COC IDA103009.pdf

Please refer to pages 9-10 of this report for detailed disclosure and certification information.
Institutional Equity Research

IDACORP, INC.
November 2, 2009 IDA – NYSE

Rating:
BUY ↑

Price: (10/30/09) $28.09

Price Targets:
12-18 month: $33 ↑
5-year: $40 ↑

Industry:
Utilities

James L. Bellessa, Jr., CFA
406.791.7230
[e-mail]

Michael Bates
Research Associate
406.791.7216
[e-mail]

Company Description:
Boise, ID -- IDACORP, Inc. is the holding
company for the Idaho Power Company, an
electric public utility that serves an
approximate 24,000 square mile area in
Southern Idaho and Eastern Oregon. Non-
regulated subsidiaries include an affordable
housing project finance company and an
operator of small hydroelectric generation
projects.

FY (Dec) 2008A 2009E Y-O-Y
Growth 2010E Y-O-Y
Growth
Revenue ($M) $960.4 $1,026.2 7% $1,097.7 7%
Previous - $1,008.3 $1,098.3
Price/Revenue ratio 1.3x 1.3x 1.3x
EPS Revised $2.17 $2.34 8% $2.50 7%
Previous - NC $2.39
Price/EPS ratio 13.0x 12.0x 11.2x
EBITDA ($M) $316.9 $329.9 4% $385.4 17%
EV/EBITDA ratio 8.6x 8.2x 7.0x

Quarterly Data: EPS EPS Revenue Revenue EBITDA
Previous ($M) Previous ($M)
3/31/09A $0.40 - $228.6 - $73.7
6/30/09A $0.58 - $243.6 - $77.8
9/30/09A $1.16 $1.06 $324.5 $303.8 $115.2
12/31/09E $0.19 $0.30 $229.5 $232.3 $63.2
Valuation Data Trading Data
Long-term growth rate (E) 5% Shares outstanding (M) 47.7
Total Debt/Cap (9/30/09) 50.4% Market Capitalization ($M) $1,338
Cash per share (9/30/09) $0.61 52-week range $20.91 - $30.66
Book value per share (9/30/09) $28.97 Average daily volume (3 mos.) (K) 237
Dividend (yield) $1.20 (4.3%) Float 97%
Return on Equity (T-T-M) 8% Index Membership S&P 400 MidCap

Raising Rating to BUY on Solid 3Q’09 and Higher 2010 EPS Outlook.

• IDACORP reported 3Q'09 EPS of $1.16 compared to $1.14 in 3Q'08. We
were forecasting $1.06 and the consensus of three analysts was $1.05.
• Positive regulatory outcomes. Quarterly results were helped by a number of
regulatory decisions over the past year and a lower tax rate, partially offset by a
decline in electric volumes due to both a weak economy and reduced irrigation
loads as the utility territory experienced above-average precipitation.
• Details of important settlement stipulation pending. Idaho Power had entered
an “agreement in principle” with the IPUC Staff and other customer groups,
which would allow the utility to forego a general rate case filing in Idaho.
• Our 2009 EPS forecast remains unchanged at $2.34, despite the positive
earnings variance of the recent quarter. We are now factoring in a likely 4Q’09
non-regulated loss, lower customer growth and reduced sales due to a weak
economy, and higher utility depreciation expense.
• We are raising our 2010 EPS estimate of $2.39 to $2.50, to reflect a higher
level of utility profitability than we previously assumed, offset in part by higher
depreciation expense and a larger number of shares than our prior forecast.
• Our 12-18 month target price is being lifted from $29 to $33, or ~13.2x
(previously ~12x) our revised 2010 EPS estimate. Risks to our forecast would be
reduced hydro generation conditions, unsupportive regulatory decisions, and/or a
protracted recession. Given the current share price, we are raising our rating
from Neutral to BUY for total return investors, including a 4.3% current yield.
D.A. Davidson & Co.
2
Price Chart
Source: Thomson One
D.A. Davidson & Co.
3
IDACORP reported 3Q'09 EPS of $1.16, compared to $1.14 in 3Q'08 and our forecast of
$1.06. The company’s principal subsidiary, the Idaho Power Company (IPC), reported 3Q’09
EPS of $1.08, compared to our forecast of $1.04 and the year ago amount of $1.05. Non-
regulated activities produced a 3Q’09 profit of $0.07 per share, versus $0.10 last year and our
forecast of $0.02.

Quarterly results were helped by a number of regulatory decisions over the past year,
including positive changes to the power cost adjustment (PCA) mechanisms in Idaho and
Oregon and retail rate changes in the first and second quarters of 2009 (see our Regulatory
Rate Case Summary on page 7). Partially offsetting the boosts from several regulatory
decisions was the Idaho Public Utilities Commission’s order re-allocating base power supply
costs, which reduced 3Q’09 net income by $4.2 million, or $0.09, compared to 3Q’08.

A reduced effective income tax rate also produced $0.04 per share of the positive earnings
variance. The tax rate reduction to 20.1%, versus 23.3% a year ago, was due to an
examination settlement, state bonus depreciation, and timing and amount of other regulatory
flow-through tax adjustments.

However, results were held back by both increased precipitation and the recession, which
combined to push down retail volumes by 4%. The above-average precipitation reduced
irrigation volumes by 10%. Efficiency programs also curtailed usage. The declines in sales
volumes were partially mitigated by the load growth adjustment rate (LGAR) and a fixed-cost
adjustment (FCA) mechanism, which separates (decouples) the recovery of fixed costs from
variable kilowatt-hour charges. (The FCA pilot program runs through 2009.)

The various components of year-over-year changes in 3Q’09 pre-tax income and after-tax
income on an absolute and per share basis from a year ago are reconciled in Table 1.

Table 1: Reconciliations of 3Q’09 Earnings Changes
($ in millions; shares in 000's) Avg. Shares
$51.7 45,194
Rate and Other Regulatory changes, net of PCA 4.3
Reduced Sales Volumes, net of FCA deferral -5.5
Oregon 2007 Excess Power Cost Deferral in 2009 0
Decrease in Transmission Revenue -1.3
Reduced Effective Income Tax Rate 3.8
Other, Including Tax Impacts of Listed Items 2.4
$3.7
-0.9
$54.5 47,177
(Per share figures are in $ )
$1.14 $1.14
Pre-tax After-tax*
Rate and Other Regulatory changes, net of PCA $0.09 $0.07
Reduced Sales Volumes, net of FCA deferral (0.12) (0.08)
Oregon 2007 Excess Power Cost Deferral in 2009 0.00 0.00
Decrease in Transmission Revenue (0.03) (0.02)
Reduced Effective Income Tax Rate 0.08 0.06
Other, Including Tax Impacts of Listed Items 0.05
$0.08 $0.02
(0.06)
$1.16 $1.16
Source: Company reports; D.A. Davidson per share calculations
Figures may not total or exactly coincide with the text in the report due to rounding.
* IPC results tax effected at overall 3Q'09 utility tax rate of 27.2%; non-regulated shown net of segment tax.
Other Net Decreases (Net Of Tax)
3Q'09 Net Income
3Q'09 Net Income
3Q'08 Net Income Per Share
Change In Idaho Power (IPC) Pre-Tax Income Per Share:
Total After-tax Increase To IPC EPS Contribution
3Q'08 Net Income
Change In Idaho Power (IPC) Pre-Tax Income:
Total After-tax Increase To IPC Net Income
Other Net Decreases (Net Of Tax)

EPS climbs on changes in
regulatory issues and tax benefits
D.A. Davidson & Co.
4

General business electric revenues of $323 million in the recent quarter increased 8% from
$298 million a year ago. The $25 million improvement in general business revenues was
driven primarily by rate relief put into place over the past year and improved hydro
conditions, but were partially offset by the aforementioned 4% reduction in sales volumes.
Retail base rates are up in the past year due to a 4.0% general rate increase for Idaho
customers effective January 1, 2009, an 11.5% rate increase for Oregon customers due to the
annual power cost update, and a 10.2% increase for Idaho customers due to the annual power
cost adjustment in that state.

During IDACORP’s 3Q’09 earnings release conference call, CEO LaMont Keen indicated
that Idaho Power had entered an “agreement in principle” with the IPUC Staff and other
customer groups, which would allow the utility to forego a general rate case filing in Idaho.

On August 28th, the company had given a 60-day Notice of Intent that it may file a rate case
between October 28th and December 28th. If the “agreement” is approved, Idaho Power will
likely avoid the 7-month process of a rate case.

The settlement stipulation will be filed with the Idaho Public Utilities Commission in early
November, according to Keen. Once memorialized, management will be able to discuss
aspects of the agreement. Until then, the only other characterizations management would
make about the “agreement” was that, if approved, it would be a “constructive event” for
supporting the company’s financial strength and operating results, while mitigating impacts to
customers during a difficult time in the economy.

Our 2009 EPS forecast is being maintained at $2.34. Despite the 3Q’09 positive earnings
variance from our forecast, we are reducing our 4Q’09 forecast for a likely non-regulatory
loss. This loss is implied in management’s guidance that 2009 non-regulated subsidiary
earnings and holding company expenses will be in the range of $0.0-$3.0 million, compared
to 9-month 2009 earnings of $4.4 million. We assume the 4Q’09 loss by the non-regulated
businesses relates to holding company taxes and the fact it is a seasonally weak period for
Ida-West. We are also reducing our volume forecast at the utility to reflect a weak economy.

We are raising our 2010 EPS estimate of $2.39 to $2.50 to reflect a higher level of utility
profitability than we previously assumed, offset in part by higher depreciation expense and a
larger number of shares than our prior forecast. We expect results will be helped by an
improving economy, as well as boosts from Oregon rate relief and some yet-to-be disclosed
changes in Idaho regulatory rules, deferrals, or mechanisms as part of the “agreement in
principle.”

We are raising our 12-18 month target price from $29 to $33, or ~13.2x (previously ~12x) our
revised 2010 EPS estimate. While the target multiple is below IDACORP’s median multiple
of 14.8x price-to-year-forward EPS estimates over the past decade, it is generally in line with
the current average 2010 valuation in our utility coverage list. Given the current share price,
we are raising our rating to BUY for total return investors, including a 4.3% current yield.

James L. Bellessa Jr., CFA
Vice President and Senior Research Analyst
406-791-7230

Michael Bates
Research Associate
406-791-7216

Rate relief boosts revenues
“Agreement in principle” reached
which could avoid general rate case
Maintaining 2009 EPS Estimate
and Raising 2010 Forecast

Raising Target Price and Rating
D.A. Davidson & Co.
5
IDACORP 2009-2011 CAPITAL SPENDING BUDGET

($ in millions) 2009E 2010-2011E
Capital Requirements for Regulated Operations
Ongoing Capital Expenditures $135-140 $320-$325
Advanced Metering Infrastructure 20-22 40-50
Major Projects 50-53 70-75
Minimum Transmission for Baseload Resource - 15-20
Total excluding Langely Gulch Project $220-230 $445-470
Langley Gulch Power Plant 50-55 260-270
Total Capital Expenditures $255-$270 $705-$740
* Langley Gulch Power Plant (2012 Baseload Resource): 300 MW natural gas-fired facility which the utility
targets to be operational by July 2012 at an estimated cost of $427 million, including water & gas pipelines and
related transmission lines. The Idaho Public Utilities Commission (IPUC) issued a CPCN on September 1, 2009.
If the utility is able to secure financing on acceptable terms, management expects to begin construction in mid-
2010, with $50-$55 million being spent during 2009 on the project.
* Hemingway Station: New 500 kV station needed to meet growth, capacity and operating constraints at an
estimated total cost of $52 million. The station was originally part of the Gateway West Project but was
accelerated to 2010 to meet forecast deficits and improve reliability.
* Hemingway-Bowmont Transmission Line: Part of the Hemingway Station Project, expected to provide
power to the Treasure Valley in southwest Idaho by 2010 at an estimated total cost of $15 million.
Notes to Capital Expenditures Plan
Major projects included in IDACORP's capital expenditure forecast include:
* Boardman-Hemingway Line: New 500 kV transmission line between Boardman, Oregon and Hemingway,
Idaho. The project is expected to relieve existing congestion by increasing transmission capacity and improving
reliability, with the initial project phase estimate of $50 million being funded by Idaho Power. Cost estimates for
the project (including initial phase project estimate and construction costs of the line) are approximately $600
million. Idaho Power is seeking partners for up to 50% of the project when construction commences. The
estimated in-service date has been delayed from 2013 to 2015 subject to siting, permitting and regulatory
approvals. Siting and permitting costs associated with this project are included in the 2009-2011 CapEx budget.
* Gateway West Project: Joint venture with PacifiCorp to build transmission lines between Douglas, Wyoming
and Hemingway, Idaho. Initial phases of the project could be completed by 2014 depending on the timing of
rights-of-way acquisition, siting and permitting, and construction sequencing. Although siting and permitting
costs associated with the project are included in the utility's 2009-2011 forecast, the full construction cost
estimate of $500-600 million is not included.
Source: Company reports

D.A. Davidson & Co.
6
REGULATORY RATE CASE SUMMARY

Revenue
Increase
Average Rate
Base
Return on
Equity
Return on
Rate Base Equity Ratio
Application, July 2009 $7.3 (+22.6%) $111 11.25% 8.68% 49.80%
2009-2010 Idaho Power Cost Adjustment 2
Application, April 2009 $93.8 (+11.4%)
Revised & Approved, May 2009 $84.3 (+10.2%)
Oregon Annual Power Cost Update 3
Requested & Approved, May 2009 $3.9 (+11.46%)
Application, June 2008 $66.6 (+9.9%) $2,093 11.25% 8.55% 49.27%
Approved, January 2009 $20.9 (+3.1%) $2,094 10.5% 8.18% 49.27%
Revised, March 2009 $27.0 (+4.0%) $2,094 10.5% 8.18% 49.27%
FERC Open Access Transmission Tariff Case 5
Application, March 2006 $11.0 11.25%
Approved, January 2009 (appealed) $6.8 10.7%
Application, June 2007 $64 (+10.35%) 11.5% 8.10%
Approved, February 2008 $32.1 (+5.2%)
6 The 2007 Idaho general rate case was decided under a "black box" settlement agreement. Therefore, no data is given for line items including allowed ROE, rate
base, etc.
Notes to Regulatory Summary
4 As part of the 2008 general rate case, ongoing finance costs of ~$10 million (allowance for funds used during construction (AFDUC)) for the relicensing of the
Hells Canyon Project were allowed in rate base for the first time since the company’s relicensing efforts started ten years earlier in order to support cash flows for
the utility’s credit rating purposes (but not profits), even though the company’s relicensing efforts are still ongoing. Also included in the rate case were a
lowering of the load growth adjustment rate (LGAR) from $28.14/MWh to $26.63/MWh, and a new residential tiering rate schedule was enacted.
($ in millions)
2008 Idaho General Rate Case 4
2007 Idaho General Rate Case 6
5 The new OATT calculation allowed the utility to move from a fixed rate to a formula rate which would be updated annually. The Administrative Law Judge's
(ALJ) initial decision required refunds of $5.4 million. On appeal, the ALJ’s initial decision was upheld in most respects and Idaho Power was required to
reduce its rates to FERC jurisdictional customers and refund $13.3 million to these customers for the period since the new rates went into effect in June 2006.
The utility has filed a request for rehearing with the FERC.
2 The PCA mechanism is a pass-through mechanism and does not contain a profit component. It provides annual adjustments to rates by tracking differences
between actual net power supply costs and power supply costs recovered in retail rates. Although Idaho Power's original 2009 PCA request was for a rate
increase of $93.8 million (+11.4%), the utility subsequently revised its request based upon its updated operating plan, to approximately $84.3 million (+10.2%)
and the revised request was approved. The 2009-2010 PCA reflects a new methodology that utilizes Idaho Power's most recent operating plan to forecast power
supply expenses rather than the previous method (based on a forecast of Brownlee Reservoir inflow and a regression formula). The PCA mechanism provides
that 95% of deviations in power supply costs are reflected in Idaho Power’s rates for both the forecast and the true-up components. The significant size of this
PCA filing includes a true-up for higher than projected power costs last year as well as higher expected costs in the coming year.
3 In addition to granting Idaho Power's APCU, the OPUC issued an order on May 28, 2009 adopting a stipulation in the utility's net power supply deferral. The
deferral was granted in anticipation of higher than normal power supply expenses (Idaho Power's forecast of excess power supply costs in its Oregon jurisdiction
equaled $5.7 million) due to below-normal hydrogeneration. Under current rules, the $5.7 million deferral will not be collected until after power supply cost
deferrals from older periods have been recovered.
2009 Oregon General Rate Case 1
1 Approximately $3.7 million the requested increase is attributable to capital additions made since the utility's last Oregon rate case (2003), $2.1 million due to
higher expenses, and $1.5 million explained by the company's request for a higher ROE (an ROE of 10.0% was approved in the last rate case in IPC's Oregon
jurisdiction. The OPUC is expected to issue a decision in this case by May 31, 2010.
Source: Company reports and regulatory filings

D.A. Davidson & Co.
7
IDACORP, Inc.
Consolidated Balance Sheet
($ in thousands) -- Fiscal year ends 12/31 2004 2005 2006 2007 2008 9/30/2009
ASSETS:
Electric Plant:
In Service (At Original Cost) $3,324,816 $3,477,067 $3,583,694 $3,796,339 $4,030,134 $4,141,054
Accumulated Provision For Depreciation (1,316,125) (1,364,640) (1,406,210) (1,468,832) (1,505,120) (1,556,226)
In Service - Net $2,008,691 $2,112,427 $2,177,484 $2,327,507 $2,525,014 $2,584,828
Construction Work In Progress 152,427 149,814 210,094 257,590 207,662 236,632
Held For Future Use 2,636 2,906 2,810 3,366 6,318 6,549
Other Property, Net Of Accum. Depreciation 45,708 29,294 28,692 28,089 19,171 19,134
Property, Plant And Equipment - Net $2,209,462 $2,294,441 $2,419,080 $2,616,552 $2,758,165 $2,847,143
Investments And Other Property $223,061 $191,593 $202,825 $201,085 $198,552 $197,861
Current Assets:
Cash And Cash Equivalents $23,403 $52,356 $9,892 $7,966 $8,828 $28,869
Receivables:
Customer 92,258 94,469 62,131 69,160 64,733 83,990
Allowance For Uncollectible Accounts (43,108) (33,078) (7,168) (7,505) (1,724) (1,534)
Employee Notes Receivable 3,523 2,951 2,569 2,128 179
Other 8,806 21,377 11,855 10,957 10,260 12,242
Energy Marketing Assets 9,203 23,859 12,069
Taxes Receivable 18,111 0
Accrued Unbilled Revenues 33,832 38,905 31,365 36,314 43,934 49,779
Materials And Supplies (At Avg. Cost) 28,008 30,451 39,079 43,270 50,121 50,599
Fuel Stock (At Average Cost) 6,539 11,739 15,174 17,268 16,852 22,346
Prepayments 30,035 17,876 9,308 9,371 10,059 11,659
Deferred Income Taxes 23,407 23,922 28,035 25,672 37,550 14,739
Regulatory Assets -- Derivatives 5,510 3,064
Refundable Income Tax Deposit 44,903 46,083
Other Current Assets 2,956 3,993 6,023 7,381 3,105
Assets Held For Sale 6,673 3,326
Total Current Assets $221,416 $297,520 $266,531 $266,707 $266,284 $275,794
Other Assets:
American Falls And Milner Water Rights $31,585 $31,585 $30,543 $29,501 $26,332 $24,487
Company-Owned Life Insurance 35,765 35,401 34,055 30,842 29,482 27,029
Energy Marketing Assets -- Long-Term 16,635 22,189
Regulatory Assets Associated With Taxes 433,271 415,177 423,548 449,668 696,332 701,931
Long-Term Receivables 2,895 4,015 3,802 3,583 4,012 5,212
Other 60,082 46,239 43,670 55,370 43,686 37,835
Assets Held For Sale 25,966 21,076
Total Other Assets $580,233 $580,572 $556,694 $568,964 $799,844 $796,494
Total Assets $3,234,172 $3,364,126 $3,445,130 $3,653,308 $4,022,845 $4,117,292
CAPITALIZATION AND LIABILITIES:
Capitalization:
Shareholders' Equity:
Common Stock $589,440 $598,706 $638,799 $675,774 $729,576 $747,402
Retained Earnings 424,312 437,284 493,363 537,699 581,605 640,029
Other Comprehensive Income (888) (3,425) (5,737) (6,156) (8,707) (6,900)
Treasury Stock (4,578) (998) (2,242) (2) (37) (53)
Unearned Compensation (6,316)
Total Common Stock Equity $1,008,286 $1,025,251 $1,124,183 $1,207,315 $1,302,437 $1,380,478
Noncontrolling Interest 4,478 4,434 4,311
Preferred Stock
Long-Term Debt 979,549 1,023,545 928,648 1,156,880 1,183,451 1,282,900
Total Capitalization $1,987,835 $2,048,796 $2,052,831 $2,368,673 $2,490,322 $2,667,689
Current Liabilities:
Long-Term Debt Due Within One Year $78,603 $16,307 $95,125 $11,456 $86,528 $84,064
Notes Payable 36,270 60,100 129,000 186,445 151,250 36,780
Accounts Payable 79,156 80,324 86,440 85,116 96,785 88,136
Energy Marketing Liabilities 9,420 24,093 13,532
Taxes Accured 46,318 72,652 47,402 8,492 20,531
Interest Accrued 14,426 14,616 12,657 18,913 16,727 27,680
Uncertain Tax Positions 26,764 4,119
Other 21,265 19,577 23,572 38,129 40,259 37,761
Liabilities Held For Sale 5,916 2,606
Total Current Liabilities $285,458 $293,585 $410,334 $375,315 $395,668 $294,952
Other Liabilities:
Energy Marketing Liabilities -- Long-Term $16,635 $22,189
Derivative Liabilities -- Long-Term
Deferred Income Taxes 555,774 519,563 498,512 466,182 515,719 528,953
Regulatory Liabilities Associated With Income Taxes
Regulatory Liabilities - Pca
Regulatory Liabilities - Other 275,854 345,109 294,844 274,204 276,266 285,695
Other 112,616 124,833 179,836 168,934 344,870 340,003
Liabilities Held For Sale 10,051 8,773
Total Other Liabilities $960,879 $1,021,745 $981,965 $909,320 $1,136,855 $1,154,651
Total Capitalization And Liabilities $3,234,172 $3,364,126 $3,445,130 $3,653,308 $4,022,845 $4,117,292
Shares Outstanding (000's)42,217 42,632 43,834 45,063 46,920 47,650
Book Value per Share $23.88 $24.05 $25.65 $26.79 $27.76 $28.97
D.A. Davidson & Co.
8
IDACORP, Inc.
Consolidated Statements of Income
($ in thousands) -- Fiscal year ends 12/31 1Q08 2Q08 3Q08 4Q08 2008 1Q09 2Q09 3Q'09 4Q'09E 2009E 2010E
REVENUES:
Electric Utility:
General Business $167,313 $188,748 $246,639 $181,611 $784,311 $187,927 $198,215 $277,676 $191,784 $855,602 $907,843
Off System Sales 33,363 25,641 34,637 27,789 121,430 28,530 26,667 23,691 27,189 106,077 136,343
Other Revenues 12,120 14,556 16,831 6,828 50,335 11,572 17,636 21,761 10,000 60,969 50,000
Total Electric Utility Revenues 212,796 228,945 298,107 216,228 956,076 228,029 242,518 323,128 228,973 1,022,648 1,094,187
Diversified Operations:
Other 644 1,281 1,609 804 4,338 545 1,116 1,381 500 3,542 3,500
Total Revenues $213,440 $230,226 $299,716 $217,032 $960,414 $228,574 $243,634 $324,509 $229,473 $1,026,190 $1,097,687
EXPENSES:
Electric Utility:
Purchased Power $45,299 $50,089 $79,513 $56,237 $231,138 $32,795 $25,091 $73,483 $52,551 $183,920 $195,525
Fuel Expense 37,237 28,681 46,467 37,018 149,403 39,133 24,475 49,530 37,781 150,919 161,940
Third Party Transmission Expense 497 1,903 3,738 2,500 8,638 906 1,776 2,791 2,000 7,473 8,000
Power Cost Adjustment (17,744) (829) (20,105) (8,735)(47,413)15,859 26,762 1,614 (8,500)35,735 11,000
Total Power Supply $65,289 $79,844 $109,613 $87,020 $341,766 $88,693 $78,104 $127,418 $83,832 $378,047 $376,465
Other Operations And Maintenance 68,430 73,714 71,040 72,208 285,392 68,769 74,653 68,970 71,211 283,603 300,901
Energy Efficiency Programs 3,364 3,928 5,956 5,631 18,879 4,058 8,673 12,202 12,000 36,933 48,000
Gain On Sale Of Emission Allowances (346) (158)(504)(229) (60)(289) 0
Depreciation 25,750 26,617 25,717 24,001 102,085 25,963 26,832 28,837 29,000 110,632 120,000
Taxes Other Than Income Taxes 4,803 4,800 4,827 4,653 19,083 5,062 5,088 5,600 5,037 20,787 21,884
Total Electric Utility Expenses $167,636 $188,557 $216,995 $193,513 $766,701 $192,316 $193,290 $243,027 $201,080 $829,713 $867,250
Other Expenses 1,048 1,140 1,144 (286)3,046 623 872 1,879 1,200 4,574 5,000
Total Operating Expenses $168,684 $189,697 $218,139 $193,227 $769,747 $192,939 $194,162 $244,906 $202,280 $834,287 $872,250
OPERATING INCOME:
Electric Utility $45,160 $40,388 $81,112 $22,715 $189,375 $35,713 $49,228 $80,101 $27,893 $192,935 $226,937
Other Diversified Operations (404) 141 465 1,090 1,292 (78) 244 (498) (700)(1,032) (1,500)
Equity In Earnings Of Partnerships
Combined Operating Income $44,756 $40,529 $81,577 $23,805 $190,667 $35,635 $49,472 $79,603 $27,193 $191,903 $225,437
Total Other Income: 3,741 4,302 2,038 (6,250)3,831 6,921 4,058 4,569 2,000 17,548 17,000
Earnings Of Uncons. Eq-Method Inv. (4,036) (3,278) 2,642 675 (3,997)402 (2,620) 2,866 2,000 2,648 2,500
Total Other Expenses:
INTEREST EXPENSE AND OTHER:
Interest On Long-Term Debt $16,876 $15,744 $17,226 $17,404 $67,250 $16,640 $18,282 $18,840 $19,000 $72,762 $78,000
Other Interest 596 1,313 1,310 2,587 5,806 836 (117) (239) 750 1,230 1,500
Total Interest Expense And Other $17,472 $17,057 $18,536 $19,991 $73,056 $17,476 $18,165 $18,601 $19,750 $73,992 $79,500
Income Before Income Taxes: 26,989 24,496 67,721 (1,761)117,445 25,482 32,745 68,437 11,443 138,107 165,437
Income Taxes: 5,584 6,941 15,809 (9,134)19,200 6,795 5,175 13,730 2,289 27,989 43,014
Tax Rate 21% 28% 23% 519%16%27% 16% 20% 20%20% 26%
Income From Continuing Operations $21,405 $17,555 $51,912 $7,373 $98,245 $18,687 $27,570 $54,707 $9,155 $110,119 $122,423
Losses From Disc. Ops. (Net Of Tax) 0 0 0 0 0 0 0 0 0 0
Net Income $21,405 $17,555 $51,912 $7,373 $98,245 $18,687 $27,570 $54,707 $9,155 $110,119 $122,423
Adjustment For Noncontrolling Interest 311 (40) (173) 71 169 197 (95) (229) 50 (77) 400
Net Income Available For Common $21,716 $17,515 $51,739 $7,444 $98,414 $18,884 $27,475 $54,478 $9,205 $110,042 $122,823
Avg. Common Shares Outstanding (000) 45,047 45,155 45,246 46,027 45,369 46,876 46,977 47,141 47,441 47,109 49,041
Earnings Per Share (Diluted)$0.48 $0.39 $1.14 $0.16 $2.17 $0.40 $0.58 $1.16 $0.19 $2.34 $2.50
Dividends Per Common Share $0.30 $0.30 $0.30 $0.30 $1.20 $0.30 $0.30 $0.30 $0.30 $1.20 $1.20
Dividend Payout Ratio 62% 77% 26% 185%55%74% 51% 26% 155%51% 48%
EPS By Segment
Idaho Power Company $0.47 $0.39 $1.05 $0.17 $2.07 $0.41 $0.56 $1.08 $0.24 $2.29 $2.45
Idacorp Energy (0.00) (0.00) (0.00) (0.00)(0.00)(0.00) (0.00) (0.00)
Ida-West Energy 0.00 0.02 0.03 0.00 0.05 0.00 0.03 0.03
Idacorp Financial 0.02 0.02 0.02 0.03 0.08 0.00 0.00 0.01
Holding Company (0.01) (0.04) 0.05 (0.03)(0.03)(0.02) (0.01) 0.04
Reported Eps, Diluted $0.48 $0.39 $1.14 $0.16 $2.17 $0.40 $0.58 $1.16 $0.19 $2.34 $2.50
D.A. Davidson & Co.
Two Centerpointe Drive, Suite 400 • Lake Oswego, Oregon 97035 • [phone] • [phone] • www.dadavidson.com
Copyright D.A. Davidson & Co., 2009. All rights reserved.
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Required Disclosures
D.A. Davidson & Co. expects to receive, or intends to seek, compensation for investment banking services from this company in the
next three months.
D.A. Davidson & Co. is a full service investment firm that provides both brokerage and investment banking services. James L.
Bellessa, Jr., CFA and Michael Bates, the research analysts principally responsible for the preparation of this report, will receive
compensation that is based upon (among other factors) D.A. Davidson & Co.’s investment banking revenue. However, D.A.
Davidson & Co.’s analysts are not directly compensated for involvement in specific investment banking transactions.
We, James L. Bellessa, Jr., CFA and Michael Bates, attest that (i) all the views expressed in this research report accurately reflect our
personal views about the common stock of the subject company, and (ii) no part of our compensation was, is, or will be, directly or
indirectly, related to the specific recommendations or views expressed in this report.

Ratings Information

D.A. Davidson & Co. Ratings Buy Neutral Underperform
Risk adjusted return potential azbycx Over 15% total return
expected on a risk adjusted
basis over next 12-18 months
>0-15% return potential
on a risk adjusted basis
over next 12-18 months
Likely to remain flat or lose
value on a risk adjusted basis
over next 12-18 months
Distribution of Ratings (as of 9/30/09) Buy Hold Sell
Corresponding Institutional Research Ratings Buy Neutral Underperform
and Distribution 48% 45% 7%
Corresponding Private Client Research Ratings Outperform Market Perform Underperform
and Distribution 78% 22% 0%
Distribution of Combined Ratings 51% 43% 6%
Distribution of companies from whom D.A. Davidson & Co. has received compensation for investment banking services in last 12 mos.
Institutional Coverage 8% 3% 13%
Private Client Coverage 0% 0% 0%
Distribution of Combined Investment Banking 7% 3% 13%

D.A. Davidson & Co.’s Institutional Research Rating Scale (maintained since 7/9/02): Buy, Neutral, Underperform
D.A. Davidson & Co.
Two Centerpointe Drive, Suite 400 • Lake Oswego, Oregon 97035 • [phone] • [phone] • www.dadavidson.com
Copyright D.A. Davidson & Co., 2009. All rights reserved.
10
Target prices are our Institutional Research Department’s evaluation of price potential over the next 12-18 months and 5 years, based
upon our assessment of future earnings and cash flow, comparable company valuations, growth prospects and other financial criteria.
Certain risks may impede achievement of these price targets including, but not limited to, broader market and macroeconomic
fluctuations and unforeseen changes in the subject company’s fundamentals or business trends.

Other Disclosures

Information contained herein has been obtained by sources we consider reliable, but is not guaranteed and we are not soliciting any
action based upon it. Any opinions expressed are based on our interpretation of data available to us at the time of the original
publication of the report. These opinions are subject to change at any time without notice. Investors must bear in mind that inherent
in investments are the risks of fluctuating prices and the uncertainties of dividends, rates of return and yield. Investors should also
remember that past performance is not necessarily an indicator of future performance and D.A. Davidson & Co. makes no guarantee,
express or implied, as to future performance. Investors should note this report was prepared by D.A. Davidson & Co.’s Institutional
Research Department for distribution to D.A. Davidson & Co.’s institutional investor clients and assumes a certain level of investment
sophistication on the part of the recipient. Readers, who are not institutional investors or other market professionals, should seek the
advice of their individual investment advisor for an explanation of this report’s contents, and should always seek such advisor’s advice
before making any investment decisions. Further information and elaboration will be furnished upon request.