200311192nd Response attachment 16.pdf

TT A CHMENT TO
RESPONSE TO
REQUEST NO. 16
/. ::'
Pension (Rev. 01/00)
Table of Contents
Idaho Power Company Retirement Plan
........................
Introduction
............................ ..... .......... ......
.................. 1
What Does the Retirement Plan Mean to Me?
............
When do I Become a Participant in the Plan? ............ 2
Who Pays for my Benefits? .......................................... 2
What Words Have Special Meanings?
........................
How Will My Pension be Paid When I Retire? ............ 6
How Much Will My Pension be
When I Retire at Age 65? .......................................... 6
Normal Retirement Example.................................... 6
Alternative Forms of Benefits ...................................... 7
What Will My Spouse s Benefit be
If I Die Before I Retire?
..............................................
Spouse Example...
....................................................
What Will My Pension be if I Retire Early?
.................
Early Retirement
.......................................................
Social Security Adjustment Option
......................
Social Security Adjustment Option Example
......
How Does Long-term Disability (L TD) Impact
Retirement?
.. .......... ..... .... ................ ................. .......
What is Vesting? How do I Become Vested In
the Benefits of My Retirement Plan?
....................
Idaho Power Company
Employee Handbook
What if I Leave the Company Before I Retire? .........
How do I Choose My Pension Option? .....................
Must I Retire When I am 65? ......................................
Can I Lose Any of My Benefits From This
Plan? ... ............ .........
....... ..... .....
.................. .............. 13
Can I Get Back Any Benefits if I Lose Them? ..........
How is the Plan Administered? .................................
How do I Request Benefits Under My Plan? ............
If My Benefit is Denied , How do I File an
Appeal?
...................... ............... ............ .............
...... 14
Is There Anything Else I Should Know? ...................
Future of the Plan ...................................................
Pension Benefit Guaranty Corporation ................
Statement of Rights under ERISA .............................
Assignment of Benefits .........................................
Qualified Domestic Relations Order .....................
Limitations on Benefits ..........................................
Information Required in a Summary Plan
Description In Compliance With ERISA................
How Your Pension Plan Is Funded............................ 21
ii Idaho Power Company
Pension (Rev. 01/00)
Idaho Power Company Retirement Plan
ntrod uction
The Retirement Plan of Idaho Power Company was established in
1943 to help you build financial security at your retirement, one of the
most important long-range goals for you and your family. The
Retirement Plan is a funded, secured and qualified plan for employees
of Idaho Power Company.
This Plan has been amended from time to time. The most recent
amendment was adopted December 29, 1999.
This summary has been written in everyday language to explain the
benefits, rights and obligations you have under your Retirement Plan.
This summary is not meant to interpret, extend or change the Plan in
any way. In case of a conflict between this summary and the actual
provisions of the Plan Document, the provisions of the Plan Document
will govern your rights and benefits. Complete details are available
upon request from the Human Resources Department.
When you retire and receive a pension from this plan, you will have to
pay income tax on the amount you receive. While you are working and
earning the right to a retirement benefit, the IRS does not require you
to pay any tax on your benefit accumulation. Maximum benefits
payable under the Retirement Plan are subject to nondiscrimination
regulations as outlined by the Federal Government.
This summary plan description describes the principal provisions of
the Plan as it is in effect on January 1 2000, for active employees on
or after such date. The description of the distribution rules and
administrative provisions are also applicable to employees who
terminated employment prior to such date.
What Does the Retirement Plan Mean to Me?
The Retirement Plan provides you with:
0 A monthly income for life when you retire in addition to your
Social Security benefits.
Normal retirement at age 65.
Idaho Power Company
Employee Handbook
Retirement as early as age 55 with 15 years of service.
Retirement at any age with 30 years of service.
Retirement anytime after age 65 with 5 or more years of service.
Different ways to receive your pension benefit.
Unreduced pension benefit at age 62.
Certain benefits under your Retirement Plan are insured by the Pension
Benefit Guaranty Corporation, an agency of the U.S. Government. For
further details about this insurance coverage see section entitled
Pension Benefit Guaranty Corporation.
When do I Become a Participant in the Plan?
Regular, Temporary, and Part-time employees who are 18 years of age
or older are eligible to participate once they complete 12 consecutive
months of employment. Participation begins the first day of the
following month that this requirement is met.
An individual is not considered an employee if he or she is not
included on the Employer s payroll records and personnel records
regardless of whether the relationship between the Employer and the
person subsequently is determined to be an employer/common-law
employee relationship because of (1) reclassification by a
governmental agency (whether retroactively or prospectively), (2)
decision by a court, mediation, arbitration, or similar proceeding, or (3)
mutual agreement between the Employer and the individual. Examples
include, but are not limited to, any person:
0 who the Employer treats as an independent contractor
who is paid through a third party business entity s payroll, or
0 who is hired through an agreement with an employee staffing
agency
Who Pays for my Benefits?
The Company makes all contributions to the Plan. The dollar amount
of the Company contribution to the Plan is determined each year based
Idaho Power Company
Pension (Rev. 01/00)
on an actuarial evaluation. Expenses of administering the Plan may be
paid directly by the Company, from Plan assets , or both.
All Retirement Funds are held in trust under trust agreement with Bank
of New York. Bank of New York writes and mails all benefit checks to
retirees.
What Words Have Special Meanings?
Throughout this summary, you will come across certain words or terms
which are used frequently and which you should know. These terms
will help you understand your benefits better. Keep them in mind as
you read the rest of this summary plan description.
Credited Service: Your benefit depends on the amount of Credited
Service you have. Credited Service is measured in years and months,
and includes two types of service.
1. Service for which you were paid.
a. For regular, full-time employees-calendar months of
continuous employment.
b. All Flexible Time Off (FrO) and holiday time.
c. Short-term Disability.
d. For employees other than full-time employees--credited
service is pro-rated based on regular hours worked.
e. All time while receiving benefits under the Long-term
Disability Plan.
2. Certain absences for which you were not paid. You receive credit
for the time but not for any salary you might have earned had you
been working.
a. Military leave up to 4 years.
b. All approved leaves of absence up to 90 days.
c. Leave taken under the provisions of the Family and
Medical Leave Act.
If you are employed as a regular, full-time employee, you will earn one
month of Credited Service for each full month of employment in
which you receive Compensation. Service for partial months of
employment will be accrued on a pro-rated basis. Any partial months
of Credited Service you earn will be combined with all full months of
Idaho Power Company
Employee Handbook
Credited Service earned, and the result will then be rounded up to the
next highest full month of service.
If you are employed in a capacity other than a regular, full-time
employee, months of Credited Service earned will be calculated on a
pro-rated basis according to regular hours worked during the month.
Months of Credited Service is calculated by dividing your regular-time
hours worked by 173 1/3.
For all Plan Years beginning prior to January 1 1997 , you will receive
at least 6 months of Credited Service for any Plan Year in which you
performed at least 1 000 Hours of Service.
Disability: Means a physical or mental disability for which you are
accepted to Long-term Disability (LTD).
Eligible Spouse: This means your wife or husband who is married to
you either immediately prior to: (1) the date a benefit becomes payable
under the Plan, or (2) your death.
Final Average Earnings: This means your average total earnings
(base pay + incentive + overtime) during the highest 60 consecutive
months in the final 120 months of service with the Company.
Age 65 Example:
Final Averaae Monthly EarninQs
Plan Year
Total Earnings During
Calendar Year
1990 200
1991 900
1992 800
1993 600
1994 23,200
1995 000
1996 26,000
1997 500
1998 500
1999 29,000
Your earnings were the highest for the 60 consecutive months
1995-1999 and total $135 000.00.
Idaho Power Company
Pension (Rev. 01/00)
Total Earnings During 60 Consecutive Months $135 000
Your Final Monthly: $135 000 -;- 60 Months 250Average
Earnings Annual: $135,000 -;- 5 Years $27 000
Hours Of Service: You receive credit for an Hour of Service for each
hour you are paid by the Company, including overtime, holidays
Flexible Time Off (FTO) and Short-term Disability. You also receive
credit while receiving long-term disability benefits, while on leave of
absence for military service (up to 4 years provided you return to work
at the end of your compulsory military duty), while on leave under the
provisions of the Family and Medical Leave Act and up to 90 days
credit while on an approved leave of absence.
Joint and Survivor Benefit (annuity): A pension benefit payable in
equal monthly installments, which has been reduced to allow payments
for the longer of two lives. The reduction factor is determined by the
age difference between the employee and Spouse. You will receive
payments for the remainder of your life and, upon your death, your
surviving Spouse will receive payments for the remainder of his/her
life.
Normal Retirement Date: The first day of the month following the
month in which your 65th birthday occurs.
Plan Year: The Plan Year is the same as the calendar year.
Single Life Benefit (annuity): A pension benefit payable in equal
monthly installments for the remainder of your life, with no provision
for survivor benefits.
Vesting Service: Your vesting service determines your right to receive
retirement benefits. A month of vesting service is earned for each
month elapsed from date of hire, including periods of severance where
a one-year break in service does not occur.
You are vested in the Plan once you have 60 months (five years) of
vesting service.
Idaho Power Company
Employee Handbook
How Will My Pension be Paid When I Retire?
If you have no Eligible Spouse when you retire, you will receive a
monthly pension for as long as you live. This is called your lifetime
only benefit, or Single Life Benefit.
If you are married when you retire and have an Eligible Spouse, your
pension will automatically be paid in the form of a 50% Joint and
Survivor Benefit. The amount of your pension will be appropriately
reduced to pay a benefit for as long as you live, and, upon your death
for as long as your Spouse lives. If you wish to receive your pension as
a Single Life Benefit, rather than a Joint and Survivor Benefit, your
Spouse must give written consent prior to your retirement.
How Much Will My Pension be
When I Retire at Age 65?
When you retire at age 65 , your pension is calculated under the
following formulas:
5% of your Final Average Earnings
multiplied by
your years of Credited Service
Minimum Benefits: The Plan has a minimum annual benefit level
equal to $144 for each year of credited service. If this minimum is
higher for you than your benefit from the formula above, you would
recei ve the higher amount.
The examples that follow will show how the formulas work in
practice.
Normal Retirement Example
Assume you retire at age 65 after 35 years of Credited Service. Your
Final Average Earnings are $36 000. Your own Social Security Benefit
is estimated to be $13 488 , or $1 124.00 per month. Your retirement
benefits are determined as follows:
5% x 35 years = 52.
Pension Income:
52.5% x $36,000 per year........................................
52.5% x $3,000.00 per month..................................
Plus Social Security (estimated) ..............................
Total monthly retirement income .............................
$18,900.
575.
124.
$ 2.699.
Idaho Power Company
Pension (Rev. 01/00)
If you are not married when you retire, you will receive a single life
annuity of $1 575.00 per month from the Plan for the rest of your life.
Your Social Security benefit will be paid to you by the government in
addition to this.
If you are married when you retire, your single life annuity will be
575.00 from the Plan. However, unless you and your Spouse select
another option, the amount of monthly payment will be reduced so that
your Eligible Spouse will receive, upon your death, one-half of a
reduced monthly amount until the end of his/her life. The amount of
the reduction in your monthly benefit necessary to pay for this
continuation to your Spouse will depend on your age and your
Spouse s age. If your Spouse is the same age as you are, the amount
payable will be 88% x $1 575.00 = $1 386., payable to you during
your lifetime, and upon your death, one-half of that or $693.00 will be
payable each month to your Spouse. The joint and survivor option
reduction factors are shown in Table
Alternative Forms of Benefits
If you have an Eligible Spouse upon retirement, you will automatically
have the 50% survivor option unless you choose another option. Those
options include a 66-2/3% benefit or a 100% Joint and Survivor
Benefit, or a Single Life Benefit.
If you are married, and you wish to receive your pension in the form of
a Single Life Benefit, you and your Spouse must make a written
statement to the Plan Administrator before you retire. With a Single
Life Benefit, no benefits will be payable to your Spouse after your
death.
Table I
Joint and Survivor Option Factors
Spouse Age Examples of
Compared To Joint and Survivor action
Employee Age 50%66-2/3%100%
10 Years YounGer 83.79.71.
9 Years Younaer 83.79.71.
8 Years YounQer 84.80.72.
7 Years YounGer 84.80.73.4%
6 Years YounQer 85.81.4%74.
5 Years YounGer 85.82.75.
4 Years YounGer 86.82.75.
3 Years Younaer 86.83.76.
Idaho Power Company
Employee Handbook
Table I
Joint and Survivor Option Factors
Spouse Age Examples of
Compared To Joint and Survivor Option
Employee Age 50%66-2/3%100%
2 Years YounGer 87.83.77.
1 Year Younaer 87.84.4%78.
Same AQe 88.85.79.
1 Year Older 88.85.79.
2 Years Older 89.86.80.
3 Years Older 89.86.81.4%
4 Years Older 90.87.4%82.
5 Years Older 90.88.83.
6 Years Older 91.88.83.
7 Years Older 91.89.84.
8 Years Older 92.89.85.4%
9 Years Older 92.90.86.
10 Years Older 93.91.87.
What Will My Spouse s Benefit be
If I Die Before I Retire?
If you haven t retired, your Eligible Spouse is protected if you die after
you are vested in the pension plan. Your Spouse will receive a lifetime
pension equal to 50% of the pension you had earned at the date of
death. Payment will commence on the date you could have retired, had
you survived. If you had already qualified for early retirement, the
survivor payments will begin immediately. If you have 15 years of
service at the time of death, your surviving Spouse s annuity will begin
on the date you would have reached age 55. If you have less than
15 years of service, the benefits will begin on the date you would have
reached age 65. The pension will be equal to 50% of your vested
amount at the time of death. No early retirement reduction will be
applied to the survivor s benefit nor is the benefit reduced for the age
difference between you and your Spouse. This benefit is payable
whether you are an active or former employee at the time of death.
Spouse Example
For example, assume you decease at age 62 when your Spouse is 59.
Your Final Average Earnings are $30 000, and you have completed
35 years of Credited Service. In this example, you had met the
eligibility requirements for early retirement at the time of death, so
payment to your survivor would begin immediately.
Idaho Power Company
Pension (Rev. 01/00)
5% X 35 years = 52.
Pension Earned at Death:
52.5% x $30,000 (Final Avg. Earn) ........................ $15,750.
Spouse Benefit Factor ........................................... 50%
Pension Paid to Spouse Yearly.............................. $ 7 875.
Pension Paid to Spouse Monthly........................... $ 656.
What Will My Pension be if I Retire Early?
If you have completed at least 15 years of Credited Service with the
Company, you may retire as early as your 55th birthday. You may
retire anytime after 30 years of Credited Service regardless of your age.
Your early retirement benefits are based on the same formula used for
normal retirement.
If you retire and begin receiving benefits before age 65, your pension
will be multiplied by a percentage in Table n that is based on your age
when you start to receive benefits.
Of course, the longer you work for the Company, the more your
Credited Service will increase and the larger your benefit will be.
Early Retirement
Suppose you want to retire at age 60 after 30 years of Credited Service.
Your Final Average Earnings are $28 000.
5% x 30 years = 45.
Pension Earned at Early Retirement:
45% x $28,000 (Final Avg. Earnings) ......................
Early Retirement Factor (Table II) ...........................
Early Retirement Pension Yearly.............................
Early Retirement Pension Monthly...........................
$12,600.
92%
$11,592.
$ 966.
If you are not married when you retire, you will receive $966.00 per
month from the Plan for the rest of your life.
If you are married when you retire, your single life annuity is $966.
per month from the Plan. However, the automatic benefit, if you do not
select another option, will be in the form of a 50% Joint and Survivor
Benefit. If your Spouse is 3 years younger than you are, the benefit will
be $966.00 x 86.5% = $835.59, payable during your lifetime, and upon
your death, $417.80 would be payable to your Spouse.
Idaho Power Company
Employee Handbook
Table II - Early Retirement Factor
Exact Age When Reduced Benefit as a
Payments Begin Percentage of Earned
Pension
100%
100%
100%
96%
92%
87%
82%
77%
72%
67%
62%
57%
52%
47%
42%
38%
34%
Social Security Adjustment Option
The Plan offers you a way to adjust your pension so that your income
remains approximately level even though your Social Security benefits
do not begin until you are age 62. This is done by paying you a larger
amount from the Plan until you are 62 and then a smaller amount when
Social Security benefits begin. This option can only be elected if you
retire before age 62. Using the Social Security Adjustment Option does
not in any way impact the benefits you will receive from the Social
Security Administration system at age 62.
Social Security Adjustment Option Example
Using the figures from the Early Retirement Example I, assume you
retire at age 60 after 30 years of Credited Service and your monthly
early retirement pension is $966.00. You elect the Single Life Benefit.
Your Social Security benefit payable at age 62 is estimated to be
$550.00 a month. See Table ill for factors.
Early Monthly Retirement Benefit.............................
Estimated Social Security Benefit
x Social Security Adj. Opt. Factor
$550 x .8051............................................................
Pension Payable until Age 62..................................
Less Social Security Benefit at Age 62....................
$ 966.
442.
$1,408.
(550.00)
Idaho Power Company
Pension (Rev. 01/00)
Net Pension from Idaho Power Co.
Pension Plan after Age 62.......................................
Total Income After Age 62.......................................
$ 858.
$1.408.
So before age 62 all of the $1,408.81 is Pension. After age 62, the
$1,408.81 is comprised of $550.00 of Social Security and $858.81 of
Pension.
Table III - Social Security
Adjustment Option Factors
Exact Age When Early Reduce Age 62 Social
Retirement Occurs Security Benefit By
8962
8051
7249
6540
5912
5355
.4857
.4413
.4016
3659
3338
3049
2788
2553
How Does Long-term Disability (L TD) Impact
Retirement?
If you become disabled and qualify for LTD plan benefits, you will
continue to accrue months of service for as long as you remain on
LID, until you retire or recover. Also , your salary immediately prior to
being accepted to L TD will be used in the Final Average Pay
calculation, rather than the 2/3 salary LID benefit amount. This will
likely have the effect of increasing your final average pay until you
have been on LTD for five years.
While on LTD you have essentially the same rights with regard to
retirement as active employees. After meeting age and service
requirements, you can elect early retirement, or wait until age 65 or
even later depending on the age at which you became disabled.
Idaho Power Company
Employee Handbook
What is Vesting? How do I Become Vested
In the Benefits of My Retirement Plan?
Vesting is a form of ownership or right to receive a pension benefit.
You become vested in your pension benefits after completing 5 years
of Vesting Service with the Company.
What if I Leave the Company Before I Retire?
If you leave the Company after becoming vested, but before you have
earned 15 years of Credited Service you are entitled to a monthly
benefit starting at age 65. The benefit is based on the formula used to
figure your normal retirement benefit as shown in the example for
Normal Retirement. If you leave the Company and had earned 15 or
more years of Credited Service, you may choose to have your monthly
payments begin as early as age 55 at a reduced amount (see factor in
Table 11). If you had 30 years, you may choose to have your monthly
payments begin as early as you like-again , at a reduced amount. If
you are married and do not choose otherwise, your pension will be
reduced to provide a 50% Joint and Survivor Benefit. (See factors in
Table I.) If the present value of your pension benefit is $5 000 or less,
the Company may choose to pay you that value in a lump-sum rather
than a lifetime annuity.
If you are not vested when you leave the Company, you will not
receive any benefits from the Plan.
How do I Choose My Pension Option?
Examples of benefits under these different options are shown on
previous pages. When you prepare to retire, the Human Resources
Department will compute for you the exact amount you would receive
under all of the options for which you are eligible. You will be given a
form which shows you all of this information. After you sign the form
your pension will be paid to you under the option you have chosen.
Must I Retire When I am 65?
The 1986 amendments to the Age Discrimination in Employment Act
of 1967 provide that an employee has no maximum age limitations on
employment, provided he or she can perform in a productive manner.
Pension benefits will continue to accrue until the date of retirement.
Idaho Power Company
Pension (Rev. 01/00)
If you continue as an Employee or are t;e-employed after your Normal
Retirement Date, payment of your benefit (during any month in which
you are employed for 70 or more hours) will be withheld until your
Late Retirement Date. However, payment of your benefit must begin
no later than your Required Beginning Date.
If you are not a 5% owner of the Company and you have not attained
age 70 Y2 prior to January 1 , 1999, your Required Beginning Date is
the later of 1) April 1 following the year in which you attained
age 70 Y2 , or 2) April 1 following the year in which your retire.
Otherwise, your Required Beginning Date is the April 1 following the
year in which you attained age 70 Y2.
Can I Lose Any of My Benefits From This Plan?
There are two situations where you may lose your accumulated benefit:
Termination Prior To Vesting: Assuming you never return to work for
the Company, if you terminate your employment before becoming
vested, you will lose any Vesting Service and Credited Service you
have accumulated in the Plan.
Death Prior To Vesting: No benefits will be payable to your surviving
Spouse if you decease before you are vested.
Can I Get Back Any Benefits if I Lose Them?
If you have terminated your employment, or have a break in service,
you can get back your Vesting Service and Credited Service upon
meeting certain conditions.
If you are rehired by the Company after a termination or break in
service, your prior service will be restored as follows:
0 If you were vested in the Plan at the time you left the Company,
your prior service will be immediately restored upon rehire.
0 If you were not vested in the Plan at the time you left the Company,
your prior service will be restored immediately upon rehire, with
the following exception. If you incur consecutive one year breaks-
in-service after December 31 , 1996 that equal or exceed five years
you will forfeit all prior Eligibility, Vesting, and Benefit Service.
Idaho Power Company
Employee Handbook
How is the Plan Administered?
The Plan Administrator is Idaho Power Company. The Administrator
is responsible for the administration and operation of the Plan. The
Plan Administrator may establish day to day operational or
administrative policies and procedures which are not discussed in this
Summary.
The Administrator is responsible for interpreting the provisions for the
Retirement Plan document, and has full discretionary authority to
determine eligibility; to determine the classification, status, and rights
of employees, participants, and beneficiaries; to determine the amount
manner, and time of payment of any benefits provided for under the
Plan; and to fix minimum periods of notice.
As Plan Administrator, Idaho Power Company is the named fiduciary.
In its capacity as Plan Administrator, Idaho Power Company may
designate individuals or committees to perform its administrative
functions with respect to the Plan. Any such actions undertaken by
these individuals or members of committees will be taken solely as
agents for Idaho Power Company, in its capacity as Plan
Administrator, and none of these individuals, whether officers
directors , or employees of Idaho Power Company, will themselves be
fiduciaries.
Questions about the Retirement Plan should be directed to Plan
Administration (ext. 6612). Claims for benefits under the Retirement
Plan should be submitted to Human Resources.
How do I Request Benefits Under My Plan?
If you wish to claim benefits under the Retirement Plan , contact the
Human Resources Department. They will supply you with all the
necessary information.
If My Benefit is Denied, How do I File an Appeal?
If you make a claim for benefits under the Plan, and all or part of it is
denied, the Plan Administrator will notify you of the reasons for the
denial with specific reference to the appropriate Plan provisions. The
Plan Administrator will also tell you how you can appeal this decision.
The appeal process is stated below for your information.
Idaho Power Company
Pension (Rev. 01/00)
1. If your claim is denied, the Plan Administrator will give you
written notice within 60 days of your filing for benefits.
2. Within 60 days of receiving the written notice of denial from the
Plan Administrator, you or your representative can personally
appear to give further written or oral support of your claim and to
review any pertinent Plan documents.
3. The Plan Administrator shall then have an additional 60 days to
make his final decision regarding your claim. His decision shall
include specific reasons why he cannot approve your claim and
will include reference to the specific Plan provisions on which his
decision is based. His decision is final and binding.
Is There Anything Else I Should Know?
Future of the Plan
The Company expects to continue the Plan into the foreseeable future.
However, if due to unforeseen circumstances the Company finds it
necessary or desirable to terminate the Plan, then it may do so, at any
time, by action of the:
1. Board of Directors
2. Chairman of the Board and Chief Executive Officer, or
3. President and Chief Operating Officer.
In the event that the Plan is terminated, the assets which have been set
aside in a trust fund will be applied in accordance with Federal law to
provide all vested benefits accrued as of the termination date. Accrued
non-vested benefits will be provided to the extent assets in the trust are
sufficient. If any further assets remain after all accrued benefits have
been provided, then they will be returned to the Company.
The foregoing persons also have the authority to amend the Plan from
time to time to keep it current with legislative or regulatory
requirements or to change the Plan for any corporate purposes. No
amendment, however, will reduce the present value of the Accrued
Benefit to which you are already entitled, except as may be required to
maintain the Plan as a qualified plan under the Internal Revenue Code.
Idaho Power Company
Employee Handbook
Pension Benefit Guaranty Corporation
Your pension benefits under this Plan are insured by the Pension
Benefit Guaranty Corporation (pBGC), a federal insurance agency. If
the Plan terminates (ends) without enough money to pay all benefits
the PBGC will step in to pay pension benefits. Most people receive all
of the pension benefits they would have received under their Plan, but
some people may lose certain benefits.
The PBGC guarantee generally covers:
normal and early retirement benefits;
disability benefits if you become disabled before the Plan
terminates; and
certain benefits for your survivors.
The PBGC guarantee generally does not cover:
benefits greater than the maximum guaranteed amount set .by law
for the year in which the Plan terminates;
some or all of benefit increases and new benefits based on Plan
provisions that have been in place for fewer than 5 years at the time
the Plan terminates;
benefits that are not vested because you have not worked long
enough for the Company;
benefits for which you have not met all of the requirements at the
time the Plan terminates;
certain early retirement payments (such as supplemental benefits
that stop when you become eligible for Social Security) that result
in an early retirement monthly benefit greater than your monthly
benefit at the Plan s normal retirement age; and
0 non-pension benefits , such as health insurance, life insurance
certain death benefits, vacation pay, and severance pay.
Even if certain of your benefits are not guaranteed, you still may
receive some of those benefits from the PBGC depending on how
Idaho Power Company
Pension (Rev. 01/00)
much money your Plan has and on how much the PBGC collects from
employers.
For more information about the PBGC and the benefits it guarantees
ask your Plan Administrator or contact the PBGC' s Technical
Assistance Division, 1200 K Street N. W., Suite 930, Washington
C. 20005-4026 or call 202-326-4000 (not a toll-free number).
TTY/TDD users may call the federal relay service toll-free at 1-800-
877-8339 and ask to be connected to 202-326-4000. Additional
information about the PBGC's pension insurance program is available
through the PBGC's web site on the Internet at http://www.pbgc.gov.
Statement of Rights under ERISA
As a participant in the Pension Plan , you are entitled to certain rights
and protections under the Employee Retirement Income Security Act
of 1974 (ERISA). ERISA provides that all Plan participants shall be
entitled to:
0 Examine, without charge, at the Plan Administrator s office and at
other specified locations, such as worksites and union halls , all
documents governing the Plan, including insurance contracts and a
copy of the latest annual report (Form 5500) filed by the Plan with
the u.S. Department of Labor.
0 Obtain, upon written request to the Plan Administrator, copies of
documents governing the operation of the Plan, including
insurance contracts, and a copy of the latest annual report (Form
5500) and updated summary plan description. The Administrator
may make a reasonable charge for the copies.
Receive a summary of the Plan s annual financial report. The Plan
Administrator is required by law to furnish each participant with a
copy of this summary annual report.
Obtain a statement telling you whether you have a right to receive a
pension at normal retirement age (age 65) and if so, what your
benefits would be at normal retirement age if you stop working
under the Plan now. If you do not have a right to a pension, the
statement will tell you how many more years you have to work to
get a right to a pension. This statement must be requested in
writing and is not required to be given more than once every
Idaho Power Company
Employee Handbook
twelve (12) months. The Plan must provide the statement free of
charge.
In addition to creating rights for Plan participants, ERISA imposes
duties upon the people who are responsible for the operation of the
employee benefit plan. The people who operate your Plan, called
fiduciaries" of the Plan, have a duty to do so prudently and in the
interest of you and other Plan participants and beneficiaries. No one
including your employer, your union, or any other person, may fire you
or otherwise discriminate against you in any way to prevent you from
obtaining a (pension, welfare) benefit or exercising your rights under
ERISA. If your claim for a (pension, welfare) benefit is denied in
whole or in part, you must receive a written explanation of the reason
for the denial. You have the right to have the Plan review and
reconsider your claim. Under ERISA, there are steps you can take to
enforce the above rights. For instance, if you request materials from
the Plan and do not receive them within 30 days, you may file suit in a
Federal court. In such a case, the court may require the Plan
Administrator to provide the materials and pay you up to $110 a day
until you receive the materials, unless the materials were not sent
because of reasons beyond the control of the Administrator. If you
have a claim for benefits which is denied or ignored, in whole or in
part, you may file suit in a state or Federal court. In addition , if you
disagree with the Plan s decision or lack thereof concerning the
qualified status of a domestic relations order or a medical child support
order, you may file suit in Federal court. If it should happen that Plan
fiduciaries misuse the Plan s money, or if you are discriminated
against for asserting your rights, you may seek assistance from the
u.S. Department of Labor, or you may file suit in a Federal court. The
court will decide who should pay court costs and legal fees. If you are
successful, the court may order the person you have sued to pay these
costs and fees. If you lose, the court may order you to pay these costs
and fees, for example, if it finds your claim is frivolous.
If you have any questions about your Plan, you should contact the Plan
Administrator. If you have any questions about this statement or about
your rights under ERISA , you should contact the nearest office of the
Pension and Welfare Benefits Administration, u.S. Department of
Labor, listed in your telephone directory or the Division of Technical
Assistance and Inquiries , Pension and Welfare Benefits
Administration, U.S. Department of Labor, 200 Constitution Avenue
, Washington, D.C. 20210.
Idaho Power Company
Pension (Rev. 01/00)
Assignment of Benefits
For the protection of your interests and those of your dependents, your
benefits under this Plan cannot be assigned and, to the extent permitted
by law , are not subject to garnishment or attachment. However, your
benefits are subject to Qualified Domestic Relations Orders , which
determine ownership in the event of a divorce, when decreed by a
court of competent jurisdiction.
Qualified Domestic Relations Order
If the Company receives a domestic relations order from a court of
competent jurisdiction which assigns a portion of your pension
benefits to a former Spouse, the Company will review the document to
determine if the qualifications specified under Internal Revenue Code
Section 414(p) have been met. You or your beneficiaries may obtain
free of charge, a copy of the procedures governing Qualified Domestic
Relations Order determinations. You will be notified of the
determination of the status of the domestic relations order in
accordance with the procedure outlined in the Code.
Limitations on Benefits
Federal tax laws impose certain maximums on the amount of benefits
which can be paid and the amount of compensation taken into
consideration under pension plans. In general, the limits are high
enough that very few employees are affected. You will be notified if
the limits affect you.
Idaho Power Company
Employee Handbook
Information Required in a Summary Plan
Description In Compliance With ERISA
Please refer to the section entitled "General Information" for a
statement of your rights under ERISA.
Name of Plan Retirement Plan of Idaho Power
Company
Idaho Power Company
Employer, Plan Sponsor and Agent for 1221 West Idaho Street
Service O. Box 70
of Legal Process Boise, Idaho 83707
[phone]
Employer Identification No.82-0130980
Plan Number 001
Type of Plan Defined benefit pension plan
End of Plan Year December 31
The Company pays the entire cost of
Source of the Plan. The amount of contribution is
Contributions determined each January 1 st by an
actuarial valuation.
Idaho Power Company
Attn: Human Resources
1221 West Idaho Street
Plan Administrator O. Box 70
Boise, Idaho 83707
[phone]
Bank of New YorkPlan Trustee One Wall Street, 26th Floor(may be served with legal process if a New York, NY 10286suit is filed)[phone]
The right is reserved in the Plan for the
Reserved Right Plan Sponsor to terminate, suspend
withdraw, amend or modify the Plan in
whole or in part at any time.
Idaho Power Company
IDACORP Financial Services, Inc.
Participating Employers IDACORP Energy Solutions, LP
IDACORP Services Co.
Idaho Power Company
Pension (Rev. 01/00)
How Your Pension Plan Is Funded
Stocks
which increase
decrease) in
value and earn
Dividends
which go
back into the
Company
Contributions
are placed in a
Trust Fund
the assets of
which are invested in
Bonds
which increase
(decrease) in
value and earn
Interest
which goes
back into the
Trust Fund
from which are paid
Benefits
to participants
and beneficiaries
Other
Investments
which increase
(decrease) in
value and earn
Income
which goes
back into the
Idaho Power Company
Employee Handbook
This page left blank intentionally.
Idaho Power Company
ESP (Rev. 1/03)
Idaho Power Company
Employee Savings Plan
Summary Plan Description
This document constitutes part of a prospectus
covering securities that have been registered
under the Securities Act of 1933.
Plan Provisions Effective
January 1 2003
Idaho Power Company
Employee Handbook
Employee Savings Plan Participant Contacts
For Questions About:
Account Balances
Exchanges
Investment Option
Information
Investment Performance
Loans
Payroll Deductions
Payroll Investment
Allocations
Application
Forms
Hardship Withdrawals
Lost or Missing
Statements
Partial Withdrawals
PIN Replacement
Primary Residence Loan
Rollovers to the ESP
Terminations
Beneficiary Designations
Qualified Domestic
Relations Order (QDRO)
Information
Eligibility to Participate
Contact:
Putnam Investments through the VRU* at
800-685-6474 or online at www.ibenefitcenter.com.
VRU is the abbreviation for the Idaho Power Company
Employee Savings Plan (ESP) Voice Response Unit.
A Putnam customer service representative through the
VRU at 1-800-685-6474 between 6 a.m. and 8 p.
Mountain Time, any business day.
Idaho Power Company ESP Plan Administration
(Ext. 6611) 388-6611
Idaho Power Company
ESP (Rev. 1/03)
Table of Contents
Idaho Power Company Employee Savings Plan ...........
Questions and Answers ...............................................
Eligibility and Participation .....................................
Contributions.................. ........ ............ ..... ..... ............ 2
Catch-up" Contributions ........................................ 4
Withdrawals ........................... ..... ..... ............. ...... ....... 4
V esti n g ....................................................................... 5
Loans.. .......
..... ........................ ................ .... .... ...........
Account Transfers ....................................................
Termination of Employment .................................... 6
Rollovers.. ......... ................... ....... ............ .... ......... ...... 6
Summary Plan Description .............................................. 7
General Information Regarding the Plan .................... 7
Participation in the ESP ................................................ 8
Contributions to the ESP .............................................. 9
General....... ..... ...............
...... ...... ...... ....................... ...
L TD Participant Contributions ..............................
Former ESOP Shares .............................................
Deferred Feature (Before Tax or 401 (k))...............1 0
Savings Feature ......................................................
Match Feature Contributions.................................
Idaho Power Company
Employee Handbook
'\.
Contribution Limitations ........................................
Catch-up " Contributions ......................................
How Contributions are Invested ................................
ESP Investment Options ............................................
General....... ..................... .....
.....
................. ......... ..... 12
Investment Allocation Changes for
Contributions ......................................................
Exchanges ...............................................................
Fund Performance Information .............................
Other Important Information About
Investments .............................................................
Valuation of Funds .................................................
Transaction Fees or Expenses .............................
Voting ........... ........................... ............. ............ ........
Information You Will Receive Automatically .......
Information Available Upon Request ...................
Beneficiary Designations ...........................................
Domestic Relations Orders ........................................
401 (k) Loans ................................................................
Applying for a Loan ................................................ 20
Loan Policy.............................................................. 20
Repayment in Full...................................................
Defaulting on a Loan ..............................................
ii Idaho Power Company
ESP (Rev. 1/03)
Withdrawals and Distributions from the ESP........... 21
General....... .......................................... ...........
..... ....
Deferred and Rollover Feature Withdrawals ....... 22
Savings Feature Withdrawals................................ 24
Withdrawal of Savings Feature Employee
Contributions .......... ................. ................ ........... 24
Withdrawal of Untaxed Proceeds from the
Savings Feature ..................................................
Withdrawals and Distributions-Brokerage
Gateway................... ...............................
.... .........
Other Distributions .................................................
Mandatory Minimum Distributions .......................
Required Distributions and Your Brokerage
Gateway Accou nt.
.................................. .............
Distribution in Company Stock ............................. 26
SEC Restrictions.... ........ ................ ................ ......... 27
Online Investment Advisor-mPower ....................... 27
Highlights of mPower s Service............................ 27
Vesting...... ...................... ...... ........................................
General Tax Information .............................................
Top Heavy Rules ......................................................... 32
How You Can Lose Your Benefits .............................
Administration of the ESP .......................................... 33
Claims... ............ .......... ............. .................. .......... ......... 34
Idaho Power Company iii
Employee Handbook
Claims Review............ .................................................. 34
ESP Trust .......... .....
..... .. ....... ....... ..... ............... .......... ....
Termination of the ESP ...............................................
Statement of Participant Rights Under ERISA ......... 35
Information Required in a Summary Plan
Description in Compliance with ERISA ................
Information Concerning Company Stock.................
Appendix A-Core Funds........................................... 40
Appendix B-Core Plus Funds .................................. 51
Appendix C-Brokerage Gateway.............................
iv Idaho Power Company
ESP (Rev. 1/03)
Idaho Power Company
Employee Savings Plan
Throughout this Summary Plan Description (SPD), reference is made to
contacting Putnam. This refers to Putnam Investments, the Record
Keeper for the Plan that, in coordination with Idaho Power Company
ESP Plan Administration, conducts the day-to-day administration of the
Plan. Putnam can be reached either through the 24 hours a day, 7 days a
week Voice Response Unit (VRU) at 1-800-685-6474, or online at
www.ibenefitcenter.com.Some transactions require contacting a
Putnam customer service representative through the VRU between
6 a.m. and 8 p., Mountain Time, any business day.
Questions and Answers
Eligibility and Participation
Q: How do I begin participation in the Employee Savings Plan (ESP)?
A: You are eligible to participate in the ESP if you are at least
18 years old and are employed by Idaho Power Company or
another participating subsidiary or affiliate of IDACORP, Inc.
(generally referred to as an "employer" in this description).
You may obtain information on the ESP by calling the Idaho
Power Company Employee Savings Plan VRU at 1-800-685-6474
or online at www .ibenefitcenter.com.
Q: Am I required to designate a beneficiary?
A: It is highly recommended that you designate a beneficiary so that
your wishes are carried out in the event of your death. If you have
not designated a beneficiary, your investment in the ESP will be
distributed to your spouse or, if you do not have a spouse, to your
estate. Whoever is listed as your beneficiary on the most recent
Beneficiary Designation form on file in the Idaho Power Company
Human Resources Department will receive your benefit under the
Plan. If you are married and you designate someone other than your
spouse as your beneficiary, your spouse must consent in writing
before a notary.
Idaho Power Company
Employee Handbook
Contributions
Q: What are the maximum percentages that I may contribute to all
features of the ESP?
A: You may contribute up to 100% (in whole percentages) of your
base monthly salary, your employer-approved annual incentive
compensation, and your employer-approved commission (your
eligible pay ) to the Plan to either the Deferred (before-tax)
Feature or the Savings (after-tax) Feature.
Some employees may not contribute the maximum 100% in order
to remain within the Internal Revenue Code guidelines (which in
2003 is 100% of eligible payor $40 000, whichever is less).
Participants who hit either of these limits will be notified by Idaho
Power Company ESP Plan Administration.
Q: When am I eligible for a matching contribution?
A: You are eligible for a matching contribution from your employer
once you have completed 12 months of employment with
IDACORP, Inc. or one of its subsidiaries or certain affiliates.
Q: How much is the matching contribution?
A: The match will equal 100% of the first 2% of employee eligible
pay contributed to either Feature and 50% of the next 4% of
employee eligible pay contributed to either Feature. Employee
contributions in excess of 6% of eligible pay are not matched.
Q: How can I change or suspend all or a part of my contributions?
A: By requesting the change or suspension through the VRU at
800-685-6474 or online at www.ibenefitcenter.com.
Q: Where can I get the forms used in the ESP?
A: Many transactions may be completed through the VRU at
800-685-6474 or online at www.ibenefitcenter.com. For
transactions that require forms, you may request them by calling
the VRU at 1-800-685-6474 and speaking to a Putnam customer
service representative between 6 a.m. and 8 p.m. Mountain Time
any business day.
Idaho Power Company
ESP (Rev. 1/03)
Q: Can my spouse contribute to the ESP?
A: Only active employees of a participating employer may contribute
to the ESP.
Q: What investment options are available to me in the ESP?
A. The ESP has 19 core diversified mutual fund investment options
plus an IDACORP, Inc. common stock option. Participants may
invest in any or all options. These options include a money market
fund, a bond fund, a balanced fund, an S&P 500 index fund, an
equity income fund, an equity growth fund, a small-cap value fund
a small-cap growth fund, an international value fund and an
international growth fund. The 19 core diversified investment
options have been selected by the Plan Administrator to provide a
broad range of investment alternatives as required by regulations
under Section 404(c) of the Employee Retirement Income Security
Act (ERISA). The Plan Administrator will periodically review
these core diversified investment options, and may add or remove
investment options from time to time. For more information on
these funds, refer to Appendix A.
In addition to the Core Funds, participants can invest in other
stocks and mutual funds through Core Plus. For more information
on these options, refer to Appendix B.
You may also invest in other stocks and mutual funds through the
Brokerage Gateway by transferring funds from the Core and Core
Plus funds into the Brokerage Gateway. For more information on
the Brokerage Gateway, refer to Appendix C.
Idaho Power Company
Employee Handbook
Catch-up" Contributions
Q: Can I make "catch-up" contributions to the ESP?
A: With the provision of the "Economic Growth and Tax Relief
Reconciliation Act" of 2001 (EGTRRA), additional "catch-up
contributions will be permitted for participants age 50 and older in the
following amounts:
Year Additional Amount
2003 000
2004 $3,000
2005 000
2006 and after 000
(The limit is indexed for cost-of-living increases in $500 increments
thereafter. )
Q: Do I have to reach the maximum eligible deferred limit before I
can contribute this additional deferred "catch-up" amount (i.
$12 000 in 2003)?
A: No, however, if you are not contributing the maximum eligible
deferred, the "catch-up" contributions may not be sensible, as they
offer no additional benefit.
Q: Can I write a personal check for the "catch-up" contributions?
A: No. All contributions to the ESP must be payroll deducted.
Withdrawals
Q: How can I obtain a withdrawal from the ESP?
A: Three types of withdrawals are permitted in the ESP. Partial
withdrawals from the Savings Feature are available to all
participants. Partial withdrawals from the Deferred Feature are also
available to inactive participants and to active (currently employed)
participants who are over age 59Yz. Hardship withdrawals from the
Deferred Feature may also be available to active employee
participants who are under age 59Yz. Total withdrawals are
Idaho Power Company
ESP (Rev. 1/03)
available upon termination of employment with IDACORP, Inc. or
a subsidiary.
Active employees may request a partial withdrawal from the
Savings Feature by phone or on an In-Service Distribution form.
Inactive participants may request a partial withdrawal on a
Distribution form. These forms are available by calling a Putnam
customer service representative through the VRU at 1-800-685-
6474.
Q: How can I get a hardship withdrawal from the Deferred Feature of
the ESP?
A: A hardship withdrawal from the Deferred Feature of the ESP is
available to active employee participants who are under age 59Yz
for certain reasons. Refer to the section entitled "Deferred and
Rollover Features" for details.
Vesting
Q: What is vesting?
A: Vesting means your ownership of Plan contributions.
Q: When do I become vested in the ESP?
A: You are 100% vested immediately in your own contributions and
once eligible, in the employee matching contributions.
Loans
Q: Can I borrow from my ESP account?
A: Yes. However, only one loan is permitted at a time. Refer to the
section entitled "Loans" for details regarding a loan.
Account Transfers
Q: Can I transfer among investment options within the ESP?
A: Yes. Multiple transfers per day are permitted.
Idaho Power Company
Employee Handbook
Termination of Employment
Q: What are my options if I terminate employment with my employer?
A: Terminated employees generally may receive a total distribution of
account balances in the ESP upon termination. If the total account
market value exceeds $1 000, the former employee may elect to
leave the proceeds in the ESP. Terminated employees with account
balances of $1 000 or less will automatically receive the proceeds
of their ESP accounts following termination of employment. A
terminated employee may receive a distribution , however, only if
he or she is no longer employed by IDACORP, Inc. or any of its
subsidiaries or affiliates.
Rollovers
Q: Can I roll over the proceeds from a previous employer s qualified
retirement plan to the ESP?
A: If you are an active employee and you are eligible to participate in
the ESP, you may be eligible to roll over money from a previous
employer s qualified plan. Call the VRU at 1-800-685-6474 and
speak to a Putnam customer service representative between
6 a.m. and 8 p.m. Mountain Time, any business day, for more
information.
Q: Can I roll over funds from an IRA into the ESP?
A: Yes, beginning in 2002, EGTRRA allows the rollover of pre-tax
IRAs into the ESP.
Idaho Power Company
ESP (Rev. 1/03)
Summary Plan Description
rn=To simplify this description, we have avoided legal and
technical language wherever possible, but of course, this
explanation of the Plan is subject to the detailed terms of
the Plan itself as found in the actual Plan document. This
description is intended only to help you understand the Plan
and in no way can be considered modification of the Plan.
This booklet has been prepared to replace and supersede
all prior descriptions of the Plan.
General Information Regarding the Plan
The Idaho Power Company Employee s Common Stock Purchase Plan
became effective in 1974. It was separated into an Employee Stock
Ownership Plan (ESOP) and the Employee Savings Plan (ESP) in
1979. In 1992, the ESP was amended to allow participant directed
investment of Plan contributions into diversified investment options
plus a Company common stock option. In 1994, the ESOP was merged
into the ESP with the shares of Idaho Power Company stock
transferred into the Savings Feature of the ESP.
At the 1998 Annual Meeting of Shareholders , the shareholders
approved the formation of a holding company structure for Idaho
Power Company. On October 1 1998, pursuant to an Agreement and
Plan of Exchange dated as of February 2 1998 between IDACORP
Inc. and Idaho Power Company, the outstanding shares of stock of
Idaho Power Company were exchanged automatically on a share for
share basis for common shares of IDACORP, Inc. Thereby,
IDACORP, Inc. became the holding company for Idaho Power
Company. Consequently, the account records for the Plan reflect that
each outstanding share of Idaho Power Company common stock
previously held in a participant's account was replaced by one share of
IDACORP, Inc. common stock. Following this restructure, certain
employees of Idaho Power Company or its subsidiaries may become
employees of IDACORP, Inc. or other subsidiaries. It is intended that
such transfers will not impact your participation in the ESP.
The ESP promotes future financial security for employees of
IDACORP, Inc. and its participating subsidiaries and affiliates. It
provides systematic salary savings and is a supplemental retirement
savings program. It also enables Plan participants to share in the
growth of IDACORP, Inc. when they purchase shares of IDACORP
Inc. common stock through the Plan.
Idaho Power Company
Employee Handbook
The core investment options available to participants in the ESP
include IDACORP, Inc. common stock (referred to herein sometimes
as "Company stock"), a money market fund, a bond fund, a balanced
fund, an S&P 500 index fund, an equity income fund, an equity growth
fund, a small-cap value fund, a small-cap growth fund, an international
value fund, and an international growth fund.
In connection with the formation of the holding company structure for
Idaho Power Company and the exchange of IDACORP, Inc. common
stock for shares of Idaho Power Company stock, a total of 1 321 389
shares of IDACORP, Inc. common stock were registered with the SEC
for the ESP. As of December 31 , 2001 , 832 241 such shares have been
purchased by the Plan, and 489 148 shares remain.
Effective January 1 , 1998, the ESP was converted into an "employee
stock ownership plan " which is also "a stock bonus plan." This
change primarily means that whenever you are entitled to a distribution
from the Plan, you may elect to receive the entire amount of the
distribution in the form of Company stock.
Effective January 1 2002, with EGTRRA, the Plan Administrator will
provide all participants the option of receiving the Company stock
dividend passed through to them as a cash payment or reinvested into
additional Company stock within their account. Before EGTRRA, the
Plan Administrator passed through the dividend only to inactive
accounts (former employees, retirees, and non-employee participants)
and reinvested the dividend for active participants. The dividend may
be distributed to participants after the dividend is paid, but no later
than 90 days after the end of the year in which the dividend is paid.
See the section entitled "Other Distributions" for more information.
The summary plan description describes the principal provisions of the
ESP as it is in effect on January 1 2003 for active employees on or
after such date. The description of the distribution rules and
administrative provisions are also applicable to inactive participants.
Participation in the ESP
Once you become an employee of Idaho Power Company or another
participating employer, and have attained age 18, you are eligible to
participate in the Deferred Feature and Savings Feature of the ESP.
Idaho Power Company
ESP (Rev. 1/03)
An individual is not considered an employee if he or she is not
included on Idaho Power Company s or a participating employer
payroll records and personnel records. This is the case regardless of
whether the relationship between the employer and the person
subsequently is determined to be an employer/common-law employee
relationship because of (1) reclassification by a governmental agency
(whether retroactively or prospectively); (2) decision by a court
mediation, arbitration, or similar proceeding; or (3) mutual agreement
between the employer and the individual. Examples include, but are
not limited to, any person:
0 Who the employer treats as an independent contractor.
0 Who is paid through a third-party business entity s payroll.
, Who is hired through an agreement with an employee staffing
agency.
Once you are eligible, you may begin participating effective on the first
day of any payroll period. Deductions are effective with each biweekly
payroll period for employees of Idaho Power and each regular payroll
period for employees of other participating employers.
You are eligible for matching contributions from your employer once
you have completed 12 months of employment with IDACORP, Inc. or
one of its subsidiaries or certain affiliates.
Contributions to the ESP
General
Your contributions to the ESP are made by payroll deduction, with the
exception of cash roll overs from a previous employer s qualified
retirement plan, or from pre-tax IRAs. Rollover or trustee-to-trustee
transfer funds will not receive any employer matching contributions.
You may not "make up" contributions to the Plan. However, if you are
rehired following a period of uniformed service that entitles you to
rights under the Uniformed Services Employment and Reemployment
Rights Act (USERRA), you may be entitled to make certain "make up
contributions to the Plan , and also to receive certain matching
contributions. Contact Idaho Power Company ESP Plan
Administration for further information if you think you may be eligible
for these special benefits. You may elect to contribute 100% of your
eligible pay" (within IRS limits) to both features of the ESP.
Idaho Power Company
Employee Handbook
You may change deduction percentages, change investment allocation
percentages or suspend all or a part of your payroll contribution by
requesting the desired changes through the VRU at 1-800-685-6474 or
online at www.ibenefitcenter.com.
All VRU and online instructions to Putnam regarding changes in
contributions will take effect as soon as administratively feasible.
L TD Participant Contributions
Employees who become eligible for long-term disability (LTD) after
January 1 , 1998. are not eligible to contribute to the Plan. If you were
receiving LID benefits and you were also a Plan participant on or
before January 1 , 1998, you may continue to contribute to the Savings
Feature of the Plan, as long as you continue to receive LTD benefits.
Former ESOP Shares
In October 1994, the ESOP was merged into the ESP. All common
stock shares from the ESOP were transferred into the Savings Feature
of the ESP. These shares are treated the same as other Savings Feature
common stock shares. For example: Employee after-tax contributions
to the ESOP will retain their after-tax nature in the Savings Feature of
the ESP. This means that shares purchased with after-tax employee
contributions to the former ESOP may be withdrawn from the Savings
Feature of the ESP without further taxes. Earnings or gain attributable
to those shares and ESOP employer matching shares, however, have
not been taxed and would be taxable upon distribution to a participant
unless rolled over to an IRA or qualified employer Plan. Upon merger
of the two plans, former ESOP participants became participants in the
Savings Feature of the ESP, with the same rights and privileges of
existing Savings Feature participants.
Deferred Feature (Before Tax or 401 (k))
You may contribute from 0-100% (within IRS limits) of your eligible
. pay to the Deferred Feature of the ESP in whole percentages.
Contributions to the Deferred Feature are made by payroll deduction
and reduce your federal and state taxable income by the amount you
elect to contribute to the Deferred Feature of the ESP. Contributions to
the ESP do not reduce income for Social Security tax purposes.
Amounts contributed under the Deferred Feature will not affect
earnings for purposes of calculating pension benefits, life and
disability insurance coverage, or other employer benefits.
10 Idaho Power Company
ESP (Rev. 1/03)
Savings Feature
You may contribute from 0-100% (within IRS limits) of your eligible
pay to the Savings Feature of the ESP in whole percentages.
Match Feature Contributions
You are eligible for a matching contribution from your employer once
you have completed 12 months of employment. The match will equal
100% of the first 2% of your eligible pay contributed to either Feature
and 50% of the next 4% of your eligible pay contributed to either
Feature. Employee contributions in excess of 6% of eligible pay are
not matched. Idaho Power Company matching contributions are made
to the Plan each biweekly pay period. Other employer matching
contributions are made on each regular payday for the employees of a
subsidiary or affiliate.
If you terminate employment due to a period of uniformed service
before becoming eligible to receive a matching contribution under the
Plan, upon your rehire, you will be credited with your uniformed
service when determining your eligibility to receive matching
contributions.
Contribution Limitations
The Internal Revenue Code limits the dollar amounts that may be
contributed to benefit plans by or on behalf of any individual.
The total of all your annual tax-deferred contributions made to the ESP
or any other plan during a taxable year is limited ($12 000 in 2003).
This limit may be indexed for cost of living increases each year.
Should your tax-deferred contributions exceed the limit for any year
you should, before March 1 following the year in which the excess
occurred, inform the planes) involved of such excess. The planes)
should distribute the excess, plus any applicable earnings to you, by
April 15 of that same year.
Another limit includes the average contribution percentage for highly
compensated employees as it relates to the average contribution
percentage of non-highly compensated employees. This limitation may
affect the amount some employees may contribute to the ESP. You
will be notified if this limitation applies to you.
Idaho Power Company
Employee Handbook
Catch-up" Contributions
With the provision of EGTRRA, additional "catch-up" contributions
will be permitted for participants 50 and older in the following
amounts:
Year Additional Amount
2003 000
2004 $3,000
2005 000
2006 and after $5,000
(The limit is indexed for cost-of-living increases in $500 increments
thereafter. )
How Contributions are Invested
The ESP permits you to direct the investment of your accounts. When
you become a participant, you must direct how your contributions and
your employer s matching contributions will be invested among the
available investment options through the VRU at 1-800-685-6474 or
online at www.ibenefitcenter.com. You may make subsequent changes
to your investment directions, or transfer existing funds to a different
investment, as described below.
The ESP is intended to meet the. requirements of Section 404(c) of
ERISA, as amended, and the regulations issued thereunder. Under
Section 404(c), fiduciaries of the ESP may be relieved of liability for
any losses that are the direct and necessary result of your investment
instructions.
ESP Investment Options
General
The Core Funds include diversified mutual fund investment options
plus an IDACORP, Inc. common stock option. Participants may invest
in any or all options. These options include a money market fund, a
bond fund, a balanced fund, an S&P 500 index fund, an equity income
fund, an equity growth fund, a small-cap value fund, a small-cap
growth fund, an international value fund, and an international growth
fund.
12 Idaho Power Company
ESP (Rev. 1/03)
The 19 core diversified investment options have been selected by the
Plan Administrator to provide a broad range of investment alternatives
as required by regulations under Section 404( c) of ERISA. The Plan
Administrator will periodically review these core diversified
investment options, and may add or remove investment options from
time to time. Refer to Appendix A for additional information regarding
the Core Funds.
In addition to the Core Funds, participants can invest in other stocks
. and mutual funds through either Core Plus or the Brokerage Gateway.
0 Many additional specialized mutual funds are available through
Core Plus. Prospectuses on the Core Plus Funds are available
through Putnam Investments by calling the VRU at 1-800-685-
6474, or online at www.ibenefitcenter.com, The Learning Center
Investment Choices. These prospectuses identify the names of the
funds, their investment policies and objectives, and other pertinent
information, including mutual fund operating expenses and
management fees. Refer to Appendix B for more information on
the Core Plus Funds.
0 You may invest in other stocks or mutual funds through the
Brokerage Gateway. Refer to Appendix C for information on
additional fees, rules , and limitations on investing through the
Brokerage Gateway.
All employee payroll deductions and employer matching funds are
turned over to the Trustee of the ESP to be invested on one or more of
the Core or Core Plus investment options designated by each
participant.
ar Employer matching contributions are allocated to the same
investment options into which the participant designates the
investment of his or her own contributions.
You may transfer funds from one of the Core or Core Plus Funds into
the Brokerage Gateway, but contributions may not be made directly to
the Brokerage Gateway.
Investment earnings are reinvested inthe investment options where
earned.
All purchases or redemptions of mutual fund shares are effective at the
close of business of the New York Stock Exchange on the day a fund
Idaho Power Company
Employee Handbook
manager receives the purchase or redemption instructions from the
Trustee.
If original-issue IDACORP, Inc. common stock is purchased by the
Trustee for a participant's account , the price of each share of stock will
be the previous day s closing market price.
Open market purchases or sales made by the Trustee for a participant
will be at the market price of the stock when the Trustee executes the
transaction. The market price may vary for different transactions
executed at different times during the same day. Brokerage
commissions (currently 3rt per share) are charged on purchases and
sales of Company stock. Generally shares of Company stock are
purchased on the open market. However, if shares of Company stock
are issued directly by the Company (original-issue stock), no brokerage
commission is charged.
The ESP is not intended to be used as a securities trading account nor
should it be used to attempt to time the market.
Participants may incur losses if they attempt to transfer among options
too frequently or too soon after they have purchased shares in a
particular investment option. Specific share prices upon sale or
purchase cannot be assured.
Investment Allocation Changes for Contributions
Investment allocation changes for contributions may be made daily by
requesting the desired changes through the VRU at 1-800-685-6474 or
online at www.ibenefitcenter.com.
All VRU and online instructions to Putnam regarding investment
allocation changes will take effect as soon as administratively feasible.
Exchanges
Reallocation of existing investment balances may be accomplished over
the VRU at 1-800-685-6474 or online at www.ibenefitcenter.com.
Fund Performance Information
Each of the Core Funds is described in Appendix A, with performance
information for the past five years or date operation commenced, if
later. Each of the Core Plus Funds is described in Appendix B. This
information has been extracted for participants from each fund'
prospectus. A current prospectus on each fund is available from
14 Idaho Power Company
ESP (Rev. 1/03)
Putnam Investments by calling the VRU at 1-800-685-6474 and
speaking to a customer service representative, or through
www.ibenefitcenter.com The Learning Center, Investment Choices.
The different investment options provide a range of risk, liquidity, and
investment return opportunities. No one connected with the ESP
including the Company, its subsidiaries and the Trustee, recommends
any investment option over any other. Your selection of options should
take into account your personal financial situation, including your total
assets and investments both inside and outside the ESP, and how long
you intend to have the funds invested. More information on the various
investment options is available from Putnam Investments by calling
the VRU at 1-800-685-6474 or online at www.ibenefitcenter.com.
Other Important Information About Investments
Valuation of Funds
The investment funds are valued as of each business day. Investment
income and gains will increase the value of your accounts; investment
losses will decrease the value of your accounts.
Transaction Fees or Expenses
Plan participants pay the fund management fees that vary by fund.
A small brokerage commission is paid by participants on the purchase
or sale of Company stock within the ESP (including initial investment
of employee and match contributions and any exchanges). Generally,
shares of Company stock are purchased on the open market. However
if shares of Company stock are issued directly by the Company
(original-issue stock), no brokerage commission is paid.
Certain fees or expenses may be reflected in your investment gains or
losses, as described in the prospectuses provided to you for the Core
Funds. You may request a copy of the prospectus or offering statement
for the Core Plus Funds by calling a Putnam customer service
representative at 1-800-685-6474 between 6 a.m. and 8 p.m. Mountain
Time, any business day, or online at www.ibenefitcenter.com the
Learning Center, Investment Choices.
Voting
The managers of the respective mutual funds vote the underlying
shares of each Core or Core Plus mutual fund (the share of stock of
each individual company in which the mutual fund invests). The Plan
Idaho Power Company
Employee Handbook
Administrator votes the actual Core or Core Plus mutual funds to the
extent appropriate.
Voting rights attributable to IDACORP, Inc. common stock will be
exercised by participants with interests on the record date for voting
activity, whether to elect directors and take action on other corporate
matters, or to determine whether shares may be tendered in the case of
a tender offer.
Only persons who need to know will have access to information
regarding your investment in IDACORP, Inc. stock. Such restricted
information includes records of any purchase, sale, or retention of your
investment in IDACORP, Inc. stock. Persons with access to these
records may include the Trustee and Plan administrative personnel
appointed, employed or retained by the Trustee or Idaho Power
Company. Management staff of Idaho Power Company will not have
access to these records , except as necessary in providing services to the
Plan. The Human Resources Vice President acting on behalf of Idaho
Power Company as the Plan Administrator, is responsible for
monitoring compliance with the Plan s confidentiality procedures
generally. In addition, persons who are deemed to be "insiders" must
report ownership of IDACORP, Inc. stockin publicly available reports
filed with certain regulatory authorities.
Before each annual or special meeting of IDACORP Inc.' s
shareholders, the Plan Administrator will ensure that proxy materials
and other information that are sent to the shareholders of record of
IDACORP, Inc. are sent to each participant who has shares of
IDACORP, Inc. common stock credited to the Deferred, Match
Savings, or Rollover Feature Accounts within the ESP. Each
participant who has shares of IDACORP, Inc. common stock credited
in the ESP may exercise voting rights within SEC regulations. The
Trustee will vote the shares as instructed by the participant. Fractional
shares and shares with respect to which the Trustee has not received
timely instructions will not be voted by the Trustee.
If you elect to invest part of your ESP account through the Brokerage
Gateway (see Appendix C), you will be able to direct Harrisdirect as to
the voting, tendering, or other shareholder actions applicable to
securities (including mutual funds) held in your Brokerage Gateway
account.
16 Idaho Power Company
ESP (Rev. 1/03)
Information You Will Receive Automatically
When you initially invest in one of the investment options that is
subject to the Securities Act of 1933, you will be provided with a copy
of the most recent prospectus. However, if you recently received a
copy of the latest prospectus before you invested, the Plan
Administrator is not required to give you a second copy.
You will receive quarterly account statements. Whenever a transfer is
made, a confirmation of the transfer will be provided to you upon
completion of the transfer.
The VRU, at 1-800-685-6474 , or the web site at
www.ibenefitcenter.com.provides information 24 hours a day to ESP
participants. You may initiate transactions in your account online or by
using the VRD.
Information Available Upon Request
Upon written request, you will be provided with:
0 A description of the annual operating expenses of each Core Fund
investment option available under the ESP, which reduce the rate
of return from such investment option and the aggregate amount of
such expenses expressed as a percentage of average net assets of
the investment option.
Copies of any prospectus , financial statements and reports , and
other materials relating to the Core Fund investment options
available under the ESP, to the extent such information is provided
to the Plan and has not previously been provided to you.
Information concerning the value of shares or units in the Core
Fund investment options available under the ESP, as well as the
past and current investment performance of each option determined
net of expenses. This information will also be provided in quarterly
participant statements.
Information concerning the value of shares or units in the
investment options held in your account.
Written confirmation of your investment instructions.
If you would like to receive any of the above information , please
contact a Putnam customer service representative through the VRU at
800-685-6474.
Idaho Power Company
Employee Handbook
Similar information is available from Putnam for the Core Plus Funds
and from Harrisdirect for the Brokerage Gateway.
Questions about the ESP and claims for benefits under the ESP should
be directed to Putnam Investments through the VRU at 1-800-685-
6474 or online at www.ibenefitcenter.com.
Beneficiary Designations
When you enroll in the ESP , you also complete a Beneficiary
Designation form. It is important that your beneficiary designation be
kept up to date. In the event of your death, the proceeds of your ESP
accounts will be distributed according to the instructions you have
written on that form.
If you do not designate a beneficiary, or your designated beneficiary
has predeceased you, the proceeds of your accounts will be distributed
to your spouse, if you are married at the time of your death; otherwise
your account will be distributed to your estate.
If you designate a person other than your spouse as beneficiary, you
must complete a Beneficiary Designation form, and have your spouse
signature notarized on the form, indicating consent to the designation.
There are notaries located throughout the Company.
(if Notification of beneficiary change to the Company for other
benefit plans does not automatically change the beneficiary
designation for the ESP.
Generally, your interest in the ESP may not be pledged, assigned, or
transferred except that the proceeds of your account may be paid to a
designated beneficiary in the event of your death.
No person has, or may, create a lien on any funds or stock held within
the ESP for your benefit except as may otherwise be provided by law.
Domestic Relations Orders
According to the tax law, if you and your spouse divorce and the
property settlement involves awarding all or a part of the balances in
your ESP account to an alternate payee (your former spouse, or other
person, such as a dependent) you must follow specific procedures
required by the Internal Revenue Code, as amended, and by ERISA.
Contact Idaho Power Company ESP Plan Administration, CHQ-
18 Idaho Power Company
ESP (Rev. 1/03)
(ext. 6611), as soon as you know that your ESP account will be
involved in a Qualified Domestic Relations Order (QDRO).
Alternate payees listed in a QDRO who do not elect a lump sum
distribution of their benefit wil1 have an account established within the
guidelines of the QDRO , and thereby become inactive participants in
the ESP. Inactive participants may not make contributions to their
accounts. Account balances of $1 000 or less for a QDRO participant
generally must be distributed to the alternate payee.
Alternate payees may transfer account balances among the investment
options subject to the same restrictions as an active employee
participant.
Alternate payees may elect partial or total distribution of their account
within the Plan at any time, or they may elect to maintain their account
within the Plan subject to the rules described in the section entitled
Mandatory Minimum Distributions" section.
401 (k) Loans
If you are an active employee, you may borrow funds through the
Plan s loan feature. You will repay the loan and interest on the loan
balance to your account through automatic after-tax payroll
deductions.
You can have only one loan outstanding at a time. The maximum
amount of the loan is the lesser of:
Fifty percent of your account balance (including any amounts
invested in the Brokerage Gateway).
0 $50 000 reduced by your highest outstanding loan balance during
the previous 12 months.
The total market value of your account that is not invested in the
Brokerage Gateway.
Funds for a loan will come pro rata from the various investments in
your account (excluding any investments in the Brokerage Gateway).
Checks are generally mailed within five business days after your
request.
Idaho Power Company
Employee Handbook
Assets in your Brokerage Gateway account are not available for loans
but will be included in calculating your total available loan amount in
accordance with ESP loan rules. It is important to keep this in mind, as
it may impact Putnam s ability to process a loan request under standard
time frames.
The interest rate on a loan will be the Prime rate of interest (as reported
by the Wall Street Journal on the first business day of the month in
which the loan is requested), plus 1 %. The interest rate will remain
fixed through the duration of the loan.
Applying for a Loan
As an active employee, you may request a loan through the VRU at
800-685-6474 or online at www.ibenefitcenter.com.
Loan Policy
A loan from the Plan may be made for any reason with the following
restrictions:
The minimum amount of a loan is $1 000.
The maximum loan repayment period is five years.
0 If you use the loan to purchase your principal residence, the
maximum repayment period is ten years. For this loan, you must
submit a signed promissory note and a copy of your purchase and
sale agreement. Therefore , a longer period of time will go by
before you receive your loan check.
0 If you have an outstanding loan from the Plan and go on an
approved unpaid leave of absence, your loan payments may be
suspended for a period of one year. When you return to active
employment, payments will resume through payroll deduction. The
amount of each periodic payment will be adjusted, so that the
unpaid balance will continue to be paid in equal installments in
amounts sufficient to retire the entire loan indebtedness by the
original maturity date of the loan.
Former employees must payoff their loan in full within 90 days of
their termination of employment.
0 If you terminate employment without deferring distribution of your
account, or your account balance is $1 000 or less , you will receive
a distribution of your account balance, less the outstanding loan
20 Idaho Power Company
ESP (Rev. 1/03)
balance. Any outstanding loan balance will be considered part of
the distribution for tax purposes, unless the loan is paid off before
distribution of your account balance.
Repayments of loan amounts will be invested in the same
investment funds you have chosen for your current contributions.
Any outstanding loan balance must be paid in full following your
death, or it will become a taxable distribution.
Repayment in Full
You may payoff the entire balance of your loan at any time without
penalty or service fee by sending a certified check made payable to
Putnam Fiduciary Trust Company, Trustee of the Plan. Please
reference your name and social security number on the check and mail
it to the following address:
Putnam Investments Defined Contribution Plan Administration
Attention: Idaho Power Company Employee Savings Plan
O. Box 9740/Location 35
Providence, RI 02940-9740
Defaulting on a Loan
If you fail to make a loan payment within 30 days after its due date
your loan will be in default. If the missed payments are not paid within
90 days of the due date of the first missed payment, the amount in
default will be considered a "deemed distribution" to you, subject to all
taxes and penalties on distributions. The amount of the deemed
distribution will be reported by Putnam to the IRS. This means you
will responsible for payment of income tax on the amount of the loan
and may be subject to a 10% penalty on early distributions from the
Plan. If you default on a loan, you will not be eligible for any future
loans from the ESP.
Withdrawals and Distributions from the ESP
General
The ESP provides for three types of withdrawals:
1) Partial withdrawals from the Savings Feature are available to
all participants. Partial withdrawals from the Deferred Feature
are also available to active employee participants who are over
age 59V2 and to all inactive participants.
Idaho Power Company
Employee Handbook
2) Hardship withdrawals from the Deferred or Rollover Feature
may be available to active employee participants who are under
age 59Y2.
3) Total withdrawals are available upon termination of
employment with IDACORP, Inc. or its subsidiaries.
rn=
Taxable distributions from the ESP may be subject to
mandatory withholding unless they are rolled directly to an
IRA or qualified employer plan or paid in the form of
certificates of Company common stock.
Deferred and Rollover Feature Withdrawals
Withdrawals from the Deferred and Rollover Features for active
employee participants before age 59Y2 will be limited to hardship
withdrawals.
Hardship withdrawals must be approved by Putnam on behalf of the
Plan Administrator.
Hardship withdrawal requests will only be considered for the following
reasons:
0 To purchase your principal residence.
0 To prevent the eviction or foreclosure of a mortgage on a
participant's principal residence.
0 To pay for post-secondary education tuition expenses and fees
(including room and board) for you or a dependent for the next 12-
month period of schooling.
0 To pay for unreimbursed medical expenses incurred by you or a
dependent.
The amounts that may be used for a hardship withdrawal are the
amounts attributable to the participant's Deferred Feature Contributions
to the Plan (excluding earnings on such deferrals since January 1, 1989)
and amounts attributable to the participant's Rollover Feature.
Distributions from the Deferred or Rollover F~atures are subject to
income tax liabilities that may include a 10% penalty for withdrawal
before age 59V2.
22 Idaho Power Company
ESP (Rev. 1/03)
Hardship withdrawals will be made first from your Rollover Feature
and then, if necessary, from your DefeITed Feature. Hardship
withdrawals from your Rollover Feature are subject to a mandatory
20% withholding and are eligible to be transfeITed directly, or rolled
over within 60 days, to a qualified IRA or employer plan. Hardship
withdrawals from your Deferred Feature are (1) not subject to the
mandatory 20% withholding requirement (although 10% will
automatically be withheld unless you elect otherwise); and (2) not
eligible for direct rollover (a direct transfer of funds from the Plan to a
qualified IRA or employer plan).
Active employee participants who are under age 59Y2 may obtain a
Hardship Withdrawal Form from Putnam, which includes all
information required to submit a hardship withdrawal application.
Information on hardship withdrawals may also be obtained by calling a
Putnam customer service representative through the VRU at
800-685-6474 between 6 a.m. and 8 p.m. Mountain Time, any
business day.
The application and all required documentation must be submitted to
Putnam, for consideration on behalf of the Plan Administrator.
In accordance with IRS rules, before a hardship withdrawal can be
made, the participant must have obtained all other distributions to
which he or she is entitled under the ESP, including the IDACORP
pass-thru dividend, if applicable, and must have obtained all loans to
which he or she is entitled under this Plan or the Idaho Power
Company employee signature loan program. A loan is not required
however, if it would not alleviate the hardship-such as may occur in
connection with buying a residence, when a loan might disqualify the
participant from obtaining other financing. Also, a participant who
receives a hardship withdrawal must suspend contributions to the ESP
for a six-month period from the date of receipt of the hardship
distribution.
In addition, the participant who receives a hardship withdrawal must
continue to take the IDACORP pass-thru dividend, if applicable, for
six months, and may not make elective defeITals for six months
immediately following the hardship distribution.
Partial withdrawals from the DefeITed Feature are available to inactive
participants and active employee participants over age 59Y2. Partial
withdrawals from the DefeITed Feature are limited to one withdrawal
per calendar quarter.
Idaho Power Company
Employee Handbook
Savings Feature Withdrawals
Participants may withdraw their contributions to the Savings Feature
once each calendar quarter including shares from the former ESOP.
Withdrawal of Savings Feature Employee Contributions
All employee contributions to the Savings Feature and to the former
ESOP (merged into the Savings Feature in 1994) that were made with
employee after-tax contributions before 1987, may be withdrawn
without additional taxes only on those contributions.
Withdrawal of Untaxed Proceeds from the Savings Feature
Earnings or gain attributable to Savings Feature employee
contributions have not been taxed. Any withdrawals of untaxed
earnings or gain from the Savings Feature will result in a taxable event
in the year of distribution. Proceeds from the former ESOP attributable
to employer contributions, earnings or gain have not been taxed
previously and will be subject to tax in the year distributed to a
participant.
Distributions of untaxed employer contributions and all earnings and
gain are eligible for rollover to an IRA or qualified employer plan to
avoid taxes.
Withdrawals and Distributions-Brokerage Gateway
Assets in your Brokerage Gateway account are not available for
withdrawals. You may take a withdrawal from your ESP account when
permitted under ESP withdrawal provisions applicable to you. Before
requesting a withdrawal , you should ensure that there are no Brokerage
Gateway trade orders pending settlement.
Direct distributions from your Brokerage Gateway account are not
permitted. If you separate from active service and a distribution of your
account is requested (for balances greater than $1 000) or required (for
balances less than $1,000), all Brokerage Gateway holdings must be
invested in your Putnam Money Market Fund-SDB account before
Putnam can process your distribution.
Putnam will notify you if there is a Brokerage Gateway balance in your
account that is preventing the processing of your distribution. Upon
notification, you must instruct Harrisdirect to liquidate all individual
holdings in your Brokerage Gateway account. Harrisdirect will
automatically invest the proceeds in your Putnam Money Market
24 Idaho Power Company
ESP (Rev. 1/03)
Fund-SDB account. No shares can transfer in kind. Unlike the
requirements for loan and withdrawal processing, you do not need to
transfer balances from your Putnam Money Market Fund-SDB
account to your ESP account for distribution processing to take place.
Upon settlement of the assets in your Putnam Money Market Fund-
SDB account, Putnam can resume distribution processing. Of course
Putnam must also be in receipt of the appropriate distribution
paperwork to process your request under standard time frames.
Other Distributions
A total distribution from the ESP will be made to your beneficiary as
soon as administratively feasible after valid notification of your death
and distribution instructions are received by the Plan Administrator
provided that the distribution must occur within five years after the
date of your death to beneficiaries other than your surviving spouse.
Your surviving spouse may remain in the Plan as long as his or her
account balance is greater than $1 000, subject to the rules described in
the section entitled "Mandatory Minimum Distributions.
The Plan Administrator reserves the right to delay distribution of
account proceeds until beneficiary eligibility is established to the
satisfaction of the Plan Administrator.
If you terminate employment with IDACORP, Inc. or a subsidiary, you
may elect to remain a participant in the ESP if your account market
value is greater than $1 000. If your account value on the date of
termination is $1 000 or less, you will automatically receive the value
of your ESP account following termination of employment, less any
applicable withholding.
A non-employee participant in the Plan may elect a total distribution
from the Plan and can expect to receive the proceeds of his or her ESP
account within 30 days of the last business day of the month in which
Putnam receives the properly completed Request for Distribution and
Waiver form.
As explained in the section entitled "General Information
participants in the ESP who own IDACORP, Inc. stock will be given
the option to have their dividend passed through to them or reinvested
into additional Company stock. Before EGTRRA, and beginning with
the first quarter of 1999, the dividend pass-through was required for
non-employee participants. See the section entitled "General Tax
Idaho Power Company
Employee Handbook
Information" for further information about the effect of a distribution
of dividends under this provision.
Mandatory Minimum Distributions
The Internal Revenue Code requires that the funds in participants
accounts must eventually be distributed to participants or their
beneficiaries. It specifies when such distributions must begin , and
provides a formula for the mandatory minimum distributions that must
be made. Calculation of the mandatory minimum distributions is based
on the participant's life expectancy and the life expectancy of the
participant s designated beneficiary, if any.
If you are a participant, you must begin taking mandatory minimum
distributions from the ESP no later than April 1 of the year following
the later of (1) the year in which you reach age 70Y2 or (2) the year in
which you terminate employment.
If you are a surviving spouse, you must begin taking mandatory
minimum distributions from the ESP by the later of (1) December 31
of the year following the year in which your participant spouse died, or
(2) December 31 of the year in which your participant spouse would
have attained age 70Y2.
If you do not request withdrawals during any year sufficient to meet
these rules, Putnam will contact you about any further minimum
distributions required.
Required Distributions and Your Brokerage Gateway Account
If you are required to take a distribution under the terms of the Plan
and you have a Brokerage Gateway account, funds for your
distribution will first come from your ESP account. If the assets in
your ESP account are insufficient, only then will your Brokerage
Gateway account be liquidated in order to make the distribution.
Distribution in Company Stock
Because the ESP has been converted to a "stock bonus plan, " you may
elect to receive the entire amount of any distribution to which you are
entitled in the form of Company stock. If you want to receive a
Company stock certificate, instead of cash, and the account from
which you are taking a distribution is invested in mutual fund shares,
you will need to initiate an exchange into the IDACORP, Inc. stock
fund prior to withdrawal. There is no additional fee for issuing a
Company stock certificate for your withdrawal.
26 Idaho Power Company
ESP (Rev. 1/03)
SEC Restrictions
Participants who are in a position of control or access to inside
information within the Company (as defined by theSEC and
applicable law) may be required to comply with certain provisions of
the Securities Act of 1933 , as amended, or the Securities Exchange Act
of 1934, as amended, as it applies to insider trading when investing in
the Company stock option.
Each individual participant is responsible for compliance with
regulatory agency provisions as they apply to the sale or purchase of
Company stock inside or outside of the ESP. The Company has
published a policy concerning sales or purchases of Company stock in
the Business Conduct Guide. In addition, the ESP has established
policies relating to actions by insiders of the Company. Please contact
the Idaho Power Company Legal Department for a copy of the ESP
insider policy.
Online Investment Advisor-mPower
The Idaho Power Company Employee Savings Plan has selected
mPower, a federally registered investment advisor, to be a fiduciary
under the Plan and to provide investment advice. Idaho Power
Company Employee Savings Plan participants can get objective
personalized, investment advice from mPower-the nation s leading
provider of online retirement planning advice. Advice from mPower is
available only through the Internet and can be accessed from the
Putnam website (www.ibenefitcenter.com)
By providing mPower the details of your financial situation, mPower
will provide you with a specific recommendation on how to invest in
your Employee Savings Plan. mPower will help you create a full
retirement plan online for your entire investment portfolio and will
offer specific advice on how to close savings and income gaps.
Highlights of mPower s Service
Convenient access to objective, institutional-quality investment
advice
Interactive educational tools, from the basics of retirement
investing to an advanced financial economics course, to enable
beginners, or even sophisticated investors , build better investment
portfolios
Idaho Power Company
Employee Handbook
0 In-depth descriptions and objective analyses of the investment
options available in your 401(k) plan, including performance data
and risk/return reviews
There is no charge for mPower services, although you are required to
sign up online and provide certain financial information. The Plan
Sponsor, the Administrator, and the Trustee are not liable for the
consequences of your investment decisions based on mPower advice.
Vesting
You are immediately 100% vested in your ESP account. When you are
vested, the proceeds of the account belong to you regardless of
employment status with the Company. However, withdrawal rules of
the Internal Revenue Code and the Plan restrict your ability to
withdraw proceeds from your accounts.
General Tax Information
The ESP intends to maintain its status as a tax qualified retirement
plan under Section 401(a) of the Internal Revenue Code.
A determination letter concerning the continued tax qualified status of
the ESP under IRC Section 40 1 (a) will be obtained periodically from
the IRS.
Federal and state income tax regulations that apply to the ESP are
complex and dynamic. The following is only a brief summary of the
provisions of the federal regulations. Each participant should consider
retaining the services of a tax and/or financial advisor concerning the
impact of distributions, withdrawals, or contributions to the Plan on
their financial and tax situation. The Plan Administrator will not
provide information concerning the impact of the tax laws on
individual situations.
Employee contributions to the Savings Feature of the ESP are
taxed before they are made to the ESP; therefore, they may be
withdrawn without additional tax liability. Employee after-tax
ESOP contributions that were merged into the Savings Feature of
the ESP in 1994 are treated the same as ESP Savings Feature
employee contributions and, so, may be withdrawn without
additional tax liability.
28 Idaho Power Company
ESP (Rev. 1/03)
Untaxed earnings and gain attributable to employee Savings
Feature contributions or to ESOP after tax employee contributions
are taxable in the year distributed to a participant.
Company contributions made to the former ESOP on behalf of a
participant are taxable in the year distributed to a participant.
The IRS requires that earnings attributable to post-1986 after-tax
employee contributions to the Saving Feature or ESOP also be
withdrawn at the same time as the post-1986 employee
contributions.
Employee after-tax contributions to the Savings Feature or former
ESOP shares purchased with after-tax contributions are not eligible
for rollover to an IRA and are not subject to income tax when
distributed to a participant.
Beginning in the year after a participant reaches age 70'12 , if
later, the year after the participant terminates employment, a
minimum distribution , is required to be paid to the participant. This
amount is not eligible for rollover.
Employee contributions to the Deferred Feature of the ESP are not
taxed in the year they are contributed to the Plan. Upon withdrawal
or distribution, they are taxable income. Employee deferrals do not
however, reduce income for Social Security tax purposes.
Employer Matching Contributions and all earnings or gain
attributable to the Savings, Deferred, Match, or Rollover Features
are taxable in the year distributed to you.
0 A penalty tax of 10% of the amount distributed will be imposed on
. distributions of all untaxed proceeds from the Savings , Deferred
Match, or Rollover Features that are not directly rolled over to an
IRA or qualified employer plan or on the withdrawal of any
earnings or gain made before a participant attains age 59'12.
Exceptions apply for termination of employment after age 55
unreimbursed medical expenses, death or the disability of the
participant or a distribution paid to an alternate payee as the result
of a Qualified Domestic Relations Order.
Most taxable distributions from the ESP are subject to mandatory
income tax withholding, unless the taxable distribution is rolled
directly to an IRA or qualified employer plan on your behalf, or
Idaho Power Company
Employee Handbook
you elect to receive your taxable distribution entirely in shares of
Company stock. However, hardship withdrawals from the Deferred
Feature are not subject to mandatory income tax withholding
(although 10% will automatically be withheld unless you elect
otherwise), and they are not eligible for direct rollover to an IRA
or qualified employer plan.
Participants will receive tax information , which they may use with
their tax advisor, following a distribution from the Plan
Participants who receive distributions of any type from the Plan
will receive an IRS Form 1099 after the end of the year in which
the distribution was made.
Untaxed distributions of contributions and earnings from the Plan
may be rolled over to an IRA or other employer plan from the ESP.
Taxes would then be deferred until the proceeds were withdrawn
from the rollover IRA or other qualified employer plan.
Participants who turned age 50 before 1986 receive taxable lump
sum (total) distributions from the Plan in one tax year; those who
have been in the Plan for at least five years may qualify for a
lO-year averaging tax treatment. Certain restrictions apply; please
see your tax advisor for additional information on this option.
Participants who receive payments from the ESP that include
IDACORP, Inc. stock may have the option of not paying tax on the
net unrealized appreciation" in the stock until the eventual sale of
the stock. To be able to take advantage of this option, the payment
must qualify as a lump sum distribution (note that the five-year
participation requirement does not apply for this purpose), or the
stock included in the payment must be attributable to after-tax
employee contributions. Certain of the special rules applicable to
lump sum distributions may also apply.
Net unrealized appreciation is the increase in the value of the
Company stock while it was held by the ESP. For example, if
the stock was worth $1 000 when it was contributed to the ESP
account and is worth $1 200 at the time of distribution, the
participant does not need to pay tax on that $200 gain until the
time the stock is sold.
Special holding period rules apply for purposes of determining
capital gains treatment of net unrealized appreciation connected
with Company stock. Any net unrealized appreciation not taxed
30 Idaho Power Company
ESP (Rev. 1/03)
at the time of distribution is taxed at the time of sale as gain
from the sale of a capital asset held for more than 18 months.
The holding period for any post-distribution gain realized upon
the ultimate sale of Company stock will be determined based
on the length of time the stock was held after distribution.
0 If you elect not to defer payment of tax on the net unrealized
appreciation at the time of distribution , the net unrealized
appreciation will be taxed in the year you receive the stock
unless you roll the stock over to an IRA or another employer
plan.
0 If you take a partial distribution after termination of
employment, but before the taxable year in which you receive
the balance in your account, the above special treatment for any
stock included in such final distribution will not apply. Please
see your tax professional for further information.
Effective with the first quarter dividend in 2002, the Plan
Administrator has determined that all ESP participants will have
the option of receiving their dividend passed through to them as a
cash payment or having the dividend reinvested into additional
Company stock. This dividend pass-through feature will continue
to apply to each subsequent quarter s dividends unless and until the
Plan Administrator determines otherwise. Dividends paid to a
participant under this dividend pass-through feature will be taxable
income to the participant in the year received. These dividends may
not be reinvested in the Plan, nor may they be rolled into an IRA or
another plan in order to avoid taxation in the year of receipt.
In order to begin receiving the pass-through dividend (or to stop
the pass-through and have the dividend reinvested), the participant
must speak with a Putnam customer service representative at 1-
800-685-6474, or initiate the request via www.ibenefitcenter.com
before IDACORP, Inc.s payable date in the quarter in which the
participant wants the change to be effective. The following are
IDACORP Inc.'s 2003 payable dates: February 28 , 2003, May 30
2003, September 2 2003 , and December 1, 2003.
0 No income tax will be withheld on dividends paid out under
the dividend pass-through feature; therefore, affected
participants may need to consider making estimated tax
payments.
Idaho Power Company
Employee Handbook
These dividends are not subject to the 10% penalty tax imposed
on distributions received from the Plan if the participant has
not yet reached age 59112.
Any benefits that are payable to a participant's beneficiary as a
result of the participant's death may be subject to federal estate tax.
Since the Plan is a "qualified" plan , Idaho Power Company and any
other IDACORP, Inc. subsidiaries or affiliates that adopt the Plan
will, under present law, be allowed a tax deduction for Deferred
Feature Contributions and Matching Contributions to the Plan to
the extent that the contributions are within the appropriate limits
and satisfy the tests of IRS Code Section 162 (that is, are ordinary,
necessary and reasonable). In addition, IDACORP, Inc. will be
allowed a tax deduction for the IDACORP dividends paid to the
Plan.
In general, the rules summarized above regarding payments to
employee and former employee plan participants also apply to
surviving spouses of employees or to other beneficiaries of
deceased employees , and to spouses or former spouses who are
alternate payees (that is, those covered by a qualified domestic
relations order). However, there are some exceptions. Surviving
spouses, alternate payees and other beneficiarie~ should seek
advice from a tax professional regarding the special rules
applicable in such cases.
The above information is based upon the rules currently in effect as of
the date of publication of this summary plan description. Please see
your tax advisor before requesting any distributions from the ESP.
Top Heavy Rules
Federal law requires that certain ESP provisions that establish
minimum contribution requirements must automatically go into effect
if the ESP is determined to be a "top heavy" plan. The Plan is "top
heavy" if 60% or more of the total benefits under the Plan are
attributable to "key employees " as that term is defined by law. The
Plan is currently not top heavy, and it is unlikely to become top heavy
in the future.
32 Idaho Power Company
ESP (Rev. 1/03)
How You Can Lose Your Benefits
There are a few situations that will cause you to lose benefits or to
have your benefits reduced. These are as follows:
0 No contributions can be made to your account over the ESP'
legally-specified maximum limitations.
Your account will share in losses, as well as gains and income, of
the investment funds in which you have elected to invest your
accounts.
0 If you are subject to a QDRO, then a part or all of your benefit
could be assigned to another party as described in the Domestic
Relations Orders section.
Administration of the ESP
The Plan Administrator for the ESP is Idaho Power Company.
The Plan Administrator is responsible for the administration
and operation of the ESP and may establish day-to-day
operational or administrative policies and procedures that are
not discussed in this Summary. Putnam (coordinating with ESP
Plan Administration) handles the day-to-day administration of
the ESP. See page 1 for detailed information on how to contact
Putnam.
The Plan Administrator is responsible for interpreting the
provisions of the ESP document, and has full discretionary
authority to determine eligibility; to determine the
classification, status and rights of employees, participants and
beneficiaries; to determine the amount, manner and time of
payment of any benefits provided for under the Plan; and to
establish minimum periods of notice.
As Plan Administrator, Idaho Power Company is the named
fiduciary under the Plan. In its capacity as Plan Administrator
Idaho Power Company may designate individuals or
committees to perform its administrative functions with respect
to the Plan. Any such actions undertaken by these individuals
or members of committees will be taken solely as agents for
Idaho Power Company, in its capacity as Plan Administrator
and none of these individuals, whether officers , directors or
Idaho Power Company
Employee Handbook
employees of Idaho Power Company, will themselves be
fiduciaries.
Neither the Plan Administrator nor anyone associated with the
Plan can advise participants on individual investment selection
or personal income or estate tax matters.
Questions about the ESP and claims for benefits should be
directed to Putnam through the VRU at 1-800-685-6474 or
online at www.ibenefitcenter.com.
Claims
In addition to the ways that you may lose benefits listed in the SPD
you should be aware of a very important limitation in the Plan-a
claim may be denied if it is not timely. A claim must generally be filed
within one year after the claimant knew or should have known the
principal facts upon which the claim is based. However, this period is
shortened to 30 days for any failure to follow your directions in the
amount of your salary deferrals or the way that your contributions are
invested. Therefore, you should check your benefit statements
carefully, and immediately notify the Administrator if you discover an
error.
Claims Review
If a claim is denied, you may request a review of the denial by the Plan
Administrator by written request within 60 days of receipt of the
denial. You, or your representative, must submit your claim in writing,
and the Administrator may give you an oral hearing. A written decision
from the Plan Administrator will be rendered within 60 days of receipt
of the written request for a review. If an oral hearing is granted, the
decision by the Administrator will be rendered within 60 days of
receipt of the written request for review. Claimants , or their
representatives, may review pertinent documents and may submit
issues and comments in writing to the Plan Administrator for
consideration prior to rendering a decision.
ESP Trust
The Trustee of the ESP holds all contributions to the ESP in trust. The
Trustee is appointed pursuant to procedures established by the Board
of Directors of Idaho Power Company and is given powers with
34 Idaho Power Company
ESP (Rev. 1/03)
respect to the administration of the ESP Trust in accordance with the
ESP Plan and Trust documents for the exclusive benefit of Plan
participants and their beneficiaries.
The Plan provides that administrative costs of the ESP can be paid
from the ESP Trust.. Currently, few trustee and no recordkeeping fees
are charged by Putnam or the trustee or paid from the ESP Trust. Idaho
Power Company currently pays other administrative expenses of
maintaining the ESP, which include certain trustee fees, registration
fees, consulting fees, administrative salaries and expenses and other
miscellaneous expenses. Idaho Power Company reserves the right to
stop paying such expenses in the future. For information about certain
participant costs , refer to the section entitled "Transaction Fees or
Expenses.
Termination of the ESP
The terms of the ESP do not contemplate any specific termination date.
However, the ESP may be terminated at any time by Idaho Power
Company' s( 1) Board of Directors, (2) Chairman of the Board, or
(3) President and Chief Executive Officer. Upon a complete
discontinuance of the ESP, participants, former participants, and
beneficiaries will continue to have a nonforfeitable interest in their
accounts within the ESP. The foregoing persons also have the authority
to amend the Plan from time to time to keep it current with legislative
or regulatory requirements or to change the Plan for any corporate
purposes.
Statement of Participant Rights Under ERISA
As an ESP participant, you are entitled to certain rights and protection
under ERISA.
ERISA provides that all participants shall be entitled to:
0 Examine, without charge, at the Plan Administrator s office and at
other specified locations, such as work sites, all Plan documents
and a copy of the latest annual report (Form 5500) filed by the Plan
Administrator with the U.S. Department of Labor.
Obtain copies of all Plan documents and other Plan information
upon written request to the Plan Administrator. The Plan
Administrator may assess a reasonable charge for the copies.
Idaho Power Company
Employee Handbook
Receive a summary of the Plan s annual financial report. The Plan
Administrator is required by law to furnish each participant with a
copy of this summary annual report.
Obtain a statement telling you whether you have a right to receive a
benefit upon termination and, if so, what your benefits would be
under the ESP if you stop working now. Such statements are
delivered to you quarterly.
In addition to creating rights for Plan participants, ERISA imposes
duties upon the people who are responsible for the operation of the
ESP. The people who operate your Plan, called "fiduciaries" of the
Plan, have a duty to do so prudently and in the interest of you and other
Plan participants and beneficiaries.
No one, including the Company or any other person, may fire you or
otherwise discriminate against you in any way to prevent you from
obtaining benefits or exercising your rights under ERISA. If your claim
for benefits is denied in whole or in part, you must receive a written
explanation of the reason for the denial. You have the right to have a
review and reconsideration of your claim.
Under ERISA, there are steps you can take to enforce the above rights.
For instance, if you request materials from the ESP Plan Administrator
and do not receive them within 30 days, you may file a claim in court.
In such a case, the court may require the Plan Administrator to provide
the materials and pay you up to $110 per day until you receive the
materials, unless the materials were not sent because of reasons beyond
the Plan Administrator s control.
If you have a claim for benefits that is denied or ignored, in whole or in
part, you may file a suit in a state or federal court.
If it should happen that a fiduciary misuses the Plan s money or if you
are discriminated against for asserting your rights, you may seek
assistance from the u.S. Department of Labor or you may file a lawsuit
in federal court. The court will decide who should pay court costs and
legal expenses. If you are successful, the court may order the person
you have sued to pay these costs and fees. If you lose, the court may
order you to pay these costs and fees, for example, if the court finds
your claim is frivolous.
36 Idaho Power Company
ESP (Rev. 1/03)
If you have any questions about your Plan, you should contact Putnam
through the VRU at 1-800-685-6474. If you have questions about this
statement or about your rights under ERISA, you should contact the
nearest office of the Pension and Welfare Benefits Administration
S. Department of Labor, listed in your telephone directory, or the
Division of Technical Assistance and Inquiries, Pension and Welfare
Benefits Administration, u.S. Department of Labor, 200 Constitution
Avenue, N., Washington, D.C. 20210.
Idaho Power Company
Employee Handbook
Information Required in a Summary Plan
Description in Compliance with ERISA
Name of Plan Idaho Power Company Employee Savings
Plan
Idaho Power Company
Attention: Human Resources Department
1221 West Idaho Street
Plan Sponsor and Agent for O. Box 70
Service of Legal Process Boise, Idaho 83707
[phone]
Service of legal process may be made on the
Plan Administrator or the Trustee.
Employer Identification No.82-0130980
Plan Number 006
End of Plan Year December 31
Idaho Power Company
Attention: ESP Plan Administration
Plan Administrator 1221 West Idaho Street
O. Box 70
Boise, Idaho 83707
Putnam Investments
Record Keeper One Post Office Square
Boston , Massachusetts 02109
IDACORP
Idaho Power Company
Ida West Energy Company
IDACORP Financial Services, Inc.
IDACORP Energy Solutions , LP
Participating Employers IDACORP Services Co.
Idaho Power Resources Corporation
IDACOMM, Inc.
Velocitus (formerly Rocky Mountain
Communications, Inc., effective January 1,
2001 )
Deferred Feature: Eligible employees may
Source of contribute from 0-100% (within IRS limits) in
Contributions before-tax dollars of their eligible pay in whole
percentages.
38 Idaho Power Company
ESP (Rev. 1/03)
Savings Feature: Eligible employees may
contribute from 0-100% (within IRS limits) in
after-tax dollars of their eligible pay in whole
Source of percentages.
Contributions Employer Matching Contributions:
Participating employers match 100% of the
first 2% of employee contributions and 50% of
the next 4% of employee contributions to the
Plan.
Note: No more than 100% of eligible payor
$40,000 (Deferred, Match, and Savings added
together), whichever is less, may be .
contributed to the ESP.
Type of Plan Defined Contribution Plan, which is also an
employee stock ownership plan.
Putnam Fiduciary Trust Company
Plan Trustee One Post Office Square
Boston, Massachusetts 02109
Because individual participant accounts are
Pension Benefit maintained under the ESP, the benefits under
Guaranty Corporation the ESP are not eligible to be insured by the
federal government's Pension Benefit
Guaranty Corporation.
Information Concerning Company Stock
The Company will provide, without charge, to each participant to
whom this document is appropriately delivered, upon written or oral
request of such participant, a copy of any and all the documents that
have been incorporated by reference in Item 3 of Part n of the latest
Registration Statement onForm S-8 relating to the ESP (which
documents are incorporated by reference Section lO(a) of the
prospectus) and any other documents required to be delivered to
employees pursuant to Rule 428(b) of the Securities Act.
Requests for all documents should be addressed to:
Idaho Power Company
ESP Plan Administration-CHQ-
1221 West Idaho Street
O. Box 70
Boise, Idaho 83707
Idaho Power Company
Employee Handbook
Appendix A-Core Funds
Each of the Core Funds is described below with performance
information for the past five years or date operation commenced, if
later. This information has been extracted for participants from each
fund's prospectus. A current prospectus on each fund is available from
Putnam Investments by calling the VRU at 1-800-685-6474 and
speaking to a customer service representative. The different investment
options provide a range of risk, liquidity, and investment return
opportunities. No one connected with the ESP, including the
Company, its subsidiaries, and the Trustee, recommends any
investment option over any other.
The Class Y Advantage
As an ESP participant, you will be able to purchase a special class of
shares, Class Y shares, for the Putnam mutual funds in the Core and
Core Plus investment lineups that are currently offered in Class Y
shares. Class Y shares are available exclusively to Putnam s largest
retirement plan clients and carry lower fees than other share classes of
Putnam mutual funds. Class Y shares do not impose a 12b-l fee (used
to pay distribution and marketing expenses). Therefore, they have a
lower total expense ratio than other classes of shares.
For funds where Class Y shares are not available, you may purchase
Class A shares with any load (sales charge on purchases) waived.
GROWTH
Putnam Voyager Fund Y (Multi-Cap Growth)
This fund seeks capital appreciation by investing mainly in a
combination of stocks of small companies expected to grow over time
as well as stocks of larger, more established corporations. This fund
invests all or a portion of its assets in small to midsize companies.
Such investments increase the risk of greater price fluctuations.
Fees and Expenses: 71 % annually or $7.10 per $1 000 invested in
the fund.
Ticker Symbol: PVYYX
40 Idaho Power Company
ESP (Rev. 1/03)
Harbor Capital Appreciation (Large-Cap Growth)
This fund seeks long-term growth of capital; dividend income is
secondary. The fund normally invests at least 65% of assets in equity
securities of established companies, typically those with market
capitalization of at least $1 billion. The advisor seeks companies
exhibiting superior sales growth , high returns on equity, strong balance
sheets , excellent management capability, strong research and
development, and unique marketing competence.
Fees and Expenses: 0.66% annually or $6.60 per $1 000 invested in
the fund.
Ticker Symbol: HACAX
Putnam International Growth Fund Y
This fund is managed by Putnam Investments. The following text is
extracted from the fund's prospectus:
The fund seeks capital appreciation. The fund invests mostly in
common stocks of companies outside the United States. The fund
firs! selects the countries and industries Putnam believes are
attractive. Then the fund seeks stocks offering opportunity for gain.
These may include both growth and value stocks. Growth stocks
are issued by companies whose earnings Putnam believes are likely
to grow faster than the economy as a whole. Growth in earnings
may lead to an increase in the price of the stock. Value stocks are
those that Putnam believes are currently undervalued by the
market. If Putnam is correct and other investors recognize the value
of the company, the price of these stocks may rise. The fund
invests mainly in midsize and large companies, although the fund
can invest in companies of any size. Although the fund emphasizes
investments in developed countries, it may also invest in
companies located in developing (also know as emerging)
markets.
Fees and Expenses: 0.88% annually or $8.80 per $1 000 invested in
the fund.
Ticker Symbol: POVYX
Idaho Power Company
Employee Handbook
Artisan International (International Growth)
This fund seeks to provide investors with diversified exposure to the
international equity markets, across capitalizations and regions, with a
focus on well-managed growth companies. The fund is typically
benchmarked against the MSCI EAFE Index over a full market cycle.
Fees and Expenses: 1.21 % annually or $12.10 per $1 000 invested in
the fund.
Ticker Symbol: ARTIX
Putnam OTC & Emerging Growth Y (Small-Cap Growth Fund)
This fund is managed by Putnam Investments. The following text is
extracted from the fund's prospectus:
The fund seeks capital appreciation. The fund invests mainly in
common stocks of U.S. companies traded on the over-the-counter
(OTC) market and "emerging growth" companies listed on
securities exchanges. Growth stocks are issued by companies
whose earnings Putnam believes are likely to grow faster than the
economy as a whole. Growth in a company s earnings may lead to
an increase in the price of its stock. Emerging growth companies
are those Putnam believes have a leading or proprietary position in
a growing industry or are gaining market share in an established
industry. The fund invests mainly in small and midsize
companies.
Fees and Expenses: 0.99% annually or $9.90 per $1 000 invested in
the fund.
Ticker Symbol: POEYX
42 Idaho Power Company
ESP (Rev. 1/03)
AIM Small Cap Growth I
This fund is managed by AIM Advisors. The following text is
extracted from the fund's prospectus:
The fund seeks to meet its objective by investing, normally, at
least 80% of its assets in securities of small-capitalization
companies. In complying with this 80% investment requirement
the fund will invest primarily in marketable equity securities
including convertible securities, but its investments may include
other ~ecurities , such as synthetic instruments. Synthetic
instruments are investments that have economic characteristics
similar to the fund's direct investments, and may include warrants
futures, options, exchange-traded funds and American Depositary
Receipts.
Fees and Expenses: 0.72% annually or $7.20 per $1 000 invested in
the fund.
Ticker Symbol: GTSVX
BLEND
Putnam Investors Fund Y (Large-Cap Blend)
This fund seeks long-term growth of capital by investing mainly in
blue-chip stocks-those of large, well-established companies-
selected from a broad range of industries. This fund targets companies
that are enjoying rising sales and profits and that have dominant
positions within their industries.
Fees and Expenses: 0.73% annually or $7.30 per $1 000 invested in
the fund.
Ticker Symbol: PNVYX
Idaho Power Company
Employee Handbook
Vanguard Institutional Index Fund (S&P 500 Index Fund)
This fund is managed by the Vanguard Group. The following text is
extracted from the fund's prospectus:
The investment objective of the fund is to match the performance
of a benchmark index that measures the investment return of large-
capitalization stocks. The fund employs a passive management
strategy designed to track the performance of the Standard &
Poor s 500 Composite Stock Price Index, which is dominated by
the stocks of large u.S. companies.
The fund's total return, like stock prices generally, will fluctuate
within a wide range, so an investor could lose money over short or
even long periods. Stock markets tend to move in cycles, with
periods of rising prices and periods of falling prices. The fund is
also subject to investment style risk, which is the chance that
returns from large-capitalization stocks will trail returns from other
asset classes or the overall stock market. Large-capitalization
stocks tend to go through cycles of doing better- or worse-than
the stock market in general. These periods have, in the past, lasted
for as long as several years.
Fees and Expenses: 05% annually or $0.50 per $1 000 invested in
the fund.
Ticker Symbol: VINIX
Putnam Balanced Portfolio
This fund seeks long-term growth of capital and current income. It is
designed for investors who are willing to accept a moderate level of
risk in a portfolio balanced between stocks and bonds. This is a custom
portfolio blending 60% Putnam Voyager Fund (stocks) and 40%
Putnam Income Fund (bonds). The stock portion consists of an
actively-managed diversified portfolio of growth stocks, and the bond
portion consists of actively-managed investment-grade bonds.
Fees and Expenses: 66% annually or $6.60 per $1 000 invested in the
fund.
Ticker Symbol: No ticker symbol.
44 Idaho Power Company
ESP (Rev. 1/03)
Vanguard Balanced Index Fund
This fund seeks current income as well as long-term growth of capital
and income. The fund's assets are divided between stocks and bonds
with an average of 60% of its assets in stocks and 40% in bonds. The
funds ' stock segment attempts to track the performance of the Wilshire
5000 Total Market Index, an unmanaged index that covers all regularly
traded u.S. stocks. The fund's bond segment attempts to track the
performance of the Lehman Brothers Aggregate Bond Index, an
unmanaged index that covers virtually all taxable fixed-income
securities.
Fees and Expenses: 0.22% annually or $2.20 per $1 000 invested in
the fund.
Ticker Symbol: VBINX
VALUE
The Putnam Fund for Growth and Income Y (Large-Cap Value)
This fund seeks capital growth and current income by investing mainly
in attractively-priced stocks of mature companies that offer long-term
growth potential while also providing income.
Fees and Expenses: 0.57% annually or $5.70 per $1 000 invested in
the fund.
Ticker Symbol: PGIYX
T. Rowe Price Equity Income Fund (Large-Cap Value)
This fund is managed by T. Rowe Price. The following text is
extracted from the fund's prospectus:
The investment objective of the fund is to provide substantial
dividend income as well as long-term growth of capital through
investments in the common stocks of established companies.
The fund will normally invest at least 65% of the fund's total assets
in the common stocks of well-established companies paying above-
average dividends. The fund employs a "value" approach in
selecting investment. An in-house research team seeks companies
that appear to be undervalued by various measures and may be
temporarily out of favor, but with good prospects for capital
appreciation and dividend growth.
Fees and Expenses: 0.80% annually or $8.00 per $1 000 invested in
the fund.
Ticker Symbol: PRFDX
Idaho Power Company
Employee Handbook
Putnam International Growth and Income Fund Y
(International Value Fund)
This fund is managed by Putnam Investments. The following text is
extracted from the fund's prospectus:
The fund seeks capital growth. Current income is a secondary
objective. The fund normally invests mostly in common stocks of
companies outside the United States. The fund invests mainly in
value stocks that offer the potential for income. Value stocks are
those that Putnam believes are currently undervalued by the
market. If Putnam is correct and other investors recognize the value
of the company, the price of these stocks may rise. The fund
invests mainly in midsize and large companies, although it can
invest in companies of any size. Although the fund emphasizes
investments in developed countries, it may also invest in
companies located in developing (also know as emerging)
markets.
Fees and Expenses: 1.09% annually or $10.90 per $1 000 invested in
the fund.
Ticker Symbol: No ticker symbol.
Causeway International Value
This fund is managed by Causeway Capital. The following text is
extracted from the fund's prospectus:
The fund's investment objective is to seek long-term growth of
capital and income. The fund invests primarily in common stocks
of companies in developed countries located outside the U.
Normally, the fund invests at least 80% of its total assets in stocks
in at least ten foreign markets and invests the majority of its total
assets in companies that pay dividends or repurchase their shares.
The fund may invest up to 30% of its assets in stocks of companies
located in anyone country.
Fees and Expenses: 80% annually or $8.00 per $1 000 invested in
the fund.
Ticker Symbol: CIVVX
46 Idaho Power Company
ESP (Rev. 1/03)
Putnam Small-Cap Value Fund
This fund seeks capital appreciation by investing mainly in common
stocks of small u.S. companies with a focus on value stocks. The fund
invests all or a portion of its assets in small to midsize companies.
Such investments increase the risk of greater price fluctuations.
Fees and Expenses: 1.25% annually or $12.50 per $1 000 invested in
the fund.
Ticker Symbol: PSLAX
PIMCO Small-Cap Value Fund Institutional
This fund is managed by NFJ Investment Group, a subsidiary of
PIMCO Advisors. The following text is extracted from the fund'
prospectus:
The investment objective of the fund is to seek long-term growth
of capital and income. The fund invests primarily in common
stocks of companies with market capitalizations between $50
million and $1 billion at the time of investment.
In selecting securities, the Sub-Advisor divides a universe of up to
approximately 2 000 stocks into quartiles based upon PIE ratio.
The lowest quartile in PIE ratio is screened for market
capitalizations between $50 million and $1 billion, subject to
application of quality and price momentum screens. Approximately
100 stocks with the lowest PIE ratios are combined in the fund
subject to limits on the weighting for anyone industry.
The fund is intended for aggressive investors seeking above-
average gains and willing to accept the greater risks associated
therewith.
Fees and Expenses: 0.85% annually or $8.50 per $1 000 invested in
the fund.
Ticker Symbol: PSVIX
Idaho Power Company
Employee Handbook
FIXED INCOME
Putnam Bond Index Fund (Fixed-Income-Index)
This fund seeks a return, before the assessment of fees , that closely
approximates the return of the Lehman Brothers Aggregate Bond
Index, which is an indicator of U.S. investment-grade bond market
performance. This fund invests in a sample of U.S. investment-grade
fixed-income securities and seeks to approximate the performance of
the Lehman Brothers Aggregate Bond Index. The Lehman Brothers
Aggregate Bond Index is a broad market-weighted index that
comprises four major classes of investment-grade fixed-income
securities in the United States: U.S. government bonds; u.S. corporate
bonds, including bonds issued by foreign borrowers in u.s. dollars and
sold in u.S. markets; mortgage-backed securities; and asset-backed
securities. The index is constructed and maintained by Lehman
Brothers, Inc. The fund is not sponsored, endorsed, sold, or promoted
by Lehman Brothers , and Lehman Brothers makes no representation
regarding the advisability of investing in the fund.
Fees and Expenses: 0.35% annually or $3.50 per $1 000 invested in
the fund.
Ticker Symbol: No ticker symbol.
Dodge & Cox Income Fund (Fixed Income)
This fund is managed by Dodge & Cox. The following text is
extracted from the fund's prospectus:
This fund seeks a high and stable rate of current income
consistent with long-term preservation of capital. A secondary
objective is to take advantage of opportunities to realize capital
appreciation. The fund invests primarily in a diversified portfolio
of high-quality bonds and other fixed-income securities, including
S. government obligations, mortgage and asset-backed
securities, corporate bonds, collateralized mortgage obligations
(CMOs) and other rated A or better by either S&P or Moody s. To
a lesser extent, the fund may also invest in fixed-income securities
rated Baa or lower by Moody s or BBB or lower by S&P.
Fees and Expenses: 0.45% annually or $4.50 per $1 000 invested in
the fund.
Ticker Symbol: DODIX
48 Idaho Power Company
ESP (Rev. 1/03)
CAPITAL PRESERVATION
Putnam Money Market Fund
This fund is managed by Putnam Investments. The following text is
extracted from the fund's prospectus:
The fund's goal is to provide investors with as high a level of
current income as is consistent with the preservation of capital and
maintenance of liquidity.
To achieve its goal, the fund invests in money market investments
such as certificates of deposit, commercial paper, u.S. government
debt and repurchase agreements, corporate obligations and
bankers' acceptances issued by banks with deposits in excess of
$2 billion (or the foreign currency equivalent) at the close of the
last calendar year. The fund seeks to maintain a net asset value of
$1 per share for purchases and redemptions. There can be no
assurance that the fund will be able to maintain a stable net asset
value of $1 per share.
Fees and Expenses: 0.50% annually or $5.00 per $1 000 invested in
the fund.
Ticker Symbol: PDDXX
COMPANY STOCK
IDACORP , Inc. Common Stock
This option consists exclusively of the common stock of IDACORP
Inc. It is appropriate for the participant who wishes to invest in the
common stock of IDACORP, Inc. In 1998 , the shareholders approved
the formation of a holding company structure for Idaho Power
Company. As a result of the holding company restructure, the account
records for the Plan were adjusted to reflect that each outstanding share
of Idaho Power Company common stock previously held in an account
under the Plan was replaced by one share of IDACORP, Inc. common
stock.
Fees and Expenses: 3 cents per share for all transactions.
Ticker Symbol: IDA
Idaho Power Company
Employee Handbook
Core Funds Performance Summary as of September 30, 2002
Participants should be aware that past performance is not an indicator
of future performance and no assurances can be made concerning the
future results of any of the ESP investment options.
Year-to-Date 1 Year 3 Years 5 Years
Core Fund 11/30/2002 Annualized Annualized Annualized
GROWTH
Putnam Voyager Fund Y 21.16%22.45%13.95%22%
Harbor Capital Appreciation 24.12%21.49%16.24%36%
Putnam International Growth Y 13.73%16.63%52%53%
Artisan International 16.16%14.65%47%59%
Putnam aTC & Emerging Growth
26.01 %17.15%32.89%16.97%
AIM Small Cap Growth I 12.01%N/A N/A N/A
BLEND
Putnam Investors Fund Y 19.30%21.42%18.20%32%
Vanguard Institutional Index
(S&P 500 Index)17.16%20.41%12.80%53%
Putnam Balanced Portfolio N/A N/A N/A N/A
Vanguard Balanced Index Fund 12%04%30%27%
VALUE
Putnam Fund for Growth & Inc Y 15.22%21.04%8.40%40%
T. Rowe Price Equity Income 34%14.16%63%57%
Putnam International Growth and
Income Y 11.05%11.68%11.28%38%
Causeway International Value 29%N/A N/A N/A
Putnam Small Cap Value 16.07%58%59%N/A
PIMCa Small Cap Value Inst 05% , 12.75%11.92%25%
FIXED INCOME
Putnam Bond Index 57%24%24%N/A
Dodge & Cox Income Fund 18%76%73%85%
CAPITAL PRESERVATION
Putnam Money Market 11%67%15%53%
COMPANY STOCK
IDACORP, Inc. Common Stock 35.83%28.12%1.98%13%
Idaho Power Company
ESP (Rev. 1/03)
Appendix B-Core Plus Funds
Idaho Power Company is providing Core Plus Funds in the ESP to
help meet the needs of participants who may have more specialized
investment goals and who wish to invest their money in an even
broader array of funds than those offered in the Core Fund lineup. The
Core Plus option expands your choice of funds within particular
categories to offer you enhanced flexibility to meet your needs when
planning for retirement. All of the fund options are suitable for use in
retirement plan portfolios, depending on the needs of the particular
investor. However, several of the Core Plus choices invest in more
specialized securities and may entail risks not acceptable to all
investors. Participants are responsible for researching these options to
make sure they fit their particular investment needs.
Prospectuses and offering statements for the Core Plus Funds, which
contain more information about fees, expenses and risk considerations
can be obtained by calling a Putnam customer service representative at
800-685-6474 between 6:00 a.m. and 8:00 p.m. Mountain Time, any
business day. Please read them carefully before making any investment
decisions.
The Class Y Advantage
As an ESP participant, you will be able to purchase a special class of
shares, Class Y shares, for the Putnam mutual funds in the Core and
Core Plus investment lineups that are currently offered in Class Y
shares. Class Y shares are available exclusively to Putnam s largest
retirement plan clients and carry lower fees than other share classes of
Putnam mutual funds. Class Y shares do not impose a 12b-l fee (used
to pay distribution and marketing expenses). Therefore, they have a
lower total expense ratio than other classes of shares.
For funds where Class Y shares are not available, you may purchase
Class A shares with any load (sales charge on purchases) waived.
GROWTH
Putnam Growth Opportunities Fund Y (Equity Growth Fund)
This fund is managed by Putnam Investments. The following text is
extracted from the fund's prospectus:
The fund seeks capital appreciation by investing mainly in
common stocks of U.S. companies, with a focus on growth stocks.
Idaho Power Company
Employee Handbook
Growth stocks are issued by companies whose earnings Putnam
believes are likely to grow faster than the economy as a whole.
Growth in a company s earnings may lead to an increase in the
price of its stock. The fund invests in a relatively small number of
companies that Putnam believes will benefit from long-term trends
in the economy, business conditions, consumer behavior, or public
perceptions of the economic environment. The fund invests mainly
in large companies.
Fees and Expenses: 0.87% annually or $8.70 per $1 000 invested in
the fund.
Ticker Symbol: PGOYX
Putnam Health Sciences Trust (Sector-Health)
This fund seeks capital appreciation by investing mostly in stocks of
health-care companies but may also spread a portion of its assets in
other industries. This fund concentrates its investments in one region
or industry and involves more risk than a fund that invests more
broadly.
Fees and Expenses: 0.71 % annually or $7.10 per $1 000 invested in
the fund.
Ticker Symbol: PHSYX
Putnam International New Opportunities Fund Y (Aggressive
International)
This fund seeks long-term capital appreciation by investing mainly in
stocks of companies with above-average growth prospects in diverse
markets outside the United States. This fund invests all or a portion of
its assets in small to midsize companies. Such investments increase the
risk of greater price fluctuations. International investing involves
certain risks, such as currency fluctuations, economic instability, and
political developments.
Fees and Expenses: 1.48% annually or $14.80 per $1,000 invested inthe fund.
Ticker Symbol: PlNOX
52 Idaho Power Company
ESP (Rev. 1/03)
Putnam New Opportunities Fund Y (Multi-Cap Growth)
This fund seeks long-term capital appreciation by investing primarily
in common stocks of companies within certain industry groups that
Putnam Management believes offer above-average long-term growth
potential. This fund invests all or a portion of its assets in small to
midsize companies. Such investments increase the risk of greater price
fluctuations.
Fees and Expenses: 0.73% annually or $7.30 per $1 000 invested in
the fund.
Ticker Symbol: PNOYX
Putnam Vista Fund Y (Mid-Cap Growth)
This fund seeks capital appreciation by investing mainly in a variety of
stocks that have the potential for above-average growth, including
those of widely traded larger companies; smaller, less well-known
companies; and currently, mostly midsize firms. This fund invests all
or a portion of its assets in small to midsize companies. Such
investments increase the risk of greater price fluctuations.
Fees and Expenses: 0.75% annually or $7.50 per $1 000 invested in
the fund.
Ticker Symbol: PVIYX
Putnam Voyager II Fund Y (Multi-Cap Growth)
This fund seeks long-term growth of capital by investing mainly in
small to midsize companies with the potential for high growth, as well
as in larger companies expected to undergo positive changes. This
fund invests all or a portion of its assets in small to midsize companies.
Such investments increase the risk of greater price fluctuations.
Fees and Expenses: 0.71 % annually or $7.10 per $1 000 invested in
the fund.
Ticker Symbol: PVYYX
Idaho Power Company
Employee Handbook
BLEND
Putnam Capital Appreciation Fund (Multi-Cap Core)
This fund seeks capital appreciation by investing mainly in stocks from
a variety of industries and sectors that have the potential for above-
average growth. This fund invests all or a portion of its assets in small
to midsize companies. Such investments increase the risk of greater
price fluctuations.
Fees and Expenses: 1.08% annually or $10.80 per $1 000 invested in
the fund.
Ticker Symbol: PCAPX
Putnam Capital Opportunities Fund Y (Small-Cap Core)
This fund seeks long-term growth of capital by investing mainly in
common stocks of small to midsize U.S. companies across a wide
array of industries. This fund seeks hidden opportunities in stocks that
have the potential to appreciate over time but may be currently
underpriced by the market. This fund invests all or a portion of its
assets in small to midsize companies. Such investments increase the
risk of greater price fluctuations.
Fees and Expenses: 85% annually or $8.50 per $1 000 invested in
the fund.
Ticker Symbol: PYCOX
Putnam Europe Growth Fund (Regional-Europe)
This fund seeks capital appreciation by investing largely in stocks of
European companies to take advantage of growth opportunities
throughout the region s markets. This fund concentrates its
investments in one region or industry and involves more risk than a
fund that invests more broadly. International investing involves certain
risks, such as currency fluctuations , economic instability, and political
developments.
Fees and Expenses: 1.32% annually or $13.20 per $1 000 invested in
.the fund.
Ticker Symbol: PEUGX
54 Idaho Power Company
ESP (Rev. 1/03)
Putnam Global Natural Resources Fund (Sector-Natural
Resources)
This fund seeks capital growth and current income by investing chiefly
in securities of companies in the natural resources industries located
around the world. This fund concentrates its investments in one region
or industry and involves more risk than a fund that invests more
broadly. International investing involves certain risks, such as currency
fluctuations, economic instability, and political developments.
Fees and Expenses: 1.14% annually or $11.40 per $1 000 invested in
the fund.
Ticker Symbol: EBERX
Putnam Global Equity Fund Y (Global Core)
This fund seeks capital appreciation by investing mainly in stocks of
companies in the Pacific Basin, across Europe, in the Americas, and
wherever else there is a wide range of growth potential.
Fees and Expenses: 0.98% annually or $9.80 per $1 000 invested in
the fund.
Ticker Symbol: PEQYX
Putnam International Voyager Fund Y (International Small-Cap)
This fund seeks long-term capital appreciation by investing mainly in a
diversified portfolio of stocks of small to midsize companies located
outside the United States. This fund invests all or a portion of its assets
in small to midsize companies. Such investments increase the risk of
greater price fluctuations. International investing involves certain risks
such as currency fluctuations, economic instability, and political
developments.
Fees and Expenses: 1.22% annually or $12.20 per $1 000 invested in
the fund.
Ticker Symbol: PIVYX
Idaho Power Company
Employee Handbook
Putnam Research Fund Y (Large-Cap Core)
This fund seeks capital appreciation by investing mainly in stocks of
large u.S.based companies that represent the strongest
recommendations of Putnam s equity research analysts.
Fees and Expenses: 79% annually or $7.90 per $1 000 invested in
the fund.
Ticker Symbol: PUR YX
Putnam Utilities Growth and Income Fund (Sector-Utilities)
This fund seeks capital growth and current income by investing mostly
in stocks and bonds of diverse companies in the utilities industries.
This fund concentrates its investments in one region or industry and
involves more risk than a fund that invests more broadly.
Fees and Expenses: 1.05% annually or $10.50 per $1 000 invested in
the fund.
Ticker Symbol: PUGIX
VALUE
The George Putnam Fund of Boston Y (Balanced)
This fund seeks a balance of capital growth and current income by
investing in a well-diversified portfolio composed mostly of stocks and
corporate and u.S. government bonds.
Fees and Expenses: 71 % annually or $7.10 per $1 000 invested in
the fund.
Ticker Symbol: PGEYX
Putnam Classic Equity Fund Y (Large-Cap Value)
This fund seeks capital growth, with current income as a secondary
objective, by investing mainly in stocks of companies that offer the
potential for growth.
Fees and Expenses: 72% annually or $7.20 per $1 000 invested in
the fund.
Ticker Symbol: No ticker symbol.
56 Idaho Power Company
ESP (Rev. 1/03)
Putnam Convertible Income-Growth Trust Y (Convertibles)
This fund seeks current income and capital appreciation by investing
mainly in convertible securities, which have features similar to both
bonds and stocks, offering the potential for both regular income and
growth in value over time. The lower credit ratings of high-yield bonds
in the portfolio reflect a greater possibility that adverse changes in the
economy or poor performance by the issuers of these bonds may affect
the issuer s ability to pay principal and interest.
Fees and Expenses: 0.76% annually or $7.60 per $1 000 invested in
the fund.
Ticker Symbol: PCGYX
Putnam Equity Income Fund Y (Large-Cap Value)
This fund seeks current income, with capital growth as a secondary
goal, by investing mainly in stocks that have the potential to
consistently pay above-average dividends as well as the potential to
grow in value over time.
Fees and Expenses: 0.72% annually or $7.20 per $1 000 invested in
the fund.
Ticker Symbol: PEIYX
Putnam New Value Fund Y (Multi-Cap Value)
This fund seeks long-term capital appreciation by investing mainly in
out-of-favor and undervalued stocks that offer potential for capital
appreciation. The fund invests all or a portion of its assets in small to
midsize companies. Such investments increase the risk of greater price
fluctuations.
Fees and Expenses: 0.86% annually or $8.60 per $1 000 invested in
the fund.
Ticker Symbol: PYNVX
Idaho Power Company
Employee Handbook
FIXED INCOME
Putnam American Government Income Fund Y (Fixed-Income-
Government)
This fund seeks high current income, with capital preservation as a
secondary goal, by investing mostly in u.S. government securities
including Treasury bills, notes, and bonds, and agency-issued
mortgage-backed securities. While the u.S. government backing of
individual securities does not ensure your principal , which will
fluctuate, it does guarantee that the fund's government-backed
holdings will make timely payments of interest and principal.
Mortgage-backed securities in the portfolio may be subject to
prepayment risk.
Fees and Expenses: 0.74% annually or $7.40 per $1 000 invested in
the fund.
Ticker Symbol: No ticker symbol.
Putnam Diversified Income Trust Y (Fixed-Income-Multisector)
This fund seeks high current income consistent with capital
preservation by investing in a combination of u.S. government and
other investment-grade bonds, foreign bonds, and higher-yielding,
lower-rated corporate bonds. International investments are subject to
certain risks, such as currency fluctuations, economic instability, and
political developments. While the U.S. government backing of
individual securities does not insure your principal, which will
fluctuate, it does guarantee that the fund's government-backed
holdings will make timely payments of interest and principal.
Mortgage-backed securities in the portfolio may be subject to
prepayment risk. The lower credit ratings of high-yield bonds reflect a
greater possibility that adverse changes in the economy or poor
performance by the issuers of these bonds will affect the fund's ability
to pay principal and interest.
Fees and Expenses: 0.70% annually or $7.00 per $1 000 invested in
the fund.
Ticker Symbol: PDVYX
58 Idaho Power Company
ESP (Rev. 1/03)
Putnam Global Governmental Income Trust (Fixed-Income-Global)
This fund seeks high current income by investing mainly in higher-
rated government bonds from issuers located around the globe, with
additional investments in lower-rated government and corporate bonds.
International investing involves certain risks, such as currency
fluctuations, economic instability, and political developments. Any
government backing only guarantees that the fund's government-
backed holdings will make timely payments of interest and principal.
Mortgage-backed securities may be subject to prepayment risk.
Fees and Expenses: 1.24% annually or $12.40 per $1 000 invested in
the fund.
Ticker Symbol: PGGIX
Putnam High-Yield Trust (Fixed-Income-High-Yield)
This fund seeks high current income, with capital growth as a
secondary goal, by investing mainly in higher-yielding lower-rated
corporate bonds in a range of industries. The lower credit ratings of
high-yield bonds reflect a greater possibility that adverse changes in
the economy or poor performance by the issuers of these bonds may
affect the issuer s ability to pay principal and interest.
Fees and Expenses: 0.93% annually or $9.30 per $1 000 invested in
the fund.
Ticker Symbol: No ticker symbol.
Putnam Income Fund Y (Fixed-Income Core)
This fund seeks current income consistent with prudent risk by
investing mainly in a variety of bonds with an emphasis on
government bonds and corporate bonds from creditworthy companies.
Fees and Expenses: 0.70% annually or $7.00 per $1 000 invested inthe fund.
Ticker Symbol: PNCYX
Idaho Power Company
Employee Handbook
Core Plus Funds Performance Summary as of
September 30, 2002
Year-to-Date 1 Year 3 Years 5 Years
Core Plus Fund 11/30/2002 Annualized Annualized Annualized
GROWTH
Putnam Growth Opportunities Y 24.32%24.39%23.10%39%
Putnam Health Sciences Tr Y 18.30%21.23%40%63%
Putnam Inti New Opportunities 11.32%12.68%16.96%04%
Putnam New Opportunities Y 24.95%21.12%20.20%33%
Putnam Vista Fund Y 25.17%17.26%15.71%99%
Putnam Voyager Fund II Y 22.75%16.61%21.33%96%
BLEND
Putnam Capital Appreciation 19.34%17.98%11.11%40%
Putnam Capital Opportunities Y 20.62%12.12%05%N/A
Putnam Europe Growth Fund 16.30%21.23%13.46%47%
Putnam Global Natural
Resources 96%77%62%43%
Putnam Global Equity Fund Y 12.89%14.59%50%24%
Putnam International Voyager Y 12.02%1.84%67%12%
Putnam Research Fund Y 17.05%19.44%12.07%18%
Putnam Utilities Growth & Inc 24.59%32.23%14.47%33%
VALUE
George Putnam Fund of Boston
77%96%42%52%
Putnam Classic Equity Fund Y 15.25%20.88%69%07%
Putnam Conv Income-Growth Y 90%60%39%30%
Putnam Equity Income Fund Y 34%15.31%21%93%
Putnam New Value Fund Y 12.27%16.29%12%65%
INCOME
Putnam American Gov Income Y 73%48%15%73%
Putnam Diversified Income Tr Y 36%76%83%53%
Putnam Global Income Trust 11.94%81%81%84%
Putnam High Yield Trust Y 47%50%2.46%21 %
Putnam Income Fund Y 70%71%70%33%
Idaho Power Company
ESP (Rev. 1/03)
Appendix C-Brokerage Gateway
Brokerage Gateway, a self-directed brokerage account feature, is
available to ESP participants who desire more investment diversity in
tailoring a portfolio to their individual investment needs. Through
Brokerage Gateway, you can choose from thousands of investments
with varying degrees of risk/reward potential outside the ESP's Core
and Core Plus Fund lineups in which to invest a portion of your
account, such as:
Additional mutual funds.
Major exchange-listed stocks.
0 OTC securities.
Corporate bonds.
0 U.S. Treasury notes.
Certificates of deposit.
0 Mortgage-backed securities.
Idaho Power Company is able to offer Brokerage Gateway in the ESP
due to an alliance between Putnam Investments and Harrisdirect
member of the Harris family of wealth management services. This
investment feature supplements the many convenient and flexible
benefits you can enjoy as an ESP participant.
You are encouraged to carefully review the following questions and
answers to learn more about Brokerage Gateway and to understand
how it may affect your ESP account if you choose to take advantage of
this added feature. Please note that there are fees as part of using this
optional service and that Brokerage Gateway may not be appropriate
for everyone.
If you have any questions after reviewing this information, please call
800-685-6474 to speak with a Putnam customer service
representative between 6:00 a.m. and 8:00 p.m. Mountain Time, any
business day.
Idaho Power Company
Employee Handbook
Who is eligible for Brokerage Gateway?
If you have an ESP account balance of at least $2 000, you are eligible
to participate in Brokerage Gateway. Your ESP account includes your
Deferred (before tax), Savings (after tax) Match, and Rollover
Features, as applicable.
How do you establish a Brokerage Gateway account?
To establish a Brokerage Gateway account, you must speak with a
Putnam customer service representative. Brokerage Gateway accounts
cannot be set up online or by fax requests. Simply call 1-800-685-6474
between 6:00 a.m. and 8:00 p.m. Mountain Time, on any business day.
The representative will ask you a series of questions, complete an
application for you, and submit it to Harrisdirect. There is nothing for
you to sign.
Harrisdirect will establish your account within two business days
following your request and will send you a welcome kit within 7-
business days. With the welcome kit, you will receive a brokerage
identification number (BIN), also known as your Harrisdirect account
number, which you will need along with your social security number
to place trade orders by telephone. Your BIN cannot be changed.
If you elect to place orders for trades through Harrisdirect via the
Internet, you will be asked to select a User ill as part of the application
process. After your application has been submitted Harrisdirect will
send you an E-mail confirmation that includes your BIN, your User ill
and a Harris-assigned password. You will need only your User ill and
password to place trade orders using the Internet. You do not need
your BIN for Internet trade orders. However, your BIN will be
displayed on statements and other correspondence you receive from
Harrisdirect.
You can change your password at any time through Harrisdirect
Website at www.hanisdirect.comlputnam.htm,or through TradeTalk
Harrisdirect automated voice response system, at 1-888-999-7236.
For information about how to change your User ill, please call a
Harrisdirect's Investor Services Representative at 1-888-295-1014.
Representatives are available Monday through Friday between 5:00
m. and 11 :00 p.m. Mountain Time, and on weekends and holidays
between 6:00 a.m. and 8:00 p.m. Mountain Time.
62 Idaho Power Company
ESP (Rev. 1/03)
Can you use your ESP PIN as your Brokerage Gateway
password?
Brokerage Gateway passwords are required to be six to eight digits
long. Your ESP PIN is four digits. You can change your Brokerage
Gateway password to be similar to your ESP PIN, understanding that
extra digits will be required. Keep in mind that changing your ESP PIN
with Putnam does not affect your Brokerage Gateway password and
Vice versa.
Please note that you will need your Harrisdirect User ill , password
and possibly your BIN and social security number for all Brokerage
Gateway trade orders that you request through Harrisdirect. You will
continue to use your ESP PIN for all other ESP transactions you
request through Putnam.
What fees apply to your Brokerage Gateway account?
Putnam charges a $100 annual account fee ($25 dollars per quarter)
that is deducted equally from each of your Core and Core Plus
elections once you establish a Brokerage Gateway account. This $25
quarterly fee will appear on your ESP statement if you had a Brokerage
Gateway balance at any time during that quarter.
Some Harrisdirect fees- will apply once you start placing trading orders
through Brokerage Gateway. These fees are not deducted equally from
your ESP account investment elections, but are deducted instead from
your Brokerage Gateway account as described below. Additional
Harrisdirect fees may apply, depending on the types of securities you
purchase. Please review your Harrisdirect welcome kit for more
details.
Investors who use the Internet to access their Harrisdirect account
will incur a transaction fee of $20 for trades up to 1 000 shares and
$0.02 per share thereafter.
Investors who do not use the Internet to access their Harrisdirect
account will incur a transaction fee of $40.00 for trades up to 1 000
shares and $0.02 per share thereafter.
The Harrisdirect fee applies to the purchase or redemption of any
available security. You cannot pay the Harrisdirect fee from funds
outside your Harrisdirect account. Generally, the fee is added to the
purchase or netted from the proceeds of any available security.
Idaho Power Company
Employee Handbook
No Harrisdirect fees will be deducted from your ESP account and no
Putnam fees will be deducted from your Harrisdirect account.
Accessing Brokerage Gateway
How do you fund your Brokerage Gateway account?
Initial Funding of Your Brokerage Gateway Account
Once your account is established, you must fund (transfer money into)
your Brokerage Gateway account before you can begin placing trade
orders. To fund your Brokerage Gateway account, you must make an
initial minimum transfer of $1 000 from your ESP account to your
Brokerage Gateway account. Please remember that 50% of your
account balance must always remain in the Core and Core Plus funds
of the ESP at the time of each transfer. You can fund your Brokerage
Gateway account in any of the following ways:
0 By calling the ESP's automated VRU at 1-800-685-6474, 24 hours
a day, 7 days a week
0 By logging on to the ESP Website at www.ibenefitcenter.com
24 hours a day, 7 days a week
0 By speaking with a Putnam customer service representative
between 6:00 a.m. and 8:00 p.m. Mountain Time, any business day
rn= Please remember that your request must be placed before
2:00 p.m. Mountain Time, any business day, to
processed on that day. If your transfer involves IDA CORP
Inc. Common Stock, your request must be placed before
:30 p.m. Mountain Time, and Putnam will attempt to sell
the stock before the market closes and process your
request on that day. Transfer requests that cannot be
completed the same day before the market closes,
including requests made after 2:00 p.m. Mountain Time, will
be processed the next business day.
Subsequent Funding of Your Brokerage Gateway Account
You may transfer money from your ESP account to your Brokerage
Gateway account as often as you wish. Although there is no required
minimum transfer amount for subsequent funding of your Brokerage
Gateway account (after the minimum $1 000 initial transfer
requirement), you must always maintain at least 50% of your
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account balance in the Core and Core Plus Funds of the ESP at
the time of each transfer.
Where is your money invested when you fund
your Brokerage Gateway account?
Each time you fund your Brokerage Gateway account, your money will
automatically be invested in a Putnam Money Market Fund-SDB
account (self-directed brokerage) until you instruct Harrisdirect
invest those dollars among any of the available securities in Brokerage
Gateway.
Important: The balance that you maintain in your Putnam Money
Market Fund-SDB account (as part of your overall Brokerage Gateway
account) will be tracked separately from your ESP account balances.
The Putnam Money Market Fund-SDB fund account will only be used
for trading through Harrisdirect. Money cannot be transferred directly
from your ESP investments to Harrisdirect to purchase Brokerage
Gateway securities.
You can always transfer money from your Putnam Money Market
Fund-SDB account back to your ESP account, provided that you
maintain enough money in your Brokerage Gateway account to cover
any trade orders you have placed.
Putnam will provide you with confirmation statements for transfers
from your ESP account to your Putnam Money Market Fund-SDB
account and vice versa. Harrisdirect will provide you with
confirmation statements for activity in your Brokerage Gateway
account.
How soon is your Brokerage Gateway account funded after
you place a transfer request from your ESP account?
Requests for investment transfers from your ESP account to the
Putnam Money Market Fund-SDB account must be placed
before 2:00 p.m. Mountain Time (1:30 p.m. for IDACORP, Inc.
Common Stock), any business day, to be processed that same day (as
described earlier). This date is also known as the "trade date.
Requests placed after 2:00 p.m. Mountain Time, any business day, will
be processed the next business day.
ESP investment balances transferred to your Putnam Money Market
Fund-SDB account will not be available for Brokerage Gateway
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securities trade orders until the investment transfer has settled (i.
after the requested shares have been sold and the proceeds have been
used to purchase Putnam Money Market Fund-SDB shares). This date
is also known as the "settlement date." The settlement date is generally
one business day after the initial trade from your ESP account.
Exception: Transfers from IDACORP, Inc. Common Stock will
generally settle three business days after the trade date.
It is important to keep these settlement times in mind to ensure you
have a sufficient Putnam Money Market Fund - SDB account balance
before placing Brokerage Gateway trading order requests.
Can you contribute money directly to your Brokerage
Gateway account?
No. You are not permitted to make direct contributions to your
Brokerage Gateway account. Your Brokerage Gateway account may
only be funded from money in your ESP account. Direct rollover
contributions (other than rollover contributions invested in the ESP),
after-tax contributions outside of the ESP, and transfers from another
qualified plan directly to the Brokerage Gateway account areprohibited.
Placing Trade Orders
How do you place orders for trades through Harrisdirect?
Once you have funded your Brokerage Gateway account, you have
several ways to place trade orders with Harrisdirect. You do not place
trades directly; Harrisdirect executes all trades. You may need your
social security number and BIN, or User ill and password, to place a
trade order. Your ESP PIN will also be needed if you access
Harrisdirect through Putnam.
By telephone (BIN and social security number required; ESP PIN if
accessed via Putnam)
You can place trade orders by calling the ESP's toll-free number at
800-685-6474. Once you are connected with Putnam, press 6 to
transfer to a Harrisdirect Investor Services Representative. Harrisdirect
Investor Services Representatives are available to accept trade orders
Monday through Friday between 5 :00 a.m. and 11 :00 p.m. Mountain
Time and on weekends and holidays between 6:00 a.m. and 8:00 p.
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ESP (Rev. 1/03)
Mountain Time. You may also call Harrisdirect at 1-888-295-1014
during these hours.
Telephone trade orders may also be requested 24 hours a day, 7 days a
week, through TradeTalk Harris Harrisdirect's automated voice
response system, at 1-888-999-7236.
Online (User ID and password required; ESP PIN if accessed via
Putnam)
If you elected to place trade orders online when you initially set up
your Brokerage Gateway account, you may also access your account
and place trade orders 24 hours a day, 7 days a week, by logging on to
the ESP Websiteat www.ibenefitcenter.com. After logging on, click
the "My Accounts" tab and then click the link to the Harrisdirect
Website. You may also place orders for online trades with Harrisdirect
directly through its Website at www.harrisdirect.comI1Jutnam.htm.
course, trades are placed only during market hours.
You can request more than one trade per day, provided you have
sufficient funds in your Putnam Money Market Fund-SDB account to
cover trade order requests.
Are any investments restricted through Brokerage Gateway?
The following investments are ineligible for purchase through
Brokerage Gateway:
Tax-exempt securities
Foreign securities
Futures
Limited partnerships (other than publicly traded limited
partnerships)
Currencies
Commodities
Precious metals
Options
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Unit investment trusts
Margin trading
Short sales
Stocks not listed on the New York Stock Exchange, American
Stock Exchange, or NASDAQ Stock Exchange (this effectively
prohibits "bulletin board" issues
, "
pink sheet" issues , and stocks
traded on foreign exchanges)
0 Non-investment grade bonds
0 IDACORP, Inc. Common Stock and Preferred Stocks
rn=You may only purchase shares of IDA CORP, Inc.
Common Stock through the Core Fund option. Purchasing
shares of IDA CORP, Inc. Common Stock through the Core
Fund offers you lower transaction fees than you would
incur even if you could purchase shares through
Brokerage Gateway.
How long does it take Harrisdirect to execute a trade?
Orders that are placed and accepted during trading hours (7:00 a.m. to
1:30 p.m. Mountain Time, any business day) will be sent to the
appropriate exchange or market for execution the same day. Those
orders placed during nontrading hours will be sent for execution at the
opening of the next trading day.
All trade order requests you place that are executed for your account
must be settled on the settlement date. The settlement date is the day
on which payment for securities bought or certificates for securities
sold must be in your account. Different types of securities have
different settlement dates. Please consult the Harrisdirect welcome kit
for these dates.
How can you track the status of a trade order?
Every order you place with Harrisdirect will be assigned a trade
reference number confirming that your order has been received. To
find out if a trade is pending, open, or executed, you can go to an
online order status screen where you will be told in real time where
your order stands. You may also call a Harrisdirect Investor Services
Representative for that information. Once the order is executed, you
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will receive an immediate trade notification online if you have elected
to place trade orders using the Internet. If you are not using the Internet
to place trade orders , you will receive a confirmation by regular mail.
What if you have insufficient funds in your account to cover a
trade order?
It is your responsibility to maintain a sufficient balance in your Putnam
Money Market Fund-SDB account to pay for transactions. If for any
reason you do not have a sufficient balance in your Putnam Money
Market Fund-SDB account to pay for a trade order, assets in your ESP
account will automatically be liquidated to pay for the trade order as
needed. If the funds in your ESP account are insufficient, securities in
your Brokerage Gateway account will automatically be liquidated to
pay for the trade order as needed. The appropriate Harrisdirect fees
will apply and you will be responsible for any losses, expenses, or
commission fees associated with the liquidation.
Account Statements and Features
How often is your Brokerage Gateway account valued?
The market value of your Brokerage Gateway account will be updated
by Harrisdirect and transmitted to Putnam on a daily basis. This total
value is included in your total. account balance that is voiced by the
ESP's VRU displayed online at www.ibenefitcenter.com, and can be
obtained by speaking with a Putnam customer service representative.
In addition Harrisdirect will furnish a statement of your Brokerage
Gateway account on a monthly basis when there is activity (such as a
trade, distribution, or other transaction) and on a quarterly basis when
there is no activity.
Will your Brokerage Gateway account balance be reflected on
your ESP statement?
The total value of your Brokerage Gateway account will be listed on
your ESP statement provided by Putnam, although your individual
holdings will not be itemized. Your ESP statement will separately
report information about your Putnam Money Market Fund-SDB
account and for your Harrisdirect Securities Account " which will
include the collective value of your Brokerage Gateway holdings.
Specific information about your individual Brokerage Gateway
holdings will be itemized on your Harrisdirect statement.
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In addition, because Putnam receives daily updates of the unrealized
earnings on your Brokerage Gateway account, that history is
incorporated in the personalized rate of return reported on your ESP
statement and through the ESP Website at www.ibenefitcenter.com
The account balance on your Harrisdirect statements may not always
match the balance shown on your Putnam ESP statement due to
differing statement periods, in-transit transfers between your ESP
account and your Brokerage Gateway account, or differing settlement
dates for transactions.
Harrisdirect provides all self-directed brokerage services. For more
information about any mutual funds available through Brokerage
Gateway, including charges and expenses associated with individual
mutual funds, please contact Harrisdirect at 1-888-295-1014 for a
prospectus. Read each prospectus carefully before making any
investment decisions.
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