IDACORP’s Energy Marketing Drives Third Quarter Earnings

Year-to-date earnings per share were $2.80 or 29 cents per share less than last year's results of $3.09. Excluding unusual items, year-to-date earnings were $2.98 this year compared to $2.87 in 2000. The 2001 results include an $11.4 million (18 cents per share) write-off of disallowed power supply costs while the 2000 results include a one-time gain from the sale of the Hermiston Power Project of approximately $14 million or 22 cents per share. IDACORP's year-to-date net income was $104.8 million for 2001 and $116.2 million for 2000.

"From a corporate earnings viewpoint, 2001 shows the wisdom of our diversification strategy," said IDACORP President and CEO Jan Packwood. "The results from our regulated utility, Idaho Power, have suffered because of severe drought and the power supply cost write-off. Fortunately, the decline in regulated earnings has been offset by our non-regulated businesses, primarily IDACORP Energy."

Based on the results of the first nine months, the Company is now increasing its 2001 earnings per share target to the range of $3.20 to $3.30.

IDACORP Energy
IDACORP Energy supplied 93 cents per share to IDACORP's third quarter earnings as compared to 69 cents per share in the third quarter 2000. Year-to-date, the contribution is $2.38 per share, compared to $1.29 per share for 2000. This strong performance was driven by growth in volumes, transactions, and risk management activities. Total volume of settled power transactions increased 63 percent to 11.4 million megawatt-hours (MWh) in 2001's third quarter, compared to 7 million MWh during the same period in 2000. IDACORP Energy conducts business in 31 states and two Canadian provinces.

Idaho Power Company
Idaho Power's earnings per share were breakeven for the quarter compared to 43 cents per share in last year's third quarter. This decrease is primarily a result of the write-off of amounts disallowed in the Company's recent PCA (Power Cost Adjustment) rate case of 18 cents per share and increases in power supply expenses absorbed by the Company of 23 cents per share.

For the first nine months of this year, Idaho Power earnings were 52 cents per share, compared to $1.57 during the same period in 2000. Of the $1.05 decrease from the prior period, 82 cents per share is attributable to increases in power supply expenses absorbed by the Company and 18 cents per share is due to the write-off of amounts disallowed in the Company's recent PCA rate case.

For the third quarter, general business revenues were up $27.2 million while year-to-date general business revenues increased $54.2 million. The primary driver of the increase in revenues was the May 1 PCA rate increase combined with consistent customer growth. The revenue increases were dampened by load reduction programs and price elasticity impacts. Load reduction programs and price elasticity impacts combined to reduce revenues over the prior periods by $20 and $29 million for the quarter and year-to-date periods respectively.

Power supply expenses in the third quarter increased $79.2 million or 67 percent over third quarter 2000 amounts due to the severe drought conditions' negative effect on hydroelectric generation. Year-to-date power supply expenses increased $154.6 million over last year. Idaho Power absorbs a portion of net power supply costs each period for amounts not recovered under the Idaho PCA and the recently implemented Oregon Excess Power Cost mechanisms. During the third quarter 2001, Idaho Power absorbed $28.9 million or 46 cents per share, an increase of $14.2 million or 23 cents per share over the third quarter last year. Year-to-date Idaho Power has absorbed $68.1 million or $1.09 per share, an increase of $51.4 million or 82 cents per share compared to the same period last year.

On Sept. 27, the Idaho Public Utilities Commission (IPUC) authorized Idaho Power to recover $47.7 million out of a total $59.1 million of PCA-related costs through an annual rate increase effective Oct. 1. This ruling along with amounts authorized in May 2001 combined to recover $216 million of the $227.4 million originally requested. The Company also received approval to recover $1.2 million in accrued interest.

Idaho Power added 3,112 general business customers during the third quarter 2001 and 6,891 additional customers year-to-date. As of Sept. 30, Idaho Power had 400,722 general business customers.

Other Subsidiaries
Ida-West Energy contributed two cents per share for the third quarter, the same as last year's third quarter. Year-to-date earnings per share of six cents are 24 cents less than last year's comparable period due to a 22-cent gain from the sale of the Hermiston Power Project.

IDACORP Financial added five cents per share for the third quarter 2001, the same as last year's third quarter. For the nine months ended September 30, 2001 the earnings per share contribution was 12 cents, two cents per share greater than 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 nine cents per share on the quarter which is an additional one cent loss when compared with the third quarter last year. Year-to-date the results were a 28-cent per share loss this year as compared to a 17 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 quarters ended March 31, 2001 and June 30, 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.