INCOME TAXES: Income Taxes Level 3 (Tables)

12 Months Ended

Dec. 31, 2017

Income Taxes [Abstract]

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation between the statutory federal income tax rate and the effective tax rate is as follows:

	IDACORP									Idaho Power
	2017			2016			2015			2017			2016			2015
	(thousands of dollars)
Federal income tax expense at 35% statutory rate	$	91,378		$	82,151		$	84,154		$	90,163		$	79,250		$	83,724
Change in taxes resulting from:
AFUDC	(10,318		)	(11,278		)	(11,140		)	(10,318		)	(11,278		)	(11,140		)
Capitalized interest	1,513			2,000			2,693			1,513			2,000			2,693
Investment tax credits	(3,081		)	(2,922		)	(2,963		)	(3,081		)	(2,922		)	(2,963		)
Removal costs	(6,280		)	(5,559		)	(4,807		)	(6,280		)	(5,559		)	(4,807		)
Capitalized overhead costs	(11,200		)	(10,500		)	(8,750		)	(11,200		)	(10,500		)	(8,750		)
Capitalized repair costs	(28,700		)	(28,000		)	(28,700		)	(28,700		)	(28,000		)	(28,700		)
Bond redemption costs	—			(4,997		)	(6,459		)	—			(4,997		)	(6,459		)
Remeasurement of deferred taxes	1,690			—			—			1,970			—			—
State income taxes, net of federal benefit	8,153			5,071			7,343			8,108			4,880			7,503
Depreciation	18,953			18,673			17,149			18,953			18,673			17,149
Share-based compensation	(1,508		)	(1,614		)	—			(1,483		)	(1,583		)	—
Affordable housing tax credits	(2,559		)	(2,579		)	(3,258		)	—			—			—
Affordable housing investment distributions	(1,124		)	(1,717		)	—			—			—			—
Affordable housing investment amortization	1,271			1,380			1,519			—			—			—
Other, net	(9,528		)	(3,680		)	(1,021		)	(8,383		)	(2,779		)	(22		)
Total income tax expense	$	48,660		$	36,429		$	45,760		$	51,262		$	37,185		$	48,228
Effective tax rate	18.6%			15.5%			19.0%			19.9%			16.4%			20.2%

Schedule of Components of Income Tax Expense

The items comprising income tax expense are as follows:

	IDACORP									Idaho Power
	2017			2016			2015			2017			2016			2015
	(thousands of dollars)
Income taxes current:
Federal	$	11,726		$	1,181		$	4,831		$	51,575		$	7,639		$	16,470
State	5,418			2,158			2,704			10,562			3,766			6,056
Total	17,144			3,339			7,535			62,137			11,405			22,526
Income taxes deferred:
Federal	24,018			33,205			34,770			(13,002		)	27,506			27,696
State	(154		)	100			626			(5,298		)	(2,031		)	(2,486		)
Total	23,864			33,305			35,396			(18,300		)	25,475			25,210
Investment tax credits:
Deferred	10,506			3,227			3,455			10,506			3,227			3,455
Restored	(3,081		)	(2,922		)	(2,963		)	(3,081		)	(2,922		)	(2,963		)
Total	7,425			305			492			7,425			305			492
Affordable housing investments	227			(520		)	2,337			—			—			—
Total income tax expense	$	48,660		$	36,429		$	45,760		$	51,262		$	37,185		$	48,228

Schedule of Deferred Tax Assets and Liabilities

The components of the net deferred tax liability are as follows:

	IDACORP				Idaho Power
	2017		2016		2017		2016
	(thousands of dollars)
Deferred tax assets:
Regulatory liabilities	$	98,744	$	51,326	$	98,744	$	51,326
Deferred compensation	21,066		29,490		21,025		29,424
Deferred revenue	31,086		40,354		31,086		40,354
Tax credits	109,673		142,627		44,106		33,589
Partnership investments	3,540		6,543		—		—
Retirement benefits	94,493		132,362		94,493		132,362
Other	8,636		11,401		8,435		11,069
Total	367,238		414,103		297,889		298,124
Deferred tax liabilities:
Property, plant and equipment	306,002		500,987		306,002		500,987
Regulatory assets	584,329		948,540		584,329		948,540
Power cost adjustments	—		21,077		—		21,077
Fixed cost adjustment	8,016		17,376		8,016		17,376
Partnership investments	5,182		12,371		980		5,554
Retirement benefits	103,407		140,083		103,407		140,083
Other	21,242		17,919		21,097		15,922
Total	1,028,178		1,658,353		1,023,831		1,649,539
Net deferred tax liabilities	$	660,940	$	1,244,250	$	725,942	$	1,351,415