IDACORP's first quarter financial results are lower than the same quarter of last year principally due to certain changes in Idaho Power Company's Power Cost Adjustment (PCA) mechanism. A May 2008 Idaho Public Utilities Commission (IPUC) Order implemented a change to the allocation method for recording base power supply costs which impacted the PCA expense levels during the first and second quarters of 2008. As a result, PCA expenses in the first quarter of 2008 were $6 million lower (thereby increasing earnings) than what would have been recorded had the orders been effective by the end of the first quarter 2008.

During the first quarter of this year several positive regulatory outcomes were achieved. Idaho Power received a four percent, or $27 million, rate increase from the IPUC in its general rate case; principally consisting of $11 million of Allowance for Funds Used During Construction relating to the Hells Canyon Complex relicensing project and $15 million of net power supply costs. The IPUC also approved changes to Idaho Power's PCA mechanism, allowing recovery of net power supply costs on a more timely basis.

"Following up on our actions in 2008, we are aggressively managing company operations in response to challenging economic and regulatory conditions in 2009," said J LaMont Keen, IDACORP, Inc. and Idaho Power Company's President and CEO. "We have reduced our workforce through attrition, significantly reduced our reliance on outside services and restricted travel and training expenses. Amidst these changes, our employees continue to provide exceptional service to our customers.

"While we expect 2009 to be a challenging year, we have seen positive results in the first quarter, including the passage of state legislation providing ratemaking assurances for large capital resource investments and the Swan Falls Settlement Agreement with the State of Idaho that shapes the future of important water management issues going forward."

Performance Summary

A summary of IDACORP's and each IDACORP subsidiary's net income for the first quarter ended March 31, 2009 as compared to 2008 is as follows:

Three Months Ended

March 31,

-- __ 2009__ 2008

(in thousands except per

diluted share amounts)

Earnings From:

Idaho Power Company (IPC)__ $19,284__ $21,271

IDACORP Financial Services (IFS)__ 141__ 801

Ida-West Energy__ 188__ 55

Holding Company and All Other__ (729)__ (411)

Net income attributable to IDACORP, Inc.__ $18,884__ $21,716

Average outstanding shares-diluted__ 46,876__ 45,047

Earnings per diluted share__ $0.40__ $0.48__

The following table presents a reconciliation of net income attributable to IDACORP, Inc. common shareholders for the three months ended March 31, 2008 to March 31, 2009 (in thousands):

March 31, 2008 Net income attributable to

IDACORP, Inc.__ $21,716

Change in IPC Net Income:

PCA allocation change__ $(6,400)

FERC fees refund__ (1,707)

Other revenue decrease due to lower

Open Access Transmission Tariff

(OATT) rate__ (1,729)

Increased income at Bridger Coal Company 4,097

Life Insurance benefits__ 2,189

Increased Interest income__ 1,621

Tax and Other__ (58)

Total Change in IPC Net Income__ (1,987)

Decreased net income at IFS

(shown net of tax)__ (660)

Other net decreases (shown net of tax)__ (185)

March 31, 2009 Net income attributable to

IDACORP, Inc.__ $18,884

Idaho Power's electric utility operating income declined $9.4 million primarily due to a May 2008 implementation of a PCA mechanism change authorized by the IPUC that required Idaho Power to change the method for recording base power supply costs which impacted the PCA expense levels during the first and second quarters of 2008. As a result, PCA expenses in the first quarter of 2008 were $6.4 million lower (thereby increasing earnings) than what would have been recorded had the orders been effective by the end of the first quarter 2008.

Idaho Power's sales volumes decreased five percent due in part to weather-related factors and the decline in commercial and industrial sales quarter-over-quarter. The impact of this reduction on operating income was partially mitigated by the Load Growth Adjustment Rate (LGAR) and Fixed Cost Adjustment (FCA) mechanisms, both of which were put in place to manage the impact of changes in sales volumes (PCA) and customer usage (FCA) as compared to the levels included in base rates.

Utility operating income was further impacted by the Idaho general rate case which required Idaho Power to reverse part of the refund of the Federal Energy Regulatory Commission fees recognized in 2006 decreasing income $1.7 million. A reduction in the open access transmission rate decreased operating income $1.7 million.

Partially offsetting these items was a $4.1 million improvement in earnings from Bridger Coal Company, which had experienced losses in the first quarter of 2008 primarily due to difficulties related to the longwall mining operation, a $2.2 million increase in Other Income from life insurance investments and a $1.6 million increase in interest income primarily related to a federal income tax refund.

2009 Outlook

The outlook for key operating and financial metrics is:

2009 Estimates

Key Operating & Financial Metrics__ Current__ Previous

Idaho Power Operation &

Maintenance Expense (Millions)__ No Change__ $280-$290

Idaho Power Capital

Expenditures (Millions) (1)__ No Change__ $220-$230

Idaho Power Hydroelectric

Generation (Million MWh) (2)__ No Change__ 6.5-8.5

Non-Regulated Subsidiary Earnings

and Holding Company Expenses (Millions)__ No Change__ $0.0-$3.0

Effective Tax Rates:

Idaho Power__ No Change__ 31%-35%

Consolidated - IDACORP__ No Change__ 24%-28%

(1) For the three-year period, 2009-2011, IPC expects to spend approximately $780 - $800 million. This amount includes expenditures for the siting and permitting of major transmission expansions for Boardman to Hemingway, Gateway West, Hemingway Station and the Hemingway Hubbard facilities, but excludes the costs of the Langley Gulch power plant.