KeyBanc-Nov-3-2011.pdf

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November 3, 2011
ENERGY: Electric Utilities
Quick Alert
KeyBanc
Capital￿Markets

IDACORP, Inc. (BUY)
IDA - Quick Alert: 3Q11 Strong Quarter; Guidance Raised as Expected
KeyBanc Capital Markets Inc.
Member NYSE/FINRA/SIPC
Paul T. Ridzon: [phone] Ð [e-mail]
Timothy Yee: [phone] Ð [e-mail]
KEY INVESTMENT POINTS
November 2, 2011 Close: $39.85
3Q11 KBCM EPS Estimate: $1.75 (Consensus: $1.51)
2011 KBCM EPS Estimate: $3.20 (Consensus: $3.07)
2012 KBCM EPS Estimate: $3.10 (Consensus: $3.03)
3Q11 Actual Results (vs. 3Q10):
●3Q11 operating EPS of $2.16 vs. $1.39; GAAP EPS of $2.16 vs. $1.39.
●Results were above our high on the Street and upside surprise estimate of $1.75 and well ahead of consensus of $1.51 per share.
Guidance: Raised 2011 guidance of $2.80-$2.95 per share to $3.35-$3.45 given the receipt of approval for Uniform Capitalization
tax method change.
3Q Highlights:
●Results were substantially higher than the prior year period given the recognition of the UniCap tax method change.
●Other positive drivers were new rates, hotter and drier weather and increased transmission revenues.
●These were offset by pension (recoverable in rates) and payroll costs, thermal plant expenses, a refund to customers for earning
in excess of a 10.5% ROE, reversing prior period amortization of ADITCs and lower Bridger Coal earnings, driven by reduced coal
usage given strong hydro availability.
●IDA expects 2011 hydro conditions to allow the generation of 11 million-11..5 million MWh vs. the prior view of 9.5 million-10.5
million MWh.
●IDA filed with the commission to extend existing sharing plan, which we expect investors will view positively.
Initial Take: We expect a positive response to the earnings release and discussion of filing with ID commission a proposal for sharing
benefits as is in its current plan.
4:30PM EST Conference Call #: [phone] ID#: 13498673
We will be focused on:
●Economic outlook
●Capital spending and project updates (Langley Gulch)
●Tax method changes ongoing impact
●Strategies around regulatory process of getting Langley Gulch plant in rates in a timely manner
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]219 46.30 47 21.46
HOLD [HOLD]251 53.10 55 21.91
SELL [UND]3 0.60 0 0.00

ENERGY
IB Serv/Past 12 Mos.
Rating Count Percent Count Percent
BUY [BUY]33 44.60 15 45.45
HOLD [HOLD]41 55.40 20 48.78
SELL [UND]0 0.00 0 0.00

Quick AlertNovember 3, 2011
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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 AlertNovember 3, 2011