IDACORP Announces Second Quarter 2001 Earnings

"IDACORP's wholesale energy business, IDACORP Energy, continues to generate outstanding results," said IDACORP President and CEO Jan Packwood. "Transaction and volume growth from this business segment continues to fuel increased profitability."

IDACORP also recently announced changes in its fuel cell business segment, IdaTech. Claude H. Duss, former Honeywell International executive, was named President and Chief Executive Officer of IdaTech. He is expected to help move IdaTech from the development stage to the commercialization stage.

"Claude's leadership and expertise will help lead IdaTech into a new era of energy technology," says Packwood. "IdaTech's goal is to bring our fuel cell system to market in late 2002."

Based on the results of the first six months, the Company now anticipates 2001 earnings per share in the range of $2.90 to $3.10.

IDACORP Energy
The strong financial performance of IDACORP Energy continues to lead the Company's earnings growth in 2001. IDACORP Energy contributed $0.83 per share to IDACORP's overall second quarter earnings as compared to $0.46 per share for the corresponding quarter in 2000. Year-to-date the contribution was $1.44 per share, compared to $0.60 per share for 2000. Second quarter 2001 power marketing volumes increased by 27 percent over the same period last year.

Idaho Power Company
Idaho Power Company's continuing operations contributed $0.16 per share to overall second quarter earnings and $0.53 year-to-date, compared to $0.40 per share and $1.13 per share for the same periods in 2000. The decrease is primarily a result of drought-related increases in power supply expenses.

Those expenses in the second quarter increased $23.9 million or 24 percent over second quarter 2000 amounts due to decreased hydro generation from severe drought conditions and the high price of power purchased from the western United States energy market. Year-to-date, power supply expenses increased $75.4 million over last year. The portion of year-to-date net power supply costs (including power supply expenses net of off-system sales) absorbed by the Company and not recovered under the Idaho PCA and Oregon Excess Power Cost mechanisms increased by approximately $37.2 million or $0.60 per share. During the second quarter 2001, the Company absorbed $14.7 million or $0.24 per share more than the second quarter last year.

"The projected runoff into Brownlee Reservoir during the critical April to July period is 2.4 million acre-feet, only 47 percent of normal inflows," said Packwood. "Our system resource mix this year is now expected to be close to 35 percent hydro, 48 percent thermal and 17 percent purchased power. Normally, this is about 60 percent hydro, 30 percent thermal and 10 percent purchased power."

Idaho Power added 1,676 general business customers during the second quarter 2001 and 3,779 additional customers year-to-date. As of June 30, Idaho Power had 397,610 general business customers and expects to surpass 400,000 by year-end.

IDA-WEST Energy
Ida-West Energy contributed 4 cents per share for the second quarter, an increase of 1 cent per share over last year's second quarter. Year-to-date earnings per share are 23 cents less than last year's comparable period because, as stated earlier, the prior period included a 22 cent one-time gain from the sale of the Hermiston Power Project.

Ida-West has procured the gas turbine for its 250 MW Garnet Energy Facility to be located in southwestern Idaho. The staff of the Idaho Department of Environmental Quality recently recommended that the facility receive a permit to build, concluding that it will not harm air quality. Ida-West plans to begin construction of the facility by mid 2002, with commercial operation expected to start in mid 2004.

Other Subsidiaries
IDACORP Financial added three cents per share for the second quarter 2001, the same as last year's second quarter. For the six months ended June 30, 2001 the earnings per share contribution was seven cents, one cent per share greater that the comparable period last year.

IDACORP continues to invest in the future of power technology and communications through its subsidiaries IdaTech and IDACOMM. These entities combined with IDACORP Services and IDACORP's other business activities recorded a loss of 10 cents per share on the quarter compared with losing six cents per share in the second quarter last year. Year-to-date the results were an 19 cent per share loss this year as compared to a eight cent per share loss last year.

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, the Quarterly Report on Form 10-Q for the quarter ended March 31, 2001 and other reports on file with the Securities and Exchange Commission.

(1) Effective June 11, 2001 the energy marketing operation of Idaho Power Company
was moved into the subsidiary IDACORP Energy.