-----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, b2Is5bEQcSkP32YGJZX8SKu4G92eaFBS6MK6qq2KphgMltUQmTmNrHNU1Fx7HTsH YJNteqhakrePENiInHIPtA== 0000049648-94-000040.txt : 19941107 0000049648-94-000040.hdr.sgml : 19941107 ACCESSION NUMBER: 0000049648-94-000040 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 19940930 FILED AS OF DATE: 19941104 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: 94557558 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 September 30, 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 October 31, 1994 is 37,612,351. IDAHO POWER COMPANY Index Part I. Financial Information: Page No Item 1. Financial Statements Consolidated Statements of Income - Three Months, Nine Months and Twelve Months Ended September 30, 1994 and September 30, 1993 3-5 Consolidated Balance Sheets - September 30, 1994 and December 31, 1993 6, 7 Consolidated Statements of Cash Flows - Nine Months and Twelve Months Ended September 30, 1994 and September 30, 1993 8, 9 Consolidated Statements of Capitalization - September 30, 1994 and December 31, 1993 10 Notes to Consolidated Financial Statements 11-12 Report on Review by Independent Accountants 13 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 14-23 Part II. Other Information: Item 1. Legal Proceedings 24-25 Item 6. Exhibits and Reports on Form 8-K 26-27 Signatures 28 PART I - FINANCIAL INFORMATION IDAHO POWER COMPANY CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1994 AND 1993 Item 1. Financial Statements
Three Months Ended September 30, Increase 1994 1993 (Decrease) (Thousands of Dollars) REVENUES (Notes 1 and 4) $151,031 $134,577 $ 16,454 EXPENSES (Notes 1 and 4): Operation: Purchased power 28,576 21,310 7,266 Fuel expense 28,679 21,952 6,727 Other 26,822 24,413 2,409 Maintenance 11,081 11,315 (234) Depreciation 16,101 15,536 565 Taxes other than income taxes 6,163 5,765 398 Total expenses 117,422 100,291 17,131 INCOME FROM OPERATIONS 33,609 34,286 (677) OTHER INCOME: Allowance for equity funds used during construction (Note 2) 438 788 (350) Other - Net 3,618 3,542 76 Total other income 4,056 4,330 (274) INTEREST CHARGES: Interest on long-term debt 12,793 12,992 (199) Other interest 942 578 364 Total interest charges 13,735 13,570 165 Allowance for borrowed funds used during construction (Note 2) (509) (489) (20) Net interest charges 13,226 13,081 145 INCOME BEFORE INCOME TAXES 24,439 25,535 (1,096) INCOME TAXES 8,150 9,108 (958) NET INCOME 16,289 16,427 (138) Dividends on preferred stock 1,862 1,565 297 EARNINGS ON COMMON STOCK $ 14,427 $ 14,862 $ (435) AVERAGE COMMON SHARES OUTSTANDING (000) 37,612 36,785 N/A Earnings per share of common stock $ 0.38 $ 0.40 $ (0.02) 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 NINE MONTHS ENDED SEPTEMBER 30, 1994 AND 1993
Nine Months Ended September 30, Increase 1994 1993 (Decrease) (Thousands of Dollars) REVENUES (Notes 1 and 4) $ 408,382 $ 404,857 $ 3,525 EXPENSES (Notes 1 and 4): Operation: Purchased power 53,717 39,677 14,040 Fuel expense 70,754 58,661 12,093 Other 80,835 95,577 (14,742) Maintenance 32,875 32,334 541 Depreciation 47,661 46,447 1,214 Taxes other than income taxes 17,538 17,416 122 Total expenses 303,380 290,112 13,268 INCOME FROM OPERATIONS 105,002 114,745 (9,743) OTHER INCOME: Allowance for equity funds used during construction (Note 2) 1,552 2,168 (616) Other - Net 8,406 8,689 (283) Total other income 9,958 10,857 (899) INTEREST CHARGES: Interest on long-term debt 38,384 40,911 (2,527) Other interest 2,231 1,299 932 Total interest charges 40,615 42,210 (1,595) Allowance for borrowed funds used during construction (Note 2) (1,344) (1,894) 550 Net interest charges 39,271 40,316 (1,045) INCOME BEFORE INCOME TAXES 75,689 85,286 (9,597) INCOME TAXES 24,110 28,988 (4,878) NET INCOME 51,579 56,298 (4,719) Dividends on preferred stock 5,470 4,228 1,242 EARNINGS ON COMMON STOCK $ 46,109 $ 52,070 $ (5,961) AVERAGE COMMON SHARES OUTSTANDING (000) 37,461 36,563 N/A Earnings per share of common stock $ 1.23 $ 1.42 $ (0.19) Dividends paid per share of common stock $ 1.395 $ 1.395 $ - The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY CONSOLIDATED STATEMENTS OF INCOME FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 1994 AND 1993
Twelve Months Ended September 30, Increase 1994 1993 (Decrease) (Thousands of Dollars) REVENUES (Notes 1 and 4) $ 543,927 $ 534,791 $ 9,136 EXPENSES (Notes 1 and 4): Operation: Purchased power 59,400 51,594 7,806 Fuel expense 99,948 87,426 12,522 Other 106,511 121,583 (15,072) Maintenance 43,678 40,726 2,952 Depreciation 59,937 61,597 (1,660) Taxes other than income taxes 22,250 23,159 (909) Total expenses 391,724 386,085 5,639 INCOME FROM OPERATIONS 152,203 148,706 3,497 OTHER INCOME: Allowance for equity funds used during construction (Note 2) 2,444 2,736 (292) Other - Net 9,641 11,291 (1,650) Total other income 12,085 14,027 (1,942) INTEREST CHARGES: Interest on long-term debt 51,179 54,471 (3,292) Other interest 3,681 1,540 2,141 Total interest charges 54,860 56,011 (1,151) Allowance for borrowed funds used during construction (Note 2) (1,914) (2,459) 545 Net interest charges 52,946 53,552 (606) INCOME BEFORE INCOME TAXES 111,342 109,181 2,161 INCOME TAXES 31,596 33,731 (2,135) NET INCOME 79,746 75,450 4,296 Dividends on preferred stock 7,251 5,575 1,676 EARNINGS ON COMMON STOCK $ 72,495 $ 69,875 $ 2,620 AVERAGE COMMON SHARES OUTSTANDING (000) 37,348 36,449 N/A Earnings per share of common stock $ 1.94 $ 1.92 $ 0.02 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
September 30, December 31, 1994 1993 (Thousands of Dollars) ELECTRIC PLANT: In service (at original cost) $2,360,924 $2,249,723 Less accumulated provision for depreciation 765,949 728,979 In service - Net 1,594,975 1,520,744 Construction work in progress 56,625 92,682 Held for future use 1,163 2,958 Electric plant - Net 1,652,763 1,616,384 INVESTMENTS AND OTHER PROPERTY 20,607 20,772 CURRENT ASSETS: Cash and cash equivalents 5,389 8,228 Receivables: Customer 29,642 29,741 Less allowance for uncollectible accounts (1,412) (1,377) Notes 4,784 5,616 Employee notes receivable 5,649 5,909 Other 1,511 1,858 Accrued unbilled revenues (Note 1) 21,767 25,583 Materials and supplies (at average cost) 24,541 23,372 Fuel stock (at average cost) 12,308 11,553 Prepayments 20,533 20,975 Regulatory assets associated with income taxes 5,896 4,914 Total current assets 130,608 136,372 DEFERRED DEBITS: American Falls and Milner water rights 32,605 32,755 Company owned life insurance 49,058 45,294 Regulatory assets associated with income taxes 175,284 171,569 Regulatory assets - other 66,333 35,036 Other 38,820 39,235 Total deferred debits 362,100 323,889 TOTAL $2,166,078 $2,097,417 The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY CONSOLIDATED BALANCE SHEETS CAPITALIZATION & LIABILITIES
September 30, December 31, 1994 1993 (Thousands of Dollars) CAPITALIZATION (See Page 10): Common stock equity - $2.50 par value (shares authorized 50,000,000; shares outstanding September 30, 1994 - 37,612,351; December 31, 1993 - 37,085,055) $ 652,360 $ 662,367 Preferred stock (Note 5) 132,490 132,751 Long-term debt (Note 5) 693,199 693,780 Total capitalization 1,478,049 1,488,898 CURRENT LIABILITIES: Long-term debt due within one year 517 466 Notes payable 31,600 4,000 Accounts payable 33,905 31,912 Taxes accrued 16,369 15,452 Interest accrued 14,376 14,920 Other 35,374 13,731 Total current liabilities 132,141 80,481 DEFERRED CREDITS: Accumulated deferred investment tax credits 71,160 72,013 Accumulated deferred income taxes 369,340 358,280 Regulatory liabilities associated with income taxes 34,775 34,968 Regulatory liabilities - other 1,382 4,235 Other 79,231 58,542 Total deferred credits 555,888 528,038 COMMITMENTS AND CONTINGENT LIABILITIES (Note 3) TOTAL $2,166,078 $2,097,417 The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1994 AND 1993
Nine Months Ended September 30, 1994 1993 (Thousands of Dollars) OPERATING ACTIVITIES: Cash received from operations: Retail revenues $353,054 $337,627 Wholesale revenues 45,586 57,893 Other revenues 17,797 17,643 Fuel paid (70,261) (53,736) Purchased power paid (48,302) (41,488) Other operation & maintenance paid (133,041) (125,054) Interest paid (includes long and short-term debt only) (39,545) (432,516) Income taxes paid (16,114) (21,428) Taxes other than income taxes paid (10,713) (11,126) Other operating cash receipts and payments-Net (1,709) 501 Net cash provided by operating activities 96,752 117,316 FINANCING ACTIVITIES: First mortgage bonds issued - 188,136 PC bond fund requisitions/other long-term debt - 5,594 Common stock issued 13,402 19,932 Preferred stock issued - 24,781 Short-term borrowing 27,600 (5,925) Long-term debt retirement (449) (161,861) Preferred stock retirement (150) (55) Dividends on preferred stock (5,542) (4,137) Dividends on common stock (52,105) (50,815) Other sources 5 - Net cash - financing activities (17,239) 15,650 INVESTING ACTIVITIES: Additions to utility plant (81,687) (84,776) Conservation (4,942) (4,667) Other 4,277 5,088 Net cash - investing activities (82,352) (84,355) Change in cash and cash equivalents (2,839) 48,611 Cash and cash equivalents beginning of period 8,228 4,966 Cash and cash equivalents end of period $ 5,389 $ 53,577 RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Net Income $ 51,579 $ 56,298 Adjustments to reconcile net income to net cash: CSPP-Net amortization/(deferral) - (519) Depreciation 47,661 46,447 Deferred income taxes 12,568 6,989 Investment tax credit-Net (1,496) (359) Allowance for funds used during construction (2,896) (4,063) Postretirement benefits funding (excl pensions) (5,419) (7,564) Changes in operating assets and liabilities: Accounts receivable 8,055 8,306 Fuel inventory 492 4,925 Accounts payable 5,415 (1,292) Taxes payable 3,777 7,258 Interest payable 797 (1,471) Other - Net (23,781) 2,361 Net cash provided by operating activities $ 96,752 $117,316 The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 1994 AND 1993
Twelve Months Ended September 30, 1994 1993 (Thousands of Dollars) OPERATING ACTIVITIES: Cash received from operations: Retail revenues $450,052 $436,697 Wholesale revenues 72,419 69,190 Other revenues 23,565 27,015 Fuel paid (100,411) (84,082) Purchase power paid (57,060) (52,047) Other operation & maintenance paid (170,000) (158,174) Interest paid (includes long and short-term debt only) (52,378) (51,655) Income taxes paid (27,198) (25,092) Taxes other than income taxes paid (21,752) (22,910) Other operating cash receipts and payments-Net 5,935 (2,059) Net cash provided by operating activities 123,172 136,883 FINANCING ACTIVITIES: First mortgage bonds issued - 188,136 PC bond fund requisitions/other long-term debt - 8,764 Common stock issued 20,250 26,433 Preferred stock issued - 24,781 Short-term borrowings 31,385 75 Long-term debt retirement (30,465) (161,862) Preferred stock retirement (160) (82) Dividends on preferred stock (7,319) (5,303) Dividends on common stock (69,248) (67,537) Other sources 4 - Net cash - financing activities (55,553) 13,405 INVESTING ACTIVITIES: Additions to utility plant (119,860) (118,594) Conservation (6,963) (6,547) Other 11,016 6,237 Net cash - investing activities (115,807) (118,904) Change in cash and cash equivalents (48,188) 31,384 Cash and cash equivalents beginning of period 53,577 22,193 Cash and cash equivalents end of period $ 5,389 $ 53,577 RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Net income $ 79,746 $ 75,450 Adjustments to reconcile net income to net cash: CSPP-Net amortization/(deferral) - (1,141) Depreciation 59,937 61,597 Deferred income taxes 12,269 7,997 Investment tax credit-Net (2,719) (766) Allowance for funds used during construction (4,358) (5,195) Postretirement benefits funding (excl pensions) (5,336) (8,263) Changes in operating assets and liabilities: Accounts receivable 2,108 (1,888) Fuel inventory (463) 3,345 Accounts payable 2,340 687 Taxes payable (4,622) 1,727 Interest payable 1,258 4,128 Other - Net (16,988) (795) Net cash provided by operating activities $123,172 $136,883 The accompanying notes are an integral part of these statements.
IDAHO POWER COMPANY CONSOLIDATED STATEMENTS OF CAPITALIZATION
September 30, December 31, 1994 1993 (Thousands of Dollars) COMMON STOCK EQUITY: Common stock (Note 5) $ 94,031 $ 92,713 Premium on capital stock 363,046 350,882 Capital stock expense (4,132) (4,128) Retained earnings 199,415 222,900 Total common stock equity 652,360 44.1% 662,367 44.5% PREFERRED STOCK, cumulative, ($100 par or stated value): 4% preferred stock (authorized 215,000; shares outstanding: 1994-175,444; 1993-177,506) 17,490 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 132,490 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 24,650* 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 170,910 171,310 *Less amount due within one year (450) (400) Net pollution control revenue bonds 170,460 170,910 REA Notes 1,784 1,834 Less amount due within one year (67) (66) Net REA Notes 1,717 1,768 American Falls bond guarantee 20,905 21,055 Milner Dam note guarantee 11,700 11,700 Unamortized premium/discount - Net (1,583) (1,653) Total long-term debt 693,199 46.9 693,780 46.6 TOTAL CAPITALIZATION $1,478,049 100.0% $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 September 30, 1994 and the consolidated results of operation for the three months, nine months and twelve months ended September 30, 1994 and 1993 and the consolidated cash flows for the nine months and twelve months ended September 30, 1994 and 1993. 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. 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 nine months ended September 30, 1994, was 8.6 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 $10,098,000 at September 30, 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, in its Idaho jurisdiction, 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. Sixty percent of the deviations from forecasted costs are deferred with interest and then adjusted (trued-up) in the subsequent year. At September 30, 1994, the Company had recorded $8.8 million of power supply costs above those projected in the 1994 forecast. The current balance is adjusted monthly as actual conditions are compared to the forecasted net power supply costs. In addition, the Company filed for temporary drought rate relief with the Oregon Public Utility Commission (OPUC). The OPUC issued an accounting order that grants the Company permission to begin deferring with interest 60 percent of Oregon's share in the Company's increased power supply costs incurred between May 13, 1994 and December 31, 1994. The Company is required to file a request with the OPUC to recover the deferred amount. 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: In June 1994, the Company suspended issuing original issue shares of its common stock through its Employee Savings, Dividend Reinvestment and Stock Purchase, and Employee Stock Ownership Plans. For these plans the shares are presently being purchased on the open market. During 1994, the Company issued 527,296 original issue shares, producing approximately $13.4 million in proceeds. 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 September 30, 1994, and the related consolidated statements of income for the three-month, nine- month and twelve-month periods ended September 30, 1994 and 1993 and consolidated statements of cash flows for the nine- month and twelve-month periods ended September 30, 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 31, 1994, we expressed an unqualified opinion on those consolidated financial statements (which includes an explanatory paragraph relating to the 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 LLP Portland, Oregon October 28, 1994 Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion relates to Idaho Power Company and its four consolidated, wholly-owned subsidiaries: Idaho Energy Resources Company (IERCo), Ida-West Energy Company (Ida-West), IDACORP, Inc., and Idaho Utility Products Company (IUPCO). Idaho Power Company and its subsidiaries are collectively referred to here as the Company. Because the Company is primarily a hydroelectric utility, its operational results, like those of other utilities in the Northwest, are significantly affected by changing weather and streamflow conditions. In addition, the amount of energy used by general business consumers varies from season to season - and from month to month within each season - due primarily to seasonal weather. Non-firm (or off- system) energy sales also vary, by quarters and by years, as a result of hydro conditions and energy demand from other utilities. Finally, operating costs fluctuate during periods when reduced hydroelectric generating capability or a strong non-firm energy market increases the Company's reliance on thermal generation or purchases of power from other utilities. The Power Cost Adjustment (PCA) mechanism, approved by the Idaho Public Utilities Commission (IPUC), includes a major portion of those operating expenses that have the greatest potential for variation. When the PCA is fully implemented in Idaho, the Company's operating and earnings per share results will be more closely aligned with general regulatory, economic, and temperature-related weather conditions, and will be less dependent on variable precipitation and streamflow conditions.1 In addition, the Company filed a general rate increase request with the IPUC in June of this year, its first in nearly a decade. If approved as filed, the request will increase the Company's annual revenues by $37.05 million, raise Idaho customer rates by an average of 9.09 percent. The revenue requirement order will trigger full implementation of the PCA mechanism at the 90 percent recovery level from its present 60 percent. Earnings Per Share Earnings per share of common stock were $0.38 for the quarter, a decrease of $0.02 (or 5.0 percent) from the same quarter last year. Year-to-date, earnings per share were $1.23, a decrease of $0.19 (13.4 percent), and the twelve months ended September 30, 1994 showed earnings of $1.94 per share, an increase of $0.02 (1.0 percent). The twelve-month earnings represent an 11.1 percent earned return on year- end September 30 common equity, the same percentage as the return at September 30 last year. Among the items under review in the Company's current rate filing is its allowed return on equity. Although they have begun to increase recently, allowed returns on common equity granted nationally have declined over the last few years as a result of a lower interest rate environment. This decline created a contrast for some utilities with dividend payout levels set during periods of higher allowed returns. The Company has requested an allowed return on equity above its present dividend yield on year-end book value to provide, among other things, current earnings to cover dividend payments. However, the Company cannot predict the outcome of these rate proceedings. RESULTS OF OPERATIONS Precipitation and Streamflows The Company's service territory continued to experience lower than normal precipitation and higher than normal temperatures during the third quarter. As of October 1, 1994, reservoir storage above Brownlee Reservoir (water source for the Hells Canyon hydroelectric complex) was at 23 percent of capacity, compared to 39 percent of capacity at this time last year. Streamflows into Brownlee recorded between April and July 1994 were 2.75 million acre-feet (MAF). This figure is 46 percent of last year's 6.0 MAF and approximately 57 percent of the 65-year median amount of 4.8 MAF. These streamflows reflect the drought conditions that have plagued the Company's service territory for seven of the last eight years. Energy Requirements For the first nine months of 1994, the Company's total energy requirements were met by hydro generation (41 percent), thermal generation (45 percent), and purchased power and other interchanges (14 percent). During the same period of 1993, these percentages were: 56 percent hydro, 36 percent thermal, and 8 percent purchased power and other interchanges. With precipitation and streamflows below normal, the Company estimates that it will derive 41 percent of its total 1994 energy requirements from hydro generation, 48 percent from thermal generation, and 11 percent from purchased power and other interchanges. Under normal conditions, these percentages would be closer to 58 percent hydro, 36 percent thermal, and 6 percent purchased power and other interchanges. Power Cost Adjustment The Company's PCA mechanism allows it to collect, or refund, 60 percent of the difference between actual net power supply costs and those allowed in the Company's Idaho base rates. The Company filed its 1994 PCA application on April 15, 1994, requesting an increase in base rates for the Idaho jurisdiction. The increase (in effect from May 16, 1994 through May 15, 1995) is approximately $9.8 million, or 2.5 percent. This figure includes last year's true-up and other adjustments. Deviations from forecasted costs are deferred with interest and trued up the following year. At September 30, 1994, the Company had recorded $8.8 million of power supply costs above those projected in the 1994 forecast. This current balance will be adjusted monthly as actual conditions are compared to the forecasted net power supply costs. The final cumulative amount will be included in the 1995 true-up adjustment. When the IPUC issues a revenue requirement order on the permanent rate request, the PCA mechanism will be increased from the current 60 percent recovery level to 90 percent. Revenues General business revenues were up for the quarter ($19.3 million or 17.7 percent), up for the first nine months of 1994 ($20.5 million or 6.4 percent), and up for the twelve months ending September 30, 1994 ($17.5 million or 4.1 percent). The quarterly increase reflects sales increases in three customer classes over those achieved in third-quarter 1993. Residential sales rose $7.6 million (23.1 percent); small commercial sales rose $4.2 million (18.1 percent); and irrigation sales rose $5.1 million (17.4 percent). In addition, large industrial loads increased $2.3 million or 10.1 percent. The total number of general business customers served rose by 11,952, a 3.8 percent increase over the same period last year. The increase in general business customers and sales also account for the year-to-date increase in revenues, as do higher 1994 irrigation loads caused by below normal spring precipitation and warmer summer temperatures. These increased loads accounted for a $15.2 million (32.6 percent) increase in year-to-date irrigation sales. An extended period of warm temperatures during the summer months resulted in record- setting customer demand. On June 23, 1994, the Company set a new record for system peak load at 2,392 megawatts (MW). The increase in revenues for the twelve-month period again reflects both higher energy demands caused by warm summer weather and an increase in general business customers. Firm off-system sales rose $3.9 million for the quarter, $10.1 million year-to-date, and $13.4 million for the twelve months ended September 30, 1994. These increases were due primarily to the addition of two firm contracts signed during 1993. Surplus sales were down $6.4 million during the third quarter, $28.2 million year-to-date, and $21.5 million for the twelve-month period. These decreases reflect the additional firm contracts and the less favorable hydro generation conditions resulting from the region's current drought situation, as compared to the improved hydro generation conditions experienced during 1993. When compared to the corresponding periods a year ago, total operating revenues increased $16.5 million (or 12.2 percent) for the third quarter of 1994, $3.5 million (0.9 percent) year-to-date, and $9.1 million (1.7 percent) for the twelve months ended September 30, 1994. General Revenue Requirement Case On June 30, 1994, the Company filed a general revenue requirement rate case with the IPUC. The proposed $37.05 million increase in annual revenues translates to an average 9.09 percent rise in base rates in the Idaho jurisdiction. This filing is the Company's first requested general rate increase since 1985, and will bring all of the Company's cost components to a more current level in response to concerns expressed by the IPUC and various customer groups in recent regulatory proceedings. The Company is requesting a 12.5 percent return on common equity applied to a 45 percent common equity component. In addition, this request will change the base components included in the PCA. When the IPUC issues a revenue requirement order on the permanent rate request, the PCA mechanism will be increased from the current 60 percent to 90 percent. In August 1994, the IPUC held hearings on the Company's proposed interim rate relief request for an $11.5 million increase in its revenue requirement (a 2.83 percent uniform rate increase), and on August 5, 1994, denied the Company's interim request. The Commission began public hearings during the week of October 10, 1994 on the Company's permanent rate request. This portion of the hearings consisted only of cross-examination of Company witnesses. Commission staff and intervenors are scheduled to present their cases during the week of December 12. The Company expects a decision to its rate case by late January or early February of 1995. In addition in May 1994, the Company filed for temporary drought rate relief with the Oregon Public Utility Commission (OPUC). The OPUC issued an accounting order that grants the Company permission to begin deferring with interest 60 percent of Oregon's share in the Company's increased power supply costs incurred between May 13, 1994 and December 31, 1994. After the close of 1994 the Company is required to file its deferred amount amortization proposal with the OPUC. Expenses Total operating expenses were up $17.1 million (17.1 percent) for the quarter, $13.3 million (4.6 percent) year-to-date, and $5.6 million (1.5 percent) for the twelve months ended September 30, 1994 Purchased power and fuel expenses were higher for the three-, nine-, and twelve-month periods. These increases reflect poor hydro conditions that have increased the Company's reliance on thermal generation and purchased power to meet increasing customer demand. All other operation and maintenance expenses rose $2.2 million for the third quarter, but were down $14.2 million year-to-date and $12.1 million for the twelve- month period. These decreases reflect the change as the Company went from lower PCA costs in 1993 (due to better hydro conditions) to higher PCA costs in 1994 (due to the return of drought conditions). Deferral of deviations from forecasted costs increased expenses in 1993, while lowering them in 1994. The decrease was offset somewhat by increases in certain regulatory commission and employee payroll and benefit expenses. Depreciation expense increased as a result of greater plant investment. Total interest expense rose slightly for the three-month period, but declined by $1.6 million and $1.2 million for the nine- and twelve- month periods respectively. Refinancing during 1993 reduced long-term interest expense, while tax settlements with the Internal Revenue Service increased other interest expenses. Income taxes decreased for the three-, nine-, and twelve-month periods ended September 30, 1994 as a result of changes in pre-tax income. Ida-West Energy Company This wholly-owned subsidiary of the Company owns, through various partnerships, 50 percent of five Idaho hydroelectric projects with a total generating capacity of approximately 34 megawatts. Third parties unaffiliated with Ida-West own the remaining 50 percent of these projects, thus satisfying "qualifying facility" status under PURPA guidelines. The partnerships have obtained project financing (non- recourse to the Company) for each of these facilities. As a 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. On June 4, 1993, BPA selected three projects - including that of the partnership - for participation in the program. The partnership and BPA signed an option development agreement granting BPA an option to acquire energy and capacity from the project any time during a five-year option hold period after all option development period tasks, including permitting, have been completed. The option also entitles the partnership to BPA reimbursement for certain development costs, based on achievement of certain milestones. This option includes an exclusive right to acquire energy and capacity from a second 233 megawatt unit at the site during the same five-year option hold period. In March 1994, BPA and the partnership reached an additional 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 to complete development period tasks 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 an active search for new projects. LIQUIDITY AND CAPITAL RESOURCES Cash Flow Net cash generation from operations was $96.8 million for the first nine months of 1994. After deducting common and preferred dividends, net cash generation from operations provided approximately $39.1 million for the Company's construction program and other capital requirements. This was a 37.3 percent decrease from the same period of 1993. Cash Expenditures At present, the Company estimates that its cash construction program for 1994 will require approximately $109.8 million. Generating facilities account for about 34 percent of total required cash funds, transmission for 11 percent, distribution for 43 percent, and general plant and equipment for the balance. This estimate is subject to revision in light of changing economic, regulatory, and environmental factors and conservation policies. Year-to-date, the Company has expended approximately $86.6 million for construction and conservation. The Company's primary financial commitments and obligations are related to contracts and purchase orders for its ongoing construction program. They are expected to be financed with 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. These lines of credit may be used to finance a portion of the construction program on an interim basis. At September 30, 1994, the Company had short-term borrowings of $31.6 million. Financing Program In June, the Company suspended the issuance of original issue shares of its common stock through its Employee Savings, Dividend Reinvestment and Stock Purchase and Employee Stock Ownership Plans. It now purchases these required shares on the open market. During the first nine months of 1994, the Company issued 527,296 original issue shares, producing about $13.4 million in proceeds. In addition, 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 in long-term debt. Its 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 months ended September 30, 1994, the Company's consolidated pre-tax interest coverage was 3.03 times. Construction Program In early spring, the Company completed testing of the Swan Falls Project, and both generation units were declared available for commercial operation. Additional work to preserve the old power plant as an historical site began during the year, while work to establish a museum on the site is scheduled for completion in 1995. In May, crews completed the federally-mandated stabilization of the dam and began the environmental reclamation of approximately 18 acres of land affected by the construction activities. Expansion of the Twin Falls Project recently passed the halfway point, with completion estimated for mid-1995. Revised total cash expenditures for the Twin Falls expansion are currently estimated at $38.1 million, with total construction costs at $41.9 million, including an allowance for funds used during construction. When completed, this project will add 43 MW of new capacity to the Company's generation system. In addition, the Company continues to explore the economic feasibility of constructing the Southwest Intertie Project. The Bureau of Land Management is expected to approve the Final Environmental Impact Statement/Proposed Plan Amendment by the end of 1994. The right-of-way grant would follow in November 1994. The Company continues to negotiate with various utilities and electric providers for financial participation in the project, with the intention of retaining up to a 20 percent ownership in the line. Competition and Strategic Planning Competition is increasing in the electric utility industry, due to a variety of developments. In response, the Company continues to review and proceed with a strategic planning process designed to anticipate and fully integrate into Company operations any legislative, regulatory, environmental, competitive, or technological changes. With its low energy production costs, the Company is well-positioned to enter a more competitive environment and is taking action to preserve its low-cost competitive advantage. In September 1993, the Company submitted a detailed position paper to its state regulators and other interested parties. This report outlined proposed changes in the Company's resource acquisition policy. With the potential deregulation of the electric utility industry, and a more competitive power supply marketplace, the Company believes that current resource acquisition policies must be changed to avoid burdening it and its customers with unnecessary future power supply costs. The Company believes that the appropriate criteria for adding future supplies should be power needs at the time of development and the addition be the least-cost market alternative. Therefore, the Company filed with the IPUC in December 1993 for permission to approve lower prices for new cogeneration and small power production (CSPP) contracts. The IPUC found that there is good reason to believe that current Idaho CSPP purchase rates are too high and ordered that rates contained in new CSPP contracts would be subject to revision based on its final outcome. The IPUC has scheduled a hearing for the week of November 29, 1994. Rosebud Enterprises, Inc. (Rosebud) filed a Complaint against the Company with the IPUC, alleging that the Company refused to sign a contract to purchase the output of a 40 MW petroleum waste-fired generating plant that Rosebud proposes to build near Mountain Home, Idaho. Because this facility, known as the Mountain Home Project, is larger than 10 MW, the IPUC's established rates for small CSPP projects are not available to Rosebud. On September 16, 1994, the IPUC issued a final order directing the Company to recalculate and offer avoided cost rates as described in the order. Following the issuance of this order, Rosebud and the Company filed petitions for reconsideration which are now pending before the IPUC. On June 3, 1994 the IPUC approved the buyout and cancellation of a January 22, 1993 Firm Energy Sales Agreement (FESA) with Meridian Generating Company, L.P. (MGC). The FESA was a 25-year agreement with MGC for a 54 MW natural gas-fired combined cycle cogeneration facility located in Meridian, Idaho. The Company estimates that the revenue requirement savings, including cancellation charges (of $13.2 million, which are recorded as a regulatory asset) paid to MGC, are between $130 to $170 million. On June 28, 1994, Washington Water Power and Sierra Pacific Resources announced that their respective boards of directors had approved a merger agreement between the two companies. The Company is intervening in the regulatory approval process to ensure that the proposed merger has no adverse affects on its operations. In addition, the Company is actively identifying and responding to business opportunities presented by the proposed merger. Internally, the Company continues its commitment to refining its business processes to ensure its ability to offer the greatest possible value to its customers and its shareowners. Among these strategic initiatives are: - formation of process redesign teams that are examining and refining the Company's work order and line extension process; - initiation of a four-year, $3 million project to automate and consolidate the operation of the Company's 17 hydro-electric power plants; - continued training for Company employees in the principles and processes of continuous quality improvement; - formation of a Technical Advisory Panel, comprised of representatives from public and private interest groups, who will advise the Company on such matters as competition, alternative resources, and conservation. The Company will use the panel's advice as it reviews its Integrated Resource Plan, due for publication early in 1995. Salmon Recovery Plan Work continues on the development of a comprehensive and scientifically credible plan to ensure the long-term survival of anadromous fish runs on the Columbia and Lower Snake Rivers. The Company fully supports and actively participates in this regional effort. In mid-August, the federal government changed its designation of the Fall Chinook Salmon from threatened to endangered. The Company does not anticipate that the new designation will have any major effects on its operations. In September 1991 the Company modified operations at its three-dam Hells Canyon Hydroelectric Complex to protect the Fall Chinook downstream during spawning and juvenile emergence. From its start, the Company's Fall Chinook program has exceeded the protection requirements for threatened species, affording the fish the same high level of protection due an endangered species. The Snake River Salmon Recovery Team has submitted its Draft Recovery Plan (Draft Plan) to the National Marine Fisheries Service (NMFS), detailing its recommendations for restoring the listed Snake River salmon runs. After reviewing the 500-page report, the Company believes that the proposed course of action, if fully implemented, could lead to a successful recovery. The Draft Plan details comments regarding some institutional changes and responsibility for management of recovery efforts. It suggests reductions in 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 Lower Granite Reservoir on the Snake River, and suggests habitat, hatchery and predation improvements. The Company is closely monitoring the finalization of this Draft Plan, due to be released by the end of this year. Pending completion of a final recovery plan by the NMFS, the U.S. Army Corps of Engineers and other governmental agencies operating federally-owned dams and reservoirs on the Snake and Columbia Rivers have consulted the NMFS each year 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 1993 operations of the federal system. Judge Marsh concluded that the consultations and subsequent operations were "...too heavily geared towards a status quo that has allowed all forms of river activity to proceed..." at the expense of fish. On September 9, 1994 the Ninth Circuit Court of Appeals echoed Judge Marsh's decision when it found that the 1993 Strategy for Salmon proposed by the Northwest Power Planning Council (NPPC) was in violation of the 1980 Northwest Power Planning Act. The decision of the appeals court specifically ordered the NPPC to focus more attention on saving young salmon and to defer to the expertise of state, federal, and tribal fisheries management agencies in developing its salmon recovery program. The NPPC announced that it will not appeal the Ninth Circuit Court's decision. The Council has begun consultations with regional fisheries agencies and Indian tribes to consider amendments to its program. Although the Company coordinates its operations to aid the federal agencies with their salmon recovery efforts, neither the Company nor the operation of any of its facilities were directly involved in the litigation. It is possible that the court-ordered re-consultation could lead to operational changes for Company facilities in the future. At this time, however, the Company cannot assess the impacts, if any, that might occur as a result of any such changes. It also is possible that 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 depends on the Snake and Columbia Rivers. The Company hopes that anadromous fish runs can be restored to the level demanded by society without placing undue hardship on either the Company or those who benefit from its service. Relicensing The Company is vigorously pursuing the relicensing of its hydroelectric projects, a process that will continue for the next 10 to 15 years. Although various federal requirements and issues must be resolved through the relicensing process, the Company anticipates that its efforts will be successful. At this point, however, the Company cannot predict what type of environmental or operational requirements it may face, nor can it estimate the eventual cost of relicensing. PART II - OTHER INFORMATION Item 1. Legal Proceedings On February 16, 1994, the Company brought an action, Idaho Power Company v. Underwriters at Lloyds' London, et al., in United States District Court for the District of Idaho against 31 insurance companies and insurance syndicates which provided it with liability insurance in the period from 1969 through 1974. The action seeks a declaration and money damages arising from the defendants' failure to defend and indemnify the Company for approximately $6.9 million in costs the Company incurred in investigating and remediating hazardous waste materials at the Pacific Hide and Fur Company recycling site in Pocatello, Idaho, pursuant to an administrative action and consent decree between the Company and the Environmental Protection Agency. Those insurers which are not in liquidation, and which wrote the vast majority of the coverage at issue, have appeared and answered the complaint, asserting numerous affirmative defenses. The case is set for trial in the United States District Court for the Eastern District of Washington on June 26, 1995 and is presently in the early stages of dicovery. 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)". On September 18, 1992, the Company filed a motion for summary judgment. On March 21, 1994, the Federal District Judge issued an order 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. On September 28, 1994, the Federal District Judge issued an Order rejecting the Second Report and Recommendation of the Magistrate granting, in its entirety, the Company's motion for summary judgment. 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) Thirtieth 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 1-3198 4 Thirty-fourth December 1, 1993 Form 8-K Dated 12/17/93 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. 27 - Financial Data Schedule (b) Reports on Form 8-K. The following reports on Form 8-K were filed for the three months ended September 30, 1994. 1. Item 5. Other Events - A report on Form 8-K dated July 11, 1994 was filed by the Company concerning the application request for an increase in annual revenues for jurisdictional sales and service at approximately $37.05 million. A report on Form 8-K dated August 11, 1994 was filed by the Company concerning the denial of the Company's $11.5 million interim rate relief by the Idaho Public Utilities Commission. *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 November 4, 1994 By: /s/ Dan Bowers Dan Bowers Vice President and Acting Chief Financial Officer (Principal Financial Officer) Date November 4, 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 Twelve Months Ended December 31, Ended (Thousands of Dollars) September 30, 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 $ 79,746 Income taxes: Income taxes (includes amounts charged to other income and deductions) 45,336 26,418 24,321 24,601 38,057 34,315 Investment tax credit adjustment (3,295) (3,184) (3,177) (1,439) (1,583) (2,719) Total income taxes 42,041 23,234 21,144 23,162 36,474 31,596 Income before income taxes 126,778 92,475 79,016 82,152 120,938 111,342 Fixed Charges: Interest on long-term debt 49,629 50,119 54,370 53,408 53,706 51,179 Amortization of debt discount, expense and premium - net 238 309 374 392 507 566 Interest on short-term bank loans 2,200 1,027 935 647 220 639 Other interest 3,164 2,259 3,297 1,011 2,023 2,476 Interest portion of rentals 757 902 884 683 1,077 893 Total fixed charges 55,988 54,616 59,860 56,141 57,533 55,753 Earnings - as defined $182,766 $147,091 $138,876 $139,293 $178,471 $167,095 Ratio of earnings to fixed charges 3.26X 2.69X 2.32X 2.48X 3.10X 3.00X
EX-12.(A) 3 Idaho Power Company Consolidated Financial Information Supplemental Ratio of Earnings to Fixed Charges
Twelve Months Twelve Months Ended December 31, Ended (Thousands of Dollars) September 30, 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 $ 79,746 Income taxes: Income taxes (includes amounts charged to other income and deductions) 45,336 26,418 24,321 24,601 38,057 34,315 Investment tax credit adjustment (3,295) (3,184) (3,177) (1,439) (1,583) (2,719) Total income taxes 42,041 23,234 21,144 23,162 36,474 31,596 Income before income taxes 126,778 92,475 79,016 83,152 120,938 111,342 Fixed Charges: Interest on long-term debt 49,629 50,119 54,370 53,408 53,706 51,179 Amortization of debt discount, expense and premium - net 238 309 374 392 507 566 Interest on short-term bank loans 2,200 1,027 935 647 220 639 Other interest 3,164 2,259 3,297 1,011 2,023 2,476 Interest portion of rentals 757 902 884 683 1,077 893 Total fixed charges 55,988 54,616 59,860 56,141 57,533 55,753 Suppl increment to fixed charges* 2,321 1,969 1,599 2,487 2,631 2,624 Total supplemental fixed charges 58,309 56,585 61,459 58,628 60,164 58,377 Supplemental earnings - as defined $185,087 $149,060 $140,475 $141,780 $181,102 $169,719 Supplemental ratio of earnings to fixed charges 3.17X 2.63X 2.29X 2.42X 3.01X 2.91X * 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 Idaho Power Company Consolidated Financial Information Ratio of Earnings to Combined Fixed Charges and Preferred Dividend Requirements
Twelve Months Twelve Months Ended December 31, Ended (Thousands of Dollars) September 30 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 $ 79,746 Income taxes: Income taxes (includes amounts charged to other income and deductions) 45,336 26,418 24,321 24,601 38,057 34,315 Investment tax credit adjustment (3,295) (3,184) (3,177) (1,439) (1,583) (2,719) Total income taxes 42,041 23,234 21,144 23,162 36,474 31,596 Income before income taxes 126,778 92,475 79,016 83,152 120,938 111,342 Fixed Charges: Interest on long-term debt 49,629 50,119 54,370 53,408 53,706 51,179 Amortization of debt discount, expense and premium - net 238 309 374 392 507 566 Interest on short-term bank loans 2,200 1,027 935 647 220 639 Other interest 3,164 2,259 3,297 1,011 2,023 2,476 Interest portion of rentals 757 902 884 683 1,077 893 Total fixed charges 55,988 54,616 59,860 56,141 57,533 55,753 Preferred dividends requirements 6,374 5,685 6,663 7,611 8,547 10,037 Total fixed charges and preferred dividends 62,362 60,301 66,523 63,752 66,080 65,790 Earnings - as defined $182,766 $147,091 $138,876 $139,293 $178,471 $167,095 Ratio of earnings to fixed charges and preferred dividends 2.93X 2.44X 2.09X 2.18X 2.70X 2.54X
EX-12.(C) 5 Idaho Power Company Consolidated Financial Information Supplemental Ratio of Earnings to Combined Fixed Charges and Preferred Dividend Requirements
Twelve Months Twelve Months Ended December 31, Ended (Thousands of Dollars) September 30, 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 $ 79,746 Income taxes: Income taxes (includes amounts charged to other income and deductions) 45,336 26,418 24,321 24,601 38,057 34,315 Investment tax credit adjustment (3,295) (3,184) (3,177) (1,439) (1,583) (2,719) Total income taxes 42,041 23,234 21,144 23,162 36,474 31,596 Income before income taxes 126,778 92,475 79,016 82,152 120,938 111,342 Fixed Charges: Interest on long-term debt 49,629 50,119 54,370 53,408 53,706 51,179 Amortization of debt discount, expense and premium - net 238 309 374 392 507 566 Interest on short-term bank loans 2,200 1,027 935 647 220 639 Other interest 3,164 2,259 3,297 1,011 2,023 2,476 Interest portion of rentals 757 902 884 683 1,077 893 Total fixed charges 55,988 54,616 59,860 56,141 57,533 55,753 Suppl increment to fixed charges* 2,321 1,969 1,599 2,487 2,631 2,624 Supplemental fixed charges 58,309 56,585 61,459 58,628 60,164 58,377 Preferred dividend requirements 6,374 5,685 6,663 7,611 8,547 10,037 Total supplemental fixed charges and preferred dividends 64,683 62,270 68,122 66,239 68,711 68,414 Supplemental earnings - as defined $185,087 $149,060 $140,475 $141,780 $181,102 $169,719 Supplemental ratio of earnings to fixed charges and preferred dividends 2.86X 2.39X 2.06X 2.14X 2.64X 2.48X * 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-15 6 Exhibit 15 October 28, 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 September 30, 1994 and 1993, as indicated in our report dated October 28, 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 ended September 30, 1994, is incorporated by reference in Registration Statement Nos. 33-65720, and 33- 60046 on Form S-3; and Post-Effective Amendment No. 1 to Registration Statement No. 2-99567 and Registration Statement Nos. 33-36947 and 33-56071 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 LLP Portland, Oregon EX-27 7 FIN. DATA SCHEDULE FOR 3RD QTR. 10-Q
UT 1,000 Dec-31-1993 Jan-01-1994 Sep-30-1994 9-mos PER-BOOK 1,652,763 20,607 130,608 362,100 0 2,166,078 94,031 358,914 199,415 652,360 0 132,490 679,715 3,500 13,484 28,100 517 0 0 0 655,912 2,166,078 408,382 24,110 303,380 327,490 80,892 9,958 90,850 39,271 51,579 5,470 46,109 69,594 0 96,752 1.23 1.23
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