COC IDA070810.pdf

Please refer to pages 6-7 of this report for detailed disclosure and certification information.
* D. A. Davidson & Co. makes a market in this security.
Institutional Equity Research

IDACORP, INC.
July 8, 2010 IDA* – NYSE

Rating: Buy
Price: (7/8/10) $34.56
Price Targets: 12-18 month: $39.50
5-year: $44.00

Industry:
Utilities

James L. Bellessa, Jr., CFA
406.791.7230
[e-mail]

Michael Bates
Research Associate
406.791.7216
[e-mail]

Adjusting Quarterly Results, but Maintaining Annual Earnings Estimates
• Cool and moist second quarter should constrain electric usage. We believe
that a cool and moist May and June in Idaho Power’s service territory will temper
air conditioning load and irrigator usage for 2Q’10. Other factors likely to hold
back results are a tepid economy, conservation, and low prices for off-system
sales. These negative pressures may have been partially offset by the impacts of
positive regulatory orders and an above-normal heating load in April.
• Rate order benefits commenced in June. Effective June 1, 2010, the utility
began to receive the benefit of a $28.7 million annual revenue increase due to the
approval of a settlement agreement calling for a sharing between customers and
shareholders of any reduction in the Power Cost Adjustment (PCA), in which a
true-up of the load growth adjustment rate (LGAR)was embedded. Also, a
$3.6 million annual bump up in the fixed cost adjustment mechanism (FCA) pilot
program should help June’s results.
• Two tax treatment studies coming to an end. IDACORP has been evaluating
the tax accounting treatments for repair-related expenditures and the IRS’
Compliance Assurance Process (CAP) program relating to the allocation of mixed
service costs under the uniform capitalization method. When 1Q’10 results were
reported, management discontinued its practice of issuing guidance on the tax
rate of the utility and the parent company. Now that these studies are concluding,
management anticipates it will be able to provide clarity on tax issues during its
scheduled August 5, 2010 earnings release and conference call. We now expect
2H’10 earnings will be lifted by a low tax rate. However, the resulting increases in
earnings could result in the reversal of a 1Q’10 EPS benefit of $0.16 for the
amortization of accumulated deferred investment tax credits (ADITC).
• Lowering EPS estimate for recent quarter. Due to the aforementioned effects,
and a higher than previously assumed tax rate, we are lowering our 2Q’10 EPS
for IDACORP, Inc. from $0.61 to $0.53. If accurate, this new forecast will
compare to 2Q’09 EPS of $0.58. Our full-year 2010 estimate remains unchanged
at $2.70, as we are raising our 2H’10 forecasts due to an assumption of a lower
tax rate. Our 2011 estimate of $2.90 also remains unchanged.
• We are maintaining our 12-18 month target price of $39.50, which equates to
~14x the average of our unchanged 2010 and 2011 EPS estimates. At the
current share price, we are maintaining our BUY rating.
Valuation Data
Long-term growth rate (E) 5%
Total Debt/Cap (3/31/10) 50.8% Cash per share (3/31/10) $0.86 Book value per share (3/31/10) $29.17 Dividend (yield) $1.20 (3.5%) Return on Equity (T-T-M) 9.0%

Trading Data
Shares outstanding (M) 48.1
Market Capitalization ($M) $1,662
52-week range $24.68 - $36.93
Average daily volume (3 mos.) (K) 275
Float 98%
Index Membership S&P 400

FY (Dec) 2009A 2010E Previous 2011E Previous
Revenue ($M) Q1 (Mar) $228.6 $253.0 A $239.3 n.a.n.a.
Q2 (Jun) $243.6 $240.0 E $263.0 n.a.n.a.
Q3 (Sep) $324.5 $323.9 E $323.5 n.a.n.a.
Q4 (Dec) $253.1 $252.0 E $251.5 n.a.n.a.
$1,049.8 $1,068.8 E $1,076.9 $1,137.6 $1,118.7
Price/Revenue 1.6x 1.6x 1.5x
EPS Q1 (Mar) $0.40 $0.34 A $0.42 n.a.n.a.
Q2 (Jun) $0.58 $0.53 E $0.61 n.a.n.a.
Q3 (Sep) $1.16 $1.42 E $1.30 n.a.n.a.
Q4 (Dec) $0.49 $0.41 E $0.37 n.a.n.a. $2.64 $2.70 E NC $2.90 NC
Price/EPS 13.1x 12.8x 11.9x
EBITDA ($M) Q1 (Mar) $73.7 $69.0 A $74.8 n.a.n.a.
Q2 (Jun) $77.8 $83.5 E $86.0 n.a.n.a.
Q3 (Sep) $115.2 $126.8 E $124.0 n.a.n.a.
Q4 (Dec) $72.4 $74.8 E $74.4 n.a.n.a.
$339.2 $354.0 E $359.2 $408.3 $405.8
EV/EBITDA 9.0x 8.7x 7.5x

D.A. Davidson & Co.
2
Price Chart
24.00
26.00
28.00
30.00
32.00
34.00
36.00
38.00
IDACORP Inc. (IDA-US)
07-Jul-2009 to 08-Jul-2010 (Daily)High:36.93 Low: 24.68 Last: 34.33
08/03/09 09/01/09 10/01/09 11/02/09 12/01/09 01/01/10 02/01/10 03/01/10 04/01/10 05/03/10 06/01/10 07/01/10
0.2M
0.4M
0.6M
0.8M
1M
©FactSet Research Systems
Volume in millions
Source: FactSet

Company Description:
Boise, ID -- IDACORP, Inc. is the holding company for the Idaho Power Company, an electric public utility that serves an approximate
24,000 square mile area in Southern Idaho and Eastern Oregon. Non-regulated subsidiaries include an affordable housing project
finance company and an operator of small hydroelectric generation projects.

Potential Risks:
• Regulatory. Idaho Power is required to seek and receive approval from state and federal regulators before making changes to its
utility rates and business practices, executing acquisitions, and raising capital. Changes in the regulatory environment could
influence the utility’s credit ratings and its ability to attract returns on its investments.
• Interest rates and access to capital markets. Dividend-paying stocks, especially utility issues like IDACORP, Inc., are sensitive
to interest rates. A material increase in market interest rates may lead to compression in utility stock prices. We also note that
IDACORP’s ability to obtain capital under competitive terms and rates is critical to executing its capital expenditure programs.
• Legislative. New legislation may be enacted to address the effects of climate change and greenhouse gas (GHG) emissions,
which would likely have a significant impact on the electric utility industry.
• Commodity prices. IDACORP is exposed to the risks of fluctuations in the price of several commodities, including natural gas,
wholesale electricity, and coal. Although these risks are partially mitigated in the ratemaking process, the utility absorbs/receives a
portion of the risks/benefits when costs deviate materially from levels approved in base rates.
• Economic and weather conditions. Economic conditions influence customer demand for utility services, as well as demand for
the services of IDACORP’s non-utility subsidiaries. Demand for utility services is also affected by weather conditions, which our
model assumes will match historical averages.
• IRS audits. IDACORP’s records for the 2009 and 2010 tax years are subject to IRS audit through IDA’s participation in the
Compliance Assurance Process (CAP) program, which is specifically investigating the company’s method of uniform capitalization
of mixed service costs. At this point we are unable to predict what impact these investigations will have on IDACORP’s business.
D.A. Davidson & Co.
3
Regulatory Update
Revenue
Increase
vera e Rate
Base
Return on
Equity
Return on
Rate Base
Equit
Ratio
Effective, January 2010
Effective, March 2010 $5.0 (+15.4%) $111 10.2% 8.06% 49.8%
2008 Idaho Rate Case
Effective, March 2009 $27.0 (+4.0%) $2,094 10.5% 8.18% 49.3%
2009 Idaho Rate Settlement 1
Notes to Regulatory Summary
($ in millions)
2009 Oregon General Rate Case
1 In January 2010, the Idaho Public Utilities Commission (IPUC) approved a settlement agreement with respect to rates for 2009–2011, including
four important elements: (1) a general rate freeze until January 1, 2012, with some exceptions (including adjustments to the power cost
adjustment (PCA) and fixed cost adjustment (FCA)); (2) a specified distribution of the expected 2010 PCA decrease to directly reduce customer
rates, providing some general rate relief to Idaho Power and resetting base level power supply costs for the PCA going forward; (3) use of up to
$45 million of accumulated deferred investment tax credits (ADITC) to get to a 9.5% ROE in the Idaho jurisdiction; and (4) an equal sharing of any
Idaho earnings exceeding the authorized level of 10.5%.
D.A. Davidson & Co.
4
IDACORP, Inc. – Quarterly Financial Position

($ in thousands) -- Fiscal year ends 12/31 2008 3/31/2009 6/30/2009 9/30/2009 2009 3/31/2010
Current Assets:
Cash And Cash Equivalents $8,828 $89,113 $16,002 $28,869 $52,987 $41,436
Receivables:
Customer 64,733 70,919 70,777 83,990 76,792 71,518
Allowance For Uncollectible Accounts (1,724) (1,482) (1,247) (1,534) (2,878)
Employee Notes Receivable 179
Other 10,260 15,099 14,226 12,242 12,995 10,903
Taxes Receivable 18,111 9,710 99
Accrued Unbilled Revenues 43,934 35,751 48,265 49,779 51,272 40,033
Materials And Supplies (At Avg. Cost) 50,121 52,778 51,251 50,599 48,054 47,535
Fuel Stock (At Average Cost) 16,852 13,941 23,331 22,346 25,634 25,006
Prepayments 10,059 9,878 9,493 11,659 11,111 8,810
Deferred Income Taxes 37,550 14,792 14,731 14,739 31,773 31,773
Other Current Assets 7,381 8,956 8,602 3,105 2,666 4,413
Total Current Assets $266,284 $319,455 $255,530 $275,794 $310,406 $281,427
Investments And Other Property 198,552 185,532 193,548 197,861 195,298 200,458
Total Other Assets 799,844 795,881 799,110 796,494 816,015 779,520
Electric Plant:
In Service (At Original Cost) $4,030,134 $4,077,121 $4,107,992 $4,141,054 $4,160,178 $4,177,048
Accumulated Provision For Depreciation (1,505,120) (1,520,896) (1,540,469) (1,556,226) (1,558,538) (1,565,201)
In Service - Net $2,525,014 $2,556,225 $2,567,523 $2,584,828 $2,601,640 $2,611,847
Construction Work In Progress 207,662 186,662 201,155 236,632 289,188 323,116
Held For Future Use 6,318 6,653 6,653 6,549 7,151 7,149
Other Property, Net Of Accum. Depreciation 19,171 19,270 19,157 19,134 19,029 18,915
Property, Plant And Equipment - Net $2,758,165 $2,768,810 $2,794,488 $2,847,143 $2,917,008 $2,961,027
Total Assets $4,022,845 $4,069,678 $4,042,676 $4,117,292 $4,238,727 $4,222,432
Current Liabilities:
Long-Term Debt Due Within One Year $86,528 $81,502 $83,502 $84,064 $9,340 $131,951
Notes Payable 151,250 150,700 79,099 36,780 53,750 26,100
Accounts Payable 96,785 53,010 66,038 88,136 83,818 53,040
Taxes Accured 20,531 10,184 40,118
Interest Accrued 16,727 24,054 17,919 27,680 20,056 25,682
Uncertain Tax Positions 4,119 4,509
Other Current Liabilities 40,259 47,017 44,069 37,761 41,081 51,325
Total Current Liabilities $395,668 $360,792 $290,627 $294,952 $218,229 $328,216
Total Other Liabilities 1,136,855 1,116,709 1,137,982 1,154,651 1,209,224 1,197,024
Noncontrolling Interest 4,434 3,987 4,082 4,311 4,209 4,003
Long-Term Debt 1,183,451 1,279,504 1,283,570 1,282,900 1,409,730 1,290,243
Total Common Stock Equity $1,302,437 $1,308,686 $1,326,415 $1,380,478 $1,397,335 $1,402,946
Total Capitalization And Liabilities $2,720,408 $2,760,992 $2,716,261 $2,736,814 $2,841,392 $2,819,486
Common Shares Outstanding (End of Period)46,920 47,145 47,248 47,650 47,897 48,098
Total Debt (end of period)1,421,229 1,511,706 1,446,171 1,403,744 1,472,820 1,448,294
Total Debt (average)1,388,005 1,466,468 1,478,939 1,424,958 1,447,025 1,460,557
Book Value Per Share $27.76 $27.76 $28.07 $28.97 $29.17 $29.17
Current Ratio 0.7 0.9 0.9 0.9 1.4 0.9
Capital Structure:
Common Equit 47.8% 46.4% 47.8% 49.6% 48.7% 49.2%
Debt (Short-Term & Long-Term)52.2% 53.6% 52.2% 50.4% 51.3% 50.8%
Capitalization 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
D.A. Davidson & Co.
5
IDACORP, Inc. – Historical and Projected Operating Results

($ in thousands) -- Fiscal year ends 12/31 2008 1Q'09 2Q'09 3Q'09 4Q'09 2009 1Q'10 2Q'10E 3Q'10E 4Q'10E 2010E 2011E
REVENUES:
Electric Utility:
General Business $784,311 $187,927 $198,215 $277,676 $219,947 $883,765 $203,745 $208,235 $281,265 $213,088 $906,333 $950,922
Off System Sales 121,430 28,530 26,667 23,691 15,485 94,373 34,406 18,405 29,311 25,514 107,636 130,700
Other Revenues 50,335 11,572 17,636 21,761 16,889 67,858 14,309 12,500 12,500 12,500 51,809 52,500
Total Electric Utility Revenues 956,076 228,029 242,518 323,128 252,321 1,045,996 252,460 239,140 323,076 251,102 1,065,778 1,134,122
Diversified Operations:
Other 4,338 545 1,116 1,381 762 3,804 503 850 850 850 3,053 3,500
Total Revenues $960,414 $228,574 $243,634 $324,509 $253,083 $1,049,800 $252,963 $239,990 $323,926 $251,952 $1,068,831 $1,137,622
EXPENSES:
Electric Utility:
Purchased Power $231,137 $32,795 $25,091 $73,483 $29,200 $160,569 $21,174 $22,667 $60,506 $49,878 $154,224 $188,163
Fuel Expense 149,403 39,133 24,475 49,530 36,428 149,566 37,187 28,697 51,692 40,176 157,752 175,789
Third Party Transmission Expense 7,250 906 1,776 2,791 1,156 6,629
Power Cost Adjustment (47,413)15,859 26,762 1,614 22,475 66,710 48,324 23,000 0 0 71,324 13,500
Total Power Supply $340,377 $88,693 $78,104 $127,418 $89,259 $383,474 $106,685 $74,363 $112,198 $90,054 $383,300 $377,452
Other Operations And Maintenance 286,779 68,769 74,653 68,970 80,719 293,111 72,094 72,699 71,077 78,846 294,715 320,957
Energy Efficiency Programs 18,880 4,058 8,673 12,202 6,888 31,821 5,034 9,000 13,000 7,500 34,534 38,000
Gain On Sale Of Emission Allowances (504)(229) (60) (9)(298)0 0
Depreciation 102,086 25,963 26,832 28,837 28,994 110,626 28,583 29,500 30,500 30,500 119,083 125,000
Taxes Other Than Income Taxes 19,083 5,062 5,088 5,600 5,319 21,069 5,680 5,261 5,492 5,524 21,958 22,682
Total Electric Utility Expenses $766,701 $192,316 $193,290 $243,027 $211,170 $839,803 $218,076 $190,823 $232,267 $212,424 $853,590 $884,091
Other Expenses 3,046 624 872 1,879 3,039 6,414 840 1,200 1,400 1,200 4,640 5,200
Total Operating Expenses $769,747 $192,940 $194,162 $244,906 $214,209 $846,217 $218,916 $192,023 $233,667 $213,624 $858,230 $889,291
OPERATING INCOME:
Electric Utility $189,375 $35,713 $49,228 $80,101 $41,151 $206,193 $34,384 $48,317 $90,809 $38,678 $212,188 $250,032
Other Diversified Operations 1,292 (79) 244 (498) (2,277)(2,610)(337) (350) (550) (350)(1,587) (1,700)
Equity In Earnings Of Partnerships
Combined Operating Income $190,667 $35,634 $49,472 $79,603 $38,874 $203,583 $34,047 $47,967 $90,259 $38,328 $210,601 $248,332
Total Other Income:3,831 6,921 4,058 4,569 1,449 16,997 4,481 3,500 3,500 3,500 14,981 15,000
Earnings Of Uncons. Eq-Method Inv.(3,997)402 (2,620) 2,866 (1,681)(1,033)(2,378) (2,000) (500) (500)(5,378) (3,000)
Total Other Expenses:
INTEREST EXPENSE AND OTHER:
Interest On Long-Term Debt $67,251 $16,639 $18,282 $18,840 $19,610 $73,371 $19,441 $20,000 $20,250 $20,500 $80,191 $83,500
Other Interest 5,805 836 (117) (239) (1,041)(561)(453) 500 500 500 1,047 2,500
Total Interest Expense And Other $73,056 $17,475 $18,165 $18,601 $18,569 $72,810 $18,988 $20,500 $20,750 $21,000 $81,238 $86,000
Income Before Income Taxes:117,445 25,482 32,745 68,437 20,073 146,737 17,162 28,967 72,509 20,328 138,966 174,332
Accumulated Deferred Investment Tax Credits
Income Taxes:19,200 6,796 5,175 13,730 (3,339)22,362 1,305 3,476 3,625 203 8,610 27,893
Tax Rate 16%27% 16% 20% -17% 15% 8% 12% 5% 1%6% 16%
Income From Continuing Operations $98,245 $18,686 $27,570 $54,707 $23,412 $124,375 $15,857 $25,491 $68,884 $20,124 $130,356 $146,438
Losses From Disc. Ops. (Net Of Tax)0 0 0 0 0 0 0 0 0 0 0
Net Income $98,245 $18,686 $27,570 $54,707 $23,412 $124,375 $15,857 $25,491 $68,884 $20,124 $130,356 $146,438
Adjustment For Noncontrolling Interest 169 198 (95) (229) 101 (25)206 50 50 50 356 300
Net Income Available For Common $98,414 $18,884 $27,475 $54,478 $23,513 $124,350 $16,063 $25,541 $68,934 $20,174 $130,712 $146,738
Avg. Common Shares Outstanding (000)45,379 46,876 46,977 47,141 47,724 47,182 47,885 48,285 48,685 49,085 48,485 50,685
Earnings Per Share (Diluted)$2.17 $0.40 $0.58 $1.16 $0.49 $2.64 $0.34 $0.53 $1.42 $0.41 $2.70 $2.90
Dividends Per Common Share $1.20 $0.30 $0.30 $0.30 $0.30 $1.20 $0.30 $0.30 $0.30 $0.30 $1.20 $1.20
Dividend Payout Ratio 55%74% 51% 26% 61%46%89% 57% 21% 73%45% 41%
EPS By Segment
Idaho Power Company $2.07 $0.41 $0.56 $1.08 $0.54 $2.60 $0.38 $0.52 $1.39 $0.38 $2.68 $2.86
Idacorp Energy 0.01 (0.00) (0.00) (0.00) (0.00)(0.01)0.00
Ida-West Energy 0.05 0.00 0.03 0.03 (0.00)0.06 0.00
Idacorp Financial 0.08 0.00 0.00 0.01 (0.00)0.01 (0.00)
Holding Company (0.04)(0.02) (0.01) 0.04 (0.05)(0.03)(0.05)
Reported Eps, Diluted $2.17 $0.40 $0.58 $1.16 $0.49 $2.64 $0.34 $0.53 $1.42 $0.41 $2.70 $2.90
D.A. Davidson & Co.
Two Centerpointe Drive, Suite 400 • Lake Oswego, Oregon 97035 • [phone] • [phone] • www.dadavidson.com
Copyright D.A. Davidson & Co., 2010. All rights reserved.
6
Required Disclosures
D.A. Davidson & Co. expects to receive, or intends to seek, compensation for investment banking services from this company in the
next three months.
D.A. Davidson & Co. is a full service investment firm that provides both brokerage and investment banking services. James L.
Bellessa, Jr., CFA and Michael Bates, the research analysts principally responsible for the preparation of this report, will receive
compensation that is based upon (among other factors) D.A. Davidson & Co.’s investment banking revenue. However, D.A. Davidson
& Co.’s analysts are not directly compensated for involvement in specific investment banking transactions.
We, James L. Bellessa, Jr., CFA and Michael Bates, attest that (i) all the views expressed in this research report accurately reflect our
personal views about the common stock of the subject company, and (ii) no part of our compensation was, is, or will be, directly or
indirectly, related to the specific recommendations or views expressed in this report.

Ratings Information

D.A. Davidson & Co. Ratings Buy Neutral Underperform
Risk adjusted return potential azbycx Over 15% total return
expected on a risk adjusted
basis over next 12-18 months
>0-15% return potential
on a risk adjusted basis
over next 12-18 months
Likely to remain flat or lose
value on a risk adjusted basis
over next 12-18 months
Distribution of Ratings (as of 3/31/10) Buy Hold Sell
Corresponding Institutional Research Ratings Buy Neutral Underperform
and Distribution 52% 40% 8%
Corresponding Private Client Research Ratings Outperform Market Perform Underperform
and Distribution 78% 22% 0%
Distribution of Combined Ratings 55% 38% 7%
Distribution of companies from whom D.A. Davidson & Co. has received compensation for investment banking services in last 12 mos.
Institutional Coverage 7% 5% 6%
Private Client Coverage 0% 0% 0%
Distribution of Combined Investment Banking 6% 5% 6%

D.A. Davidson & Co.’s Institutional Research Rating Scale (maintained since 7/9/02): Buy, Neutral, Underperform

D.A. Davidson & Co.
Two Centerpointe Drive, Suite 400 • Lake Oswego, Oregon 97035 • [phone] • [phone] • www.dadavidson.com
Copyright D.A. Davidson & Co., 2010. All rights reserved.
7
Target prices are our Institutional Research Department’s evaluation of price potential over the next 12-18 months and 5 years, based
upon our assessment of future earnings and cash flow, comparable company valuations, growth prospects and other financial criteria.
Certain risks may impede achievement of these price targets including, but not limited to, broader market and macroeconomic
fluctuations and unforeseen changes in the subject company’s fundamentals or business trends.

Other Disclosures

Information contained herein has been obtained by sources we consider reliable, but is not guaranteed and we are not soliciting any
action based upon it. Any opinions expressed are based on our interpretation of data available to us at the time of the original
publication of the report. These opinions are subject to change at any time without notice. Investors must bear in mind that inherent in
investments are the risks of fluctuating prices and the uncertainties of dividends, rates of return and yield. Investors should also
remember that past performance is not necessarily an indicator of future performance and D.A. Davidson & Co. makes no guarantee,
express or implied, as to future performance. Investors should note this report was prepared by D.A. Davidson & Co.’s Institutional
Research Department for distribution to D.A. Davidson & Co.’s institutional investor clients and assumes a certain level of investment
sophistication on the part of the recipient. Readers, who are not institutional investors or other market professionals, should seek the
advice of their individual investment advisor for an explanation of this report’s contents, and should always seek such advisor’s advice
before making any investment decisions. Further information and elaboration will be furnished upon request.