensation column includes $6,400 representingcalculation of the January option grants to Messrs. Packwood, Keen,
Miller, Riazzi and Stahman. The actual value of the options will depend on
the market value of the Company's contribution toCommon Stock on the 401-k plan and $54,500 which representsdates the remainderoptions
are exercised. No realization of Mr. Runyan's salary for 1999 following his resignation whichvalue from the options is not includedpossible
without an increase in the 1999 salary column.price of the Company's Common Stock, which
would benefit all stockholders commensurately.
AGGREGATED OPTION/SAR EXERCISES IN LAST FISCAL YEAR
AND FISCAL YEAR-END OPTION/SAR VALUES
NUMBER OF
SHARES SECURITIES UNDERLYING VALUE OF UNEXERCISED,
ACQUIRED ON VALUE UNEXERCISED OPTIONS IN-THE-MONEY OPTIONS
EXERCISE REALIZED AT FISCAL YEAR-END(1) AT FISCAL YEAR-END
(#) ($) (#) ($)
----------- -------- --------------------------- ------------------------
EXERCISABLE UNEXERCISABLE EXERCISABLE UNEXERCISABLE
----------- -------- ----------- ------------- ----------- -------------
Jan B. Packwood . . . . . . -0- -0- 20,000 140,000 95,750 400,250
J. LaMont Keen. . . . . . . -0- -0- 8,000 62,000 38,300 161,825
James C. Miller . . . . . . -0- -0- 8,000 62,000 38,300 161,825
Richard Riazzi. . . . . . . -0- -0- 8,000 62,000 38,300 161,825
Robert W. Stahman . . . . . -0- -0- -0- 4,000 -0- 1,150
- -------------
(1) Vesting is accelerated upon a change in control.
21
DIRECTOR COMPENSATION
During 1999,2001, each Director who was not an employee of IDACORP or Idaho
Power received $800 for each Board meeting and for each committee meeting
attended. Non-employee Directors who are chairmanchairmen of Board committees received
$1,840 per month; other non-employee Directors received $1,670 per month. In
addition, each Director received an annual stock grant under the Director Stock
Grant Program of IDACORP Inc., common stock equal to $6,000,approximately $8,000, or 181213 shares, in
June of 1999.2001. Mr. Miller was elected non-executive Chairman of the Board of
IDACORP and Idaho Power effective June 1, 1999. His compensation consists of a
monthly retainer of $3,000 per month$6,000 and the annual stock grant under the Director Stock
Grant
Program of $6,000,$8,000, or 181213 shares, in 1999.2001. Mr. Miller does not receive meeting
fees for either Board or committee meetings. Directors may defer all or a
portion of any retainers and meeting fees under a deferred compensation plan.
Under the plan, at retirement Directors may elect to receive one lump-sum
payment of all amounts deferred with interest, or a series of up to 10 equal
annual payments, depending upon the specific deferral arrangement. A special
account is maintained on the books showing the amounts deferred and the interest
accrued thereon. The Directors also participate in a non-qualified deferred
compensation plan which provides for retirement benefit payments (a non-qualified defined benefit plan for Directors) that is
financed by life insurance on the participants and provides, upon retirement
from the Idaho Power Board, for the paymentmaximum of
$17,500 per year for a period of 15 years.years) made to those Directors elected prior
to November 30, 1994, at their option, in 180 monthly installments or in a
single life annuity with a joint and survivor option and to those Directors
elected after November 30, 1994 in a single life annuity with a joint and
survivor option.
Since each director serves on both the IDACORP and Idaho Power Boards and
on the same committees of each Board, the monthly retainer applies to service on
both Boards as do the meeting fees for the Board meetings and for each committee
which has a corresponding committee at both companies. The practice generally is
that meetings of the IDACORP and Idaho Power Boards and the corresponding
committees are held in conjunction with each other and a single meeting fee is
paid to each director for each set of meetings. Separate meeting fees will be
paid in the event a Board or committee meeting is not held in conjunction with a
meeting of the corresponding Board or committee and for those committee meetings
which do not have a corresponding committee.
COMPENSATION COMMITTEE INTERLOCKS
AND INSIDER PARTICIPATION
The members of the Compensation Committees for 1999 were John B. Carley,
Peter T. Johnson, Evelyn Loveless and Peter S. O'Neill. O'Neill Enterprises, of
which Mr. O'Neill is President, is the developer of the Surprise Valley
Partnership which is developing a residential community in southeast Boise. In
May of 1995, Idaho Power entered into an agreement leasing approximately 48.21
acres to Surprise Valley Partnership for 10 years at a monthly rate of
$1,118.75. The lease payments were based on an 8 percent return on fair market
value with the fair market value of the leased land determined by
22
independent appraisers. Idaho Power's appraisal was provided by Nelson &
Hastings, Real Estate Appraisers and Consultants, with Brad Janoush Appraisal
M.A.I. providing the appraisal for Surprise Valley Partnership.
EMPLOYMENT CONTRACTS AND
CHANGE OF CONTROL AGREEMENTS
Idaho Power entered into an employment agreement in 1997 with Richard
Riazzi, Vice President--MarketingPresident - Marketing and Sales, for a three-year term ending
December 1999, with automatic one year extensions thereafter unless the parties
agree to terminate. The agreement provides for a minimum base salary of $191,000
per year subject to annual review, a phantom stock award made in 1997, plus
annual and long-term incentive compensation opportunities. In the event of
termination of employment following a change of control, which is defined as the
acquisition of beneficial ownership of 20% of voting power, certain changes in
the Board, or approval by the shareholders of the liquidation, of certain merger
or consolidations or of certain transfers of assets, Mr. Riazzi will receive 18
months base salary plus the greater of two times the most recent annual bonus or
two times the average annual bonus for the three previous years, subject to any
limitations provided by Section 280G of the Internal Revenue Code.
IDACORP entered into Change of Control Agreements with the Named Officers
in September 1999, which become effective for a three-year period upon a change
of control of IDACORP. If a change of control occurs, the Agreements provide
that specified payments and benefits would be paid in the event of termination
of the Executive's employment (i) by IDACORP, other than for cause, death or
disability, or (ii) by the Executive for constructive discharge or retirement,
at any time when the Agreements are in effect. In such event, each of the Named
Officers would receive payment of an amount equal to two and
22
one-half times his annual compensation, which shall be the highest combined
amount of base salary and bonus received by the Named Officer in any one of the
five years preceding termination. In addition, under these Agreements, each of
the Named Officers would receive (i) the immediate vesting of restricted stock
granted prior to the change in control; (ii) outplacement services for 12 months
not to exceed $12,000; and (iii) all benefits for a period of 24 months under
the welfare benefit plans.
For these purposes "cause" means the Executive's fraud or dishonesty which
has resulted or is likely to result in material economic damage to IDACORP or a
subsidiary of IDACORP, as determined in good faith by a vote of at least
two-thirds of the non-employee directors of IDACORP at a meeting of the Board at
which the Executive is provided an opportunity to be heard. "Constructive
discharge" includes material failure by IDACORP to comply with the Agreement,
relocation, and certain reduction in compensation or benefits.
A "change of control" is defined as (i) the acquisition by a party or
certain related parties of 20% or more of IDACORP's voting securities; (ii) a
purchase by a person of 20% or more of the outstanding stock pursuant to a
tender or exchange offer; (iii) shareholder approval of a merger or similar
transaction after which IDACORP's shareholders will hold 50% or less of the
voting securities of the surviving entity or (iv) a change in a majority of the
Board of Directors within a 24-month period without the approval of two-thirds
of the members of the Board.
23
PERFORMANCE GRAPH
SOURCE: ZACKS INVESTMENT RESEARCH, INC.BLOOMBERG AND EDISON ELECTRIC INSTITUTE
COMPARISON OF CUMULATIVE TOTAL RETURN
$100 INVESTED DECEMBER 31, 1994
[GRAPH]1996
[ PERFORMANCE GRAPH ]
The table shows a Comparison of Five-Year Cumulative Total Shareholder
Return for IDACORP Common Stock, the S&P 500 Index and the Edison Electric
Institute (EEI) 100 Electric Utilities Index. The data assumes that $100 was
invested on December 31, 1994,1996, with beginning-of-period weighting of the peer
group indices (based on market capitalization) and monthly compounding of
returns. As of October 1, 1998, all outstanding shares of Idaho Power common
stock were exchanged on a share-for-share basis for IDACORP common stock.
EEI 100
IDACORP S & P 500 ELECTRIC UTILITIES
-------- --------- ------------------
1994 $100.00 $100.00 $100.00
1995 137.37 137.58 131.02
1996 151.51 169.17 132.59
1997 194.34 225.60 168.88
1998 197.74 290.08 192.34
1999 155.40 351.12 156.57
EEI 100
IDACORP S & P 500 ELECTRIC UTILITIES
------- --------- ------------------
1996 $100.00 $100.00 $100.00
1997 128.27 133.35 127.37
1998 130.50 171.46 145.06
1999 102.56 207.54 118.08
2000 196.88 188.65 174.72
2001 171.03 166.24 159.37
24
RETIREMENT BENEFITS
The following table sets forth the estimated annual retirement benefits payable
under the Idaho Power Retirement Plan (a qualified defined benefit pension plan
for all regular employees) and under the Idaho Power Security Plan for Senior
Management Employees (a non-qualified defined benefit plan for senior management
employees). The plans cover employees of IDACORP and Idaho Power.
24
PENSION PLAN TABLE
YEARS OF SERVICE
---------------------------------------------------------------
REMUNERATION YEARS OF SERVICE
- ------------- ------------------------------------------------------------
10 15 20 25 30 35 40
- ------------ -------- -------- -------- -------- -------- --------
$ 75,000 $ 45,000 $ 48,750 $ 52,500 $ 56,250 $ 56,250 $ 56,250
$100,000 $ 60,000 $ 65,000 $ 70,000 $ 75,000 $ 75,000 $ 75,000
$125,000 $ 75,000 $ 81,250 $ 87,500 $ 93,750 $ 93,750 $ 93,750
$150,000 $ 90,000 $ 97,500 $105,000 $112,500 $112,500 $112,500
$175,000 $105,000 $113,750 $122,500 $131,250 $131,250 $131,250
$200,000 $120,000 $130,000 $140,000 $150,000 $150,000 $150,000
$225,000 $135,000 $146,250 $157,500 $168,750 $168,750 $168,750
$250,000 $150,000 $162,500 $175,000 $187,500 $187,500 $187,500
$275,000 $165,000 $178,750 $192,500 $206,250 $206,250 $206,250
$300,000 $180,000 $195,000 $210,000 $225,000 $225,000 $225,000
$325,000 $195,000 $211,250 $227,500 $243,750 $243,750 $243,750
$350,000 $210,000 $227,500 $245,000 $262,500 $262,500 $262,500
$375,000 $225,000 $243,750 $262,500 $281,250 $281,250 $281,250
$400,000 $240,000 $260,000 $280,000 $300,000 $300,000 $300,000
$450,000 $270,000 $292,500 $315,000 $337,500 $337,500 $337,500
$500,000 $300,000 $325,000 $350,000 $375,000 $375,000 $375,000
$550,000 $330,000 $357,500 $385,000 $412,500 $412,500 $412,500
$600,000 $360,000 $390,000 $420,000 $450,000 $450,000 $450,000
Benefits under the Retirement Plan for seniorExecutive management employees at normal
retirement age are calculated on years of credited service using the average of
the highest five consecutive years' salary plus bonus (as reported in the
Summary Compensation Table) in the last 10 years before retirement. Benefits
under the Security Plan for Senior Management Employees are based upon a similar
average of the highest five consecutive years of salary plus bonus in the last
10 years before retirement, a normal retirement age of 62 years, years of
participation as a senior management employee, and are payable over the
participant's lifetime. Generally, total retirement benefits from the Retirement
Plan and Security Plan for Senior Management Employees will range from 60
percent to 75 percent of the participant's average salary plus bonus in the
highest five consecutive years in the last 10 years of employment. The Security
PlanIdaho Power
has established a trust which is financed bymade up of trust owned life insurance, onstocks
and fixed income securities, the participants and is designed so that
if assumptions made asvalue of which are sufficient to mortality expectation, policy dividends and other
factors are realized, Idaho Power will recovercover the
costliabilities of this plan.the Security Plan. Effective August 1, 1996, Idaho Power
terminated its Supplemental Employee Retirement Plan (a non-qualified plan that
provided benefits that would otherwise have been denied participants by reason
of certain Internal Revenue Code limitations on qualified plan benefits).
Benefits payable from the Retirement Plan and the Security Plan are included in
the table above. Benefits shown above are not subject to any deduction for
Social Security benefits or other offset amounts.
As of December 31, 1999,2001, the final five-year average salary plus bonus
under the retirement plans as referred to above for the Executive Officers named
in the Summary Compensation Table are: Mr. Marshall, $473,639; Mr. Packwood, $256,443;$432,365; Mr. Keen,
$209,136;$282,978; Mr. Riazzi, $233,477; Mr. Runyan, $231,423;$283,827; Mr. Miller, $127,239;$188,902; and
25
Mr. Stahman, $163,884.$194,390. Years of credited service under the Retirement Plan and
years of participation as a senior management employee are, respectively: Mr.
Marshall, 30, 22; Mr. Packwood, 30, 23;31, 25; Mr. Keen, 26, 17;
Mr. Runyan, 15, 10;28, 19; Mr. Miller 23, 10;25, 14; Mr. Riazzi 5, 5; and Mr.
Stahman 22, 17. Mr. Riazzi has
three years of credited service, but has not vested in the plan.24, 19.
ANNUAL REPORT
IDACORP's 19992001 annual report to shareholders, including financial
statements for 1997, 19981999, 2000 and 1999,2001, was mailed on or about March 30, 2000,April 8, 2002 to all
shareholders of record. Idaho Power financial statements for 1997, 19981999, 2000 and 19992001
included in the jointits Annual Report on Form 10-K were mailed to Idaho Power
shareholders of record on or about March 30, 2000.
25
2001April 8, 2002.
IDACORP hereby undertakes to deliver promptly, upon written or oral
request, a separate copy of the annual report to shareholders, or proxy
statement, as applicable, to an IDACORP shareholder at a shared address to which
a single copy of the document was delivered. Idaho Power hereby undertakes to
deliver promptly, upon written or oral request, a separate copy of the Idaho
Power financial statements, or proxy statement, as applicable, to an Idaho Power
shareholder at a shared address to which a single copy of the document was
delivered. Requests should be addressed to Shareowner Services, 1221 West Idaho
Street, Boise, Idaho 83702, telephone 1-800-635-5406.
2002 JOINT ANNUAL MEETING OF SHAREHOLDERS
Nominations for Director may be made only by the Board of Directors or by
a shareholder entitled to vote who has delivered written notice to the Secretary
of IDACORP or Idaho Power, as the case may be, not earlier than 90 days, and not
later than 60 days, prior to the first anniversary of this annual meeting.
Rule 14a-4 of the Securities and Exchange Commission's proxy rules allows
a company to use discretionary voting authority to vote on matters coming before
an annual meeting of shareholders, if the company does not have notice of the
matter at least 45 days before the date corresponding to the date on which the
company first mailed its proxy materials for prior year's annual meeting of
shareholders or the date specified by an advance notice provision in the
company's bylaws. The Bylaws of IDACORP and Idaho Power contain such an advance
notice provision. Under the Bylaws, no business may be brought before an annual
meeting of the shareholders except as specified in the notice of the meeting or
as otherwise properly brought before the meeting by or at the direction of the
Board or by a shareholder entitled to vote who has delivered written notice to
the Secretary of IDACORP or Idaho Power, as the case may be, not earlier than 90
days, and not later than 60 days, prior to the first anniversary of this annual
meeting.
For the 20012003 Joint Annual Meeting of Shareholders, expected to be held on
May 17, 2001,15, 2003, IDACORP and Idaho Power shareholders must submit such nominations
or proposals to the Secretary of IDACORP or Idaho Power, as the case may be, no
earlier than February 9, 200114, 2003 and no later than March 12, 2001.17, 2003.
The requirements referred to above are separate and apart from the
Securities and Exchange Commission's requirements that a shareholder must meet
in order to have a shareholder proposal included in the proxy statement under
Rule 14a-8. For the 20012003 Joint Annual Meeting of Shareholders expected to be
held on May 17, 2001,15, 2003, any shareholder who wishes to submit a proposal for
inclusion in the joint proxy materials pursuant to Rule 14a-8 must submit such
proposal to the Secretary of IDACORP or Idaho Power, as the case may be, on or
before November 30, 2000.December 9, 2002.
IT IS REQUESTED THAT EACH SHAREHOLDER WHO CANNOT ATTEND THE MEETING SEND INVOTE
HIS OR HER PROXY OR PROXIES WITHOUT DELAY.
26
EXHIBIT A
IDACORP, INC.
2000 LONG-TERM INCENTIVE AND COMPENSATION PLAN
ARTICLE 1. ESTABLISHMENT, PURPOSE AND DURATION
1.1 ESTABLISHMENT OF THE PLAN. IDACORP, Inc., an Idaho corporation
(hereinafter referred to as the "Company"), hereby establishes an incentive and
compensation plan for officers, key employees and directors, to be known as the
"IDACORP, Inc. 2000 Long-Term Incentive and Compensation Plan" (hereinafter
referred to as the "Plan"), as set forth in this document. The Plan permits the
grant of nonqualified stock options (NQSO), incentive stock options (ISO), stock
appreciation rights (SAR), restricted stock, restricted stock units, performance
units, performance shares and other awards.
The Plan shall become effective when approved by the shareholders at the
2000 Annual Meeting of Shareholders (the "Effective Date") and shall remain in
effect as provided in Section 1.3 herein.
1.2 PURPOSE OF THE PLAN. The purpose of the Plan is to promote the success
and enhance the value of the Company by linking the personal interests of
Participants to those of Company shareholders and customers.
The Plan is further intended to provide flexibility to the Company in its
ability to motivate, attract and retain the services of Participants upon whose
judgment, interest and special effort the successful conduct of its operations
is largely dependent.
1.3 DURATION OF THE PLAN. The Plan shall commence on the Effective Date,
as described in Section 1.1 herein, and shall remain in effect, subject to the
right of the Board of Directors to terminate the Plan at any time pursuant to
Article 15 herein, until all Shares subject to it shall have been purchased or
acquired according to the Plan's provisions.
ARTICLE 2. DEFINITIONS
Whenever used in the Plan, the following terms shall have the meanings set
forth below and, when such meaning is intended, the initial letter of the word
is capitalized:
2.1 AWARD means, individually or collectively, a grant under the Plan of
NQSOs, ISOs, SARs, Restricted Stock, Restricted Stock Units, Performance Units,
Performance Shares or any other type of award permitted under Article 10 of the
Plan.
2.2 AWARD AGREEMENT means an agreement entered into by each Participant and
the Company, setting forth the terms and provisions applicable to an Award
granted to a Participant under the Plan.
2.3 BASE VALUE of an SAR shall have the meaning set forth in Section 7.1
herein.
2.4 BOARD OR BOARD OF DIRECTORS means the Board of Directors of the
Company.
2.5 CHANGE IN CONTROL means the earliest of the following to occur:
(a) the public announcement by the Company or by any person (which
shall not include the Company, any subsidiary of the Company or any employee
benefit plan of the Company or of any subsidiary of the Company) ("Person")
that such Person, who or which, together with all Affiliates and Associates
(within the meanings ascribed to such terms in Rule 12b-2 of the Exchange
Act) of such Person, shall be the beneficial owner of twenty percent (20%)
or more of the voting stock then outstanding;
(b) the commencement of, or after the first public announcement of any
Person to commence, a tender or exchange offer the consummation of which
would result in any Person becoming the beneficial owner of voting stock
aggregating thirty percent (30%) or more of the then outstanding voting
stock;
ANNUAL MEETING OF SHAREHOLDERS
Thursday, May 16, 2002
[ LOGO ] Idaho Power 10:00 a.m. Local Time
Idaho Power Corporate Headquarters
1221 West Idaho Street
Boise, Idaho 83707
- -----------------------------------------------------------------------------------------------------------------------------
INSTRUCTIONS FOR VOTING YOUR PROXY
We are now offering shareholders three alternative ways of voting this proxy:
o BY TELEPHONE (using a touch-tone telephone) o THROUGH THE INTERNET (using a browser) o BY MAIL (traditional method)
Your telephone or Internet vote authorizes the named proxies to vote your shares in the same manner as if you had
returned your proxy card. We encourage you to use these cost effective and convenient ways of voting, 24 hours
a day, 7 days a week.
/ TELEPHONE VOTING / Available until 5:00 p.m. Eastern time on May 15, 2002
o This method of voting is available for residents of the U.S. and Canada
o On a touch-tone telephone, call TOLL FREE 1-800-858-0073, 24 hours a day, 7 days a week
o You will be asked to enter ONLY the CONTROL NUMBER shown below
o Have your proxy card ready, then follow the prerecorded instructions
o Your vote will be confirmed and cast as you directed
/ INTERNET VOTING / Available until 5:00 p.m. Eastern time on May 15, 2002
o Visit the Internet voting Website at HTTP://PROXY.GEORGESON.COM
o Enter the COMPANY NUMBER AND CONTROL NUMBER shown below and follow the instructions on your screen
o You will incur only your usual internet charges
/ VOTING BY MAIL /
o Simply mark, sign and date your proxy card and return it in the postage-paid envelope
o If you are voting by telephone or the Internet, please do not mail your proxy card
The Company has been advised by counsel that the procedures for Internet and Telephonic voting are consistent with the
requirements of applicable laws.
/ COMPANY NUMBER / / CONTROL NUMBER /
- -----------------------------------------------------------------------------------------------------------------------------
/ X / PLEASE MARK VOTES
AS IN THIS EXAMPLE.
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THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR" PROPOSALS 1 AND 2
-----------------------------------------------------------------------------------------------------------------------
1. ELECTION OF DIRECTORS: Nominees:
01 Roger L. Breezley 02 John B. Carley FOR all nominees listed WITHHOLD
03 Jack K. Lemley 04 Evelyn Loveless (except as indicated to authority to vote
the contrary) for all nominees
INSTRUCTIONS: To withhold authority to vote for any individual / / / /
nominee(s), write the name(s) of such nominee(s) in the space
provided below.
FOR AGAINST ABSTAIN
2. To ratify the selection of Deloitte & Touche LLP as independent / / / / / /
auditor for the fiscal year ending December 31, 2002
----------------------------------------------------------------------
DATE:
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Signature(s) in Box
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Signature of Joint Owner
(c) the announcement of any transaction relating to the Company
required to be described pursuant to the requirements of Item 6(e) of
Schedule 14A of Regulation 14A of the Securities and Exchange Commission
under the Exchange Act;
(d) a proposed change in the constituency of the Board such that,
during any period of two (2) consecutive years, individuals who at the
beginning of such period constitute the Board cease for any reason to
constitute at least a majority thereof, unless the election or nomination
for election by the shareholders of the Company of each new director was
approved by a vote of at least two-thirds ( 2/3) of the directors then still
in office who were members of the Board at the beginning of the period;
(e) the Company enters into an agreement of merger, consolidation,
share exchange or similar transaction with any other corporation other than
a transaction which would result in the Company's voting stock outstanding
immediately prior to the consummation of such transaction continuing to
represent (either by remaining outstanding or by being converted into voting
stock of the surviving entity) at least two-thirds of the combined voting
power of the Company's or such surviving entity's outstanding voting stock
immediately after such transaction;
(f) the Board approves a plan of liquidation or dissolution of the
Company or an agreement for the sale or disposition by the Company (in one
transaction or a series of transactions) of all or substantially all of the
Company's assets to a person or entity which is not an affiliate of the
Company other than a transaction(s) for the purpose of dividing the
Company's assets into separate distribution, transmission or generation
entities or such other entities as the Company may determine; or
(g) any other event which shall be deemed by a majority of the
Executive Committee of the Board to constitute a "Change in Control."
2.6 CODE means the Internal Revenue Code of 1986, as amended from time to
time.
2.7 COMMITTEE means the committee, as specified in Article 3, appointed by
the Board to administer the Plan with respect to Awards.
2.8 COMPANY means IDACORP, Inc., an Idaho corporation, or any successor
thereto as provided in Article 17 herein.
2.9 COVERED EMPLOYEE means any Participant who would be considered a
"covered employee" for purposes of Section 162(m) of the Code.
2.10 DIRECTOR means any individual who is a member of the Board of
Directors of the Company.
2.11 DISABILITY means the continuous inability of an Employee because of
illness or injury to engage in any occupation or employment for wage or profit
with the Company or any other employer (including self-employment) for which he
is reasonably qualified by education, training or experience. An Employee will
not be considered disabled during any period unless he is under the regular care
and attendance of a duly qualified physician.
2.12 DIVIDEND EQUIVALENT means, with respect to Shares subject to an Award,
a right to be paid an amount equal to dividends declared on an equal number of
outstanding Shares.
2.13 ELIGIBLE PERSON means a Person who is eligible to participate in the
Plan, as set forth in Section 5.1 herein.
2.14 EMPLOYEE means an individual who is paid on the payroll of the Company
or of the Company's Subsidiaries, who is not covered by any collective
bargaining agreement to which the Company or any of its Subsidiaries is a party,
and is classified in the payroll system as a regular full-time, part-time or
temporary employee. For purposes of the Plan, transfer of employment of a
Participant between the Company and any one of its Subsidiaries (or between
Subsidiaries) shall not be deemed a termination of employment.
2
2.15 EXCHANGE ACT means the Securities Exchange Act of 1934, as amended
from time to time, or any successor act thereto.
2.16 EXERCISE PERIOD means the period during which an SAR or Option is
exercisable, as set forth in the related Award Agreement.
2.17 FAIR MARKET VALUE means the average of the high and low sale prices as
reported in the consolidated transaction reporting system, or, if there was no
such sale on the relevant date, then on the last previous day on which a sale
was reported.
2.18 FREESTANDING SAR means an SAR that is not a Tandem SAR.
2.19 INCENTIVE STOCK OPTION or ISO means an option to purchase Shares,
granted under Article 6 herein, which is designated as an Incentive Stock Option
and satisfies the requirements of Section 422 of the Code.
2.20 NONQUALIFIED STOCK OPTION or NQSO means an option to purchase Shares,
granted under Article 6 herein, which is not intended to be an Incentive Stock
Option under Section 422 of the Code.
2.21 OPTION means an Incentive Stock Option or a Nonqualified Stock Option.
2.22 OPTION EXERCISE PRICE means the price at which a Share may be
purchased by a Participant pursuant to an Option, as determined by the Committee
and set forth in the Option Award Agreement.
2.23 PARTICIPANT means an Eligible Person who has outstanding an Award
granted under the Plan.
2.24 PERFORMANCE GOALS means the performance goals established by the
Committee, which shall be based on one or more of the following measures: sales
or revenues, earnings per share, shareholder return and/or value, funds from
operations, operating income, gross income, net income, cash flow, return on
equity, return on capital, earnings before interest, operating ratios, stock
price, customer satisfaction, accomplishment of mergers, acquisitions,
dispositions or similar extraordinary business transactions, profit returns and
margins, financial return ratios and/or market performance. Performance goals
may be measured solely on a corporate, subsidiary or business unit basis, or a
combination thereof. Performance goals may reflect absolute entity performance
or a relative comparison of entity performance to the performance of a peer
group of entities or other external measure.
2.25 PERFORMANCE PERIOD means the time period during which Performance
Unit/Performance Share Performance Goals must be met.
2.26 PERFORMANCE SHARE means an Award described in Article 9 herein.
2.27 PERFORMANCE UNIT means an Award described in Article 9 herein.
2.28 PERIOD OF RESTRICTION means the period during which the transfer of
Restricted Stock is limited in some way, as provided in Article 8 herein.
2.29 PERSON shall have the meaning ascribed to such term in
Section 3(a)(9) of the Exchange Act, as used in Sections 13(d) and 14(d)
thereof, including usage in the definition of a "group" in Section 13(d)
thereof.
2.30 PLAN means the IDACORP, Inc. 2000 Long-Term Incentive and Compensation
Plan.
2.31 QUALIFIED RESTRICTED STOCK means an Award of Restricted Stock
designated as Qualified Restricted Stock by the Committee at the time of grant
and intended to qualify for the exemption from the limitation on deductibility
imposed by Section 162(m) of the Code that is set forth in
Section 162(m)(4)(C).
2.32 QUALIFIED RESTRICTED STOCK UNIT means an Award of Restricted Stock
Units designated as Qualified Restricted Stock Units by the Committee at the
time of grant and intended to qualify for the
3
exemption from the limitation on deductibility imposed by Section 162(m) of the
Code that is set forth in Section 162(m)(4)(C).
2.33 RESTRICTED STOCK means an Award described in Article 8 herein.
2.34 RESTRICTED STOCK UNIT means an Award described in Article 8 herein.
2.35 RETIREMENT means a Participant's termination from employment with the
Company or a Subsidiary at the Participant's Early or Normal Retirement Date, as
applicable.
(a) EARLY RETIREMENT DATE -- shall mean the date on which a Participant
terminates employment, if such termination date occurs on or after
Participant's attainment of age fifty-five (55) but prior to
Participant's Normal Retirement Date.
(b) NORMAL RETIREMENT DATE -- shall mean the date on which the Participant
terminates employment, if such termination date occurs on or after the
Participant attains age sixty-two (62).
2.36 SECURITIES ACT means the Securities Act of 1933, as amended.
2.37 SHARES means the shares of common stock, no par value, of the Company.
2.38 STOCK APPRECIATION RIGHT or SAR means a right, granted alone or in
connection with a related Option, designated as an SAR, to receive a payment on
the day the right is exercised, pursuant to the terms of Article 7 herein. Each
SAR shall be denominated in terms of one Share.
2.39 SUBSIDIARY means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company if each of the
corporations other than the last corporation in the unbroken chain owns stock
possessing 50 percent or more of the total combined voting power of all classes
of stock in one of the other corporations in such chain.
2.40 TANDEM SAR means an SAR that is granted in connection with a related
Option, the exercise of which shall require forfeiture of the right to purchase
a Share under the related Option (and when a Share is purchased under the
Option, the Tandem SAR shall be similarly canceled).
ARTICLE 3. ADMINISTRATION
3.1 THE COMMITTEE. The Plan shall be administered by the Compensation
Committee or such other committee (the "Committee") as the Board of Directors
shall select consisting solely of two or more members of the Board. The members
of the Committee shall be appointed from time to time by, and shall serve at the
discretion of, the Board of Directors.
3.2 AUTHORITY OF THE COMMITTEE. The Committee shall have full power except
as limited by law, the Articles of Incorporation or the Bylaws of the Company,
subject to such other restricting limitations or directions as may be imposed by
the Board and subject to the provisions herein, to determine the Eligible
Persons to receive Awards; to determine the size and types of Awards; to
determine the terms and conditions of such Awards; to construe and interpret the
Plan and any agreement or instrument entered into under the Plan; to establish,
amend or waive rules and regulations for the Plan's administration; and (subject
to the provisions of Article 15 herein) to amend the terms and conditions of any
outstanding Award. Further, the Committee shall make all other determinations
which may be necessary or advisable for the administration of the Plan. As
permitted by law, the Committee may delegate its authorities as identified
hereunder.
3.3 RESTRICTIONS ON DISTRIBUTION OF SHARES AND SHARE
TRANSFERABILITY. Notwithstanding any other provision of the Plan, the Company
shall have no liability to deliver any Shares or benefits under the Plan unless
such delivery would comply with all applicable laws (including, without
limitation, the Securities Act) and applicable requirements of any securities
exchange or similar entity and unless the Participant's tax obligations have
been satisfied as set forth in Article 16. The Committee may impose such
restrictions
4
on any Shares acquired pursuant to Awards under the Plan as it may deem
advisable, including, without limitation, restrictions to comply with applicable
Federal securities laws, with the requirements of any stock exchange or market
upon which such Shares are then listed and/or traded and with any blue sky or
state securities laws applicable to such Shares.
3.4 DECISIONS BINDING. All determinations and decisions made by the
Committee pursuant to the provisions of the Plan and all related orders or
resolutions of the Board shall be final, conclusive and binding on all persons,
including the Company, its shareholders, Eligible Persons, Employees,
Participants and their estates and beneficiaries.
3.5 COSTS. The Company shall pay all costs of administration of the Plan.
ARTICLE 4. SHARES SUBJECT TO THE PLAN
4.1 NUMBER OF SHARES. Subject to Section 4.2 herein, the maximum number of
Shares available for grant under the Plan shall be 750,000. Shares underlying
lapsed or forfeited Awards, or Awards that are not paid in Shares, may be reused
for other Awards; if the Option Exercise Price is satisfied by tendering Shares,
only the number of Shares issued net of the Shares tendered shall be deemed
issued under the Plan. Shares granted pursuant to the Plan may be
(i) authorized but unissued Shares of common stock, (ii) treasury shares or
(iii) Shares purchased on the open market.
4.2 ADJUSTMENTS IN AUTHORIZED SHARES AND AWARDS. In the event of any
merger, reorganization, consolidation, recapitalization, liquidation, stock
dividend, split-up, spin-off, stock split, reverse stock split, share
combination, share exchange or other change in the corporate structure of the
Company affecting the Shares, such adjustment shall be made in the outstanding
Awards, the number and class of Shares which may be delivered under the Plan,
and in the number and class of and/or price of Shares subject to outstanding
Awards granted under the Plan, as may be determined to be appropriate and
equitable by the Committee, in its sole discretion, to prevent dilution or
enlargement of rights. Notwithstanding the foregoing, (i) each such adjustment
with respect to an Incentive Stock Option shall comply with the rules of
Section 424(a) of the Code and (ii) in no event shall any adjustment be made
which would render any Incentive Stock Option granted hereunder to be other than
an incentive stock option for purposes of Section 422 of the Code. In no event
shall the Committee have the right to amend an outstanding Option Award for the
sole purpose of reducing the exercise price thereof.
4.3 INDIVIDUAL LIMITATIONS. Subject to Section 4.2 above, (i) the total
number of Shares with respect to which Options or SARs may be granted in any
calendar year to any Covered Employee shall not exceed 100,000 Shares; (ii) the
total number of Qualified Restricted Stock Shares or Qualified Restricted Stock
Units that may be granted in any calendar year to any Covered Employee shall not
exceed 100,000 Shares or Units, as the case may be; (iii) the total number of
Performance Shares or Performance Units that may be granted in any calendar year
to any Covered Employee shall not exceed 100,000 Shares or Units, as the case
may be; (iv) the total number of Shares that are intended to qualify for
deduction under Section 162(m) of the Code granted pursuant to Article 10 herein
in any calendar year to any Covered Employee shall not exceed 100,000 Shares;
(v) the total cash Award that is intended to qualify for deduction under
Section 162(m) of the Code that may be paid pursuant to Article 10 herein in any
calendar year to any Covered Employee shall not exceed $300,000; and (vi) the
aggregate number of Dividend Equivalents that are intended to qualify for
deduction under Section 162(m) of the Code that a Covered Employee may receive
in any calendar year shall not exceed 400,000.
ARTICLE 5. ELIGIBILITY AND PARTICIPATION
5.1 ELIGIBILITY. Persons eligible to participate in the Plan ("Eligible
Persons") include all officers, key employees and directors of the Company and
its Subsidiaries, as determined by the Committee.
5
5.2 ACTUAL PARTICIPATION. Subject to the provisions of the Plan, the
Committee may, from time to time, select from all Eligible Persons those to whom
Awards shall be granted.
ARTICLE 6. STOCK OPTIONS
6.1 GRANT OF OPTIONS. Subject to the terms and conditions of the Plan,
Options may be granted to an Eligible Person at any time and from time to time,
as shall be determined by the Committee.
The Committee shall have complete discretion in determining the number of
Shares subject to Options granted to each Eligible Person (subject to Article 4
herein) and, consistent with the provisions of the Plan, in determining the
terms and conditions pertaining to such Options. The Committee may grant ISOs,
NQSOs or a combination thereof.
6.2 OPTION AWARD AGREEMENT. Each Option grant shall be evidenced by an
Option Award Agreement that shall specify the Option Exercise Price, the term of
the Option, the number of Shares to which the Option pertains, the Exercise
Period and such other provisions as the Committee shall determine, including but
not limited to any rights to Dividend Equivalents. The Option Award Agreement
shall also specify whether the Option is intended to be an ISO or a NQSO.
6.3 EXERCISE OF AND PAYMENT FOR OPTIONS. Options granted under the Plan
shall be exercisable at such times and shall be subject to such restrictions and
conditions as the Committee shall in each instance approve.
A Participant may exercise an Option at any time during the Exercise Period.
Options shall be exercised by the delivery of a written notice of exercise to
the Company, setting forth the number of Shares with respect to which the Option
is to be exercised, accompanied by provision for full payment for the Shares.
The Option Exercise Price shall be payable: (a) in cash or its equivalent,
(b) by tendering previously acquired Shares having an aggregate Fair Market
Value at the time of exercise equal to the total Option Exercise Price, (c) by
broker-assisted cashless exercise or (d) by a combination of (a), (b) and/or
(c).
6.4 TERMINATION. Each Option Award Agreement shall set forth the extent to
which the Participant shall have the right to exercise the Option following
termination of the Participant's employment with or service on the Board of the
Company and its Subsidiaries. Such provisions shall be determined in the sole
discretion of the Committee (subject to applicable law), shall be included in
the Option Award Agreement entered into with Participants, need not be uniform
among all Options granted pursuant to the Plan or among Participants and may
reflect distinctions based on the reasons for termination.
6.5 TRANSFERABILITY OF OPTIONS. Except as otherwise determined by the
Committee, all Options granted to a Participant under the Plan shall be
exercisable during his or her lifetime only by such Participant, and no Option
granted under the Plan may be sold, transferred, pledged, assigned, or otherwise
alienated or hypothecated, other than by will or by the laws of descent and
distribution. ISOs are not transferable other than by will or by the laws of
descent and distribution.
ARTICLE 7. STOCK APPRECIATION RIGHTS
7.1 GRANT OF SARS. Subject to the terms and conditions of the Plan, an SAR
may be granted to an Eligible Person at any time and from time to time as shall
be determined by the Committee. The Committee may grant Freestanding SARs,
Tandem SARs or any combination of these forms of SARs.
The Committee shall have complete discretion in determining the number of
SARs granted to each Eligible Person (subject to Article 4 herein) and,
consistent with the provisions of the Plan, in determining the terms and
conditions pertaining to such SARs.
6
The Base Value of a Freestanding SAR shall equal the Fair Market Value of a
Share on the date of grant of the SAR. The Base Value of Tandem SARs shall equal
the Option Exercise Price of the related Option.
7.2 SAR AWARD AGREEMENT. Each SAR grant shall be evidenced by an SAR Award
Agreement that shall specify the number of SARs granted, the Base Value, the
term of the SAR, the Exercise Period and such other provisions as the Committee
shall determine.
7.3 EXERCISE AND PAYMENT OF SARS. Tandem SARs may be exercised for all or
part of the Shares subject to the related Option upon the surrender of the right
to exercise the equivalent portion of the related Option. A Tandem SAR may be
exercised only with respect to the Shares for which its related Option is then
exercisable.
Notwithstanding any other provision of the Plan to the contrary, with
respect to a Tandem SAR granted in connection with an ISO: (i) the Tandem SAR
will expire no later than the expiration of the underlying ISO; (ii) the value
of the payout with respect to the Tandem SAR may be for no more than one hundred
percent (100%) of the difference between the Option Exercise Price of the
underlying ISO and the Fair Market Value of the Shares subject to the underlying
ISO at the time the Tandem SAR is exercised; and (iii) the Tandem SAR may be
exercised only when the Fair Market Value of the Shares subject to the ISO
exceeds the Option Exercise Price of the ISO.
Freestanding SARs may be exercised upon whatever terms and conditions the
Committee, in its sole discretion, imposes upon them.
A Participant may exercise an SAR at any time during the Exercise Period.
SARs shall be exercised by the delivery of a written notice of exercise to the
Company, setting forth the number of SARs being exercised. Upon exercise of an
SAR, a Participant shall be entitled to receive payment from the Company in an
amount equal to the product of:
(a) the excess of (i) the Fair Market Value of a Share on the date of
exercise over (ii) the Base Value multiplied by
(b) the number of Shares with respect to which the SAR is exercised.
At the sole discretion of the Committee, the payment to the Participant upon
SAR exercise may be in cash, in Shares of equivalent value or in some
combination thereof.
7.4 TERMINATION. Each SAR Award Agreement shall set forth the extent to
which the Participant shall have the right to exercise the SAR following
termination of the Participant's employment with or service on the Board of the
Company and its Subsidiaries. Such provisions shall be determined in the sole
discretion of the Committee, shall be included in the SAR Award Agreement
entered into with Participants, need not be uniform among all SARs granted
pursuant to the Plan or among Participants and may reflect distinctions based on
the reasons for termination.
7.5 TRANSFERABILITY OF SARS. Except as otherwise determined by the
Committee, all SARs granted to a Participant under the Plan shall be exercisable
during his or her lifetime only by such Participant or his or her legal
representative, and no SAR granted under the Plan may be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated, other than by will or
by the laws of descent and distribution.
ARTICLE 8. RESTRICTED STOCK AND RESTRICTED STOCK UNITS
8.1 GRANT OF RESTRICTED STOCK AND RESTRICTED STOCK UNITS. Subject to the
terms and conditions of the Plan, Restricted Stock and/or Restricted Stock Units
may be granted to an Eligible Person at any time and from time to time, as shall
be determined by the Committee.
The Committee shall have complete discretion in determining the number of
shares of Restricted Stock and/or Restricted Stock Units granted to each
Eligible Person (subject to Article 4 herein) and,
7
consistent with the provisions of the Plan, in determining the terms and
conditions pertaining to such Awards.
In addition, the Committee may, prior to or at the time of grant, designate
an Award of Restricted Stock or Restricted Stock Units as Qualified Restricted
Stock or Qualified Restricted Stock Units, as the case may be, in which event it
will condition the grant or vesting, as applicable, of such Qualified Restricted
Stock or Qualified Restricted Stock Units, as the case may be, upon the
attainment of the Performance Goals selected by the Committee.
8.2 RESTRICTED STOCK/RESTRICTED STOCK UNIT AWARD AGREEMENT. Each grant of
Restricted Stock and/or Restricted Stock Units grant shall be evidenced by a
Restricted Stock and/or Restricted Stock Unit Award Agreement that shall specify
the number of shares of Restricted Stock and/or Restricted Stock Units granted,
the initial value (if applicable), the Period or Periods of Restriction, and
such other provisions as the Committee shall determine.
8.3 TRANSFERABILITY. Restricted Stock and Restricted Stock Units granted
hereunder may not be sold, transferred, pledged, assigned, or otherwise
alienated or hypothecated until the end of the applicable Period of Restriction
established by the Committee and specified in the Award Agreement. During the
applicable Period of Restriction, all rights with respect to the Restricted
Stock and Restricted Stock Units granted to a Participant under the Plan shall
be available during his or her lifetime only to such Participant or his or her
legal representative.
8.4 CERTIFICATES. No certificates representing Stock shall be issued until
such time as all restrictions applicable to such Shares have been satisfied.
8.5 REMOVAL OF RESTRICTIONS. Restricted Stock shall become freely
transferable by the Participant after the last day of the Period of Restriction
applicable thereto. Once Restricted Stock is released from the restrictions, the
Participant shall be entitled to receive a certificate. Payment of Restricted
Stock Units shall be made after the last day of the Period of Restriction
applicable thereto. The Committee, in its sole discretion, may pay Restricted
Stock Units in cash or in Shares (or in a combination thereof), which have an
aggregate Fair Market Value equal to the value of the Restricted Stock Units.
8.6 VOTING RIGHTS. During the Period of Restriction, Participants may
exercise full voting rights with respect to the Restricted Stock.
8.7 DIVIDENDS AND OTHER DISTRIBUTIONS. Subject to the Committee's right to
determine otherwise at the time of grant, during the Period of Restriction,
Participants shall receive all regular cash dividends paid with respect to the
Shares while they are so held. All other distributions paid with respect to such
Restricted Stock shall be credited to Participants subject to the same
restrictions on transferability and forfeitability as the Restricted Stock with
respect to which they were paid and shall be paid to the Participant promptly
after the full vesting of the Restricted Stock with respect to which such
distributions were made.
Rights, if any, to Dividend Equivalents on Restricted Stock Units shall be
established by the Committee at the time of grant and set forth in the Award
Agreement.
8.8 TERMINATION. Each Restricted Stock/Restricted Stock Unit Award
Agreement shall set forth the extent to which the Participant shall have the
right to receive Restricted Stock and/or a Restricted Stock Unit payment
following termination of the Participant's employment with or service on the
Board of the Company and its Subsidiaries. Such provisions shall be determined
in the sole discretion of the Committee, shall be included in the Award
Agreement entered into with Participants, need not be uniform among all grants
of Restricted Stock/Restricted Stock Units or among Participants and may reflect
distinctions based on the reasons for termination.
8
ARTICLE 9. PERFORMANCE UNITS AND PERFORMANCE SHARES
9.1 GRANT OF PERFORMANCE UNITS AND PERFORMANCE SHARES. Subject to the
terms and conditions of the Plan, Performance Units and/or Performance Shares
may be granted to an Eligible Person at any time and from time to time, as shall
be determined by the Committee.
The Committee shall have complete discretion in determining the number of
Performance Units and/or Performance Shares granted to each Eligible Person
(subject to Article 4 herein) and, consistent with the provisions of the Plan,
in determining the terms and conditions pertaining to such Awards.
9.2 PERFORMANCE UNIT/PERFORMANCE SHARE AWARD AGREEMENT. Each grant of
Performance Units and/or Performance Shares shall be evidenced by a Performance
Unit and/or Performance Share Award Agreement that shall specify the number of
Performance Units and/or Performance Shares granted, the initial value (if
applicable), the Performance Period, the Performance Goals and such other
provisions as the Committee shall determine, including but not limited to any
rights to Dividend Equivalents.
9.3 VALUE OF PERFORMANCE UNITS/PERFORMANCE SHARES. Each Performance Unit
shall have an initial value that is established by the Committee at the time of
grant. The value of a Performance Share shall be equal to the Fair Market Value
of a Share. The Committee shall set Performance Goals in its discretion which,
depending on the extent to which they are met, will determine the number and/or
value of Performance Units/Performance Shares that will be paid out to the
Participants.
9.4 EARNING OF PERFORMANCE UNITS/PERFORMANCE SHARES. After the applicable
Performance Period has ended, the Participant shall be entitled to receive a
payout with respect to the Performance Units/ Performance Shares earned by the
Participant over the Performance Period, to be determined as a function of the
extent to which the corresponding Performance Goals have been achieved.
9.5 FORM AND TIMING OF PAYMENT OF PERFORMANCE UNITS/PERFORMANCE
SHARES. Payment of earned Performance Units/Performance Shares shall be made
following the close of the applicable Performance Period. The Committee, in its
sole discretion, may pay earned Performance Units/Shares in cash or in Shares
(or in a combination thereof), which have an aggregate Fair Market Value equal
to the value of the earned Performance Units/Shares at the close of the
applicable Performance Period. Such Shares may be granted subject to any
restrictions deemed appropriate by the Committee.
9.6 TERMINATION. Each Performance Unit/Performance Share Award Agreement
shall set forth the extent to which the Participant shall have the right to
receive a Performance Unit/Performance Share payment following termination of
the Participant's employment with or service on the Board of the Company and its
Subsidiaries during a Performance Period. Such provisions shall be determined in
the sole discretion of the Committee, shall be included in the Award Agreement
entered into with Participants, need not be uniform among all grants of
Performance Units/Performance Shares or among Participants and may reflect
distinctions based on reasons for termination.
9.7 TRANSFERABILITY. Except as otherwise determined by the Committee, a
Participant's rights with respect to Performance Units/Performance Shares
granted under the Plan shall be available during the Participant's lifetime only
to such Participant or the Participant's legal representative and Performance
Units/Performance Shares may not be sold, transferred, pledged, assigned or
otherwise alienated or hypothecated, other than by will or by the laws of
descent and distribution.
ARTICLE 10. OTHER AWARDS
The Committee shall have the right to grant other Awards which may include,
without limitation, the grant of Shares based on attainment of Performance Goals
established by the Committee, the payment of Shares in lieu of cash or cash
based on attainment of Performance Goals established by the Committee, and the
payment of Shares in lieu of cash under other Company incentive or bonus
programs. Payment
9
under or settlement of any such Awards shall be made in such manner and at such
times as the Committee may determine.
ARTICLE 11. BENEFICIARY DESIGNATION
Each Participant under the Plan may, from time to time, name any beneficiary
or beneficiaries (who may be named contingently or successively) to whom any
benefit under the Plan is to be paid in case of the Participant's death before
the Participant receives any or all of such benefit. Each such designation shall
revoke all prior designations by the same Participant, shall be in a form
prescribed by the Company and will be effective only when filed by the
Participant in writing with the Company during the Participant's lifetime. In
the absence of any such designation, benefits remaining unpaid at the
Participant's death shall be paid to the Participant's estate.
The spouse of a married Participant domiciled in a community property
jurisdiction shall join in any designation of beneficiary or beneficiaries other
than the spouse.
ARTICLE 12. DEFERRALS
The Committee may permit a Participant to defer the Participant's receipt of
the payment of cash or the delivery of Shares that would otherwise be due to
such Participant under the Plan. If any such deferral election is permitted, the
Committee shall, in its sole discretion, establish rules and procedures for such
payment deferrals.
ARTICLE 13. RIGHTS OF PARTICIPANTS
13.1 TERMINATION. Nothing in the Plan shall interfere with or limit in any
way the right of the Company or any Subsidiary to terminate any Participant's
employment or other relationship with the Company or any Subsidiary at any time,
for any reason or no reason in the Company's or the Subsidiary's sole
discretion, nor confer upon any Participant any right to continue in the employ
of, or otherwise in any relationship with, the Company or any Subsidiary.
13.2 PARTICIPATION. No Eligible Person shall have the right to be selected
to receive an Award under the Plan, or, having been so selected, to be selected
to receive a future Award.
13.3 LIMITATION OF IMPLIED RIGHTS. Neither a Participant nor any other
Person shall, by reason of the Plan, acquire any right in or title to any
assets, funds or property of the Company or any Subsidiary whatsoever,
including, without limitation, any specific funds, assets or other property
which the Company or any Subsidiary, in their sole discretion, may set aside in
anticipation of a liability under the Plan. A Participant shall have only a
contractual right to the Shares or amounts, if any, payable under the Plan,
unsecured by any assets of the Company or any Subsidiary. Nothing contained in
the Plan shall constitute a guarantee that the assets of such companies shall be
sufficient to pay any benefits to any Person.
Except as otherwise provided in the Plan, no Award under the Plan shall
confer upon the holder thereof any right as a shareholder of the Company prior
to the date on which the individual fulfills all conditions for receipt of such
rights.
ARTICLE 14. CHANGE IN CONTROL
The terms of this Article 14 shall immediately become operative, without
further action or consent by any person or entity, upon a Change in Control, and
once operative shall supersede and take control over any other provisions of
this Plan.
Upon a Change in Control
(a) Any and all Options and SARs granted hereunder shall become immediately
vested and exercisable;
10
(b) Any restriction periods and restrictions imposed on Restricted Stock,
Restricted Stock Units, Qualified Restricted Stock or Qualified
Restricted Stock Units shall be deemed to have expired; any Performance
Goals shall be deemed to have been met at the target level; such
Restricted Stock and Qualified Restricted Stock shall become immediately
vested in full, and such Restricted Stock Units and Qualified Restricted
Stock Units shall be paid out in cash; and
(c) The target payout opportunity attainable under all outstanding Awards of
Performance Units and Performance Shares and any other Awards shall be
deemed to have been fully earned for the entire Performance Period(s) as
of the effective date of the Change in Control. All Awards shall become
immediately vested. All Performance Shares and other Awards denominated
in Shares shall be paid out in Shares, and all Performance Units and
other Awards shall be paid out in cash.
ARTICLE 15. AMENDMENT, MODIFICATION AND TERMINATION
15.1 AMENDMENT, MODIFICATION AND TERMINATION. The Board may, at any time
and from time to time, alter, amend, suspend or terminate the Plan in whole or
in part.
15.2 AWARDS PREVIOUSLY GRANTED. No termination, amendment or modification
of the Plan shall adversely affect in any material way any Award previously
granted under the Plan without the written consent of the Participant holding
such Award, unless such termination, modification or amendment is required by
applicable law and except as otherwise provided herein.
ARTICLE 16. WITHHOLDING
16.1 TAX WITHHOLDING. The Company shall have the power and the right to
deduct or withhold, or require a Participant to remit to the Company, an amount
(including any Shares withheld as provided below) sufficient to satisfy Federal,
state and local taxes (including the Participant's FICA obligation) required by
law to be withheld with respect to an Award made under the Plan.
16.2 SHARE WITHHOLDING. With respect to tax withholding required upon the
exercise of Options or SARs, upon the lapse of restrictions on Restricted Stock,
or upon any other taxable event arising out of or as a result of Awards granted
hereunder, Participants may elect to satisfy the withholding requirement, in
whole or in part, by tendering Shares held by the Participant or by having the
Company withhold Shares having a Fair Market Value equal to the minimum
statutory total tax which could be imposed on the transaction. All elections
shall be irrevocable, made in writing and signed by the Participant.
ARTICLE 17. SUCCESSORS
All obligations of the Company under the Plan, with respect to Awards
granted hereunder, shall be binding on any successor to the Company, whether the
existence of such successor is the result of a direct or indirect purchase,
merger, consolidation or otherwise of all or substantially all of the business
and/or assets of the Company.
ARTICLE 18. LEGAL CONSTRUCTION
18.1 GENDER AND NUMBER. Except where otherwise indicated by the context,
any masculine term used herein also shall include the feminine, the plural shall
include the singular and the singular shall include the plural.
18.2 SEVERABILITY. In the event any provision of the Plan shall be held
illegal or invalid for any reason, the illegality or invalidity shall not affect
the remaining parts of the Plan, and the Plan shall be construed and enforced as
if the illegal or invalid provision had not been included.
18.3 REQUIREMENTS OF LAW. The granting of Awards and the issuance of
Shares under the Plan shall be subject to all applicable laws, rules and
regulations, and to such approvals by any governmental agencies or national
securities exchanges as may be required.
18.4 GOVERNING LAW. To the extent not preempted by Federal law, the Plan,
and all agreements hereunder, shall be construed in accordance with, and
governed by, the laws of the State of Idaho.
11
[LOGO] IDACORP
JOINT PROXY STATEMENT
MEETING EXPECTATIONS IN A NEW CENTURY
[LOGO] IDAHO
POWER
-------------------
An IDACORP Company
NOTICE OF JOINT
ANNUAL MEETING
OF SHAREHOLDERS
10:00 A.M. LOCAL TIME
MAY 11, 2000
BOISE, IDAHO
BOISE CENTRE ON THE GROVE
850 WEST FRONT STREET
BOISE, IDAHO
IDACORP
Shareowner Services
P.O. Box 70
Boise, ID 83707
March 30, 2000
Dear Shareholders of IDACORP:
It is our pleasure to invite you to attend the upcoming 2000 joint annual
meeting of Shareholders of IDACORP and[ LOGO ] Idaho Power
Company to be held on May
11, 2000, at 10:00 A.M., local time, at the Boise Centre on the Grove, 850
West Front Street, Boise, Idaho. Your Board of Directors and management look
forward to personally greeting those shareholders able to attend.
Information about the business of the meeting and the nominees for election
as members of the Board of Directors is set forth in the Notice of Meeting and
the Joint Proxy Statement on the following pages. This year IDACORP, Inc. is
asking you to elect three Directors, to approve the IDACORP 2000 Long-Term
Incentive and Compensation Plan and to ratify the appointment of an
independent auditor for the fiscal year ending December 31, 2000.
Your Company is undergoing change and we will continue to rebuild our
organization to meet the challenges of a competitive future. Anticipating
and responding to the competitive future is critical to our continued success
in increasing the value of your investment. We will again share with you
changes in the utility industry and the rebuilding of our organization.
YOUR VOTE IS IMPORTANT. YOU CAN BE SURE YOUR SHARES ARE REPRESENTED AT THE
MEETING BY PROMPTLY RETURNING YOUR COMPLETED PROXY IN THE ENCLOSED ENVELOPE.
You may revoke your proxy prior to or at the meeting and may vote in person
if you wish.
Jon M. Miller Jan B. Packwood
Chairman of the Board President and Chief Executive Officer
IDACORP
This Proxy is solicited on Behalf of the Board of Directors.
Properly executed proxies will be voted as marked and, if not marked, proxies
received will be voted "For" proposal (1), election of management's nominees
for directors, "For" Proposal (2), approval of the IDACORP Long-Term
Incentive and Compensation Plan and "For" proposal (3), ratification of the
selection of Deloitte & Touche LLP as independent auditors for the fiscal
year 2000.
The undersigned hereby appoints Jan B. Packwood and Robert W. Stahman, and
each of them, proxies will full power of substitution of vote for the
undersigned at the Joint Annual Meeting of Shareholders of IDACORP, Inc. and
Idaho Power Company and at any adjournment thereof, on the matters set forth
in the Proxy Statement and such other matters as may come before the meeting;
and hereby directs that this proxy be voted in accordance with the
instructions herein.
Please date, sign and promptly mail in the self-addressed return envelope
which requires no postage if mailed in the United States. Please so indicate
following your signature if you are signing in a representative capacity. If
shares are held jointly, both owners should sign.
THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.
IDACORP, INC.
If you wish to have any comments forward to the
Company, you must mark this box and then write | |
your comments on the reverse side of this form.
The Board of Directors For Withhold For All
Recommends a vote FOR the All All Except
proposals regarding:
1. Election of Directors:
01) Peter T. Johnson;
02) Peter S. O'Neill;
03) Jan B. Packwood. | | | | | |
To withhold authority to vote, mark "For All Except" and write the nominee's
number on the line below.
- ------------------------------
2. Approve the IDACORP 2000 For Against Abstain
Long-Term Incentive and
Compensation Plan. | | | | | |
3. Ratification of the selection
of Deloitte & Touche LLP as
Independent Auditor for the
fiscal year ending
December 31, 2000 | | | | | |
- ------------------------------ ---------------------------------
Signature Date
- ------------------------------ ----------------------------------
Signature Date
IDAHO POWER
Shareowner Services
P.O. Box 70
Boise, ID 83707
March 30, 2000April 8, 2002
Dear Shareholders of Idaho Power Company:
It is our pleasure to invite you to attend the upcoming 20002002 joint annual
meeting of Shareholders of Idaho Power Company and IDACORP, Inc. to be
held on May 11, 2000,16, 2002, at 10:00 A.M., local time, at the Boise Centre on the Grove, 850Idaho Power
Corporate Headquarters, 1221 West FrontIdaho Street, Boise, Idaho. Your Board
of Directors and management look forward to personally greeting those
shareholders able to attend.
Information about the business of the meeting and the nominees for
election as members of the Board of Directors is set forth in the Notice
of Meeting and the Joint Proxy Statement on the following pages. This year
Idaho Power Company is asking you to elect threefour Directors, to amend certain Articles of
the Restated Articles of Incorporation, and to ratify the
appointment of an independent auditor for the fiscal year ending December
31, 2000.
Your Company is undergoing change and we will continue to rebuild our
organization to meet the challenges of a competitive future. Anticipating and
responding to the competitive future is critical to our continued success in
increasing the value of your investment. We will again share with you changes
in the utility industry and the rebuilding of our organization.2002.
YOUR VOTE IS IMPORTANT. YOU CAN BE SURE YOUR SHARES ARE REPRESENTED AT THE
MEETING BY PROMPTLY RETURNING YOUR COMPLETED PROXY IN THE ENCLOSED
ENVELOPE. You may revoke your proxy prior to or at the meeting and may
vote in person if you wish.
/s/ Jon H. Miller /s/ Jan B. Packwood
----------------- -------------------
Jon H. Miller Jan B. Packwood
Chairman of the Board IDACORP President and Chief
Executive Officer
Idaho Power Company
This Proxy is Solicited on Behalf of the Board of Directors.
Properly executed proxies will be voted as marked and, if not marked, proxies
received will be voted "For" proposalChief Executive Officer
TO VOTE BY MAIL, PLEASE DETACH PROXY CARD HERE
- --------------------------------------------------------------------------------
IDAHO POWER COMPANY
PROXY FOR THE ANNUAL MEETING OF SHAREHOLDERS ON MAY 16, 2002
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS
P
PROPERLY EXECUTED PROXIES WILL BE VOTED AS MARKED AND, IF NOT MARKED,
R PROXIES RECEIVED WILL BE VOTED "FOR" PROPOSAL (1), election of management's nominees
for directors, "For" ProposalTO ELECT FOUR
DIRECTORS, AND "FOR" PROPOSAL (2), to amend certain Articles of the Idaho
Power Restated Articles of Incorporation and "For" proposal (3), ratification
of the selection of Deloitte & Touche LLP as independent auditors for the
fiscal year 2000.TO RATIFY THE APPOINTMENT OF AN
O INDEPENDENT AUDITOR FOR THE FISCAL YEAR ENDING DECEMBER 31, 2002.
X The undersigned hereby appoints Jan B. Packwood and Robert W. Stahman, and
each of them, proxies willwith full power of substitution to vote for the
Y undersigned at the Joint Annual Meeting of Shareholders of Idaho Power
Company and IDACORP, Inc. and at any adjournment thereof, on the matters
set forth in the Proxy Statement and such other matters as may come before
the meeting; and hereby directs that this proxy be voted in accordance
with the instructions herein.
Please date,PLEASE DATE, SIGN AND PROMPTLY MAIL IN THE SELF-ADDRESSED RETURN ENVELOPE,
WHICH REQUIRES NO POSTAGE IF MAILED IN THE UNITED STATES. PLEASE SO
INDICATE FOLLOWING YOUR SIGNATURE IF YOU ARE SIGNING IN A REPRESENTATIVE
CAPACITY. IF SHARES ARE HELD JOINTLY, BOTH OWNERS SHOULD SIGN.
/ SEE REVERSE SIDE /
ANNUAL MEETING OF SHAREHOLDERS
Thursday, May 16, 2002
[ LOGO ] IDACORP 10:00 a.m. Local Time
Idaho Power Corporate Headquarters
1221 West Idaho Street
Boise, Idaho 83707
- -----------------------------------------------------------------------------------------------------------------------------
INSTRUCTIONS FOR VOTING YOUR PROXY
We are now offering shareholders three alternative ways of voting this proxy:
o BY TELEPHONE (using a touch-tone telephone) o THROUGH THE INTERNET (using a browser) o BY MAIL (traditional method)
Your telephone or Internet vote authorizes the named proxies to vote your shares in the same manner as if you had
returned your proxy card. We encourage you to use these cost effective and convenient ways of voting, 24 hours
a day, 7 days a week.
/ TELEPHONE VOTING / Available until 5:00 p.m. Eastern time on May 15, 2002
o This method of voting is available for residents of the U.S. and Canada
o On a touch-tone telephone, call TOLL FREE 1-800-858-0073, 24 hours a day, 7 days a week
o You will be asked to enter ONLY the CONTROL NUMBER shown below
o Have your proxy card ready, then follow the prerecorded instructions
o Your vote will be confirmed and cast as you directed
/ INTERNET VOTING / Available until 5:00 p.m. Eastern time on May 15, 2002
o Visit the Internet voting Website at HTTP://PROXY.GEORGESON.COM
o Enter the COMPANY NUMBER AND CONTROL NUMBER shown below and follow the instructions on your screen
o You will incur only your usual internet charges
/ VOTING BY MAIL /
o Simply mark, sign and date your proxy card and return it in the postage-paid envelope
o If you are voting by telephone or the Internet, please do not mail your proxy card
The Company has been advised by counsel that the procedures for Internet and Telephonic voting are consistent with the
requirements of applicable laws.
/ COMPANY NUMBER / / CONTROL NUMBER /
TO VOTE BY MAIL, PLEASE DETACH PROXY CARD HERE
- -----------------------------------------------------------------------------------------------------------------------------
/ X / PLEASE MARK VOTES
AS IN THIS EXAMPLE.
-----------------------------------------------------------------------------------------------------------------------
THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR" PROPOSALS 1 AND 2
-----------------------------------------------------------------------------------------------------------------------
1. ELECTION OF DIRECTORS: Nominees:
01 Roger L. Breezley 02 John B. Carley FOR all nominees listed WITHHOLD
03 Jack K. Lemley 04 Evelyn Loveless (except as indicated to authority to vote
the contrary) for all nominees
INSTRUCTIONS: To withhold authority to vote for any individual / / / /
nominee(s), write the name(s) of such nominee(s) in the space
provided below.
FOR AGAINST ABSTAIN
2. To ratify the selection of Deloitte & Touche LLP as independent / / / / / /
auditor for the fiscal year ending December 31, 2002
----------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
THE BOARD OF DIRECTORS RECOMMENDS A VOTE "AGAINST" PROPOSALS 3 AND 4
-----------------------------------------------------------------------------------------------------------------------
FOR AGAINST ABSTAIN
3. To act upon a shareholder proposal requesting IDACORP to establish / / / / / /
a written policy on the rights of indigenous peoples
FOR AGAINST ABSTAIN
4. To act upon a shareholder proposal requesting IDACORP to provide a / / / / / /
report reviewing the relicensing process for the Hells Canyon Complex
DATE:
---------------------------------
---------------------------------------
---------------------------------------
Signature(s) in Box
---------------------------------------
---------------------------------------
Signature of Joint Owner
[ LOGO ] IDACORP
April 8, 2002
Dear Shareholders of IDACORP:
It is our pleasure to invite you to attend the upcoming 2002 joint annual
meeting of Shareholders of IDACORP, Inc. and promptly mail in the self-addressed return envelope
which requires no postage if mailed in the United States. Please so indicate
following your signature if you are singing in a representative capacity. If
shares are held jointly, both owners should sign.
THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED. Idaho Power Company If you wish to have any comments forwarded tobe
held on May 16, 2002, at 10:00 A.M., local time, at the Company, you must mark this box and then write | |
your comments on the reverse side of this form.
TheIdaho Power
Corporate Headquarters, 1221 West Idaho Street, Boise, Idaho. Your Board
of Directors For Withhold For All
Recommends a vote FORand management look forward to personally greeting those
shareholders able to attend.
Information about the All All Except
proposals regarding:
1. Electionbusiness of Directors:
01) Peter T. Johnson;
02) Peter S. O'Neill;
03) Jan B. Packwood. | | | | | |
To withhold authority to vote, mark "For All Except"the meeting and write the nominee's
numbernominees for
election as members of the Board of Directors is set forth in the Notice
of Meeting and the Joint Proxy Statement on the line below.
- ------------------------------
2. Amend certain Articles For Against Abstainfollowing pages. This year
IDACORP, Inc. is asking you to elect four Directors, to ratify the
appointment of Idaho Power Restated
Articles of Incorporation. | | | | | |
3. Ratification of the selection
of Deloitte & Touche LLP as
Independent Auditoran independent auditor for the fiscal year ending December
31, 2000 | | | | | |2002, to act upon a shareholder proposal requesting IDACORP to
establish a written policy on the rights of indigenous peoples and to act
upon a shareholder proposal requesting IDACORP to provide a report
reviewing the relicensing process for the Hells Canyon Complex.
YOUR VOTE IS IMPORTANT. YOU CAN BE SURE YOUR SHARES ARE REPRESENTED AT THE
MEETING BY PROMPTLY RETURNING YOUR COMPLETED PROXY IN THE ENCLOSED
ENVELOPE. You may revoke your proxy prior to or at the meeting and may
vote in person if you wish.
/s/ Jon H. Miller /s/ Jan B. Packwood
----------------- -------------------
Jon H. Miller Jan B. Packwood
Chairman of the Board IDACORP President and Chief
Executive Officer
Idaho Power Chief Executive Officer
TO VOTE BY MAIL, PLEASE DETACH PROXY CARD HERE
- ------------------------------ ------------------------
Signature Date
- ------------------------------ ------------------------
Signature Date--------------------------------------------------------------------------------
IDACORP, INC.
PROXY FOR THE ANNUAL MEETING OF SHAREHOLDERS ON MAY 16, 2002
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS
P
PROPERLY EXECUTED PROXIES WILL BE VOTED AS MARKED AND, IF NOT MARKED,
R PROXIES RECEIVED WILL BE VOTED "FOR" PROPOSAL (1), TO ELECT FOUR
DIRECTORS, "FOR" PROPOSAL (2), TO RATIFY THE APPOINTMENT OF AN INDEPENDENT
O AUDITOR FOR THE FISCAL YEAR ENDING DECEMBER 31, 2002, "AGAINST" PROPOSAL
(3), TO ACT UPON A SHAREHOLDER PROPOSAL REQUESTING IDACORP TO ESTABLISH A
X WRITTEN POLICY ON THE RIGHTS OF INDIGENOUS PEOPLES AND "AGAINST" PROPOSAL
(4), TO ACT UPON A SHAREHOLDER PROPOSAL REQUESTING IDACORP TO PROVIDE A
Y REPORT REVIEWING THE RELICENSING PROCESS FOR THE HELLS CANYON COMPLEX.
The undersigned hereby appoints Jan B. Packwood and Robert W. Stahman, and
each of them, proxies with full power of substitution to vote for the
undersigned at the Joint Annual Meeting of Shareholders of IDACORP, Inc.
and Idaho Power Company and at any adjournment thereof, on the matters set
forth in the Proxy Statement and such other matters as may come before the
meeting; and hereby directs that this proxy be voted in accordance with
the instructions herein.
PLEASE DATE, SIGN AND PROMPTLY MAIL IN THE SELF-ADDRESSED RETURN ENVELOPE,
WHICH REQUIRES NO POSTAGE IF MAILED IN THE UNITED STATES. PLEASE SO
INDICATE FOLLOWING YOUR SIGNATURE IF YOU ARE SIGNING IN A REPRESENTATIVE
CAPACITY. IF SHARES ARE HELD JOINTLY, BOTH OWNERS SHOULD SIGN.
/ SEE REVERSE SIDE /