8-K

UNITED STATES
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):  February 6, 2006

	Exact name of registrants as specified in
Commission	their charters, address of principal executive	IRS Employer
File Number	offices and registrants' telephone number	Identification 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 or former address, if changed since last report.

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

IDACORP, Inc.
IDAHO POWER COMPANY
Form 8-K

ITEM 1.01      ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

Short-Term Incentive Compensation

On January 18, 2006, the Compensation Committee (the "Committee") of the Boards of Directors (the "Boards") of IDACORP, Inc. ("IDACORP") and Idaho Power Company ("IPC") adopted the 2006 IDACORP Executive Incentive Plan (the "2006 Incentive Plan") and established award opportunities.  The Boards approved the 2006 Incentive Plan and the award opportunities at their meeting on January 19, 2006.  These award opportunities were previously reported and a copy of the 2006 Incentive Plan was filed on a Current Report on Form 8-K dated January 19, 2006.  On February 6, 2006, the Committee modified two of the goals by adding a threshold level to the IPC net income and the IDACORP net income goals.  A copy of the Revised 2006 Incentive Plan is filed herewith as Exhibit 10.1 and incorporated herein by reference.  Filed herewith as Exhibit 10.2 and incorporated herein by reference is the revised 2006 Incentive Plan NEO Award Opportunity Chart indicating the 2006 annual award opportunities for the NEOs.

The terms of the 2006 Incentive Plan provide for annual cash incentive award opportunities based upon IDACORP and subsidiary performance measures, with a threshold, target and maximum level.  The amount of incentive will be calculated by multiplying base salary by the product of the approved incentive percentage and the combined multiplier.  The maximum payout is 200% of target.

The goals for 2006 are a combination of (i) operational and customer service goals for IPC (weighted 40%), (ii) net income for IPC (weighted 30%) and (iii) consolidated net income for IDACORP (weighted 30%).

The first goal has three components:  (i) customer satisfaction, (ii) total non-fuel operation and maintenance ("O&M") expense (excluding pension expense and third party transmission expense) and (iii) network reliability for general service customers.  Achievement of customer satisfaction, as measured by the customer relationship index, at the threshold level results in a multiplier of 7.5%; target level of 15%; and maximum level of 30%.  Achievement of specified levels of total O&M will result in multipliers at the threshold level of 7.5%; target level of 15%; and maximum level of 30%.  Achievement of network reliability for general service customers (which is based on the number of service interruptions more than five minutes in duration) will result in multipliers at the threshold level of 5%; target level of 10%; and maximum level of 20%.

Achievement of threshold levels of IPC net income and consolidated IDACORP net income, the second and third goals, will result in multipliers of 15%, target levels will result in multipliers of 30% and maximum levels will result in multipliers of 60%, respectively.

Participants who retire, die or become disabled during the year remain eligible to receive an award.  Participants who terminate employment for other reasons are not eligible for an award, unless otherwise determined by the Committee.  The Committee has full discretion to determine the extent to which goals have been achieved, the payment level and whether any final payment will be made.  Awards may be adjusted up or down and may be made regardless of the level of achievement of performance goals.  However, no award may be paid to IDACORP/IPC executives if there is no payment of awards to employees under the IDACORP/IPC Employee Incentive Plan or if net income is less than the Board approved dividend for IDACORP common stock for 2006.

Long-Term Incentive Compensation

On February 6, 2006, the Committee made grants of restricted stock (time vesting) under the Idaho Power 1994 Restricted Stock Plan.  Copies of the form of the Idaho Power 1994 Restricted Stock Agreement (time vesting) is filed herewith as Exhibit 10.3.  The NEOs who received restricted stock (time vesting) are listed on Exhibit 10.4, which is incorporated herein by reference.

The restricted stock (time vesting) grants will vest in full on February 6, 2009, subject to the participant remaining employed during the restricted period.  Participants will receive a prorated number of shares if they retire, die or become disabled during the restricted period, based on the number of full months they were employed.  Participants who terminate employment for other reasons will forfeit the shares.  Participants are entitled to vote the shares and receive dividends during the restricted period.

ITEM 2.02      RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On February 9, 2006, IDACORP issued a press release disclosing earnings results for IDACORP, Inc. and Idaho Power Company for the year and quarter ended December 31, 2005.  A copy of the press release is furnished as Exhibit 99.

ITEM 9.01      FINANCIAL STATEMENTS AND EXHIBITS

(c) Exhibits.

Number	Description
10.1	Revised 2006 IDACORP, Inc. Executive Incentive Plan
10.2	Revised 2006 IDACORP, Inc. Executive Incentive Plan NEO Award Opportunity Chart
10.3	Idaho Power 1994 Restricted Stock Plan-Form of Restricted Stock Agreement (time vesting)
10.4	Idaho Power 1994 Restricted Stock Plan-Restricted Stock Awards (time vesting) to NEOs Chart
99	IDACORP Press Release, dated February 9, 2006

SIGNATURES

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.

Dated:  February 9, 2006

IDACORP, Inc.

By:   /s/ Darrel T. Anderson
Darrel T. Anderson
Senior Vice President -
Administrative Services
and Chief Financial Officer

IDAHO POWER COMPANY

By:   /s/ Darrel T. Anderson
Darrel T. Anderson
Senior Vice President -
Administrative Services
and Chief Financial Officer

INDEX TO EXHIBITS

Number	Description
10.1	Revised 2006 IDACORP, Inc. Executive Incentive Plan
10.2	Revised 2006 IDACORP, Inc. Executive Incentive Plan NEO Award Opportunity Chart
10.3	Idaho Power 1994 Restricted Stock Plan-Form of Restricted Stock Agreement (time vesting)
10.4	Idaho Power 1994 Restricted Stock Plan-Restricted Stock Awards (time vesting) to NEOs Chart
99	IDACORP Press Release, dated February 9, 2006

EX-10

Exhibit 10.1

2006 IDACORP, Inc.
EXECUTIVE INCENTIVE PLAN
Revised February 6, 2006

PURPOSE

The purpose of the 2006 IDACORP Executive Incentive Plan (the "Plan") is to reinforce IDACORP, Inc.'s (the "Company") goals for profitable growth and continuation of a sound overall financial condition by providing incentive compensation opportunities to selected key employees.  The Plan is designed to:

attract, retain, and motivate key employees;

relate compensation to performance and financial results; and

provide a portion of compensation in a variable rather than a fixed form.

ADMINISTRATION

The Compensation Committee of the Board of Directors (the "Committee") has authority to:

select employees of the Company and its subsidiaries who are eligible to participate as Plan Participants; and

establish award opportunities for Plan Participants.

An award opportunity is the opportunity of a Participant to earn specified dollar amounts based on performance of the Company, its subsidiaries, and/or its business units during a given calendar year.  Award opportunities include terms specifying:

threshold, target, maximum, and/or other amounts that potentially may be earned by each Plan Participant; and

annual performance goals for the Company as a whole and/or for subsidiaries or business units, which goals are pre-conditions to the earning of an incentive award at the threshold, target, maximum, or other specified level.

The Committee will report on its actions to the Company's Board of Directors (the "Board").  All actions of the Committee concerning the Plan or its administration are subject to the ratification of the Board if requested by the Committee or required by the Board, the Securities and Exchange Commission, applicable law, or by the rules or regulations of the securities exchange on which the Company's shares are listed.

The Plan will be administered by the Committee, which is authorized to interpret the Plan, to establish rules and regulations necessary to administer the Plan, and to take all other actions it determines are required for the proper administration of the Plan.  All actions, determinations, interpretations, and decisions made by the Committee and/or the Board regarding the plan or its administration will be final, conclusive, and binding upon all parties concerned.  No member of the Committee or the Board shall incur any liability by reason of any action or determination made with respect to the Plan.

PARTICIPATION

Employees that may be selected for participation in the Plan in a given calendar year are those in a position to directly and significantly affect revenues, profits or losses, or operating efficiencies of the Company and/or its subsidiaries.  Employees selected for participation ("Participants") will be notified and provided a copy of the performance measures and other criteria for award determination.

Participants may be added to the Plan or removed from the Plan at any time during the calendar year based on participation criteria previously approved by the Committee, by virtue of promotion or new hire following the initial eligibility designation or upon approval of the Committee.  Participation in the Plan during a particular calendar year shall not entitle a Participant to participation in the Plan in future years.

EFFECT OF TERMINATION OF EMPLOYMENT

Upon the termination of a Participant's employment with the Company or its subsidiaries prior to completion of the calendar year, (i) if termination is for reasons other than Retirement, Death or Disability, unless otherwise determined by the Committee, the Participant's award opportunity will be cancelled and the Participant will not be eligible to receive a final incentive award, and (ii) if termination is due to Retirement, Death or Disability, the Participant's award opportunity will remain in effect, subject to the terms of the Plan.  "Retirement" shall mean a Participant's termination from employment with the Company or its subsidiaries, as applicable, if the date of termination occurs on or after age 62 or if the termination is otherwise determined by the Committee to qualify as a Retirement.  "Disability" shall mean termination of a Participant's employment with the Company or its subsidiaries, as applicable, if the Participant is eligible to receive benefits under the Long-Term Disability Program maintained by the Company or its subsidiaries.

DETERMINATION OF INCENTIVE AWARDS

Incentive award opportunities will be based upon Company and subsidiary performance measures as described in the Exhibit attached hereto.  This Plan does not permit the payment of awards to IDACORP/Idaho Power Executives if there is no payment of awards to employees under the IDACORP/Idaho Power Company Employee Incentive Plan.  Similarly, no payment of awards under this Plan will be made to Subsidiary Executives if there is no payment of awards to employees under Subsidiary Employee Incentive Plans.  Award opportunities need not be uniform among Participants and may vary from year to year.  Because payments of dividends to shareholders is an important value to the Company, no awards under the plan will be paid if the operational and/or customer service goals are met at some level but the net income is less than the Board approved dividend for IDACORP Common Stock for 2006.

Within a reasonable time after the end of each calendar year, the Committee shall determine the extent to which the performance goals have been achieved and the payout level of the resulting award that is potentially payable to Participants.  The Committee then shall determine whether such potential award shall be paid out as a final award.  The Committee may adjust any potential award upward or downward, accelerate or defer payment of any final award, or determine to pay no amount as an award, in its sole discretion, in light of such considerations as the Committee may deem relevant. An award shall be deemed earned and vested only at such time as the Committee has determined that the award has become final.

If the amount of an award opportunity that may be earned and become payable will be calculated by multiplying an incentive percentage corresponding to specified levels of performance, that percentage will be multiplied by the base salary paid to a Participant during the Plan year, exclusive of any amounts earned under any incentive, bonus, or benefit plans.

The Committee retains the discretion to authorize an individual performance payout for extraordinary results on the part of a Participant regardless of the level of achievement of the Company performance goal and other performance goals and/or to modify performance goals to take into account extraordinary and unexpected events.

PAYMENT OF AWARD

As promptly as practicable after final awards for a given calendar year have been determined, such awards shall be paid out in cash by the Company to Participants who are active employees (i.e., other than those who have died or terminated due to Retirement or Disability during the calendar year) as of December 31 of the calendar year to which the award relates.  The pay out date for any other Participant entitled to a payout shall be determined by the Committee.

The Company or subsidiary shall deduct from all payments made under the Plan an amount necessary to satisfy federal, state, and or local tax withholding requirements.  Amounts paid under the Plan will be considered in the calculation of benefits under the Idaho Power Company Retirement Plan and the Idaho Power Company Employee Savings Plan for eligible participating employees.

PLAN IS NOT A CONTRACT

No provision of the Plan nor any document describing the Plan or establishing rules or regulations regarding the Plan's administration shall be deemed to confer on any Participant the right to continue in the Company's or subsidiary's employ nor shall any such provision or document affect the right of the Company or any subsidiary to terminate any Participant's employment. 

AMENDMENT AND TERMINATION OF THE PLAN

The Board reserves the right to amend, suspend, or terminate the Plan and any award opportunities under the Plan at any time in whole or in part, for any reason, and without the consent of any Participant or beneficiary.  Company subsidiaries reserve the right to suspend or terminate their participation in the Plan at any time, for any reason, and without the consent of any Participant or beneficiary.

PLAN BINDING ON SUCCESSORS

All obligations of the Company or any subsidiary under the Plan shall be binding on any successor to the Company or any subsidiary, respectively, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, reorganization, or other transaction involving all or substantially all of the business and/or assets of the Company or any subsidiary.

EFFECTIVE DATE

The Plan shall become effective January 1, 2006, and if not terminated by action of the Board of Directors, shall expire December 31, 2006.

EXHIBIT A

IDACORP and Idaho Power Executive Participants 2006 Goals

HOW THE PLAN WORKS

The plan consists of a combination of Operational and Customer Service goals for Idaho Power Company, Net Income targets for Idaho Power Company and Net Income targets for IDACORP.  The intent of the plan is to focus on key areas management can impact while maintaining a means of additional profit sharing should Net Income exceed expected performance.

The weightings for the three areas are as follows:

Operational/Customer Service Goals - 40%

Net Income at Idaho Power Company - 30%

IDACORP Consolidated Net Income - 30%

The total payout will be based on predetermined participation levels approved by the Board of Directors.  The amount of incentive to be awarded each participant will be calculated by multiplying the approved incentive percentage by the combined multiplier times the base salary.

I.          Operational/Customer Service Goals

A.         Customer Satisfaction

The Customer Relationship Index (CRI) details the company's performance through the eyes of the customer and is based on a rolling 4-quarter average for the period beginning January 1, 2006 through December 31, 2006.  The index consists of 5 specific questions asked of our customers by an independent survey company and addresses issues such as overall satisfaction, quality, value, advocacy, and loyalty.  The CRI goal for 2006 is as follows:

Performance Level	CRI Goal	Qualifying Multiplier
Threshold	%	7.5%
Target	%	15%
Maximum	%	30%

B.        Total Operation and Maintenance (O&M) Expense

Operational and strategic goals help management focus on effective use of assets and capital.  The operational target will be to manage to budgeted levels of forecasted amounts.  For 2006 the goal is as follows:

Performance Level	Total O&M Expenditures	Qualifying Multiplier
Threshold		7.5%
Target		15%
Maximum		30%

Total O&M will be non-fuel O&M less two areas of "non-discretionary" expenses.  The two areas of exclusion are pension expense and third party transmission expense.  All other expenses are included in the determination of total O&M.

C.        Network Reliability

This goal will be measured using the number of interruptions greater than 5 minutes in duration experienced by Small and Large General Service Customers (Customers).  In addition to the required performance levels below, this metric contains a hurdle of no more than 10% of Customers subjected to more than 6 interruptions.  If this hurdle is not passed, the payout for the Network Reliability goal will be zero.

Performance Level	Interruptions	Qualifying Multiplier
Threshold		5%
Target		10%
Maximum		20%

II.         Idaho Power Company Net Income

Performance Level	Idaho Power Company Net Income	Qualifying Multiplier
Threshold		15%
Target		30%
Maximum		60%

Net Income is defined as Net Income reported in the audited year-end financial statements.  The target amounts are those amounts reported after considering all applicable incentive amounts.

III.        IDACORP Consolidated Net Income

Because all of the subsidiaries ultimately contribute to the success of IDACORP, if IDACORP Net Income exceeds predetermined rate of return levels, management will be eligible to earn an additional payout as follows:

Performance Level	Consolidated IDACORP Net Income	Qualifying Multiplier
Threshold		15%
Target		30%
Maximum		60%

Consolidated Net Income is defined as Net Income reported in the audited year-end financial statements.  The target amounts are those amounts reported after considering all applicable incentive amounts.

EX-10

Exhibit 10.2

2006 IDACORP, Inc.
Executive Incentive Plan
NEO Award Opportunity Chart
Revised

Name	Title	Threshold ($)	Target ($)	Maximum ($)
Jan B. Packwood	President and Chief Executive Officer, IDACORP	162,500	325,000	650,000
J. LaMont Keen	Executive Vice President, IDACORP and President and Chief Executive Officer, Idaho Power	94,500	189,000	378,000
Darrel T. Anderson	Senior Vice President - Administrative Services and Chief Financial Officer, IDACORP and Idaho Power	49,000	98,000	196,000
James C. Miller	Senior Vice President of Power Supply, Idaho Power	49,000	98,000	196,000
Thomas R. Saldin	Senior Vice President, General Counsel and Secretary, IDACORP and Idaho Power	46,375	92,750	185,500

EX-10

Exhibit 10.3

Idaho Power Company
1994 Restricted Stock Plan
Form of Restricted Stock Agreement (time vesting)

IDACORP, Inc.

IDAHO POWER COMPANY 1994 RESTRICTED STOCK PLAN

(DATES) PERIOD OF RESTRICTION

RESTRICTED STOCK AGREEMENT

(Date)

(Name)
(Address)

In accordance with the terms of the Idaho Power Company 1994 Restricted Stock Plan (the "Plan"), pursuant to action of the Compensation Committee (the "Committee") of the Board of Directors, IDACORP, Inc. (the "Company") hereby grants to you (the "Participant"), subject to the terms and conditions set forth in this Restricted Stock Agreement (including Annex A hereto and all documents incorporated herein by reference), an award of restricted shares of Company common stock (the "Restricted Stock"), as set forth below:

Date of Grant:
Number of Shares of Restricted Stock:
Restricted Period:	Date of Grant through ________________
Performance Goal:	N/A
Vesting Schedule:	All of the Shares of Restricted Stock subject to this Award shall vest on ___________ if the Participant remains employed through the Restricted Period.

THESE SHARES OF RESTRICTED STOCK ARE SUBJECT TO FORFEITURE AS PROVIDED IN ANNEX A AND THE PLAN.

Further terms and conditions of the Award are set forth in Annex A hereto, which is an integral part of this Restricted Stock Agreement.

All terms, provisions and conditions applicable to the Award set forth in the Plan and not set forth herein are hereby incorporated by reference herein.  To the extent any provision hereof is inconsistent with the Plan, the Plan will govern.  The Participant hereby acknowledges receipt of a copy of this Restricted Stock Agreement including Annex A hereto and a copy of the Plan and agrees to be bound by all the terms and provisions hereof and thereof.

IDACORP, Inc.

By:______________________________

Agreed:

___________________________

Attachment:  Annex A

ANNEX A

TO

IDAHO POWER COMPANY

1994 RESTRICTED STOCK PLAN

RESTRICTED STOCK AGREEMENT

            It is understood and agreed that the Award of Restricted Stock evidenced by the Restricted Stock Agreement to which this is annexed is subject to the following additional terms and conditions:

1.         Forfeiture and Transfer Restrictions.

A.        Forfeiture Restrictions.  Except as provided otherwise in Section 2 of this Annex A, if the Participant's employment is terminated during the Restricted Period, the Shares of Restricted Stock subject to this Award shall be forfeited as of the date of termination.

B.         Transfer Restrictions. The Restricted Stock may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated during the Restricted Period.

2.         Termination of Employment.  If the Participant's employment is terminated during the Restricted Period (i) due to the Participant's death or disability or (ii) due to the Participant's Retirement, the Restricted Stock shall vest on the date of such termination of employment with respect to a prorated number of Shares of Restricted Stock determined by multiplying the total number of Shares subject to this Award times a fraction, the numerator of which is the number of whole months having elapsed during the Restricted Period as of the date of such termination of employment and the denominator of which is the total number of whole months in the Restricted Period.  For purposes of this Section 2, determination of whether a Participant's employment is terminated due to the Participant's Retirement shall be made in the sole discretion of the Committee and the Committee's determination shall be final.

            Retirement means a Participant's termination from employment with the Company or a Subsidiary at the Participant's Early or Normal Retirement Date, as applicable.

A.        Early Retirement Date - shall mean the date on which a Participant terminates employment, if such termination date occurs on or after Participant's attainment of age fifty-five (55) but prior to Participant Normal Retirement Date.

B.         Normal Retirement Date - shall mean the date on which the Participant terminates employment, if such termination date occurs on or after the Participant attains age sixty-two (62).

3.         Vesting of Restricted Stock. Except as provided otherwise in Section 3.2 of the Plan and Sections 1 or 2 of this Annex A, the Restricted Stock shall vest in accordance with the Vesting Schedule set forth in the Restricted Stock Agreement.  Any Shares that do not vest shall be forfeited.

4.         Voting Rights, Dividends and Custody.  The Participant shall be entitled to vote and receive regular cash dividends paid with respect to the Shares subject to this Award during the Restricted Period; provided, however, that in no event shall the Participant vote or receive dividends paid with respect to any forfeited Shares on or after the date of forfeiture.  The Shares subject to this Award shall be registered in the name of the Participant and held in the Company's custody during the Restricted Period.

5.         Tax Withholding. The Company may make such provisions as are necessary for the withholding of all applicable taxes on the Restricted Stock, in accordance with Section 5.3 of the Plan.  With respect to the minimum statutory tax withholding required with respect to the Restricted Stock, the Participant may elect to satisfy such withholding requirement by having the Company withhold Shares from this Award.

6.         Ratification of Actions.  By accepting this Award or other benefit under the Plan, the Participant and each person claiming under or through him shall be conclusively deemed to have indicated the Participant's acceptance and ratification of, and consent to, any action taken under the Plan or the Award by IDACORP, Inc.

7.         Notices.  Any notice hereunder to IDACORP, Inc. shall be addressed to its office at 1221 West Idaho Street, Boise, Idaho 83702; Attention: Manager of Compensation, and any notice hereunder to the Participant shall be addressed to him or her at the address specified on the Restricted Stock Agreement, subject to the right of either party to designate at any time hereafter in writing some other address.

8.         Definitions.  Capitalized terms not otherwise defined herein shall have the meanings given them in the Plan.

9.         Governing Law and Severability.  To the extent not preempted by Federal law, the Restricted Stock Agreement will be governed by and construed in accordance with the laws of the State of Idaho, without regard to conflicts of law provisions.  In the event any provision of the Restricted Stock Agreement shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Restricted Stock Agreement, and the Restricted Stock Agreement shall be construed and enforced as if the illegal or invalid provision had not been included.

EX-10

Exhibit 10.4

Idaho Power Company
1994 Restricted Stock Plan
Restricted Stock Awards (time vesting) to NEOs Chart

Name	Title	Grant
Jan B. Packwood	President and Chief Executive Officer, IDACORP	9,463 Shares
J. LaMont Keen	Executive Vice President, IDACORP and President and Chief Executive Officer, Idaho Power	4,973 Shares
Darrel T. Anderson	Senior Vice President - Administrative Services and Chief Financial Officer, IDACORP and Idaho Power	1,812 Shares
James C. Miller	Senior Vice President of Power Supply, Idaho Power	1,812 Shares
Thomas R. Saldin	Senior Vice President, General Counsel and Secretary, IDACORP and Idaho Power	1,715 Shares

EX-99

IDACORP

1221 W. Idaho Street

Boise, ID  83702

February 9, 2006

FOR IMMEDIATE RELEASE

Lawrence F. Spencer, Director of Investor Relations

Phone:  (208) 388-2664

lspencer@idacorpinc.com

IDACORP Announces Fourth Quarter and 2005 Results

2005 Year-End Highlights

2005 net income of $63.7 million or $1.50 per diluted share versus $73.0 million or $1.90 per share in 2004

Utility operating income increases from $109.0 million in 2004 to $151.7 million in 2005

Record growth in customers of approximately 17,000

4^th Quarter Highlights

2005 earnings per diluted share of $0.18 versus $0.37 in 2004

Utility operating income increases 8.2 percent over 2004 levels to $31.8 million

General rate case filed in October

Goodwill write-off at IDACOMM of $10 million or $0.24 per share

Progress made in settling California refund proceeding

BOISE--IDACORP, Inc. (NYSE:IDA) today reported 2005 net income of $63.7

million ($1.50 per diluted share) as compared with $73.0 million ($1.90 per share) in 2004.  Idaho Power Company, IDACORP's principal operating subsidiary, reported earnings per diluted share of $1.70 in 2005 as compared with $1.71 in 2004.  Operating income at Idaho Power Company increased 39.1 percent over 2004 levels to $151.7 million.

            "The increase in our operating income at Idaho Power Company over 2004 is indicative of our success in executing our strategy within the core business.  Continued strong customer growth combined with timely recovery of our investments in utility infrastructure lifted operating income over 2004 levels," said IDACORP President and Chief Executive Officer Jan B. Packwood.    "The current stream flow forecast indicates better operating conditions in 2006 that should provide the opportunity for further improvement if we are successful in obtaining a favorable resolution to our current Idaho rate case."

2005 Full Year Performance Summary

The key components of the change in annual IDACORP net income are: 

Idaho Power's earnings increased to $72 million, a $6 million increase over last year.  This increase resulted primarily from improved operating margins resulting from the implementation of general rate increases in June of both years.  Idaho Power set another record for annual general business customer growth with a gain of 16,737 customers to 457,146.  This represents a 3.8 percent increase year-over-year.

IDACOMM lost $13 million in 2005 compared to $2 million in 2004. In the fourth quarter of 2005, IDACOMM recorded a $10 million goodwill impairment, which resulted principally from a revision to the company's business strategy and decision to phase out the broadband-over-powerline portion of its business.

Net loss at IdaTech increased $3 million, as that subsidiary continues in its product development phase. The increase results from a $3 million reduction in sales of products in development, and a $2 million increase in product development costs. 

Earnings at IDACORP Energy increased from $2 million to $5 million, due primarily to a reduction in the allowance for uncollectible accounts due from California parties in the California refund proceeding.  IDACORP Energy is in settlement negotiations with several parties related to legal actions surrounding transactions in the California markets in 2000 and 2001.  If the settlement agreement is finalized as currently contemplated and is subsequently approved by the Federal Regulatory Energy Commission, IDACORP Energy's required reserve would be reduced.  Based upon management's assessment, the allowance account was reduced by $9.5 million in the fourth quarter of 2005.  In 2004, IDACORP Energy recorded $4 million of gains on settlements of legal disputes. 

In 2005, IDACORP Financial contributed $2 million less to earnings than in the prior year.  In 2004, IDACORP Financial recorded a $2 million gain on the sale of its investment in the El Cortez Hotel in San Diego, California.

Per share amounts in 2005 were also affected by the issuance of approximately four million shares of common stock in December 2004. 

Fourth Quarter Performance Summary

The key components of the change in fourth quarter IDACORP net income are: 

Idaho Power's fourth quarter earnings increased from $14.6 million in 2004 to $16.5 million in 2005 reflecting the June 2005 rate increase along with customer growth.  The fourth quarter 2004 results of $0.37 per share included the benefits received from the irrigation load reduction program resolution of $13.6 million or $0.21 per share. 

Earnings in the fourth quarter were lower primarily due to recording $10 million ($0.24 per diluted share) of goodwill impairment at IDACOMM, partially offset by a reduction in IDACORP Energy's allowance for bad debts of $9.5 million ($0.13 per diluted share after tax).

Holding company results in the fourth quarter 2005 reflect the reversal of intraperiod tax allocations from the first nine months of the year, in accordance with interim reporting requirements.

Fourth quarter earnings per share amounts in 2005 were also affected by the issuance of approximately four million shares of common stock in December 2004. 

Analysis of Earnings Per Share

The following table summarizes earnings (loss) per diluted share from each

business:

	Three Months Ended		Year-To-Date
Subsidiary	12/31/05	12/31/04	12/31/05	12/31/04
Idaho Power Company	$     0.39	$     0.37	$   1.70	$     1.71
IDACORP Energy	0.13	-	0.12	0.06
IDACORP Financial Services	0.07	0.09	0.26	0.35
Ida-West Energy	0.02	-	0.06	0.08
IdaTech	(0.05)	(0.04)	(0.21)	(0.15)
IDACOMM	(0.28)	(0.03)	(0.31)	(0.05)
Holding Company	(0.10)	(0.02)	(0.12)	(0.10)
	$           0.18	$        0.37	$       1.50	$      1.90

            The following table summarizes the effect of certain items on earnings per diluted share:

	Three Months Ended		Year-To-Date
	12/31/05	12/31/04	12/31/05	12/31/04
Idaho Power Company
Irrigation Load Reduction		$     0.21		$     0.21
Reverse regulatory tax liability				0.43
General rate case settlement				(0.31)
Financing costs - preferred stock				(0.05)
Disallowed Rate Case Costs				(0.14)
IDACORP Financial Services
Sale of El Cortez				0.05
IDACORP Energy
Settlement of legal matters				0.08
Reduction in Allowance for Bad    Debt	$0.13		$0.13
Ida-West Energy
Debt Restructure				0.06
IDACOMM
Goodwill Impairment Charge	(0.24)		(0.24)

2006 Outlook

            The February 7, 2006 hydrological survey shows Snake River Basin snow pack levels at 135 percent of average.  The Northwest River Forecast Center (NWRFC) currently projects 8.0 million acre-feet (maf) of water will flow into Brownlee Reservoir during the April-through-July 2006 period.  The NWRFC's 30-year average measured inflow into Brownlee is 6.3 maf during the period.  In 2005, April-July inflows were 3.6 maf.

            Through January 2006, heating degree days were nearly 20 percent less than normal and more than 11 percent less than last January. 

Projected Key Operating & Financial Metrics - 2006

            The projected key operating and financial metrics for 2006 are:

Metric	Current Estimate (*)
Idaho Power Company Operation & Maintenance Expense (Millions)	$250-$260
Idaho Power Company Capital Expenditures (Millions)	$190-$200
Idaho Power Company Hydroelectric Generation (Million MWh)	8.5-10.5
Non-regulated Subsidiary Earnings Per Share from Continuing Operations	$(0.05)-$0.00
Effective Tax Rates:       Idaho Power Company       Consolidated - IDACORP	38%-42% 20%-25%

            (*)  Key operating and financial metrics will be updated quarterly.

Recent Events

            In October 2005, Idaho Power filed with the Idaho Commission for an additional $44.0 million in annual revenue or an overall average increase of 7.8 percent to base rates.  Key dates in the general rate case over the next few months are:
                                               

DATE	ACTION
February 7, 14 and 16	Settlement Conferences for the parties
March 3	Staff and Intervenor prefile testimony
April 10 - 13	Technical Hearing in Boise
May 24	Commission Order anticipated

            During the fourth quarter of 2005, Idaho Power sold 69,500 excess sulfur dioxide (SO₂) emission allowances (out of a total of approximately 107,000 excess allowances) on the open market for approximately $71 million.  Subsequently, Idaho Power sold an additional 5,000 emission allowances for approximately $7.5 million.  Idaho Power now is seeking an order from the Idaho Public Utilities Commission to determine the accounting treatment for these transactions and the allocation of proceeds between retail customers and shareholders.

Direct LINK Launch

IDACORP news and information can now be sent directly to your e-mail inbox.  To register for this service, go to the "Newsroom" area of the company's Web site (http:www.idacorpinc.com) and select "Direct LINK Sign Up" from the menu at the far left of the page.

Web Cast / Conference Call

The company will hold an analyst conference call today at 2:30 p.m. Mountain

Time (4:30 p.m. Eastern Time).  All parties interested in listening may do so through a live Web cast.  Details of the conference call logistics are posted on the company's Web site (http:www.idacorpinc.com).  A replay of the conference call will be available on the company's Web site for a period of twelve months.  IDACORP and Idaho Power expect to file their combined Annual Report on Form 10-K with the Securities and Exchange Commission on March 7.

Background Information / Safe Harbor Statement

Boise, Idaho-based IDACORP, formed in 1998, is a holding company comprised of Idaho Power

Company, a regulated electric utility; IDACORP Financial, a holder of affordable housing projects and other real estate investments; IdaTech, a developer of integrated fuel cell systems; IDACOMM, a provider of telecommunication services and commercial Internet services; and Ida-West Energy, an operator of small hydroelectric generation projects that satisfy the requirements of the Public Utility Regulatory Policies Act of 1978. 

Certain statements contained in this news release, including statements with respect to future

earnings, ongoing operations, and financial conditions, are "forward-looking statements" within the meaning of federal securities laws.  Although IDACORP and Idaho Power believe 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.  Factors that could cause actual results to differ materially from the forward-looking statements include:  changes in governmental policies, including new interpretations of existing policies, and regulatory actions, and regulatory audits, including those of the Federal Energy Regulatory Commission, the Idaho Public Utilities Commission, the Oregon Public Utility Commission and the Internal Revenue Service with respect to allowed rates of return, industry and rate structure, day-to-day business operations, acquisition and disposal of assets and facilities, operation and construction of plant facilities, relicensing of hydroelectric projects, recovery of purchased power expenses, recovery of other capital investments, present or prospective wholesale and retail competition (including but not limited to retail wheeling and transmission costs) and other refund proceedings; changes arising from the recently enacted Energy Policy Act of 2005; litigation and regulatory proceedings, including those resulting from the energy situation in the western United States, and settlements that influence business and profitability; changes in and compliance with environmental, endangered species and safety laws and policies; weather variations affecting hydroelectric generating conditions and customer energy usage; over-appropriation of surface and groundwater in the Snake River Basin resulting in reduced generation at hydroelectric facilities; construction of power generating facilities including inability to obtain required governmental permits and approvals, and risks related to contracting, construction and start-up; operation of power generating facilities including breakdown or failure of equipment, performance below expected levels, competition, fuel supply, including availability, transportation and prices, and transmission; impacts from the potential formation of a regional transmission organization; population growth rates and demographic patterns; market demand and prices for energy, including structural market changes; changes in operating expenses and capital expenditures and fluctuations in sources and uses of cash; results of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by factors such as credit ratings and general economic conditions; actions by credit rating agencies, including changes in rating criteria and new interpretations of existing criteria; homeland security, natural disasters, acts of war or terrorism; market conditions and technological developments that could affect the operations and prospects of IDACORP's subsidiaries or their competitors; increasing health care costs and the resulting effect on health insurance premiums paid for employees; performance of the stock market and the changing interest rate environment, which affect the amount of required contributions to pension plans, as well as the reported costs of providing pension and other postretirement benefits; increasing costs of insurance, changes in coverage terms and the ability to obtain insurance; changes in tax rates or policies, interest rates or rates of inflation; adoption of or changes in critical accounting policies or estimates; and new accounting or Securities and Exchange Commission requirements, or new interpretation or application of existing requirements.  Any forward-looking statement speaks only as of the date on which such statement is made.  New factors emerge from time to time and it is not possible for management to predict all such factors, nor can it assess the impact of any such factor on the business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. 

IDACORP, Inc.

Condensed Consolidated Statements of Income

For Periods Ended December 31, 2005 and 2004

(unaudited)

 (Thousands of Dollars, except per share amounts)

                                                                   Three Months Ended                      Year-To-Date        

                                                                 12/31/05         12/31/04            12/31/05        12/31/04

Operating Revenues:

  Electric Utility:

     General business.............................    $     163,081   $     144,686      $     667,270   $     635,835                     Off-system sales        37,605..........................................    21,249           142,794             121,148

     Other revenues.................................              4,146           24,334              27,619           62,526

        Total electric utility revenues...........           204,832          190,269             837,683          819,509

  Other..................................................              5,817             6,516              21,805           21,554

        Total Operating Revenues...............           210,649          196,785             859,488          841,063

Operating Expenses:

  Electric Utility:

     Purchased power..............................            59,907           32,765             222,310          195,642

     Fuel expense...................................            25,680           25,898             103,164          103,261

     Power cost adjustment.....................             (1,322)            8,746               (2,995)          39,184

     Other operations & maintenance........            58,353           64,575             241,209          252,318

     Depreciation.....................................            25,252           25,395             101,485          101,015

     Taxes other than income taxes..........              5,212             3,554              20,856           19,090

        Total electric utility expenses.........           173,082          160,933             686,029          710,510

  Other:

     Expense..........................................              1,703           13,081              35,440           37,341

     Goodwill Impairment.........................              9,969                    -              10,270                    -

        Total Operating Expenses..............           184,754          174,014             731,739          747,851

Operating Income (Loss):

  Electric Utility.....................................            31,750           29,336             151,654          108,999

  Other..................................................             (5,855)          (6,565)             (23,905)         (15,787)

        Total Operating Income..................            25,895           22,771             127,749           93,212

Other Income......................................              4,376             5,736              17,722           29,205

Earnings (Loss) of Unconsolidated

  Equity-Method Investments...............             (1,297)          (1,869)                  (713)            1,050

Other Expense....................................              2,095             2,515                8,006           12,115

Interest Expense and Preferred Dividends:

  Interest on long-term debt.....................            14,246           14,309              56,930           54,937

  Other interest......................................              1,362                739                3,241             3,379

  Preferred dividends of Idaho Power .......                     -                    -                       -             4,823

        Total Interest and

        Preferred Dividends........................            15,608           15,048              60,171           63,139

Income Before Income Taxes.................            11,271             9,075              76,581           48,213

Income Tax Expense (Benefit)................              3,744           (5,191)              12,920          (24,770)

Net Income ..........................................    $        7,527   $       14,266      $       63,661   $       72,983

Weighted Average Common Shares

  Outstanding (000's)............................            42,374           38,863              42,279           38,361

Earnings per Share of Common Stock

Basic.................................................    $          0.18         $                 0.37          $      1.51       $                     1.90

Diluted................................................    $          0.18         $                 0.37          $      1.50       $                     1.90

Dividends Paid per Share of Common

  Stock.................................................    $          0.30         $                 0.30          $      1.20       $                     1.20

IDACORP, Inc.

Condensed Consolidated Statements of Cash Flows

For Twelve Months Ended December 31, 2005 and 2004

Summary Financial Information

(unaudited)

(Thousands of Dollars)

                                                                                                    Twelve Months Ended      

                                                                                               12/31/2005         12/31/2004

Operating Activities

  Net Income.................................................................         $        63,661        $        72,983

  Adjustments to reconcile net income to

     net cash provided by operating activities:

        Impairment of assets.............................................                           -                   9,075

        Unrealized losses from energy marketing activities...                         17                      131

        Depreciation and amortization.................................                 124,124                124,192

        Deferred taxes and investment tax credits................                 (31,769)               (33,912)

        Changes in regulatory assets.................................                    7,275                 16,788

        Gain on sale of assets...........................................                   (2,128)                 (4,475)

        Gain on extinguishment of debt...............................                           -                  (7,188)

        Undistributed (earnings) losses of subsidiaries.........                 (16,762)                  2,495

        Goodwill impairment..............................................                  10,270                          -

  Change in:

           Receivables and prepayments.............................                 (17,165)                 (1,442)

           Accounts payable and other accrued liabilities......                       883                 15,806

           Taxes receivable/accrued....................................                  26,412                      717

           Other.................................................................                    (4,260)                    (474)

        Net cash provided by operating activities..................                 160,558                194,696

Investing Activities

  Additions to property, plant and equipment....................                (195,537)              (199,770)

  Sale of emission allowances.........................................                  70,757                          -

  Other..........................................................................                   36,768                 (29,870)

        Net cash used in investing activities........................                  (88,012)              (229,640)

Financing Activities

  Issuance of long-term debt...........................................                  64,992                106,442

  Issuance of common stock...........................................                    6,296                115,690

  Retirement of long-term debt.........................................                 (83,067)               (79,890)

  Retirement of preferred stock of IPC..............................                           -                (52,351)

  Dividends on common stock.........................................                 (50,690)               (45,838)

  Increase (decrease) in short-term borrowings.................                  23,830                (58,250)

  Other..........................................................................                    (4,954)                  (2,615)

        Net cash used in financing activities........................                  (43,593)                (16,812)

  Net increase (decrease) in cash and cash equivalents....                  28,953                (51,756)

  Cash and cash equivalents - beginning of period.............                   23,403                  75,159

  Cash and cash equivalents - end of period.....................         $        52,356        $        23,403

IDACORP, Inc.

Condensed Consolidated Balance Sheets

As of December 31, 2005 and 2004

Summary Financial Information

(unaudited)

(Thousands of Dollars)

                                                                                          12/31/05                  12/31/04

Assets

  Cash and cash equivalents..................................          $          52,356         $          23,403

  Receivables, net of allowance..............................                     87,030                    57,956

  Employee notes.................................................                       2,951                      3,523

  Energy marketing assets....................................                     23,859                      9,203

  Other current assets...........................................                    131,324                   127,331

     Total current assets.........................................                    297,520                   221,416

  Investments.......................................................                    191,623                   223,061

  Property, plant and equipment-net........................                 2,314,259                2,209,462

  Energy marketing assets - long-term....................                     22,189                    16,635

  Regulatory assets..............................................                    415,177                   433,271

  Employee notes - long-term................................                       2,862                      3,746

  Other assets......................................................                    120,496                   126,581

     Total other assets............................................                    560,724                   580,233

        Total Assets................................................          $     3,364,126        $     3,234,172

Liabilities and Shareholders' Equity

  Current maturities of long-term debt......................          $          16,307         $          78,603

  Notes payable....................................................                     60,100                    36,270

  Accounts payable...............................................                     83,744                    79,156

  Energy marketing liabilities..................................                     24,093                      9,420

  Other current liabilities........................................                    109,341                    82,009

     Total current liabilities......................................                    293,585                   285,458

  Deferred income taxes........................................                    521,855                   555,774

  Energy marketing liabilities - long-term.................                     22,189                    16,635

  Regulatory liabilities............................................                    345,109                   275,854

  Other liabilities...................................................                    132,557                   112,616

     Total other liabilities.........................................                 1,021,710                   960,879

  Long-term debt...................................................                 1,023,580                   979,549

  Shareholders' equity...........................................                 1,025,251                1,008,286

          Total Liabilities & Shareholders' Equity...........          $     3,364,126         $     3,234,172

Idaho Power Company Supplemental Operating Statistics

                                                              Three Months Ended                  Year-To-Date      

                                                              12/31/05        12/31/04         12/31/05       12/31/04  

Energy Use - MWh

   Residential..................................        1,336,060       1,255,532       4,760,275       4,580,337

   Commercial.................................           919,701          905,964       3,638,694       3,560,911

   Industrial.....................................           874,799          859,407       3,422,616       3,334,955

   Irrigation......................................            81,710           81,433       1,467,227       1,763,387

   Total General Business................        3,212,270       3,102,336     13,288,812     13,239,590

   Off-System Sales.........................           504,803          446,024       2,773,852       2,885,350

      Total........................................        3,717,073       3,548,360     16,062,664     16,124,940

Revenue ($000's)

   Residential..................................    $       83,981   $       74,436     $   299,488   $     274,313

   Commercial.................................            43,722           39,924          173,268          164,053

   Industrial.....................................            31,366           27,522          118,259          111,797

   Irrigation......................................              4,012             2,804            76,255           85,672

   Total General Business................           163,081          144,686          667,270          635,835

   Off-System Sales.........................            37,605           21,249          142,794          121,148

      Total........................................    $     200,686   $     165,935     $   810,064   $     756,983

Customers - - Period End

   Residential..................................           380,952          366,218

   Commercial.................................            58,087           56,274

   Industrial.....................................                 132                126

   Irrigation......................................            17,975           17,791

      Total........................................           457,146          440,409