-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MP/r5JVpBBCTJUWFLeyrlmdYkRoWRNAcRhbrJ58xz7GmIESmxMgy3UDqxJI0ZKt4 MVM83Nb3bBDerT03RYiCDw== 0000049648-96-000005.txt : 19960228 0000049648-96-000005.hdr.sgml : 19960228 ACCESSION NUMBER: 0000049648-96-000005 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 19960227 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19960227 SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: IDAHO POWER CO CENTRAL INDEX KEY: 0000049648 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 820130980 STATE OF INCORPORATION: ID FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-03198 FILM NUMBER: 96526206 BUSINESS ADDRESS: STREET 1: 1221 W IDAHO ST STREET 2: PO BOX 70 CITY: BOISE STATE: ID ZIP: 83707 BUSINESS PHONE: 2083832200 8-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report February 27, 1996 (Date of earliest event reported) --------------------------- IDAHO POWER COMPANY (Exact name of registrant as specified in charter) Idaho 1-3198 82-0130980 (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification No.) 1221 W Idaho Street Boise, Idaho 83702-5627 (Address of principal executive offices) (Zip Code) Registrant's telephone number, (208) 388-2200 _____________________________________________________ Former name or address, if changed since last report. (This document consists of 28 pages) Idaho Power Company Form 8-K Items 1 through 6 and Item 8 are inapplicable and have been omitted herefrom. Item 7. Financial Statements and Exhibits (a) Financial Statements Independent Auditors' Report. Consolidated Statements of Income for Years Ended December 31, 1995, 1994 and 1993. Consolidated Statements of Retained Earnings for Years Ended December 31, 1995, 1994 and 1993. Consolidated Balance Sheets at December 31, 1995, 1994 and 1993. Consolidated Statements of Capitalization at December 31, 1995, 1994 and 1993. Notes to Consolidated Financial Statements. Schedule II - Consolidated Valuation and Qualifying Accounts. (c) Exhibits 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. 23 - Auditor Consent. 27 - Financial Data Schedule 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 By: /s/ J LaMont Keen J LaMont Keen Vice President and Chief Financial Officer Dated: February 27, 1996 INDEPENDENT AUDITORS' REPORT Board of Directors and Shareowners of Idaho Power Company: We have audited the accompanying consolidated financial statements of Idaho Power Company and its subsidiaries listed in the accompanying index to financial statements and financial statement schedules at Item 8. These financial statements and financial statement schedules are the responsibility of the Company's management. Our responsibility is to express an opinion on the financial statements and financial statement schedules based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such consolidated financial statements present fairly, in all material respects, the consolidated financial position of Idaho Power Company and subsidiaries at December 31, 1995, 1994, and 1993, and the results of their operations and their cash flows for the years then ended, in conformity with generally accepted accounting principles. Also, in our opinion, such financial statement schedules, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly in all material respects the information set forth therein. Deloitte & Touche LLP Portland, Oregon January 31, 1996 IDAHO POWER COMPANY CONSOLIDATED STATEMENTS OF INCOME Year Ended December 31, 1995 1994 1993 (Thousands of Dollars) REVENUES (Note 1) $545,621 $543,658 $540,402 EXPENSES: Operation: Purchased power (Notes 8 and 10) 54,586 60,216 45,361 Fuel expense (Note 10) 54,691 94,888 87,855 Power cost adjustment (Note 1) 7,292 (12,076) (1,551) Other 126,714 123,328 122,803 Maintenance 35,953 43,490 43,136 Depreciation (Note 1) 67,415 60,202 58,724 Taxes other than income taxes 22,979 23,945 22,129 Total expenses 369,630 393,993 378,457 INCOME FROM OPERATIONS 175,991 149,665 161,945 OTHER INCOME: Allowance for equity funds used during construction (Note 1) (16) 1,680 3,060 Other - Net 14,372 10,480 9,924 Total other income 14,356 12,160 12,984 INTEREST CHARGES: Interest on long-term debt 51,146 51,172 53,706 Other interest (Notes 1 and 7) 5,309 3,261 2,750 Total interest charges 56,456 54,433 56,456 Allowance for borrowed funds used during construction (Note 1) (1,442) (1,781) (2,465) Net interest charges 55,014 52,652 53,991 INCOME BEFORE INCOME TAXES 135,333 109,173 120,938 INCOME TAXES (Notes 1 and 2) 48,412 34,243 36,474 NET INCOME 86,921 74,930 84,464 Dividends on preferred stock (Note 4) 7,991 7,398 6,009 EARNINGS ON COMMON STOCK $78,930 $67,532 $78,455 AVERAGE COMMON SHARES OUTSTANDING (000) 37,612 37,499 36,675 EARNINGS PER SHARE OF COMMON STOCK (Note 3) $ 2.10 $ 1.80 $ 2.14 The accompanying notes are an integral part of these statements. IDAHO POWER COMPANY CONSOLIDATED STATEMENTS OF RETAINED EARNINGS Year Ended December 31, 1995 1994 1993 (Thousands of Dollars) RETAINED EARNINGS Beginning of year $220,838 $222,900 $212,404 NET INCOME 86,921 74,930 84,464 Total 307,759 297,830 296,868 DIVIDENDS: Preferred stock (Note 4) 7,991 7,398 6,009 Common stock (per share: 1995-1993-$1.86) (Note 3) 69,941 69,594 67,959 Total dividends 77,932 76,992 73,968 RETAINED EARNINGS End of year $229,827 $220,838 $222,900 The accompanying notes are an integral part of these statements. IDAHO POWER COMPANY CONSOLIDATED BALANCE SHEETS ASSETS December 31, 1995 1994 1993 (Thousands of Dollars) ELECTRIC PLANT (Notes 1, 5 and 10): In service (at original cost) $2,481,830 $2,383,898 $2,249,723 Accumulated provision for depreciation (830,615) (775,033) (728,979) In service - Net 1,651,215 1,608,865 1,520,744 Construction work in progress 20,564 46,628 92,682 Held for future use 1,106 1,150 2,958 Electric plant - Net 1,672,885 1,656,643 1,616,384 INVESTMENTS AND OTHER PROPERTY 16,826 18,034 20,772 CURRENT ASSETS: Cash and cash equivalents (Note 1) 8,468 7,748 8,228 Receivables: Customer 33,357 31,889 29,741 Allowance for uncollectible accounts (1,397) (1,377) (1,377) Notes 5,134 4,962 5,616 Employee notes receivable 4,648 5,444 5,909 Other 10,770 4,316 1,858 Accrued unbilled revenues (Note 1) 25,025 29,115 25,583 Materials and supplies (at average cost) 25,937 24,141 23,372 Fuel stock (at average cost) 13,063 11,310 11,553 Prepayments (Note 9) 20,778 21,398 20,975 Regulatory assets associated with income taxes (Note 1) 5,777 5,674 4,914 Total current assets 151,561 144,620 136,372 DEFERRED DEBITS: American Falls and Milner water rights 32,440 32,605 32,755 Company-owned life insurance (Note 9) 56,066 49,510 45,294 Regulatory assets associated with income taxes (Note 1) 200,379 179,311 171,569 Regulatory assets - other (Note 1) 68,348 67,713 35,036 Other 43,248 43,380 39,235 Total deferred debits 400,481 372,519 323,889 TOTAL $2,241,753 $2,191,816 $2,097,417 The accompanying notes are an integral part of these statements. IDAHO POWER COMPANY CONSOLIDATED BALANCE SHEETS CAPITALIZATION AND LIABILITIES December 31, 1995 1994 1993 (Thousands of Dollars) CAPITALIZATION (See Page 9): Common stock equity (Note 3): Common stock - $2.50 par value (shares authorized 50,000,000; shares outstanding 1995 - 37,612,351, 1994 - 37,612,351 and 1993 - 37,085,055 $ 94,031 $ 94,031 $ 92,713 Premium on capital stock 363,044 363,063 350,882 Capital stock expense (4,127) (4,132) (4,128) Retained earnings 229,827 220,838 222,900 Total common stock equity 682,775 673,800 662,367 Preferred stock (Note 4) 132,181 132,456 132,751 Long-term debt (Note 5) 672,618 693,206 693,780 Total capitalization 1,487,574 1,499,462 1,488,898 CURRENT LIABILITIES: Long-term debt due within one year 20,517 517 466 Notes payable (Note 7) 53,020 55,000 4,000 Accounts payable 40,483 32,063 31,912 Taxes accrued 15,409 16,394 15,452 Interest accrued 14,785 14,755 14,920 Accumulated deferred income taxes (Notes 1 & 2) 5,777 5,674 4,914 Other 12,866 12,574 13,731 Total current liabilities 162,858 136,977 85,395 DEFERRED CREDITS: Regulatory liabilities associated with accumulated deferred investment tax credits (Notes 1 and 2) 70,507 71,593 72,013 Accumulated deferred income taxes (Notes 1 and 2) 408,394 375,252 353,366 Regulatory liabilities associated with income taxes (Note 1) 34,554 35,090 34,968 Regulatory liabilities - other (Note 1) 789 626 4,235 Other (Note 9) 77,076 72,816 58,542 Total deferred credits 591,321 555,377 523,124 COMMITMENTS AND CONTINGENT LIABILITIES (Note 8) TOTAL $2,241,753 $2,191,816 $2,097,417 The accompanying notes are an integral part of these statements. IDAHO POWER COMPANY CONSOLIDATED STATEMENTS OF CAPITALIZATION December 31, 1995 % 1994 % 1993 % (Thousands of Dollars) COMMON STOCK EQUITY (Note 3): Common stock $ 94,031 $ 94,031 $ 92,713 Premium on capital stock 363,044 363,063 350,882 Capital stock expense (4,127) (4,132) (4,128) Retained earnings 229,827 220,838 222,900 Total common stock equity 682,775 46 673,800 45 662,367 44 PREFERRED STOCK (Note 4): 4% preferred stock 17,181 17,456 17,751 7.68% Series, serial preferred stock 15,000 15,000 15,000 8.375% Series, serial preferred stock 25,000 25,000 25,000 Auction rate preferred stock 50,000 50,000 50,000 7.07% Series, serial preferred stock 25,000 25,000 25,000 Total preferred stock 132,181 9 132,456 9 132,751 9 LONG-TERM DEBT (Note 5): First mortgage bonds: 5 1/4 % Series due 1996 20,000* 20,000 20,000 5.33 % Series due 1998 30,000 30,000 30,000 8.65 % Series due 2000 80,000 80,000 80,000 6.40 % Series due 2003 80,000 80,000 80,000 8 % Series due 2004 50,000 50,000 50,000 9.50 % Series due 2021 75,000 75,000 75,000 7.50 % Series due 2023 80,000 80,000 80,000 8 3/4 % Series due 2027 50,000 50,000 50,000 9.52 % Series due 2031 25,000 25,000 25,000 Total first mortgage bonds 490,000 490,000 490,000 *Amount due within one year (20,000) - - Net first mortgage bonds 470,000 490,000 490,000 Pollution control revenue bonds: 5.90 % Series due 2003 24,200* 24,650* 25,050* 6.0 % Series due 2007 24,000 24,000 24,000 7 1/4 % Series due 2008 4,360 4,360 4,360 7 5/8 % Series 1983 - 1984 due 2013 - 2014 68,100 68,100 68,100 8.30 % Series 1984 due 2014 49,800 49,800 49,800 Total pollution control revenue bonds 170,460 170,910 171,310 *Amount due within one year (450) (450) (400) Net pollution control revenue bonds 170,010 170,460 170,910 REA notes 1,700 1,768 1,834 Amount due within one year (67) (67) (66) Net REA notes 1,633 1,701 1,768 American Falls bond guarantee 20,740 20,905 21,055 Milner Dam note guarantee 11,700 11,700 11,700 Unamortized premium/ discount-Net (Note 1) (1,466) (1,560) (1,653) Total long-term debt 672,618 45 693,206 46 693,780 47 TOTAL CAPITALIZATION $1,487,574 100 $1,499,462 100 $1,488,898 100 The accompanying notes are an integral part of these statements. IDAHO POWER COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended December 31, 1995 1994 1993 (Thousands of Dollars) OPERATING ACTIVITIES: Cash received from operations: Retail revenues $468,821 $457,202 $434,625 Wholesale revenues 59,260 62,110 84,726 Other revenues 22,825 23,711 23,411 Fuel paid (61,741) (94,530) (83,885) Purchased power paid (52,526) (62,592) (50,246) Other operation & maintenance paid (154,209) (171,774) (162,014) Interest pd. (incl. long and short-term debt only) (54,303) (52,376) (56,348) Income taxes paid (40,402) (16,518) (32,512) Taxes other than income taxes paid (22,939) (21,698) (22,165) Other operating cash receipts and payments-Net 3,644 2,122 8,213 Net cash provided by operating activities 168,430 125,657 143,805 FINANCING ACTIVITIES: First mortgage bonds issued - - 188,136 PC bond fund requisitions/other long-term debt - - 5,594 Common stock issued - 13,402 26,781 Preferred stock issued - - 24,781 Short-term borrowings - Net (2,000) 51,000 (2,140) Long-term debt retirement (519) (466) (191,878) Preferred stock retirement (151) (166) (65) Dividends on preferred stock (7,888) (7,565) (5,914) Dividends on common stock (69,967) (69,594) (67,959) Other sources (781) - - Net cash - financing activities (81,306) (13,389) (22,664) INVESTING ACTIVITIES: Additions to utility plant (83,965) (110,523) (122,949) Conservation (5,688) (6,830) (6,687) Other 3,249 4,605 11,757 Net cash - investing activities (86,404) (112,748) (117,879) Change in cash and cash equivalents 720 (480) 3,262 Cash and cash equivalents beginning of year 7,748 8,228 4,966 Cash and cash equivalents end of year $ 8,468 $ 7,748 $ 8,228 RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Net income $ 86,921 $ 74,930 $ 84,464 Adjustments to reconcile net income to net cash: Depreciation 67,415 60,202 58,724 Deferred income taxes 11,539 14,265 5,997 Investment tax credit - Net (1,086) (1,064) (1,583) Allowance for funds used during construction (1,425) (3,461) (5,525) Postretirement benefits funding (excl pensions) (2,857) (5,182) (7,481) Changes in operating assets and liabilities: Accounts receivable 5,285 (635) 2,360 Fuel inventory (7,050) 358 3,970 Accounts payable 2,061 (2,376) (4,885) Taxes payable (2,519) 7,296 (1,141) Interest payable 2,100 1,656 (1,010) Other - Net 8,046 (20,332) 9,915 Net cash provided by operating activities $168,430 $125,657 $ 143,805 The accompanying notes are an integral part of these statements. IDAHO POWER COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: PRINCIPLES OF CONSOLIDATION - The consolidated financial statements include the accounts of the Company and its wholly- owned subsidiaries, Idaho Energy Resources Co (IERCo), Ida-West Energy Company (Ida-West), IDACORP, Inc., Idaho Utility Products Company (IUPCo), and Stellar Dynamics. All significant intercompany transactions and balances have been eliminated in consolidation. SYSTEM OF ACCOUNTS - The Company is an electric utility and its accounting records conform to the Uniform System of Accounts prescribed by the Federal Energy Regulatory Commission (FERC) and adopted by the public utility commissions of Idaho, Oregon, Nevada and Wyoming. ELECTRIC PLANT - The cost of additions to electric plant in service represents the original cost of contracted services, direct labor and material, allowance for funds used during construction and indirect charges for engineering, supervision and similar overhead items. Maintenance and repairs of property and replacements and renewals of items determined to be less than units of property are charged to operations. For property replaced or renewed the original cost plus removal cost less salvage is charged to accumulated provision for depreciation while the cost of related replacements and renewals is added to electric plant. 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 ratemaking 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 FERC, the Company's weighted average monthly AFDC rates for 1995, 1994 and 1993 were 6.1 percent, 8.2 percent and 9.6 percent, respectively. 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. POWER COST ADJUSTMENT- The Company has in place, in its Idaho jurisdiction, a Power Cost Adjustment (PCA) mechanism which allows Idaho's retail customer rates to be adjusted annually to reflect the Idaho share of forecasted net power supply costs. Deviations from forecasted costs are deferred with interest and then adjusted (trued-up) in the subsequent year. DEPRECIATION - All electric plant is depreciated using the straight-line method. Annual depreciation provisions as a percent of average depreciable electric plant in service approximated 2.90 percent in 1995, 2.93 percent in 1994 and 2.92 percent in 1993 and are considered adequate to amortize the original cost over the estimated service lives of the properties. INCOME TAXES - The Company follows the liability method of completing deferred taxes on all temporary differences between book and tax basis of assets and liabilities and adjust deferred tax liabilities and assets for enacted changes in tax laws or rates. Consistent with orders and directives of the Idaho Public Utilities Commission (IPUC), the regulatory authority having principal jurisdiction, deferred income taxes (commonly referred to as normalized accounting) are provided for the difference between income tax depreciation and straight-line depreciation on coal-fired generation facilities and properties acquired after 1980. On other facilities, deferred income taxes are provided for the difference between accelerated income tax depreciation and straight-line depreciation using tax guideline lives on assets acquired prior to 1981. Deferred income taxes are not provided for those income tax timing differences where the prescribed regulatory accounting methods do not provide for current recovery in rates. Regulated enterprises are required to recognize such adjustments as regulatory assets or liabilities if it is probable that such amounts will be recovered from or returned to customers in future rates (see Note 2). The state of Idaho allows a three percent investment tax credit (ITC) upon certain plant additions. ITC earned on regulated assets are deferred and amortized to income over the estimated service lives of the related properties and credits earned on non- regulated assets or investments are recognized in the year earned. In 1995, the Company received an accounting order from the IPUC approving acceleration of amortization of up to $30.0 million of regulatory liabilities associated with deferred ITC to non- operating income subject to Internal Revenue Service (IRS) and the Idaho State Tax Commission (STC) approvals. The IRS application for approval has been filed and the STC has approved the application. Acceleration of ITC amortization is to be utilized until the actual return on year-end common equity is 11.5 percent. No accelerated ITC was recognized in 1995. CASH AND CASH EQUIVALENTS - 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. REGULATION OF UTILITY OPERATIONS - The Company follows Statement of Accounting Standards (SFAS) No. 71, "Accounting for the Effects of Certain Types of Regulation", and its financial statements reflect the effects of the different ratemaking principles followed by the various jurisdictions regulating the Company. Pursuant to SFAS No. 71 the Company capitalizes, as deferred regulatory assets, incurred costs which are expected to be recovered in future utility rates. The Company also records as deferred regulatory liabilities the current recovery in utility rates of costs which are expected to be paid in the future. The following is a breakdown of regulatory assets and liabilities for the years 1995, 1994 and 1993: 1995 1994 1993 Assets Liab. Assets Liab. Assets Liab. (Millions of Dollars) Income taxes $206.2 $ 34.6 $185.0 $ 35.1 $176.5 $ 35.0 Conservation 36.3 29.7 21.2 Employee benefits 8.3 9.5 7.4 Other 23.7 0.7 28.5 0.6 6.4 4.2 Accumulated deferred investment tax credits 70.5 71.6 72.0 Total $274.5 $105.8 $252.7 $107.3 $211.5 $111.2 The regulatory environment is becoming more complex resulting from the expanding effects of competition. In the event that recovery of cost through rates becomes unlikely or uncertain, this may force the Company away from the cost of service ratemaking and SFAS No. 71 would no longer apply. If the Company were to discontinue application of SFAS No. 71 for some or all of its operations then these items may represent stranded investments. Certain regulators are currently reviewing ways to allow the electric utilities to recover these investments in the event the customers are allowed to choose their energy supplier. However, if the Company is not allowed recovery of these investments it would be required to write off the applicable portion of regulatory assets and the financial effects could be significant. At December 31, 1995, the Company had $17.6 million of regulatory assets that were not earning a return on investment excluding the $206.2 million that relates to income taxes. OTHER ACCOUNTING POLICIES - Debt discount, expense and premium are being amortized over the terms of the respective debt issues. RECLASSIFICATIONS - Certain items previously reported for years prior to 1995 have been reclassified to conform with the current year's presentation. Net income was not affected by these reclassifications. 2. INCOME TAXES: 1995 1994 1993 (Thousands of Dollars) A reconciliation between the statutory federal income tax rate and the effective rate is as follows: Computed income taxes based on statutory federal income tax rate $ 47,367 $ 38,210 $ 42,328 Change in taxes resulting from: AFUDC (504) (1,211) (1,798) Investment tax credits (2,837) (3,351) (2,898) Repair allowance (3,150) (1,575) (2,975) Elimination of amounts provided in prior years (1,963) (2,607) (4,686) Current state income taxes 3,275 1,496 2,693 Depreciation 5,493 2,812 4,116 Other 731 469 (306) Total provision for federal and state income taxes $48,412 $34,243 $ 36,474 Effective tax rate 35.8% 31.4% 30.2% The provision for income taxes consists of the following: Income taxes currently payable: Federal $33,456 $19,617 $27,892 State 4,503 1,425 4,168 Total 37,959 21,042 32,060 Income taxes deferred - Net of amortization: Federal 10,904 12,595 5,928 State 635 1,670 69 Total 11,539 14,265 5,997 Investment and other tax credits: Deferred 1,751 1,643 1,315 Restored (2,837) (2,707) (2,898) Total (1,086) (1,064) (1,583) Total provision for income taxes $ 48,412 $ 34,243 $ 36,474 The tax effects of significant items comprising the Company's net deferred tax liability are as follows: Deferred tax Liabilities: Property, plant and equipment $237,655 $225,444 $217,343 Regulatory asset 206,156 184,986 176,483 Investment tax credit 70,507 71,593 72,013 Conservation programs 11,746 4,704 2,739 Other 18,489 17,811 11,384 Total 544,553 504,538 479,962 Deferred tax assets: Regulatory liability 34,554 35,090 34,968 Advances for construction 14,823 10,542 8,103 Other 10,498 6,387 6,598 Total 59,875 52,019 49,669 Net deferred tax liabilities $484,678 $452,519 $430,293 The Company has settled Federal and Idaho tax liabilities on all open years through the 1992 tax year except for amounts related to a partnership which, in management's opinion, have been adequately accrued for. 3. COMMON STOCK: Changes in shares of the common stock of the Company for 1995, 1994 and 1993 were as follows: Common Stock Premium $2.50 Par on Capital Shares Value Stock (Thousands of Dollars) Balance at December 31, 1992 36,186,527 $ 90,466 $326,338 Gain on reacquired 4% preferred stock (Note 4) - - 50 Stock purchase plans 898,528 2,247 24,494 Balance at December 31, 1993 37,085,055 92,713 350,882 Gain on reacquired 4% preferred stock (Note 4) - - 126 Stock purchase plans 527,296 1,318 12,055 Balance at December 31, 1994 37,612,351 94,031 363,063 Gain on reacquired 4% preferred stock (Note 4) - - 117 Restricted Stock Plan (Note 9) - - (136) Balance at December 31, 1995 37,612,351 $ 94,031 $363,044 During the period of January 1993 through May 1994, the Company issued original issue shares of common stock for its Dividend Reinvestment and Stock Purchase Plan and the Employee Savings Plan. During 1993 and 1994 common shares totaling 898,528 and 527,296 respectively, were issued to these plans. As of December 31, 1995, the Company had 2,791,321 of its authorized but unissued shares of common stock reserved for future issuance under its Dividend Reinvestment and Stock Purchase Plan and Employee Savings Plan. On January 11, 1990, the Board of Directors adopted a Shareowner Rights Plan (Plan). Under the Plan, the Company declared a distribution of one Preferred Stock Right (Right) for each of the Company's outstanding Common shares held on January 29, 1990 or issued thereafter. The Rights are currently not exercisable and will be exercisable only if a person or group (Acquiring Person) either acquires ownership of 20 percent or more of the Company's Voting Stock or commences a tender offer that would result in ownership of 20 percent or more. The Company may redeem the Rights at a price of $0.01 per Right anytime prior to acquisition by an Acquiring Person of a 20 percent position. Following the acquisition of a 20 percent position, each Right will entitle its holder, subject to regulatory approval, to purchase for $85 that number of shares of Common Stock or Preferred Stock having a market value of $170. If after the Rights become exercisable, the Company is acquired in a merger or other business combination, 50 percent or more of its consolidated assets or earnings power are sold or the Acquiring Person engages in certain acts of self-dealing, each Right entitles the holder to purchase for $85, shares of the acquiring company's Common Stock having a market value of $170. Any Rights that are or were held by an Acquiring Person become void if either of these events occurs. The Rights expire on January 11, 2000. 4. PREFERRED STOCK: The number of shares of preferred stock outstanding at December 31, 1995, 1994 and 1993 were as follows: Shares Outstanding at December 31, Call Price 1995 1994 1993 Per Share Preferred stock: Cumulative, $100 par value: 4% preferred stock (authorized 215,000 shares) 171,813 174,556 177,506 $104.00 Serial preferred stock, 7.68% Series (authorized 150,000 shares) 150,000 150,000 150,000 $102.97 Serial preferred stock, cumulative, without par value; total of 3,000,000 shares authorized: 8.375% Series, $100 stated value, (authorized 250,000 shares)(a) 250,000 250,000 250,000 $105.58 to $100.37 7.07% Series, $100 stated value, (authorized 250,000 shares)(b) 250,000 250,000 250,000 $103.535 to $100.354 Auction rate preferred stock, $100,000 stated value, (authorized 500 shares)(c) 500 500 500 $100,000.00 Total 822,313 825,056 828,006 (a) Not redeemable prior to October 1, 1996. (b) Not redeemable prior to July 1, 2003. (c) Dividend rate at December 31, 1995 was 4.49% and ranged between 4.36% and 4.71% during the year. During 1995, 1994 and 1993 the Company reacquired and retired 2,743; 2,950 and 1,229 shares of 4% preferred stock resulting in a net addition to premium on capital stock of $117,346, $126,066 and $50,151 respectively. As of December 31, 1995 the overall effective cost of all outstanding preferred stock was 6.28 percent. 5. LONG-TERM DEBT: The amount of first mortgage bonds issuable by the Company is limited to a maximum of $900,000,000 and by property, earnings and other provisions of the mortgage and supplemental indentures thereto. Substantially all of the electric utility plant is subject to the lien of the indenture. Pollution Control Revenue Bonds, Series 1984, due December 1, 2014, are secured by First Mortgage Bonds, Pollution Control Series A, which were issued by the Company and are held by a Trustee for the benefit of the bondholders. First mortgage bonds maturing during the five-year period ending 2000 are $20,000,000 in 1996, $30,000,000 in 1998 and $80,000,000 in 2000. Sinking fund requirements for the first mortgage bonds outstanding at December 31, 1995 are $5,398,000 per year. These requirements may be met by the deposit of cash, deposit of bonds, or by certification of property additions at the rate of 167% of requirements. The Company's practice is to certify additional property to meet the sinking fund requirements. In September 1993, 1994, and 1995 $400,000, $400,000 and $450,000 respectively, of the 5.90% Series, Pollution Control Revenue Bonds, were retired pursuant to sinking fund requirements for those years. Sinking fund requirements during the five-year period ending 2000 for pollution control bonds outstanding at December 31, 1995 are $450,000 in 1996 and $500,000 in 1997 through 2000. At December 31, 1993, 1994 and 1995, the overall effective cost of all outstanding first mortgage bonds and pollution control revenue bonds for all three years was 8.02 percent. 6. FAIR VALUE OF FINANCIAL INSTRUMENTS: The estimated fair value of the Company's financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Cash and cash equivalents, customer and other receivables, notes payable, accounts payable, interest accrued, and taxes accrued are reported at their carrying value as these are a reasonable estimate of their fair value. The total estimated fair value of long-term debt was approximately $762,575,000 for 1993, $682,647,000 for 1994 and $731,168,000 for 1995. The estimated fair values for long-term debt are based upon quoted market prices of the same or similar issues. 7. NOTES PAYABLE: At January 1, 1996, the Company had regulatory authority to incur up to $150,000,000 of short-term indebtedness. Under this authority, total lines of credit maintained with various banks amounted to $85,000,000. Under annual borrowing arrangements with these banks, the Company is required to pay a fee of 8/100 of 1 percent on the available and committed lines of credit. Commercial paper may be issued in an amount not to exceed 25 percent of revenues for the latest twelve-month period subject to the $150,000,000 maximum described above and are supported by bank lines of credit of an equal amount. Balances and interest rates of short-term borrowings were as follows: Year Ended December 31, 1995 1994 1993 (Thousands of Dollars) Balance at end of year $53,020 $55,000 $4,000 Effective annual interest rate at end of year 6.0% 6.1% 6.9%(a) (a) Effective rate has been inflated by the commitment fees being larger than the interest paid for the year. If the commitment fees were excluded the effective annual interest rate at end of the year would have been 3.6%. 8. 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 $2,600,000 at December 31, 1995. The commitments are generally revocable by the Company subject to reimbursement of manufacturers' expenditures incurred and/or other termination charges. The Company is currently purchasing energy from 65 on-line cogeneration and small power production facilities with contracts ranging from 1 to 32 years. Under these contracts the Company could be required to purchase up to 782,000 (MWH) annually. During the fiscal year ended December 31, 1995, the Company purchased 654,000 (MWH) at a cost of $38.0 million. 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 operation or cash flow. 9. BENEFIT PLANS: Incentive Plan - The Company implemented two annual incentive plans effective January 1, 1995. The Executive Annual Incentive Plan and the Employee Incentive Plan tie a portion of each employee's compensation to achieving annual operational and financial goals. The plans share common goals designed to promote safety, control capital expenditures, control operation and maintenance expenses and increase annual earnings per share. At December 31, 1995 the Company had recorded $2,898,785 of incentive for the Plans. Restricted Stock Plan - The 1994 Restricted Stock Plan ("Plan") approved by shareholders at the May 1994 Annual Meeting was implemented January 1, 1995 as an equity-based long-term incentive plan. The performance-based grant approach and administrative guidelines for the Plan were developed by the Compensation Committee of the Board of Directors ("Committee") during 1994. At December 31, 1995, there were 370,000 shares reserved for the Plan. The first grant under the Plan was made to all officers during January 1995. For the first grant, the Committee has selected a three-year restricted period beginning January 1, 1995, through December 31, 1997, with a single financial performance goal of Cumulative Earnings Per Share ("CEPS"). Final award amounts will depend on the attainment by the Company of the CEPS performance goal established by the Committee and may be prorated in the event of death, disability or retirement of an officer based on the number of whole months of service the officer completes during the Restricted Period. Upon the officer's termination of employment during the Restricted Period for any other reason, all such shares will be forfeited by the officer to the Trustee. During 1995, the Company purchased and granted 9,480 shares of the Company's common stock for this Plan. Of this amount 360 shares were forfeited in 1995. Restricted stock awards are compensatory awards and the Company accrued compensation expense of $91,200 for 1995 (which was charged to operations) based upon the market value of the earned shares. Pension Plan - The Company maintains a trusteed noncontributory defined benefit pension plan for all employees who work 1,000 hours or more during a calendar year. The benefits under the plan are based on years of service and the employee's final average earnings. The Company's policy is to fund with an independent corporate trustee at least the minimum required under the Employee Retirement Income Security Act of 1974 but not more than the maximum amount deductible for income tax purposes. The Company funded $5.9 million in 1995, $5.5 million in 1994 and $5.0 million in 1993. The plan's assets held by the trustee consist primarily of listed stocks (both U.S. and foreign), fixed income securities and investment grade real estate. Deferred Compensation Plan - The Company has a nonqualified, deferred compensation plan for certain senior management employees and directors that provides for supplemental retirement and death benefit payments to the participant and his or her family. The plan is being financed by life insurance policies, of which the Company is the beneficiary, with premiums being paid by the Company. These policies have accumulated cash values of $53.0, $47.1 and $42.4 million at December 31, 1995, 1994 and 1993, respectively, which do not qualify as plan assets in the actuarial computation of the funded status. Based upon SFAS No. 87, the Company has recorded a net liability of $21.5 million as of December 31, 1995. The following tables set forth the amounts recognized in the Company's financial statements and the funded status of both plans in accordance with accounting standard SFAS No. 87, "Employers' Accounting for Pensions." Plan Costs for the Year: 1995 1994 1993 (Thousands of Dollars) Pension plan: Service cost $ 5,167 $ 6,049 $ 4,496 Interest cost 12,998 12,263 11,688 Actual return on plan assets (45,990) 312 (23,322) Deferred gain (loss) on plan assets 31,489 (15,584) 9,848 Net cost $ 3,664 $ 3,040 $ 2,710 Approximate percentage included in operating expenses 65% 67% 66% Net deferred compensation plan costs charged to other income (including life insurance and SFAS No. 87 liability accrual)(a) $ 37 $ 508 $ 1,372 (a) These charges to the Income Statement have been reduced by gains from the Company-Owned Life Insurance of $2,320; $2,724, and $1,638, for 1995, 1994 and 1993, respectively. Funded status and significant assumptions as of December 31: Deferred Pension Plan Compensation Plan 1995 1994 1993 1995 1994 1993 (Thousands of Dollars) Actuarial present value of benefit obligations: Vested benefit obligation $145,334 $128,162 $134,292 $ 21,530 $19,148 $ 24,024 Accumulated benefit obligation $150,688 $132,766 $139,270 $ 21,530 $19,148 $ 24,027 Projected benefit obligation $193,133 $167,103 $179,895 $ 22,111 $ 19,681 $ 30,114 Plan assets at fair value 204,760 165,839 169,920 - - - Plan assets in excess of (or less than) projected benefit obligation 11,627 (1,264) (9,975) (22,111) (19,681) (30,114) Unrecognized net (gain) loss from past experience different from that assumed (8,341) 6,040 17,295 4,389 2,173 7,295 Unrecognized prior service cost 5,941 6,365 1,460 (3,097) (3,516) 2,546 Unrecognized net (asset) obligation existing at date of initial adoption (19.5 year straight -line amortization) (2,493) (2,756) (3,019) 5,827 6,440 7,053 Minimum liability adjustment - - - (6,538) (4,564) (10,807) Net asset (liability) included in the balance sheet $ 6,734 $ 8,385 $ 5,761 $(21,530) $(19,148) $(24,027) Discount rate to compute projected benefit obligation 7.25% 8.0% 7.0% 7.25% 8.0% 7.0% Rate for future compensation increases 4.5 4.5 4.5 4.5 4.5 4.5 Expected long-term rate of return on plan assets 9.0 9.0 9.0 - - - Supplemental Employee Retirement Plan (SERP) - The Company has a nonqualified SERP that provides benefits in excess of Internal Revenue Service limits (Section 401 (a) (17) of the Internal Revenue Code) for highly paid individuals. The projected benefit obligation of this plan was $1,581,000, $857,000 and $525,000 at December 31, 1995, 1994 and 1993, respectively, with accrued pension costs of $682,000, $396,000 and $226,000. The Company's net periodic pension cost of this plan was $184,000, $125,000 and $36,000 for the same periods. Savings Plan - The Company has an Employee Savings Plan whereby, for each $1 of employee contribution up to 6 percent of their base salary the Company will match 100 percent of the first 2 percent employee contribution and 50 percent of the next 4 percent employee contribution, all such amounts to be invested by a trustee to any or all of seven investment options. The Company's contribution amounted to $2,426,840 in 1995, $2,410,200 in 1994 and $2,283,200 in 1993. Postretirement Benefits - The Company maintains a defined benefit postretirement plan (consisting of health care and life insurance) that covers all employees who were enrolled in the active group plan at the time of retirement, their spouses and qualifying dependents. The plan provides for payment of hospital services, physician services, prescription drugs, dental services and various other health services, some of which have annual or lifetime limits, after subtracting payments by Medicare or other providers and after a stated deductible and co-payments have been met. Participants become eligible for the benefits if they retire from the Company after reaching age 55 with 15 years of service or after 30 years of service. The plan is contributory with retiree contributions adjusted annually. For those retirees that were age 65 or older at December 31, 1992 the plan is noncontributory. The Company also provides life insurance of one times salary for pre-65 retirees and $20,000 for post-65 retirees with the retirees paying a portion of the cost. The following tables set forth the amounts to be recognized in the Company's financial statements for year-end 1995, 1994 and 1993 and the funded status of the plan in accordance with accounting standard SFAS No. 106 as of December 31: 1995 1994 1993 Postretirement Benefit Cost: (Thousands of Dollars) Service Cost $ 763 $ 855 $ 750 Interest Cost 3,571 3,334 3,610 Actual return on plan assets (1,116) (1,114) (860) Amortization of transition obligation (20 year amortization) 2,040 2,040 2,040 Net amortization and deferral - - - Regulatory assets 506 (1,907) (3,548) Voluntary severance program 64 - - Net cost $ 5,828 $ 3,208 $ 1,992 1995 1994 1993 Funded Status: (Thousands of Dollars) Accumulated postretirement benefit obligation (APBO) $(48,928 $(45,001) $(48,290) Plan assets at fair value 15,920 12,116 11,840 APBO in excess of plan assets (33,008) (32,885) (36,450) Unrecognized gain/losses 378 773 4,670 Unrecognized transition obligation 34,680 36,720 38,760 Prepaid postretirement benefit cost $ 2,050 $ 4,608 $ 6,980 Discount rate 7.50% 8.25% 7.25% Medical and dental inflation rate 6.75 7.25 6.75 Long-term plan assets expected return 9.0 9.0 9.0 A one percent change in the medical inflation rate would change the APBO by 7.2 percent and the postretirement expense for 1995 by 8.6 percent. The Company has a retiree medical benefits funding program which consists of life insurance policies on active employees of which the Company is the beneficiary, and a qualified Voluntary Employees Beneficiary Association (VEBA) Trust. The net charge to other income for the life insurance policies was $1,754,300 in 1995, $776,400 in 1994 and $632,500 in 1993. The funding to the VEBA was $916,200 in 1995, $743,600 in 1994 and $2,692,000 in 1993 and recorded as a prepayment. The VEBA trust represents plan assets which are invested in variable life insurance policies, Trust Owned Life Insurance (TOLI), on active employees. Inside buildup in the TOLI policies is tax deferred and tax free if the policy proceeds are paid to the Trust as death benefits. The investment return assumption reflects an expectation that investment income in the VEBA will be substantially tax free. Postemployment Benefits - The Company provides certain benefits to former or inactive employees, their beneficiaries, and covered dependents after employment but before retirement. The Company accrues for such postemployment benefits. These benefits include salary continuation and related health care and life insurance for both long and short-term disability plans, workmen's compensation and health care for surviving spouse and dependent plan. The Company recognizes a deferred asset which represents future revenue expected to be realized at the time the postemployment benefits are included in the Company's rates. The Company has recorded a liability of $3.7 million and a regulatory asset of $3.4 million which represents the costs associated with postemployment benefits at December 31, 1995. The Company received IPUC Order No. 25880 authorizing the amortization of the regulatory asset over a 10-year period. 10.ELECTRIC PLANT IN SERVICE AND JOINTLY-OWNED PROJECTS: The following table sets out the major classifications of the Company's electric plant in service and accumulated provision for depreciation for the years 1995, 1994, and 1993. Electric Plant in Service: 1995 1994 1993 (Thousands of Dollars) Production $1,350,239 $1,303,572 $1,229,237 Transmission 330,812 308,055 298,201 Distribution 648,549 625,149 582,604 General and other 152,230 147,122 139,681 Total in service 2,481,830 2,383,898 2,249,723 Accumulated provision for depreciation (830,615) (775,033) (728,979) In service - Net $1,651,215 $1,608,865 $ 1,520,744 The Company is involved in the ownership and operation of three jointly-owned generating facilities. The Consolidated Statements of Income include the Company's proportionate share of direct operation and maintenance expenses applicable to the projects. Each facility and extent of Company participation as of December 31, 1995 are as follows: Company Ownership Accumulated Electric Plant Provision For Name of Plant/Location In Service Depreciation % MW (Thousands of Dollars) Jim Bridger Units 1-4/ Rock Springs, WY $379,008 $159,721 33 693 Boardman/ Boardman, OR 60,368 26,087 10 53 Valmy Units 1 & 2/ Winnemucca, NV 299,189 105,612 50 261 The Company's wholly-owned subsidiary, IERCO, is a joint venturer in Bridger Coal Company, which operates the mine supplying coal for the Jim Bridger steam generation plant. Coal purchased by the Company from the joint venture amounted to $44,278,000 in 1995, $46,097,000 in 1994 and $45,424,000 in 1993. The Company has contracts to purchase the energy from five PURPA Qualified Facilities which are 50 percent owned by Ida-West. Power purchased from these facilities amounted to $8,695,800 in 1995, $7,139,000 in 1994 and $5,975,093 in 1993. IDAHO POWER COMPANY SCHEDULE II - CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS Years Ended December 31, 1995, 1994 and 1993 Column C Column A Column B Additions Column D Column E Charged Balance Balance At Charged (Credited) At Beginning to to Other Deductions End Of Classification Of Period Income Accounts (1) Period (Thousands of Dollars) 1995: Reserves Deducted From Applicable Assets: Reserve for uncollectible accounts $1,377 $ 217 $2,927(2) $3,124 $1,397 Other Reserves: Injuries and damages reserve $1,500 $1,364 $ - $1,364 $1,500 Miscellaneous operating reserves $ 940 $ 460 $ (176) $ 81 $1,143 1994: Reserves Deducted From Applicable Assets: Reserve for uncollectible accounts $1,377 $1,360 $1,018(2) $2,378 $1,377 Other Reserves: Injuries and damages reserve $1,500 $1,804 $ - $1,804 $1,500 Miscellaneous operating reserves $ 748 $ 429 $ (156) $ 81 $ 940 1993: Reserves Deducted From Applicable Assets: Reserve for uncollectible accounts $1,421 $1,174 $1,001(2) $2,219 $1,377 Other Reserves: Injuries and damages reserve $1,500 $2,820 $ - $2,820 $1,500 Miscellaneous operating reserves $ - $ 870 $ 332 $ 454 $ 748 NOTES: (1) Represents deductions from the reserves for purposes for which the reserves were created. (2) Represents collections of accounts previously written off. EX-12 2 Exhibit 12 Idaho Power Company Consolidated Financial Information Ratio of Earnings to Fixed Charges Twelve Months Ended December 31, (Thousands of Dollars)
1990 1991 1992 1993 1994 1995 Computation of Ratio of Earnings to Fixed Charges: Consolidated net income $ 69,241 $ 57,872 $ 59,990 $ 84,464 $ 74,930 $ 86,921 Income taxes: Income taxes (includes amounts charged to other income and deductions) 26,418 24,321 24,601 38,057 35,307 49,497 Investment tax credit adjustment (3,184) (3,177) (1,439) (1,583) (1,064) (1,086) Total income taxes 23,234 21,144 23,162 36,474 34,243 48,412 Income before income taxes 92,475 79,016 82,152 120,938 109,173 135,333 Fixed Charges: Interest on long-term debt 50,119 54,370 53,408 53,706 51,173 51,146 Amortization of debt discount, expense and premium - net 309 374 392 507 567 567 Interest on short-term bank loans 1,027 935 647 220 1,157 3,144 Other interest 2,259 3,297 1,011 2,023 1,537 1,598 Interest portion of rentals 902 884 683 1,077 794 925 Total fixed charges 54,616 59,860 56,141 57,533 55,228 57,381 Earnings - as defined $147,091 $138,876 $139,293 $178,471 $164,401 $192,714 Ratio of earnings to fixed charges 2.69X 2.32X 2.48X 3.10X 2.98X 3.36X
EX-12.A 3 Exhibit 12(a) Idaho Power Company Consolidated Financial Information Supplemental Ratio of Earnings to Fixed Charges Twelve Months Ended December 31, (Thousands of Dollars)
1990 1991 1992 1993 1994 1995 Computation of Ratio of Earnings to Fixed Charges: Consolidated net income $ 69,241 $ 57,872 $ 59,990 $ 84,464 $ 74,930 $ 86,921 Income taxes: Income taxes (includes amounts charged to other income and deductions) 26,418 24,321 24,601 38,057 35,307 49,497 Investment tax credit adjustment (3,184) (3,177) (1,439) (1,583) (1,064) (1,086) Total income taxes 23,234 21,144 23,162 36,474 34,243 48,412 Income before income taxes 92,475 79,016 83,152 120,938 109,173 135,333 Fixed Charges: Interest on long-term debt 50,119 54,370 53,408 53,706 51,173 51,146 Amortization of debt discount, expense and premium - net 309 374 392 507 567 567 Interest on short-term bank loans 1,027 935 647 220 1,157 3,144 Other interest 2,259 3,297 1,011 2,023 1,537 1,598 Interest portion of rentals 902 884 683 1,077 794 925 Total fixed charges 54,616 59,860 56,141 57,533 55,228 57,381 Suppl increment to fixed charges* 1,969 1,599 2,487 2,631 2,622 2,611 Total supplemental fixed charges 56,585 61,459 58,628 60,164 57,850 59,992 Supplemental earnings - as defined $149,060 $140,475 $141,780 $181,102 $167,023 $195,325 Supplemental ratio of earnings to fixed charges 2.63X 2.29X 2.42X 3.01X 2.89X 3.26X * Explanation of increment: Interest on the guaranty of American Falls Reservoir District Bonds and Milner Dam Inc. notes which are already included in operating expense.
EX-12.B 4 Exhibit 12(b) Idaho Power Company Consolidated Financial Information Ratio of Earnings to Combined Fixed Charges and Preferred Dividend Requirements Twelve Months Ended December 31, (Thousands of Dollars)
1990 1991 1992 1993 1994 1995 Computation of Ratio of Earnings to Fixed Charges: Consolidated net income $ 69,241 $ 57,872 $ 59,990 $ 84,464 $ 74,930 $ 86,921 Income taxes: Income taxes (includes amounts charged to other income and deductions) 26,418 24,321 24,601 38,057 35,307 49,497 Investment tax credit adjustment (3,184) (3,177) (1,439) (1,583) (1,064) (1,086) Total income taxes 23,234 21,144 23,162 36,474 34,243 48,412 Income before income taxes 92,475 79,016 83,152 120,938 109,173 135,333 Fixed Charges: Interest on long-term debt 50,119 54,370 53,408 53,706 51,173 51,146 Amortization of debt discount, expense and premium - net 309 374 392 507 567 567 Interest on short-term bank loans 1,027 935 647 220 1,157 3,144 Other interest 2,259 3,297 1,011 2,023 1,537 1,598 Interest portion of rentals 902 884 683 1,077 794 925 Total fixed charges 54,616 59,860 56,141 57,533 55,228 57,381 Preferred dividends requirements 5,685 6,663 7,611 8,547 10,682 12,392 Total fixed charges and preferred dividends 60,301 66,523 63,752 66,080 65,910 69,773 Earnings - as defined $147,091 $138,876 $139,293 $178,471 $164,401 $192,714 Ratio of earnings to fixed charges and preferred dividends 2.44X 2.09X 2.18X 2.70X 2.49X 2.76X
EX-12.C 5 Exhibit 12(c) Idaho Power Company Consolidated Financial Information Supplemental Ratio of Earnings to Combined Fixed Charges and Preferred Dividend Requirements Twelve Months Ended December 31, (Thousands of Dollars)
1990 1991 1992 1993 1994 1995 Computation of Ratio of Earnings to Fixed Charges: Consolidated net income $ 69,241 $ 57,872 $ 59,990 $ 84,464 $ 74,930 $ 86,921 Income taxes: Income taxes (includes amounts charged to other income and deductions) 26,418 24,321 24,601 38,057 35,307 49,497 Investment tax credit adjustment (3,184) (3,177) (1,439) (1,583) (1,064) (1,086) Total income taxes 23,234 21,144 23,162 36,474 34,243 48,412 Income before income taxes 92,475 79,016 83,152 120,938 109,173 135,333 Fixed Charges: Interest on long-term debt 50,119 54,370 53,408 53,706 51,173 51,146 Amortization of debt discount, expense and premium - net 309 374 392 507 567 567 Interest on short-term bank loans 1,027 935 647 220 1,157 3,144 Other interest 2,259 3,297 1,011 2,023 1,537 1,598 Interest portion of rentals 902 884 683 1,077 794 925 Total fixed charges 54,616 59,860 56,141 57,533 55,228 57,381 Suppl increment to fixed charges* 1,969 1,599 2,487 2,631 2,622 2,611 Supplemental fixed charges 56,585 61,459 58,628 60,164 57,850 59,992 Preferred dividend requirements 5,685 6,663 7,611 8,547 10,682 12,392 Total supplemental fixed charges and preferred dividends 62,270 68,122 66,239 68,711 68,532 72,384 Supplemental earnings - as defined $149,060 $140,475 $141,780 $181,102 $167,023 $195,325 Supplemental ratio of earnings to fixed charges and preferred dividends 2.39X 2.06X 2.14X 2.64X 2.44X 2.70X * Explanation of increment: Interest on the guaranty of American Falls Reservoir District Bonds and Milner Dam Inc. Notes which are already included in operating expense.
EX-23 6 Exhibit 23 INDEPENDENT AUDITORS' CONSENT We consent to the incorporation by reference in Registration Statement Nos. 33-65720, 33-51215 and 333-00139 of Idaho Power Company on Form S-3 and Registration Statement No. 33-56071 of Idaho Power Company on Form S-8 of our report dated January 31, 1996 appearing in this Form 8-K of Idaho Power Company. DELOITTE & TOUCHE LLP Portland, Oregon February 23, 1996 EX-27 7
UT This schedule contains summary financial information extracted from (balance sheets, income statements and cash flow statements) and is qualified in its entirety by reference to such financial statements. 12-MOS DEC-31-1995 DEC-31-1995 PER-BOOK 1672885 16826 151561 400481 0 2241753 94031 358917 229827 682775 0 132181 659218 0 13400 53020 20517 0 0 0 680642 2241753 545621 48412 369630 418042 127579 14356 141935 55014 86921 7991 78930 69941 51146 168430 2.10 2.10
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