COC IDANote091609.pdf

Disclosures and Analyst Certifications can be found in Appendix A.
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IIDDAACCOORRPP ((IIDDAA))
Company Update – Raising P-T and Maintaining NEUTRAL Rating
Highlights
• We are reiterating our NEUTRAL rating on IDA shares. Our revised
price target of $30 per share (previously $28 per share) is based on a
2010 P/E of 11.2x EPS of $2.69. The primary driver of our increased price
target is industry valuation multiple expansion.
• On September 1, 2009, the Idaho Public Utilities Commission (IPUC)
issued a certificate of public convenience and necessity (CPCN) for IDA to
build the Langley Gulch generating facility (despite considerable
opposition from various parties). Langley Gulch is a 330 MW gas-fired
CCGT power plant that is estimated to cost approximately $427m
(including transmission intertie expense of $25.4m) with a December 2012
online date. IPUC also granted IDA certain ratemaking principles.
• We view the Langley Gulch project as supporting meaningful rate base
growth and corresponding long-term source of regulated earnings power.
We expect the project to be financed with a mix of external debt and
equity. Project-related 2009 capital expenditures are estimated at $50m-
$55m.
• Recall on March 6, 2009, IDA filed for the Langley Gulch CPCN requesting
$427.4m of which the IPUC granted preapproval for recovery of $396.6m
for known costs after competitive procurement. IDA must file progress and
budget updates quarterly with the IPUC. IDA requested CWIP be included
however the Commission denied annual recovery in rates, but considered
allowing for quicker recovery of construction costs.
• Additional regulatory updates: IDA recently filed for Oregon rate relief
(+$7.3m), and on August 28, 2009, filed a notice with the IPUC indicating
that the company intends to file a general rate case on or after October 28,
2009 with new rates effective in 2010.
• Upcoming regulatory events to monitor: ALJ ruling regarding IPC
supplemental opening testimony (September 18, 2009), IPC supplemental
opening testimony due in Oregon gas rate case (October 9, 2009),
Petitions to intervene due in Oregon gas rate case (October 26, 2009),
and expected Idaho general rate case filing (October 28, 2009).

COMPANY & MARKET DATA
Price $28.79
Price Target, Excl Dividends (YE09) $30.00
Prior Target $28.00
52 - Week Range $20.91-$33.89
Mkt. Capitalization (mill) $1,360
Enterprise Value (mill) $2,501
FD Shares Outstanding (mill) 47
Avg. Daily Trading Vol. (000) 366
Book Value per Share (1Q09A) $28.03
Dividend (FY09E) / Yield $1.20 4.2%
FY2007A FY2008A FY2009E
Revenue (mill) $879 $992 $1,059
1Q EPS $0.56 $0.48 $0.40
2Q EPS $0.42 $0.35 $0.58
3Q EPS $0.62 $1.14
4Q EPS $0.23 $0.26
EPS $1.86 $2.22 $2.56
Prior EPS
Consensus EPS $2.37
P/E 15.5x 13.0x 11.2x
EV/EBITDA 9.8x 8.2x 7.7x
P/FCF -59.3x -59.3x -54.3x
ESTIMATES
Volume in Millions
0.0
1.0
2.0
3.0
$20
$25
$30
$35
$40
Dec-06 Apr-07 Aug-07 Dec-07 Apr-08 Aug-08 Dec-08 Apr-09 Aug-09
50-day average
200-day average
Chart data: Bloomberg
Brian J. Russo, CFA
646-432-6312
[e-mail]
James Berry
212-409-2685
[e-mail]
Power and Utilities Sector
Company Update

September 16, 2009
NEUTRAL
Brian Russo 646.432.6312 IDACORP (IDA)

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APPENDIX A: IMPORTANT RESEARCH DISCLOSURES

ANALYST CERTIFICATION
I, Brian Russo, attest that the views expressed in this research report accurately reflect my personal views about the subject security
and issuer. Furthermore, no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or
views expressed in this research report.
The research analyst(s) primarily responsible for the preparation of this research report have received compensation based upon
various factors, including the firm’s total revenues, a portion of which is generated by investment banking activities.

COMPANY BACKGROUND
Headquartered in Boise, Idaho, IDACORP, Inc., (IDA) is a holding company formed in 1998 that is primarily engaged in the
generation, transmission, distribution, sale and purchase of energy. IDA serves over 466,000 retail customers across its 24,000sq
mile service territory in both Idaho and Oregon, and owns approximately 3,267MW of generating capacity. IDA’s principal operating
subsidiary is Idaho Power Company (IPC). The company’s unregulated utilities include IDACORP Financial (IFS) that invests in
affordable housing and real estate and Ida-West Energy Company (Ida-West) that operates small hydroelectric generation projects.
VALUATION METHODOLOGY
We value equities utilizing a multi-faceted approach which includes; sum-of-the-parts, net asset value, discounted cash flow, leading
P/E, EV/EBITDA.
RISKS
On top of normal economic and market risk factors that impact most all equities, Idacorp (IDA) is uniquely at risk to:
Because of IPC’s predominantly hydroelectric generating base and heavy reliance on hydroelectric generation, which can be
adversely affected by weather, reduced hydroelectric generation can reduce revenues and increase costs.
Continuing declines in stream flows and over-appropriation of water in Idaho may reduce hydroelectric generation and revenues and
increase costs.
Load growth in IPC’s service territory due to customer growth and demand for energy exposes it to greater market and operational risk
as increased reliance on purchased power to meet load requirements could increase costs and reduce earnings and cash flows.
IPC’s reliance on coal and natural gas to fuel its generating facilities exposes it to risk of increased market prices, which could
increase costs and reduced earnings.
Changes in temperature and precipitation can reduce power sales and revenues.
Climate change could affect customer demand and hydroelectric generation and lead to restrictions on generation resources.
If Idaho Public Utility Commission (IPUC), the Oregon Public Utility Commission (OPUC) or the Federal Energy Regulatory
Commission (FERC) grant less rate recovery in rate case filings than IPC needs to cover the costs of providing services, financial
results could be adversely impacted and economic expansion may be limited.
Conditions that may be imposed in connection with hydroelectric license renewals may require large capital expenditures and reduce
earnings and cash flows.
The cost of complying with environmental regulations related to air quality, water quality, natural resources and health and safety can
increase capital expenditures and operating costs and reduce earnings and cash flows.
IDACORP and its subsidiaries are subject to costs and other effects of legal and regulatory proceedings, settlements, investigations
and claims, including those that have arisen out of the western energy situation.
IPC’s business is subject to substantial governmental regulation and may be adversely affected by increased costs resulting from, or
liability under, existing or future regulations or requirements.
Increased capital expenditures can significantly affect liquidity.
As a holding company, IDACORP does not have its own operating income and must rely on the upstream cash flows from its
subsidiaries to pay dividends and make debt payments.
A downgrade in IDA’s credit ratings could negatively affect the company’s ability to access capital and increase their cost of
borrowing.
Adverse results of income tax audits could reduce earnings and cash flows.
Employee workforce factors, including the loss or retirement of key personnel, availability of qualified personnel and an aging
workforce, could increase costs and reduce earnings.
Brian Russo 646.432.6312 IDACORP (IDA)

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STOCK RATING DEFINITIONS
Buy: The stock’s return is expected to exceed 15% over the next twelve months.
Neutral: The stock’s return is expected to be plus or minus 15% over the next twelve months.
Sell: The stock’s return is expected to be negative 15% or more over the next twelve months.

Investment Ratings are determined by the ranges described above at the time of initiation of coverage, a change in risk, or a change
in target price. At other times, the expected returns may fall outside of these ranges because of price movement and/or volatility. Such
interim deviations from specified ranges will be permitted but will become subject to review.

RATINGS DISPERSION AND BANKING RELATIONSHIPS (as of 09/01/09)
Buy 65% (8% are banking clients)
Neutral 31% (0% are banking clients)
Sell 4% (0% are banking clients)

INVESTMENT RATING AND PRICE TARGET HISTORY

Brian Russo 646.432.6312 IDACORP (IDA)

Ladenburg Thalmann & Co. Inc. Page - 4 -
COMPANY SPECIFIC DISCLOSURES:
Ladenburg Thalmann & Co. Inc. does not make a market in subject company. Ladenburg Thalmann & Co. Inc. has neither had an
investment banking relationship with, nor received investment banking fees from the subject company in the past 12 months. Neither
the Analyst, nor members of the Analyst’s household own any securities issued by the subject Company.

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