Attached files
file | filename |
---|---|
10-Q - IDAHO POWER CO | esa10q.htm |
EX-15 - IDAHO POWER CO | esex15.htm |
EX-31 - IDAHO POWER CO | esex31-2.htm |
EX-32 - IDAHO POWER CO | esex32-1.htm |
EX-32 - IDAHO POWER CO | esex32-2.htm |
EX-31 - IDAHO POWER CO | esex31-4.htm |
EX-31 - IDAHO POWER CO | esex31-3.htm |
EX-12 - IDAHO POWER CO | esex12-2.htm |
EX-12 - IDAHO POWER CO | esex12-1.htm |
EX-31 - IDAHO POWER CO | esex31-1.htm |
EX-10 - IDAHO POWER CO | esex10-21.htm |
EX-10 - IDAHO POWER CO | esex10-67.htm |
EX-10 - IDAHO POWER CO | esex10-66.htm |
EX-32 - IDAHO POWER CO | esex32-4.htm |
EX-32 - IDAHO POWER CO | esex32-3.htm |
Exhibit 99
IDACORP
May 6, 2010
FOR
IMMEDIATE RELEASE
Investor and Analyst Contact |
Media Contact |
Lawrence F. Spencer |
Echo Chadwick |
Director of Investor Relations |
Corporate Communication |
Phone: (208) 388-2664 |
Phone: (208) 388-6654 |
lspencer@idacorpinc.com |
echadwick@idahopower.com |
IDACORP, Inc. Announces First Quarter
2010 Results
Annual Earnings Guidance Remains Unchanged
BOISEIDACORP, Inc. (NYSE:IDA) reported first
quarter 2010 net income attributable to IDACORP, Inc. of $16.1 million or $0.34
per diluted share compared to $18.9 million or $0.40 per diluted share in the first
quarter of 2009. Idaho Power Company, IDACORPs principal subsidiary, reported
first quarter net income of $18.2 million compared to $19.3 million in the
first quarter of 2009. The IDACORP 2010 earnings guidance remains in the range
of $2.65 to $2.80 per diluted share.
We continue making progress toward
delivering on our long-term financial and operational goals and building for
the future despite the slow economy, said IDACORP, Inc. and Idaho Power
Company President and CEO J. LaMont Keen. The 2009 settlement agreement
reached in the Idaho jurisdiction and the general rate case settlement in
Oregon are two recent steps in achieving these goals, both ultimately
benefitting our owners and customers. While our quarterly earnings were
lower than the same quarter last year, we are able to maintain our annual
earnings guidance range because of the earnings stabilization provisions of the
settlement agreement.
We believe that the recently reported rating
outlook improvements by credit rating agencies Fitch and Moodys signal the
initial success of our hard work and resourceful management. Recognition
by these agencies of our 2009 financial performance and regulatory environment
should help to facilitate our continued access to capital as we make necessary
investments in new infrastructure to ensure reliable service to our customers,
added Keen.
Page 1 of 5
Performance Summary
A summary of
IDACORPs and each IDACORP subsidiarys net income for the first quarter
2010 as compared to the first quarter of 2009 is as follows:
Three months ended |
|||||
|
March 31, |
||||
|
2010 |
2009 |
|||
(in thousands except per diluted share amounts) |
|||||
Earnings From: |
|||||
Idaho Power Company |
$ |
18,221 |
$ |
19,284 |
|
IDACORP Financial Services |
(39) |
141 |
|||
Ida-West Energy |
177 |
188 |
|||
Holding Company and All Other |
(2,296) |
(729) |
|||
Net income attributable to |
|||||
IDACORP, Inc. |
$ |
16,063 |
$ |
18,884 |
|
|
|
|
|
||
Weighted average outstanding |
|||||
sharesdiluted |
47,885 |
46,876 |
|||
Earnings per diluted share |
$ |
0.34 |
$ |
0.40 |
The
following table presents a reconciliation of net income attributable to
IDACORP, Inc. for the three months ended March 31, 2009 to March 31, 2010 (Items
are in millions and are before tax unless otherwise noted.):
|
|||||
Net income attributable to IDACORP, Inc. - three months ended March 31, 2009 |
|
|
$ |
18.9 |
|
Change in Idaho Power net income before taxes: |
|
|
|
|
|
|
Rate and other regulatory changes including PCA(1) and FCA(2) mechanisms |
$ |
8.9 |
|
|
|
Reduced sales volumes |
|
(6.7) |
|
|
|
Payroll related increases |
|
(1.8) |
|
|
|
Increase in depreciation expense related to advanced metering |
|
(2.6) |
|
|
|
Decrease in life insurance gains |
|
(3.3) |
|
|
|
Decrease in earnings at Bridger Coal Company |
|
(3.0) |
|
|
|
Other |
|
(0.1) |
|
|
Accumulated deferred investment tax credit (ADITC) amortization |
|
4.5 |
|
|
|
Decrease in income tax expense (net of ADITC) |
|
3.0 |
|
|
|
Total decrease in Idaho Power net income |
|
|
$ |
(1.1) |
|
Other net decreases (net of tax) |
|
|
|
(1.7) |
|
Net income attributable to IDACORP, Inc. - three months ended March 31, 2010 |
|
|
$ |
16.1 |
|
|
|
|
|
|
(1)PCA Power Cost Adjustment
(2)FCA Fixed Cost Adjustment
Page 2 of 5
Idaho Powers operating income decreased $1.3 million compared to the first quarter of 2009. The combination of reduced sales volumes and increased operating expenses more than offset rate increases implemented during the year. Sales volumes were down five percent due to mild weather, which reduces electricity needs for heating, economic factors, and energy conservation. Economic conditions in Idaho Powers service area remained weak during the first quarter of 2010, and Idaho Power attributes a portion of reduced sales volumes to these current weak economic conditions. Volume decreases are partially offset by the FCA mechanism and lower power supply costs. Operating expenses increased due to increased wages and benefits and increased depreciation expense. While converting to Advanced Metering Infrastructure (AMI), Idaho Power has accelerated depreciation expense for non-AMI meters and is collecting an offsetting amount in revenues.
Several other items negatively impacted earnings compared to the first quarter of 2009. Life insurance gains decreased $3.3 million as several claims were received in 2009 that did not occur in 2010. Also, earnings from Bridger Coal Company decreased $3.0 million due to higher operational costs. Earnings from Bridger Coal Company are expected to approximate 2009 levels by year end.
Earnings at IDACORPs non-regulated subsidiaries and the holding company declined $1.7 million compared to the first quarter of 2009 due to the effects of intra-period tax allocations. IDACORP estimates its consolidated group annual effective income tax rate at the holding company in accordance with interim reporting requirements. The estimated annual rate was used in determining income tax expense for the quarter and resulted in an intra-period allocation of expense.
2010 Outlook
Annual Earnings Guidance Remains Unchanged
IDACORP is maintaining its earnings guidance
for 2010 in the range of $2.65-$2.80 per diluted share. The guidance
incorporates benefits assumed under the Agreement approved by the IPUC among
Idaho Power Company, several of Idaho Powers customers, the IPUC Staff and
others with respect to rates for 2009-2011.
The outlook for key operating and financial metrics is: |
2010 Estimates |
||
Key Operating & Financial Metrics |
Current |
Previous |
|
Idaho Power Operation & Maintenance |
|
|
|
|
Expense (millions) |
No Change |
$295-$305 |
Idaho Power Capital |
|
|
|
|
Expenditures (millions) (1) |
No Change |
$355-$365 |
Idaho Power Hydroelectric |
|
|
|
|
Generation (million MWh) |
No Change |
6.5-8.5 |
Non-Regulated Subsidiary Earnings |
|
|
|
|
and Holding Company Expenses (millions) (2) |
No Change |
$0.0-$3.0 |
Page 3 of 5
(1) The range for capital expenditures includes amounts for the Langley Gulch Power Plant, the Hemingway-Bowmont transmission line, the Hemingway substation and expenditures for the siting and permitting of major transmission expansions for the Boardman to Hemingway and Gateway West Transmission Line Projects.
(2) For the first quarter of 2010, non-regulated earnings and holding company expenses resulted in a net loss of $2.2 million primarily due to the impact of intra-period tax allocation at the holding company. It is expected that combined earnings and holding company expenses will be in the range of breakeven to a positive $3.0 million for the year.
In a change from past
practice, IDACORP and Idaho Power are not providing estimates of their
respective effective income tax rates for 2010. These rates will be affected
to the extent Idaho Power uses additional ADITC pursuant to the Idaho
settlement agreement and/or changes its tax accounting method for
repair-related expenditures, both of which are discussed in the Form 10-Q to be
filed today. IDACORP and Idaho Power are also withdrawing the estimates of
their respective effective income tax rates for 2010 that were provided
previously.
More detailed financial
information will be provided in IDACORPs Quarterly Report on Form 10-Q to be
filed today with the SEC and posted to the IDACORP Web site at www.idacorpinc.com.
Web Cast / Conference Call
IDACORP
will hold an analyst conference call today at 2:30 p.m. Mountain Time (4:30
p.m. Eastern Time). All parties interested in listening may do so through a
live Web cast, or by calling (617) 597-5326 for listen-only mode. The passcode
is Idaho. Slides will be included during the conference call. To access the
slide deck, register for the event just prior to the call at (www.idacorpinc.com/financials/confcalls.cfm).
A replay of the conference call will be available on the IDACORP Web site for
a period of 12 months.
Background Information / Safe Harbor Statement
Boise,
Idaho-based IDACORP, 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 Utility Regulatory Policies Act of 1978. To learn
more about Idaho Power or IDACORP, visit www.idahopower.com or www.idacorpinc.com.
Page 4 of 5
Certain statements
contained in this news release, including statements with respect to future
earnings, ongoing operations, and financial conditions, are forward-looking
statements within the meaning of federal securities laws and are intended to
qualify for the safe harbor from liability established by the Private
Securities Litigation Reform Act of 1995. Although IDACORP and Idaho Power
Company 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 ability to recover costs and/or earn a reasonable rate of return
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 may or 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
taxing jurisdictions; litigation and regulatory proceedings, including those
resulting from the energy situation in the western United States, and penalties
and settlements that influence business and profitability; changes in and
compliance with laws, regulations and policies including changes in law and
compliance with environmental, natural resources and endangered species 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;
construction of power generation, transmission and distribution facilities,
including an inability to obtain required governmental permits and approvals,
rights-of-way and siting, and risks related to contracting, construction and
start-up; operation of power generating facilities, including performance below
expected levels, breakdown or failure of equipment, availability of electrical
transmission capacity and the availability of water, natural gas, coal, diesel
and their associated delivery infrastructures; changes in operating expenses
and capital expenditures, including costs and availability of materials, fuel
and commodities; blackouts or other disruptions of Idaho Power Companys
transmission system or the western interconnected transmission system;
population growth rates and other demographic patterns; market prices and
demand for energy, including structural 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 necessary 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 government 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
obtain insurance; homeland security, acts of war or terrorism; natural
disasters and other natural risks, such as earthquake, flood, drought,
lightning, wind and fire; adoption of or changes in critical accounting
policies or estimates; and new accounting, Securities and Exchange Commission
or New York Stock Exchange 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 Annual
Report on Form 10-K for the year ended December 31, 2009, Quarterly Report on
Form 10-Q for the quarter ended March 31, 2010 and other reports on file with
the Securities 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 any factor, or combination of factors, may cause results to differ
materially from those contained in any forward-looking statement.
Page 5 of 5