COC IDA111009.pdf

Please see page 7 for rating definitions, important disclosures
and required analyst certifications
Wells Fargo Securities, LLC does and seeks to do business with companies
covered in its research reports. As a result, investors should be aware that
the firm may have a conflict of interest that could affect the objectivity of the
report and investors should consider this report as only a single factor in
making their investment decision.

November 10, 2009

Equit Research
IDACORP, Inc.
IDA: Raising EPS Estimates And Valuation Range
Rate Agreement Details Appear Constructive

• Summary. We view the settlement between IDA, the IPUC Staff and key
customer groups favorably. We are increasing our 09E-11E EPS by roughly 2-4%
to $2.40, $2.50 and $2.65 from $2.35, $2.45 and $2.55, respectively. We are
also increasing our valuation range to $30-31 from $29-30 and reiterating our
Market Perform rating.
• EPS Outlook. We are increasing our 2009E EPS to $2.40 from $2.35 largely
reflecting a higher expected earned ROE in Idaho based on better than expected
3Q results, an improved hydro outlook and the recent rate settlement. We are
also increasing our 10E-11E EPS to $2.50 and $2.65 from $2.45 and $2.55 also
reflecting a higher earned ROE in Idaho based on the filed rate settlement, which
we view constructively, and a modest acceleration of Langley Gulch CapEx,
which increases AFUDC earnings in 2010 and, to a greater degree, 2011.
• Rate Settlement. On 11/9, IDA filed an 8-K detailing its previously announced
Idaho rate settlement. The agreement proposes to divide the benefit of an
expected decline in the Power Cost Adjustment (PCA) between the company and
customers as well as apply a portion of the decrease to absorb an expected base
power supply cost increase. Based on the current PCA estimate, this would
result in a $25mm base rate increase in mid-2010. Other provisions include the
ability for IDA to amortize up to $45mm of Accumulated Deferred Investment
Tax Credits (ADITC) if the Idaho jurisdictional ROE falls below 9.5% in 09, 10 or
11; and provides 50/50 sharing of earnings above a 10.5% ROE between
customers/shareholders. We view the settlement constructively and believe it
provides IDA a reasonable opportunity to earn its allowed ROE as well as
demonstrates a continued ability to work constructively with the IPUC Staff.
• We are Reiterating our Market Perform Rating and increasing our
valuation range to $30-31 from $29-30 based on the improved EPS outlook. We
continue to be impressed by IDA’s ability to secure constructive regulatory
outcomes, which have reduced earnings volatility and enhanced the company’s
ability to earn its allowed ROE. Our neutral rating reflects valuation
considerations and exposure, albeit modest at this point, to power supply costs.
Shares trade in-line with the Regulated peer group on 10E and 11E EPS, which
we consider to be fair. With that being said, as we are increasingly comfortable
with the Idaho regulatory environment and increasingly confident in our EPS
outlook, we will monitor the share price for a more attractive entry point.

Valuation Range: $30.00 to $31.00 from $29.00 to $30.00
We value IDA under P/E multiple (apply an 11.5X multiple to our 11E EPS of $2.65)
and dividend discount analysis. Risks to our valuation include project delays or
cancellations and consistently below average hydroelectric conditions.

Investment Thesis:
We are attracted to Idaho's service territory and strong rate base growth potential, and are encouraged by recent regulatory improvements. Our neutral rating largely
reflects valuation considerations.

Market Perform

Sector: Regulated Electric Utilities
Market Weight

Earnings Estimates Revised Up

2008 2009E 2010E
EPS Curr. Prior Curr. Prior
Q1 (Mar.) $0.48 $0.40 A NC NE
Q2 (June) 0.39 0.58 A NC NE
Q3 (Sep.) 1.14 1.16 A 1.11 NE
Q4 (Dec.) 0.16 0.26 NC NE
FY $2.17 $2.40 2.35 $2.50 2.45
CY $2.17 $2.40 $2.50
FY P/E 13.6x 12.3x 11.8x
Rev.(MM $960 $984 $1,021
Source: Company Data, Wells Fargo Securities, LLC estimates, and Reuters NA = Not Available, NC = No Change, NE = No Estimate, NM = Not Meaningful

Ticker IDA
Price (11/10/2009) $29.52
52-Week Range: $20-31
Shares Outstanding: (MM) 47.3
Market Cap.: (MM) $1,396.3
S&P 500: 1,092.18
Avg. Daily Vol.: 334,274
Dividend/Yield: $1.20/4.1%
LT Debt: (MM) $1,282.9
LT Debt/Total Cap.: 46.0%
ROE: 9.0%
3-5 Yr. Est. Growth Rate: 5.0%
CY 2009 Est. P/E-to-Growth: 2.5x
Last Reporting Date: 10/28/2009
Before Open
Source: Company Data, Wells Fargo Securities, LLC estimates, and Reuters

Neil Kalton, CFA, Senior Analyst
[phone] / [e-mail] Akers, Associate Analyst
[phone] / [e-mail]
Jonathan Reeder, Associate Analyst
[phone] /
[e-mail]

WELLS FARGO SECURITIES, LLC
Utilities EQUITY RESEARCH DEPARTMENT

2

Company Description:
IDACORP (IDA) is the holding company for Idaho Power Company (IPC), a regulated electric utility serving
more than 485,000 customers in southern Idaho, including Boise and surrounding areas, and eastern Oregon.
In addition, IDACORP Financial Services (IFS), a non-utility business, invests in affordable housing tax
credits.

IDA Files Idaho Rate Settlement

Having indicated that parties reached an agreement in principle on its third quarter earnings call,
IDA provided details of the formalized settlement in its November 9th 8-K filing. The settlement,
which will be in lieu of filing a general rate case, includes both base rate and ROE provisions and is
being endorsed by the company, the Idaho Public Utilities Commission (IPUC) Staff and key
customer groups, including irrigation and industrial customers. The settlement is subject to IPUC
approval, which is expected in late 2009 or early 2010. Overall, we view the rate settlement
constructively and supportive of our belief that Idaho regulation has become increasingly
reasonable over the last 12-18 months.

• Base Rate Increase - The settlement calls for the sharing of a reduction of the Power Cost
Adjustment (PCA) for the 2010-2011 PCA year between IDA and customers. Based on the
current estimated PCA reduction of $160 million, which will be finalized following IDA’s
planned April 15, 2010 filing, (1) IDA would retain $25 million of the benefit as an increase to
base rate revenues effective June 1, 2010, (2) customers would receive a $60 million benefit and
(3) the $75 million balance would serve to absorb any increase in the level of base net power
supply costs.

We view this positively as (1) it provides IDA reasonable base rate relief and (2) it reduces the
headline risk related to a likely increase in base power supply costs. We point out that in IDA’s
last rate case the base rate increase and base power supply increase were grouped together and
the result was a very modest base rate increase as the majority of the headline number was
actually driven by power supply costs, which do not flow through to IDA’s bottom line.

• ROE – The agreement includes an allowed ROE of 10.5%, which is consistent with the ROE
approved in Idaho Power’s previous rate case, and provides for 50/50 sharing of earnings above
the 10.5% ROE between customers and shareholders. In the event the Idaho-jurisdictional
ROE is going to fall short of a 9.5% ROE, IDA can amortize up to $45 million of Accumulated
Deferred Investment Tax Credits (ADITC) over the 2009-2011 period in order to help achieve a
minimum ROE of 9.5%. Annual limits of $15 million in 2009 and $25 million in both 2010 and
2011 apply.

It is our understanding that any benefit from employing ADITC amortizations will be realized
in the fourth quarter of each year, allowing IDA to determine what the actual full-year earned
ROE will be. As a result, even though the timing of the rate increase for IDA and rate decrease
for customers occurs in mid-2010, the ADITC provision could actually have an impact on
earnings as early as 2009. If the Idaho jurisdictional ROE is 9.5% or above, IDA will not have
the opportunity to utilize the ADITC amortizations, but unused amounts can be carried over for
future use subject to the $25 million annual limits in 2010 and 2011, respectively. From an
accounting perspective, it is our understanding that the ADITC would show up as an offset to
income taxes in a given year, thereby lowering the effective tax rate.

We view the ROE guidelines favorably as the ADITC provision should help IDA earn at least a
9.5% ROE during the period 2009-2011, which the company has struggled to achieve in recent
years due largely to below average hydro conditions. While the ADITC provisions are
temporary in nature, this is not of particular concern to us as we expect IDA will only need to
utilize this lever should there be a poor hydro year, for example, since we expect the base rate
relief in mid-2010 will allow IDA earn at least a 9.5% ROE under normal circumstances.

Separately, we do not view the 50/50 sharing above 10.5% as necessarily indicative of a greater
possibility for IDA to over-earn the allowed ROE, but rather (1) as a means to provide some
WELLS FARGO SECURITIES, LLC
IDACORP, Inc. EQUITY RESEARCH DEPARTMENT

3

balance to the formula given the ADITC provision, which provides some downside protection to
the earned ROE in Idaho, and (2) to assuage the concerns of other parties, such as the Staff,
that IDA could over-earn the allowed ROE.

The settlement agreement prohibits IDA from filing for new base rates effective before 1/1/12. As a
result, the company could experience some measure of regulatory lag in the second half of 2011 and
into 2012. We expect IDA’s next rate filing will be largely in sync with the commercial operation of
Langley Gulch, which could come online as early as mid-2012 or as late as December 2012.

EPS Outlook – Raising Estimates

We are increasing our 2009-2011 EPS estimates by approximately 2-4% to $2.40, $2.50 and $2.65
from $2.35, $2.45 and $2.55, respectively, based on the filed rate settlement in Idaho, an assumed
acceleration in the timing of Langley Gulch capital expenditures and a modest upward revision to
expected hydro generation in 2009. Figure 1 below details the assumptions underlying our 2009-
2011 EPS estimates, after which we discus the estimate revisions in more detail.

Figure 1: Key Assumptions for 2009-2011 EPS Outlook
2009E 2010E 2011E
Idaho Jurisdictional
Rate Base $ millions 2,094 2,244 2,352
E uit Ratio 49% 49% 49%
Earned ROE* 9.4% 9.9% 9.9%
Earnin s $ millions 95.9 108.9 114.1
EPS $2.00 $2.20 $2.19
AFUDC Earnin s $ millions
Base 1.6 1.0 1.0
Lan le Gulch 0.7 5.9 13.0
Transmission Pro ects 0.0 0.0 0.3
Total AFUDC Earnin s $ millions 2.3 6.9 14.2
EPS $0.05 $0.14 $0.27
Transmission
Rate Base $ millions 72 77 80
E uit Ratio 49% 49% 49%
Earned ROE 11.0% 11.0% 11.0%
Earnin s $ millions 3.9 4.1 4.3
EPS $0.08 $0.08 $0.08
Ore on Jurisdictional
Rate Base $ millions 100 106 111
E uit Ratio 49% 49% 49%
Earned ROE* 2.5% 7.0% 9.5%
Earnin s $ millions 1.2 3.7 5.2
EPS $0.03 $0.07 $0.10
Unre ulated, Parent and Other $0.03 $0.00 $0.00
Bonus De reciation Benefit,
Tax Settlement and Ore on Deferral
Total EPS $2.40 $2.50 $2.65
* The assumed earned ROEs in 2009 exclude the benefit of federal bonus de reciation,
a 2006 tax settlement and the deferral of reviousl incurred ower costs in Ore on.
These items are ca tured in a se arate line item in the table.
$0.21 $0.00 $0.00
Source: Wells Fargo Securities, LLC Estimates and company filings

WELLS FARGO SECURITIES, LLC
Utilities EQUITY RESEARCH DEPARTMENT

4

2009. We are increasing our 2009 EPS estimate to $2.40 from $2.35 based on stronger than
expected third quarter results (IDA reported EPS of $1.16 versus our estimate of $1.11), modestly
improved hydro generation expectations (8.0-8.5 million MWh versus 7.5-8.5 million MWh
previously), and ROE provisions related to potential ADITC amortizations included in the Idaho
rate settlement. According to the settlement, Idaho Power will have the ability to employ
Accumulated Deferred Investment Tax Credit (ADITC) amortizations to achieve a minimum Idaho
jurisdictional ROE of 9.5% beginning in 2009. We are now assuming an earned ROE of 9.4% for
Idaho, which excludes the positive impact of certain non-ADITC related tax benefits. It is our
understanding that these tax benefits, which include federal bonus tax depreciation provisions and
a 2006 tax settlement, will be factored into the ROE calculation to determine whether or not the
company will earn below a 9.5% ROE.

2010 & 2011. We are increasing our 2010 and 2011 EPS estimates to $2.50 and $2.65, from $2.45
and $2.55, respectively, based on IDA’s filed rate settlement and an assumed acceleration of the
timing of Langley Gulch-related capital expenditures.

We accelerated some of the Langley Gulch capital expenditures in our model, resulting in slightly
higher allowance for funds used during construction (AFUDC) earnings in 2010 and, to a greater
degree, 2011. It is our understanding that there is a possibility that Langley Gulch is completed in
mid-2012 versus the original expectation of late 2012. As a result, we would expect a greater
portion of the spending to occur in 2010 and 2011 versus 2012.

Separately, we are now assuming earned ROEs of nearly 10% on IDA’s Idaho jurisdictional rate
base, which reflects our view that the $25 million base rate increase in the rate settlement will give
IDA a reasonable opportunity to earn the allowed ROE. This compares to our previous assumptions
of 9.8% and 9.7% for 2010 and 2011, respectively, and to the 10.5% allowed ROE included in the
Idaho rate settlement. The reason we do not assume the full 10.5% ROE reflects the fact that the
new rates will not be effective until mid-2010 and some regulatory lag could set in the second half of
2011.

Other assumptions baked into our estimates include mid-year 2010 rate relief for IDA’s Oregon
operations and a $110 million equity issuance in mid-2011.

We believe there could be some upside potential to our EPS estimates if hydro conditions are above
average and/or IDA is able to control costs better than expected. By our calculations, every 50 basis
point increase in the company’s earned ROE in Idaho has a roughly $0.10 per share positive impact
on EPS. With that being said, under the current Idaho rate settlement terms, the upside is
somewhat mitigated by the 50/50 sharing provisions for earnings above a 10.5% ROE.

WELLS FARGO SECURITIES, LLC
IDACORP, Inc. EQUITY RESEARCH DEPARTMENT

5

(
i
n

t
h
o
u
s
a
n
d
s

e
x
c
e
p
t

p
e
r

s
h
a
r
e

d
a
t
a
)

2
0
0
5

2
0
0
6

2
0
0
7

2
0
0
8

2
0
0
9
E

2
0
1
0
E

2
0
1
1
E

2
0
1
2
E

2
0
1
3
E

2
0
1
4
E

2
0
1
5
E
Re
v
e
n
u
e
s

$
8
4
2
,
8
6
4

$
9
2
6
,
2
9
1

$
8
7
9
,
3
9
4

$
9
6
0
,
4
1
4

$
9
8
4
,
4
1
5

$
1
,
0
2
0
,
6
4
0

$
1
,
0
6
0
,
8
0
0

$
1
,
0
9
6
,
5
0
0

$
1
,
1
7
0
,
8
0
5

$
1
,
1
9
6
,
3
3
3

$
1
,
2
3
3
,
9
0
4
Ex
p
e
n
s
e
s

P
u
r
c
h
a
s
e
d

P
o
w
e
r
*

2
2
2
,
3
1
0

2
8
3
,
4
4
0

2
8
9
,
4
8
4

2
3
1
,
1
3
7

3
2
5
,
4
7
9

3
2
8
,
6
2
8

3
3
6
,
9
9
4

3
4
4
,
5
7
3

3
5
2
,
3
7
2

3
6
0
,
3
9
5

3
6
8
,
6
5
1

F
u
e
l

E
x
p
e
n
s
e

1
0
3
,
1
6
4

1
1
5
,
0
1
8

1
3
4
,
3
2
2

1
4
9
,
4
0
3
0
0

0

0

0

0

0

P
o
w
e
r

C
o
s
t

A
d
j
u
s
t
m
e
n
t

(
2
,
9
9
5
)

(
2
9
,
5
2
6
)

(
1
2
1
,
1
3
1
)

(
4
7
,
4
1
3
)
0
0

0

0

0

0

0

O
t
h
e
r

O
&
M

2
4
2
,
3
8
1

2
6
4
,
8
1
0

2
8
6
,
5
1
0

2
9
4
,
0
2
9

2
8
7
,
8
0
5

2
9
6
,
7
7
4

3
0
4
,
1
9
3

3
1
1
,
7
9
8

3
1
9
,
5
9
3

3
2
7
,
5
8
3

3
3
5
,
7
7
3

D
e
p
r
e
c
i
a
t
i
o
n

1
0
1
,
4
8
5

9
9
,
8
2
4

1
0
3
,
0
7
2

1
0
2
,
0
8
6

1
1
2
,
9
5
2

1
2
5
,
8
9
1

1
3
5
,
4
5
4

1
4
5
,
2
4
2

1
5
6
,
3
7
3

1
5
9
,
4
7
4

1
6
9
,
5
6
2

O
t
h
e
r

T
a
x
e
s

2
0
,
8
5
6

1
8
,
6
6
1

1
7
,
6
3
4

1
9
,
0
8
3

1
9
,
4
6
5

1
9
,
8
5
4

2
0
,
2
5
1

2
0
,
6
5
6

2
1
,
0
6
9

2
1
,
4
9
1

2
1
,
9
2
0

O
t
h
e
r

2
,
1
8
2

1
2
,
6
1
7

1
7
,
4
2
5

2
1
,
4
2
2

2
1
,
9
2
6

2
1
,
9
2
6

2
1
,
9
2
6

2
1
,
9
2
6

2
1
,
9
2
6

2
1
,
9
2
6

2
1
,
9
2
6
To
t
a
l

E
x
p
e
n
s
e
s
$6
8
9
,
3
8
3
$7
6
4
,
8
4
4
$7
2
7
,
3
1
6
$7
6
9
,
7
4
7
$7
6
7
,
6
2
7
$7
9
3
,
0
7
3
$8
1
8
,
8
1
9
$8
4
4
,
1
9
5
$8
7
1
,
3
3
3
$8
9
0
,
8
6
9
$9
1
7
,
8
3
1
EB
I
T

$
1
5
3
,
4
8
1

$
1
6
1
,
4
4
7

$
1
5
2
,
0
7
8

$
1
9
0
,
6
6
7

$
2
1
6
,
7
8
8

$
2
2
7
,
5
6
6

$
2
4
1
,
9
8
2

$
2
5
2
,
3
0
4

$
2
9
9
,
4
7
2

$
3
0
5
,
4
6
4

$
3
1
6
,
0
7
2
Ot
h
e
r

I
n
c
o
m
e

8
,
4
0
2

6
,
7
2
3

7
,
2
6
6

3

(
4
0
1
)

6
,
4
7
1

1
7
,
4
8
2

3
1
,
9
5
0

1
8
,
8
3
4

4
2
,
0
1
5

5
8
,
4
3
5
In
t
e
r
e
s
t

E
x
p
e
n
s
e

5
9
,
7
2
9

6
0
,
9
7
5

6
3
,
3
4
1

7
3
,
0
5
6

7
0
,
2
1
9

5
9
,
0
0
5

6
2
,
9
9
9

6
7
,
6
2
7

8
3
,
9
0
3

8
6
,
7
4
5

9
2
,
9
5
8
In
c
o
m
e

T
a
x
e
s

1
7
,
6
1
0

1
5
,
3
7
7

1
3
,
7
3
1

1
9
,
2
0
0

3
1
,
3
1
2

5
1
,
2
6
1

5
8
,
7
6
2

6
6
,
8
2
0

7
3
,
0
4
1

8
2
,
2
5
7

8
9
,
5
4
2
Ta
x

R
a
t
e

1
9
%

1
4
%

1
5
%

1
6
%

2
1
%

2
9
%

3
0
%

3
1
%

3
1
%

3
2
%

3
2
%
Ea
r
n
i
n
g
s
In
c
o
m
e

f
r
o
m

C
o
n
t
i
n
u
i
n
g

O
p
e
r
a
t
i
o
n
s

$
8
4
,
5
4
4

$
9
1
,
8
1
8

$
8
2
,
2
7
2

$
9
8
,
4
1
4

$
1
1
4
,
8
5
6

$
1
2
3
,
7
7
1

$
1
3
7
,
7
0
2

$
1
4
9
,
8
0
8

$
1
6
1
,
3
6
2

$
1
7
8
,
4
7
7

$
1
9
2
,
0
0
7
Dis
c
o
n
t
i
n
u
e
d

O
p
e
r
a
t
i
o
n
s

2
2
,
0
5
5

(
7
,
3
2
8
)

(
6
7
)

0

0

0

0

0

0

0

0
Ne
t

I
n
c
o
m
e

$
6
2
,
4
8
9

$
9
9
,
1
4
6

$
8
2
,
3
3
9

$
9
8
,
4
1
4

$
1
1
4
,
8
5
6

$
1
2
3
,
7
7
1

$
1
3
7
,
7
0
2

$
1
4
9
,
8
0
8

$
1
6
1
,
3
6
2

$
1
7
8
,
4
7
7

$
1
9
2
,
0
0
7
Av
g

D
i
l
u
t
e
d

S
h
a
r
e
s

O
u
t
s
t
a
n
d
i
n
g

4
2
,
3
6
2

4
2
,
8
7
4

4
4
,
2
9
1

4
5
,
3
3
2

4
7
,
9
1
8

4
9
,
4
7
9

5
1
,
9
8
6

5
4
,
4
8
4

5
7
,
5
6
7

6
0
,
5
6
8

6
1
,
8
6
5
EP
S

$
1
.
4
8

$
2
.
3
1

$
1
.
8
6

$
2
.
1
7

$
2
.
4
0

$
2
.
5
0

$
2
.
6
5

$
2
.
7
5

$
2
.
8
0

$
2
.
9
5

$
3
.
1
0
No
n
-
R
e
c
u
r
r
i
n
g

(
0
.
3
9
)

0
.
4
8

0
.
0
0

0
.
0
0

0
.
0
0

0
.
0
0

0
.
0
0

0
.
0
0

0
.
0
0

0
.
0
0

0
.
0
0
Op
e
r
a
t
i
n
g

E
P
S
*

$
1
.
8
7

$
1
.
8
3

$
1
.
8
6

$
2
.
1
7

$
2
.
4
0

$
2
.
5
0

$
2
.
6
5

$
2
.
7
5

$
2
.
8
0

$
2
.
9
5

$
3
.
1
0
Su
p
p
l
e
m
e
n
t
a
l

I
n
f
o
r
m
a
t
i
o
n

2
0
0
5

2
0
0
6

2
0
0
7

2
0
0
8

2
0
0
9
E

2
0
1
0
E

2
0
1
1
E

2
0
1
2
E

2
0
1
3
E

2
0
1
4
E

2
0
1
5
E
Di
v
i
d
e
n
d

I
n
f
o
r
m
a
t
i
o
n
Div
i
d
e
n
d
s

P
e
r

S
h
a
r
e

-

Y
E

R
a
t
e

$
1
.
2
0

$
1
.
2
0

$
1
.
2
0

$
1
.
2
0

$
1
.
2
0

$
1
.
2
6

$
1
.
3
2

$
1
.
3
9

$
1
.
4
9

$
1
.
5
9

$
1
.
7
0
Div
i
d
e
n
d
s

P
a
i
d

P
e
r

S
h
a
r
e

1
.
2
0

1
.
2
0

1
.
2
0

1
.
2
0

1
.
2
0

1
.
2
6

1
.
3
2

1
.
3
9

1
.
4
9

1
.
5
9

1
.
7
0
Pa
y
o
u
t

R
a
t
i
o

6
4
%

6
6
%

6
5
%

5
5
%

5
0
%

5
0
%

5
0
%

5
1
%

5
3
%

5
4
%

5
5
%
St
a
t
i
s
t
i
c
s
EB
I
T
D
A

/

S
h
a
r
e

$
6
.
0
2

$
6
.
0
9

$
5
.
7
6

$
6
.
4
6

$
6
.
8
8

$
7
.
1
4

$
7
.
2
6

$
7
.
3
0

$
7
.
9
2

$
7
.
6
8

$
7
.
8
5
Ca
s
h

F
l
o
w

/

S
h
a
r
e

3
.
8
2

3
.
9
7

1
.
8
3

3
.
0
2

5
.
5
2

5
.
0
6

4
.
1
9

4
.
0
2

4
.
6
2

4
.
8
5

4
.
7
5
Bo
o
k

V
a
l
u
e

/

S
h
a
r
e

(
y
e
a
r

e
n
d
)

2
4
.
0
4

2
5
.
6
0

2
6
.
7
9

2
7
.
7
5

2
8
.
9
5

3
0
.
2
0

3
1
.
5
8

3
2
.
9
8

3
4
.
4
3

3
5
.
8
5

3
7
.
3
3
Av
e
r
a
g
e

B
o
o
k

V
a
l
u
e

/

S
h
a
r
e

2
3
.
9
6

2
4
.
8
2

2
6
.
2
0

2
7
.
2
7

2
8
.
3
5

2
9
.
5
7

3
0
.
8
9

3
2
.
2
8

3
3
.
7
0

3
5
.
1
4

3
6
.
5
9
RO
E

o
f

I
D
A
C
O
R
P

7
.
9
%

8
.
2
%

7
.
1
%

8
.
0
%

8
.
5
%

8
.
5
%

8
.
6
%

8
.
5
%

8
.
3
%

8
.
4
%

8
.
5
%
RO
E

o
f

I
d
a
h
o

P
o
w
e
r

C
o
m
p
a
n
7.
7
%

9
.
6
%

7
.
2
%

8
.
2
%

8
.
7
%

8
.
0
%

8
.
1
%

8
.
0
%

7
.
8
%

7
.
9
%

8
.
0
%
*2
0
0
9
E
-
2
0
1
5
E

"
P
u
r
c
h
a
s
e
d

P
o
w
e
r
"

l
i
n
e

i
t
e
m

i
n
c
l
u
d
e
s

e
s
t
i
m
a
t
e
d

f
u
e
l

a
n
d

P
C
A

c
o
s
t
s
.
*O
p
e
r
a
t
i
n
g

E
P
S

e
x
c
l
u
d
e

n
o
n
-
r
e
c
u
r
r
i
n
g

i
t
e
m
s
;

0
9
E

E
P
S

i
n
c
l
u
d
e
s

b
o
n
u
s

d
e
p
r
e
c
i
a
t
i
o
n

b
e
n
e
f
i
t
,

t
a
x

s
e
t
t
l
e
m
e
n
t

a
n
d

O
r
e
g
o
n

d
e
f
e
r
r
a
l
.
So
u
r
c
e
:

W
e
l
l
s

F
a
r
g
o

S
e
c
u
r
i
t
i
e
s
,

L
L
C

e
s
t
i
m
a
t
e
s

a
n
d

c
o
m
p
a
n
y

f
i
l
i
n
g
s
Ea
r
n
i
n
g
s

M
o
d
e
l

WELLS FARGO SECURITIES, LLC
Utilities EQUITY RESEARCH DEPARTMENT

6

Ca
s
h

F
l
o
w

M
o
d
e
l

(
i
n

t
h
o
u
s
a
n
d
s
)

2
0
0
5

2
0
0
6

2
0
0
7

2
0
0
8

2
0
0
9
E

2
0
1
0
E

2
0
1
1
E

2
0
1
2
E

2
0
1
3
E

2
0
1
4
E

2
0
1
5
E
Op
e
r
a
t
i
n
g

C
a
s
h

F
l
o
w
Ne
t

I
n
c
o
m
e

$
6
3
,
6
6
1

$
1
0
7
,
4
0
3

$
8
2
,
3
3
9

$
9
8
,
4
1
4

$
1
1
4
,
8
5
6

$
1
2
3
,
7
7
1

$
1
3
7
,
7
0
2

$
1
4
9
,
8
0
8

$
1
6
1
,
3
6
2

$
1
7
8
,
4
7
7

1
9
2
,
0
0
7

D
e
p
r
e
c
i
a
t
i
o
n

&

A
m
o
r
t
i
z
a
t
i
o
n

1
2
4
,
1
2
4

1
2
2
,
6
4
1

1
2
0
,
3
6
8

1
2
2
,
4
4
0

1
3
2
,
9
5
2

1
4
5
,
8
9
1

1
5
5
,
4
5
4

1
6
5
,
2
4
2

1
7
6
,
3
7
3

1
7
9
,
4
7
4

1
8
9
,
5
6
2

N
e
t

O
t
h
e
r

(
3
4
,
5
2
0
)

(
5
8
,
9
0
2
)

(
1
0
8
,
9
5
4
)

(
5
2
,
2
2
4
)

1
5
,
6
1
6

(
2
0
,
1
9
8
)

(
7
5
,
9
3
3
)

(
9
6
,
6
0
9
)

(
7
2
,
8
6
5
)

(
6
4
,
9
9
1
)

(
8
8
,
4
5
5
)

W
o
r
k
i
n
g

C
a
p
i
t
a
l

8
,
2
3
1

(
1
,
3
6
4
)

(
1
3
,
1
5
2
)

(
3
2
,
1
1
7
)

0

0

0

0

0

0

0
Ne
t

O
p
e
r
a
t
i
n
g

C
a
s
h

F
l
o
w

$
1
6
1
,
4
9
6

$
1
6
9
,
7
7
8

$
8
0
,
6
0
1

$
1
3
6
,
5
1
3

$
2
6
3
,
4
2
4

$
2
4
9
,
4
6
4

$
2
1
7
,
2
2
3

$
2
1
8
,
4
4
1

$
2
6
4
,
8
7
0

$
2
9
2
,
9
6
1

$
2
9
3
,
1
1
3
In
v
e
s
t
i
n
g

C
a
s
h

F
l
o
w
Co
n
s
t
r
u
c
t
i
o
n

E
x
p
e
n
d
i
t
u
r
e
s

(
$
1
9
3
,
3
1
4
)

(
$
2
2
5
,
0
4
8
)

(
$
2
8
7
,
2
1
9
)

(
$
2
4
3
,
5
4
4
)

(
$
2
7
4
,
5
0
0
)

(
$
3
6
7
,
0
0
0
)

(
$
3
6
8
,
6
0
0
)

(
$
3
8
4
,
2
6
3
)

(
$
4
7
1
,
9
9
1
)

(
$
4
7
4
,
2
8
6
)

(
$
30
1
,
6
4
9
)
In
v
e
s
t
m
e
n
t
s

i
n

A
f
f
o
r
d
a
b
l
e

H
o
u
s
i
n
g

P
r
o
j
e
c
t
s

(
4
,
9
9
2
)

(
5
,
0
5
9
)

3
4
8

(
8
,
3
1
4
)

(
1
5
,
0
0
0
)

(
5
,
0
0
0
)

(
5
,
0
0
0
)

(
5
,
0
0
0
)

(
5
,
0
0
0
)

(
5
,
0
0
0
)

(
5
,
0
0
0
)
Pr
o
c
e
e
d
s

f
r
o
m

S
a
l
e

o
f

N
o
n
-
U
t
i
l
i
t
y

A
s
s
e
t
s

1
,
0
1
9

1
4
6

0

5
,
8
4
7
0

0

0

0

0

0

0
Ot
h
e
r

1
0
8
,
3
3
7

(
2
3
,
0
7
9
)

1
9
,
7
6
1

4
3
,
1
8
7

0

0

0

0

0

0

0
Ne
t

I
n
v
e
s
t
i
n
g

C
a
s
h

F
l
o
w
($
8
8
,
9
5
0
)

(
$
2
5
3
,
0
4
0
)

(
$
2
6
7
,
1
1
0
)

(
$
2
0
2
,
8
2
4
)

(
$
2
8
9
,
5
0
0
)

(
$
3
7
2
,
0
0
0
)

(
$
3
7
3
,
6
0
0
)

(
$
3
8
9
,
2
6
3
)

(
$
4
7
6
,
9
9
1
)

(
$
4
7
9
,
2
8
6
)

(
$
3
0
6
,
6
4
9
)
Fi
n
a
n
c
i
n
g

C
a
s
h

F
l
o
w
Is
s
u
a
n
c
e

o
f

L
T

D
e
b
t

$
6
4
,
9
9
2

$
1
1
6
,
3
0
0

$
2
4
0
,
0
0
0

$
1
2
0
,
0
0
0

$
1
0
0
,
0
0
0

$
1
4
0
,
0
0
0

$
2
5
0
,
0
0
0

$
2
7
0
,
0
0
0

$
2
4
0
,
0
0
0

$
2
2
0
,
0
0
0

$
8
5
,
0
0
0
Is
s
u
a
n
c
e

o
f

T
e
r
m

L
o
a
n
s

$
1
7
0
,
0
0
0

(
$
1
7
0
,
0
0
0
)

$
0

$
0

$
0

$
0

$
0

$
0
Re
t
i
r
e
m
e
n
t

o
f

L
T

D
e
b
t

(
8
3
,
0
6
7
)

(
1
3
2
,
6
4
2
)

(
9
5
,
0
3
3
)

(
1
1
,
3
4
9
)

(
8
1
,
0
6
4
)

(
1
,
0
6
4
)

(
1
2
1
,
0
6
4
)

(
1
0
1
,
0
6
4
)

(
7
1
,
0
6
1
)

0

0
Pu
r
c
h
a
s
e

o
f

P
o
l
l
u
t
i
o
n

C
o
n
t
r
o
l

B
o
n
d
s

(
1
6
6
,
1
0
0
)

1
6
6
,
1
0
0

0

0

0

0

0

0
Re
t
i
r
e
m
e
n
t

o
f

P
r
e
f
e
r
r
e
d

S
t
o
c
k

o
f

I
D

P
o
w
e
r

0

0

0

0

0

0

0

0

0

0

0
Di
v
i
d
e
n
d
s

o
n

C
o
m
m
o
n

S
t
o
c
k

(
5
0
,
6
9
0
)

(
5
1
,
2
7
2
)

(
5
3
,
0
1
2
)

(
5
4
,
2
3
9
)

(
5
7
,
2
7
9
)

(
6
2
,
1
1
1
)

(
6
8
,
5
3
2
)

(
7
5
,
4
2
9
)

(
8
5
,
2
9
2
)

(
9
6
,
0
3
6
)

(
1
0
4
,
9
6
5
)
ST

D
e
b
t

2
3
,
8
3
0

6
8
,
9
0
0

5
7
,
4
4
5

(
3
9
,
0
9
5
)

2
0
,
0
0
0

0

5
,
0
0
0

2
5
,
0
0
0

(
4
0
,
0
0
0
)

1
0
,
0
0
0

(
1
5
,
0
0
0
)
Co
m
m
o
n

S
t
o
c
k

I
s
s
u
e
d

6
,
2
9
6

4
1
,
4
6
5

3
7
,
1
8
1

5
0
,
8
6
3

4
5
,
0
0
0

4
5
,
0
0
0

1
1
0
,
0
0
0

5
0
,
0
0
0

1
6
5
,
0
0
0

5
0
,
0
0
0

5
0
,
0
0
0
Ac
q
u
i
s
i
t
i
o
n

o
f

T
r
e
a
s
u
r
y

S
h
a
r
e
s

0

(
2
1
3
)

(
3
4
6
)

(
3
0
4
)

0

0

0

0

0

0

0
Ot
h
e
r

(
4
,
9
5
4
)

(
1
,
7
4
0
)

(
1
,
6
5
2
)

(
2
,
6
0
3
)

0

0

0

0

0

0

0
Ne
t

F
i
n
a
n
c
i
n
g

C
a
s
h

F
l
o
w
($
4
3
,
5
9
3
)

$
4
0
,
7
9
8

$
1
8
4
,
5
8
3

$
6
7
,
1
7
3

$
2
2
,
7
5
7

$
1
2
1
,
8
2
5

$
1
7
5
,
4
0
4

$
1
6
8
,
5
0
7

$
2
0
8
,
6
4
7

$
1
8
3
,
9
6
4

$
1
5
,
0
3
5
Ne
t

C
h
a
n
g
e

i
n

C
a
s
h

$
2
8
,
9
5
3

(
$
4
2
,
4
6
4
)

(
$
1
,
9
2
6
)

$
8
6
2

(
$
3
,
3
1
9
)

(
$
7
1
1
)

$
1
9
,
0
2
7

(
$
2
,
3
1
5
)

(
$
3
,
4
7
4
)

(
$
2
,
3
6
1
)

$
1
,
4
9
9
Ca
s
h

a
t

b
e
g
i
n
n
i
n
g

o
f

p
e
r
i
o
d

2
3
,
4
0
3

5
2
,
3
5
6

9
,
8
9
2

7
,
9
6
6

8
,
8
2
8

5
,
5
0
9

4
,
7
9
8

2
3
,
8
2
5

2
1
,
5
0
9

1
8
,
0
3
5

1
5
,
6
7
4
Ca
s
h

a
t

e
n
d

o
f

p
e
r
i
o
d

$
5
2
,
3
5
6

$
9
,
8
9
2

$
7
,
9
6
6

$
8
,
8
2
8

$
5
,
5
0
9

$
4
,
7
9
8

$
2
3
,
8
2
5

$
2
1
,
5
0
9

$
1
8
,
0
3
5

$
1
5
,
6
7
4

$
1
7
,
1
7
3
Ca
p
i
t
a
l

S
t
r
u
c
t
u
r
e

2
0
0
5

2
0
0
6

2
0
0
7

2
0
0
8

2
0
0
9
E

2
0
1
0
E

2
0
1
1
E

2
0
1
2
E

2
0
1
3
E

2
0
1
4
E

2
0
1
5
E
Co
m
m
o
n

E
q
u
i
t
y
$1
,
0
2
5
,
2
5
1

$
1
,
1
2
4
,
1
8
3

$
1
,
2
0
7
,
3
1
5

$
1
,
3
0
2
,
4
3
7

$
1
,
4
0
5
,
0
1
4

$
1
,
5
1
1
,
6
7
4

$
1
,
6
9
0
,
8
4
3

$
1
,
8
1
5
,
2
2
3

$
2
,
0
5
6
,
2
9
2

$
2
,
1
8
8
,
7
3
4

$
2
,
3
2
5
,
7
7
6
Lo
n
g
-
T
e
r
m

D
e
b
t
1,
0
2
3
,
5
8
0

9
2
8
,
6
4
8

1
,
1
5
6
,
8
8
0

1
,
1
8
3
,
4
5
1

1
,
1
9
8
,
4
8
7

1
,
3
3
7
,
4
2
3

1
,
4
6
6
,
3
5
9

1
,
6
3
5
,
2
9
5

1
,
8
0
4
,
2
3
4

2
,
0
2
4
,
2
3
4

2
,
1
0
9
,
2
3
4
Sh
o
r
t
-
T
e
r
m

D
e
b
t
76
,
4
0
7
22
4
,
1
2
5
19
7
,
9
0
1
23
7
,
7
7
8
25
7
,
7
7
8
25
7
,
7
7
8
26
2
,
7
7
8
28
7
,
7
7
8
24
7
,
7
7
8
25
7
,
7
7
8
24
2
,
7
7
8
To
t
a
l

C
a
p
i
t
a
l
i
z
a
t
i
o
n

$
2
,
1
2
5
,
2
3
8

$
2
,
2
7
6
,
9
5
6

$
2
,
5
6
2
,
0
9
6

$
2
,
7
2
3
,
6
6
6

$
2
,
8
6
1
,
2
7
9

$
3
,
1
0
6
,
8
7
5

$
3
,
4
1
9
,
9
8
0

$
3
,
7
3
8
,
2
9
6

$
4
,
1
0
8
,
3
0
4

$
4
,
4
7
0
,
7
4
6

$
4
,
6
7
7
,
78
8
%
E
q
u
i
t
y
48

4
9

4
7

4
8

4
9

4
9

4
9

4
9

5
0

4
9

5
0
%
L
o
n
g
-
T
e
r
m

D
e
b
t
48

4
1

4
5

4
3

4
2

4
3

4
3

4
4

4
4

4
5

4
5
%
S
h
o
r
t
-
T
e
r
m

D
e
b
t
4
1
0

8

9

9

8

8

8

6

6

5
So
u
r
c
e
:

W
e
l
l
s

F
a
r
g
o

S
e
c
u
r
i
t
i
e
s
,

L
L
C

e
s
t
i
m
a
t
e
s

a
n
d

c
o
m
p
a
n
y

f
i
l
i
n
g
s

WELLS FARGO SECURITIES, LLC
IDACORP, Inc. EQUITY RESEARCH DEPARTMENT

7

Required Disclosures

$18.00
$20.00
$22.00
$24.00
$26.00
$28.00
$30.00
$32.00
$34.00
$36.00
$38.00
$40.00
$42.00
$44.00
$46.00
11
/
7
/
0
6
12
/
5
/
0
6
1/2
/
0
7
1/3
0
/
0
7
2/2
7
/
0
7
3/2
7
/
0
7
4/2
4
/
0
7
5/2
2
/
0
7
6/1
9
/
0
7
7/1
7
/
0
7
8/1
4
/
0
7
9/1
1
/
0
7
10
/
9
/
0
7
11
/
6
/
0
7
12
/
4
/
0
7
1/1
/
0
8
1/2
9
/
0
8
2/2
6
/
0
8
3/2
5
/
0
8
4/2
2
/
0
8
5/2
0
/
0
8
6/1
7
/
0
8
7/1
5
/
0
8
8/1
2
/
0
8
9/9
/
0
8
10
/
7
/
0
8
11
/
4
/
0
8
12
/
2
/
0
8
12
/
3
0
/
0
8
1/2
7
/
0
9
2/2
4
/
0
9
3/2
4
/
0
9
4/2
1
/
0
9
5/1
9
/
0
9
6/1
6
/
0
9
7/1
4
/
0
9
8/1
1
/
0
9
9/8
/
0
9
10
/
6
/
0
9
11
/
3
/
0
9
Se
c
u
r
i
t
y

P
r
i
c
e

IDACORP, Inc. (IDA) 3-yr. Price PerformanceIDACORP, Inc. (IDA) 3-yr. Price Performance
Date
Date Publication Price ($) Rating Code Val. Rng. Low Val. Rng. High Close Price ($)
11/7/2006 Brothwell 11/7/2006 NA 2 35.00 38.00 38.75
z 1/19/2007 NA 2 34.00 37.00 37.22
dz 2/16/2007 NA 3 31.00 33.00 35.60
z 5/10/2007 NA 3 30.00 33.00 32.84
z 6/11/2007 NA 3 30.00 32.00 31.78
z 8/9/2007 NA 3 32.00 34.00 34.77
c 8/30/2007 32.29 2 32.00 34.00 32.52
z 11/1/2007 34.89 2 33.00 35.00 33.70
„ 11/14/2007 Kalton
z 11/14/2007 33.79 2 34.00 35.00 33.85
z 2/15/2008 32.04 2 31.00 33.00 31.46
z 12/18/2008 29.19 2 30.00 32.00 29.24
z 2/19/2009 24.39 2 26.00 27.00 24.39
z 8/6/2009 27.79 2 27.00 29.00 27.79
z 9/10/2009 28.37 2 29.00 30.00 28.37
Source: Wells Fargo Securities, LLC estimates and Reuters data
Symbol Key Rating Code Key
d Rating Downgrade ‹ Initiation, Resumption, Drop or Suspend 1 Outperform/Buy SR Suspended
c Rating Upgrade „ Analyst Change 2 Market Perform/Hold NR Not Rated
z Valuation Range Change ˆ Split Adjustment 3 Underperform/Sell NE No Estimate

Additional Information Available Upon Request

I certify that:
1) All views expressed in this research report accurately reflect my personal views about any and all of the subject securities or
issuers discussed; and
2) No part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed
by me in this research report.

ƒ Wells Fargo Securities, LLC or its affiliates managed or comanaged a public offering of securities for IDACORP, Inc. within the
past 12 months.
ƒ Wells Fargo Securities, LLC or its affiliates intends to seek or expects to receive compensation for investment banking services in
the next three months from IDACORP, Inc.
ƒ Wells Fargo Securities, LLC or its affiliates received compensation for investment banking services from IDACORP, Inc. in the
past 12 months.
ƒ IDACORP, Inc. currently is, or during the 12-month period preceding the date of distribution of the research report was, a client
of Wells Fargo Securities, LLC. Wells Fargo Securities, LLC provided investment banking services to IDACORP, Inc.
ƒ IDACORP, Inc. currently is, or during the 12-month period preceding the date of distribution of the research report was, a client
of Wells Fargo Securities, LLC. Wells Fargo Securities, LLC provided noninvestment banking securities-related services to
IDACORP, Inc.
ƒ Wells Fargo Securities, LLC received compensation for products or services other than investment banking services from
WELLS FARGO SECURITIES, LLC
Utilities EQUITY RESEARCH DEPARTMENT

8

IDACORP, Inc. in the past 12 months.

Risks to our valuation include project delays or cancellations and consistently below average hydroelectric conditions.
Wells Fargo Securities, LLC does not compensate its research analysts based on specific investment banking transactions.
Wells Fargo Securities, LLC’s research analysts receive compensation that is based upon and impacted by the overall profitability
and revenue of the firm, which includes, but is not limited to investment banking revenue.

STOCK RATING
1=Outperform: The stock appears attractively valued, and we believe the stock's total return will exceed that of the market over the
next 12 months. BUY
2=Market Perform: The stock appears appropriately valued, and we believe the stock's total return will be in line with the market
over the next 12 months. HOLD
3=Underperform: The stock appears overvalued, and we believe the stock's total return will be below the market over the next 12
months. SELL
SECTOR RATING
O=Overweight: Industry expected to outperform the relevant broad market benchmark over the next 12 months.
M=Market Weight: Industry expected to perform in-line with the relevant broad market benchmark over the next 12 months.
U=Underweight: Industry expected to underperform the relevant broad market benchmark over the next 12 months.
VOLATILITY RATING
V = A stock is defined as volatile if the stock price has fluctuated by +/-20% or greater in at least 8 of the past 24 months or if the
analyst expects significant volatility. All IPO stocks are automatically rated volatile within the first 24 months of trading.

As of: November 10, 2009
42% of companies covered by Wells Fargo Securities, LLC
Equity Research are rated Outperform.
Wells Fargo Securities, LLC has provided investment banking
services for 35% of its Equity Research Outperform-rated
companies.
53% of companies covered by Wells Fargo Securities, LLC
Equity Research are rated Market Perform.
Wells Fargo Securities, LLC has provided investment banking
services for 33% of its Equity Research Market Perform-rated
companies.
6% of companies covered by Wells Fargo Securities, LLC
Equity Research are rated Underperform.
Wells Fargo Securities, LLC has provided investment banking
services for 36% of its Equity Research Underperform-rated
companies.

Important Disclosure for International Clients
The securities and related financial instruments described herein may not be eligible for sale in all jurisdictions or to certain
categories of investors. For certain non-U.S. institutional reader (including readers in the EEA), this report is distributed by
Wells Fargo Securities International Limited (“WFSIL”). For the purposes of Section 21 of the UK Financial Services and Markets
Act 2000 (“the Act”), the content of this report has been approved by WFSIL a regulated person under the Act. WFSIL does not deal
with retail clients as defined in the Markets in Financial Instruments Directive 2007. This research is not intended for, and should
not be relied upon, by retail clients.
Important Information for Australian Recipients
Wells Fargo Securities, LLC is exempt from the requirements to hold an Australian financial services license in respect of the
financial services it provides to wholesale clients in Australia. Wells Fargo Securities, LLC is a registered broker-dealer registered
with the U.S. Securities and Exchange Commission, and a member of the New York Stock Exchange, the Financial Industry
Regulatory Authority, and the Securities Investor Protection Corp. Wells Fargo Securities, LLC is regulated under U.S. laws which
differ from Australian laws. Any offer or documentation provided to you by Wells Fargo Securities, LLC in the course of providing
the financial services will be prepared in accordance with the laws of the United States and not Australian laws.
WELLS FARGO SECURITIES, LLC
IDACORP, Inc. EQUITY RESEARCH DEPARTMENT

9

Important Information for Recipients in the Hong Kong Special Administrative Region of the People's
Republic of China ("Hong Kong")
For recipients resident in Hong Kong, this research is issued and distributed in Hong Kong by Wells Fargo Securities Limited.
Wells Fargo Securities Limited is a Hong Kong incorporated investment firm licensed and regulated by the Securities and Futures
Commission to carry on types 1, 4, 6 and 9 regulated activities (as defined in the Securities and Futures Ordinance [the "SFO"]). This research is not intended for, and should not be relied on by, any person other than professional investors (as defined in the SFO).
The securities and related financial instruments described herein are not intended for sale nor will be sold to any person other than
professional investors (as defined in the SFO). Any sale of any securities or related financial instruments described herein will be
made in Hong Kong by Wells Fargo Securities Limited. Please consult your Wells Fargo Securities Limited sales representative or the
Wells Fargo Securities Limited office in your area for additional information.
Important Information for Japanese Recipients
This material is distributed in Japan by Wells Fargo Securities (Japan) Co., Ltd., a foreign securities company registered with the
Financial Services Agency in Japan.
Additional Disclosures
Wells Fargo Securities, LLC is a U.S. broker-dealer registered with the U.S. Securities and Exchange Commission and a member of
the New York Stock Exchange, the Financial Industry Regulatory Authority and the Securities Investor Protection Corp.
Wells Fargo Securities International Limited is a U.K. incorporated investment firm authorized and regulated by the Financial Services Authority.
This report is for your information only and is not an offer to sell, or a solicitation of an offer to buy, the securities or instruments
named or described in this report. Interested parties are advised to contact the entity with which they deal, or the entity that
provided this report to them, if they desire further information. The information in this report has been obtained or derived from
sources believed by Wells Fargo Securities, LLC, to be reliable, but Wells Fargo Securities, LLC, does not represent that
thisinformation is accurate or complete. Any opinions or estimates contained in this report represent the judgment of
Wells Fargo Securities, LLC, at this time, and are subject to change without notice. For the purposes of the U.K. Financial Services
Authority's rules, this report constitutes impartial investment research. Each of Wells Fargo Securities, LLC, and
Wells Fargo Securities International Limited is a separate legal entity and distinct from affiliated banks. Copyright © 2009
Wells Fargo Securities, LLC.

SECURITIES: NOT FDIC-INSURED/NOT BANK-GUARANTEED/MAY LOSE VALUE