IDAHO POWER CO - 10-Q Quarterly Report

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549

FORM 10-Q

X	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
	EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2002

	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
	EXCHANGE ACT OF 1934

For the transition period from


Commission File Number	Exact name of registrant as specified in its charter, state of incorporation, address of principal executive offices, and telephone number	I.R.S. Employer Identification Number

1-3198	Idaho Power Company	82-0130980
	1221 W. Idaho Street
	Boise, ID 83702-5627

	Telephone: (208) 388-2200
	State of Incorporation: Idaho

None

Former name, former address and former fiscal year, if changed since last report.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes X No ___

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

Yes No X_

Number of shares of Common Stock outstanding as of September 30, 2002:	37,612,351 shares, all of which are held by IDACORP, Inc.

GLOSSARY

AFDC	-	Allowance for Funds used During Construction
APB	-	Accounting Principles Board
BPA	-	Bonneville Power Administration
CSPP	-	Cogeneration and Small Power Production
DIG	-	Derivatives Implementation Group
DSM	-	Demand-Side Management
EITF	-	Emerging Issues Task Force
EPA	-	Environmental Protection Agency
FASB	-	Financial Accounting Standards Board
FERC	-	Federal Energy Regulatory Commission
FPA	-	Federal Power Act
Ida-West	-	Ida-West Energy, a subsidiary of IDACORP, Inc.
IE	-	IDACORP Energy, a subsidiary of IDACORP, Inc.
IFS	-	IDACORP Financial Services, a subsidiary of IDACORP, Inc.
IPC	-	Idaho Power Company
IPUC	-	Idaho Public Utilities Commission
IRP	-	Integrated Resource Plan
kW	-	kilowatt
kWh	-	kilowatt-hour
MD&A	-	Management's Discussion and Analysis
MW	-	Megawatt
MWh	-	Megawatt-hour
OPUC	-	Oregon Public Utility Commission
PCA	-	Power Cost Adjustment
PURPA	-	Public Utilities Regulatory Policy Act
REA	-	Rural Electrification Administration
RFP	-	Request for proposals
RTOs	-	Regional Transmission Organizations
SFAS	-	Statement of Financial Accounting Standards
SPPCo	-	Sierra Pacific Power Company
Valmy	-	North Valmy Steam Electric Generating Plant

INDEX

Page

Part I. Financial Information:
	Item 1. Financial Statements (unaudited)
		Consolidated Statements of Income		4-5
		Consolidated Balance Sheets		6-7
		Consolidated Statements of Capitalization		8
		Consolidated Statements of Cash Flows		9
		Consolidated Statements of Comprehensive Income		10
		Notes to Consolidated Financial Statements		11-24
		Independent Accountants' Report		25

	Item 2. Management's Discussion and Analysis of Financial
			Condition and Results of Operations	26-44

	Item 3. Quantitative and Qualitative Disclosures about Market Risk			45

	Item 4. Controls and Procedures			45


Part II. Other Information:

	Item 1. Legal Proceedings			46

	Item 6. Exhibits and Reports on Form 8-K			46-50

Signatures				51

Certifications				52-53

FORWARD LOOKING INFORMATION
This Form 10-Q contains "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements should be read with the cautionary statements and important factors included in this Form 10-Q at Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations-Forward-Looking Information. Forward-looking statements are all statements other than statements of historical fact, including without limitation those that are identified by the use of the words "anticipates," "estimates," "expects," "intends," "plans," "predicts" and similar expressions.

PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Idaho Power Company
Consolidated Statements of Income
(unaudited)

			Three Months Ended
			September 30,
			2002		2001
			(thousands of dollars)

REVENUES:
	General business		$	216,452	$	185,830
	Off-system sales			10,859		91,654
	Other revenues			9,940		8,808
		Total revenues		237,251		286,292
EXPENSES:
	Operation:
		Purchased power		50,240		228,460
		Fuel expense		26,529		25,947
		Power cost adjustment		57,153		(57,770)
		Other		38,308		36,515
	Maintenance			14,339		13,829
	Depreciation			23,577		21,894
	Taxes other than income taxes			5,069		4,947
		Total expenses		215,215		273,822

INCOME FROM OPERATIONS				22,036		12,470

OTHER INCOME (EXPENSE):
	Allowance for equity funds used during construction			(4)		173
	Other - net			410		4,930
		Total other income		406		5,103

INTEREST CHARGES:
	Interest on long-term debt			12,330		13,770
	Other interest			2,318		2,450
	Allowance for borrowed funds used during construction			(432)		(879)
		Total interest charges		14,216		15,341

INCOME BEFORE INCOME TAXES				8,226		2,232

INCOME TAXES				(31,129)		958

NET INCOME				39,355		1,274

	Dividends on preferred stock			919		1,374

EARNINGS ON COMMON STOCK			$	38,436	$	(100)

The accompanying notes are an integral part of these statements.

Idaho Power Company
Consolidated Statements of Income
(unaudited)

			Nine Months Ended
			September 30,
			2002		2001
			(thousands of dollars)

REVENUES:
	General business		$	590,136	$	475,158
	Off-system sales			41,994		205,552
	Other revenues			28,775		33,828
		Total revenues		660,905		714,538
EXPENSES:
	Operation:
		Purchased power		111,614		523,165
		Fuel expense		76,165		73,545
		Power cost adjustment		133,378		(184,102)
		Other		111,991		108,055
	Maintenance			42,500		41,046
	Depreciation			69,932		64,293
	Taxes other than income taxes			15,415		15,591
		Total expenses		560,995		641,593

INCOME FROM OPERATIONS				99,910		72,945

OTHER INCOME:
	Allowance for equity funds used during construction			40		758
	Other - net			11,373		12,108
		Total other income		11,413		12,866

INTEREST CHARGES:
	Interest on long-term debt			37,884		41,943
	Other interest			7,293		7,270
	Allowance for borrowed funds used during construction			(1,753)		(3,295)
		Total interest charges		43,424		45,918

INCOME BEFORE INCOME TAXES				67,899		39,893

INCOME TAXES				(8,175)		15,549

INCOME FROM CONTINUING OPERATIONS				76,074		24,344

DISCONTINUED OPERATIONS:
	Income from operations of energy marketing transferred to
		parent (net of tax of $33,574)		-		49,943

NET INCOME				76,074		74,287

	Dividends on preferred stock			3,579		4,128

EARNINGS ON COMMON STOCK			$	72,495	$	70,159

The accompanying notes are an integral part of these statements.

Idaho Power Company
Consolidated Balance Sheets
(unaudited)
Assets

				September 30,		December 31,
				2002		2001
				(thousands of dollars)

ELECTRIC PLANT:
	In service (at original cost)			$	3,043,566	$	2,989,630
	Accumulated provision for depreciation				(1,278,568)		(1,220,002)
		In service - Net			1,764,998		1,769,628
	Construction work in progress				98,264		86,010
	Held for future use				2,335		2,232

			Electric plant - Net		1,865,597		1,857,870

INVESTMENTS AND OTHER PROPERTY					37,390		37,432

CURRENT ASSETS:
	Cash and cash equivalents				15,206		43,040
	Receivables:
		Customer			70,653		58,702
		Allowance for uncollectible accounts			(1,517)		(1,500)
		Notes			4,988		3,488
		Employee notes			7,515		6,274
		Related parties			20,754		37,517
		Other			790		2,280
	Taxes receivable				-		8,244
	Accrued unbilled revenues				28,742		37,400
	Materials and supplies (at average cost)				22,842		23,280
	Fuel stock (at average cost)				10,647		8,726
	Prepayments				33,784		31,897
	Regulatory assets				14,853		55,107

			Total current assets		229,257		314,455


DEFERRED DEBITS:
	American Falls and Milner water rights				31,585		31,585
	Company-owned life insurance				35,440		39,602
	Regulatory assets				520,946		544,134
	Other				34,081		34,626

			Total deferred debits		622,052		649,947


	TOTAL			$	2,754,296	$	2,859,704

The accompanying notes are an integral part of these statements.

Idaho Power Company
Consolidated Balance Sheets
(unaudited)
Capitalization and Liabilities

				September 30,		December 31,
				2002		2001
					(thousands of dollars)
CAPITALIZATION:
	Common stock equity:
		Common stock, $2.50 par value (50,000,000 shares
			authorized; 37,612,351 shares outstanding)	$	94,031	$	94,031
		Premium on capital stock			361,875		362,602
		Capital stock expense			(2,724)		(4,144)
		Retained earnings			336,128		316,856
		Accumulated other comprehensive income (loss)			(5,980)		(3,719)

			Total common stock equity		783,330		765,626

	Preferred stock				53,985		104,387

	Long-term debt				672,323		802,201

			Total capitalization		1,509,638		1,672,214

CURRENT LIABILITIES:
	Long-term debt due within one year				107,084		27,078
	Notes payable				133,300		282,000
	Accounts payable				37,534		68,806
	Notes and accounts payable to related parties				100,827		6,931
	Taxes accrued				41,881		-
	Derivative liabilities				-		40,528
	Interest accrued				19,570		13,115
	Deferred income taxes				14,853		14,578
	Other				22,337		16,118

			Total current liabilities		477,386		469,154

DEFERRED CREDITS:
	Deferred income taxes				591,140		541,482
	Derivative liabilities - long-term				-		7,253
	Regulatory liabilities				116,672		113,957
	Other				59,460		55,644

			Total deferred credits		767,272		718,336


COMMITMENTS AND CONTINGENT LIABILITIES

			TOTAL	$	2,754,296	$	2,859,704

The accompanying notes are an integral part of these statements.

Idaho Power Company
Consolidated Statements of Capitalization
(unaudited)

			September 30,				December 31,
			2002			%	2001		%
			(thousands of dollars)
COMMON STOCK EQUITY:
	Common stock		$	94,031			$	94,031
	Premium on capital stock			361,875				362,602
	Capital stock expense			(2,724)				(4,144)
	Retained earnings			336,128				316,856
	Accumulated other comprehensive income (loss)			(5,980)				(3,719)
		Total common stock equity		783,330	52			765,626		46

PREFERRED STOCK:
	4% preferred stock			13,985				14,387
	7.68% Series, serial preferred stock			15,000				15,000
	7.07% Series, serial preferred stock			25,000				25,000
	Auction rate preferred stock			-				50,000
		Total preferred stock		53,985	4			104,387		6

LONG-TERM DEBT:
	First mortgage bonds:
		6.85% Series due 2002		27,000				27,000
		6.40% Series due 2003		80,000				80,000
		8 % Series due 2004		50,000				50,000
		5.83% Series due 2005		60,000				60,000
		7.38% Series due 2007		80,000				80,000
		7.20% Series due 2009		80,000				80,000
		6.60% Series due 2011		120,000				120,000
		7.50% Series due 2023		80,000				80,000

Three Months Ended