COC IDA_RBC_Note_2009_10_29_3Q09.pdf

COMPANY UPDATE | COMMENT
OCTOBER 29, 2009
IDACORP, Inc.(NYSE: IDA)
Solid Quarter; Rate Case Settlement Pending
Sector Perform
Above Average Risk
Price:28.44
Shares O/S (MM):45.2
Dividend:1.20
NAVPS:33.00
Debt to Cap:50%
Price Target:33.00
Implied All-In Return:20%
Market Cap (MM):1,285
Yield:4.2%
P/NAVPS:0.9x
Priced at market close on October 29, 2009 ET
IDA reported 3Q09 adjusted EPS of $1.16 vs. consensus of
$1.08 and our estimate of $0.98.
Maintaining CNAV and target price of $33, Sector Perform rating
We believe that IDA remains well positioned to capture modest growth amidst
difficult economic conditions with its longer-term transmission projects and new
CCGT plant, Langley Gulch. With its improved regulatory environment and
successful cost control efforts, we expect IDA to perform in line with its peers.
Hydroelectric generation up 10% over 3Q08
The strong quarter was marked by strong hydrology, although the precipitation
that benefited hydro conditions led to lower irrigation demand. Overall electricity
demand remains weak, but the impact is lessened by the decoupling mechanism
in ID. Customer counts increased slightly for the quarter. IDA was positively
impacted by a lower effective tax rate due to settlements and bonus depreciation.
The new quarterly allocations for the PCA caused a $4.2MM negative impact on
results as compared to 3Q08.
Rate Case settlement pending
IDA announced its intent to file a General Rate Case in 2009, but has chosen to
settle with interveners rather than submit an official rate case. This strategy could
prove to be more efficient as it seemingly cuts out a certain degree of red tape. If
we don't know what IDA asked for, we don't know how regulators are thinking
about the business. The value of the settlement itself can be evaluated based on
the numbers, but subverting the official process makes it difficult to gauge
regulatory sentiment, which has been an important part of the IDA story in recent
years. The settlement is expected to be filed in early November.
DOE awarded IDA $47MM for smart grid implementation
IDA has been ahead of the curve with its pilot smart metering program, but these
DOE funds should help the company bring the program to the next level.
Integration of the meters into a smart grid will add further capabilities for
monitoring energy use and for developing new pricing structures.
Adjusting estimates
We are adjusting estimates to reflect 3Q09 results and hydrology, but we expect
further changes in the next couple of weeks when the General Rate Case
settlement is announced. 2009E to $2.35 from $2.19, 2010E to $2.40 from $2.26,
2011E to $2.43 from $2.25.
Priced as of prior trading day's market close, EST (unless otherwise noted).
RBC Capital Markets Corp.
Lasan Johong (Analyst)
[phone]; [e-mail]
Emily Christy (Associate)
[phone]; [e-mail]
Ella Vuernick (Associate)
[phone]; [e-mail]
FY Dec 2008A 2009E 2010E 2011E
Adj EPS - FD 2.16 2.35 2.40 2.43
Prev.2.19 2.26 2.25
P/AEPS 13.2x 12.1x 11.9x 11.7x
Adj CFPS - FD 3.59 6.05 4.60 4.60
Prev.5.60 4.22 4.19
P/ACFPS 7.9x 4.7x 6.2x 6.2x
EBITDA (MM) 292.0 325.0 396.0 423.0
Prev.323.0 388.0 412.0
FCFPS - FD (2.51) 1.46 (2.77) (2.18)
Prev.0.42 (2.94) (2.40)
P/FCF NM 19.5x NM NM
Adj EPS - FD Q1 Q2 Q3 Q4
2008 0.48A 0.35A 1.14A 0.19A
2009 0.40A 0.58A 1.16A 0.21E
Prev.0.98E 0.22E
Adj CFPS - FD
2008 1.02A 1.08A 1.19A 0.33A
2009 1.74A 1.65A 1.94A 0.72E
Prev.1.48E 0.73E
EBITDA (MM)
2008 71.0A 66.0A 112.0A 42.0A
2009 69.0A 78.0A 116.0A 63.0E
Prev.111.0E 65.0E
All values in USD unless otherwise noted.
For Required Conflicts Disclosures, see Page 5.
2
Valuation
Our target price and our calculated net-asset-value (CNAV) is $33. We determine our CNAV based on a full discounted cash flow
model using an average of Free Cash Flow to the Firm and Free Cash Flow to Equity. We apply a multistage growth rate with a
terminal multiple of 12.3x based on a dynamic WACC with an initial rate of 7.41%. The terminal value is calculated approximately 25
years forward.
As a pure-play electric utility with a significant hydroelectric generation fleet, IDA operates in a heavily regulated environment.
Considering the risk management policies of IDA, the Idaho regulatory structure, solid operations and the above-average population
growth for the service territory, the company continues to perform as expected.
Price Target Impediment
Volatile hydrology, unfavorable regulatory decisions, poor growth project selections, operational setbacks, changes in credit ratings,
environmental regulations, cost overruns with the capex projects, access to capital markets, and weather.
Company Description
IDACORP is a holding company for the following subsidiaries: Idaho Power Company, IDACORP Financial, and Ida-West Energy.
Idaho Power Company (IPC) is a regulated utility serving approximately 472,000 customers in Idaho and western Oregon. Through its
regulated operations, IPC generates, purchases, transmits, distributes, and sells electric power. Through its 17 hydroelectric power
plants, IPC is one of few utilities with a predominant hydro generating base. The company also owns and operates coal and natural
gas-fired plants to round out its approximately 3,300MW power portfolio. Additionally, IPC has 4,600 miles of transmission lines and
26,000 miles of distribution lines. IDACORP Financial is an investment company with a focus on affordable housing and historic
preservation projects. Ida-West Energy is an independent power project development company with 44.6MW of combined interest in
nine hydroelectric power plants in California and Idaho.
IDACORP, Inc.October 29, 2009
3
Ticker Symbol IDA
Year Quarter EPS Oper. CF EBITDA FCF EFCF Capital Type Amount %Type % of Total
Assumptions Rate 09/2009 ($MM)
2008 1 $0.48 $1.02 $71 ($0.63)$0.24 Equity Capital $1,380.5 50%Equity 5.33%
DCF Start Year 2009 2008 2 $0.35 $1.08 $66 ($0.02)$0.36 Preferred Stock $0.0 0%Preferred 0.00%
DCF Start Month 10 2008 3 $1.14 $1.19 $112 $0.64 $3.85 Total Debt $1,367.0 50%Debt 2.09%
Current Beta of Company 0.80 2008 4 $0.19 $0.33 $42 ($2.47)($4.20) Total $2,747.4 100% WACC 7.41%
Static or Variable Beta (S/V)V Total 5 $2.16 $3.59 $292 ($2.51)$0.17
Normalized Long-Term Risk-free Rate 5.00%
Market Return 12.00%2009 1 $0.40 $1.74 $69 $0.43 $2.00 Terminal Value Multiple Terminal Value Multiple
Current Equity Discount Rate 10.60%2009 2 $0.58 $1.65 $78 $0.64 ($1.31)Multiple of FCF 12.3 x Multiple of EFCF 11.4 x
Current Cost of Preferred Stock 0.00%2009 3 $1.16 $1.94 $116 $1.67 $0.32
Current Cost of Debt Capital 6.45%2009E 4 $0.21 $0.72 $63 ($1.27)$0.21 Term. Val. in Months 288 Term. Val. in Months 288
Current WACC 7.41% Total 5 $2.35 $6.05 $325 $1.46 $1.22
Basic Shares Outstanding (MM) 47.1 Category Valuation Category Valuation
Diluted Shares Outstanding (MM)47.1 09/2009
Assumed Tax Rate 35%Calc. Ent. Value $2,804.6 Equity FCF Value $1,607.1
Assumed Inflation Rate 3.50%Preferred Stock $0.0 Cash Balance @ Start
Minimum Cash Balance Required $25 2010E Total Debt ($1,338.1) of Valuation $28.9
Revolver Overflow Alert Total 5 $2.40 $4.60 $396 ($2.77)($0.47) Equity Value $1,466.5 Equity Value $1,636.0
Current Stock Price of IDA ($/Sh.)$28.44 Shares NAV Average Shares NAV
Current Book Value per Share $29.28 Basic $31.16 $32.96 Basic $34.76
Current Price-to-Book Ratio 1.0 x Diluted $31.11 $32.91 Diluted $34.70
Current Market Cap ($MM)$1,338.6 2011E
Current Market Ent. Value ($MM)$2,705.6 Total 5 $2.43 $4.60 $423 ($2.18)($0.38)Ratios P/NAV P/NAV Ratios P/NAV
Per Share Estimates Capital Structure Cost of Capital
Net Asset Value Cash Flow Valuation
Current Market Ent. Value Per Sh. $57.48 Basic 0.9 x 0.9 x Basic 0.8 x
Current Book Ent. Value ($MM)$2,747.4 Diluted 0.9 x 0.9 x Diluted 0.8 x
Current Book Ent. Value Per Sh.$58.37
Ratios P/Book
Names of Regions Name Basic 1.0 x
Region 1 Idaho Power Company (IPC)
Region 2 Idacorp Financial Services (IFS)Criteria Multiple 2010ERow #Multiple Analysis
Region 3 Idacorp Energy (IE)Ratios
Region 4 Other Year P/EP/Oper. CFEV/EBITDA EV/FCF P/EFCF Net Debt per Share N/A $41.38 497 N/A
Basic Shares Out N/A 48.4 166 N/A
2008 13.2 x 7.9 x 9.3 x N/M 168.7 x P/E 13.8 x $2.40 174 $33.00
2009E 12.1 x 4.7 x 8.3 x 39.4 x 23.2 x P/CF 7.2 x $4.60 363 $33.00
2010E 11.9 x 6.2 x 6.8 x N/M N/M EV/EBITDA 8.8 x $8.41 190 $33.00
2011E 11.7 x 6.2 x 6.4 x N/M N/M Average $33.00
Sources: Company reports; RBC Capital Markets estimates; Lasan Johong [phone] [e-mail]; Emily Christy [phone], [e-mail]; Ella Vuernick [phone], [e-mail]
IDACORP, Inc.October 29, 2009
4
IDA 2008 2008 2008 2008 2008 2009 2009 2009 2009 2009 2010 2011
SUMMARY FINANCIALS ($ Millions)Q1A Q2A Q3A Q4A 2008 Q1A Q2A Q3A Q4E 2009E 2010E 2011E
GENERATION (MWh)3,642.0 3,493.3 4,035.0 3,201.1 14,371.3 3,549.6 4,119.8 4,144.5 3,140.4 14,954.3 13,781.4 13,866.6
INCOME STATEMENT
TOTAL NET REVENUE $213.4 $230.2 $299.7 $217.0 $960.4 $229.1 $243.6 $324.5 $180.4 $977.6 $932.7 $1,077.4
DOC (Incl. Cost of Fuel and Plant O&M)$95.9 $103.8 $110.0 $107.4 $417.0 $129.4 $137.5 $137.2 $107.5 $511.6 $456.4 $511.4
Other Direct Operating Costs $50.1 $54.9 $84.3 $60.9 $250.2 $37.9 $30.2 $79.1 $15.7 $162.9 $107.0 $173.6
General & Administrative Expenses $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
DIRECT OPERATING COSTS $146.0 $158.7 $194.3 $168.3 $667.2 $167.3 $167.6 $216.3 $123.3 $674.5 $563.4 $685.1
GROSS PROFIT $67.5 $71.5 $105.4 $48.8 $293.2 $61.8 $76.0 $108.2 $57.2 $303.2 $369.2 $392.3
Depreciation, Amortization and Expl. Exp.$25.8 $26.6 $25.7 $24.0 $102.1 $26.0 $26.8 $28.8 $26.8 $108.4 $112.1 $116.7
Other Operating Costs $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
TOTAL OPERATING COSTS $171.7 $185.3 $220.0 $192.3 $769.3 $193.3 $194.5 $245.1 $150.1 $782.9 $675.5 $801.8
OPERATING INCOME $41.7 $44.9 $79.7 $24.7 $191.1 $35.8 $49.2 $79.4 $30.4 $194.8 $257.2 $275.6
Non-Operating Expenses ($0.0)($1.0)($4.5)$5.5 ($0.0)($6.6)($0.6)($5.6)($5.5)($18.2)($26.6)($30.5)
EARNINGS BEFORE INTEREST & TAXES $41.7 $45.9 $84.2 $19.2 $191.1 $42.4 $49.7 $85.0 $35.8 $212.9 $283.8 $306.1
Net Interest Expense, Incl. TCP Dividend $17.5 $17.1 $18.5 $20.0 $73.1 $17.5 $18.2 $18.6 $23.3 $77.5 $103.6 $113.7
PRE-TAX INCOME $24.3 $28.9 $65.7 ($0.7)$118.0 $24.9 $31.6 $66.4 $12.5 $135.4 $180.2 $192.4
Income Tax Expense $5.6 $6.9 $15.8 ($9.1)$19.2 $6.8 $5.2 $13.7 $2.5 $28.2 $63.1 $67.3
Minority Interest, Pref. Dividend & Other $0.0 $0.0 $0.0 $0.0 $0.0 ($0.2)$0.1 $0.2 $0.2 $0.4 $0.9 $0.9
NET INCOME PRE-X-ITEMS $21.7 $15.7 $51.7 $8.9 $98.0 $18.9 $27.5 $54.5 $9.8 $110.6 $116.2 $124.2
Extraordinary Items & Other $0.0 ($1.8)$0.0 $1.4 ($0.4)$0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
NET INCOME $21.7 $17.5 $51.7 $7.4 $98.4 $18.9 $27.5 $54.5 $9.8 $110.6 $116.2 $124.2
NET INCOME PRE-X-ITEMS PER SHARE $0.48 $0.35 $1.14 $0.19 $2.16 $0.40 $0.58 $1.16 $0.21 $2.35 $2.40 $2.43
Extraordinary Items & Other $0.00 ($0.04)$0.00 $0.03 ($0.01)$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
NET INCOME PER SHARE $0.48 $0.39 $1.14 $0.16 $2.17 $0.40 $0.58 $1.16 $0.21 $2.35 $2.40 $2.43
CASH FLOW STATEMENT
Adjustments to Revenue and Income $0.0 $0.0 ($3.8)($3.7)($7.4)$0.0 $9.9 ($1.2)$0.0 $8.8 $0.0 $0.0
Depreciation, Amortization and Expl. Exp.$30.8 $32.5 $29.9 $29.2 $122.4 $31.2 $24.3 $31.1 $26.8 $113.3 $112.1 $116.7
Deferred Income Taxes $12.6 $4.2 ($0.7)($11.4)$4.7 $14.7 ($7.1)$7.2 $4.0 $18.8 $16.0 $16.0
Other Operating Cash Flow Items ($19.4)($5.7)($23.6)($6.5)($55.1)$16.8 $23.0 ($0.2)($6.8)$32.8 ($21.3)($21.9)
Changes in Working Capital ($24.8)($15.9)$8.3 $6.0 ($26.4)($37.0)($11.3)$20.2 $0.0 ($28.1)$0.0 $0.0
OPERATING CASH FLOW $20.9 $32.6 $61.9 $21.1 $136.5 $44.6 $66.2 $111.7 $33.8 $256.2 $223.0 $235.0
Cap. Ex., Acquisitions, Investments ($65.1)($57.2)($51.9)($37.4)($211.6)($50.4)($59.3)($52.0)($75.9)($237.7)($254.0)($257.7)
Proceeds from Sales $0.0 $6.5 $2.2 $0.1 $8.8 $9.8 $3.7 $0.7 $0.0 $14.3 $0.0 $0.0
Other Investing Cash Flow Items $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 ($36.4)($36.4)($171.3)($167.7)
INVESTING CASH FLOW ($65.1)($50.7)($49.7)($37.3)($202.8)($40.6)($55.6)($51.3)($112.3)($259.8)($425.3)($425.3)
Net Equity Financing $2.2 $1.8 $8.2 $38.3 $50.6 $1.1 $2.5 $11.8 $0.0 $15.3 $80.0 $80.0
Net Debt Capital & Other Financing $55.3 $31.4 $163.2 ($176.4)$73.5 $90.7 ($71.6)($42.8)$88.7 $65.1 $180.4 $171.5
Financing Costs $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Common and Preferred Dividends ($13.5)($13.5)($13.5)($13.7)($54.2)($14.4)($13.9)($14.2)($14.1)($56.5)($58.1)($61.2)
Other Financing Cash Flow Items ($0.4)($0.0)($1.3)($0.9)($2.6)($0.9)($0.8)($2.6)$0.0 ($4.2)$0.0 $0.0
FINANCING CASH FLOW $43.6 $19.7 $156.6 ($152.7)$67.2 $76.6 ($83.8)($47.7)$74.6 $19.6 $202.4 $190.3
CHANGE IN CASH ($0.6)$1.5 $168.8 ($168.9)$0.9 $80.3 ($73.1)$12.9 ($3.9)$16.2 ($0.0)($0.0)
OP. CF BEFORE W/C PER SHARE $1.02 $1.08 $1.19 $0.33 $3.59 $1.74 $1.65 $1.94 $0.72 $6.05 $4.60 $4.60
BALANCE SHEET
Cash and Equivalents $7.4 $8.9 $57.7 $8.8 $8.8 $89.1 $16.0 $28.9 $25.0 $25.0 $25.0 $25.0
Accounts Receivables $74.4 $74.7 $83.7 $91.6 $91.6 $84.5 $83.9 $94.7 $94.7 $94.7 $94.7 $94.7
Inventory, Fuels and Materials $64.4 $74.0 $75.7 $67.0 $67.0 $66.7 $74.6 $72.9 $72.9 $72.9 $72.9 $72.9
Other Current Assets $323.1 $308.7 $299.4 $297.5 $297.5 $264.6 $274.6 $277.1 $277.1 $277.1 $277.1 $277.1
TOTAL CURRENT ASSETS $469.4 $466.3 $516.5 $464.8 $464.8 $505.0 $449.1 $473.7 $469.8 $469.8 $469.8 $469.8
TOTAL PP&E $2,649.0 $2,687.8 $2,717.2 $2,758.2 $2,758.2 $2,768.8 $2,794.5 $2,847.1 $2,929.7 $2,929.7 $3,243.0 $3,551.6
Other Long-term Assets $591.1 $594.5 $617.7 $799.8 $799.8 $795.9 $799.1 $796.5 $806.4 $806.4 $828.6 $851.4
TOTAL ASSETS $3,709.5 $3,748.6 $3,851.3 $4,022.8 $4,022.8 $4,069.7 $4,042.7 $4,117.3 $4,205.9 $4,205.9 $4,541.4 $4,872.8
Accounts Payables $302.0 $348.1 $270.1 $248.0 $248.0 $203.7 $145.1 $124.9 $124.9 $124.9 $124.9 $124.9
Short-term Debt & Current Portions $11.3 $8.6 $7.8 $86.5 $86.5 $81.5 $83.5 $84.1 $165.9 $165.9 $258.7 $186.0
Other Current Liabilities $100.5 $95.2 $108.5 $61.1 $61.1 $75.6 $62.0 $86.0 $86.0 $86.0 $86.0 $86.0
TOTAL CURRENT LIABILITIES $413.9 $452.0 $386.5 $395.7 $395.7 $360.8 $290.6 $295.0 $376.8 $376.8 $469.6 $396.9
Long-term Debt and Other Obligations $1,155.3 $1,153.5 $1,273.0 $1,183.5 $1,183.5 $1,279.5 $1,283.6 $1,282.9 $1,324.0 $1,324.0 $1,411.6 $1,655.8
Deferred Income Taxes $479.6 $468.9 $473.8 $515.7 $515.7 $511.3 $513.0 $529.0 $533.0 $533.0 $549.0 $565.0
Other Long-term Liabilities $443.2 $449.6 $447.3 $625.6 $625.6 $605.4 $625.0 $625.7 $591.5 $591.5 $591.5 $591.5
TOTAL LONG-TERM LIABILITIES $2,078.1 $2,072.0 $2,194.1 $2,324.7 $2,324.7 $2,396.2 $2,421.6 $2,437.6 $2,448.5 $2,448.5 $2,552.1 $2,812.3
Long-term Financings $0.0 $0.0 $0.0 $0.0 $0.0 $4.0 $4.1 $4.3 $4.5 $4.5 $5.5 $6.4
TOTAL LIABILITIES $2,492.0 $2,523.9 $2,580.6 $2,720.4 $2,720.4 $2,761.0 $2,716.3 $2,736.8 $2,829.8 $2,829.8 $3,027.1 $3,215.6
Equity and Additional Paid-in Capital $678.7 $682.1 $691.2 $729.6 $729.6 $731.8 $734.9 $747.4 $747.4 $747.4 $827.4 $907.4
Retained Earnings $545.9 $549.8 $588.0 $581.6 $581.6 $586.4 $599.7 $640.0 $635.7 $635.7 $693.8 $756.8
Other Stockholders' Equity ($7.2)($7.3)($8.5)($8.7)($8.7)($9.5)($8.2)($7.0)($7.0)($7.0)($7.0)($7.0)
TOTAL STOCKHOLDERS' EQUITY $1,217.5 $1,224.6 $1,270.7 $1,302.4 $1,302.4 $1,308.7 $1,326.4 $1,380.5 $1,376.1 $1,376.1 $1,514.3 $1,657.3
TOTAL LIABILITIES & EQUITY $3,709.5 $3,748.6 $3,851.3 $4,022.8 $4,022.8 $4,069.7 $4,042.7 $4,117.3 $4,205.9 $4,205.9 $4,541.4 $4,872.8
Sources: Company reports; RBC Capital Markets estimates. Lasan Johong - [phone]; [e-mail]
IDACORP, Inc.October 29, 2009
5
Required Disclosures
Conflicts Disclosures
The analyst(s) responsible for preparing this research report received compensation that is based upon various factors, including total
revenues of the member companies of RBC Capital Markets and its affiliates, a portion of which are or have been generated by
investment banking activities of the member companies of RBC Capital Markets and its affiliates.
A member company of RBC Capital Markets or one of its affiliates received compensation for products or services other than
investment banking services from IDACORP, Inc. during the past 12 months. During this time, a member company of RBC Capital
Markets or one of its affiliates provided non-securities services to IDACORP, Inc.
RBC Capital Markets is currently providing IDACORP, Inc. with non-securities services.
RBC Capital Markets has provided IDACORP, Inc. with non-securities services in the past 12 months.
The author is employed by RBC Capital Markets Corp., a securities broker-dealer with principal offices located in New York, USA.
Explanation of RBC Capital Markets Equity Rating System
An analyst's 'sector' is the universe of companies for which the analyst provides research coverage. Accordingly, the rating assigned to
a particular stock represents solely the analyst's view of how that stock will perform over the next 12 months relative to the analyst's
sector average.
Ratings
Top Pick (TP):Represents best in Outperform category; analyst's best ideas; expected to significantly outperform the sector over 12
months; provides best risk-reward ratio; approximately 10% of analyst's recommendations.
Outperform (O):Expected to materially outperform sector average over 12 months.
Sector Perform (SP):Returns expected to be in line with sector average over 12 months.
Underperform (U):Returns expected to be materially below sector average over 12 months.
Risk Qualifiers (any of the following criteria may be present):
Average Risk (Avg):Volatility and risk expected to be comparable to sector; average revenue and earnings predictability; no
significant cash flow/financing concerns over coming 12-24 months; fairly liquid.
Above Average Risk (AA):Volatility and risk expected to be above sector; below average revenue and earnings predictability; may
not be suitable for a significant class of individual equity investors; may have negative cash flow; low market cap or float.
Speculative (Spec):Risk consistent with venture capital; low public float; potential balance sheet concerns; risk of being delisted.
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For the purpose of ratings distributions, regulatory rules require member firms to assign ratings to one of three rating categories - Buy,
Hold/Neutral, or Sell - regardless of a firm's own rating categories. Although RBC Capital Markets' ratings of Top Pick/Outperform,
Sector Perform and Underperform most closely correspond to Buy, Hold/Neutral and Sell, respectively, the meanings are not the same
because our ratings are determined on a relative basis (as described above).
Distribution of Ratings
RBC Capital Markets, Equity Research
Investment Banking
Serv./Past 12 Mos.
Rating Count Percent Count Percent
BUY[TP/O] 574 48.80 156 27.18
HOLD[SP] 519 44.10 106 20.42
SELL[U] 83 7.10 5 6.02
IDACORP, Inc.October 29, 2009
6
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hyperlink https://www2.rbccm.com/cmonline/index.html. The information regarding Short-Term trading calls accessible through the
database does not constitute a research report. These Short-Term trading calls are not formal ratings and reflect the research analyst's
views with respect to market and trading events in the coming days or weeks and, as such, may differ from the price targets and
recommendations in our published research reports reflecting the research analyst's views of the longer-term (one year) prospects of
the subject company. Thus, it is possible that a subject company's common equity that is considered a long-term 'sector perform' or
even an 'underperform' might be a Short-Term buying opportunity as a result of temporary selling pressure in the market; conversely, a
subject company's common equity rated a long-term 'outperform' could be considered susceptible to a Short-Term downward price
correction.
Analyst Certification
All of the views expressed in this report accurately reflect the personal views of the responsible analyst(s) about any and all of the
subject securities or issuers. No part of the compensation of the responsible analyst(s) named herein is, or will be, directly or
indirectly, related to the specific recommendations or views expressed by the responsible analyst(s) in this report.
Disclaimer
RBC Capital Markets is the business name used by certain subsidiaries of Royal Bank of Canada, including RBC Dominion Securities Inc., RBC Capital Markets
Corporation, Royal Bank of Canada Europe Limited and Royal Bank of Canada - Sydney Branch. The information contained in this report has been compiled by RBC
IDACORP, Inc.October 29, 2009
7
Capital Markets from sources believed to be reliable, but no representation or warranty, express or implied, is made by Royal Bank of Canada, RBC Capital Markets, its
affiliates or any other person as to its accuracy, completeness or correctness. All opinions and estimates contained in this report constitute RBC Capital Markets'
judgement as of the date of this report, are subject to change without notice and are provided in good faith but without legal responsibility. Nothing in this report
constitutes legal, accounting or tax advice or individually tailored investment advice. This material is prepared for general circulation to clients and has been prepared
without regard to the individual financial circumstances and objectives of persons who receive it. The investments or services contained in this report may not be
suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about the suitability of such investments or services. This
report is not an offer to sell or a solicitation of an offer to buy any securities. Past performance is not a guide to future performance, future returns are not guaranteed,
and a loss of original capital may occur. RBC Capital Markets research analyst compensation is based in part on the overall profitability of RBC Capital Markets, which
includes profits attributable to investment banking revenues. Every province in Canada, state in the U.S., and most countries throughout the world have their own laws
regulating the types of securities and other investment products which may be offered to their residents, as well as the process for doing so. As a result, the securities
discussed in this report may not be eligible for sale in some jurisdictions. This report is not, and under no circumstances should be construed as, a solicitation to act as
securities broker or dealer in any jurisdiction by any person or company that is not legally permitted to carry on the business of a securities broker or dealer in that
jurisdiction. To the full extent permitted by law neither RBC Capital Markets nor any of its affiliates, nor any other person, accepts any liability whatsoever for any
direct or consequential loss arising from any use of this report or the information contained herein. No matter contained in this document may be reproduced or copied
by any means without the prior consent of RBC Capital Markets.
Additional information is available on request.
To U.S. Residents:
This publication has been approved by RBC Capital Markets Corporation (member FINRA, NYSE), which is a U.S. registered broker-dealer and which accepts
responsibility for this report and its dissemination in the United States. Any U.S. recipient of this report that is not a registered broker-dealer or a bank acting in a broker
or dealer capacity and that wishes further information regarding, or to effect any transaction in, any of the securities discussed in this report, should contact and place
orders with RBC Capital Markets Corporation.
To Canadian Residents:
This publication has been approved by RBC Dominion Securities Inc.(member IIROC). Any Canadian recipient of this report that is not a Designated Institution in
Ontario, an Accredited Investor in British Columbia or Alberta or a Sophisticated Purchaser in Quebec (or similar permitted purchaser in any other province) and that
wishes further information regarding, or to effect any transaction in, any of the securities discussed in this report should contact and place orders with RBC Dominion
Securities Inc., which, without in any way limiting the foregoing, accepts responsibility for this report and its dissemination in Canada.
To U.K. Residents:
This publication has been approved by Royal Bank of Canada Europe Limited ('RBCEL') which is authorized and regulated by Financial ServicesAuthority ('FSA'), in
connection with its distribution in the United Kingdom. This material is not for general distribution in the United Kingdom to retail clients, as defined under the rules of
the FSA. However, targeted distribution may be made to selected retail clients of RBC and its affiliates. RBCEL accepts responsibility for this report and its
dissemination in the United Kingdom.
To Persons Receiving This Advice in Australia:
This material has been distributed in Australia by Royal Bank of Canada - Sydney Branch (ABN 86 076 940 880, AFSL No. 246521). This material has been prepared
for general circulation and does not take into account the objectives, financial situation or needs of any recipient. Accordingly, any recipient should, before acting on
this material, consider the appropriateness of this material having regard to their objectives, financial situation and needs. If this material relates to the acquisition or
possible acquisition of a particular financial product, a recipient in Australia should obtain any relevant disclosure document prepared in respect of that product and
consider that document before making any decision about whether to acquire the product.
To Hong Kong Residents:
This publication is distributed in Hong Kong by RBC Investment Services (Asia) Limited and RBC Investment Management (Asia) Limited, licensed corporations
under the Securities and Futures Ordinance or, by Royal Bank of Canada, Hong Kong Branch, a registered institution under the Securities and Futures Ordinance. This
material has been prepared for general circulation and does not take into account the objectives, financial situation, or needs of any recipient. Hong Kong persons
wishing to obtain further information on any of the securities mentioned in this publication should contact RBC Investment Services (Asia) Limited, RBC Investment
Management (Asia) Limited or Royal Bank of Canada, Hong Kong Branch at 17/Floor, Cheung Kong Center, 2 Queen's Road Central, Hong Kong (telephone number
is 2848-1388).
To Singapore Residents:
This publication is distributed in Singapore by RBC (Singapore Branch) and RBC (Asia) Limited, registered entities granted offshore bank status by the Monetary
Authority of Singapore. This material has been prepared for general circulation and does not take into account the objectives, financial situation, or needs of any
recipient. You are advised to seek independent advice from a financial adviser before purchasing any product. If you do not obtain independent advice, you should
consider whether the product is suitable for you. Past performance is not indicative of future performance.
®Registered trademark of Royal Bank of Canada. RBC Capital Markets is a trademark of Royal Bank of Canada. Used under license.
Copyright © RBC Capital Markets Corporation 2009 - Member SIPC
Copyright © RBC Dominion Securities Inc. 2009 - Member CIPF
Copyright © Royal Bank of Canada Europe Limited 2009
Copyright © Royal Bank of Canada 2009
All rights reserved
IDACORP, Inc.October 29, 2009