IDACORP Announces First Quarter 2001 Earnings

The decline in earnings over the first quarter of 2000 is primarily attributable to increases in net power supply costs at the Company's regulated electric utility, Idaho Power. "Even though our Power Cost Adjustment (PCA) rate mechanism mitigates much of the extraordinary power supply costs, the portion of the costs the Company must absorb has a significant impact on earnings", said President and Chief Executive Officer Jan B. Packwood.

Idaho Power's regulated operations contributed $0.37 per share from its operations to IDACORP's overall first quarter 2001 earnings per share, a decrease of $0.36 per share compared to the same period in 2000. Income from operations for the utility was $32.7 million in the first quarter, down $23.3 million from last year's first quarter.

General business revenues were up $9.9 million for the quarter when compared to a year earlier. This growth can be attributed to increases in average retail rates pursuant to the PCA mechanism, an increase in the number of general business customers, and colder-than-normal weather. Off-system sales, which are a component of net power supply costs included in the PCA, increased due to greater wholesale prices even though volumes were down. Idaho Power added 2,103 general business customers during the first quarter 2001. As of March 31, Idaho Power had 395,934 general business customers.

First quarter power supply expenses increased $51.5 million or 126 percent over first quarter 2000 amounts due to a combination of decreased hydro generation and increases in purchased power expenses. The portion of net power supply costs (including power supply expenses net of off-system sales) absorbed by the Company and not recovered under the PCA mechanism increased by approximately $22.5 million or $0.36 cents per share.

Hydro generation on Idaho Power's system decreased 47 percent or 1.3 million megawatt-hours in the first quarter 2001 because of below normal streamflows. Idaho Power had to supplement the shortfall by acquiring energy in the market.

"The projected runoff into Brownlee Reservoir during the critical April to July period is 2.2 million acre-feet, just 43 percent of normal inflows," said Packwood. "We have implemented several demand and supply side programs and anticipate that these will serve to increase energy supply and reduce customer demand during this abnormally dry year."

Utility operating expenses for the quarter increased $5.8 million due to $2.7 million increase in maintenance expenses, primarily at the Company's thermal and distribution operations, and increases in customer care related expenses of $2.2 million.

In addition to utility activities, other business unit contributions to overall earnings for the quarter were:

• Energy marketing contributed $0.62 per share to IDACORP's overall earnings as compared to $0.15 per share in 2000. The increase reflects the expansion of the marketing activities in terms of both volume and geographic reach. Power marketing volume increased by 39 percent over the prior year, primarily attributable to expansion into markets in Canada as well as in the midwestern and southwestern United States. Energy marketing is now doing business in twenty states and two Canadian provinces. The earnings also include the impact of increasing by approximately $20 million the reserve for losses related to exposure to California trading activities in 2000.
• Ida-West Energy contributed 1 cent per share to IDACORP's earnings total compared to 25 cents last year. That included a 22 cent gain on the sale of the Hermiston Power Project.
• IDACORP Financial Services reported earnings of 3 cents per share, which is comparable to last year's earnings contribution.

In March of 2001 Idaho Power Company issued $120 million of 10-year secured medium term notes at 6.6%.

Boise, Idaho-based IDACORP, formed in 1998, is the holding company over the regulated electric utility, Idaho Power, and the non-regulated activities of Ida-West Energy, its independent power project management and development arm; IDACORP Energy, a marketer of energy and energy related products and services; IDACORP Services, a marketer of products and services to residential and business customers; IDACORP Financial, which makes non-utility 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 Form 10-K for the year 2000 and other reports on file with the Securities and Exchange Commission.