20090415News Release.pdf

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NEWS RELEASE
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An IDACORP company
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FOR IMMDIATE RELEASE
Corprate Communcation
Echo Chadwick
208-388-6654
echadwick~daopower.com
Investor Relations
Lar Spencer
208-388-2664
Ispencer~idahopower.com
Idaho Power Files Annual Power Cost Adjustment
BOISE, Idaho, Wednesday, April 15, 2009-Idaho Power today fied for the anua power
cost adjustment (PCA) with the Idaho Public Utilties Commission (IPUC). This fiing reflects a
tre-up of last year's forecasted costs to actual expenses, as well as anticipated fuel costs for
generatig electrcity, power purchases and offsets from the benefit of off-system sales for the
comig year. The PCA, an anua filing in place since 1992, is strctly a cost recovery
mechasm that passes on both the benefits and costs of supplying energy to Idao Power
customers. It does not contan a profit component.
If approved, today's filing means a rate increase of $93.8 millon for the company's Idao
customers, or 11.40 percent overalL. For the tyical residential cusomer using 1,050 kilowatt-
hours of electrcity each month, the monthy increase will be approximately $7.20. The actu
percentage of change vares by cusomer grup based upon the rate they pay for electcity.
"A number of factors contrbute to ths yea's PCA and the resulting increase," said Idaho
Power General Manager of Power Supply Operations and Planng Karl Bokenkamp. "One
factor is the significant increase in last year's actu energy costs compared to those forecast. We
also forecast higher th normal energy costs for the comig year due to expected below-norm
steam flows impacting hydroelectrc generation. This impact reduces off-system sales benefits,
increases power purchases and results in higher fuel costs to produce electrcity with our
systm's thermal resources."
The company actively manages its system operations to help lower power supply costs
without jeopardizing its system reliabilty, servce quaity or obligation to serve.
"Customers benefit from our system's sulus energy saes to the wholesale market," added
Bokenkamp. "Off-system sales revenues are deducted from our power supply costs and reduce
the rates our cusmers pay. However, ths coming year, our ability to sell and the revenue
generated are projected to be signficantly less than the normal benefit derived from these off-
system sales."
In year when water is plentifu Idaho Power more fully utilzes its 17-dam hydroelectrc
system, resulting in lower power production costs and associated benefits passed on to
customers.
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Idaho Power Files Annual Power Cost Adjustment - Page 2
When hydroelectric generating conditions are below average as they have been for nine of the
past 10 years, Idaho Power must use more expensive resources to meet customers' need for
electricity. The company expects to generate between 6.5 and 8.5 milion megawatt-hours
(MWh) from its hydroelectric generation resources this year compared to 6.2 and 6.9 milion in
2007 and 2008 respectively. The anticipated range for 2009 is below the median anual
hydrological generation of 8.5 milion MWh.
"Although below-normal hydro generation is anticipated for 2009, recent weather conditions
may provide customer benefits through reduced power supply expenses," said Idaho Power's
Vice President of Regulatory Affairs Ric Gale. "The Commission will review the company's
application and determine whether any additional changes should be reflected in rates at this
time."
This char ilustrates the overall percentage increase for each major customer group as a
result oftoday's PCA fiing:
Revenue Impact By Class
Percentage Change from Current Rates
Residential
9.30%
General
Service
12.05%
Large
Power
16.37%
Irrigation
11.08%
Overall
Change
11.40%
"Whle we continue to provide some of the nation's lowest electric rates, we recognize
increased electric rates are difficult for customers and are sensitive to the issue of affordability,"
added Gale. "We are committed to all our customers through a variety of ongoing energy
assistance initiatives, and actively pursue opportunities to minimize the impacts of higher costs.
The most important is educating our customers on how to use energy effciently and providing
them programs that help reduce their bils by reducing their consumption."
Idaho Power's PCA application is available to the public at the IPUC or Idaho Power
Company offices or on Idaho Power's Web site, ww.idahopower.com.
IDACORP, Inc., Boise, Idaho-based and formed in 1998, is a holding company comprised of
Idaho Power Company, a regulated electric utility; IDACORP Financial, a holder of affordable
housing projects and other real estate investments; and Ida-West Energy, an operator of small
hydroelectric generation projects that satisfy the requirements of the Public Utilty Regulatory
Policies Act of 1978. IDACORP's origins lie with Idaho Power and operations beginning in
1916. Today, Idaho Power employs approximately 2,000 people to serve a 24,000 squae-mile
service area in southern Idaho and eastern Oregon. With 17 low-cost hydroelectrc projects as the
core of its generation portfolio, Idaho Power's 487,000 residential, business and agricultual
customers pay some of the nation's lowest prices for electricity. To lear more about Idaho
Power or IDACORP, visit ww.idahopower.com or ww.idacorpinc.com.
Safe Harbor Statement
Certain statements contained in this news release, including statements with respect to future
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Idaho Power Files Annual Power Cost Adjustment - Page 3
earings, ongoing operations, and financial conditions, are "forward-looking statements" within
the meanng of federal securities laws. Although IDACORP and Idaho Power believe that the
expectations and assumptions reflected in these forward-looking statements are reasonable, these
statements involve a number of risks and uncertainties, and actual results may differ materially
from the results discussed in the statements. Factors that could cause actual results to differ
materially from the forward-looking statements include: the effect of regulatory decisions by the
Idaho Public Utilities Commission, the Oregon Public Utility Commission and the Federal Energy
Regulatory Commission affecting our abilty to recover costs and/or ear a reasonable rate of
retu including, but not limited to, the disallowance of costs that have been deferred; changes in
and compliance with state and federal laws, policies and regulations including new interpretations
by oversight bodies, which include the Federal Energy Regulatory Commission, the North
American Electric Reliability Corporation, the Western Electricity Coordinating Council, the
Idaho Public Utilities Commission and the Oregon Public Utility Commission, of existing policies
and regulations that affect the cost of compliance, investigations and audits, penalties and costs of
remediation that mayor may not be recoverable through rates; changes in tax laws or related
regulations or new interpretations of applicable law by the Internal Revenue Service or other
taing jurisdiction; litigation and regulatory proceedings, including those resulting from the energy
situation in the western United States, and penalties and settlements that influence business and
profitabilty; changes in and compliance with laws, regulations, and policies including changes in
law and compliance with environmental, natural resources, endangered species and safety laws,
regulations and policies and the adoption of laws and regulations addressing greenhouse gas
emissions, global climate change, and energy policies; global climate change and regional weather
variations affecting customer demand and hydroelectric generation; over-appropriation of surface
and groundwater in the Snake River Basin resulting in reduced generation at hydroelectric
facilities; constrction of power generation, transmission and distribution facilities, including an
inabilty to obtain required governental permits and approvals, rights-of-way and siting, and risks
related to contracting, construction and sta-up; operation of power generating facilties including
performance below expected levels, breakdown or failure of equipment, availability of
transmission and fuel supply; changes in operating expenses and capital expenditures, including
costs and availability of materials, fuel and commodities; blackouts or other disruptions of Idaho
Power Company's transmission system or the western interconnected transmission system;
population growth rates and other demographic patterns; market prices and demand for energy,
including structual market changes; increases in uncollectible customer receivables; fluctuations
in sources and uses of cash; results of financing efforts, including the ability to obtain financing or
refinance existing debt when necessar or on favorable terms, which can be affected by factors
such as credit ratings, volatility in the financial markets and other economic conditions; actions by
credit rating agencies, including changes in rating criteria and new interpretations of existing
criteria; changes in interest rates or rates of inflation; performance of the stock market, interest
rates, credit spreads and other financial market conditions, as well as changes in goverrent
regulations, which affect the amount and timing of required contributions to pension plans and the
reported costs of providing pension and other postretirement benefits; increases in health care costs
and the resulting effect on medical benefits paid for employees; increasing costs of insurance,
changes in coverage terms and the ability to obtan insurance; homeland securty, acts of war or
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Idaho Power Files Annual Power Cost Adjustment - Page 4
terrorism; natual disasters and other natual risks, such as earhquake, flood, drought, lightnng,
wind and fire; adoption of or changes in critical accounting policies or estimates; and new
accounting or Securties and Exchange Commission requirements, or new interpretation or
application of existing requirements. Any such forward-looking statements should be considered in
light of such factors and others noted in the companies' Anual Report on Form 10- K for the year
ended December 31, 2008, and other reports on fie with the Securties and Exchange Commission.
Any forward-looking statement speaks only as of the date on which such statement is made. New
factors emerge from time to time and it is not possible for management to predict all such factors,
nor can it assess the impact of any such factor on the business or the extent to which aiy factor, or
combination of factors, may cause results to differ materially from those contained in any forward-
looking statement.
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