COC IDA071911.pdf

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

July 19, 2011

Equit Research
IDACORP, Inc.
IDA: Raising 12E & 13E EPS By 2-3%--Reiterate Outperform

• Summary. We have updated our model to better reflect the June 1 general rate
case (GRC) filing and July 1 Integrated Resource Plan (IRP). We are increasing
our ‘12E & ‘13E EPS to $3.05 & $3.10 from $2.95 & $3.05, respectively. We are
also raising our 12-18 month valuation range to $43-44 per share from $42-43
per share based on the revised EPS outlook and higher peer group median
multiples.
• Raising EPS Estimates. We are raising our ‘12E & ‘13E EPS by 2-3% each to
$3.05 & $3.10 to better reflect the assumptions included in Idaho Power’s 6/1
GRC filing, including a higher than expected rate base balance and modestly
higher assumed equity ratio. We also made minor adjustments to our capital
expenditure assumptions (slightly lower) and sales forecast (slightly higher)
based on Idaho Power’s recently filed 2011 IRP. Our 11E EPS remains $2.87,
consistent with company guidance of $2.80-2.95.
• EPS Assumptions. Our post-2011 EPS estimates are based on traditional rate
case parameters, though we continue to believe that innovative rate structures,
such as an extension of the current settlement, remain possible. Our ‘12E & ‘13E
EPS are based on average Idaho-jurisdictional rate bases of $2.6B and $2.9B
(include Langley Gulch in mid-2012), respectively, a 50.5% equity ratio and a
9.5% earned ROE in both years. By comparison, Idaho Power filed for a 13-
month 2011 average rate base of $2.4B (excludes Langley Gulch) based on 51.2%
equity ratio and 10.5% ROE. A 50 basis point change in the assumed earned
ROE has an approximate $0.13-0.15 EPS impact on our ‘12E & ‘13E EPS.
• IRP Filings Uneventful. The 2011 IRP did not reveal any meaningful changes
versus the previous IRP or our CapEx assumptions. In addition to the
completion of Langley Gulch, the permitting and construction (2014-2016) of
the Boardman to Hemingway transmission project appears to be the top priority.
Idaho Power also plans to continue permitting activities for the Gateway West
transmission plan - initial phases could come online 2015-2017.
• Reiterate Outperform. We are attracted to long-term growth trends in IDA’s
service territory and the company’s healthy balance sheet. In addition, we
consider the valuation to be reasonable as shares trade at discounts of 6%/1% on
our ‘12E/’13E EPS vs. the Small-Cap Regulated Electrics. Notably, we do not
consider our modeling assumptions to be particularly aggressive. Our
enthusiasm is somewhat tempered by regulatory risk as Idaho Power is
requesting a 10% rate increase and, separately, a below-average 3% dividend
yield.

Valuation Range: $43.00 to $44.00 from $42.00 to $43.00
We value IDA under P/E multiple (apply a 14.5X multiple to our 12E EPS of $3.05)
and dividend discount analyses. Risks to our valuation include project
delays/cancellations, negative regulatory developments and consistently below
average hydro conditions.

Investment Thesis:
We rate shares Outperform. We are attracted to IDA's increasingly constructive
regulatory environment, attractive service territory and strong rate base growth
potential.

Outperform

Sector: Regulated Electric Utilities
Market Weight

Earnings Estimates Revised Up

2010A 2011E 2012E
EPS Curr. Prior Curr. Prior
Q1 (Mar.) $0.34 $0.60 NC NE
Q2 (June) 0.82 0.55 0.67 NE
Q3 (Sep.) 1.39 1.28 1.22 NE
Q4 (Dec.) 0.41 0.44 0.38 NE
FY $2.95 $2.87 NC $3.05 2.95
CY $2.95 $2.87 $3.05
FY P/E 13.5x 13.9x 13.1x
Rev.(MM)$1,036 $1,070 $1,150
Source: Company Data, Wells Fargo Securities, LLC estimates, and Reuters NA = Not Available, NC = No Change, NE = No Estimate, NM = Not Meaningful V = Volatile, = Company is on the Priority Stock List

Ticker IDA
Price (07/19/2011) $39.83
52-Week Range: $34-41
Shares Outstanding: (MM) 49.4
Market Cap.: (MM) $1,967.6
S&P 500: 1,327.13
Avg. Daily Vol.: 203,091
Dividend/Yield: $1.20/3.0%
LT Debt: (MM) $1,487.3
LT Debt/Total Cap.: 47.7%
ROE: 10.0%
3-5 Yr. Est. Growth Rate: 4.0%
CY 2011 Est. P/E-to-Growth: 3.5x
Last Reporting Date: 05/05/2011
Before Open
Source: Company Data, Wells Fargo Securities, LLC estimates, and Reuters

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

WELLS FARGO SECURITIES, LLC
Utilities EQUITY RESEARCH DEPARTMENT

2

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

WELLS FARGO SECURITIES, 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
7

2
0
0
8

2
0
0
9

2
0
1
0

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
7
9
,
3
9
4

$
9
6
0
,
4
1
4

$
1
,
0
4
9
,
8
0
0

$
1
,
0
3
6
,
0
2
9

$
1
,
0
6
9
,
5
1
6

$
1
,
1
4
9
,
8
0
9

$
1
,
2
0
0
,
3
2
4

$
1
,
2
2
5
,
0
1
3

$
1
,
2
4
9
,
8
8
0
Ex
p
e
n
s
e
s

P
u
r
c
h
a
s
e
d

P
o
w
e
r
*

2
8
9
,
4
8
4

2
3
8
,
3
8
7

1
6
7
,
1
9
8

1
4
3
,
7
6
9

3
5
8
,
2
3
9

3
6
2
,
4
3
0

3
6
6
,
6
8
3

3
7
0
,
9
9
9

3
7
5
,
3
7
8

F
u
e
l

E
x
p
e
n
s
e

1
3
4
,
3
2
2

1
4
9
,
4
0
3

1
4
9
,
5
6
6

1
5
9
,
6
7
3

0

0

0

0

0

T
h
i
r
d

P
a
r
t
y

T
r
a
n
s
m
i
s
s
i
o
n

E
x
p
e
n
s
e

1
0
,
4
7
0

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

(
1
2
1
,
1
3
1
)

(
4
7
,
4
1
3
)

6
6
,
7
1
0

5
1
,
2
2
6

0

0

0

0

0

O
t
h
e
r

O
&
M

2
7
6
,
0
4
0

2
8
6
,
2
7
5

2
9
2
,
8
1
3

2
9
3
,
9
2
5

3
0
8
,
6
2
1

3
1
9
,
4
2
3

3
2
7
,
4
0
9

3
3
5
,
5
9
4

3
4
3
,
9
8
4

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

1
0
3
,
0
7
2

1
0
2
,
0
8
6

1
1
0
,
6
2
6

1
1
5
,
9
2
1

1
2
0
,
6
0
1

1
3
1
,
0
7
8

1
4
1
,
7
7
5

1
4
6
,
8
9
6

1
5
2
,
0
4
0

O
t
h
e
r

T
a
x
e
s

1
7
,
6
3
4

1
9
,
0
8
3

2
1
,
0
6
9

2
4
,
0
4
6

2
7
,
0
4
6

2
7
,
9
9
3

2
8
,
9
7
2

2
9
,
9
8
6

3
1
,
0
3
6

O
t
h
e
r

1
7
,
4
2
5

2
1
,
9
2
6

3
8
,
2
3
5

4
8
,
7
9
9

4
8
,
7
9
9

4
8
,
7
9
9

4
8
,
7
9
9

4
8
,
7
9
9

4
8
,
7
9
9
To
t
a
l

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

$
1
5
2
,
0
7
8

$
1
9
0
,
6
6
7

$
2
0
3
,
5
8
3

$
1
9
8
,
6
7
0

$
2
0
6
,
2
1
0

$
2
6
0
,
0
8
6

$
2
8
6
,
6
8
5

$
2
9
2
,
7
3
9

$
2
9
8
,
6
4
3
Ot
h
e
r

I
n
c
o
m
e

6
,
7
9
7

(
1
6
6
)

1
5
,
9
6
4

1
8
,
1
7
3

1
8
,
9
5
8

1
5
,
4
8
0

8
,
0
3
4

1
1
,
6
7
5

1
8
,
4
5
5
In
t
e
r
e
s
t

E
x
p
e
n
s
e

6
3
,
3
4
1

7
3
,
0
5
6

7
2
,
8
1
0

7
5
,
1
1
4

5
9
,
7
5
5

6
1
,
5
3
1

7
1
,
3
5
6

7
3
,
9
6
5

7
7
,
6
1
4
Cu
s
t
o
m
e
r

S
h
a
r
i
n
g
0
0

0

0

0

0
In
c
o
m
e

T
a
x
e
s

1
3
,
7
3
1

1
9
,
2
0
0

2
2
,
3
6
2

(
7
3
1
)

2
2
,
7
0
4

6
1
,
4
3
9

6
7
,
3
1
0

6
8
,
5
1
5

6
9
,
3
0
5
Ta
x

R
a
t
e

1
5
%

1
6
%

1
5
%

-
1
%

1
4
%

2
9
%

3
0
%

3
0
%

2
9
%
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
1
,
8
0
3

$
9
8
,
2
4
5

$
1
2
4
,
3
7
5

$
1
4
2
,
4
6
0

$
1
4
2
,
7
0
9

$
1
5
2
,
5
9
6

$
1
5
6
,
0
5
3

$
1
6
1
,
9
3
4

$
1
7
0
,
1
8
0
Di
s
c
o
n
t
i
n
u
e
d

O
p
e
r
a
t
i
o
n
s

(
6
7
)

0

0

0

0

0

0

0

0
Ad
j
u
s
t
m
e
n
t

f
o
r

N
o
n
-
C
o
n
t
r
o
l
l
i
n
g

I
n
t
e
r
e
s
t

4
6
9

1
6
9

(
2
5
)
Ne
t

I
n
c
o
m
e

$
8
2
,
3
3
9

$
9
8
,
4
1
4

$
1
2
4
,
3
5
0

$
1
4
2
,
4
6
0

$
1
4
2
,
7
0
9

$
1
5
2
,
5
9
6

$
1
5
6
,
0
5
3

$
1
6
1
,
9
3
4

$
1
7
0
,
1
8
0
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
4
,
3
6
5

4
5
,
3
7
9

4
7
,
1
8
2

4
8
,
3
4
0

4
9
,
7
7
2

5
0
,
1
0
2

5
0
,
3
5
0

5
0
,
5
8
4

5
0
,
8
0
4
EP
S

$
1
.
8
6

$
2
.
1
7

$
2
.
6
4

$
2
.
9
5

$
2
.
8
7

$
3
.
0
5

$
3
.
1
0

$
3
.
2
0

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

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
6

$
2
.
1
7

$
2
.
6
4

$
2
.
9
5

$
2
.
8
7

$
3
.
0
5

$
3
.
1
0

$
3
.
2
0

$
3
.
3
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
7

2
0
0
8

2
0
0
9

2
0
1
0

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
.
2
0

$
1
.
2
0

$
1
.
2
6

$
1
.
3
5

$
1
.
4
4

$
1
.
5
4
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
.
2
0

1
.
2
0

1
.
2
6

1
.
3
5

1
.
4
4

1
.
5
4
Pa
y
o
u
t

R
a
t
i
o

6
5
%

5
5
%

4
6
%

4
1
%

4
2
%

4
1
%

4
3
%

4
5
%

4
6
%
St
a
t
i
s
t
i
c
s
EB
I
T
D
A

/

S
h
a
r
e

$
5
.
7
5

$
6
.
4
5

$
6
.
6
6

$
6
.
5
1

$
6
.
5
7

$
7
.
8
1

$
8
.
5
1

$
8
.
6
9

$
8
.
8
7
Ca
s
h

F
l
o
w

/

S
h
a
r
e

1
.
8
2

3
.
0
2

6
.
0
4

6
.
3
4

5
.
1
4

4
.
5
7

5
.
2
8

5
.
3
2

5
.
3
5
Bo
o
k

V
a
l
u
e

/

S
h
a
r
e

(
y
e
a
r

e
n
d
)

2
6
.
7
9

2
7
.
7
5

2
9
.
1
6

3
1
.
0
0

3
2
.
7
2

3
4
.
5
4

3
6
.
3
3

3
8
.
1
3

3
9
.
9
8
Av
e
r
a
g
e

B
o
o
k

V
a
l
u
e

/

S
h
a
r
e

2
6
.
2
0

2
7
.
2
7

2
8
.
4
5

3
0
.
0
8

3
1
.
8
6

3
3
.
6
3

3
5
.
4
4

3
7
.
2
3

3
9
.
0
6
RO
E

o
f

I
D
A
C
O
R
P

7
.
1
%

8
.
0
%

9
.
3
%

9
.
8
%

9
.
0
%

9
.
1
%

8
.
7
%

8
.
6
%

8
.
6
%
RO
E

o
f

I
d
a
h
o

P
o
w
e
r

C
o
m
p
a
n
7.
2
%

8
.
2
%

1
0
.
0
%

1
0
.
5
%

9
.
5
%

9
.
7
%

9
.
3
%

9
.
2
%

9
.
2
%
*2
0
1
1
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
,

t
h
i
r
d

p
a
r
t
y

t
r
a
n
s
m
i
s
s
i
o
n

a
n
d

P
C
A

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

E
P
S

e
x
c
l
u
d
e

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

i
t
e
m
s
;

0
9

E
P
S

i
n
c
l
u
d
e
s

b
o
n
u
s

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

b
e
n
e
f
i
t
,

t
a
x

s
e
t
t
l
e
m
e
n
t

a
n
d

O
r
e
g
o
n

d
e
f
e
r
r
a
l
;

1
0

in
c
l
u
d
e
s

r
e
p
a
i
r
s
-
r
e
l
a
t
e
d

t
a
x

b
e
n
e
f
i
t
.
So
u
r
c
e
:

W
e
l
l
s

F
a
r
g
o

S
e
c
u
r
i
t
i
e
s
,

L
L
C

e
s
t
i
m
a
t
e
s

a
n
d

c
o
m
p
a
n
y

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

M
o
d
e
l

WELLS FARGO SECURITIES, LLC
Utilities EQUITY RESEARCH DEPARTMENT

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
7

2
0
0
8

2
0
0
9

2
0
1
0

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

$
8
1
,
8
7
0

$
9
8
,
2
4
5

$
1
2
4
,
3
7
5

$
1
4
2
,
4
6
0

$
1
4
2
,
7
0
9

$
1
5
2
,
5
9
6

$
1
5
6
,
0
5
3

$
1
6
1
,
9
3
4

1
7
0
,
1
8
0

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
0
8
,
1
7
1

1
0
9
,
8
4
2

1
1
8
,
6
0
0

1
2
1
,
8
4
9

1
3
0
,
6
0
1

1
4
1
,
0
7
8

1
5
1
,
7
7
5

1
5
6
,
8
9
6

1
6
2
,
0
4
0

N
e
t

O
t
h
e
r

(
9
6
,
2
8
8
)

(
3
9
,
4
5
7
)

7
8
,
2
4
0

1
9
,
5
2
0

(
1
8
,
1
3
8
)

(
6
5
,
3
6
4
)

(
4
3
,
0
0
4
)

(
5
0
,
7
1
5
)

(
6
0
,
9
7
1
)

W
o
r
k
i
n
g

C
a
p
i
t
a
l

(
1
3
,
1
5
2
)

(
3
2
,
1
1
7
)

(
3
6
,
7
9
0
)

2
1
,
5
7
1

0

0

0

0

0
Ne
t

O
p
e
r
a
t
i
n
g

C
a
s
h

F
l
o
w

$
8
0
,
6
0
1

$
1
3
6
,
5
1
3

$
2
8
4
,
4
2
5

$
3
0
5
,
4
0
0

$
2
5
5
,
1
7
2

$
2
2
8
,
3
0
9

$
2
6
4
,
8
2
5

$
2
6
8
,
1
1
5

$
2
7
1
,
2
4
9
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

(
$
2
8
7
,
2
1
9
)

(
$
2
4
3
,
5
4
4
)

(
$
2
5
1
,
9
3
7
)

(
$
3
3
8
,
2
5
2
)

(
$
3
2
4
,
0
0
0
)

(
$
2
3
9
,
5
0
0
)

(
$
2
1
7
,
1
6
7
)

(
$
3
0
2
,
9
9
2
)

(
$
3
4
3
,
8
4
1
)
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

3
4
8

(
8
,
3
1
4
)

(
5
,
8
0
2
)

(
1
3
,
3
9
0
)

(
5
,
0
0
0
)

(
5
,
0
0
0
)

(
5
,
0
0
0
)

(
5
,
0
0
0
)

(
5
,
0
0
0
)
Ot
h
e
r

1
9
,
7
6
1

4
9
,
0
3
4

1
5
,
3
3
4

2
3
,
3
0
8

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
6
7
,
1
1
0
)

(
$
2
0
2
,
8
2
4
)

(
$
2
4
2
,
4
0
5
)

(
$
3
2
8
,
3
3
4
)

(
$
3
2
9
,
0
0
0
)

(
$
2
4
4
,
5
0
0
)

(
$
2
2
2
,
1
6
7
)

(
$
3
0
7
,
9
9
2
)

(
$
3
4
8
,
8
4
1
)
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

$
2
4
0
,
0
0
0

$
1
2
0
,
0
0
0

$
2
3
0
,
0
0
0

$
2
0
0
,
0
0
0

$
0

$
1
7
0
,
0
0
0

$
1
0
0
,
0
0
0

$
1
0
0
,
0
0
0

$
1
5
0
,
0
0
0
Is
s
u
a
n
c
e

o
f

T
e
r
m

L
o
a
n
s

$
1
7
0
,
0
0
0

(
$
1
7
0
,
0
0
0
)

$
0

$
0

$
0

$
0

$
0

$
0
Re
t
i
r
e
m
e
n
t

o
f

L
T

D
e
b
t

(
9
5
,
0
3
3
)

(
1
1
,
3
4
9
)

(
8
9
,
1
7
4
)

(
1
,
0
6
4
)

(
1
2
1
,
0
6
4
)

(
1
0
1
,
0
6
4
)

(
7
1
,
0
6
4
)

(
1
,
0
6
4
)

(
1
,
0
6
4
)
Pu
r
c
h
a
s
e

o
f

P
o
l
l
u
t
i
o
n

C
o
n
t
r
o
l

B
o
n
d
s

(
1
6
6
,
1
0
0
)

1
6
6
,
1
0
0

0

0

0

0

0

0
Re
t
i
r
e
m
e
n
t

o
f

P
r
e
f
e
r
r
e
d

S
t
o
c
k

o
f

I
D

P
o
w
e
r

0

0

0

0

0

0

0

0

0
Di
v
i
d
e
n
d
s

o
n

C
o
m
m
o
n

S
t
o
c
k

(
5
3
,
0
1
2
)

(
5
4
,
2
3
9
)

(
5
6
,
8
2
0
)

(
5
7
,
8
7
2
)

(
5
9
,
5
4
7
)

(
6
2
,
9
4
0
)

(
6
7
,
6
8
0
)

(
7
2
,
7
5
5
)

(
7
8
,
1
8
8
)
ST

D
e
b
t

5
7
,
4
4
5

(
3
9
,
0
9
5
)

(
9
3
,
6
0
0
)

1
3
,
1
5
0

1
5
,
0
0
0

0

0

0

0
Co
m
m
o
n

S
t
o
c
k

I
s
s
u
e
d

3
7
,
1
8
1

5
0
,
8
6
3

2
4
,
3
2
8

4
8
,
6
4
4

1
5
,
0
0
0

1
0
,
0
0
0

1
0
,
0
0
0

1
0
,
0
0
0

1
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

(
3
4
6
)

(
3
0
4
)

(
1
,
4
4
1
)

(
8
6
9
)

0

0

0

0

0
Ot
h
e
r

(
1
,
6
5
2
)

(
2
,
6
0
3
)

(
7
,
2
5
4
)

(
3
,
3
6
5
)

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
8
4
,
5
8
3

$
6
7
,
1
7
3

$
2
,
1
3
9

$
1
9
8
,
6
2
4

(
$
1
5
0
,
6
1
1
)

$
1
5
,
9
9
6

(
$
2
8
,
7
4
4
)

$
3
6
,
1
8
1

$
8
0
,
7
4
8
Ne
t

C
h
a
n
g
e

i
n

C
a
s
h

(
$
1
,
9
2
6
)

$
8
6
2

$
4
4
,
1
5
9

$
1
7
5
,
6
9
0

(
$
2
2
4
,
4
3
8
)

(
$
1
9
5
)

$
1
3
,
9
1
4

(
$
3
,
6
9
6
)

$
3
,
1
5
6
Ca
s
h

a
t

b
e
g
i
n
n
i
n
g

o
f

p
e
r
i
o
d

9
,
8
9
2

7
,
9
6
6

8
,
8
2
8

5
2
,
9
8
7

2
2
8
,
6
7
7

4
,
2
3
9

4
,
0
4
4

1
7
,
9
5
8

1
4
,
2
6
3
Ca
s
h

a
t

e
n
d

o
f

p
e
r
i
o
d

$
7
,
9
6
6

$
8
,
8
2
8

$
5
2
,
9
8
7

$
2
2
8
,
6
7
7

$
4
,
2
3
9

$
4
,
0
4
4

$
1
7
,
9
5
8

$
1
4
,
2
6
3

$
1
7
,
4
1
8
Ca
p
i
t
a
l

S
t
r
u
c
t
u
r
e

2
0
0
7

2
0
0
8

2
0
0
9

2
0
1
0

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
,
2
0
7
,
3
1
5

$
1
,
3
0
2
,
4
3
7

$
1
,
3
9
7
,
3
3
5

$
1
,
5
3
2
,
1
1
3

$
1
,
6
3
0
,
2
7
5

$
1
,
7
2
9
,
9
3
1

$
1
,
8
2
8
,
3
0
4

$
1
,
9
2
7
,
4
8
3

$
2
,
0
2
9
,
4
7
5
Lo
n
g
-
T
e
r
m

D
e
b
t
1,
1
5
6
,
8
8
0

1
,
1
8
3
,
4
5
1

1
,
4
0
9
,
7
3
0

1
,
4
8
8
,
2
8
7

1
,
3
6
7
,
2
2
3

1
,
4
3
6
,
1
5
9

1
,
4
6
5
,
0
9
5

1
,
5
6
4
,
0
3
1

1
,
7
1
2
,
9
6
7
Sh
o
r
t
-
T
e
r
m

D
e
b
t
19
7
,
9
0
1
23
7
,
7
7
8
63
,
0
9
0
18
9
,
4
7
2
20
4
,
4
7
2
20
4
,
4
7
2
20
4
,
4
7
2
20
4
,
4
7
2
20
4
,
4
7
2
To
t
a
l

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

$
2
,
5
6
2
,
0
9
6

$
2
,
7
2
3
,
6
6
6

$
2
,
8
7
0
,
1
5
5

$
3
,
2
0
9
,
8
7
2

$
3
,
2
0
1
,
9
7
0

$
3
,
3
7
0
,
5
6
2

$
3
,
4
9
7
,
8
7
1

$
3
,
6
9
5
,
9
8
6

$
3
,
9
4
6
,
9
1
4
%
E
q
u
i
t
y
47

4
8

4
9

4
8

5
1

5
1

5
2

5
2

5
1
%
L
o
n
g
-
T
e
r
m

D
e
b
t
45

4
3

4
9

4
6

4
3

4
3

4
2

4
2

4
3
%
S
h
o
r
t
-
T
e
r
m

D
e
b
t
8
9

2

6

6

6

6

6

5
So
u
r
c
e
:

W
e
l
l
s

F
a
r
g
o

S
e
c
u
r
i
t
i
e
s
,

L
L
C

e
s
t
i
m
a
t
e
s

a
n
d

c
o
m
p
a
n
y

f
i
l
i
n
g
s

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

5

Required Disclosures

$18.00
$20.00
$22.00
$24.00
$26.00
$28.00
$30.00
$32.00
$34.00
$36.00
$38.00
$40.00
$42.00
$44.00
$46.00
7/9
/
0
8
8/6
/
0
8
9/3
/
0
8
10
/
1
/
0
8
10
/
2
9
/
0
8
11
/
2
6
/
0
8
12
/
2
4
/
0
8
1/2
1
/
0
9
2/1
8
/
0
9
3/1
8
/
0
9
4/1
5
/
0
9
5/1
3
/
0
9
6/1
0
/
0
9
7/8
/
0
9
8/5
/
0
9
9/2
/
0
9
9/3
0
/
0
9
10
/
2
8
/
0
9
11
/
2
5
/
0
9
12
/
2
3
/
0
9
1/2
0
/
1
0
2/1
7
/
1
0
3/1
7
/
1
0
4/1
4
/
1
0
5/1
2
/
1
0
6/9
/
1
0
7/7
/
1
0
8/4
/
1
0
9/1
/
1
0
9/2
9
/
1
0
10
/
2
7
/
1
0
11
/
2
4
/
1
0
12
/
2
2
/
1
0
1/1
9
/
1
1
2/1
6
/
1
1
3/1
6
/
1
1
4/1
3
/
1
1
5/1
1
/
1
1
6/8
/
1
1
7/6
/
1
1
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 ($) Rating Code Val. Rng. Low Val. Rng. High Close Price ($)
7/9/2008 Kalton
7/9/2008 NA 2 31.00 33.00 30.07
z 12/18/2008 29.19 2 30.00 32.00 29.24
z 2/19/2009 24.39 2 26.00 27.00 24.39
z 8/6/2009 27.79 2 27.00 29.00 27.79
z 9/10/2009 28.37 2 29.00 30.00 28.37
z 11/10/2009 29.52 2 30.00 31.00 29.52
z 12/14/2009 31.18 2 32.00 33.00 31.54
z 2/25/2010 33.94 2 35.00 36.00 33.89
z 8/6/2010 35.75 2 36.00 37.00 36.05
z 10/29/2010 37.00 2 38.00 39.00 36.80
cz 11/15/2010 36.34 1 40.00 41.00 36.52
z 2/9/2011 38.22 1 41.00 42.00 38.05
z 5/5/2011 38.91 1 42.00 43.00 38.91
Source: Wells Fargo Securities, LLC estimates and Reuters data Symbol Key Rating Code Key
d Rating Downgrade ‹ Initiation, Resumption, Drop or Suspend 1 Outperform/Buy SR Suspended
c Rating Upgrade „ Analyst Change 2 Market Perform/Hold NR Not Rated
z Valuation Range Change ˆ Split Adjustment 3 Underperform/Sell NE No Estimate
Additional Information Available Upon Request

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

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

IDA: Risks to our valuation include project delays/cancellations, negative regulatory developments and consistently below average
hydro conditions.

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

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

As of: July 19, 2011
46% of companies covered by Wells Fargo Securities, LLC
Equity Research are rated Outperform.
Wells Fargo Securities, LLC has provided investment banking
services for 44% of its Equity Research Outperform-rated
companies.
51% of companies covered by Wells Fargo Securities, LLC
Equity Research are rated Market Perform.
Wells Fargo Securities, LLC has provided investment banking
services for 49% of its Equity Research Market Perform-rated
companies.
3% of companies covered by Wells Fargo Securities, LLC
Equity Research are rated Underperform.
Wells Fargo Securities, LLC has provided investment banking
services for 46% of its Equity Research Underperform-rated
companies.

Important Disclosure for International Clients
EEA – The securities and related financial instruments described herein may not be eligible for sale in all jurisdictions or to certain
categories of investors. For recipients in the EEA, this report is distributed by Wells Fargo Securities International Limited
(“WFSIL”). WFSIL is a U.K. incorporated investment firm authorized and regulated by the Financial Services Authority. For the
purposes of Section 21 of the UK Financial Services and Markets Act 2000 (“the Act”), the content of this report has been approved
by WFSIL a regulated person under the Act. WFSIL does not deal with retail clients as defined in the Markets in Financial
Instruments Directive 2007. The FSA rules made under the Financial Services and Markets Act 2000 for the protection of retail
clients will therefore not apply, nor will the Financial Services Compensation Scheme be available. This report is not intended for,
and should not be relied upon by, retail clients.
Australia – Wells Fargo Securities, LLC is exempt from the requirements to hold an Australian financial services license in respect
of the financial services it provides to wholesale clients in Australia. Wells Fargo Securities, LLC is regulated under U.S. laws which
differ from Australian laws. Any offer or documentation provided to Australian recipients by Wells Fargo Securities, LLC in the
course of providing the financial services will be prepared in accordance with the laws of the United States and not Australian laws.
WELLS FARGO SECURITIES, LLC
IDACORP, Inc. EQUITY RESEARCH DEPARTMENT

7

Hong Kong – This report is issued and distributed in Hong Kong by Wells Fargo Securities Asia Limited (“WFSAL”), a Hong Kong
incorporated investment firm licensed and regulated by the Securities and Futures Commission to carry on types 1, 4, 6 and 9
regulated activities (as defined in the Securities and Futures Ordinance, “the SFO”). This report is not intended for, and should not
be relied on by, any person other than professional investors (as defined in the SFO). Any securities and related financial
instruments described herein are not intended for sale, nor will be sold, to any person other than professional investors (as defined
in the SFO).
Japan – This report is distributed in Japan by Wells Fargo Securities (Japan) Co., Ltd, registered with the Kanto Local Finance
Bureau to conduct broking and dealing of type 1 and type 2 financial instruments and agency or intermediary service for entry into
investment advisory or discretionary investment contracts. This report is intended for distribution only to professional investors
(Tokutei Toushika) and is not intended for, and should not be relied upon by, ordinary customers (Ippan Toushika).
The ratings stated on the document are not provided by rating agencies registered with the Financial Services Agency of Japan
(JFSA) but by group companies of JFSA-registered rating agencies. These group companies may include Moody’s Investors Services
Inc, Standard & Poor’s Rating Services and/or Fitch Ratings. Any decisions to invest in securities or transactions should be made
after reviewing policies and methodologies used for assigning credit ratings and assumptions, significance and limitations of the
credit ratings stated on the respective rating agencies’ websites.
About Wells Fargo Securities, LLC
Wells Fargo Securities, LLC is a U.S. broker-dealer registered with the U.S. Securities and Exchange Commission and a member of
the New York Stock Exchange, the Financial Industry Regulatory Authority and the Securities Investor Protection Corp.
This report is for your information only and is not an offer to sell, or a solicitation of an offer to buy, the securities or instruments
named or described in this report. Interested parties are advised to contact the entity with which they deal, or the entity that
provided this report to them, if they desire further information. The information in this report has been obtained or derived from
sources believed by Wells Fargo Securities, LLC, to be reliable, but Wells Fargo Securities, LLC, does not represent that this
information is accurate or complete. Any opinions or estimates contained in this report represent the judgment of
Wells Fargo Securities, LLC, at this time, and are subject to change without notice. For the purposes of the U.K. Financial Services
Authority's rules, this report constitutes impartial investment research. Each of Wells Fargo Securities, LLC, and
Wells Fargo Securities International Limited is a separate legal entity and distinct from affiliated banks. Copyright © 2011
Wells Fargo Securities, LLC.

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