-----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, Cd1z7Rwu8WALb1c40iG8UbzCxQ6dblWAECkUgJlVJRwARnU+w6VIkQ3OZAJE/rCH Rf7Ql7QQtnyhFyflKF/Lvg== 0001057877-02-000012.txt : 20020425 0001057877-02-000012.hdr.sgml : 20020425 ACCESSION NUMBER: 0001057877-02-000012 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020425 ITEM INFORMATION: Other events FILED AS OF DATE: 20020425 FILER: COMPANY DATA: COMPANY CONFORMED NAME: IDACORP INC CENTRAL INDEX KEY: 0001057877 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 820505802 STATE OF INCORPORATION: ID FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14465 FILM NUMBER: 02620417 BUSINESS ADDRESS: STREET 1: 1221 WEST IDAHO STREET CITY: BOISE STATE: ID ZIP: 83702-5627 BUSINESS PHONE: 2083882200 MAIL ADDRESS: STREET 1: PO BOX 70 STREET 2: 1221 WEST IDAHO STREET CITY: BOISE STATE: ID ZIP: 83702-5627 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: 02620418 BUSINESS ADDRESS: STREET 1: 1221 W IDAHO ST STREET 2: PO BOX 70 CITY: BOISE STATE: ID ZIP: 83702 BUSINESS PHONE: 2083882200 MAIL ADDRESS: STREET 1: PO BOX 70 STREET 2: 1221 W IDAHO STREET CITY: BOISE STATE: ID ZIP: 83702-5627 8-K 1 a8kidacorp.txt SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) April 25, 2002 Exact name of Registrants as specified in Commission their charters, address of IRS Employer principal executive File offices and Registrants' Identification Number telephone number Number 1-14465 IDACORP, Inc. 82-0505802 1-3198 Idaho Power Company 82-0130980 1221 W. Idaho Street Boise, ID 83702-5627 (208) 388-2200 State or Other Jurisdiction of Incorporation: Idaho None Former name, former address and former fiscal year, if changed since last report. IDACORP, Inc. IDAHO POWER COMPANY Form 8-K Items 1 through 4 and 6 through 9 are inapplicable and have been omitted herefrom. Item 5. OTHER EVENTS. The Company issued the following press release: IDACORP Reports First Quarter 2002 Earnings BOISE - IDACORP, Inc. (NYSE:IDA) today reported first quarter 2002 earnings of 66 cents per share, a 27-cents-per-share decline from last year's 93 cents per share. Net income for the first quarter 2002 was $25 million, $10 million less than the same period a year earlier. The reduction was due to weakened performance by non-regulated operations. "IDACORP Energy's weaker financial performance came from declining regional pricing spreads and fewer credit worthy counterparties in the markets," said IDACORP President and CEO Jan Packwood. "Idaho Power, our regulated business, contributed more to earnings this year, but is still recovering from the effects of last year's severe drought and high power supply costs." The Company reaffirms its April 12 earnings-per-share guidance for 2002 to a range between $2.20 and $2.50. Business Operations IDACORP ENERGY IDACORP Energy contributed 11 cents per share in the first quarter, down 51 cents per share from last year's strong performance. The company's quarterly volume of settled power sales continues its upward trend, increasing 25 percent to 13 million megawatt-hours (MWh) in first quarter 2002, compared to 10.4 million MWh in the fourth quarter 2001. The dramatic decline in regional pricing spreads and volatility has driven this decrease in earnings, despite the increase in settled sales volumes. The company expects to offset the current soft market conditions with continued focus on structured origination activity and growth in product offerings. IDAHO POWER COMPANY While still below normal levels, Idaho Power's earnings improved to 57 cents per share for the quarter, a 20-cents-per- share increase over the disappointing 37 cents per share earned in last year's first quarter. The increase reflects better hydroelectric generating conditions and lower wholesale market prices that led to lower power supply costs. For the quarter, general business revenues were up $53 million. The primary driver of the increase in revenues was the May 1 and October 1, 2001, Power Cost Adjustment (PCA) rate increases combined with continued customer growth. The PCA increases were approved solely for power supply cost recovery and did not enhance bottom line performance. The revenue increase was dampened somewhat by load reduction programs and the impact of customers' response to higher retail prices. The National Weather Service River Forecast Center is projecting that April-July inflow into Brownlee Reservoir, Idaho Power's key water storage facility, is expected to be 3.6 million acre-feet (maf). Average inflow into the reservoir is 6.3 maf. Idaho Power added 1,273 general business customers during the first quarter 2002 and as of March 31, Idaho Power had 403,012 general business customers. Regulatory Update On April 15, Idaho Power submitted its annual Power Cost Adjustment filing with the Idaho Public Utilities Commission (IPUC). This filing calls for the recovery of $249 million in extraordinary power supply costs. On April 18, the IPUC ordered the denial of $10 million (amount through September 2001 now estimated to be $12 million through March 31, 2002) of revenues forgone by Idaho Power as a result of last year's irrigation load reduction program. IPC believes this order is inconsistent with an earlier order that allowed recovery of such revenues. IPC will be filing a Petition for Reconsideration relating to this order with the IPUC. It is a long-standing legal position in Idaho that an IPUC order is not administratively final until the reconsideration process is completed. If IPC is unsuccessful in its efforts before the IPUC, it would write off the amount. On April 22, IPUC Staff filed testimony related to IPC's annual PCA filing and its March 11, 2002 Energy Cost Bond Charge filing (Securitization). Staff Testimony has proposed a number of adjustments to the Company's filings. The four major items include: 1) Removal of reduced revenues (estimated to be $12 million) associated with the Irrigation Load Reduction Program noted above; 2) Removal of a portion of the expenses (estimated to be $2.9 million) associated with the mobile diesel generators; 3) Denial of IPC's request to issue energy cost recovery bonds for a portion of the PCA balance; and 4) Recovery of PCA deferred costs over a two-year period with a carrying charge on the amount deferred beyond one year. A hearing on these issues is scheduled for Friday, April 26, 2002, and the IPUC is expected to issue an order related to these and other issues on May 9, 2002. Idaho Power believes that in items #1 and #2, that it had appropriate regulatory authorization to defer and collect these amounts. In the event that IPC is not allowed to issue energy cost recovery bonds, it will evaluate alternative financing options at that time. OTHER SUBSIDIARIES IDACORP Financial contributed 5 cents per share for the first quarter 2002, 2 cents per share more than last year's first quarter. Ida-West Energy recorded a net loss of 2 cents per share for the first quarter as compared to a 1-cent-per-share gain in last year's first quarter. On April 15, Idaho Power exercised its option to delay the in-service date of the Garnet Energy Facility from June 1, 2004, to June 1, 2005. This decision was based on the fact that permitting, resource needs, and regulatory approval has extended beyond original projections. IDACORP continues to invest in the future of power technology and communications through its subsidiaries IdaTech and IDACOMM. These entities and IDACORP's other business activities recorded a loss of 5 cents per share on the quarter, which is a 5-cents-per-share improvement when compared with the first quarter last year. Background Information Boise, Idaho-based IDACORP, formed in 1998, is a holding company comprised of: Idaho Power, a regulated electric utility; Ida-West Energy, an independent power project management and development arm; IDACORP Energy, a marketer of energy and energy related products and services; IDACORP Financial, an investment vehicle which makes investments primarily in affordable housing projects; IdaTech, a developer and producer of fully integrated fuel cell systems; and IDACOMM, a telecommunications subsidiary providing high-speed Internet access technologies. Certain statements contained in this news release, including statements with respect to future earnings, are "forward-looking statements" within the meaning of the federal securities laws. Although IDACORP believes that the expectations and assumptions reflected in these forward-looking statements are reasonable, these statements involve a number of risks and uncertainties, and actual results may differ materially from the results discussed in the statements. Important factors that could cause actual results to differ materially from the forward-looking statements include: the current energy situation in the western United States, market demand and prices for energy, capacity and fuel; weather variations affecting customer energy usage; operating performance of plants and other facilities; environmental conditions and requirements; and system conditions and operating costs. Any such forward-looking statements should be considered in light of such factors and others noted in IDACORP and Idaho Power Company's Form 10-K for the year 2001, and other reports on file with the Securities and Exchange Commission. IDACORP, Inc. Consolidated Earnings Statements For Periods Ended March 31, 2002 and 2001 Summary Financial Information (Millions of Dollars, expect per share data) Three Months Ended 3/31/02 3/31/01 OPERATING REVENUES: Electric utility: General business $ 186 $ 133 Off-system sales 20 55 Other revenues 9 12 Total electric utility revenues 215 200 Energy marketing: Energy marketing commodities & services 434 929 Other 4 3 Total operating revenues 653 1,132 OPERATING EXPENSES: Electric utility: Purchased power 30 125 Fuel expense 28 25 Power cost adjustment 34 (58) Other operation & maintenance 50 49 Depreciation 23 21 Taxes other than income taxes 5 5 Total electric utility operations 170 167 Energy marketing: Cost of energy commodities and services 425 858 Selling, administrative and general 3 33 Other 8 9 Total operating expenses 606 1,067 OPERATING INCOME: Electric utility 45 33 Energy marketing 6 38 Other (4) (6) Total operating income 47 65 OTHER INCOME 5 5 INTEREST EXPENSE AND OTHER: Interest on long-term debt 13 13 Other interest expense 4 3 Preferred dividends - Idaho Power Company 1 2 Total interest and other 18 18 INCOME BEFORE INCOME TAXES 34 52 INCOME TAXES 9 17 NET INCOME $ 25 $ 35 AVERAGE COMMON SHARES OUTSTANDING (000'S) 37,560 37,359 EARNINGS PER SHARE (basic and diluted) $0.66 $0.93 IDACORP, Inc. Consolidated Statements of Cash Flows For Periods Ended March 31, 2002 and 2001 Summary Financial Information (Millions of Dollars) Three Months Ended 3/31/02 3/31/01 OPERATING ACTIVITIES: Net income $ 25 $ 35 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Allowance for uncollectible accounts - 20 Unrealized (gains) losses from energy marketing activities 20 (75) Depreciation and amortization 27 26 Deferred taxes and investment tax credits (14) 62 Accrued PCA costs 30 (60) Change in: Receivables and prepayments 22 (23) Accounts payable (88) (48) Taxes (receivable) accrued 66 (32) Other 21 (32) Net cash provided by (used in) operating activities 109 (127) INVESTING ACTIVITIES (72) (57) FINANCING ACTIVITIES: Proceeds from issuance of long- term debt - 120 Retirement of long-term debt (52) (80) Increase (decrease) in short-term borrowings 23 96 Dividends on common stock (17) (17) Other 1 (12) Net cash provided by (used in) financing activities (45) 107 Net increase (decrease) in cash and cash equivalents (8) (77) Cash and cash equivalents beginning of period 67 107 Cash and cash equivalents at end of period $ 59 $ 30 IDACORP, Inc. Consolidated Balance Sheets For Periods Ended March 31, 2002 and December 31, 2001 Summary Financial Information (Millions of Dollars) 3/31/02 12/31/01 ASSETS: Cash and cash equivalents $ 59 $ 67 Receivables net of allowance 157 181 Energy marketing assets 102 194 Other current assets 140 211 Total current assets 458 653 Investments 207 159 Property, plant and equipment - net 1,889 1,886 Energy marketing assets - long- term 138 204 Regulatory assets 509 544 Other assets 198 196 Total other assets 845 944 Total Assets $3,399 $3,642 Liabilities and Shareholders' Equity Current maturities of long-term debt $ 36 $ 36 Notes payable 386 363 Accounts payable 160 248 Energy marketing liabilities 104 125 Derivative liabilities 29 41 Other current liabilities 72 94 Total current liabilities 787 907 Deferred income taxes 584 590 Energy marketing liabilities - long-term 54 135 Derivative liabilities - long- term 3 7 Regulatory liabilities 116 114 Other liabilities 78 71 Total other liabilities 835 917 Long-term debt 791 843 Preferred stock of Idaho Power Company 104 104 Shareholders' equity 882 871 Total Liabilities & Shareholders' Equity $3,399 $3,642 Idaho Power Company Supplemental Operating Statistics Three Months Ended 3/31/02 3/31/01 Energy Use - MWh Residential 1,356,062 1,349,845 Commercial 877,601 833,960 Industrial 773,667 1,063,728 Irrigation 2,728 1,898 Total General Business 3,010,058 3,249,431 Off-System Sales 821,956 494,872 Total 3,832,014 3,744,303 Revenue ($000's) Residential $ 94,154 $ 69,735 Commercial 48,585 32,705 Industrial 43,120 30,533 Irrigation 261 148 Total General Business 186,120 133,121 Off-System Sales 20,159 55,249 Total $ 206,279 $ 188,370 Customers - Period End Residential 336,702 329,470 Commercial 52,373 51,220 Industrial 113 117 Irrigation 13,824 15,127 Total 403,012 395,934 IDACORP Energy Unconsolidated Operating Statistics $(000)'s Revenue (1) $ 436,549 $ 1,038,542 Cost of Goods Sold (1) 427,031 966,567 Gross Margin 9,518 71,975 SG&A 3,257 33,428 Operating Margin $ 6,261 $ 38,547 Value at Risk: End of period 95% confidence level $ 1,683 $ 4,363 End of period 99% confidence level $ 2,384 $ 6,181 Avg. over Period (95% confidence) $ 1,391 $ 7,398 Settled Volume: Electricity (mwh's) 12,997,815 6,308,614 Natural Gas (mmbtu's) 12,173,707 17,383,287 (1) These amounts differ from those reported on the Consolidated Earnings Statements due to intersegment eliminations. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized. IDACORP, INC. Dated: April 25, 2002 By: /s/Darrel T. Anderson Darrel T. Anderson Vice President, Chief Financial Officer and Treasurer IDAHO POWER COMPANY By: /s/Darrel T. Anderson Darrel T. Anderson Vice President, Chief Financial Officer and Treasurer -----END PRIVACY-ENHANCED MESSAGE-----