IDA123011.pdf

Please refer to pages 5-6 of this report for detailed disclosure and certification information.
* D. A. Davidson & Co. makes a market in this security.
Institutional Equity Research

IDACORP, INC.
December 30, 2011 IDA* – NYSE

Rating: Buy
Price: (12/30/11) $42.45
Price Targets: 12-18 month: ↑ $48.50
5-year: ↑ $56.00

Industry:
Utilities

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

Michael Bates
Research Associate
406.791.7216
[e-mail]

Raising Target on Constructive Regulatory Orders and EPS Outlook.
 Stock appears attractive. During the last week of 2011, the Idaho Public Utilities
Commission (IPUC) approved two stipulated agreements involving Idaho Power,
the main subsidiary of IDACORP, Inc. Coupling these accommodative orders
with the pending single issue rate case to rate base the ~$397 million Langley
Gulch power plant (a 300-MW gas-fired generating facility that should begin
commercial operation by mid-2012), we find the shares of IDACORP attractive for
purchase and reiterate our BUY rating. A likely dividend increase announcement
after the upcoming January 19th Board meeting (the first increase in nearly eight
years, and first of several likely years of double-digit dividend hikes) points to an
additional plus for shareholders.
 Mechanism setting a floor on ROE was renewed. The IPUC approved an
extension and modification of a 2010 agreement, which set a 9.5% floor on year-
end shareholders’ equity and provided a mechanism for profit sharing with
ratepayers. We believe this stabilizing mechanism means earnings from the
company’s Idaho jurisdiction (approximately 95% of regulated results) will be a
minimum of ~$3.25 per share in 2012.
 3.4% net rate increase slated for January 1, 2012. The IPUC also approved a
$34 million rate increase, providing a 7.86% rate of return on an Idaho-
jurisdictional rate base of ~$2.36 billion. While no ROE or equity ratios were
specified in the approved stipulation, they approximate 10% and 50%,
respectively.
 Establishing a 2013 forecast. After receiving regulatory approval of the ROE
floor, management reiterated a 2011 EPS guidance range of $3.35-$3.45. This
reiteration was made even though Idaho Power was raising the consideration it
would pay to ratepayers from the $10 million level to $15 million for the IPUC’s
approval of the stipulation. We have reworked our earnings model and are
maintaining our 2011 and 2012 EPS estimates of $3.39 and $3.25, respectively.
As our confidence is buoyed, we are initiating a 2013 EPS of $3.45, helped by a
full year of the expected rate basing of Langley Gulch.
 Increasing our 12-18 month price target and reiterating our BUY rating. We
are raising our target price from $47.50 to $48.50, which equates to ~14.5x the
average of our 2012 and 2013 EPS estimates.

Valuation Data
Long-term growth rate (E) 5%
Total Debt/Cap (9/30/11) 48.2% Cash per share (9/30/11) $0.63 Book value per share (9/30/11) $33.29 Dividend (yield) $1.20 (2.8%) Return on Equity (T-T-M) 11.2%

Trading Data
Shares outstanding (M) 49.8
Market Capitalization ($M) $2,113
52-week range $33.88 - $42.66
Average daily volume (3 mos.) (K) 308
Float 100%
Index Membership S&P 400

FY (Dec) 2010A 2011E Previous 2012E Previous
Revenue ($M) Q1 (Mar) $253.0 $251.5 A - $263.2 $261.0
Q2 (Jun) $241.8 $235.0 A - $245.7 $246.7 Q3 (Sep) $309.4 $309.6 A - $338.1 $337.5
Q4 (Dec) $232.0 $222.0 E $227.0 $253.2 $253.4
$1,036.0 $1,018.1 E $1,023.1 $1,100.1 $1,098.6
Price/Revenue 2.0x 2.1x 1.9x
EPS Q1 (Mar) $0.34 $0.60 A - $0.70 NC
Q2 (Jun) $0.82 $0.42 A - $0.52 $0.48
Q3 (Sep) $1.39 $2.16 A - $1.41 $1.43
Q4 (Dec) $0.41 $0.21 E NC $0.62 $0.64
$2.95 $3.39 E NC $3.25 NC
Price/EPS 14.4x 12.5x 13.0x
EBITDA ($M) Q1 (Mar) $69.0 $86.2 A - $95.5 $95.6
Q2 (Jun) $70.2 $69.1 A - $85.2 $82.6
Q3 (Sep) $122.8 $108.7 A - $142.7 $144.5
Q4 (Dec) $73.7 $65.3 E $65.6 $94.1 $96.0
$335.7 $329.4 E $329.6 $417.5 $418.7
EV/EBITDA 10.8x 11.0x 8.7x

D.A. Davidson & Co.
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Price Chart
Source: FactSet

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.

Potential Risks:
 Regulatory/Legislative. Changes in the regulatory and/or legislative environment could influence the utility’s business practices,
credit ratings/access to capital markets, rate structure, cost recovery, and ability to attract returns on its investments.
 Project delays or cancellations. The company is engaged in the development of projects which could be delayed or cancelled
for numerous reasons.
 Interest rates. Access to capital under competitive terms is critical to the company’s capital expenditure programs. Interest rate
increases may also lead to compression in utility stock prices.
 Economic and weather conditions may influence demand for IDACORP’s products and services.

34.00
35.00
36.00
37.00
38.00
39.00
40.00
41.00
42.00
43.00
IDACORP Inc. (IDA)
29-Dec-2010 to 30-Dec-2011 (Daily) High:42.66 Low: 33.88 Last: 42.45
01/03/11 02/01/11 03/01/11 04/01/11 05/02/11 06/01/11 07/01/11 08/01/11 09/01/11 10/03/11 11/01/11 12/01/11
0.4M
0.8M
1.2M
©FactSet Research Systems
Volume in millions
D.A. Davidson & Co.
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IDACORP, Inc. - Quarterly Financial Position

Source: Company reports

$ millions -- Fiscal year ends 12/31 2008 2009 2010 1Q'11 2Q'11 3Q'11
Current Assets:
Cash And Cash Equivalents 8.8 53.0 228.7 93.9 58.3 31.3
Receivables from Customers 64.7 76.8 62.1 66.6 61.7 75.5
Other Receivables 10.3 13.0 10.2 13.4 8.1 10.7
Accrued Unbilled Revenues 43.9 51.3 48.0 41.6 49.8 49.4
Materials And Supplies 50.1 48.1 45.6 45.9 45.7 46.6
Fuel Stock 16.9 25.6 27.5 33.6 48.4 49.7
Prepayments 10.1 11.1 11.1 9.2 11.0 11.2
Deferred Income Taxes 37.6 31.8 10.7 9.5 7.4 3.9
Other Current Assets 23.9 ##(0.2)##16.8 ##23.0 36.3 30.9
Total Current Assets 266.3 310.4 460.6 336.8 326.6 309.3
Electric Plant:
In Service (At Original Cost) 4,030.1 4,160.2 4,332.1 4,354.6 4,388.5 4,451.4
Accumulated Provision For Depreciation (1,505.1) (1,558.5) (1,614.0) (1,633.5) (1,653.3) (1,669.1)
In Service - Net 2,525.0 2,601.6 2,718.0 2,721.0 2,735.2 2,782.3
Construction Work In Progress 207.7 289.2 417.0 485.2 545.6 547.8
Held For Future Use 6.3 7.2 7.1 7.1 7.1 7.0
Other Property, Net Of Accum. Depreciation 19.2 19.0 19.3 19.2 19.1 19.0
Property, Plant And Equipment - Net 2,758.2 2,917.0 3,161.4 3,232.6 3,307.0 3,356.0
Investments And Other Property 198.6 195.3 202.9 202.6 198.3 192.3
Regulatory Assets Associated With Taxes 696.3 720.4 756.6 723.9 717.4 880.4
Other Assets 103.5 ##95.6 ##94.5 ##94.4 93.1 88.9
Total Assets 4,022.8 4,238.7 4,676.1 4,590.2 4,642.3 4,826.9
Current Liabilities:0.0 0.0 0.0 0.0
Long-Term Debt Due Within One Year 86.5 9.3 122.6 1.7 1.7 1.7
Notes Payable 151.3 53.8 66.9 74.1 66.4 51.5
Accounts Payable 96.8 83.8 103.1 64.6 87.0 90.1
Taxes Accured 0.0 10.2 0.0 4.1 22.9 8.8
Interest Accrued 16.7 20.1 23.9 23.8 22.3 23.4
Uncertain Tax Positions 4.1 0.0 74.4 73.7 56.9 0.0
Other Current Liabilities 40.3 ##41.1 ##58.1 ##89.3 82.5 79.0
Total Current Liabilities 395.7 218.2 449.1 331.3 339.7 254.5
Long-Term Debt 1,183.5 1,409.7 1,488.3 1,487.3 1,487.4 1,487.5
Deferred Income Taxes 515.7 574.5 566.5 577.6 586.9 750.0
Regulatory Liabilities - Other 276.3 287.8 298.1 296.8 307.7 332.7
Other 344.9 ##347.0 ##338.2 ##343.7 353.9 341.4
Common Equity 1,302.4 1,397.3 1,532.1 1,550.0 1,563.1 1,656.8
Noncontrolling Interest 4.4 4.2 3.9 3.6 3.7 4.0
Total Capitalization And Liabilities 4,022.8 ##4,238.7 ##4,676.1 ##4,590.2 4,642.3 4,826.9
Common Shares Outstanding - End 46.9 47.9 49.4 49.6 49.7 49.8
Total Debt - End 1,421.2 1,472.8 1,677.8 1,563.1 1,555.5 1,540.6
Total Debt - Average 1,422.5 1,451.1 1,530.8 1,620.4 1,559.3 1,548.0
Book Value Per Share $27.76 $29.17 $31.00 $31.28 $31.44 $33.29
Current Ratio 0.7 1.4 1.0 1.0 1.0 1.2
Capital Structure:
Common Equity 47.9% 48.8% 47.8% 49.8% 50.2% 51.9%
Preferred Equity 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Debt (Short-Term & Long-Term)52.1% 51.2% 52.2% 50.2% 49.8% 48.1%
Capitalization 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
D.A. Davidson & Co.
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IDACORP, Inc. - Historical and Projected Operating Results

Source: Company reports and D.A. Davidson & Co. estimates
$ millions -- Fiscal year ends 12/31 4Q'10 2010 1Q'11 2Q'11 3Q'11 4Q'11E 2011E 1Q'12E 2Q'12E 3Q'12E 4Q'12E 2012E 2013E
Operating Revenues:
Electric Utility:
General Business 196.1 870.4 203.3 194.3 270.4 200.1 868.0 214.0 206.9 285.9 215.6 922.5 961.8
Off System Sales 13.9 78.1 29.8 20.7 24.1 16.1 90.8 29.6 18.3 19.2 16.1 83.1 90.1
Provision for Sharing (18.1) (15.0) (33.1)
Other Revenues 21.4 84.5 17.9 18.9 31.6 20.0 88.5 18.5 19.5 32.0 20.5 90.5 92.5
Electric Utility $231.3 $1,033.1 $251.1 $233.9 $308.0 $221.2 $1,014.2 $262.2 $244.7 $337.1 $252.2 $1,096.1 $1,144.4
Diversified Operations 0.6 3.0 0.4 1.1 1.6 0.9 3.9 1.0 1.0 1.0 1.0 4.0 4.0
Total Revenues $232.0 $1,036.0 $251.5 $235.0 $309.6 $222.0 $1,018.1 $263.2 $245.7 $338.1 $253.2 $1,100.1 $1,148.4
Operating Expenses:
Power Supply Expenses $69.4 $354.7 $86.3 $71.6 $97.1 $68.9 $324.0 $88.0 $68.8 $84.9 $66.1 $307.8 $327.1
Other Operations And Maintenance 74.8 293.9 70.7 85.5 84.6 75.6 316.3 70.8 85.6 91.0 80.7 328.1 331.9
Energy Efficiency Programs 10.8 44.2 6.7 5.8 18.5 11.0 42.0 7.0 6.0 19.0 12.0 44.0 45.0
Depreciation 29.5 115.9 29.5 29.7 30.1 30.3 119.5 30.5 30.7 33.0 33.3 127.5 135.0
Taxes Other Than Income Taxes 6.9 24.0 7.2 7.2 7.3 7.1 28.8 7.2 5.4 5.7 5.5 23.9 25.2
Total Electric Utility Expenses $191.4 $832.7 $200.3 $199.8 $237.6 $192.8 $830.6 $203.5 $196.5 $233.7 $197.7 $831.3 $864.2
Diversified Operations 1.6 4.6 1.1 0.9 0.6 1.6 4.2 1.2 1.2 1.2 1.2 4.8 4.8
Total Operating Expenses $192.9 $837.4 $201.4 $200.7 $238.2 $194.4 $834.8 $204.7 $197.7 $234.9 $198.9 $836.1 $869.0
EBITD $73.7 $335.7 $86.2 $69.1 $108.7 $65.3 $329.4 $95.5 $85.2 $142.7 $94.1 $417.5 $451.5
Operating Income $39.0 $198.7 $50.1 $34.3 $71.4 $27.6 $183.4 $58.5 $48.0 $103.2 $54.3 $264.0 $279.5
Other Income 4.1 15.2 4.5 5.0 6.0 5.0 20.6 4.0 4.0 4.0 4.0 16.0 17.0
Earnings Of Uncons. Eq-Method Inv. 1.6 3.0 (1.3) (4.4) 2.1 (1.4) (5.1) (1.0) (1.0) (1.0) (1.0) (4.0) (4.5)
Interest On Long-Term Debt 21.5 80.5 20.8 19.5 19.5 20.5 80.4 20.7 20.9 21.1 21.3 84.0 85.0
Other Interest (1.5) (5.4) (1.9) (1.9) (2.1) (2.1) (8.0) (2.1) (2.1) (2.1) (2.1) (8.4) (8.0)
Income Before Income Taxes: $24.7 $141.7 $34.4 $17.3 $62.0 $12.8 $126.5 $42.9 $32.2 $87.2 $38.1 $200.4 $215.0
Income Taxes: 4.5 (0.7) 4.9 (3.7) (45.4) 2.4 (41.7) 8.1 6.1 16.6 7.2 38.1 40.8
Effective Tax Rate 18.1% -0.5% 14.2% -21.1% -73.1% 19.0% -33.0% 19.0% 19.0% 19.0% 19.0% 19.0% 19.0%
Income From Continuing Operations $20.2 $142.5 $29.5 $21.0 $107.4 $10.4 $168.2 $34.7 $26.1 $70.6 $30.9 $162.3 $174.1
Noncontrolling Interest 0.2 0.3 0.3 (0.1) (0.3) 0.1 (0.1) 0.1 0.1 0.1 0.1 0.3 0.3
Net Income Available For Common $20.4 $142.8 $29.7 $20.9 $107.1 $10.4 $168.1 $34.8 $26.1 $70.7 $30.9 $162.6 $174.4
Average Diluted Shares Outstanding 49.2 48.3 49.4 49.5 49.6 49.7 49.6 49.8 49.9 50.0 50.1 50.0 50.5
Diluted EPS $0.41 $2.95 $0.60 $0.42 $2.16 $0.21 $3.39 $0.70 $0.52 $1.41 $0.62 $3.25 $3.45
Dividends Per Common Share $0.30 $1.20 $0.30 $0.30 $0.30 $0.30 $1.20 $0.33 $0.33 $0.33 $0.33 $1.32 $1.50
Dividend Payout Ratio (ttm) 40.6% 40.6% 37.2% 42.4% 33.4% 35.4% 35.4% 35.3% 35.1% 45.3% 40.6% 40.6% 43.4%
Dividend Growth 0.0% 0.0% 10.0% 13.6%
Ratio Analysis:
Gross Margin 70.1% 65.8% 65.7% 69.5% 68.6% 69.0% 68.2% 66.6% 72.0% 74.9% 73.9% 72.0% 71.5%
Operating Margin 16.8% 19.2% 19.9% 14.6% 23.1% 12.4% 18.0% 22.2% 19.5% 30.5% 21.4% 24.0% 24.3%
Pre-Tax Margin 10.7% 13.7% 13.7% 7.4% 20.0% 5.8% 12.4% 16.3% 13.1% 25.8% 15.1% 18.2% 18.7%
Net Margin 8.8% 13.8% 11.8% 8.9% 34.6% 4.7% 16.5% 13.2% 10.6% 20.9% 12.2% 14.8% 15.2%
D.A. Davidson & Co.
Two Centerpointe Drive, Suite 400  Lake Oswego, Oregon 97035  [phone]  [phone]  www.dadavidson.com
Copyright D.A. Davidson & Co., 2011. All rights reserved.
5
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. Institutional Research 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 9/30/11) Buy Hold Sell
Corresponding Institutional Research Ratings Buy Neutral Underperform
and Distribution 58% 39% 3%
Corresponding Individual Investor Group Ratings Outperform Market Perform Underperform
and Distribution 53% 47% 0%
Distribution of Combined Ratings 57% 40% 3%
Distribution of companies from whom D.A. Davidson & Co. has received compensation for investment banking services in last 12 mos.
Institutional Coverage 4% 3% 0%
Individual Investor Group Coverage 0% 6% 0%
Distribution of Combined Investment Banking 3% 3% 0%

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., 2011. All rights reserved.
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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
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before making any investment decisions. Further information and elaboration will be furnished upon request.