-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, d2K7Hq1iOWGXTCt10p4/uMCsFz2HcGm69uEHggx3pO7HMFfDKA72EnaQWvSn+U2c 1zqoO9gR2sLx64cXaaFthA== 0000049648-94-000019.txt : 19940614 0000049648-94-000019.hdr.sgml : 19940614 ACCESSION NUMBER: 0000049648-94-000019 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 6 CONFORMED PERIOD OF REPORT: 19940331 FILED AS OF DATE: 19940509 SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: IDAHO POWER CO CENTRAL INDEX KEY: 0000049648 STANDARD INDUSTRIAL CLASSIFICATION: 4911 IRS NUMBER: 820130980 STATE OF INCORPORATION: ID FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-03198 FILM NUMBER: 94526572 BUSINESS ADDRESS: STREET 1: 1221 W IDAHO ST STREET 2: PO BOX 70 CITY: BOISE STATE: ID ZIP: 83707 BUSINESS PHONE: 2083832200 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1994 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-3198 IDAHO POWER COMPANY (Exact name of registrant as specified in its charter) Idaho 82-0130980 (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification No.) 1221 W. Idaho Street, Boise, Idaho 83702-5627 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (208) 383-2200 None Former name, former address and former fiscal year, if changed since last report. Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Number of shares of Common Stock, $2.50 par value, outstanding as of April 30, 1994 is 37,344,299. IDAHO POWER COMPANY Index PART I. FINANCIAL INFORMATION: Page No Item 1. Financial Statements Consolidated Statements of Income - Three Months and Twelve Months Ended March 31, 1994 and March 31, 1993 3-4 Consolidated Balance Sheets - March 31, 1994 and December 31, 1993 5, 6 Consolidated Statements of Cash Flows - Three Months and Twelve Months Ended March 31, 1994 and March 31, 1993 7, 8 Consolidated Statements of Capitalization - March 31, 1994 and December 31, 1993 9 Notes to Consolidated Financial Statements 10-11 Report on Review by Independent Accountants 12 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 13-20 PART II. OTHER INFORMATION: Item 1. Legal Proceedings 21-22 Item 6. Exhibits and Reports on Form 8-K 23-24 Signatures 25 PART I - FINANCIAL INFORMATION IDAHO POWER COMPANY CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED March 31, 1994 AND 1993 ITEM 1. FINANCIAL STATEMENTS
Three Months Ended March 31, Increase 1994 1993 (Decrease) (Thousands of Dollars) REVENUES (Notes 1 and 4) $128,810 $140,809 $(11,999) EXPENSES (Note 1): Operation: Purchased power 5,214 8,495 (3,281) Fuel expense 25,487 25,984 (497) Other 28,847 35,077 (6,230) Maintenance 10,042 8,867 1,175 Depreciation 16,033 15,419 614 Taxes other than income taxes 5,779 5,488 291 Total expenses 91,402 99,330 (7,928) INCOME FROM OPERATIONS 37,408 41,479 (4,071) OTHER INCOME: Allowance for equity funds used during construction (Note 2) 726 795 (69) Other - Net 2,530 2,775 (245) Total other income 3,256 3,570 (314) INTEREST CHARGES: Interest on long-term debt 12,795 13,613 (818) Other interest 719 307 412 Total interest charges 13,514 13,920 (406) Allowance for borrowed funds used during construction and capitalized interest (Note 2) (516) (828) 312 Net interest charges 12,998 13,092 (94) INCOME BEFORE INCOME TAXES 27,666 31,957 (4,291) INCOME TAXES 9,406 10,610 (1,204) NET INCOME 18,260 21,347 (3,087) Dividends on preferred stock 1,789 1,345 444 EARNINGS ON COMMON STOCK $ 16,471 $ 20,002 $ (3,531) AVERAGE COMMON SHARES OUTSTANDING (000) 37,249 36,338 N/A Earnings per share of common stock $ 0.44 $ 0.55 $ (0.11) Dividends paid per share of common stock $ 0.465 $ 0.465 $ - The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY CONSOLIDATED STATEMENTS OF INCOME FOR THE TWELVE MONTHS ENDED March 31, 1994 and 1993
Twelve Months Ended March 31, Increase 1994 1993 (Decrease) (Thousands of Dollars) REVENUES (Notes 1 and 4) $528,403 $524,449 $ 3,954 EXPENSES (Note 1): Operation: Purchased power 42,079 62,775 (20,696) Fuel expense 87,358 99,882 (12,524) Other 115,024 109,433 5,591 Maintenance 44,310 35,868 8,442 Depreciation 59,337 60,395 (1,058) Taxes other than income taxes 22,420 20,687 1,733 Total expenses 370,528 389,040 (18,512) INCOME FROM OPERATIONS 157,875 135,409 22,466 OTHER INCOME: Allowance for equity funds used during construction (Note 2) 2,991 2,972 19 Other - Net 9,678 8,867 811 Total other income 12,669 11,839 830 INTEREST CHARGES: Interest on long-term debt 52,889 54,339 (1,450) Other interest 3,161 1,392 1,769 Total interest charges 56,050 55,731 319 Allowance for borrowed funds used during construction and capitalized interest (Note 2) (2,153) (2,818) 665 Net interest charges 53,897 52,913 984 INCOME BEFORE INCOME TAXES 116,647 94,335 22,312 INCOME TAXES 35,270 26,376 8,894 NET INCOME 81,377 67,959 13,418 Dividends on preferred stock 6,453 5,437 1,016 EARNINGS ON COMMON STOCK $ 74,924 $ 62,522 $ 12,402 AVERAGE COMMON SHARES OUTSTANDING (000) 36,902 35,670 N/A Earnings per share of common stock $ 2.03 $ 1.75 $ 0.28 Dividends paid per share of common stock $ 1.86 $ 1.86 $ - The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY CONSOLIDATED BALANCE SHEETS ASSETS
March 31, December 31, 1994 1993 (Thousands of Dollars) ELECTRIC PLANT: In service (at original cost) $2,302,642 $2,249,723 Less accumulated provision for depreciation 740,755 728,979 In service - Net 1,561,887 1,520,744 Construction work in progress 62,429 92,682 Held for future use 2,958 2,958 Electric plant - Net 1,627,274 1,616,384 INVESTMENTS AND OTHER PROPERTY 19,956 20,772 CURRENT ASSETS: Cash and cash equivalents 4,804 8,228 Receivables: Customer 30,976 29,741 Less allowance for uncollectible accounts (1,572) (1,377) Notes 5,570 5,616 Employee notes receivable 5,927 5,909 Other 3,035 1,858 Accrued unbilled revenues (Note 1) 18,774 25,583 Materials and supplies (at average cost) 23,331 23,372 Fuel stock (at average cost) 9,944 11,553 Prepayments 19,086 20,975 Regulatory assets associated with income taxes 4,967 4,914 Total current assets 124,842 136,372 DEFERRED DEBITS: American Falls and Milner water rights 32,755 32,755 Company owned life insurance 44,721 45,294 Regulatory assets associated with income taxes 173,039 171,569 Regulatory assets other 38,974 35,036 Other 40,273 39,235 Total deferred debits 329,762 323,889 TOTAL $2,101,834 $2,097,417 The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY CONSOLIDATED BALANCE SHEETS CAPITALIZATION & LIABILITIES
March 31, December 31, 1994 1993 (Thousands of Dollars) CAPITALIZATION (SEE PAGE 9): Common stock equity - $2.50 par value (shares authorized 50,000,000; shares outstanding March 31, 1994 - 37,331,367; December 31, 1993 - 37,085,055) $ 651,028 $ 662,367 Preferred stock 132,632 132,751 Long-term debt (Note 5) 693,786 693,780 Total capitalization 1,477,446 1,488,898 CURRENT LIABILITIES: Long-term debt due within one year 466 466 Notes payable 2,000 4,000 Accounts payable 20,879 31,912 Taxes accrued 22,175 15,452 Interest accrued 14,303 14,920 Other 31,536 13,731 Total current liabilities 91,359 80,481 DEFERRED CREDITS: Accumulated deferred investment tax credits 71,836 72,013 Accumulated deferred income taxes 363,289 358,280 Regulatory liabilities associated with income taxes 35,065 34,968 Regulatory liabilities 3,359 4,235 Other 59,480 58,542 Total deferred credits 533,029 528,038 COMMITMENTS AND CONTINGENT LIABILITIES (NOTE 3) TOTAL $2,101,834 $2,097,417 The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 1994 AND 1993
Three Months Ended March 31 1994 1993 (Thousands of Dollars) OPERATING ACTIVITIES: Cash received from operations: Retail revenues $112,537 $116,847 Wholesale revenues 18,110 16,879 Other revenues 5,614 5,860 Fuel paid (25,263) (23,037) Purchased power paid (7,581) (15,163) Other operation & maintenance paid (41,303) (36,462) Interest paid (includes long and short-term debt only) (13,411) (18,724) Income taxes paid (2,030) (1,508) Taxes other than income taxes paid (1,883) (1,702) Other operating cash receipts and payments-Net (4,506) (1,146) Net cash provided by operating activities 40,284 41,844 FINANCING ACTIVITIES: PC bond fund requisitions/other long-term debt - 4,376 Common stock issued 6,765 6,589 Short-term borrowings (2,000) (1,000) Long-term debt retirement (16) (16) Preferred stock retirement (76) (7) Dividends on preferred stock (1,814) (1,386) Dividends on common stock (17,250) (16,833) Net cash - financing activities (14,391) (8,277) INVESTING ACTIVITIES: Additions to utility plant (26,513) (30,076) Conservation (1,384) (1,490) Other (1,420) 488 Net cash - investing activities (29,317) (31,078) Change in cash and cash equivalents (3,424) 2,489 Cash and cash equivalents beginning of period 8,228 4,966 Cash and cash equivalents end of period $ 4,804 $ 7,455 RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Net Income $ 18,260 $ 21,347 Adjustments to reconcile net income to net cash: CSPP-Net amortization/(deferral) - (519) Depreciation 16,033 15,419 Deferred income taxes 4,032 1,790 Investment tax credit-Net (177) (124) Allowance for funds used during construction (1,242) (1,623) Postretirement benefits funding (excl pensions) (1,336) (884) Changes in operating assets and liabilities: Accounts receivable 7,451 (1,223) Fuel inventory 224 2,947 Accounts payable (2,367) (6,149) Taxes payable 7,426 11,236 Interest payable (95) (4,846) Other - Net (7,925) 4,473 Net cash provided by operating activities $ 40,284 $ 41,844 The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE TWELVE MONTHS ENDED MARCH 31, 1994 AND 1993
Twelve Months Ended March 31, 1994 1993 (Thousands of Dollars) OPERATING ACTIVITIES: Cash received from operations: Retail revenues $430,315 $443,990 Wholesale revenues 85,957 46,017 Other revenues 23,165 26,430 Fuel paid (86,111) (93,776) Purchased power paid (42,664) (64,085) Other operation & maintenance paid (166,854) (148,161) Interest paid (includes long and short-term debt only) (51,035) (56,148) Income taxes paid (33,034) (15,937) Taxes other than income taxes paid (22,347) (21,416) Other operating cash receipts and payments-Net 4,853 (4,302) Net cash provided by operating activities 142,245 112,612 FINANCING ACTIVITIES: First mortgage bonds issued 188,136 - PC bond fund requisitions/other long-term debt 1,218 12,398 Common stock issued 26,957 56,802 Preferred stock issued 24,781 - Short-term borrowings (3,140) 5,000 Long-term debt retirement (191,877) (52,086) Preferred stock retirement (134) (104) Dividends on preferred stock (6,343) (5,388) Dividends on common stock (68,376) (66,077) Net cash - financing activities (28,778) (49,455) INVESTING ACTIVITIES: Additions to utility plant (119,386) (120,574) Conservation (6,581) (5,795) Other 9,849 3,617 Net cash - investing activities (116,118) (122,752) Change in cash and cash equivalents (2,651) (59,594) Cash and cash equivalents beginning of period 7,455 67,049 Cash and cash equivalents end of period $ 4,804 $ 7,455 RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Net income $ 81,377 $ 67,959 Adjustments to reconcile net income to net cash: CSPP-Net amortization/(deferral) - (3,649) Depreciation 59,337 60,395 Deferred income taxes 8,932 7,858 Investment tax credit-Net (1,635) (1,192) Allowance for funds used during construction (5,144) (5,790) Postretirement benefits funding (excl pensions) (7,932) (9,287) Changes in operating assets and liabilities: Accounts receivable 11,034 (8,012) Fuel inventory 1,247 6,106 Accounts payable (584) 2,340 Taxes payable (4,952) 3,104 Interest payable 3,741 (722) Other - Net (3,176) (6,498) Net cash provided by operating activities $142,245 $112,612 The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY CONSOLIDATED STATEMENTS OF CAPITALIZATION
March 31, December 31, 1994 1993 (Thousands of Dollars) COMMON STOCK EQUITY: Common stock (Note 5) $ 93,328 $ 92,713 Premium on capital stock 357,065 350,882 Capital stock expense (4,128) (4,128) Retained earnings 204,763 222,900 Total common stock equity 651,028 44.1% 662,367 44.5% PREFERRED STOCK, cumulative, ($100 PAR OR STATED VALUE): 4% preferred stock (authorized 215,000; shares outstanding: 1994-176,319; 1993-177,506) 17,632 17,751 Serial preferred stock, authorized 150,000 shares: 7.68% Series, outstanding 150,000 shares 15,000 15,000 Serial preferred stock, without par value, authorized 3,000,000 shares: 8.375% Series (authorized and outstanding 250,000 shares) 25,000 25,000 Auction Rate Preferred Series A (authorized and outstanding 500 shares) 50,000 50,000 7.07% Series (authorized and outstanding 250,000 shares) 25,000 25,000 Total preferred stock 132,632 9.0 132,751 8.9 LONG-TERM DEBT (NOTE 5): First mortgage bonds: 5 1/4% Series due 1996 20,000 20,000 5.33 % Series due 1998 30,000 30,000 8.65 % Series due 2000 80,000 80,000 6.40 % Series due 2003 80,000 80,000 8 % Series due 2004 50,000 50,000 9.50% Series due 2021 75,000 75,000 7.50% Series due 2023 80,000 80,000 8 3/4% Series due 2027 50,000 50,000 9.52% Series due 2031 25,000 25,000 Total first mortgage bonds 490,000 490,000 Pollution control revenue bonds: 5.90 % Series due 2003 25,050* 25,050* 6 % Series due 2007 24,000 24,000 7 1/4% Series due 2008 4,360 4,360 7 5/8% Series 1983-1984 due 2013-2014 68,100 68,100 8.30 % Series 1984 due 2014 49,800 49,800 Total pollution control revenue bonds 171,310 171,310 *Less amount due within one year (400) (400) Net pollution control revenue bonds 170,910 170,910 REA Notes 1,817 1,834 Less amount due within one year (66) (66) Net REA Notes 1,751 1,768 American Falls bond guarantee 21,055 21,055 Milner Dam note guarantee 11,700 11,700 Unamortized premium/discount - Net (1,630) (1,653) Total long-term debt 693,786 46.9 693,780 46.6 TOTAL CAPITALIZATION $1,477,446 100.0% $1,488,898 100.0% The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. SUMMARY OF ACCOUNTING POLICIES: FINANCIAL STATEMENTS In the opinion of the Company, the accompanying unaudited financial statements contain all adjustments necessary to present fairly the consolidated financial position as of March 31, 1994 and the consolidated results of operation for the three months and twelve months ended March 31, 1994 and 1993 and the consolidated cash flows for the three months and twelve months then ended. These condensed financial statements do not contain the complete detail or footnote disclosure concerning accounting policies and other matters which would be included in full year financial statements and therefore they should be read in conjunction with the Company's audited financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 1993. The results of operation for the interim periods are not necessarily indicative of the results to be expected for the full year. PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Idaho Energy Resources Co (IERCo), Idaho Utility Products Company (IUPCo), IDACORP, INC. and Ida-West Energy Company (Ida-West). All significant intercompany transactions and balances have been eliminated in consolidation. REVENUES In order to match revenues with associated expenses, the Company accrues unbilled revenues for electric services delivered to customers but not yet billed at month-end. CASH FLOWS For purposes of reporting cash flows, cash and cash equivalents include cash on hand and highly liquid temporary investments with original maturity dates of three months or less. RECLASSIFICATIONS Certain items previously reported for periods prior to 1994 have been reclassified to conform with the current year's presentation. Net income was not affected by these reclassifications. 2. ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION (AFDC): The allowance, a non-cash item, represents the composite interest costs of debt, shown as a reduction to interest charges, and a return on equity funds, shown as an addition to other income, used to finance construction. While cash is not realized currently from such allowance, it is realized under the rate making process over the service life of the related property through increased revenues resulting from higher rate base and higher depreciation expense. Based on the uniform formula adopted by the Federal Energy Regulatory Commission, the Company's weighted average monthly AFDC rate for the three months ended March 31, 1994, was 9.1 percent and was 9.6 percent for the entire year of 1993. 3. COMMITMENTS AND CONTINGENT LIABILITIES: Commitments under contracts and purchase orders relating to the Company's program for construction and operation of facilities amounted to approximately $22,800,000 at March 31, 1994. The commitments are generally revocable by the Company subject to reimbursement of manufacturers' expenditures incurred and/or other termination charges. The Company is party to various legal claims, actions and complaints, certain of which involve material amounts. Although the Company is unable to predict with certainty whether or not it will ultimately be successful in these legal proceedings or, if not, what the impact might be, based upon the advice of legal counsel, management presently believes that disposition of these matters will not have a material adverse effect on the Company's financial position, results of operations or cash flows. 4. POWER COST ADJUSTMENT: The Company has in place a power cost adjustment (PCA) mechanism which allows the customer's rates to be adjusted annually to reflect the Company's forecasted net power supply costs. Deviations from forecasted costs are deferred with interest and then adjusted (trued-up) in the subsequent year. The Company is currently recording a PCA debit in the amount of $1.5 million at March 31, 1994. The current balance is adjusted monthly as actual conditions are compared to the forecasted net power supply costs. 5. FINANCING: (a) Debt: The Company currently has a $200,000,000 shelf registration statement which can be used for both First Mortgage Bonds (including Medium Term Notes) and Preferred Stock. (b) Stock: The Company currently issues original issue shares of common stock for its Dividend Reinvestment and Stock Purchase Plan, Employee Savings Plan, and Employee Stock Ownership Plan. For the three months ended March 31, 1994, 246,312 shares have been issued to these plans and 898,528 shares were issued for the entire year of 1993. INDEPENDENT ACCOUNTANTS' REPORT Idaho Power Company Boise, Idaho We have reviewed the accompanying consolidated balance sheet and statement of capitalization of Idaho Power Company and subsidiaries as of March 31, 1994 and the related consolidated statements of income and of cash flows for the three-month and twelve-month periods ended March 31, 1994 and 1993. These financial statements are the responsibility of the Company's management. We conducted our review in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to such consolidated financial statements for them to be in conformity with generally accepted accounting principles. We have previously audited, in accordance with generally accepted auditing standards, the consolidated balance sheet and statement of capitalization of Idaho Power Company and subsidiaries as of December 31, 1993 and the related consolidated statements of income, retained earnings, and cash flows for the year then ended (not presented herein); and in our report dated January 29, 1994, we expressed an unqualified opinion on those consolidated financial statements (which includes an explanatory paragraph relating to a change in the Company's method of accounting for income taxes and postretirement benefits in the year ended December 31, 1993). In our opinion, the information set forth in the accompanying consolidated balance sheet and statement of capitalization as of December 31, 1993 is fairly stated, in all material respects, in relation to the consolidated balance sheet and statement of capitalization from which it has been derived. DELOITTE & TOUCHE Portland, Oregon April 29, 1994 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Idaho Power Company's consolidated, wholly-owned subsidiaries consist of Idaho Energy Resources Co. (IERCO), Ida-West Energy Company (Ida- West), IDACORP, INC, and Idaho Utility Products Company (IUPCO). Together, Idaho Power and these subsidiaries are referred to herein as the Company. The Company is a predominately hydroelectric utility and as such, its results of operations, like those of certain other utilities in the Northwest, can be significantly affected by weather and streamflow conditions. Variations in energy usage by general business consumers occur from season to season and from month to month within a season, primarily as a result of weather conditions. Sales of non-firm (off- system) energy to other utilities also vary by quarters and years, depending principally upon water conditions for the generation of hydro energy coinciding with the energy requirements of other utilities. Operating costs fluctuate principally due to the impact of increased reliance on thermal generation or purchases of power from others during periods of reduced hydroelectric generation capability or strong non- firm energy market conditions. When fully implemented in the Idaho jurisdiction, the Power Cost Adjustment (PCA) mechanism (which includes a major portion of the operating expenses with the largest variation potential) will allow the Company's future operating and earnings per share results to be more dependent upon general regulatory, economic, and temperature related weather conditions and less on precipitation related weather and streamflow conditions. EARNINGS PER SHARE Earnings per share of common stock were $0.44 for the quarter and $2.03 for the twelve months ended March 31, 1994. These earnings result in an 11 cent (20 percent) decrease for the three month period, and a 28 cent (16 percent) increase for the twelve month period. The twelve month earnings equate to an 11.5 percent earned return on year-end March 31, 1994 common equity compared to the 10.1 percent earned through March 31 of last year. RESULTS OF OPERATIONS PRECIPITATION AND STREAMFLOWS The first three months of 1994 were characterized by below normal precipitation and above normal temperatures throughout the service territory. For the Snake River above Brownlee Reservoir (water source to the three dam Hells Canyon complex which generates about half of the electricity produced by the Company in a normal year), the average snowpack is 59 percent of the 30-year average compared to 90 percent of average last year at this time. However, reservoir storage above Brownlee is 80 percent of capacity and 115 percent of average this year compared to 54 percent of capacity a year ago. Inflows into Brownlee result from a combination of precipitation, storage and ground water conditions and at this time are expected to be 2.9 million acre-feet (MAF) or approximately 60 percent of the 65-year median of 4.8 MAF during the April-July period. ENERGY REQUIREMENTS The Company's total system energy requirements for the three month period have been supplied from the following sources: hydro generation 45 percent, thermal generation 51 percent and purchased power and other interchanges 4 percent. This compares to a total system energy requirement of 46 percent hydro, 48 percent thermal and 6 percent from purchased power and other interchanges for the same period of 1993. With precipitation and streamflows below normal, the Company estimates that 44 percent of its 1994 energy requirements will come from hydro generation, 45 percent from thermal generation and 11 percent from purchased power and other interchanges. Under normal conditions, the Company's hydro system would contribute approximately 58 percent with thermal generation accounting for approximately 36 percent and the remaining 6 percent from purchased power and other interchanges. POWER COST ADJUSTMENT The Company has a Power Cost Adjustment (PCA) mechanism in its Idaho jurisdiction that enables the Company to collect, or refund a portion of the difference between net power supply costs actually incurred and those allowed in the base rates of the Company. The PCA is adjusted monthly as actual conditions are compared to the forecasted net power supply costs. At March 31, 1994, the Company had recorded $1.5 million of power supply costs above those projected in the 1993 forecast which will be included in the true-up portion of the 1994 PCA. Currently, 60 percent of the net power supply cost deviations from normalized rates are included in the PCA. After the Company's next general revenue requirement case is completed, the PCA will be raised to 90 percent of net power supply cost deviations. The Company filed its 1994 PCA application on April 15, 1994. This application requests an increase in the Idaho jurisdiction base rates. The increase over last year's PCA adjustment, for the period May 16, 1994 through May 15, 1995, is approximately $9.8 million or 2.5 percent which includes last year's true-up and other adjustments. REVENUES General business revenues were down for both the quarter ($11.0 million or 9.8 percent) and twelve months ending March 31, 1994 ($30.4 million or 6.8 percent). The quarterly decrease reflects above normal winter temperatures (compared to a more normal winter in 1993) which reduced demand in weather sensitive (residential and small commercial) customer classes. Additionally, large industrial loads were down due to reduced demand caused by temporary changes in operations at the FMC Corporation. The decline was somewhat offset by an increase in total general business customers served of 10,935, a 3.5 percent increase when compared to March 31, 1993. The reduction for the twelve month period reflects the first quarter changes as well as decreased 1993 irrigation loads caused by above normal precipitation during the spring and cool summer temperatures. Again, these decreases in revenues were partially offset by the increase in general business customers. Both periods also include the effect of the expiration in 1993 of the one- year temporary drought rate related rate relief approved in May 1992, by the IPUC and the addition of the PCA instituted in May 1993. Firm sales were up $6.4 million and $13.1 million for the quarter and twelve month periods ended March 31, 1994. These increases were due to the addition of two firm contracts signed during 1993. Surplus sales were down $7.6 million during the first quarter but were up $21.0 million for the twelve month period. The decrease reflects the lower precipitation received during the quarter and resultant reduced hydro-generation and less favorable market conditions while the increase reflects the improved hydro-generation conditions experienced during the last nine months of 1993. Total operating revenues declined $12.0 million (8.5 percent) for the first three months of 1994 but improved $4.0 million (0.8 percent) for the twelve months ended March 31, 1994, when compared to the corresponding periods a year ago. GENERAL REVENUE REQUIREMENT CASE In April, the Company filed a notice with the IPUC stating its current intention to file a general revenue requirement rate case in its Idaho jurisdiction on or after June 8, 1994. The purpose of the filing would be to bring all of the Company's cost components to a current level in response to concerns expressed by the IPUC and various customer groups in recent regulatory proceedings. In this filing, the Company's allowed return on equity, among other things, will be subject to review. Recently allowed returns on common equity granted nationally have declined. This has created a contrast for some utilities with dividend payout levels set during periods of higher allowed returns. The Company will request an allowed return on equity above its present dividend yield on year-end book value sufficient to provide, among other things, current earnings to cover dividend payments, but cannot predict the final outcome of such rate proceedings in the current low interest rate environment. EXPENSES Total operating expenses were down $7.9 million (8.0 percent) for the quarter and $18.5 million (4.8 percent) for the twelve months ended March 31,1994. Purchased power and fuel expenses were lower for both the three and twelve month periods. These declines reflect reduced firm energy sales and less favorable surplus market conditions during the first quarter and the improved hydro-generation conditions for the last nine months of 1993 compared with 1992, a year of severe drought. All other operation and maintenance expenses were down $5.1 million for the three months ended March 31, 1994 but were up $14.0 million for the twelve month period. The decline for the quarter reflects unusually high expenses in 1993 resulting from the deferral of certain net power supply costs from 1992 into 1993 to match revenues collected under the temporary rate surcharge. The increase for the twelve month period is due to increased maintenance expense as the Company returned to a more normal level of operation in 1993 and 1994 as contrasted with the drought affected year of 1992. It also reflects increases in certain regulatory commission and employee payroll and benefit expenses. Depreciation expense increased as a result of greater plant investment base. Total interest expense remained fairly constant for the three and twelve month periods reflecting the refinancing done during 1993 which reduced long-term interest expense and increases in other interest expense associated with tax settlements with the Internal Revenue Service. Income taxes decreased for the quarter but increased for the twelve month period reflecting the changes in pre-tax income. IDA-WEST Ida-West Energy Company (Ida-West), a wholly owned subsidiary of the Company, through various partnerships, owns 50 percent of five hydroelectric projects located in Idaho with a total generating capacity of approximately 34 megawatts, all of which are operated by an Ida-West subsidiary. Third parties unaffiliated with Ida-West own the remaining 50 percent of these projects, thus satisfying "qualifying facility" status under PURPA guidelines. These partnerships have obtained project financing (nonrecourse to the Company) for each of these facilities. As a result of a construction-related incident involving the Falls River Project in 1992, the FERC issued a notice proposing civil penalties of no more than $500,000 against the project entity for alleged license and FERC regulation violations. In a settlement approved by the FERC on March 30, 1994, the project entity agreed to pay a civil penalty of $300,000, which was previously recorded as a liability, without admitting any violations. As part of its Resource Contingency Program, the Bonneville Power Administration (BPA) requested proposals to provide up to 800 average megawatts of energy options. Ida-West along with two partners submitted a proposal for a 227 megawatt gas-fired cogeneration project to be located near Hermiston, Oregon, which was one of ten projects being given final consideration by BPA. On June 4, 1993, BPA selected the partnership's project, together with two other projects, to participate in the program. The partnership and BPA have signed an option development agreement that grants BPA an option to acquire energy and capacity from the project, including an exclusive right to acquire energy and capacity from a second 233 megawatt unit at the site, at any time during a five-year option hold period after all option development period tasks, including permitting, have been completed and that entitles the partnership to reimbursement by BPA for certain development costs based on milestones achieved. In addition, in March 1994, BPA and the partnership reached agreement on the power purchase contract setting forth the terms and conditions on which BPA will purchase energy and capacity from the project upon exercise of the option. The partnership expects the project development period tasks to be completed by year-end 1995. Project financing for construction costs would be non-recourse to the Company. The Company's total equity investment in Ida-West is $20 million. Ida- West continues to actively seek new projects. LIQUIDITY AND CAPITAL RESOURCES CASH FLOW Net cash generation from operations for the three months ended March 31, 1994 amounted to $40.3 million. After deducting for both common and preferred dividends, net cash generation from operating activities provided approximately $21.2 million (a 10.2 percent decrease from the same period of 1993) for the Company's construction program and other capital requirements. CASH EXPENDITURES The Company's cash construction program for 1994 is presently estimated to require cash funds of approximately $119.5 million. Generating facilities comprise approximately 39 percent of the total required cash funds, transmission 11 percent, distribution 31 percent with the balance for general plant and equipment. This estimate is subject to revision in light of changing economic, regulatory and environmental factors and conservation policies. Approximately $27.9 million was expended during the first three months for construction and conservation. The Company's primary financial commitments and obligations are related to contracts and purchase orders associated with the ongoing construction program and are expected to be financed using both internally generated funds and externally financed capital to the extent required. Although the Company has regulatory approval to incur up to $150 million of bank borrowings, it presently maintains lines of credit aggregating $70 million with various banks which may be used to finance a portion of the construction program on an interim basis. At March 31, 1994, the Company had $3.4 million of temporary cash investments and short-term borrowings of $2.0 million. FINANCING PROGRAM The Company continues to issue original issue shares through its Employee Savings, Dividend Reinvestment and Stock Purchase and Employee Stock Ownership Plans. During the first three months 246,312 shares were issued, producing approximately $6.8 million in proceeds to the Company. The Company anticipates issuing sufficient shares of common stock through these plans to generate approximately $13 million during 1994. The Company has on file a shelf registration statement for the issuance of first mortgage bonds and/or preferred stock with a total aggregate principal amount not to exceed $200 million. The Company's current objective is to maintain capitalization ratios of approximately 45 percent common equity, 8 to 10 percent preferred stock and the balance long-term debt. The Company's strategy is to achieve this target structure through accumulated earnings and issuance of new equity. The Company continues to explore cost savings through the economic refunding of current outstanding issues. For the twelve month period ended March 31, 1994 the Company's consolidated pre-tax interest coverage was 3.08 times. CONSTRUCTION PROGRAM Testing of unit one at the Swan Falls project was completed and the unit was declared available for commercial operation. Testing on unit 2 is nearly complete and is expected to be available for operation in early May 1994. Additional work to preserve the old historical power plant site will be completed by year-end 1994. Expansion of the Twin Falls project continues with completion estimated for mid-1995. Revised total cash expenditures of the Twin Falls expansion are currently estimated at $39.6 million with total construction costs at $42.4 million including allowance for funds used during construction. These two projects will add 56 megawatts of new capacity when completed. The Company continues to explore the economic feasibility of constructing the Southwest Intertie Project. Approval of the Final Environmental Impact Statement/Proposed Plan Amendment from the Bureau of Land Management is expected during the second quarter of 1994. The Company has commenced negotiations with various utilities and electric providers for financial participation in the project. It is the Company's intention to retain up to a 20 percent ownership in the line. SALMON RECOVERY PLAN The Company continues to be actively involved with the long-term survival of anadromous fish runs on the Columbia and Lower Snake Rivers. The Company fully supports and actively participates in the regional effort to develop a comprehensive and scientifically credible recovery program for the salmon. The Snake River Salmon Recovery Team submitted its Draft Recovery Plan (Draft Plan) to the National Marine Fisheries Service (NMFS) detailing its draft recommendations for restoring the listed Snake River salmon runs. The Company has concluded a review of the 500-page report and believes it sets forth a course of action that if fully implemented could lead to a successful recovery. The Draft Plan details comments regarding some institutional changes and responsibility for management of the recovery efforts. It suggests reductions in the ocean and in- river harvest rates, calls for significant improvements in transportation and collection systems, supports flow augmentation and habitat improvements, calls for a test drawdown of the Lower Granite Reservoir on the Snake River and suggests habitat, hatchery and predation improvements. The Company will continue to closely monitor the finalization of the Draft Plan which is to be released in 1994. Pending the completion of a final recovery plan by the NMFS, the U.S. Army Corps of Engineers and other governmental agencies responsible for operating the federally-owned dams and reservoirs on the Snake and Columbia Rivers, have annually consulted with the NMFS regarding federal system operations. On March 28, 1994, Judge Malcolm Marsh of the U.S. District Court for the District of Oregon ordered the federal agencies to reinitiate the consultation completed for the 1993 operation of the federal system. Judge Marsh concluded that the consultations and subsequent operation of the federal system was "...too heavily geared towards a status quo that has allowed all forms of river activity to proceed..." at the expense of the fish. Although the Company has coordinated its operations to aid the federal agencies with their salmon recovery efforts, neither the Company nor the operation of any of the Company's facilities was directly involved in this litigation. It is possible that the court ordered re-consultation could lead to a change in operations for Company facilities in 1994. The Company is unable to assess the impacts, if any, that might occur as a result of any such changes. It is possible the final recovery plan could have a material impact on the Company, as well as every other person, community and industry in the Northwest that depend on the Snake and Columbia Rivers. The Company is hopeful that the anadromous fish runs can be restored to the level that society demands without undue hardship placed upon the Company and those who benefit from its service. RELICENSING The Company's internal task force continues to vigorously pursue the relicensing of its hydro electric projects during the next 10 to 15 years. Although various federal relicensing requirements and issues need to be resolved in the relicensing process, the Company anticipates that its efforts in this matter for all of the hydro facilities will prove to be successful. The Company can not anticipate what type of environmental or operational requirements may be placed on the projects in the relicensing process, nor can it estimate what the eventual cost will be for relicensing. COMPETITION The electric utility industry in general has become, and is expected to be, increasingly competitive due to a variety of regulatory, economic and technological developments. With the advent of this more competitive environment, the Company continues to review and proceed with its ongoing strategic planning process. The Company's goal is to anticipate and fully integrate into its operations any legislative, regulatory, environmental, competitive and technological changes. The Company is well positioned to succeed in a more competitive environment with its low cost of energy production and is taking action to preserve its competitive advantage. In September 1993, the Company submitted a detailed position paper to its state regulators and other interested parties outlining proposed resource acquisition policy changes. With the potential deregulation of the electric utility industry and a more competitive power supply market place, the Company believes that current resource acquisition policies must be changed to avoid burdening the Company and customers with unnecessary future power supply costs. The Company believes that the appropriate criteria to be utilized in establishing the requirement for future supply additions is need at the time of development and that the addition is the least-cost market alternative. Accordingly, in December 1993, the Company filed with the Idaho Public Utilities Commission (IPUC) for permission to approve lower prices for new cogeneration and small power production (CSPP) contracts. In response to the Company's filing, the IPUC found that there is good reason to believe that current Idaho CSPP purchase rates are too high and that rates contained in new CSPP contracts are subject to revision based on its final outcome. On March 29, 1994 the Company filed an application with the IPUC seeking approval of the terms of a proposed cancellation of a January 22, 1993 Firm Energy Sales Agreement between Meridian Generating Company, L.P. (MGC) and the Company. The Firm Energy Sales Agreement is a 25-year agreement with MGC for a 54 MW natural gas-fired combined cycle cogeneration facility located in Meridian, Idaho with an estimated annual net firm energy production of 418,200 MWH and a scheduled operation date of January 1, 1996. The Company can replace the MGC agreement with less expensive power from an alternate source. The Company estimates that the revenue requirement savings, including cancellation charges paid to MGC, is between $130 to $170 million. The IPUC placed this filing on Modified Procedures on April 12, 1994 with a deadline of May 6, 1994 for interested parties to file written comments or protests. Rosebud Enterprises, Inc. (Rosebud) filed a Complaint against the Company with the IPUC alleging that the Company unlawfully refused to sign a contract to purchase the output of a 40 MW petroleum waste-fired electric generating plant Rosebud proposes to build near Mountain Home, Idaho (Mountain Home Project). Because the Mountain Home Project is larger than 10 MW, the IPUC's established rates for small CSPP projects are not available to Rosebud. The parties have not been successful in negotiating a purchase price for the output of the Mountain Home Project. On April 20, 1994, the IPUC issued an Order clarifying the parameters for further negotiations and determining dispute resolution procedures to be followed if the parties are unable to negotiate a mutually acceptable purchase price. PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS On December 6, 1991, a complaint entitled Nez Perce Tribe, Plaintiff, v. Idaho Power Company, Defendant, Civil No. CIV 91-0517-S-EJL, was filed against the Company in the United States District Court for the District of Idaho. The Company was served with the Complaint on March 26, 1992. In the Complaint, the Tribe contends that pursuant to treaties with the United States Government including the Treaty of June 11, 1855, 12 Stat. 957, and the Treaty of June 9, 1863, 14 Stat. 647, the right to take fish at all usual and accustomed fishing places outside the Nez Perce Reservation and the exclusive right to take fish in all streams running through or bordering the reservation were reserved for the Tribe in said treaties. The Complaint further states that the Snake River supported substantial runs of anadromous fish and that the construction of Brownlee, Oxbow and Hells Canyon Dams in 1958, 1961 and 1967, respectively, created total barriers to the migration of the anadromous fish, thereby destroying the fish runs and violating the reserved fishing rights stated in the above-described treaties. In the Complaint, the Tribe seeks actual, incidental and consequential damages in amounts to be proven at trial together with $150,000,000 in punitive damages as well as pre and post-judgment interest and costs and attorney fees. On September 11, 1992, the Tribe filed an Amended Complaint in which it amplified its original Complaint by asserting that Brownlee, Oxbow and Hells Canyon Dams were "constructed, operated and maintained in such a manner as to damage plaintiff's rights" to harvest fish, which rights the Tribe asserts to be "present, possessory property right(s)". As the basis for its alleged right to recover damages from the Company, the Tribe asserts that the Company negligently constructed, operated and maintained Brownlee, Oxbow and Hells Canyon Dams, that the Company negligently failed to prevent or mitigate harm to the Tribe, that the Company intentionally and willfully destroyed, interfered with, and dispossessed the Tribe of its property rights, and that the Company improperly exercised dominion over the Tribe's property, thus depriving the Tribe of its possession. The Tribe has requested to try its case to a jury. As was true for the Tribe's original Complaint, the Tribe seeks through its Amended Complaint to secure actual, incidental, and consequential damages in amounts to be proven at trial, together with pre and post-judgment interest, costs and disbursements of the action, attorney fees and witness fees. The Amended Complaint restates the Tribe's claim for punitive damages, but omits the prior reference to a sum certain in favor of requesting punitive damages in an "amount sufficient to punish the defendant and deter others". On September 18, 1992, the Company filed a motion for summary judgment in the hope of securing dismissal of the Tribe's action. On January 19, 1993, a federal court hearing was held before a federal magistrate on the Company's motion for summary judgment. On July 30, 1993, the magistrate issued a Report and Recommendation to the District Judge wherein it was recommended that the Company's motion for summary judgment be granted. The Tribe filed briefing in which it urged the District Court to reject the Magistrate's Report and Recommendation, and the Company responded with a request that the District Court enter summary judgment in accordance with the Magistrate's opinion. On November 30, 1993, the District Court entered a second order of reference, in which the court sent the case back to the Magistrate for the Magistrate to make additional findings with respect to the Tribe's contention that it is entitled to compensation based on physical exclusion from its usual and accustomed fishing places. The Magistrate ordered the parties to brief this issue. That briefing was concluded, and oral argument was held before the Magistrate on February 11, 1994. On March 21, 1994, the Federal District Judge issued an Order Adopting the First Report and Recommendation of the Magistrate granting the Company's motion for summary judgment on all claims except the Tribe's claim for compensation based on exclusion from its usual and accustomed fishing places, which part of the motion the District Judge denied without prejudice. The District Judge will enter a ruling on that portion of the claim after analysis of the briefing the parties have submitted in response to the Magistrate's Second Report and Recommendation. The lawsuit is still in the early stages, and the Company is unable to predict the outcome of this case. However, the Company believes its actions were lawful and intends to vigorously defend this suit. This matter has been previously reported in Form 10-K dated March 16, 1992, March 12, 1993, March 10, 1994, and other reports filed with the Commission. Item 6. Exhibits and Reports on Form 8-K (a) Exhibits: File Exhibit Number As Exhibit *4(a) 2-3413 B-2 - Mortgage and Deed of Trust, dated as of October 1, 1937, between the Company and Bankers Trust Company and R. G. Page, as Trustees. *4(b) - Supplemental Indentures to Mortgage and Deed of Trust: Number Dated 1-MD B-2-a First July 1, 1939 2-5395 7-a-3 Second November 15, 1943 2-7237 7-a-4 Third February 1, 1947 2-7502 7-a-5 Fourth May 1, 1948 2-8398 7-a-6 Fifth November 1, 1949 2-8973 7-a-7 Sixth October 1, 1951 2-12941 2-C-8 Seventh January 1, 1957 2-13688 4-J Eighth July 15, 1957 2-13689 4-K Ninth November 15, 1957 2-14245 4-L Tenth April 1, 1958 2-14366 2-L Eleventh October 15, 1958 2-14935 4-N Twelfth May 15, 1959 2-18976 4-O Thirteenth November 15, 1960 2-18977 4-Q Fourteenth November 1, 1961 2-22988 4-B-16 Fifteenth September 15, 1964 2-24578 4-B-17 Sixteenth April 1, 1966 2-25479 4-B-18 Seventeenth October 1, 1966 2-45260 2(c) Eighteenth September 1, 1972 2-49854 2(c) Nineteenth January 15, 1974 2-51762 2(c)(i) Twentieth August 1, 1974 2-51722 2(c)(ii) Twenty-first October 15, 1974 2-57374 2(c) Twenty-second November 15, 1976 2-62035 2(c) Twenty-third August 15, 1978 33-34222 4(d)(iii) Twenty-fourth September 1, 1979 33-34222 4(d)(iv) Twenty-fifth November 1, 1981 33-34222 4(d)(v) Twenty-sixth May 1, 1982 33-34222 4(d)(vi) Twenty-seventh May 1, 1986 33-00440 4(c)(iv) Twenty-eighth June 30, 1989 33-34222 4(d)(vii) Twenty-ninth January 1, 1990 33-65720 4(d)(iii) Thirthieth January 1, 1991 33-65720 4(d)(iv) Thirty-first August 15, 1991 33-65720 4(d)(v) Thirty-second March 15, 1992 33-65720 4(d)(vi) Thirty-third April 1, 1993 File Exhibit Number As Exhibit 12 - Ratio of Earnings to Fixed Charges. 12(a) - Supplemental Ratio of Earnings to Fixed Charges. 12(b) - Ratio of Earnings to Combined Fixed Charges and Preferred Dividend Requirements. 12(c) - Supplemental Ratio of Earnings to Combined Fixed Charges and Preferred Dividend Requirements. 15 - Letter re: unaudited interim financial information. (b) Reports on Form 8-K. No reports on Form 8-K were filed for the three months ended March 31, 1994. *Previously Filed and Incorporated Herein By Reference. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. IDAHO POWER COMPANY (Registrant) Date May 9, 1994 By: /s/ J LaMont Keen J LaMont Keen Vice President and Chief Financial Officer (Principal Financial Officer) Date May 9, 1994 By: /s/ Harold J Hochhalter Harold J Hochhalter Controller (Principal Accounting Officer) EX-12 2 IDAHO POWER COMPANY CONSOLIDATED FINANCIAL INFORMATION RATIO OF EARNINGS TO FIXED CHARGES
Twelve Months Ended Twelve Months Ended December 31, March 31, (Thousands of Dollars) (Unaudited) 1989 1990 1991 1992 1993 1994 Computation of Ratio of Earnings to Fixed Charges: Consolidated net income $ 84,737 $ 69,241 $ 57,872 $ 59,990 $ 84,464 $ 81,377 Income taxes: Income taxes (includes amounts charged to other income and deductions) 45,336 26,418 24,321 24,601 38,057 36,905 Investment tax credit adjustment (3,295) (3,184) (3,177) (1,439) (1,583) (1,635) Total income taxes 42,041 23,234 21,144 23,162 36,474 35,270 Income before income taxes 126,778 92,475 79,016 82,152 120,938 116,647 Fixed Charges: Interest on long-term debt 49,629 50,119 54,370 53,408 53,706 52,889 Amortization of debt discount, expense and premium - net 238 309 374 392 507 547 Interest on short-term bank loans 2,200 1,027 935 647 220 227 Other interest 3,164 2,259 3,297 1,011 2,023 2,387 Interest portion of rentals 757 902 884 683 1,077 829 Total fixed charges 55,988 54,616 59,860 56,141 57,533 56,879 Earnings - as defined $182,766 $147,091 $138,876 $139,293 $178,471 $173,526 Ratio of earnings to fixed charges 3.26X 2.69X 2.32X 2.48X 3.10X 3.05X
EX-12.(A) 3 IDAHO POWER COMPANY CONSOLIDATED FINANCIAL INFORMATION SUPPLEMENTAL RATIO OF EARNINGS TO FIXED CHARGES
Twelve Months Ended Twelve Months Ended December 31, March 31, (Thousands of Dollars) (Unaudited) 1989 1990 1991 1992 1993 1994 Computation of Ratio of Earnings to Fixed Charges: Consolidated net income $ 84,737 $ 69,241 $ 57,872 $ 59,990 $ 84,464 $ 81,377 Income taxes: Income taxes (includes amounts charged to other income and deductions) 45,336 26,418 24,321 24,601 38,057 36,905 Investment tax credit adjustment (3,295) (3,184) (3,177) (1,439) (1,583) (1,635) Total income taxes 42,041 23,234 21,144 23,162 36,474 35,270 Income before income taxes 126,778 92,475 79,016 83,152 120,938 116,647 Fixed Charges: Interest on long-term debt 49,629 50,119 54,370 53,408 53,706 52,889 Amortization of debt discount, expense and premium - net 238 309 374 392 507 547 Interest on short-term bank loans 2,200 1,027 935 647 220 227 Other interest 3,164 2,259 3,297 1,011 2,023 2,387 Interest portion of rentals 757 902 884 683 1,077 829 Total fixed charges 55,988 54,616 59,860 56,141 57,533 56,879 Suppl increment to fixed charges* 2,321 1,969 1,599 2,487 2,631 2,629 Total supplemental fixed charges 58,309 56,585 61,459 58,628 60,164 59,508 Supplemental earnings - as defined $185,087 $149,060 $140,475 $141,780 $181,102 $176,155 Supplemental ratio of earnings to fixed charges 3.17X 2.63X 2.29X 2.42X 3.01X 2.96X * Explanation of increment: Interest on the quaranty of American Falls Reservoir District Bonds and Milner Dam Inc. Notes which are already included in operating expense.
EX-12.(B) 4 IDAHO POWER COMPANY CONSOLIDATED FINANCIAL INFORMATION RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDEND REQUIREMENTS
Twelve Months Ended Twelve Months Ended December 31, March 31, (Thousands of Dollars) (Unaudited) 1989 1990 1991 1992 1993 1994 Computation of Ratio of Earnings to Fixed Charges: Consolidated net income $ 84,737 $ 69,241 $ 57,872 $ 59,990 $ 84,464 $ 81,377 Income taxes: Income taxes (includes amounts charged to other income and deductions) 45,336 26,418 24,321 24,601 38,057 36,905 Investment tax credit adjustment (3,295) (3,184) (3,177) (1,439) (1,583) (1,635) Total income taxes 42,041 23,234 21,144 23,162 36,474 35,270 Income before income taxes 126,778 92,475 79,016 83,152 120,938 116,647 Fixed Charges: Interest on long-term debt 49,629 50,119 54,370 53,408 53,706 52,889 Amortization of debt discount, expense and premium - net 238 309 374 392 507 547 Interest on short-term bank loans 2,200 1,027 935 647 220 227 Other interest 3,164 2,259 3,297 1,011 2,023 2,387 Interest portion of rentals 757 902 884 683 1,077 829 Total fixed charges 55,988 54,616 59,860 56,141 57,533 56,879 Preferred dividends requirements 6,374 5,685 6,663 7,611 8,547 9,211 Total fixed charges and preferred dividends 62,362 60,301 66,523 63,752 66,080 66,090 Earnings - as defined $182,766 $147,091 $138,876 $139,293 $178,471 $173,526 Ratio of earnings to fixed charges preferred dividends 2.93X 2.44X 2.09X 2.18X 2.70X 2.63X
EX-12.(C) 5 IDAHO POWER COMPANY CONSOLIDATED FINANCIAL INFORMATION SUPPLEMENTAL RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDEND REQUIREMENTS
Twelve Months Ended Twelve Months Ended December 31, March 31, (Thousands of Dollars) (Unaudited) 1989 1990 1991 1992 1993 1994 Computation of Ratio of Earnings to Fixed Charges: Consolidated net income $ 84,737 $ 69,241 $ 57,872 $ 59,990 $ 84,464 $ 81,377 Income taxes: Income taxes (includes amounts charged to other income and deductions) 45,336 26,418 24,321 24,601 38,057 36,905 Investment tax credit adjustment (3,295) (3,184) (3,177) (1,439) (1,583) (1,635) Total income taxes 42,041 23,234 21,144 23,162 36,474 35,270 Income before income taxes 126,778 92,475 79,016 82,152 120,938 116,647 Fixed Charges: Interest on long-term debt 49,629 50,119 54,370 53,408 53,706 52,889 Amortization of debt discount, expense and premium - net 238 309 374 392 507 547 Interest on short-term bank loans 2,200 1,027 935 647 220 227 Other interest 3,164 2,259 3,297 1,011 2,023 2,387 Interest portion of rentals 757 902 884 683 1,077 829 Total fixed charges 55,988 54,616 59,860 56,141 57,533 56,879 Suppl increment to fixed charges* 2,321 1,969 1,599 2,487 2,631 2,629 Supplemental fixed charges 58,309 56,585 61,459 58,628 60,164 59,508 Preferred dividend requirements 6,374 5,685 6,663 7,611 8,547 9,211 Total supplemental fixed charges and preferred dividends 64,683 62,270 68,122 66,239 68,711 68,719 Supplemental earnings - as defined $185,087 $149,060 $140,475 $141,780 $181,102 $176,155 Supplemental ratio of earnings to fixed charges and preferred dividends 2.86X 2.39X 2.06X 2.14X 2.64X 2.56X * Explanation of increment: Interest on the quaranty of American Falls Reservoir District Bonds and Milner Dam Inc. Notes which are already included in operating expense.
EX-15 6 EXHIBIT 15 April 29, 1994 Idaho Power Company Boise, Idaho We have made a review, in accordance with standards established by the American Institute of Certified Public Accountants, of the unaudited interim financial information of Idaho Power Company and subsidiaries for the periods ended March 31, 1994 and 1993, as indicated in our report dated April 29, 1994; because we did not perform an audit, we expressed no opinion on that information. We are aware that our report referred to above, which is included in your Quarterly Report on Form 10-Q for the quarter ending March 31, 1994, is incorporated by reference in Registration Statement Nos. 33-65720 and 33- 51215 on Form S-3; and Post-Effective Amendment No. 1 to Registration Statement No. 2-99567 and Registration Statement No. 33-36947 on Form S-8. We also are aware that the aforementioned report, pursuant to Rule 436(c) under the Securities Act, is not considered a part of the Registration Statement prepared or certified by an accountant or a report prepared or certified by an accountant within the meaning of Sections 7 and 11 of that Act. DELOITTE & TOUCHE Portland, Oregon -----END PRIVACY-ENHANCED MESSAGE-----