IDACORP, Inc. and Idaho Power File Report with Securities and Exchange Commission

“Responsible planning, development and protection of resources and wise energy use guide our focus on the things that matter to our customers, employees and owners,” said IDACORP, Inc. and Idaho Power’s Senior Vice President and Chief Financial Officer Darrel Anderson. “Creating a responsible energy future—balancing cost, reliability, climate change and other environmental and economic impacts—is something that matters to all of us.”

Idaho Power is guided by responsible planning and a collaborative integrated resource planning process, which includes involvement by and input from customers, government, public and environmental organization stakeholders.

“The need for more electricity is simply a result of all of us using a resource that is becoming increasingly scarce and costly,” added Anderson. “The need exists now during periods of peak usage when we must purchase power from other companies to meet our customers’ demand, so building this new generation resource becomes paramount as we look to secure reliable energy for the future.” 

Idaho Power provides customers extensive education and programs related to energy efficiency and peak load reduction. During 2002 to 2008, Idaho Power achieved over 395,000 megawatt hours (MWh) in energy efficiency savings. This is equivalent to 45 average megawatts (aMW) in 2008 or enough energy to supply over 30,000 average homes. It also translates into more than 161,000 metric tons of carbon dioxide (CO₂) emissions avoided in 2008, based on a grid average emission factor for the Pacific Northwest of 900 pounds CO₂/MWh.  Even with Idaho Power’s significant energy efficiency and conservation accomplishments, the service area’s energy demand requires increased supply.

Idaho Power recently filed with the Idaho Public Utilities Commission for a Certificate of Public Convenience and Necessity seeking authorization for the company to construct, own and operate the Langley Gulch Power Plant. If approved, by 2012 this plant will generate the supply of electricity crucial to preserving the ability to maintain a favorable business climate that attracts new jobs and businesses, meeting the needs of Idaho Power customers now and in the future. A delay in this process or in the construction and operation of this power plant jeopardizes Idaho Power’s commitment and obligation to ensure adequate energy supplies.

Idaho Power’s clean, low-cost hydroelectric base resource historically enabled integration of other renewable resources, such as wind. Hydroelectric resources permit integration of this type of generation as it can be adjusted quickly to balance the frequent generation fluctuations of “intermittent” renewable energy sources like wind and solar.  However, little generation flexibility remains in our hydroelectric base to balance these new resources, due to hydroelectric operation restrictions and the need to cover existing intermittent resources.

The Langley Gulch Power Plant and two 500 kilovolt (kV) transmission projects planned by Idaho Power will provide additional resource capacity and flexibility to integrate new intermittent renewable resources. The recently announced delay of the Boardman to Hemingway transmission line project increases the importance of timely construction of the Langley Gulch Power Plant.  Langley Gulch generation levels will be adjustable and available to balance new intermittent renewable resources such as the 150 MW wind resource Idaho Power recently identified through its request for proposal process. 

Although Idaho Power’s greenhouse gas emissions are significantly below most other utilities, climate change is an important issue to the company and one that we are actively addressing to meet anticipated future requirements. Idaho Power ranks within the 26 lowest carbon dioxide emitters among the largest 100 electricity producers in the United States based on an independent 2008 report on 2006 emissions. 

“We are proud to report our carbon emissions are some of the lowest in the industry, a target position many in the industry strive to achieve,” said Anderson. “Still, we actively review the development and preservation of resources, anticipating regulations around greenhouse gas emissions.” 

Anticipated climate change legislation and renewable portfolio standards increase the need for the Langley Gulch Power Plant to provide Idaho Power options to allow enhanced integration of renewable and alternative energy resources.

IDACORP, Inc., Boise, Idaho-based and 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; and Ida-West Energy, an operator of small hydroelectric generation projects that satisfy the requirements of the Public Utility Regulatory Policies Act of 1978. IDACORP’s origins lie with Idaho Power and operations beginning in 1916. Today, Idaho Power employs approximately 2,100 people to serve a 24,000 square-mile service area in southern Idaho and eastern Oregon. With 17 low-cost hydroelectric projects as the core of its generation portfolio, Idaho Power’s 487,000 residential, business and agricultural customers pay some of the nation’s lowest prices for electricity. To learn more about Idaho Power or IDACORP, visit www.idahopower.com or www.idacorpinc.com.

Safe Harbor Statement

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: the effect of  regulatory decisions by the Idaho Public Utilities Commission, the Oregon Public Utility Commission and the Federal Energy Regulatory Commission affecting our ability to recover costs and/or earn a reasonable rate of return including, but not limited to, the disallowance of costs that have been deferred; changes in and compliance with state and federal laws, policies and regulations  including new interpretations by oversight bodies, which include the Federal Energy Regulatory Commission, the North American Electric Reliability Corporation, the Western Electricity Coordinating Council, the Idaho Public Utilities Commission and the Oregon Public Utility Commission, of existing policies and regulations that affect the cost of compliance, investigations and audits, penalties and costs of remediation that may or may not be recoverable through rates; changes in tax laws or related regulations or new interpretations of applicable law by the Internal Revenue Service or other taxing jurisdiction; litigation and regulatory proceedings, including those resulting from the energy situation in the western United States, and penalties and settlements that influence business and profitability; changes in and compliance with laws, regulations, and policies including changes in law and compliance with environmental, natural resources, endangered species and safety laws, regulations and policies and the adoption of laws and regulations addressing greenhouse gas emissions, global climate change, and energy policies; global climate change and regional weather variations affecting customer demand and hydroelectric generation; over-appropriation of surface and groundwater in the Snake River Basin resulting in reduced generation at hydroelectric facilities; construction of power generation, transmission and distribution facilities, including an inability to obtain required governmental permits and approvals, rights-of-way and siting, and risks related to contracting, construction and start-up; operation of power generating facilities including performance below expected levels, breakdown or failure of equipment, availability of transmission and fuel supply; changes in operating expenses and capital expenditures, including costs and availability of materials, fuel and commodities; blackouts or other disruptions of Idaho Power Company’s transmission system or the western interconnected transmission system; population growth rates and other demographic patterns; market prices and demand for energy, including structural market changes; increases in uncollectible customer receivables; fluctuations in sources and uses of cash; results of financing efforts, including the ability to obtain financing or refinance existing debt when necessary or on favorable terms, which can be affected by factors such as credit ratings, volatility in the financial markets and other economic conditions; actions by credit rating agencies, including changes in rating criteria and new interpretations of existing criteria; changes in interest rates or rates of inflation; performance of the stock market, interest rates, credit spreads and other financial market conditions, as well as changes in government regulations, which affect the amount and timing of required contributions to pension plans and the reported costs of providing pension and other postretirement benefits; increases in health care costs and the resulting effect on medical benefits paid for employees; increasing costs of insurance, changes in coverage terms and the ability to obtain insurance; homeland security, acts of war or terrorism; natural disasters and other natural risks, such as earthquake, flood, drought, lightning, wind and fire; 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 such forward-looking statements should be considered in light of such factors and others noted in the companies’ Annual Report on Form 10-K for the year ended December 31, 2008, 10-Q for first quarter ended March 31, 2009, and other reports on file with the Securities and Exchange Commission. 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.