COC IDA_RBC_Note_2009_05_08_1Q09.pdf

PRICE TARGET REVISION | COMMENT
MAY 7, 2009
IDACORP, Inc.(NYSE: IDA)
Weak 1Q09, offset by decoupling and hydro outlook
Sector Perform
Above Average Risk
Price:24.01
Shares O/S (MM):45.2
Dividend:1.20
NAVPS:30.00
Debt to Cap:51%
Price Target:30.00 ¯31.00
Implied All-In Return:30%
Market Cap (MM):1,085
Yield:5.0%
P/NAVPS:0.8x
IDA reported 1Q09 adjusted EPS of $0.40 vs. our estimate
of $0.48 and consensus of $0.55
Lowering CNAV and target price to $30 from $31. Maintaining SP rating.
1Q09 results reflect PCA allocation changes
Year-over-year, IDA realized a $0.08-$0.09 negative impact due to the timing of
PCA cost recovery allocation. While notable for the quarter, this timing issue
should not affect annual results. Energy usage was also down for the quarter, but
the affect is offset by the LGAR and FCA (decoupling) mechanisms.
Proposed plant signals growth, could set regulatory precedent
The ID state legislature recently passed SB1123, which permits regulators to
grant prior-approval for certain capital projects. The new parameters should
provide for easier access to capital markets for these projects. The proposed
Langley Gulch 330MW CCGT plant would qualify under this new legislation.
IDA applied for a Certificate of Public Convenience and Necessity for the plant,
which estimated to cost $427MM. This filing will test the implementation of the
new SB1123.
Possibility of equity issuances for 2009 diminished
Given current forecasts for customer growth and operating costs for 2009, IDA
estimates that there is now very little need for equity issuances from its shelf
registration. Last year the company issued ~$50 from this shelf and had
previously stated that 2009 issuances would be less. This excludes any possible
equity financing associated with the Langley Gulch power plant.
Debt issuance demonstrates financial flexibility
IDA issued $100MM in 1sr Mortgage Bonds at 6.15% due 2019. The issuance
was part of IDA's shelf registration and funds will be used for general corporate
purposes.
Conclusion:
Despite a continued regulatory disconnect with the investor community, the
decoupling mechanism currently being piloted in IDA should help the company
perform in line with its peers in 2009. Additionally, hydrology levels are above
last year's levels, although still below normal, which should support positive
investor sentiment. We also expect to see positive benefits throughout the year
from the recent rate increase. Longer term, the Langley Gulch power plant and
transmission projects should add steady rate base growth.
Adjusting estimates to reflect 1Q09 results
2009E to $2.12 from $2.22, 2010E stays at $2.33, 2011E stays at $2.38.
Priced as of prior trading day's market close, EST (unless otherwise noted).
RBC Capital Markets Corp.
Lasan Johong (Analyst)
[phone]; [e-mail]
Emily Christy (Associate)
[phone]; [e-mail]
Ella Vuernick (Associate)
[phone]; [e-mail]
FY Dec 2007A 2008A 2009E 2010E
Adj EPS - FD 1.86 2.16 2.12 2.33
Prev.2.22
P/AEPS 12.9x 11.1x 11.3x 10.3x
Adj CFPS - FD 1.77 3.59 4.98 4.40
Prev.4.47 4.64
P/ACFPS 13.6x 6.7x 4.8x 5.5x
EBITDA (MM) 262.0 292.0 338.0 372.0
Prev.359.0 380.0
FCFPS - FD (2.63) (2.51) 0.88 (0.35)
Prev.(2.59) 0.79 (0.08)
P/FCF NM NM 27.3x NM
Adj EPS - FD Q1 Q2 Q3 Q4
2007 0.56A 0.42A 0.65A 0.23A
2008 0.48A 0.35A 1.14A 0.19A
2009 0.40A 0.32E 1.09E 0.31E
Prev.0.48E 0.38E 1.11E 0.25E
Adj CFPS - FD
2007 0.98A 0.30A 0.50A 0.00A
2008 1.02A 1.08A 1.19A 0.33A
2009 1.74A 0.84E 1.59E 0.81E
Prev.1.03E 0.96E 1.67E
EBITDA (MM)
2007 70.0A 62.0A 76.0A 54.0A
2008 71.0A 66.0A 112.0A 42.0A
2009 69.0A 72.0E 127.0E 71.0E
Prev.83.0E 78.0E 129.0E 69.0E
All values in USD unless otherwise noted.
For Required Disclosures, please see Page 7.
2
Details
Snowpack levels have improved
Hydrology for 2009 is forecasted to be below average, but improved year-over-year with snowpack at 91% of normal and reservoir
levels at 8%above normal. IDA's 2009 outlook is unchanged with forecasted hydrogenation is 6.5-8.5 MM MWh, compared to 2008
results of 6.9 MM MWh and normal average of 8.5 MM MWh. Load and customer growth are still projected to be flat to modest.
Capital spending is expected to be $220-$230MM for 2009 and $780-$800MM for 2009-2011, excluding the Langley Gulch plant.
Langley Gulch plant application
IDA applied for a Certificate of Public Convenience and Necessity (CPCN) for a 330MW baseload CCGT plant estimated to cost
$427.4MM. If there are no significant delays in financing or permitting, IDA expects the plant to be online by December, 2012. In the
application and supporting testimony, IDA proposes two alternate rate-making mechanisms that it believes will aid in acquiring
financing for the project under these difficult credit conditions. The first is to include CWIP in rates so that rate increases are softer for
consumers, and cash needs are reduced for IDA. The second mechanism follows recently passed SB1123 which would provide some
sort of pre-approval on the regulatory treatment of the plant once it is in service. We support the first alternative and believe that IDA
has put forth a compelling case for its regulatory approval. Under the 1st scenario, overall costs would be lessened since IDA would
not have to issue as much dilutive equity while the project is being constructed. The second mechanism is more of a wildcard as IDA
will be the guinea pig for the new legislation, but could result in a strong regulatory precedent to ease project financing going forward.
A decision on the CPCN is expected in 3Q09.
Permitting delays push back Boardman transmission line
Due to the large scope of the project, the process of siting the line has taken longer than expected and the expected online date is now
2015 instead of 2013. The line spans 300 miles from northeast OR to southwest ID and is expected to cost $600MM. IDA is seeking
partners for the project of up to 50% ownership. This line is not currently in the capex forecast and we have not modeled the potential
impact at this early stage.
Annual Power Cost Adjustment
On April 15th IDA filed its annual PCA true-up in which it requested a rate increase of $93.8MM to cover the over/under collection of
power costs over the past year, and the expected costs for the next year. The increase is largely the result of higher than forecasted
energy costs over the last year due to poor hydroelectric production.
Fixed Cost Adjustment
IDA requested $2.7MM increase to rates, which translates into a 0.82% increase, for June 1, 2009 – May 31st, 2010, based on 2008
actual results. In 2008 customer growth was higher than demand growth, therefore resulting in a revenue deficiency. Last year's
adjustment was -$2.4MM. IDA requested that the application be considered without a hearing. Under this mechanism the amount is
trued-up annually, but monthly updates are provided to the commission in its PCA filings so the end result should not be surprising.
Energy Efficiency Rider
IDA requested an increase in the energy efficiency rider to 4.75% of rates instead of the 2.5% currently approved. For 2008, the rider
produced a deficit of $3.9MM which is expected to grow to $16.2MM by the end of 2009 if rates do not change. The 2008 deficit is
included in the 4.75% increase in addition to future program cost expectations. Key changes to the programs that have prompted the
filing include increases to the Irrigation Peak Rewards program and a new program for commercial and industrial customers, in
addition to greater participation for existing programs. Total costs for 2009-2011 are projected to be $29.6MM, $29.5MM and
$31.8MM, respectively, as compared to 2008 costs of $21.3M. IDA currently has 13 programs supporting this rider. The filing also
requests that the matter be examined through filings rather than a hearing.
Advanced Metering Initiative
IDA requested a revenue requirement increase of $11.2MM, a 1.61% increase, in order to proceed with the program. If funding
becomes a concern for the company in general, AMI is likely to be delayed so that capital can be deployed to more urgent projects.
Total investment by 5/31/10 is projected to be $37.5MM, which is $4.6MM higher than proposed due to timing differences. Vendors
have been more available to meet IDA's needs that previously expected. Cost elements include: $23.9MM in accelerated depreciation
for existing meters, $9.7MM in depreciation for new meters, and O&M savings of $1.5MM during the initial years.
Demand Side Incentives
IDA proposed cancellation of current Energy Star incentive program due to abnormal housing metrics and the benign effect of the
program on the utility. IDA proposes an open docket for this issue and workshops designed to evaluate new program mechanisms and
issues.
Valuation
Valuation:Our target price and our calculated net-asset-value (CNAV) is $30. We determine our CNAV based on a full discounted cash
flow model using an average of Free Cash Flow to the Firm and Free Cash Flow to Equity. We apply a multistage growth rate with a
IDACORP, Inc.May 7, 2009
3
terminal multiple of 11.8x based on a dynamic WACC with an initial rate of 7.64%. The terminal value is calculated approximately 25
years forward.
As a pure-play electric utility with a significant hydroelectric generation fleet, IDA operates in a heavily regulated environment.
Considering the risk management policies of IDA, the Idaho regulatory structure, solid operations and the above-average population
growth for the service territory, the company continues to perform as expected.
Price Target Impediment
Volatile hydrology, unfavorable regulatory decisions, poor growth project selections, operational setbacks, changes in credit ratings,
environmental regulations, cost overruns with the capex projects, access to capital markets, and weather.
Company Description
IDACORP is a holding company for the following subsidiaries: Idaho Power Company, IDACORP Financial, and Ida-West Energy.
Idaho Power Company (IPC) is a regulated utility serving approximately 472,000 customers in Idaho and western Oregon. Through its
regulated operations, IPC generates, purchases, transmits, distributes, and sells electric power. Through its 17 hydroelectric power plants,
IPC is one of few utilities with a predominant hydro generating base. The company also owns and operates coal and natural gas-fired
plants to round out its approximately 3,300MW power portfolio. Additionally, IPC has 4,600 miles of transmission lines and 26,000
miles of distribution lines. IDACORP Financial is an investment company with a focus on affordable housing and historic preservation
projects. Ida-West Energy is an independent power project development company with 44.6MW of combined interest in nine
hydroelectric power plants in California and Idaho.
IDACORP, Inc.May 7, 2009
4
Global EnErGy and PowEr ConfErEnCE
June 1-2, 2009 | The ritz-Carlton new york, battery Park
RBC is pleased to invite you to attend our annual Global Energy and Power Conference on June 1-2, 2009 at the
Ritz-Carlton Battery Park, New York, NY.
This conference will primarily focus on one-on-ones, small group meetings, breakout sessions, along with
in-depth panel discussions. Attending the RBC Capital Markets Global Energy and Power Conference will enable
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A list of attending companies is provided via the link below. For additional information and to receive an
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ConfErEnCE loCaTion
The ritz-Carlton new york, battery Park
Two West Street
New York, New York 10004
Hotel Telephone: [phone]
Hotel Web site: www.ritzcarlton.com
for morE informaTion or To rEGisTEr for This ConfErEnCE
Please contact your RBC Capital Markets Representative.
This conference is by invitation only.
IDACORP, Inc.May 7, 2009
5
Ticker Symbol IDA
Year Quarter EPS Oper. CF EBITDA FCF EFCF Capital Type Amount %Type % of Total
Assumptions Rate 03/2009 ($MM)
2008 1 $0.48 $1.02 $71 ($0.63)$0.24 Equity Capital $1,308.7 49%Equity 5.54%
DCF Start Year 2009 2008 2 $0.35 $1.08 $66 ($0.02)$0.36 Preferred Stock $0.0 0%Preferred 0.00%
DCF Start Month 4 2008 3 $1.14 $1.19 $112 $0.64 $3.85 Total Debt $1,361.0 51%Debt 2.10%
Current Beta of Company 0.90 2008 4 $0.19 $0.33 $42 ($2.47)($4.20) Total $2,669.7 100% WACC 7.64%
Static or Variable Beta (S/V)V Total 5 $2.16 $3.59 $292 ($2.51)$0.17
Normalized Long-Term Risk-free Rate 5.00%
Market Return 12.00%2009 1 $0.40 $1.74 $69 $0.42 $2.00 Terminal Value Multiple Terminal Value Multiple
Current Equity Discount Rate 11.30%2009E 2 $0.32 $0.84 $72 ($0.09)($0.82)Multiple of FCF 11.8 x Multiple of EFCF 10.8 x
Current Cost of Preferred Stock 0.00%2009E 3 $1.09 $1.59 $127 $0.66 $0.06
Current Cost of Debt Capital 6.35%2009E 4 $0.31 $0.81 $71 ($0.11)$0.30 Term. Val. in Months 291 Term. Val. in Months 291
Current WACC 7.64% Total 5 $2.12 $4.98 $338 $0.88 $1.55
Basic Shares Outstanding (MM) 46.8 Category Valuation Category Valuation
Diluted Shares Outstanding (MM)46.9 03/2009
Assumed Tax Rate 35%Calc. Ent. Value $2,555.7 Equity FCF Value $1,376.9
Assumed Inflation Rate 3.50%Preferred Stock $0.0 Cash Balance @ Start
Minimum Cash Balance Required $25 2010E Total Debt ($1,271.9) of Valuation $89.1
Revolver Overflow Alert Total 5 $2.33 $4.40 $372 ($0.35)$1.21 Equity Value $1,283.8 Equity Value $1,466.0
Current Stock Price of IDA ($/Sh.)$23.70 Shares NAV Average Shares NAV
Current Book Value per Share $27.92 Basic $27.41 $29.36 Basic $31.30
Current Price-to-Book Ratio 0.8 x Diluted $27.39 $29.33 Diluted $31.27
Current Market Cap ($MM)$1,109.9 2011E
Current Market Ent. Value ($MM)$2,470.9 Total 5 $2.38 $4.53 $394 ($0.04)$1.21 Ratios P/NAV P/NAV Ratios P/NAV
Per Share Estimates Capital Structure Cost of Capital
Net Asset Value Cash Flow Valuation
Current Market Ent. Value Per Sh. $52.76 Basic 0.9 x 0.8 x Basic 0.8 x
Current Book Ent. Value ($MM)$2,669.7 Diluted 0.9 x 0.8 x Diluted 0.8 x
Current Book Ent. Value Per Sh.$57.01
Ratios P/Book
Names of Regions Name Basic 0.8 x
Region 1 Idaho Power Company (IPC)
Region 2 Idacorp Financial Services (IFS)Criteria Multiple 2010ERow #Multiple Analysis
Region 3 Idacorp Energy (IE)Ratios
Region 4 Other Year P/EP/Oper. CFEV/EBITDA EV/FCF P/EFCF Net Debt per Share N/A $41.41 497 N/A
Basic Shares Out N/A 46.8 166 N/A
2008 11.0 x 6.6 x 8.5 x N/M 140.6 x P/E 12.9 x $2.33 174 $30.00
2009 11.2 x 4.8 x 7.3 x 59.7 x 15.3 x P/CF 6.8 x $4.40 363 $30.00
2010 10.2 x 5.4 x 6.6 x N/M 19.5 x EV/EBITDA 9.0 x $7.95 190 $30.00
2011 10.0 x 5.2 x 6.3 x N/M 19.5 x Average $30.00
Sources: Company reports; RBC Capital Markets estimates; Lasan Johong [phone] [e-mail]; Emily Christy [phone], [e-mail]; Ella Vuernick [phone], [e-mail]
IDACORP, Inc.May 7, 2009
6
IDA 2007 2008 2008 2008 2008 2008 2009 2009 2009 2009 2009 2010 2011
SUMMARY FINANCIALS ($ Millions)2007 Q1A Q2A Q3A Q4A 2008 Q1A Q2E Q3E Q4E 2009 2010E 2011E
GENERATION (MWh)13,548.0 3,642.0 3,493.3 4,035.0 3,201.1 14,371.3 3,549.6 3,697.9 3,440.6 3,140.4 13,828.5 13,781.4 13,866.6
INCOME STATEMENT
TOTAL NET REVENUE $879.4 $213.4 $230.2 $299.7 $217.0 $960.4 $229.1 $208.9 $307.8 $218.9 $964.7 $968.4 $1,040.6
DOC (Incl. Cost of Fuel and Plant O&M)$312.2 $95.9 $103.8 $110.0 $107.4 $417.0 $129.4 $123.4 $126.8 $126.9 $506.5 $491.1 $512.9
Other Direct Operating Costs $307.1 $50.1 $54.9 $84.3 $60.9 $250.2 $37.9 $16.8 $51.6 $26.7 $133.0 $126.3 $156.1
General & Administrative Expenses $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
DIRECT OPERATING COSTS $619.3 $146.0 $158.7 $194.3 $168.3 $667.2 $167.3 $140.1 $178.4 $153.7 $639.5 $617.4 $669.0
GROSS PROFIT $260.1 $67.5 $71.5 $105.4 $48.8 $293.2 $61.8 $68.7 $129.4 $65.3 $325.2 $351.0 $371.6
Depreciation, Amortization and Expl. Exp.$103.1 $25.8 $26.6 $25.7 $24.0 $102.1 $26.0 $27.5 $26.6 $26.8 $106.9 $110.4 $115.0
Other Operating Costs $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
TOTAL OPERATING COSTS $722.4 $171.7 $185.3 $220.0 $192.3 $769.3 $193.3 $167.6 $205.0 $180.5 $746.4 $727.8 $784.0
OPERATING INCOME $157.0 $41.7 $44.9 $79.7 $24.7 $191.1 $35.8 $41.2 $102.8 $38.5 $218.4 $240.5 $256.6
Non-Operating Expenses ($7.3)($0.0)($1.0)($4.5)$5.5 ($0.0)($6.6)($3.3)$2.6 ($5.5)($12.7)($21.3)($21.9)
EARNINGS BEFORE INTEREST & TAXES $164.3 $41.7 $45.9 $84.2 $19.2 $191.1 $42.4 $44.5 $100.2 $43.9 $231.1 $261.9 $278.5
Net Interest Expense, Incl. TCP Dividend $63.3 $17.5 $17.1 $18.5 $20.0 $73.1 $17.5 $21.9 $21.6 $21.9 $83.0 $95.0 $108.1
PRE-TAX INCOME $100.9 $24.3 $28.9 $65.7 ($0.7)$118.0 $24.9 $22.6 $78.6 $22.0 $148.1 $166.9 $170.5
Income Tax Expense $13.7 $5.6 $6.9 $15.8 ($9.1)$19.2 $6.8 $7.9 $27.5 $7.7 $49.9 $58.4 $59.7
Minority Interest, Pref. Dividend & Other $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 ($0.2)($0.2)($0.2)($0.2)($0.8)($0.8)($0.8)
NET INCOME PRE-X-ITEMS $82.3 $21.7 $15.7 $51.7 $8.9 $98.0 $18.9 $14.9 $51.3 $14.5 $99.5 $109.3 $111.6
Extraordinary Items & Other $0.0 $0.0 ($1.8)$0.0 $1.4 ($0.4)$0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
NET INCOME $82.3 $21.7 $17.5 $51.7 $7.4 $98.4 $18.9 $14.9 $51.3 $14.5 $99.5 $109.3 $111.6
NET INCOME PRE-X-ITEMS PER SHARE $1.86 $0.48 $0.35 $1.14 $0.19 $2.16 $0.40 $0.32 $1.09 $0.31 $2.12 $2.33 $2.38
Extraordinary Items & Other $0.00 $0.00 ($0.04)$0.00 $0.03 ($0.01)$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
NET INCOME PER SHARE $1.86 $0.48 $0.39 $1.14 $0.16 $2.17 $0.40 $0.32 $1.09 $0.31 $2.12 $2.33 $2.38
CASH FLOW STATEMENT
Adjustments to Revenue and Income ($6.3)$0.0 $0.0 ($3.8)($3.7)($7.4)$0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Depreciation, Amortization and Expl. Exp.$120.4 $30.8 $32.5 $29.9 $29.2 $122.4 $31.2 $27.5 $26.6 $26.8 $112.1 $110.4 $115.0
Deferred Income Taxes $11.0 $12.6 $4.2 ($0.7)($11.4)$4.7 $14.7 $4.0 $4.0 $4.0 $26.7 $16.0 $16.0
Other Operating Cash Flow Items ($129.0)($19.4)($5.7)($23.6)($6.5)($55.1)$16.8 ($7.2)($7.2)($7.2)($4.8)($29.5)($30.2)
Changes in Working Capital $2.1 ($24.8)($15.9)$8.3 $6.0 ($26.4)($37.0)$0.0 $0.0 $0.0 ($37.0)$0.0 $0.0
OPERATING CASH FLOW $80.6 $20.9 $32.6 $61.9 $21.1 $136.5 $44.6 $39.2 $74.6 $38.1 $196.5 $206.2 $212.4
Cap. Ex., Acquisitions, Investments ($294.2)($65.1)($57.2)($51.9)($37.4)($211.6)($50.4)($56.4)($56.4)($56.4)($219.7)($279.0)($282.7)
Proceeds from Sales $27.1 $0.0 $6.5 $2.2 $0.1 $8.8 $9.8 $0.0 $0.0 $0.0 $9.8 $0.0 $0.0
Other Investing Cash Flow Items $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 ($1.4)($1.4)($1.4)($4.2)($6.0)($2.3)
INVESTING CASH FLOW ($267.1)($65.1)($50.7)($49.7)($37.3)($202.8)($40.6)($57.8)($57.8)($57.8)($214.1)($285.0)($285.0)
Net Equity Financing $37.2 $2.2 $1.8 $8.2 $38.3 $50.6 $1.1 $0.0 $0.0 $0.0 $1.1 $0.0 $0.0
Net Debt Capital & Other Financing $202.4 $55.3 $31.4 $163.2 ($176.4)$73.5 $90.7 ($20.0)($14.2)$33.8 $90.3 $135.0 $128.8
Financing Costs $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
Common and Preferred Dividends ($53.0)($13.5)($13.5)($13.5)($13.7)($54.2)($14.4)($14.0)($14.0)($14.0)($56.5)($56.2)($56.2)
Other Financing Cash Flow Items ($2.0)($0.4)($0.0)($1.3)($0.9)($2.6)($0.9)$0.0 $0.0 $0.0 ($0.9)$0.0 $0.0
FINANCING CASH FLOW $184.6 $43.6 $19.7 $156.6 ($152.7)$67.2 $76.6 ($34.0)($28.3)$19.7 $33.9 $78.8 $72.6
CHANGE IN CASH ($1.9)($0.6)$1.5 $168.8 ($168.9)$0.9 $80.3 ($52.7)($11.4)$0.0 $16.2 ($0.0)$0.0
OP. CF BEFORE W/C PER SHARE $1.77 $1.02 $1.08 $1.19 $0.33 $3.59 $1.74 $0.84 $1.59 $0.81 $4.98 $4.40 $4.53
BALANCE SHEET
Cash and Equivalents $8.0 $7.4 $8.9 $57.7 $8.8 $8.8 $89.1 $36.4 $25.0 $25.0 $25.0 $25.0 $25.0
Accounts Receivables $74.7 $74.4 $74.7 $83.7 $91.6 $91.6 $84.5 $84.5 $84.5 $84.5 $84.5 $84.5 $84.5
Inventory, Fuels and Materials $60.5 $64.4 $74.0 $75.7 $67.0 $67.0 $66.7 $66.7 $66.7 $66.7 $66.7 $66.7 $66.7
Other Current Assets $324.5 $323.1 $308.7 $299.4 $297.5 $297.5 $264.6 $264.6 $264.6 $264.6 $264.6 $264.6 $264.6
TOTAL CURRENT ASSETS $467.8 $469.4 $466.3 $516.5 $464.8 $464.8 $505.0 $452.3 $440.9 $440.9 $440.9 $440.9 $440.9
TOTAL PP&E $2,616.6 $2,649.0 $2,687.8 $2,717.2 $2,758.2 $2,758.2 $2,768.8 $2,796.2 $2,824.5 $2,852.6 $2,852.6 $3,027.2 $3,197.2
Other Long-term Assets $569.0 $591.1 $594.5 $617.7 $799.8 $799.8 $795.9 $805.8 $815.7 $825.6 $825.6 $854.4 $883.8
TOTAL ASSETS $3,653.3 $3,709.5 $3,748.6 $3,851.3 $4,022.8 $4,022.8 $4,069.7 $4,054.3 $4,081.1 $4,119.1 $4,119.1 $4,322.4 $4,521.8
Accounts Payables $271.6 $302.0 $348.1 $270.1 $248.0 $248.0 $203.7 $203.7 $203.7 $203.7 $203.7 $203.7 $203.7
Short-term Debt & Current Portions $11.5 $11.3 $8.6 $7.8 $86.5 $86.5 $81.5 $88.2 $68.2 $48.2 $48.2 $168.2 $185.5
Other Current Liabilities $92.3 $100.5 $95.2 $108.5 $61.1 $61.1 $75.6 $75.6 $75.6 $75.6 $75.6 $75.6 $75.6
TOTAL CURRENT LIABILITIES $375.3 $413.9 $452.0 $386.5 $395.7 $395.7 $360.8 $367.4 $347.4 $327.4 $327.4 $447.4 $464.8
Long-term Debt and Other Obligations $1,156.9 $1,155.3 $1,153.5 $1,273.0 $1,183.5 $1,183.5 $1,279.5 $1,252.9 $1,258.6 $1,312.4 $1,312.4 $1,327.4 $1,438.9
Deferred Income Taxes $466.2 $479.6 $468.9 $473.8 $515.7 $515.7 $511.3 $515.3 $519.3 $523.3 $523.3 $539.3 $555.3
Other Long-term Liabilities $447.6 $443.2 $449.6 $447.3 $625.6 $625.6 $605.4 $605.4 $605.4 $605.4 $605.4 $605.4 $605.4
TOTAL LONG-TERM LIABILITIES $2,070.7 $2,078.1 $2,072.0 $2,194.1 $2,324.7 $2,324.7 $2,396.2 $2,373.6 $2,383.4 $2,441.1 $2,441.1 $2,472.1 $2,599.6
Long-term Financings $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $4.0 $3.8 $3.6 $3.4 $3.4 $2.6 $1.8
TOTAL LIABILITIES $2,446.0 $2,492.0 $2,523.9 $2,580.6 $2,720.4 $2,720.4 $2,761.0 $2,744.8 $2,734.4 $2,771.9 $2,771.9 $2,922.2 $3,066.2
Equity and Additional Paid-in Capital $675.8 $678.7 $682.1 $691.2 $729.6 $729.6 $731.8 $731.8 $731.8 $731.8 $731.8 $731.8 $731.8
Retained Earnings $537.7 $545.9 $549.8 $588.0 $581.6 $581.6 $586.4 $587.2 $624.4 $624.9 $624.9 $678.0 $733.4
Other Stockholders' Equity ($6.2)($7.2)($7.3)($8.5)($8.7)($8.7)($9.5)($9.5)($9.5)($9.5)($9.5)($9.5)($9.5)
TOTAL STOCKHOLDERS' EQUITY $1,207.3 $1,217.5 $1,224.6 $1,270.7 $1,302.4 $1,302.4 $1,308.7 $1,309.5 $1,346.7 $1,347.2 $1,347.2 $1,400.2 $1,455.6
TOTAL LIABILITIES & EQUITY $3,653.3 $3,709.5 $3,748.6 $3,851.3 $4,022.8 $4,022.8 $4,069.7 $4,054.3 $4,081.1 $4,119.1 $4,119.1 $4,322.4 $4,521.8
Sources: Company reports; RBC Capital Markets estimates. Lasan Johong - [phone]; [e-mail]
IDACORP, Inc.May 7, 2009
7
Required Disclosures
Explanation of RBC Capital Markets Rating System
An analyst's 'sector' is the universe of companies for which the analyst provides research coverage. Accordingly, the rating assigned to
a particular stock represents solely the analyst's view of how that stock will perform over the next 12 months relative to the analyst's
sector average.
Ratings
Top Pick (TP):Represents best in Outperform category; analyst's best ideas; expected to significantly outperform the sector over 12
months; provides best risk-reward ratio; approximately 10% of analyst's recommendations.
Outperform (O):Expected to materially outperform sector average over 12 months.
Sector Perform (SP):Returns expected to be in line with sector average over 12 months.
Underperform (U):Returns expected to be materially below sector average over 12 months.
Risk Qualifiers (any of the following criteria may be present):
Average Risk (Avg):Volatility and risk expected to be comparable to sector; average revenue and earnings predictability; no
significant cash flow/financing concerns over coming 12-24 months; fairly liquid.
Above Average Risk (AA):Volatility and risk expected to be above sector; below average revenue and earnings predictability; may
not be suitable for a significant class of individual equity investors; may have negative cash flow; low market cap or float.
Speculative (Spec):Risk consistent with venture capital; low public float; potential balance sheet concerns; risk of being delisted.
Distribution of Ratings
For the purpose of ratings distributions, regulatory rules require member firms to assign ratings to one of three rating categories - Buy,
Hold/Neutral, or Sell - regardless of a firm's own rating categories. Although RBC Capital Markets' ratings of Top Pick/Outperform,
Sector Perform and Underperform most closely correspond to Buy, Hold/Neutral and Sell, respectively, the meanings are not the same
because our ratings are determined on a relative basis (as described above).
Distribution of Ratings
RBC Capital Markets, Equity Research
Investment Banking
Serv./Past 12 Mos.
Rating Count Percent Count Percent
BUY[TP/O] 492 44.40 103 20.93
HOLD[SP] 533 48.00 72 13.51
SELL[U] 85 7.70 5 5.88
References to a Recommended List in the recommendation history chart may include one or more recommended lists or model
portfolios maintained by a business unit of the Wealth Management Division of RBC Capital Markets Corporation. These
Recommended Lists include the Prime Opportunity List (RL 3), a former list called the Private Client Prime Portfolio (RL 4), the Prime
IDACORP, Inc.May 7, 2009
8
Income List (RL 6), the Guided Portfolio: Large Cap (RL 7), and the Guided Portfolio: Dividend Growth (RL 8). The abbreviation 'RL
On' means the date a security was placed on a Recommended List. The abbreviation 'RL Off' means the date a security was removed
from a Recommended List.
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views with respect to market and trading events in the coming days or weeks and, as such, may differ from the price targets and
recommendations in our published research reports reflecting the research analyst's views of the longer-term (one year) prospects of
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A member company of RBC Capital Markets or one of its affiliates received compensation for products or services other than
investment banking services from IDACORP, Inc. during the past 12 months. During this time, a member company of RBC Capital
Markets or one of its affiliates provided non-securities services to IDACORP, Inc.
RBC Capital Markets is currently providing IDACORP, Inc. with non-securities services.
RBC Capital Markets has provided IDACORP, Inc. with non-securities services in the past 12 months.
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IDACORP, Inc.May 7, 2009
9
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IDACORP, Inc.May 7, 2009