20020314Attachment I.pdf

IDAHO POWER COMPANY
R PO.BOX 10
BOISE,IDAHO 83707
An IDACORP Company
PATRICK A.HAltR[NQ ON
Attorney
March 12,2002
Ms.Jean D.Jewell
Secretary
Idaho Public Utilities Commission
Statehouse
Boise,Idaho 83720
Re:In the matter of the Application of Idaho Power Company for an Order Authorizing
up to $350,000,000 Aggregate Principal Amount at Any One Time OutstandingofShort-Term Borrowings
IPC-E-02-01
Dear Ms.Jewell:
Enclosed for filing with the Commission as Attachment I to the above referencedapplication arefive(5)copies of Idaho Power Company's financial statements relating to the application.Please contact
me at 388-2878 if there are any questions regarding this filing.
Patrick A.Harringtop/
PAH:dkd
Enclosures
Telephone[phone],Fax [phone]
ATTACHMENT I(A)
IDAHO POWER COMPANY
STATEMENT OF ADJUSTING JOURNAL ENTRIES
As of December 31,2001
Giving Effect to the Proposed issuance of
Short-term notes
Cash........................$350,000,000
Notes Payable.........................S 350,000,000
To record the proposed issuance of short-term notes and receipt of cash.
IDAHO POWER COMPANY
BALANCE SHEET
As of December 31,2001
ASSETS
After
Actual Adjustrnents AdjustrnentsElectricPlant:
In service (at original cost).................................$2,989,629,892 $$2,989,629,892Accumulatedprovisionfordepreciation....................(1,220,002,130)(1,220,002,130)
In service -Net....................1,769,627,762 1,769,627,762Constructionworkinprogress...............86,009,543 86,009,543Heldforfutureuse................2,231,595 2,231,595
Electric plant -Net................1,857,868,900 1,857,868,900
Investments and Other Property:
Nonutility property..........................1,653,211 1,653,211Investmentinsubsidiarycompanies...............18,701,442 18,701,442Other......................17,077,985 17,077,985
Total investments and other property.................37,432,639 37,432,639
Current Assets:
Cash and cash equivalents (A)...............43,040,027 350,000,000 393,040,027Receivables:
Customer.......................................58,702,410 58,702,410Allowanceforuncollectibleaccounts...............(1,500,000)(1,500,000)Notes................3,487,635 3,487,635
Employee notes ..............6,274,282 6,274,282Relatedparty................37,517,204 37,517,204Other..........................2,280,556 2,280,556Accruedunbilledrevenues..............37,400,421 37,400,421Taxesreceivable..................................8,245,664 8,245,664Materialsandsupplies(at average cost).................23,279,548 23,279,548Fuelstock(at average cost).................8,726,387 8,726,387Prepayments................31,897,278 31,897,278
Regulatory assets...............55,105,792 55,105,792
Total current assets...............314,457,205 350,000,000 664,457,205
Deferred Debits:
American Falls and Milner water rights.................31,585,000 31,585,000
Company owned life insurance.........................39,601,507 39,601,507Regulatoryassetsassociatedwithincometaxes................195,254,069 195,254,069Regulatoryassets-PCA.........................267,988,938 267,988,938Regulatoryassets-long-term derivatives.................7,253,478 7,253,478Regulatoryassets-other...............73,638,995 73,638,995Other.................34,625,613 34,625,613
Total deferred debits..................649,947,600 649,947,600
Total..............................$2,859,706,344 $350,000,000 $3,209,706,344
(A)See Statement of Adjusting Journal Entries.
The accompanying Notes to Financial Statements are an integral part of this statement
IDAHO POWER COMPANY
BALANCE SHEET
As of December 31,2001
CAPITAUZATION AND LIABILITIES
CommonShares Common Shares After
Authorized Outstanding Actual Adjustments Adiustments
Equity Capital:50,000,000 37,612,351
Common stock ........................S 94,030,878 S S 94,030,878
Preferred stock ...............104,387,200 104,387,200
Premium on capital stock...............362,601,839 362,601,839
Capital stock expense................(4,143,734)(4,143,734)
Retained earnings....................................316,856,256 316,856,256Accummulatedothercomprehensiveincome...............(3,719,079)(3,719,079)
Total equity capital..............870,013,360 870,013,360
Long-Term Debt:
First mortgage bonds (A)................600,000,000 600,000,000
Pollution control revenue bonds ................170,460,000 170,460,000Otherlong-term debt......................................1,184,757 1,184,757
American Falls bond and Milner note guarantees ..............31,585,000 31,585,000
Unamortized discount on long-term debt (Dr)...............(1,029,295)(1,029,295)
Total long-term debt................802,200,462 802,200,462
Current Liabilities:
Long-term debt due within one year...............27,077,752 27,077,752
Notes payable.................282,000,000 350,000,000 632,000,000
Accounts payable .....................................68,806,192 68,806,192
Notes and accounts payable to related parties................6,931,117 6,931,117Derivativeliabilities................40,527,924 40,527,924
Interest accrued................13,115,312 13,115,312
Deferred income taxes................14,577,868 14,577,868Other.................16,118,633 16,118,633
Total current liabilities...............469,154,798 350,000,000 819,154,798
Deferred Credits:
Regulatory liabilities associated with accumulated deferred
investment tax credits ................68,015,922 68,015,922
Deterred income taxes.................541,483,258 541,483,258
Derivative liabilities -long-term..............................7,253,478 7,253,478
Regulatory liabilities associated with income taxes ..............41,289,868 41,289,868
Regulatory liabilities-other.................4,650,595 4,650,595Other.................55,644,603 55,644,603
Total deferred credits................718,337,724 718,337,724
Total............................$2,859,706,344 $350,000,000 $3,209,706,344
(A)See Statement of Adjusting Journal Entries.
The accompanying Notes to Financial Statements are an integral part of this statement
IDAHO POWER COMPANY
NOTESTO FINANCIAL STATEMENTS
As of December 31,2001
1.Property Plant and Equipment:
The cost of additions to utility plant in service represents the original cost of contracted
services,direct labor and material,allowance for funds used during construction and indirect
charges for engineering,supervision and similar overhead items.Maintenance and repairs ofpropertyandreplacementsandrenewalsofitemsdeterminedtobelessthanunitsofproperty
are expensed to operations.The Company records repair and maintenance costs associated
with planned major maintenance as these costs are incurred.For property replaced or
renewed the original cost plus removal cost less salvage is charged to accumulated provisionfordepreciationwhilethecostofrelatedreplacementsandrenewalsisaddedtoproperty,plant
and equipment.
2.Depreciation:
All utility plant is depreciated using the straight-line method at rates approved by regulatory
authorities.Annual depreciation provisions as a percent of average depreciable utility plant inserviceapproximates2.98 percent in 2001.
3.Revenues:
In order to match revenues with associated expenses,the Company accrues unbilled revenues
for electric services delivered to customers but not yet billed at month-end.
4.Cash and Cash Equivalents:
For purposes of reporting cash flows,cash and cash equivalents include cash on hand and
highly liquid temporary investments with maturity dates at date of acquisition of three months or
less.
5.Requiation of Utility Operations:
The Company follows SFAS No.71,"Accounting for the Effects of Certain Types ofRegulations,"and its financial statements reflect the effects of the different rate making
principlesfollowed by the various jurisdictions regulating the Company.The economic effects of
regulation can result in regulated companies recording costs that have been or are expected to
be allowed in the ratemaking process in a period different from the period in which the cost
would be charged to expense by an unregulated enterprise.When this occurs,costs aredeferredasassetsinthebalancesheet(regulatory assets)and recorded as expenses in the
periods when those same amounts are reflected in rates.Additionally,regulatorscan impose
liabilities upon a regulated company for amounts previouslycollected from customers and for
amounts that are expected to be refunded to customers (regulatory liabilities).
6.Manaqement Estimates:
The preparation of financial statements in conformity with accounting principles generallyacceptedintheUnitedStatesofAmerica,requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and the disclosure ofcontingentassetsandliabilitiesatthedateofthefinancialstatementsandthereported
amounts of revenues and expenses during the reporting period.Actual results could differ from
those estimates.
7.Financinq:
On March 23,2000,the Company filed a $200 million shelf registration statement that could be
used for First Mortgage Bonds (including medium term notes),unsecured debt,or preferred
stock.On December 1,2000,the Company issued $80 million principal amount of Secured
Medium Term Notes,Series C,7.38%Series due 2007.Proceeds were used for the earlyredemptioninJanuary2001ofthe$75 million First Mortgage Bonds 9.50%Series due 2021.
On March 2,2001 the Company issued $120 million principal amount of Secured Medium Term
Notes,Series C,6.60%Series due 2011 with the proceeds used to reduce short-term
NOTES TO FINANCIAL STATEMENTS (Continued)
borrowing incurred in support of ongoing long-term construction requirements.At December
31,2001,no amount remainded to be issued on this shelf registration statement.
On August 16,2001,the Company filed a $200 million shelf registration statement that can be
used for First Mortgage Bonds (including medium-term notes),unsecured debt or preferred
stock.At December 31,2001,no amounts had been issued.
In August 2001,$25 million First Mortgage Bonds 9.52%Series due 2031 were redeemed
early.
The amount of first mortgage bonds issuable by the Company is limited to a maximun of $900
million and by property,earnings and other provisions of the mortgage and supplemental
indentures thereto.Substantially all of the electric utility plant is subject to the lien of the
indenture.
Pollution Control Revenue Bonds,Series 1984,due December 1,2014,are secured by First
Mortgage Bonds,Pollution Control Series A,which were issued and are held by a Trustee for
the benefit of the bondholders.
On April 26,2000,at the request of the Company,the American Falls Reservoir District issued
its American Falls Refunding Replacement Dam Bonds,Series 2000 in the aggregate principal
amount of $20 million for the purpose of refundingon April 26,2000 a like amount of its bonds
dated May 1,1990.The Company has guaranteed repayment of these bonds.
On May 17,2000,tax exempt Pollution Control Revenue Refunding Bonds Series 2000 in the
aggregate amount of $4 million were issued by Port of Morrow,Oregon for the purpose of
refunding on August 1,2000,a like amount of its Pollution Control Revenue Bonds,Series
1978.
At December,2001 the overall effective cost of all outstanding first mortgage bonds and
pollution control revenue bonds was 7.0 percent.
8.Notes Pavable:
At December 31,2001 the Company had regulatoryauthority to incur up to $500 million of
short-term indebtedness.The Company has a $165 million facility that expires April 26,2002
and a $120 million facility that expires April 18,2002.Under these facilities the Company pays
a facility fee on the commitment,quarterly in arrears,based on the Company's First Mortgage
Bond rating.Commercial paper may be issued up to the amounts supported by the bank credit
facilties.
Also,at December 31,2001,the Company had $100 million of floating rate notes outstanding,
payable on September 1,2002.
At December31,2001 the Company's short term borrowing totaled $282 million.
9.Income Taxes:
The Company follows the liability method of computing deferred taxes on all temporary
differences between the book and tax basis of assets and liabilities and adjusts deferred tax
assets and liabilities for enacted changes in tax laws or rates.Consistent with orders and
directivesof the Idaho Public Utilities Commission (IPUC),the regulatory authority having
principal jurisdiction,the Company's deferred incometaxes (commonly referred to as
normalizedaccounting)are provided for the difference between income tax depreciationand
NOTES TO FINANCIAL STATEMENTS (Continued)
straight-line depreciation computed using book lives on coal-fired generationfacilities and
properties acquired after 1980.On other facilities,deferred income taxes are provided for the
difference between accelerated income tax depreciation and straight-line depreciation using tax
guideline lives on assets acquired prior to 1981.Deferred income taxes are not provided for
those income tax timing differences where the prescribed regulatory accounting methods do
not provide for current recovery in rates.Regulated enterprises are required to recognize such
adjustments as regulatory assets or liabilities if it is probable that such amounts will be
recoveredfrom or returned to customers in future rates.
The State of Idaho allows a three percent investment tax credit upon certain qualifying plant
additions.Investment tax credits earned on regulatory assets are deferred and amortized to
income over the estimated service lives of the related properties.Credits earned on non-
regulatedassets or investments are recognized in the year earned.
10.Allowance For Funds Used Durinq Construction (AFDC):
AFDC,a non-cash item,represents the composite interest costs of debt,and a return on equity
funds,used to finance construction.While cash is not realized currently from such allowance,it
is realized under the rate making process over the service life of the related property through
increased revenues resulting from higher rate base and higher depreciation expense.Based
on the uniform formula adopted by the Federal Energy RegulatoryCommission (FERC),the
Company's weighted-average AFDC rate at December 31,2001 was 5.4 percent.
11.Requlatory Issues:
The Company has a Power Cost Adjustment (PCA)mechanism that provides for annualadjustmentstotherateschargedtoitsIdahoretailelectriccustomers.These adjustments,
which take effect annually in May,are based on forecasts of net powersupply expenses and
the true-up of the prior year's forecast.During the year,the difference between the actual and
forecasted costs is deferred with interest.The balance of the deferral,called a true-up,is then
included in the calculation of the next year's PCA adjustment.
12.DiscontinuedOperations:
Effective June 11,2001 the Company transferred its non-utility wholesaleelectricity marketing
operations (Energy Marketing)to IDACORP Energy (\E).
EnergyMarketing net assets transferred consists primarily of energy trading contracts and
trading accounts receivableand accounts payable.The results of operations of Energy
Marketingwere previously reported on the Company's Statements of Income as "Energy
marketing activities -net."For all periods presented,Energy Marketing is reported as a
discontinued operation.
In exchange for the transfer of Energy Marketing to IE,the Company received a partnership
interest in IE,which was transferred to IDACORP in exchange for notes receivablefrom
IDACORP totaling approximately $76 million of which $43 million had been paid at December
31,2001.This amount approximates the historical book value of the transferred Energy
Marketing net assets on May 31,2001 of $21 million and retained intercompanytax liabilities of
$55 million.The notes receivableare due over periods of one to ten years and bear interest at
IDACORP's overall variable short-term borrowing rate,which was 2.2 percent at December 31,2001.
Concurrent with this transfer,IE and the Company have entered into an Electricity Supply
Management Services Agreement (Agreement).The Company received approval of the
Agreement from the IPUC,the Oregon Public Utility Commission and the FERC.Under the
NOTES TO FINANCIAL STATEMENTS (Continued)
agreement the Company will continue to own,operate and maintain its electric generating
epuipment and transmission facilities and be responsible for system reliability.IE will manage
and dispatch the system resources to balance generation and load within the companies
operating area.The Company paid approximately $2 million in accordance with the
Agreement as of December 31,2001.Additionally the Company sold $93 million in off-system
sales to and purchased $172 million in purchased power from IE.
13.Derivative Financial Instruments:
Prior to the June 11,2001 transfer of Energy Marketing to IE (Note 12),the Company used
financial instruments such as commodity futures,forwards,options and swaps to manage
exposure to commodity price risk in the electricity markets.The objective of the Company's risk
management program was to mitigate the risk associated with the purchase and sale of
electricity as well as to optimize its energy marketing portfolio.The accounting for derivative
financial instruments used to manage risk were in accordance with the concepts established in
EITF 98-10,"Accounting for Contracts Involved in EnergyTrading Activities,"and SFAS 133,
"Accounting for Derivative Instruments and Hedging Activities"as amended by SFAS 138
"Accounting for Certain Derivative Instrumens and Certain Hedging Activities."
14.Other Accountinq Policies:
Debt discount,expense and premium are being amortized over the terms of the respective debt
issues.
ATTACHMENT I(B)
IDAHO POWER COMPANY
The following statement as to each class of the capital stock of applicant is as of December 31,
2001,the date of the balance sheet submitted with this application:
Common Stock
(1)Description -Common Stock,$2.50 par value;1 vote per share
(2)Amount authorized -50,000,000 shares ($125,000,000 par value)
(3)Amount outstanding -37,612,351 shares
(4)Amount held as reacquired securities -None
(5)Amount pledged by applicant -None
(6)Amount owned by affiliated corporations -All
(7)Amount held in any fund -None
Applicant's Common Stock is held by
IDACORP,Inc.,the holding company of
Idaho Power Company.IDACORP,Inc.'s
Common Stock is registered (Pursuantto
Section 12(b)of the Securities Exchange Act
of 1934)and is listed on the New York and
Pacific stock exchanges.
4%Preferred Stock
(1)Description -4%Preferred Stock,cumulative,$100 par value;
20 votes per share
(2)Amount authorized -215,000 shares ($21,500,000 par value)
(3)Amount outstanding -143,872 shares
(4)Amount held as reacquired securities -None
(5)Amount pledged by applicant -None
(6)Amount owned by affiliated corporations -None
(7)Amount held in any fund -None
Applicant's 4%Preferred Stock is registered
as part of a class pursuant to Section 12(g)
of the Securities Exchange Act of 1934.
Series Serial Preferred Stock,$100 Par Value
(1)Description -7.68%Series Serial Preferred Stock,cumulative,
$100 par value;1 vote per share
(2)Amount authorized -150,000 shares ($15,000,000par value)
(3)Amount outstanding -150,000 shares
(4)Amount held as reacquired securities -None
(5)Amount pledged by applicant -None
(6)Amount owned by affiliated corporations -None
(7)Amount held in any fund -None
Applicant's 7.68%Series Serial Preferred
Stock is registered as part of a class
pursuant to Section 12(g)of the Securities
Exchange Act of 1934.
Serial Preferred Stock,Without Par Value
(1)Description -Serial Preferred Stock,without par value
(2)Amount authorized -3,000,000 shares
(3)Amount outstanding -
(A)Amount outstanding -500 shares,Auction Rate Preferred Series A,
cumulative,$100,000 stated value,non-voting shares
(B)Amount outstanding -250,000 shares,7.07%Series,cumulative,
$100 stated value,non-voting shares
(4)Amount held as reacquired securities -None
(5)Amount pledged by applicant -None
(6)Amount owned by affiliated corporation -None
(7)Amount held in any fund -None
Applicant's Serial Preferred Stock is
registered as part of a class pursuant to
Section 12(g)of the Securities Exchange Act
of 1934.
Provisions of the Articles of Incorporation
authorize the Board of Directors to fix
dividend rates and redemption prices for the
authorized but unissued Serial Preferred
Stock.
For a full statement concerning the terms and provisions relatingto the Common,4%Preferred
and Serial Preferred Stocks of applicant,reference is made to the Applicant's Articles of Incorporation
presentlyon file with the Commission.
IDAHO POWER COMPANY
The following statement as to funded debt of applicant is as of December 31,2001,the date of
the balance sheet submitted with this application.
First Mortgaqe Bonds
(1)(3)
Amount
Description Outstandinq
FIRST MORTGAGE BONDS:
6.85 %Series due 2002,dated as of Oct 2,1996,due Oct 1,2002 $27,000,000
6.40 %Series due 2003,dated as of May 1,1993,due May 1,2003 80,000,000
8 %Series due 2004,dated as of Mar 25,1992,due Mar 15,2004 50,000,000
5.83 %Series due 2005,dated as of Sep 9,1998,due Sep 9,2005 60,000,000
7.38 %Series due 2007,dated as of Dec 1,2000,due Dec 1,2007 80,000,000
7.20 %Series due 2009,dated as of Nov 23,1999,due Dec 1,2009 80,000,000
6.60 %Series due 2011,dated as of Mar 2,2001,due Mar 2,2011 120,000,000
7.5 %Series due 2023,dated as of May 1,1993,due May 1,2023 80,000,000
8.75 %Series due 2027,dated as of Mar 25,1992 due Mar 15 ,2027 50,000,000
$627,000,000
(2)Amount authorized -Limited within the maximum of $900,000,000
(or such other maximum amount as may be fixed by supplemental
indenture)and by property,earnings,and other provisions of
the Mortgage.
(4)Amount held as reacquired securities -None
(5)Amount pledged -None
(6)Amount owned by affiliated corporations -None
(7)Amount of sinking or other funds -None
For a full statement of the terms and provisions relatingto the respective Series and amounts of
applicant's outstanding First Mortgage Bonds above referredto,reference is made to the Mortgage and
Deed of Trust dated as of October 1,1937,and First to Thirty-Fifth Supplemental Indenturesthereto,by
Idaho Power Company to Bankers Trust Company and R.G.Page (Stanley Burg,successor individual
trustee),Trustees,presently on file with the Commission,under which said bonds were issued.
IDAHO POWER COMPANY
Pollution Control Revenue Bonds
(A)Variable Rate Series 2000 due 2027:
(1)Description -Pollution Control Revenue Bonds,Variable Rate Series
due 2027,Port of Morrow,Oregon,dated as of May 17,2000,due
February 1,2027.
(2)Amount authorized -$4,360,000
(3)Amount outstanding -$4,360,000
(4)Amount held as reacquired securities -None
(5)Amount pledged -None
(6)Amount owned by affiliated corporations -None
(7)Amount in sinking or other funds -None
(B)8.30%Series 1984 due 2014:
(1)Description -Pollution Control Revenue Bonds,8.30%Series
due 2014,County of Humboldt,Nevada,dated as of
December 20,1984 due December 1,2014 (secured by
First Mortgage Bonds,Pollution Control Series A)
(2)Amount authorized -$49,800,000
(3)Amount outstanding -$49,800,000
(4)Amount held as reacquired securities -None
(5)Amount pledged -None
(6)Amount owned by affiliated corporations -None
(7)Amount in sinking or other funds -None
(C)6.05%Series 1996A due 2026:
(1)Description -Pollution Control Revenue Bonds,6.05%Series 1996A
due 2026,County of Sweetwater,Wyoming,
dated as of July 15,1996,due July 15,2026
(2)Amount authorized -$68,100,000
(3)Amount outstanding -$68,100,000
(4)Amount held as reacquired securities -None
(5)Amount pledged -None
(6)Amount owned by affiliated corporations -None
(7)Amount in sinking or other funds -None
(D)Variable Rate Series 1996B due 2026:
(1)Description -Pollution Control Revenue Bonds,Variable Rate 1996B
Series due 2026,County of Sweetwater,Wyoming,dated
as of July 15,1996,due July 15,2026.
(2)Amount authorized -$24,200,000
(3)Amount outstanding -$24,200,000
(4)Amount held as reacquired securities -None
(5)Amount pledged -None
(6)Amount owned by affiliated corporations -None
(7)Amount in sinking or other funds -None
IDAHO POWER COMPANY
Pollution Control Revenue Bonds
(E)Variable Rate Series 1996C due 2026:
(1)Description -Pollution Control Revenue Bonds,Variable Rate 1996C
Series due 2026,County of Sweetwater,Wyoming,dated
as of July 15,1996,due July 15,2026.
(2)Amount authorized -$24,000,000
(3)Amount outstanding -$24,000,000
(4)Amount held as reacquired securities -None
(5)Amount pledged -None
(6)Amount owned by affiliated corporations -None
(7)Amount in sinking or other funds -None
For a full statement of the terms and provisions relating to the outstanding PollutionControlRevenueBondsabovereferredto,reference is made to (A)copies of Trust Indenture byPortofMorrow,Oregon,to the Bank One Trust Company,N.A.,Trustee,and Loan AgreementbetweenPortofMorrow,Oregon and Idaho Power Company,both dated May 17,2000,under
which the Variable Rate Series 2000 bonds were issued,(B)copies of Loan Agreement between
Idaho Power Company and Humboldt County,Nevada;Indenture of Trust between Humboldt
County,Nevada and Morgan Guaranty Trust Company of New York;Escrow Agreement between
HumboldtCounty,Nevada and Bankers Trust Company and Idaho Power Company;PlacementAgreementbetweenHumboldtCounty,Nevada and Bankers Trust Company;all dated December
1,1984;agreement among Idaho Power Company,Bankers Trust Company,as Remarketing
Agent,Goldman,Sachs &Co.,and Kidder,Peabody &Co.Inc.dated May 20,1986;PledgeAgreementbetweenIdahoPowerCompanyandMorganGuarantyTrustCompanyofNewYork
dated May 1,1986;under which the 8.30%Series bonds were issued and (C)(D)(E)copies of
Indenturesof Trust by Sweetwater County,Wyoming,to the First National Bank of Chicago,Trustee,and Loan Agreements between Idaho Power Company and Sweetwater County,
Wyoming,all dated July 15,1996,under which the 6.05%Series 1996A bonds,Variable Rate
Series 1996B bonds and Variable Rate Series 1996C bonds were issued.
IDAHO POWER COMPANY
Rural Electrification Association Notes
(A)2.0%and 5.0%Series due 1998-2023:
(1)Description -REA Notes,2.0%and 5.0%interest
rate with various maturity dates (secured by
property).
(2)Amount authorized -Various Amounts
(3)Amount outstanding -$1,262,509
(4)Amount held as reacquired securities -None
(5)Amount pledged -None
(6)Amount owned by affiliated corporations -None
(7)Amount in sinking or other funds -None
For a full statement of the terms and provisions relating to the outstanding Rural Electrification
Association Notes above referred to,reference is made to the Restated Mortgage and Security
Agreement dated as of May 1,1992,and Agreement between the United States of America and Idaho
Power Company dated May 1,1992.
IDAHO POWER COMPANY
CLASSIFICATION OF ELECTRIC UTILITY PLANT AND ACCUMULATED
PROVISION FOR DEPRECIATION AND AMORTIZATION
As of December 31,2001
Classification of Electric Plant
Electric Utility Plant
1.Electric plant in service:
(a)Intangible plant............................$60,877,990
(b)Steam plant........................757,032,191
(c)Hydro production plant.......................619,811,966
(d)Other production plant......................47,933,108
(e)Transmission plant............................460,148,571
(f)Distribution plant...........................853,990,683
(g)General plant.......................189,835,384 $2,989,629,892
2.Electric plant held for future use................2,231,595
3.Construction work in progress..................86,009,543
Total electric utility plant...........................$3,077,871,030
Classification of Accumulated Provision for Depreciation and Amortization
Applicable to Electric Plant
Accumulated provision for depreciation of electric plant ........................$1,202,919,298
Accumulated provision for amortization of electric plant ..............17,082,832
Total accumulated provision for depreciation
and amortization................................$1,220,002,130
The accompanying Notes to Financial Statements are an integral part of this statement
ATTACHMENT I(C)
IDAHO POWER COMPANY
Commitments and Continqent Liabilities
Commitments under contracts and purchase orders relating to the Company's program for construction
and operationof facilities amounted to approximately $9 million at December 31,2001.Thecommitmentsaregenerallyrevocableandaresubjecttoreimbursementofmanufacturers'expenditures
incurred and/or othertermination charges.
The Company is currently purchasing energy from 66 on-line cogeneration and small power production
facilities with contracts ranging from 1 to 30 years.Under these contracts the Company is required to
purchase all of the output from these facilities.During the fiscal year ended December 31,2001,the
Company purchased 728,155 MWh at a cost of $45 million.
From to time the Company is party to various legal claims,actions,and complaints,certain of which
involvematerial amounts.Although the Company is unable to predict with certainty whether or not it will
ultimately be successful in these legal proceedings,or,if not,what the impact might be,based upon the
advice of legal counsel,management presently believes that disposition of these matters will not have amaterialadverseeffectontheCompany's financial position,results of operations or cash flows.
ATTA CHMENT I(D)
IDAHO POWER COMPANY
STATEMENT OF RETAINED EARNINGS
AND
UNDISTRIBUTED SUBSIDIARY EARNINGS
For the Twelve Months Ended December 31,2001
Retained Earninqs
Retained earnings (at the beginning of period)..........................$313,799,748
Balance transferred from income.................72,300,301
Dividends received from subsidiary.................6,000,000
Balance transferred to parent................(62,282)
Total..............392,037,767
Dividends:
Preferred Stock .................5,399,578
Common Stock ...............69,781,933
Total..................75,181,511
Retained earnings (at end of period)..........................$316,856,256
Undistributed Subsidiary Earnings
Balance (at beginning of period).........................$8,366,662
Equity in earnings for the period.................6,893,568
Dividends paid (Debit)...............6,000,000
Balance transferred to parent................62,282
Balance (at end of period).............................$9,322,512
The accompanying Notes to Financial Statements are an integral part of this statement
ATTACHMENT I(E)
IDAHO POWER COMPANY
STATEMENT OF INCOME
For the Twelve Months Ended December 31,2001
Actual
Operating Revenues........................$912,311,553
Operating Expenses:
Purchased power....................584,209,158
Fuel.............................98,318,441
Power cost adjustment.....................(175,924,653)
Other operation expense..................153,078,539
Maintenance expense...................55,876,578
Depreciation expense..................................80,689,086
Amortization of limited-term electric plant..................6,351,728
Taxes other than income taxes.....................19,693,396
income taxes -Federal......................(52,618,236)
Income taxes -Other.........................(14,479,363)
Provision for deferred income taxes.....................126,997,151
Provision for deferred income taxes -Credit....................48,412,782
Investment tax credit adjustment....................1,966,044
Total operating expenses......................835,745,087
Operating Income.....................76,566,466
Other Income and Deductions:
Allowance for equity funds used during construction......752,108
Income taxes..................(6,502,299)
Other -Net.....................19,847,347
Net other income and deductions...................14,097,156
Income Before Interest Charges......................90,663,622
Interest Charges:
Interest on first mortgage bonds....................45,831,864
Interest on other long-term debt..................9,872,502
interest on short-term debt..........................6,301,979
Amortization of debt premium,discount and
expense -Net...................1,027,776
Other interest expense......................3,071,163
Total interest charges......................66,105,284
Allowance for borrowed funds used during construction -Credit............3,736,839
Net interest charges......................62,368,445
Net Income from Continuing Operations....................28,295,177
Discontinued Operations.....................49,942,842
Net Income............................$78,238,019
The accompanying Notes to Financial Statements are an integral part of this statement