IDACORP Announces Second Quarter 2005 Results

"Low irrigation loads masked an otherwise strong performance by Idaho Power, as irrigation loads and revenues were 52 percent and 46 percent respectively of what they were a year ago," said IDACORP President and Chief Executive Officer Jan B. Packwood. "Those impacts were partially offset by an increase in customers, sales and revenue across all other general businesscategories. We are expecting strong customer growth to continue and are experiencing an unseasonably warm summer which combined should give us a good third quarter."

Second Quarter and Year-To-Date Performance Summary

IDACORP’s earnings per share in the second quarter reflect the combination of 30 cents per share earnings at the regulated utility and a consolidated eight cents-per-share loss at the non-regulated businesses.Year-to-date, Idaho Power recorded earnings of 81 cents per share while thenon-regulated companies registered a net loss of four cents per share.

Idaho Power’s earnings per share were up for the quarter and year-todatedespite a nearly $8 million decline in general business revenues in boththe second quarter and first six months of 2005 compared to the same periodsin 2004. Lower electricity consumption by irrigation customers due to a coolerand wetter spring than normal more than offset increased general businessrevenues due to higher rates and customer growth. Idaho Power estimatesthat the impact of reduced irrigation sales for the quarter was approximately 15cents per share.

First quarter 2005 temperatures were above historic averages for theperiod and those registered in 2004. However, temperatures during thesecond quarter were 31 percent cooler than normal and nearly 46 percentcooler than last year. While the combination of cooler spring temperatures andabove average precipitation levels in May and June reduced irrigation load, italso reduced the Company’s need to purchase energy, providing a reduction tothe Company’s net Power Cost Adjustment (PCA) deferral.

The portion of year-to-date net power supply costs (including powersupply expenses net of off-system sales) absorbed by the company and notrecovered under the Idaho PCA and Oregon Excess Power Cost mechanismsdecreased by $1.5 million from the $7.1 million recorded during the sameperiod in 2004.

Analysis of Earnings

The following table summarizes earnings per share (EPS) from each of our business units:

	Three Months Ended		Year-To-Date
Subsidiary	6/30/05	6/30/04	6/30/05	6/30/04
Idaho Power Company	$ 0.30	$ 0.21	$ 0.81	$ 0.72
IDACORP Energy	(0.01)	0.02	(0.01)	0.02
IDACORP Financial Services	0.06	0.12	0.12	0.19
Ida-West Energy	0.02	0.06	0.02	0.07
IdaTech	(0.06)	(0.04)	(0.11)	(0.07)
IDACOMM	0.01	-	0.01	0.01
Holding Company	(0.08)	(0.03)	(0.05)	(0.07)
	$ 0.22	$ 0.34	$ 0.77	$ 0.85

Included in second quarter 2004 results for the non-regulatedbusinesses is 14 cents per share in gains from a series of transactions that didnot recur in 2005. These gains offset the impacts of the disallowed IdahoPower general rate case costs reported in the same period.
IDACORP estimates its consolidated group effective income tax rate forthe annual period in accordance with interim reporting requirements. Theestimated annual rate is used in determining the effective rate for the quarterand may result in an intraperiod allocation of income tax expense. Such anallocation was made for the second quarter and is recorded at the holding company.

2005 Forecast - Water Conditions

The inflows into Brownlee Reservoir for the April through July period were 3.6 million acre-feet (maf). This inflow volume is 57 percent of the 30-year average (6.3 maf) and reflects the sixth consecutive year of below average inflow. In 2004, the inflows were 3.2 maf.

Projected Key Operating & Financial Metrics – 2005

The projected key operating and financial metrics for 2005 are:

Metric	Previous Estimate	Current Estimate
Idaho Power Company Operation & Maintenance Expense (Millions)	$244-$248	No change
Idaho Power Company Capital Expenditures (Millions)	$202	$190-$200
Idaho Power Company Hydroelectric Generation (Million MWh)	5.6	6.3
Non-regulated Subsidiary Earnings Per Share	$0.05-$0.10	$0.00-$0.05
Effective Tax Rates:   Idaho Power Company   Consolidated – IDACORP	35% - 40% 5%	No change

The projected increase in generation is a result of the precipitation in May and June.

Non-regulated subsidiary earnings per share estimates have been revised to reflect increased estimated losses at IdaTech.

Idaho Power currently expects to spend from $190 million to $200 million in capital expenditures, excluding allowance for funds used during construction. The slight decrease in the estimate is due primarily to the timing of certain construction expenditures.

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 onference 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 12 months.

Background Information / Safe Harbor Statement

Boise, Idaho-based IDACORP, formed in 1998, is a holding companycomprised of Idaho Power Company, a regulated electric utility; IDACORPFinancial, a holder of affordable housing projects and other real estateinvestments; IdaTech, a developer of integrated fuel cell systems; IDACOMM,a provider of telecommunication services and commercial and residentialInternet services; and Ida-West Energy, an operator of small hydroelectricgeneration projects that satisfy the requirements of the Public UtilitiesRegulatory Policy Act of 1978.

Certain statements contained in this news release, including statementswith 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 andassumptions reflected in these forward-looking statements are reasonable,these statements involve a number of risks and uncertainties, and actual resultsmay differ materially from the results discussed in the statements. Factors thatcould cause actual results to differ materially from the forward-lookingstatements include: changes in governmental policies, including newinterpretations of existing policies, regulatory actions, and regulatory audits,including those of the Federal Energy Regulatory Commission, the Idaho PublicUtilities Commission, the Oregon Public Utility Commission and the InternalRevenue Service, with respect to allowed rates of return, industry and ratestructure, day-to-day business operations, acquisition and disposal of assetsand facilities, operation and construction of plant facilities, relicensing ofhydroelectric projects, recovery of purchased power expenses, recovery ofother capital investments, present or prospective wholesale and retailcompetition (including but not limited to retail wheeling and transmission costs)and other refund proceedings; litigation and regulatory proceedings, includingthose resulting from the energy situation in the western United States, andsettlements that influence business and profitability; changes in and compliance with environmental, endangered species and safety laws and policies; weather Pagevariations affecting hydroelectric generating conditions and customer energyusage; over-appropriation of surface and groundwater in the Snake River Basinresulting in reduced generation at hydroelectric facilities; construction of powergenerating facilities including inability to obtain required governmental permitsand approvals, and risks related to contracting, construction and start-up;operation of power generating facilities including breakdown or failure ofequipment, performance below expected levels, competition, fuel supply,including availability, transportation and prices, and transmission; impacts fromthe potential formation of a regional transmission organization; populationgrowth rates and demographic patterns; market demand and prices for energy,including structural market changes; changes in operating expenses and capitalexpenditures and fluctuations in sources and uses of cash; results of financingefforts, including the ability to obtain financing on favorable terms, which can beaffected by factors such as credit ratings and general economic conditions;actions by credit rating agencies, including changes in rating criteria and newinterpretations of existing criteria; homeland security, natural disasters, acts ofwar or terrorism; market conditions and technological developments that couldaffect the operations and prospects of IDACORP's subsidiaries or theircompetitors; increasing health care costs and the resulting effect on healthinsurance premiums paid for employees; performance of the stock market andthe changing interest rate environment, which affect the amount of requiredcontributions to pension plans, as well as the reported costs of providingpension and other postretirement benefits; increasing costs of insurance,changes in coverage terms and the ability to obtain insurance; changes in taxrates or policies, interest rates or rates of inflation; adoption of or changes incritical accounting policies or estimates; and new accounting or Securities andExchange Commission requirements, or new interpretation or application ofexisting requirements. Any such forward-looking statements should beconsidered in light of such factors and others noted in the companies’ Form 10-K for the year ended December 31, 2004, the Quarterly Report on Form 10-Qfor the quarter ended March 31, 2005 and other reports on file with theSecurities and Exchange Commission. Any forward-looking statement speaksonly as of the date on which such statement is made. New factors emergefrom time to time and it is not possible for management to predict all suchfactors, nor can it assess the impact of any such factor on the business or theextent to which any factor, or combination of factors, may cause results to differmaterially from those contained in any forward-looking statement.