Oct. 29, 2009 (PR Newswire) -- BOISE, Idaho, Oct. 29 /PRNewswire-FirstCall/ -- IDACORP, Inc. (NYSE: IDA) reported third quarter 2009 net income attributable to IDACORP, Inc. of $54.5 million or $1.16 per diluted share compared to $51.7 million or $1.14 per diluted share in the third quarter of 2008. Idaho Power Company, IDACORP's principal subsidiary, reported third quarter net income of $51.1 million compared to $47.4 million in 2008.
"The improved earnings demonstrate that our operating and financial strategies continue to positively impact the bottom line," said IDACORP, Inc. and Idaho Power Company President and CEO J. LaMont Keen. "Our diligence in effectively managing expenses and securing timely recovery of capital investments contributed to our improved results."
"New and upgraded infrastructure is needed before southern Idaho and eastern Oregon can take full advantage of opportunities when the economic climate rebounds. This means additional investments followed by timely recovery of those investments. It also means we continue to aggressively manage the business balancing the interests of our customers, employees and owners to ensure our communities prosper and IDACORP remains financially strong."
Performance Summary
A summary of IDACORP's and each IDACORP subsidiary's net income for the third quarter and year-to-date 2009 as compared to 2008 is as follows:
Three months ended Nine months ended
September 30, September 30,
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2009 2008 2009 2008
---- ---- ---- ----
(in thousands except per diluted share amounts)
Earnings From:
Idaho Power Company (IPC) $51,057 $47,405 $96,667 $86,404
IDACORP Financial Services
(IFS) 245 710 574 2,212
Ida-West Energy 1,208 1,208 2,780 2,171
Holding Company and All
Other 1,968 2,416 816 182
------------------------ ----- ----- --- ---
Net income attributable to
IDACORP, Inc. $54,478 $51,739 $100,837 $90,969
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Weighted average outstanding
shares-diluted 47,141 45,246 46,999 45,149
Earnings per diluted share $1.16 $1.14 $2.15 $2.02
The following table presents a reconciliation of net income attributable to IDACORP, Inc. for the three and nine months ended September 30, 2008 to September 30, 2009 (in millions):
Three months Nine months
ended ended
----- -----
September 30, 2008 $51.7 $91.0
Change in IPC net income before taxes:
Rate and other regulatory changes, net
of PCA $4.3 $20.5
Reduced sales volumes, net of FCA
deferral (5.5) (20.7)
Oregon 2007 excess power cost deferral in
2009 - 6.4
Decrease in transmission revenue (1.3) (4.2)
Reduced effective income tax rate 3.8 7.3
Other, including tax impacts of listed items 2.4 1.0
-------------------------------------------- --- ---
Total increase in IPC net income 3.7 10.3
Other net decreases (net of tax) (0.9) (0.5)
------------------------------- ----- ----
September 30, 2009 $54.5 $100.8
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-- Changes to the Idaho power cost adjustment (PCA) mechanism and changes
to base rates positively impacted net income. These changes were
partially offset by the increased depreciation related to the Advanced
Metering Infrastructure project and increased net power supply costs.
Also offsetting the changes was the effect of Idaho Public Utilities
Commission orders that revised the allocation method for base net power
supply costs in the PCA calculation over the year. The allocation
method did not affect the total amount of base net power supply costs
used to calculate the PCA deferral, but did affect the quarters in which
the costs were allocated.
