Keybanc-Feb-22-2012.pdf

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February 22, 2012
ENERGY: Electric Utilities
Quick Alert
KeyBanc
Capital￿Markets

IDACORP, Inc. (BUY)
IDA - Quick Alert: 4Q11 Results and 2012 Guidance Midpoint Slightly Below Views
KeyBanc Capital Markets Inc.
Member NYSE/FINRA/SIPC
Paul T. Ridzon: [phone] Ð [e-mail]
Timothy Yee: [phone] Ð [e-mail]
KEY INVESTMENT POINTS
February 21, 2012 Close: $41.48
4Q11 KBCM EPS Estimate: $0.22 (Consensus: $0.21)
FY11 KBCM EPS Estimate: $3.40 (Consensus: $3.39)
FY12 KBCM EPS Estimate: $3.10 (Consensus: $3.13)
4Q11 and FY11 Actual Results (vs. 4Q10 and FY11):
●4Q11 operating EPS of $0.18 vs. $0.41; GAAP EPS of $0.18 vs. $0.41.
●FY11 operating EPS of $3.36 vs. $2.95; GAAP EPS of $3.36 vs. $2.95.
●4Q results were below our estimate of $0.21 and consensus of $0.21 per share.
Guidance: IDA initiated 2012 guidance of $3.00-$3.15 per share (assumes estimated use of ADITCs of less than $5 million in 2012).
Highlights:
●Full-year results were $24.1 million higher than 2010 given the recognition of the UniCap tax method change, new rates, increased
sales volumes and increased transmission revenues, partially offset by Idaho-jurisdictional sharing mechanisms, higher operating
and maintenance expenses including pension expense (recoverable in rates), payroll-related costs, maintenance expense at
thermal plants, depreciation and property tax.
●IDA expects current 2012 hydro conditions to allow the generation of 7.5 million-9.5 million MWh vs. prior 10.9 million MWh in 2011.
●IDA forecasts 2012 operation and maintenance expenses to be $325 million-$335 million vs. the 2011 level of $339 million
●2012 Capex is forecast at $230 million-$240 million vs. the 2011 level of $338 million, assuming completion of the Langley Gulch
natural gas plant (under construction to be commercially available as of July 1, 2012) and expenditures for siting and permitting
work for planned transmission projects.
Initial Take: We expect a neutral to modestly negative response to the 2012 earnings guidance midpoint being slightly below views
(but note that consensus is skewed by one estimate at $3.25; excluding this outlier estimate, 2012 consensus view would be at $3.08
per share).
4:30PM EST Conference Call #: [phone] ID#: 26727498
We will be focused on:
●Economic outlook
●2012 earnings guidance and drivers
●Capital spending and project updates (Langley Gulch)
●Tax method changes ongoing impact
●Regulatory updates
FOR IMPORTANT DISCLOSURES AND CERTIFICATIONS, PLEASE REFER TO PAGES 2 - 3 OF THIS NOTE.
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KeyBanc Capital Markets Inc. Disclosures and Certifications
IDACORP, Inc. - IDA
We expect to receive or intend to seek compensation for investment banking services from IDACORP, Inc. within the next
three months.
During the past 12 months, IDACORP, Inc. has been a client of the firm or its affiliates for non-securities related services.
Reg A/C Certification
The research analyst(s) responsible for the preparation of this research report certifies that:(1) all the views expressed in
this research report accurately reflect the research analyst©s personal views about any and all of the subject securities or
issuers; and (2) no part of the research analyst©s compensation was, is, or will be directly or indirectly related to the specific
recommendations or views expressed by the research analyst(s) in this research report.
Three-Year Rating and Price Target History
Rating Disclosures
Distribution of Ratings/IB Services Firmwide and by Sector
KeyBanc Capital Markets
IB Serv/Past 12 Mos.
Rating Count Percent Count Percent
BUY [BUY]229 45.00 46 20.09
HOLD [HOLD]269 52.80 46 17.10
SELL [UND]11 2.20 4 36.36

ENERGY
IB Serv/Past 12 Mos.
Rating Count Percent Count Percent
BUY [BUY]36 45.00 14 38.89
HOLD [HOLD]44 55.00 15 34.09
SELL [UND]0 0.00 0 0.00

Quick AlertFebruary 22, 2012
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Rating System
BUY - The security is expected to outperform the market over the next six to 12 months; investors should consider adding the
security to their holdings opportunistically, subject to their overall diversification requirements.
HOLD - The security is expected to perform in line with general market indices over the next six to 12 months; no buy or sell
action is recommended at this time.
UNDERWEIGHT - The security is expected to underperform the market over the next six to 12 months; investors should
reduce their holdings opportunistically.
The information contained in this report is based on sources considered to be reliable but is not represented to be
complete and its accuracy is not guaranteed. The opinions expressed reflect the judgment of the author as of the
date of publication and are subject to change without notice. This report does not constitute an offer to sell or a
solicitation of an offer to buy any securities. Our company policy prohibits research analysts and members of their
families from owning securities of any company followed by that analyst, unless otherwise disclosed. Our officers,
directors, shareholders and other employees, and members of their families may have positions in these securities and
may, as principal or agent, buy and sell such securities before, after or concurrently with the publication of this report.
In some instances, such investments may be inconsistent with the opinions expressed herein. One or more of our
employees, other than the research analyst responsible for the preparation of this report, may be a member of the Board
of Directors of any company referred to in this report. The research analyst responsible for the preparation of this report is
compensated based on various factors, including the analyst©s productivity, the quality of the analyst©s research and stock
recommendations, ratings from investor clients, competitive factors and overall Firm revenues, which include revenues
derived from, among other business activities, the Firm©s performance of investment banking services. In accordance with
industry practices, our analysts are prohibited from soliciting investment banking business for our Firm.
Investors should assume that we are seeking or will seek investment banking or other business relationships with the
company described in this report.
Quick AlertFebruary 22, 2012