BOISE, Idaho, Aug. 6 /PRNewswire-FirstCall/ -- IDACORP, Inc. (NYSE: IDA) reported second quarter 2009 net income attributable to IDACORP, Inc. of $27.5 million or $0.58 per diluted share compared to $17.5 million or $0.39 per diluted share in the second quarter of 2008. Idaho Power Company, IDACORP's principal subsidiary, reported second quarter net income of $26.3 million compared to $17.7 million in 2008.
"We were able to deliver improved financial results over last year despite the current economic environment," said J. LaMont Keen, IDACORP, Inc. and Idaho Power Company's President and CEO. "Our focus on the fundamentals such as enhanced cost management, timely recovery of infrastructure investment and positive regulatory outcomes resulted in improved earnings."
"We continue to advance plans for infrastructure investments to strengthen reliability and ensure adequate future energy supplies," added Keen. "Additionally, we remain active on the regulatory front with strategic filings before both the Idaho and Oregon public utilities commissions. While the full impact of increased revenues from recent regulatory decisions was partially offset by decreased demand due to weather and challenging economic times, our improved results demonstrate continued progress toward achieving our allowed return on equity."
Performance Summary
A summary of IDACORP's and each IDACORP subsidiary's net income for the second quarter and year-to-date 2009 as compared to 2008 is as follows:
Three months ended Six months ended
June 30, June 30,
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2009 2008 2009 2008
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(in thousands except per diluted share amounts)
Earnings From:
Idaho Power Company
(IPC) $26,326 $17,728 $45,610 $38,999
IDACORP Financial
Services (IFS) 188 701 329 1,502
Ida-West Energy 1,384 908 1,572 963
Holding Company and
All Other (423) (1,822) (1,152) (2,233)
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Net income
attributable to
IDACORP, Inc. $27,475 $17,515 $46,359 $39,231
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Weighted average
outstanding
shares-diluted 46,977 45,155 46,927 45,101
Earnings per diluted
share $0.58 $0.39 $0.99 $0.87
The following table presents a reconciliation of net income attributable
to IDACORP, Inc. for the three and six months ended June 30, 2008 to June
30, 2009:
Three months Six months
ended ended
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(in millions)
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June 30, 2008 $17.5 $39.2
Change in IPC net income:
Improved generating conditions and
regulatory changes $11.9 $17.8
Reduced sales volumes, net of cost
adjustment mechanism (10.2) (15.0)
Change in distribution of base net
power supply costs 6.5 -
Oregon 2007 excess power cost
deferral order 6.4 6.4
Reduced transmission revenues (1.7) (2.9)
Improved results at Bridger Coal
Company 0.4 4.5
Gain on the sale of the Southwest
Intertie Project (3.0) (2.9)
Other (1.7) (1.3)
----------------------------------------------- -------
Total increase in IPC net income 8.6 6.6
Other net increases (shown net of
tax) 1.4 0.6
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June 30, 2009 $27.5 $46.4
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- Changes to the Idaho PCA mechanism and base rate increases that both took effect February 1, 2009, positively impacted net income, as did improved hydroelectric generating conditions.
- IPC's retail customer sales volumes were down eight percent for the quarter and six percent year-to-date, due primarily to weather conditions. To a lesser extent economic factors contributed to the reduction in sales volume. Precipitation in the second quarter of 2009 was more than double the same period in 2008, contributing to a 19 percent decrease in sales to irrigation customers.
