COC IDA050808.pdf

Please see page 5 for rating definitions, important disclosures and required analyst certifications.
WCM does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest
that could affect the objectivity of the report and investors should consider this report as only a single factor in making their investment decision.

A publication of
WACHOVIA CAPITAL MARKETS, LLC

Equity Research
IDACORP, Inc.
IDA: Lowering 2008 EPS Estimate To Reflect Hydro
Regulatory Developments Encouraging

• IDA reported Q1 2008 EPS of $0.48, below our estimate of $0.66 and consensus
of $0.61 and vs. $0.56 in the year-ago period. Lower earnings were primarily due
to higher supply costs caused by lower hydro output. Partially offsetting this drag
were higher retail sales, which benefited from both colder weather and customer
growth, and increased revenue related to IDA’s recent rate increase.
• ’08 Estimate Lowered on Poor Hydro Outlook. IDA lowered its hydro
generation forecast to 6-8 million megawatt hours (MWh) from 7-9 MWh. This
compares to 6.2 million MWh last year and normal production around 8.5 million
MWh. In light of the deteriorating hydro outlook, we are lowering our 2008E EPS
to $2.10 from $2.20. Our 2009E EPS remains $2.30.
• Positive Momentum on the Regulatory Front. As part of a recent settlement,
IDA and the Staff of the IPUC agreed to conduct workshops on a forecasted test
year and the load growth adjustment mechanism. As a result of a 3/12 workshop,
the parties resolved the test year issue. Essentially, the Staff expressed support for
the use of forecasted data for a 2008 test year (this is not a “forward” looking test
year). IDA plans to file a general rate case in the next few months with new rates
effective in early ’09. A workshop to address the LGAR is expected to occur later
in '08. Additionally, on 4/28 the OPUC approved a settlement establishing a power
cost adjustment mechanism in Oregon. The PCAM will mitigate IDA’s exposure
to excess power supply costs in Oregon. While only roughly 5% of IDA’s
operations are in Oregon, the lack of a PCAM has had a negative EPS impact.
• Rate Base Growth Opportunities. IDA is pursuing opportunities to invest in
regulated transmission and generation. The Gateway West Project, two 500 kV
lines that IDA is exploring with PacifiCorp, represents an $800-1,200 million
opportunity in 2012-14. The project has been submitted for review to the Western
Electricity Coordinating Council in conjunction with a regional planning report.
IDA is also participating in technical studies with neighboring utilities for another
500 kV line that could be in-service in 2012. On the generation front, IDA plans to
bid a combined cycle unit into its 2012 baseload RFP as a self-build proposal.

Valuation Range: $31 to $33
We value IDA under P/E multiple and dividend discount analysis, which indicate a 12-
18 month valuation range of $31-33 per share. We apply a P/E multiple of 13.5X (a
modest discount to the Regulated peer group to reflect Idaho's below average
regulatory environment) to our estimated 2010 EPS range of $2.40-2.60 and discount
back the resulting share price by one year to derive a 12-18 month share price of
approximately $31. Risk to our valuation analysis include project delays or
cancellations and consistently below average hydroelectric conditions.

Investment Thesis:
We rate shares Market Perform. IDA's EPS growth outlook is strong driven by a
likely material increase in regulated infrastructure, which is needed to accommodate
Idaho's fast-growing population. However, while it appears to be improving, Idaho's
regulatory environment continues to be a concern.

Market Perform
Sector: Regulated Electric Utilities, Market
Weight
May 8, 2008
Earnings Estimate Revised Down

2007A 2008E 2009E
EPS Curr. Prior Curr. Prior
Q1 (Mar.) $0.56 $0.48 A 0.66 NE
Q2 (June) 0.41 0.48 NC NE
Q3 (Sep.) 0.65 0.78 0.77 NE
Q4 (Dec.) 0.23 0.36 0.29 NE
FY $1.86 $2.10 2.20 $2.30 NC
CY $1.86 $2.10 $2.30
FY P/E 16.8x 14.9x 13.6x
Rev.(MM) $879.4 $929.4 $980.7
Source: Company Data, Wachovia Capital Markets, LLC estimates, and Reuters NA = Not Available, NC = No Change, NE = No Estimate, NM = Not Meaningful

Ticker IDA
Price (05/08/2008) $31.31
52-Week Range: $28-37
Shares Outstanding: (MM) 45.0
Market Cap.: (MM) $1,409.0
S&P 500: 1,397.68
Dividend/Yield: $1.20/3.8%
LT Debt: (MM) $1,155.3
LT Debt/Total Cap.: 44.0%
ROE: 8.0%
3-5 Yr. Est. Growth Rate: 7.0%
CY 2008 Est. P/E-to-Growth: 2.1x
Last Reporting Date: 05/08/2008
Before Open
Source: Company Data, Wachovia Capital Markets, LLC estimates, and Reuters

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

WACHOVIA CAPITAL MARKETS, LLC
Utilities EQUITY RESEARCH DEPARTMENT

2

Company Description:
IDACORP (IDA) is the holding company for Idaho Power Company (IPC), a regulated electric utility serving
over 475,000 customers in southern Idaho, including Boise and surrounding areas, and eastern Oregon. In
addition, IDACORP Financial Services (IFS), a non-utility business, invests in affordable housing tax credits.

WACHOVIA CAPITAL MARKETS, LLC
IDACORP, Inc. EQUITY RESEARCH DEPARTMENT

3

(
i
n

t
h
o
u
s
a
n
d
s

e
x
c
e
p
t

p
e
r

s
h
a
r
e

d
a
t
a
)

2
0
0
5

2
0
0
6

2
0
0
7

2
0
0
8
E

2
0
0
9
E

2
0
1
0
E

2
0
1
1
E

2
0
1
2
E

2
0
1
3
E

2
0
1
4
E

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

$
8
4
2
,
8
6
4

$
9
2
6
,
2
9
1

$
8
7
9
,
3
9
4

$
9
2
9
,
4
4
2

$
9
8
0
,
6
5
1

$
1
,
0
4
7
,
5
3
4
$
1
,
1
2
5
,
4
4
1

$
1
,
2
4
2
,
3
8
6

$
1
,
33
2
,
8
8
6

$
1
,
4
0
3
,
9
5
6

$
1
,
4
5
3
,
6
1
4
Ex
p
e
n
s
e
s

P
u
r
c
h
a
s
e
d

P
o
w
e
r
*

2
2
2
,
3
1
0

2
8
3
,
4
4
0

2
8
9
,
4
8
4

2
9
9
,
0
01

2
9
5
,
5
0
9

3
0
2
,
2
0
4

3
0
9
,
0
9
3

3
1
6
,
18
0

3
2
3
,
4
7
1

3
3
0
,
9
7
2

3
3
8
,
6
9
0

F
u
e
l

E
x
p
e
n
s
e

1
0
3
,
1
6
4

1
1
5
,
0
1
8

1
3
4
,
3
2
2
0

0

0

0

0

0

0

0

P
o
w
e
r

C
o
s
t

A
d
j
u
s
t
m
e
n
t

(
2
,
9
9
5
)

(
2
9
,
5
2
6
)

(
1
2
1
,
1
3
1
)

0

0

0

0

0

0

0

0

O
t
h
e
r

O
&
M

2
4
2
,
3
8
1

2
6
4
,
8
1
0

2
8
6
,
5
1
0

2
9
6
,
4
2
4
30
4
,
5
6
1

3
1
2
,
9
2
9

3
2
1
,
5
3
3

3
3
0
,
38
1

3
3
9
,
4
8
0

3
4
8
,
8
3
7

3
5
8
,
4
5
9

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

1
0
1
,
4
8
5

9
9
,
8
2
4

1
0
3
,
0
7
2

1
1
8
,
1
3
1
12
7
,
2
8
1

1
3
8
,
4
8
2

1
5
8
,
1
3
0

1
8
2
,
13
5

2
0
0
,
2
8
1

2
1
5
,
3
3
6

2
2
6
,
7
5
7

O
t
h
e
r

T
a
x
e
s

2
0
,
8
5
6

1
8
,
6
6
1

1
7
,
6
3
4

1
7
,
9
8
7
1
8
,
3
4
6

1
8
,
7
1
3

1
9
,
0
8
8
19
,
4
6
9

1
9
,
8
5
9

2
0
,
2
5
6

2
0
,
6
6
1

O
t
h
e
r

2
,
1
8
2

1
2
,
6
1
7

1
7
,
4
2
5

2
0
,
1
7
9

2
0
,
17
9

2
0
,
1
7
9

2
0
,
1
7
9

2
0
,
17
9

2
0
,
1
7
9

2
0
,
1
7
9

2
0
,
1
7
9
To
t
a
l

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

$
1
5
3
,
4
8
1

$
1
6
1
,
4
4
7

$
1
5
2
,
0
7
8

$
1
7
7
,
7
2
1

$
2
1
4
,
7
7
4

$
25
5
,
0
2
7

$
2
9
7
,
4
1
8

$
3
7
4
,
0
4
1
$4
2
9
,
6
1
6

$
4
6
8
,
3
7
6

$
4
8
8
,
8
6
7
Ot
h
e
r

I
n
c
o
m
e

8
,
4
0
2

6
,
7
2
3

7
,
2
6
6

5
,
4
7
4
5,
4
7
4

5
,
4
7
4

5
,
4
7
4

5
,
4
7
4

5
,
4
7
4

5
,
4
7
4

5
,
4
7
4
In
t
e
r
e
s
t

E
x
p
e
n
s
e

5
9
,
7
2
9

6
0
,
9
7
5

6
3
,
3
4
1

6
3
,
2
2
6
67
,
8
7
4

7
5
,
5
5
3

9
2
,
0
0
3

1
1
3
,
27
6

1
2
7
,
7
4
4

1
3
7
,
6
2
5

1
4
3
,
3
0
5
In
c
o
m
e

T
a
x
e
s

1
7
,
6
1
0

1
5
,
3
7
7

1
3
,
7
3
1

2
4
,
7
8
9

4
5
,
42
6

6
0
,
1
3
0

7
2
,
2
4
7

9
5
,
8
3
3
1
1
1
,
8
6
5

1
2
3
,
1
2
8

1
2
8
,
9
0
4
Ta
x

R
a
t
e

1
9
%

1
4
%

1
5
%

2
2
%

3
1
%

3
4
%

3
5
%

3
7
%

3
7
%

3
7
%

3
7
%
Ea
r
n
i
n
g
s
In
c
o
m
e

f
r
o
m

C
o
n
t
i
n
u
i
n
g

O
p
e
r
a
t
i
o
n
s

$
8
4
,
5
4
4

$
9
1
,
8
1
8

$
8
2
,
2
7
2
$9
5
,
1
7
9

$
1
0
6
,
9
4
8

$
1
2
4
,
8
1
9

$
1
3
8
,
6
4
2

$
17
0
,
4
0
6

$
1
9
5
,
4
8
1

$
2
1
3
,
0
9
8

$
2
2
2
,
1
3
2
Di
s
c
o
n
t
i
n
u
e
d

O
p
e
r
a
t
i
o
n
s

2
2
,
0
5
5

(
7
,
3
2
8
)

(
6
7
)

0

0

0

0

0

0

0

0
Ne
t

I
n
c
o
m
e

$
6
2
,
4
8
9

$
9
9
,
1
4
6

$
8
2
,
3
3
9

$
9
5
,
1
7
9

$
1
0
6
,
9
4
8
$
1
2
4
,
8
1
9

$
1
3
8
,
6
4
2

$
1
7
0
,
4
0
6
$1
9
5
,
4
8
1

$
2
1
3
,
0
9
8

$
2
2
2
,
1
3
2
Av
g

D
i
l
u
t
e
d

S
h
a
r
e
s

O
u
t
s
t
a
n
d
i
n
g

4
2
,
3
6
2

4
2
,
8
7
4

4
4
,
2
91

4
5
,
4
1
0

4
6
,
4
1
1

4
7
,
9
3
0

5
2
,
2
8
9
5
7
,
9
2
6

6
1
,
1
0
6

6
2
,
7
7
8

6
2
,
4
9
1
EP
S

$
1
.
4
8

$
2
.
3
1

$
1
.
8
6

$
2
.
1
0

$
2
.
3
0

$
2.
6
0

$
2
.
6
5

$
2
.
9
4

$
3
.
2
0

$
3
.
3
9

$
3
.
5
5
No
n
-
R
e
c
u
r
r
i
n
g

(
0
.
3
9
)

0
.
4
8

0
.
0
0

0
.
0
0
0.0
0

0
.
0
0

0
.
0
0

0
.
0
0

0
.
0
0

0
.
0
0

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

E
P
S
*

$
1
.
8
7

$
1
.
8
3

$
1
.
8
6

$
2
.
1
0
$
2
.
3
0

$
2
.
6
0

$
2
.
6
5

$
2
.
9
4

$
3
.
2
0

$
3
.
3
9

$
3
.
5
5
Su
p
p
l
e
m
e
n
t
a
l

I
n
f
o
r
m
a
t
i
o
n

2
0
0
5

2
0
0
6

2
0
0
7

2
0
0
8
E

2
0
0
9
E

2
0
1
0
E

2
0
1
1
E

2
0
1
2
E

2
0
1
3
E

2
0
1
4
E

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

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

P
e
r

S
h
a
r
e

-

Y
E

R
a
t
e

$
1
.
2
0

$
1
.
2
0

$
1
.2
0

$
1
.
3
0

$
1
.
4
0

$
1
.
5
0

$
1
.
6
0

$
1
.
7
0

$
1
.
8
0

$
1
.
9
0

$
2
.
0
0
Di
v
i
d
e
n
d
s

P
a
i
d

P
e
r

S
h
a
r
e

1
.
2
0

1
.
2
0

1
.
2
0
1
.
3
0

1
.
4
0

1
.
5
0

1
.
6
0

1
.
7
0

1
.
8
0

1
.
9
0

2
.
0
0
Pa
y
o
u
t

R
a
t
i
o

6
4
%

6
6
%

6
5
%

6
2
%

6
1
%

5
8
%

6
0
%

5
8
%

5
6
%

5
6
%

5
6
%
St
a
t
i
s
t
i
c
s
EB
I
T
D
A

/

S
h
a
r
e

$
6
.
0
2

$
6
.
0
9

$
5
.
7
6

$
6
.
5
2

$
7.3
7

$
8
.
2
1

$
8
.
7
1

$
9
.
6
0

$
1
0
.
3
1

$
1
0
.
8
9

$
1
1
.
4
5
Ca
s
h

F
l
o
w

/

S
h
a
r
e

3
.
8
2

3
.
9
7

1
.
8
3

6
.4
6

5
.
4
8

5
.
9
1

5
.
9
1

6
.
1
7

6
.
4
4

6
.
6
7

7
.
5
0
Bo
o
k

V
a
l
u
e

/

S
h
a
r
e

(
y
e
a
r

e
n
d
)

2
4
.
0
4

2
5
.
5
3

2
6.
7
9

2
7
.
7
2

2
8
.
9
1

3
0
.
4
0

3
2
.
9
6

3
5
.
0
5

3
6
.
8
6

3
8
.
6
3

3
9
.
7
4
Av
e
r
a
g
e

B
o
o
k

V
a
l
u
e

/

S
h
a
r
e

2
3
.
9
6

2
4
.
7
8

2
6
.
16

2
7
.
2
6

2
8
.
3
1

2
9
.
6
5

3
1
.
6
8

3
4
.
0
0

3
5
.
9
6

3
7
.
7
5

3
9
.
1
8
RO
E

o
f

I
D
A
C
O
R
P

7
.
9
%

8
.
2
%

7
.
1
%

7
.
7
%
8
.
1
%

8
.
8
%

8
.
4
%

8
.
7
%

8
.
9
%

9
.
0
%

9
.
1
%
RO
E

o
f

I
d
a
h
o

P
o
w
e
r

C
o
m
p
a
n
7.
7
%

9
.
6
%

7
.
2
%

7
.
9
%

8
.
3
%

9
.
1%

9
.
0
%

9
.
2
%

9
.
4
%

9
.
5
%

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

"
P
u
r
c
h
a
s
e
d

P
o
w
e
r
"

l
i
n
e

i
t
e
m

i
n
c
l
u
d
e
s

e
s
t
i
m
a
t
e
d

f
u
e
l

a
n
d

P
C
A

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

E
P
S

e
x
c
l
u
d
e

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

i
t
e
m
s
.
So
u
r
c
e
s
:

W
a
c
h
o
v
i
a

C
a
p
i
t
a
l

M
a
r
k
e
t
s
,

L
L
C

e
s
t
i
m
a
t
e
s

a
n
d

c
o
m
p
a
n
y

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

M
o
d
e
l

WACHOVIA CAPITAL MARKETS, LLC
Utilities EQUITY RESEARCH DEPARTMENT

4

Ca
s
h

F
l
o
w

M
o
d
e
l

(
i
n

t
h
o
u
s
a
n
d
s
)

2
0
0
4

2
0
0
5

2
0
0
6

2
0
0
7

2
0
0
8
E

2
0
0
9
E

2
0
1
0
E

2
0
1
1
E

2
0
1
2
E

2
0
1
3
E

2
0
1
4
E

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

C
a
s
h

F
l
o
w
Ne
t

I
n
c
o
m
e

$
7
2
,
9
8
3

$
6
3
,
6
6
1

$
1
0
7
,
4
0
3

$
8
2
,
3
3
9

$
9
5
,
1
7
9

$
1
0
6
,
9
4
8

$
1
2
4
,
8
1
9

$
1
3
8
,
6
4
2

$
1
7
0
,
4
0
6

$
1
9
5
,
4
8
1

$
2
1
3
,
0
9
8

2
2
2
,
1
3
2

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

&

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

1
2
4
,
1
9
2

1
2
4
,
1
2
4

1
2
2
,
6
4
1

1
2
0
,
3
6
8

1
3
8
,
1
3
1

1
4
7
,
2
8
1

1
5
8
,
4
8
2

1
7
8
,
1
3
0

2
0
2
,
1
3
5

2
2
0
,
2
8
1

2
3
5
,
3
3
6

2
4
6
,
7
5
7

N
e
t

O
t
h
e
r

(
1
1
,
8
1
1
)

(
3
4
,
5
2
0
)

(
5
8
,
9
0
2
)

(
1
2
4
,
0
6
9
)

6
0
,
0
0
0

0

0

(
7
,
5
0
0
)

(
1
5
,
0
0
0
)

(
2
2
,
5
0
0
)

(
3
0
,
0
0
0
)

0

W
o
r
k
i
n
g

C
a
p
i
t
a
l

9
,
3
3
2

8
,
2
3
1

(
1
,
3
6
4
)

2
,
1
0
3

0

0

0

0

0

0

0

0
Ne
t

O
p
e
r
a
t
i
n
g

C
a
s
h

F
l
o
w

$
1
9
4
,
6
9
6

$
1
6
1
,
4
9
6

$
1
6
9
,
7
7
8

$
8
0
,
7
4
1

$
2
9
3
,
3
1
1

$
2
5
4
,
2
2
9

$
2
8
3
,
3
0
0

$
3
0
9
,
2
7
3

$
3
5
7
,
5
4
1

$
3
9
3
,
2
6
2

$
4
1
8
,
4
3
3

$
4
6
8
,
8
9
0
In
v
e
s
t
i
n
g

C
a
s
h

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

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

(
$
1
9
9
,
7
7
0
)

(
$
1
9
3
,
3
1
4
)

(
$
2
2
5
,
0
4
8
)

$
0

(
$
2
8
2
,
7
5
0
)

(
$
3
2
7
,
2
5
0
)

(
$
4
1
9
,
4
3
5
)

(
$
8
9
0
,
4
7
3
)

(
$
7
0
9
,
8
6
7
)

(
$
4
9
9
,
8
7
1
)

(
$
5
0
3
,
7
3
7
)
($
2
5
7
,
7
1
9
)
In
v
e
s
t
m
e
n
t
s

i
n

A
f
f
o
r
d
a
b
l
e

H
o
u
s
i
n
g

P
r
o
j
e
c
t
s

(
7
,
6
5
5
)

(
4
,
9
9
2
)

(
5
,
0
5
9
)

0

(
2
5
,
0
0
0
)

1
2
,
5
0
0

(
1
2
,
5
0
0
)

(
1
0
,
0
0
0
)

(
1
0
,
0
0
0
)

(
1
0
,
0
0
0
)

(
1
0
,
0
0
0
)

(
1
0
,
0
0
0
)
Pr
o
c
e
e
d
s

f
r
o
m

S
a
l
e

o
f

N
o
n
-
U
t
i
l
i
t
y

A
s
s
e
t
s

5
,
5
5
4

1
,
0
1
9

1
4
6

0

0

0

0

0

0

0

0

0
Oth
e
r

(
2
7
,
7
6
9
)

1
0
8
,
3
3
7

(
2
3
,
0
7
9
)

2
0
,
1
5
3

0

0

0

0

0

0

0

0
Ne
t

I
n
v
e
s
t
i
n
g

C
a
s
h

F
l
o
w
($
2
2
9
,
6
4
0
)

(
$
8
8
,
9
5
0
)

(
$
2
5
3
,
0
4
0
)

$
2
0
,
1
5
3

(
$
3
0
7
,
7
5
0
)

(
$
3
1
4
,
7
5
0
)

(
$
4
3
1
,
9
3
5
)

(
$
9
0
0
,
4
7
3
)

(
$
7
1
9
,
8
6
7
)

(
$
5
0
9
,
8
7
1
)

(
$
5
1
3
,
7
3
7
)

(
$
2
6
7
,
7
1
9
)
Fi
n
a
n
c
i
n
g

C
a
s
h

F
l
o
w
Is
s
u
a
n
c
e

o
f

L
T

D
e
b
t

$
1
0
6
,
4
4
2

$
6
4
,
9
9
2

$
1
1
6
,
3
0
0

$
2
4
0
,
0
0
0

$
7
5
,
0
0
0

$
1
8
5
,
0
0
0

$
1
4
5
,
0
0
0

$
4
8
5
,
0
0
0

$
3
6
5
,
0
0
0

$
2
0
0
,
0
0
0

$
1
5
0
,
0
0
0

$
2
5
,
0
0
0
Re
t
i
r
e
m
e
n
t

o
f

L
T

D
e
b
t

(
7
9
,
8
9
0
)

(
8
3
,
0
6
7
)

(
1
3
2
,
6
4
2
)

(
9
5
,
0
3
3
)

(
1
,
0
6
4
)

(
8
1
,
0
6
4
)

(
1
,
0
6
4
)

(
1
2
1
,
0
6
4
)

(
1
0
1
,
0
6
4
)

(
7
0
,
0
0
0
)

0

0
Re
t
i
r
e
m
e
n
t

o
f

P
r
e
f
e
r
r
e
d

S
t
o
c
k

o
f

I
D

P
o
w
e
r

(
5
2
,
3
5
1
)

0

0

0

0

0

0

0

0

0

0

0
Di
v
i
d
e
n
d
s

o
n

C
o
m
m
o
n

S
t
o
c
k

(
4
5
,
8
3
8
)

(
5
0
,
6
9
0
)

(
5
1
,
2
7
2
)

(
5
3
,
0
1
2
)

(
5
9
,
0
3
3
)

(
6
4
,
9
7
6
)

(
7
1
,
8
9
5
)

(
8
3
,
6
6
2
)

(
9
8
,
4
7
4
)

(
1
0
9
,
9
9
0
)

(
1
1
9
,
2
7
8
)

(
1
2
4
,
9
8
2
)
ST
D
e
b
t

(
5
8
,
2
5
0
)

2
3
,
8
3
0

6
8
,
9
0
0

5
7
,
4
4
5

(
3
0
,
0
0
0
)

0

0

0

0

0

0

0
Co
m
m
o
n

S
t
o
c
k

I
s
s
u
e
d

1
1
5
,
6
9
0

6
,
2
9
6

4
1
,
4
6
5

3
7
,
1
8
1

2
5
,
0
0
0

5
0
,
0
0
0

7
0
,
0
0
0

3
0
0
,
0
0
0

1
9
5
,
0
0
0

1
0
0
,
0
0
0

6
5
,
0
0
0

(
1
0
0
,
0
0
0
)
Ac
q
u
i
s
i
t
i
o
n

o
f

T
r
e
a
s
u
r
y

S
h
a
r
e
s

(
1
,
4
2
0
)

0

(
2
1
3
)

(
3
4
6
)

0

0

0

0

0

0

0

0
Oth
e
r

(
1
,
1
9
5
)

(
4
,
9
5
4
)

(
1
,
7
4
0
)

(
1
,
6
5
2
)

0

0

0

0

0

0

0

0
Ne
t

F
i
n
a
n
c
i
n
g

C
a
s
h

F
l
o
w
($
1
6
,
8
1
2
)

(
$
4
3
,
5
9
3
)

$
4
0
,
7
9
8

$
1
8
4
,
5
8
3

$
9
,
9
0
3

$
8
8
,
9
6
0

$
1
4
2
,
0
4
1

$
5
8
0
,
2
7
4

$
3
6
0
,
4
6
2

$
1
2
0
,
0
1
0

$
9
5
,
7
2
2

(
$
1
9
9
,
9
8
2
)
Ne
t

C
h
a
n
g
e

i
n

C
a
s
h

(
$
5
1
,
7
5
6
)

$
2
8
,
9
5
3

(
$
4
2
,
4
6
4
)

$
2
8
5
,
4
7
7

(
$
4
,
5
3
6
)

$
2
8
,
4
4
0

(
$
6
,
5
9
3
)

(
$
1
0
,
9
2
6
)

(
$
1
,
8
6
4
)

$
3
,
4
0
1

$
4
1
8

$
1
,
1
8
8
Ca
s
h

a
t

b
e
g
i
n
n
i
n
g

o
f

p
e
r
i
o
d

7
5
,
1
5
9

2
3
,
4
0
3

5
2
,
3
5
6

9
,
8
9
2

7
,
6
1
8

3
,
0
8
2

3
1
,
5
2
2

2
4
,
9
2
9

1
4
,
0
0
2

1
2
,
1
3
8

1
5
,
5
3
9

1
5
,
9
5
8
Ca
s
h

a
t

e
n
d

o
f

p
e
r
i
o
d

$
2
3
,
4
0
3

$
5
2
,
3
5
6

$
9
,
8
9
2

$
2
9
5
,
3
6
9

$
3
,
0
8
2

$
3
1
,
5
2
2

$
2
4
,
9
2
9

$
1
4
,
0
0
2

$
1
2
,
1
3
8

$
1
5
,
5
3
9

$
1
5
,
9
5
8

$
1
7
,
1
4
6
Ca
p
i
t
a
l

S
t
r
u
c
t
u
r
e

2
0
0
4

2
0
0
5

2
0
0
6

2
0
0
7

2
0
0
8
E

2
0
0
9
E

2
0
1
0
E

2
0
1
1
E

2
0
1
2
E

2
0
1
3
E

2
0
1
4
E

2
0
1
5
E
Co
m
m
o
n

E
q
u
i
t
y
$1
,
0
0
8
,
2
8
6

$
1
,
0
2
5
,
2
5
1

$
1
,
1
2
4
,
1
8
3

$
1
,
2
0
7
,
3
1
5

$
1
,
2
6
8
,
4
6
2

$
1
,
3
6
0
,
4
3
4

$
1
,
4
8
3
,
3
5
8

$
1
,
8
3
8
,
3
3
9

$
2
,
1
0
5
,
2
7
0

$
2
,
2
9
0
,
7
6
1

$
2
,
4
4
9
,
5
8
0

$
2
,
4
4
6
,
7
3
0
Lo
n
g
-
T
e
r
m

D
e
b
t
97
9
,
5
4
9

1
,
0
2
3
,
5
8
0

9
2
8
,
6
4
8

1
,
1
5
6
,
8
8
0

1
,
2
3
0
,
8
1
6

1
,
3
3
4
,
7
5
2

1
,
4
7
8
,
6
8
8

1
,
8
4
2
,
6
2
4

2
,
1
0
6
,
5
6
0

2
,
2
3
6
,
5
6
0

2
,
3
8
6
,
5
6
0

2
,
4
1
1
,
5
6
0
Sh
o
r
t
-
T
e
r
m

D
e
b
t
11
4
,
8
7
3
76
,
4
0
7
22
4
,
1
2
5
19
7
,
9
0
1
16
7
,
9
0
1
16
7
,
9
0
1
16
7
,
9
0
1
16
7
,
9
0
1
16
7
,
9
0
1
16
7
,
9
0
1
16
7
,
9
0
1
16
7
,
9
0
1
To
t
a
l

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

$
2
,
1
0
2
,
7
0
8

$
2
,
1
2
5
,
2
3
8

$
2
,
2
7
6
,
9
5
6

$
2
,
5
6
2
,
0
9
6

$
2
,
6
6
7
,
1
7
9

$
2
,
8
6
3
,
0
8
7

$
3
,
1
2
9
,
9
4
7

$
3
,
8
4
8
,
8
6
4

$
4
,
3
7
9
,
7
3
1

$
4
,
6
9
5
,
2
2
2

$
5
,
0
0
4
,
04
1

$
5
,
0
2
6
,
1
9
1
%
E
q
u
i
t
y
48

4
8

4
9

4
7

4
8

4
8

4
7

4
8

4
8

4
9

4
9

4
9
%
L
o
n
g
-
T
e
r
m

D
e
b
t
47

4
8

4
1

4
5

4
6

4
7

4
7

4
8

4
8

4
8

4
8

4
8
%
S
h
o
r
t
-
T
e
r
m

D
e
b
t
5
4

1
0

8

6

6

5

4

4

4

3

3
So
u
r
c
e
s
:

W
a
c
h
o
v
i
a

C
a
p
i
t
a
l

M
a
r
k
e
t
s
,

L
L
C

e
s
t
i
m
a
t
e
s

a
n
d

c
o
m
p
a
n
y

f
i
l
i
n
g
s

WACHOVIA CAPITAL MARKETS, LLC
IDACORP, Inc. EQUITY RESEARCH DEPARTMENT

5

Required Disclosures

$23.00
$24.00
$25.00
$26.00
$27.00
$28.00
$29.00
$30.00
$31.00
$32.00
$33.00
$34.00
$35.00
$36.00
$37.00
$38.00
$39.00
$40.00
$41.00
$42.00
$43.00
$44.00
$45.00
$46.00
5/3
/
0
5
5/3
1
/
0
5
6/2
8
/
0
5
7/2
6
/
0
5
8/2
3
/
0
5
9/2
0
/
0
5
10
/
1
8
/
0
5
11
/
1
5
/
0
5
12
/
1
3
/
0
5
1/1
0
/
0
6
2/7
/
0
6
3/7
/
0
6
4/4
/
0
6
5/2
/
0
6
5/3
0
/
0
6
6/2
7
/
0
6
7/2
5
/
0
6
8/2
2
/
0
6
9/1
9
/
0
6
10
/
1
7
/
0
6
11
/
1
4
/
0
6
12
/
1
2
/
0
6
1/9
/
0
7
2/6
/
0
7
3/6
/
0
7
4/3
/
0
7
5/1
/
0
7
5/2
9
/
0
7
6/2
6
/
0
7
7/2
4
/
0
7
8/2
1
/
0
7
9/1
8
/
0
7
10
/
1
6
/
0
7
11
/
1
3
/
0
7
12
/
1
1
/
0
7
1/8
/
0
8
2/5
/
0
8
3/4
/
0
8
4/1
/
0
8
4/2
9
/
0
8
Se
c
u
r
i
t
y

P
r
i
c
e

IDACORP, Inc. (IDA) 3-yr. Price PerformanceIDACORP, Inc. (IDA) 3-yr. Price Performance
Date
Date Publication Price ($) Rating Code Val. Rng. Low Val. Rng. High Close Price ($)
5/23/2005 Hamlin
‹ 5/23/2005 NA 2 25.00 27.00 27.76
z 6/27/2005 NA 2 28.00 30.00 30.00
„ 2/14/2006 Brothwell
z 5/12/2006 NA 2 30.00 32.00 33.50
z 8/10/2006 NA 2 35.00 38.00 36.93
z 1/19/2007 NA 2 34.00 37.00 37.22
dz 2/16/2007 NA 3 31.00 33.00 35.60
z 5/10/2007 NA 3 30.00 33.00 32.84
z 6/11/2007 NA 3 30.00 32.00 31.78
z 8/9/2007 NA 3 32.00 34.00 34.77
c 8/30/2007 32.29 2 32.00 34.00 32.52
z 11/1/2007 34.89 2 33.00 35.00 33.70
„ 11/14/2007 Kalton
z 11/14/2007 33.79 2 34.00 35.00 33.85
z 2/15/2008 32.04 2 31.00 33.00 31.46
Source: Wachovia Capital Markets, LLC estimates and Reuters data
Symbol Key Rating Code Key
d Rating Downgrade ‹ Initiation, Resumption, Drop or Suspend 1 Outperform/Buy SR Suspended
c Rating Upgrade „ Analyst Change 2 Market Perform/Hold NR Not Rated
z Valuation Range Change ˆ Split Adjustment 3 Underperform/Sell NE No Estimate

Additional Information Available Upon Request

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

ƒ Wachovia Capital Markets, LLC or its affiliates intends to seek or expects to receive compensation for investment banking services in the next
three months from IDACORP, Inc.
ƒ Wachovia Capital Markets, LLC or its affiliates received compensation for investment banking services from IDACORP, Inc. in the past 12
months.
WACHOVIA CAPITAL MARKETS, LLC
Utilities EQUITY RESEARCH DEPARTMENT

6

ƒ IDACORP, Inc. currently is, or during the 12-month period preceding the date of distribution of the research report was, a client of Wachovia
Capital Markets, LLC. Wachovia Capital Markets, LLC provided investment banking services to IDACORP, Inc.
ƒ IDACORP, Inc. currently is, or during the 12-month period preceding the date of distribution of the research report was, a client of Wachovia
Capital Markets, LLC. Wachovia Capital Markets, LLC provided nonsecurities services to IDACORP, Inc.
ƒ Wachovia Capital Markets, LLC received compensation for products or services other than investment banking services from IDACORP, Inc.
in the past 12 months.

Risk to our valuation analysis include project delays or cancellations and consistently below average hydroelectric conditions.

Wachovia Capital Markets, LLC does not compensate its research analysts based on specific investment banking transactions. WCM’s research
analysts receive compensation that is based upon and impacted by the overall profitability and revenue of the firm, which includes, but is not
limited to investment banking revenue.

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

As of: May 8, 2008
46% of companies covered by Wachovia Capital Markets, LLC
Equity Research are rated Outperform.
Wachovia Capital Markets, LLC has provided investment banking services
for 31% of its Equity Research Outperform-rated companies.
51% of companies covered by Wachovia Capital Markets, LLC
Equity Research are rated Market Perform.
Wachovia Capital Markets, LLC has provided investment banking services
for 24% of its Equity Research Market Perform-rated companies.
3% of companies covered by Wachovia Capital Markets, LLC
Equity Research are rated Underperform.
Wachovia Capital Markets, LLC has provided investment banking services
for 48% of its Equity Research Underperform-rated companies.

Important Disclosure for International Clients
The securities and related financial instruments described herein may not be eligible for sale in all jurisdictions or to certain
categories of investors. For certain non-U.S. institutional reader (including readers in the EEA), this report is distributed by
Wachovia Securities International Limited (“WSIL”). For the purposes of Section 21 of the UK Financial Services and Markets
Act 2000 (“the Act”), the content of this report has been approved by WSIL a regulated person under the Act. WSIL does not deal
with retail clients as defined in the Markets in Financial Instruments Directive 2007, therefore clients will automatically be deemed
to be a professional or an eligible counterparty. This research is not intended for, and should not be relied upon, by retail clients.

Important Information for Japanese Recipients
This material is distributed in Japan by Wachovia Securities (Japan) Co., Ltd., a foreign securities company registered with the
Financial Services Agency in Japan.
WACHOVIA CAPITAL MARKETS, LLC
IDACORP, Inc. EQUITY RESEARCH DEPARTMENT

7

Important Information for Australian Recipients
Wachovia Capital Markets, LLC (“WCM”) is exempt from the requirements to hold an Australian financial services license in
respect of the financial services it provides to wholesale clients in Australia. WCM is a registered broker-dealer registered with the
U.S. Securities and Exchange Commission, and a member of the New York Stock Exchange, the Financial Industry Regulatory
Authority, and the Securities Investor Protection Corp. WCM is regulated under U.S. laws which differ from Australian laws.
Any offer or documentation provided to you by WCM in the course of providing the financial services will be prepared in
accordance with the laws of the United States and not Australian laws.
Additional Disclosures
WCM is a U.S. broker-dealer registered with the U.S. Securities and Exchange Commission and a member of the New York Stock
Exchange, the Financial Industry Regulatory Authority and the Securities Investor Protection Corp. Wachovia Securities
International Limited is a U.K. incorporated investment firm authorized and regulated by the Financial Services Authority.
This report is for your information only and is not an offer to sell, or a solicitation of an offer to buy, the securities or instruments
named or described in this report. Interested parties are advised to contact the entity with which they deal, or the entity that
provided this report to them, if they desire further information. The information in this report has been obtained or derived from
sources believed by Wachovia Capital Markets, LLC, to be reliable, but Wachovia Capital Markets, LLC, does not represent that
this information is accurate or complete. Any opinions or estimates contained in this report represent the judgment of Wachovia
Capital Markets, LLC, at this time, and are subject to change without notice. For the purposes of the U.K. Financial Services
Authority's rules, this report constitutes impartial investment research. Each of Wachovia Capital Markets, LLC, and Wachovia
Securities International Limited is a separate legal entity and distinct from affiliated banks. Copyright © 2008 Wachovia Capital
Markets, LLC.

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