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INCOME TAXES:
 6 Months Ended
Jun. 30, 2012
Income Taxes [Abstract]  
Income Taxes
INCOME TAXES
 
In accordance with interim reporting requirements, IDACORP and Idaho Power use an estimated annual effective tax rate for computing their provisions for income taxes. An estimate of annual income tax expense (or benefit) is made each interim period using estimates for annual pre-tax income, income tax adjustments, and tax credits. The estimated annual effective tax rates do not include discrete events such as tax law changes, examination settlements, or method changes. Discrete events are recorded in the interim period in which they occur.

The estimated annual effective tax rate is applied to year-to-date pre-tax income to determine income tax expense (or benefit) for the interim period consistent with the annual estimate. In subsequent interim periods, income tax expense (or benefit) for the period is computed as the difference between the year-to-date amount reported for the previous interim period and the current period's year-to-date amount.

Income Tax Expense

The following table provides a summary of income tax expense (benefit) for the three and six months ended June 30 (in thousands of dollars): 
 
 
IDACORP
 
Idaho Power
 
 
2012
 
2011
 
2012
 
2011
Three months ended June 30,
 
 
 
 
 
 
 
 
Income tax at statutory rates (federal and state)
 
$
17,935

 
$
6,744

 
$
18,513

 
$
7,150

Additional ADITC amortization
 
825

 
(2,895
)
 
825

 
(2,895
)
Examination settlement - capitalized repairs
 
—

 
(3,428
)
 
—

 
(3,428
)
Other
 
(8,191
)
 
(4,073
)
 
(6,699
)
 
(3,241
)
Income tax expense (benefit)
 
$
10,569

 
$
(3,652
)
 
$
12,639

 
$
(2,414
)
Effective tax rate
 
23.0
%
 
(21.2
)%
 
26.7
%
 
(13.2
)%
Six months ended June 30,
 
 
 
 
 
 
 
 
Income tax at statutory rates (federal and state)
 
$
30,941

 
$
20,284

 
$
32,642

 
$
21,633

Additional ADITC amortization
 
—

 
(6,750
)
 
—

 
(6,750
)
Examination settlement - capitalized repairs
 
—

 
(3,428
)
 
—

 
(3,428
)
Other
 
(12,039
)
 
(8,871
)
 
(9,688
)
 
(6,676
)
Income tax expense
 
$
18,902

 
$
1,235

 
$
22,954

 
$
4,779

Effective tax rate
 
23.9
%
 
2.4
 %
 
27.5
%
 
8.6
 %

 
The changes in year-to-date 2012 income tax expense as compared to the same period in 2011 were primarily due to greater pre-tax earnings and no utilization of additional accumulated deferred investment tax credit (ADITC) amortization (discussed below) at Idaho Power. Net regulatory flow-through tax adjustments at Idaho Power were higher for the six months ended June 30, 2012 as compared to the same period in 2011, primarily due to the capitalized repairs deduction estimate.

In the second quarter of 2012, Idaho Power reversed the $0.8 million of additional ADITC amortization recorded in the first quarter of 2012. Idaho Power utilized $2.9 million and $6.8 million of ADITC in the three and six months ended June 30, 2011 respectively. See Note 3 - "Regulatory Matters" for a discussion of Idaho Power's regulatory authority for use of additional ADITC amortization.