COMMITMENTS

Purchase Obligations

At December 31, 2015, Idaho Power had the following long-term commitments relating to purchases of energy, capacity, transmission rights, and fuel (in thousands of dollars):



	2016		2017		2018		2019		2020		Thereafter
Cogeneration and power production	$	199,156	$	233,197	$	241,356	$	234,772	$	234,316	$	3,592,891
Fuel	60,122		43,276		16,206		9,169		8,833		114,417

As of December 31, 2015, Idaho Power had 784 MW nameplate capacity of PURPA-related projects on-line, with an additional 448 MW nameplate capacity of projects projected to be on-line by June 1, 2017. Of the 448 MW nameplate capacity of projected PURPA-related projects at the end of 2015, as of February 5, 2016, three contracts with solar projects with a combined nameplate capacity of 25 MW had terminated. Termination of the agreements reduced Idaho Power's contractual payment obligations by approximately $74 million over the 20-year lives of the terminated contracts. The power purchase contracts for these projects have original contract terms ranging from one to 35 years. Idaho Power's expenses associated with PURPA-related projects were approximately $131 million in 2015, $145 million in 2014, and $131 million in 2013.

Idaho Power also has the following long-term commitments for lease guarantees, equipment, maintenance and services, and industry related fees (in thousands of dollars):



	2016		2017		2018		2019		2020		Thereafter
Operating leases	$	233	$	971	$	985	$	1,062	$	897	$	12,625
Equipment, maintenance, and service agreements	48,707		11,703		14,869		9,214		12,095		83,721
FERC and other industry-related fees	12,894		12,746		12,746		8,632		5,942		29,708

IDACORP’s expense for operating leases was approximately $4.4 million in 2015, $5.9 million in 2014, and $5.3 million in 2013.

Guarantees

Through a self-bonding mechanism, Idaho Power guarantees its portion of reclamation activities and obligations at BCC, of which IERCo owns a one-third interest. This guarantee, which is renewed annually with the Wyoming Department of Environmental Quality, was $73 million at December 31, 2015, representing IERCo's one-third share of BCC's total reclamation obligation. BCC has a reclamation trust fund set aside specifically for the purpose of paying these reclamation costs. At December 31, 2015, the value of the reclamation trust fund was $70 million. During 2015, the reclamation trust fund distributed approximately $6 million for reclamation activity costs associated with the BCC surface mine. BCC periodically assesses the adequacy of the reclamation trust fund and its estimate of future reclamation costs. To ensure that the reclamation trust fund maintains adequate reserves, BCC has the ability to add a per-ton surcharge to coal sales, all of which are made to the Jim Bridger plant. Starting in 2010, BCC began applying a nominal surcharge to coal sales in order to maintain adequate reserves in the reclamation trust fund. Because of the existence of the fund and the ability to apply a per-ton surcharge, the estimated fair value of this guarantee is minimal.

IDACORP and Idaho Power enter into financial agreements and power purchase and sale agreements that include indemnification provisions relating to various forms of claims or liabilities that may arise from the transactions contemplated by these agreements. Generally, a maximum obligation is not explicitly stated in the indemnification provisions and, therefore, the overall maximum amount of the obligation under such indemnification provisions cannot be reasonably estimated. IDACORP and Idaho Power periodically evaluate the likelihood of incurring costs under such indemnities based on their historical experience and the evaluation of the specific indemnities. As of December 31, 2015, management believes the likelihood is remote that IDACORP or Idaho Power would be required to perform under such indemnification provisions or otherwise incur any significant losses with respect to such indemnification obligations. Neither IDACORP nor Idaho Power has recorded any liability on their respective consolidated balance sheets with respect to these indemnification obligations.