COC IDA110708.pdf

Please refer to pages 9-10 of this report for detailed disclosure and certification information.
Institutional Equity Research

IDACORP, INC.
November 10, 2008 IDA – NYSE

Rating:
BUY

Price: (11/7/08) $28.37

Price Targets:
12-18 month: $32 ↑
5-year: $39 ↑

Industry:
Utilities

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

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.

FY (Dec) 2007A 2008E Y-O-Y
Growth 2009E Y-O-Y
Growth
Revenue ($M) $879.4 $975.9 11% $1,163.5 19%
Previous - $972.9 $1,158.0
Price/Revenue ratio 1.4x 1.3x 1.1x
EPS Revised $1.86 $2.30 24% $2.36 2%
Previous - $2.12 $2.27
Price/EPS ratio 15.3x 12.3x 12.0x
EBITDA ($M) $293.0 $346.0 18% $366.6 6%
EV/EBITDA ratio 9.3x 7.9x 7.4x

Quarterly Data: EPS EPS Revenue Revenue EBITDA
Previous ($M) Previous ($M)
3/31/08A $0.48 - $213.4 - $80.0
6/30/08A $0.39 - $230.2 - $79.1
9/30/08A $1.14 $0.89 $299.7 $289.4 $116.1
12/31/08E $0.29 $0.36 $232.6 $239.9 $70.8
Valuation Data Trading Data
Long-term growth rate (E) 5% Shares outstanding (M) 45.6
Total Debt/Cap (9/30/08) 53.9% Market Capitalization ($M) $1,293
Cash per share (9/30/08) $1.27 52-week range $21.88 - $36.72
Book value per share (9/30/08) $27.88 Average daily volume (3 mos.) (K) 477
Dividend (yield) $1.20 (4.2%) Float 97%
Return on Equity (T-T-M) 8% Index Membership S&P 400 MidCap

A 76% EPS Jump and Improved Hydro Outlook Suggest a BUY.

• IDACORP reported 3Q'08 EPS of $1.14, compared to $0.65 in 3Q'07. We
were forecasting $0.89 and the consensus estimate of four analysts was $0.83.
• Rate relief and changed regulatory scheme drive earnings. The primary
earnings drivers were regulatory rate relief and a change in the methodology of
allocating net power supply costs by month. Also helping earnings were better
water conditions, operational efficiencies, and higher prices & volumes for coal.
• Raising 2008 forecast. Our 2008 EPS forecast is being increased from $2.12 to
$2.30, to reflect the third quarter’s positive variance from our forecast and other
factors, offset in part by 4Q’08 intra-period tax adjustments that are now likely to
occur in the non-regulated subsidiaries.
• Lifting 2009 estimate. For 2009, our EPS estimate is being raised from $2.27 to
$2.36. We expect results will be helped by 2008’s rate decisions and a pending
general rate case decision that should go into effect by February 1, 2009, partially
offset by the effects of a recession.
• Increasing target price. We are raising our 12-18 month target price of $31 to
$32, or 13.6x our revised 2009 EPS estimate. An offset to lower overall
valuations due to October’s stock market crash is the hope above-normal
reservoir levels on the upper Snake River portend a return to normal streamflows
in 2009. We continue to find the stock attractive for total return prospects,
including a 4.2% dividend yield; hence, our stock rating of BUY is repeated.
D.A. Davidson & Co.
2
Price Chart
Source: Thomson One
D.A. Davidson & Co.
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IDACORP reported 3Q'08 EPS of $1.14, compared to $0.65 in 3Q'07. We were forecasting
$0.89 and the consensus estimate of four analysts was $0.83.

The primary earnings drivers were regulatory rate relief and a change in the methodology of
allocating net power supply costs by month. (These items are discussed in the regulatory
update printed at the end of this report.) Also helping earnings were better water conditions,
operational efficiencies, and higher prices & volumes for coal.

Holding back results were higher O&M expenses, partially offset by a decrease in the fixed
cost adjustment mechanism, and higher expenses for interest, depreciation, and income taxes.

The company’s principal subsidiary, Idaho Power, reported 3Q’08 EPS of $1.05, compared to
$0.54 a year ago and our forecast of $0.86.

Electric revenues of $298 million increased 14% from $260 million, with the bulk of the
$38 million improvement coming from general business revenues. The $35 million increase
in general business revenues was due to three factors: 1) the effects of rate changes
(+$34.8 million); 2) decreased customer usage (-$2.3 million), which was chiefly due to
milder summer temperatures; and 3) continued customer growth (+$2.1 million).

Higher electric revenues were partially offset by a $5 million, or 2%, climb in electric
operating expenses to $218 million. These higher expenses were primarily explained by a
$6 million increase in payroll-related expenses and a $2 million increase in water lease costs,
partially offset by a $3 million decline in the fixed cost adjustment mechanism (a pilot
decoupling program).

Improved hydroelectric generating conditions decreased net power supply costs by
$27 million, which in turn was largely offset by a $24 million reduction in the power cost
adjustment (PCA) credit and a $3 million increase in fuel expenses. A 29% decrease in
megawatt hour (MWh) purchases was partly offset by a 2% increase in average costs per
MWh.

IDACORP Financial Services (IFS) contributed EPS of $0.02 versus $0.04 last year, due to
lower tax benefits from aging investments. IFS earnings were primarily generated from
$3.2 million of tax credits from affordable housing project investments, with assets of
approximately $125 million. The Holding Company had a profit of approximately $0.05 per
share in both 3Q’08 and 3Q’07.

Our 2008 EPS forecast is being increased from $2.12 to $2.30, to reflect the third quarter’s
positive variance from our forecast and other overall modest changes, offset in part by inter-
period tax adjustments that are likely to occur in the 4Q’08 in the non-regulated subsidiaries.

As previously reported, Idaho Power Company and Great Basin Transmission have extended
the term for exercise of the option on the northern portion of the SWIP rights-of-way from
March 31, 2008 to December 31, 2008. Hence, there is a possibility that a gain could be
recognized in 4Q’08 if the option is exercised. The SWIP rights-of-way extend from
Midpoint substation in south central Idaho through eastern Nevada to the Dry Lake area
northeast of Las Vegas, Nevada. In 2Q’08, Idaho Power sold the option to the southern
portion and realized a gain of $0.04 per share. We will not build the potential 4Q’08 gain into
our model until the exercise of the option is announced.

For 2009, our EPS estimate is being raised from $2.27 to $2.36. We expect results will be
helped by 2008’s rate decisions and a pending general rate case decision that should go into
effect by February 1, 2009 (see details of this rate case below), partially offset by the effects
of a recession.

EPS Climbs 76%
Rate Relief and PCA Mechanism
Change Boosts Utility Results
Downward Swing in IFS Results
Trim Non-Regulatory Earnings
Adjusting 2008 EPS Estimate, and
Maintaining 2009 Forecast
D.A. Davidson & Co.
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We are raising our 12-18 month target price of $31 to $32, or 13.6x our revised 2009 EPS
estimate. A 13.6x P/E multiple goal is a moderate discount to the stock’s median multiple of
14.8x year-forward earnings over the past decade due to the current market malaise, partially
offset by the fact reservoir levels on the upper Snake River are currently above normal for this
time of year. With over 15% total return prospects, including a current yield of 4.2%, we
continue to find the stock attractive for total return prospects; hence, our stock rating of BUY
is being maintained.

James L. Bellessa, Jr., CFA
Vice President and Senior Research Analyst
406.791.7230

Recent Regulatory Decisions/Filings

2008 Idaho General Rate Case
Idaho Power Company filed a request with the Idaho Public Utilities Commission (IPUC) on
June 27, 2008 for a general rate increase of $67 million (+9.9% over current electric rates).
The requested increase equates to an 8.5% rate of return on the company’s filed $2.1 billion
rate base and is based on a 2008 test year. The requested return on equity is 11.25%, with an
equity ratio of 49.3%. Idaho Power claims the rate increase is necessary in order to recover
its substantial investment in its electrical system, as well as to recover increasing operating
and maintenance expenses. In response to increasing demand for electricity, the company has
invested $578 million in its electrical system since 2005. The company has requested that the
rate increase go into effect on February 1, 2009.

Testimony was filed by IPUC Staff and other intervenors in the case on October 24th
recommending a rate increase of $9.7 million (+1.4%). Primary reasons given for the lower
revenue requirement included a suggested ROE of 10.25% and rate of return of 8.06%, lower
operations & maintenance expenses, and a smaller-than-requested rate base. Rebuttal
testimony will be filed on December 3, and the company has requested that the rate increase
go into effect on February 1, 2009. The major explanation for the variances in the
recommended rate increase by the company and the Staff are the allocation and growth of
O&M expenses and the 100 basis differences in the recommended ROE.

* * * * *

2007 Idaho General Rate Case
In February 2008 state regulators approved a settlement agreement associated with Idaho
Power’s June 2007 rate request. The order approves a general electric rate increase of
$32.1 million, or 5.2%, effective March 1, 2008. The agreement did not identify a rate base,
equity ratio, or an allowed ROE. Idaho Power had originally filed its rate case requesting an
increase of approximately $64 million, or 10.35%, and a return on equity of 11.5%. The then-
allowed authorized rate of return of 8.1% remained unchanged.

* * * * *

Danskin 1 Power Plant Application
On May 30, 2008 Idaho Power received authorization from the IPUC to increase customer
rates by 1.39%, translating to $8.9 million as a result of $64.2 million being added to the
company’s rate base attributed to the new Danskin CT1 natural gas power plant and associated
transmission and interconnection upgrades located near Mountain Home, ID. The 170-MW
addition to the Danskin Generating Unit is primarily used as a peaking facility and began
commercial operation on March 11, 2008. New retail rates associated with the Danskin
facility became effective on June 1.

Raising Target Price and
Maintaining BUY
D.A. Davidson & Co.
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* * * * *

Idaho 2008/2009 Power Cost Adjustment
Idaho Power filed its 2008/2009 Power Cost Adjustment (PCA) in April 2008, requesting
recovery of approximately $87 million in power supply and fuel expenses incurred from April
15, 2007 through April 15, 2008. However, subsequent to its PCA filing, state regulators
ordered that $16 million of proceeds plus interest from the sale of SO2 credits in 2007 be used
to reduce the impact of the PCA filing from $87 million to $70.7 million. On May 30, 2008,
the IPUC ordered a change in Idaho Power’s methodology in calculating the PCA. The new
methodology results in an equal amount of power supply costs across all months, compared
with the older, more seasonal allocation that would have recognized significantly more power
supply costs in the third quarter and less in the first and second quarters. The new PCA
mechanism went into effect on June 1, as well as an approved increase to existing revenues of
$73.3 million (10.7%). The new PCA mechanism is not expected to have any material impact
on annual financial results, although variations by quarter will occur. For example, the
change in the monthly allocation of base net power supply costs decreased the PCA in 2Q’07
by $9.2 million pretax (reducing EPS by approximately $0.12 after tax for the $2.8 million
pretax adjustment for the period April 1-June 30 and the $6.4 million pretax adjustment for
the March 1-March 31 period when the aforementioned 2007 general rate case became
effective). The change in the mechanism increased the PCA in 3Q’07 by $17.6 million pretax
(approximately $0.24 per share after tax).

Power Cost Adjustment Stipulation
Following a workshop process to evaluate various aspects of Idaho Power’s PCA mechanism,
an all-parties stipulated agreement was filed with the IPUC on October 14, 2008 to revise five
of six aspects of the PCA that have been under review. If approved, the stipulation should
reduce EPS variability.

We believe the five proposed PCA revisions are likely to be approved as fair and reasonable
compromises by the IPUC under the Commission’s modified procedures without hearing.
Furthermore, we believe the revisions’ overall impact will further mitigate, but not entirely
eliminate, the impact on annual earnings from the variability in power supply expenses
inherent in the company’s hydro generation system. Additionally, the changes should
increase the chance for the utility to earn its authorized rate of return, which has been next to
impossible in recent years due to sustained below-average streamflows and system-wide
increases in electric demand.

The five agreed-to items relate to methodologies for: 1) PCA sharing (a sharing ratio of 95%
customers and 5% shareholders instead of the long-standing 90/10 sharing ratio); 2) load
growth adjustment rate (LGAR) setting (a formula which would produce a rate of $28.14 per
MWh instead of the last LGAR reset of $62.79 per MWh); 3) forecasting new power supply
expenses (use of the company’s comprehensive operation plan forecast instead of the
historically-used April to July Brownlee Reservoir inflows projection provided by the
National Weather Service’s Northwest River Forecast Center); 4) including third party
transmission expenses; and 5) distributing annual base net power supply expenses (based
upon the monthly shape of normalized revenues rather than the simplistic use of a distribution
of 1/12 of the annual expense per month).

The parties have agreed that the sixth issue, relating to rate spread and revenue allocation
methods for the PCA, will be re-examined after the conclusion of Idaho Power’s current
general rate case expected to be finalized by February 2009.

* * * * *

D.A. Davidson & Co.
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Oregon Power Cost Adjustment Mechanism
In April 2008, state regulators in Oregon approved a stipulation agreement regarding Idaho
Power’s August 2007 filing for a purchased cost adjustment mechanism (PCAM) in the state
of Oregon. The mechanism differs from the Idaho PCA in that it reestablishes the base net
power supply costs annually. In Idaho, the base net power supply costs are set by a general
rate case. On May 20, 2008, the OPUC approved Idaho Power’s request, with the new rates
effective June 1, 2008. The approved annual power cost update results in a $4.8 million, or
15.7%, increase in Oregon revenues.

* * * * *

PPL Purchase Power agreement
Idaho Power Company (IPC) filed a request with the Idaho Public Utilities Commission
(IPUC) to approve a 2-year power purchase agreement with PPL EnergyPlus, LLC (a PPL
Montana subsidiary). This agreement allows IPC to buy 83 MW per hour of electricity during
heavy load times during June through August, at a price of $110 per MWh. Idaho Power
maintains that the price is competitive, as it has already purchased heavy-load energy for
August 2008 at prices in the range of $110 to $120 per MWh. Idaho Power also requested
that the expenses associated with the energy purchase and transmission be included in its
annual Power Cost Adjustment (PCA), filed each April and becoming effective for customers
on June 1.

* * * * *

Advanced Metering Infrastructure Case
On August 4, 2008, Idaho Power filed a request with the Idaho Public Utilities Commission
for permission to install Advanced Metering Infrastructure (AMI) technology throughout its
service territory at a cost of $71 million. The installations would begin in January 2009 and
conclude in 2011. Approximately two-thirds of the AMI costs are included in the company’s
2008-2010 capital expenditure guidance. Idaho Power noted that it will not seek a change in
customer rates at this time, even though the 2009 revenue requirement from deployment of
the AMI is estimated to be $12.2 million. However, rate impacts will be addressed in
subsequent proceedings after a deployment plan is approved by the Commission.

D.A. Davidson & Co.
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IDACORP, Inc. Balance Sheet
$ thousands -- Fiscal year ends 12/31 2003 2004 2005 2006 2007 9/30/2008
ASSETS:
Electric Plant:
In service (at original cost) $3,220,228 $3,324,816 $3,477,067 $3,583,694 $3,796,339 $3,957,199
Accumulated provision for depreciation (1,239,604)(1,316,125)(1,364,640)(1,406,210)(1,468,832)(1,499,947) In service - net 1,980,624 2,008,691 2,112,427 2,177,484 2,327,507 2,457,252
Construction work in progress 96,091 152,427 149,814 210,094 257,590 225,965 Held for future use 2,438 2,636 2,906 2,810 3,366 6,318
Other property, net of accum. Depreciatio 9,166 45,708 29,294 28,692 28,089 27,615
Property, plant and equipment - net 2,088,319 2,209,462 2,294,441 2,419,080 2,616,552 2,717,150
Investments And Other Property 204,474 223,061 191,593 202,825 201,085 201,807
Current Assets: Cash and cash equivalents 75,159 23,403 52,356 9,892 7,966 57,726
Receivables:
Customer 93,599 92,258 94,469 62,131 69,160 78,192
Gas operations
Allowance for uncollectible accounts (43,210) (43,108) (33,078) (7,168) (7,505) (1,359) Notes
Employee notes receivable 3,347 3,523 2,951 2,569 2,128 203 Other 8,209 8,806 21,377 11,855 10,957 6,617
Total Receivables
Energy marketing assets 4,176 9,203 23,859 12,069 0
Derivative assets
Taxes receivable Accrued unbilled revenues 30,869 33,832 38,905 31,365 36,314 39,065
Materials and supplies (at avg. cost) 21,351 28,008 30,451 39,079 43,270 51,324 Fuel stock (at average cost)6,228 6,539 11,739 15,174 17,268 24,402
Prepayments 27,779 30,035 17,876 9,308 9,371 10,299
Regulatory assets associated with taxes 4,382 23,407 23,922 28,035 25,672 14,375
Regulatory assets -- derivatives 6,269 5,510 3,064 0 0
Refundable income tax deposit 44,903 46,083 24,903 Other current assets 0 2,956 3,993 6,023 8,904
Assets held for sale 0 0 6,673 3,326 0 Total current assets 238,158 221,416 297,520 266,531 266,707 314,651
Other Assets:
American Falls and Milner water rights 31,585 31,585 31,585 30,543 29,501 26,592
Company-owned life insurance 35,624 35,765 35,401 34,055 30,842 29,535Energy marketing assets -- long-term 14,358 16,635 22,189
Regulatory assets associated with taxes 427,760 433,271 415,177 423,548 449,668 502,565Regulatory asset - PCA
Regulatory assets - long-term derivatives
Regulatory assets - other
Long-term receivables 3,106 2,895 4,015 3,802 3,583 4,262
Other 62,724 60,082 46,239 43,670 55,370 54,701 Assets held for sale 25,966 21,076 0
Total other assets 575,157 580,233 580,572 556,694 568,964 617,655
TOTAL ASSETS $3,106,108 $3,234,172 $3,364,126 $3,445,130 $3,653,308 $3,851,263
CAPITALIZATION AND LIABILITIES:
Capitalization: Common stock equity
Common stock $472,902 $589,440 $598,706 $638,799 $675,774 $691,162
Retained earnings 397,167 424,312 437,284 493,363 537,699 587,998
Other comprehensive income (2,630) (888) (3,425) (5,737) (6,156) (8,461)
Treasury stock (3,158) (4,578) (998) (2,242) (2) (39) Unearned compensation (6,316)
Total common stock equity 864,281 1,008,286 1,025,251 1,124,183 1,207,315 1,270,660 Preferred stock 52,366
Long-term debt 945,834 979,549 1,023,545 928,648 1,156,880 1,273,028
Total capitalization 1,862,481 1,987,835 2,048,796 2,052,831 2,364,195 2,543,688
Current Liabilities: Long-term debt due within one year 67,923 78,603 16,307 95,125 11,456 7,817
Notes payable 93,650 36,270 60,100 129,000 186,445 203,915 Accounts payable 60,916 79,156 80,324 86,440 85,116 66,195
Energy marketing liabilities 4,317 9,420 24,093 13,532 0
Derivative liabilities 0 0 0 0 0
Taxes accured 45,601 46,318 72,652 47,402 8,492 14,736
Interest accrued 13,741 14,426 14,616 12,657 18,913 29,624 Deferred income taxes
Uncertain tax positions 26,764 27,297 Other 25,557 21,265 19,577 23,572 38,129 36,883
Liabilities held for sale 0 0 5,916 2,606 0
Total current liabilities 311,705 285,458 293,585 410,334 375,315 386,467

Other Liabilities:
Regulatory liabilities associated with
deferred investment tax credits
Energy marketing liabilities -- long-term 14,393 16,635 22,189 0 0
Derivative liabilities -- long-term 0 0 0 0 0 Deferred income taxes 554,715 555,774 519,563 498,512 466,182 473,845
Regulatory liabilities associated with
income taxes Regulatory liabilities - PCA
Regulatory liabilities - other 258,524 275,854 345,109 294,844 274,204 276,469 Other 104,290 112,616 124,833 179,836 173,412 170,794
Liabilities held for sale 0 0 10,051 8,773 0
Total other liabilities 931,922 960,879 1,021,745 981,965 913,798 921,108
TOTAL CAPITALIZATION AND
LIABILITIES $3,106,108 $3,234,172 $3,364,126 $3,445,130 $3,653,308 $3,851,263
Shares Outstanding (000's)38,207 42,217 42,632 43,834 45,063 45,576Book Value per Share $22.62 $23.88 $24.05 $25.65 $26.79 $27.88
% of Total Capitalization
Long-Term Debt 50.8% 49.3% 50.0% 45.2% 48.9% 50.0%
Preferred 2.8% 0.0% 0.0% 0.0% 0.0% 0.0%
Common 46.4% 50.7% 50.0% 54.8% 51.1% 50.0%
D.A. Davidson & Co.
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IDACORP, Inc. Consolidated Statements of Income
$ thousands -- Fiscal year ends 12/31 2006 1Q07 2Q07 3Q07 4Q07 2007 1Q08 2Q08 3Q08 4Q08E 2008E 2009E
REVENUES:
Electric Utility:
General business $636,375 $137,251 $162,212 $211,873 $156,966 $668,303 $167,313 $188,748 $246,639 $186,500 $789,200 $874,298
Off system sales 260,717 57,839 37,177 34,843 25,089 154,948 33,363 25,641 34,637 32,050 125,691 232,721
Other revenues 23,381 10,839 13,137 13,800 14,374 52,150 12,120 14,556 16,831 13,000 56,507 53,000
Total Electric Utility Revenues 920,473 205,929 212,526 260,516 196,429 875,401 212,796 228,945 298,107 231,550 971,398 1,160,019
Diversified Operations:
Other 5,818 783 1,246 947 1,017 3,993 644 1,281 1,609 1,000 4,534 3,500
Total Revenues 926,291 206,712 213,772 261,463 197,446 879,393 213,440 230,226 299,716 232,550 975,932 1,163,519
EXPENSES:
Electric Utility:
Purchased power 283,440 50,817 80,467 110,108 48,091 289,484 45,299 50,089 79,513 59,738 234,638 355,470
Fuel expense 115,018 30,913 27,520 43,291 32,598 134,322 37,237 28,681 46,467 38,206 150,591 174,003
Power cost adjustment (29,526)(21,536)(42,172)(43,749)(13,674)(121,131)(17,744)(829)(20,105)(10,000)(48,678)(50,000)
Total Power Supply 368,932 60,194 65,815 109,650 67,015 302,675 64,792 77,941 105,875 87,943 336,551 479,473
Impairment of assets
Other Operations and Maintenance 264,810 67,827 78,888 69,154 70,639 286,510 68,927 75,617 74,778 73,865 293,187 313,205
Demand-side management 2,115 2,548 4,307 4,518 13,487 3,364 3,928 5,956 5,000 18,248 20,000
Gain on sale of emission allowances (8,257)(882) (1,872)(2,754)(346) (158)(504) 0
Depreciation 99,824 25,290 25,613 25,967 26,203 103,072 25,750 26,617 25,717 26,500 104,584 110,000
Taxes other than income taxes 18,661 4,918 4,636 4,714 3,366 17,634 4,803 4,800 4,827 3,705 18,135 23,200
Total Electric Utility Expenses 743,970 160,344 176,618 211,920 171,741 720,624 167,636 188,557 216,995 197,013 770,200 945,878
Other: 12,617 2,588 582 1,613 1,910 6,692 1,048 1,140 1,144 1,200 4,532 5,000
Total Operating Expenses 756,587 162,932 177,200 213,533 173,651 727,316 168,684 189,697 218,139 198,213 774,732 950,878
OPERATING INCOME
Electric Utility 176,503 45,585 35,908 48,596 24,688 154,777 45,160 40,388 81,112 34,538 201,198 214,140
Other Diversified Operations (6,799)(1,805)664 (666)(893)(2,699)(404)141 465 (200)2 (1,500)
Equity in Earnings of Partnerships
Operating Income 169,704 43,780 36,572 47,930 23,795 152,078 44,756 40,529 81,577 34,338 201,200 212,640
TOTAL OTHER INCOME: 18,195 5,389 3,862 4,616 6,657 20,524 4,417 6,082 4,629 5,000 20,128 21,000
Earnings of Uncons. Eq-method Inv. (2,913)(1,326) (1,551) (380) (1,567)(4,824)(4,036) (3,278) 2,642 (1,200)(5,872) (4,800)
TOTAL OTHER EXPENSES: 8,559 3,212 1,571 2,055 1,597 8,434 365 1,820 2,764 2,000 6,949 8,200
INTEREST EXPENSE AND OTHER:
Interest on long-term debt 56,402 13,548 13,896 15,862 16,655 59,961 16,876 15,744 17,226 17,400 67,246 70,000
Other interest 4,573 1,604 1,514 763 (502)3,380 596 1,313 1,310 1,350 4,569 4,000
Net interest charges 60,975 15,152 15,410 16,625 16,153 63,341 17,472 17,057 18,536 18,750 71,815 74,000
Dividends on preferred stock 0 0 0 0 0 0 0 0 0 0 0 0
Total interest expense and other 60,975 15,152 15,410 16,625 16,153 63,341 17,472 17,057 18,536 18,750 71,815 74,000
INCOME BEFORE INCOME TAXES: 115,452 29,479 21,902 33,486 11,135 96,003 27,300 24,456 67,548 17,388 136,692 146,640
INCOME TAXES: 15,377 4,898 3,437 4,555 840 13,731 5,584 6,941 15,809 4,173 32,507 36,660
Income from Continuing Operations 100,075 24,581 18,465 28,931 10,295 82,272 21,716 17,515 51,739 13,215 104,185 109,980
Losses from Disc. Ops. (net of tax) 7,328 67 0 0 0 67 0 0 0 0 0
Net Income Available for Common 107,403 24,648 18,465 28,931 10,295 82,339 21,716 17,515 51,739 13,215 104,185 109,980
Earnings per share from cont. ops.$2.34 $0.56 $0.42 $0.65 $0.23 $1.86 $0.48 $0.39 $1.14 $0.29 $2.30 $2.36
Losses from Discontinued Operations $0.17 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
EPS $2.51 $0.56 $0.42 $0.65 $0.23 $1.86 $0.48 $0.39 $1.14 $0.29 $2.30 $2.36
Dividends paid per share of common stock $1.20 $0.300 $0.300 $0.300 $0.300 $1.20 $0.300 $0.300 $0.300 $0.300 $1.20 $1.20
Avg. common shares outstanding (000)42,874 43,820 43,884 44,543 44,918 44,291 45,004 45,096 45,194 45,594 45,222 46,594
Segment breakdown of EPS
Idaho Power Company $2.19 $0.53 $0.37 $0.54 $0.29 $1.73 $0.47 $0.39 $1.05 $0.32 $2.23 $2.30
IDACORP Energy $0.00 (0.00) (0.00) 0.00 0.00 ($0.00)(0.00) (0.00) (0.00)
Ida-West Energy $0.06 0.00 0.02 0.02 0.00 $0.05 0.00 0.02 0.03
IDACORP Financial $0.22 0.04 0.04 0.04 0.04 $0.16 0.02 0.02 0.02
Holding Company ($0.14)(0.02)(0.01)0.05 (0.10)($0.08)(0.01)(0.04)0.05
EPS from Continuing Operations $2.34 $0.56 $0.42 $0.65 $0.23 $1.86 $0.48 $0.39 $1.14 $0.29 $2.30 $2.36
D.A. Davidson & Co.
Two Centerpointe Drive, Suite 400 • Lake Oswego, Oregon 97035 • [phone] • [phone] • www.dadavidson.com
Copyright D.A. Davidson & Co., 2008. All rights reserved.
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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, the research analyst 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.
I, James L. Bellessa, Jr., CFA, attest that (i) all the views expressed in this research report accurately reflect my personal views about
the common stock of the subject company, and (ii) no part of my 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 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 9/30/08) Buy Hold Sell
Corresponding Institutional Research Ratings Buy Neutral Underperform
and Distribution 44% 52% 4%
Corresponding Private Client Research Ratings Outperform Market Perform Underperform
and Distribution 81% 19% 0%
Distribution of Combined Ratings 47% 49% 4%
Distribution of companies from whom D.A. Davidson & Co. has received compensation for investment banking services in last 12 mos.
Institutional Coverage 4% 6% 0%
Private Client Coverage 0% 0% 0%
Distribution of Combined Investment Banking 4% 5% 0%

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., 2008. All rights reserved.
10
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.