IDACORP INC - 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 June 30, 2002

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

For the transition period from

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

1-14465	IDACORP, Inc.	82-0505802
	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 ___

Number of shares of Common Stock outstanding as of June 30, 2002: 37,698,844

GLOSSARY

AFDC	-	Allowance for Funds used During Construction
APB	-	Accounting Principles Board
APC	-	Applied Power Company
BPA	-	Bonneville Power Administration
Cal ISO	-	California Independent System Operator
CalPX	-	California Power Exchange
CSPP	-	Cogeneration and Small Power Production
DIG	-	Derivatives Implementation Group
DSM	-	Demand-Side Management
EITF	-	Emerging Issues Task Force
EPA	-	Environmental Protection Agency
EPS	-	Earning per share
FASB	-	Financial Accounting Standards Board
FERC	-	Federal Energy Regulatory Commission
FPA	-	Federal Power Act
Ida-West	-	Ida-West Energy
IE	-	IDACORP Energy
IFS	-	IDACORP Financial Services
IPC	-	Idaho Power Company
IPUC	-	Idaho Public Utilities Commission
IRP	-	Integrated Resource Plan
kW	-	kilowatt
kWh	-	kilowatt-hour
LTICP	-	Long-Term Incentive and Compensation Plan
MD&A	-	Management's Discussion and Analysis
MMbtu	-	Million British Thermal Units
MW	-	Megawatt
MWh	-	Megawatt-hour
OPUC	-	Oregon Public Utility Commission
Overton	-	Overton Power District No. 5
PCA	-	Power Cost Adjustment
PG&E	-	Pacific Gas and Electric Company
PURPA	-	Public Utilities Regulatory Policy Act
REA	-	Rural Electrification Administration
RFP	-	Request for proposals
RMC	-	Risk Management Committee
RTOs	-	Regional Transmission Organizations
SCE	-	Southern California Edison
SFAS	-	Statement of Financial Accounting Standards
SPPCo	-	Sierra Pacific Power Company
Valmy	-	North Valmy Steam Electric Generating Plant
WSCC	-	Western Systems Coordinating Council

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 Cash Flows		8
		Consolidated Statements of Comprehensive Income		9
		Notes to Consolidated Financial Statements		10-21
		Independent Accountants' Report		22

	Item 2. Management's Discussion and Analysis of Financial
			Condition and Results of Operations	23-40

	Item 3. Quantitative and Qualitative Disclosures about Market Risk			40

Part II. Other Information:

	Item 1. Legal Proceedings			41

	Item 2. Change in Securities and Use of Proceeds			41

	Item 4. Submission of Matters to a Vote of Security Holders			42

	Item 6. Exhibits and Reports on Form 8-K			43-44

Signatures				45

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
IDACORP, Inc.
Consolidated Statements of Income
(unaudited)

				Three months ended
				June 30,
				2002		2001
				(millions of dollars except for per share amounts)
OPERATING REVENUES:
	Electric utility:
		General business		$	188	$	156
		Off system sales			11		59
		Other revenues			10		13
			Total electric utility revenues		209		228
	Energy marketing commodities and services				408		1,347
	Other				4		3
		Total operating revenues			621		1,578

OPERATING EXPENSES:
	Electric utility:
		Purchased power			31		169
		Fuel expense			22		22
		Power cost adjustment			42		(68)
		Other operations and maintenance			54		50
		Depreciation			23		22
		Taxes other than income taxes			5		5
			Total electric utility expenses		177		200
	Energy marketing:
		Cost of energy commodities and services			423		1,286
		Selling, general and administrative			5		10
	Other				8		9
			Total operating expenses		613		1,505

OPERATING INCOME:
	Electric utility				32		28
	Energy marketing				(20)		51
	Other				(4)		(6)
		Total operating income			8		73

OTHER INCOME					2		4

INTEREST EXPENSE AND OTHER:
	Interest on long-term debt				12		15
	Other interest				3		3
	Preferred dividends of Idaho Power Company				1		1
		Total interest expense and other			16		19

INCOME (LOSS) BEFORE INCOME TAXES					(6)		58

INCOME TAXES					(9)		22

NET INCOME				$	3	$	36

AVERAGE COMMON SHARES
	OUTSTANDING (000'S)				37,665		37,412

EARNINGS PER SHARE OF COMMON
	STOCK (basic and diluted)			$	0.08	$	0.96

The accompanying notes are an integral part of these statements.

IDACORP, Inc.
Consolidated Statements of Income
(unaudited)

				Six months ended
				June 30,
				2002		2001
				(millions of dollars except for per share amounts)
OPERATING REVENUES:
	Electric utility:
		General business		$	373	$	289
		Off system sales			31		114
		Other revenues			19		25
			Total electric utility revenues		423		428
	Energy marketing commodities and services				843		2,277
	Other				8		6
		Total operating revenues			1,274		2,711

OPERATING EXPENSES:
	Electric utility:
		Purchased power			61		295
		Fuel expense			50		47
		Power cost adjustment			76		(126)
		Other operations and maintenance			103		99
		Depreciation			46		42
		Taxes other than income taxes			10		11
			Total electric utility expenses		346		368
	Energy marketing:
		Cost of energy commodities and services			849		2,143
		Selling, general and administrative			8		44
	Other				16		17
			Total operating expenses		1,219		2,572

OPERATING INCOME:
	Electric utility				77		60
	Energy marketing				(14)		90
	Other				(8)		(11)
		Total operating income			55		139

OTHER INCOME					8		8

INTEREST EXPENSE AND OTHER:
	Interest on long-term debt				26		28
	Other interest				6		6
	Preferred dividends of Idaho Power Company				3		3
		Total interest expense and other			35		37

INCOME BEFORE INCOME TAXES					28		110

INCOME TAXES					-		39

NET INCOME				$	28	$	71

AVERAGE COMMON SHARES
	OUTSTANDING (000'S)				37,613		37,414

EARNINGS PER SHARE OF COMMON
	STOCK (basic and diluted)			$	0.74	$	1.89

The accompanying notes are an integral part of these statements.

IDACORP, Inc.
Consolidated Balance Sheets
(unaudited)
Assets

			June 30,		December 31,
			2002		2001
			(millions of dollars)

CURRENT ASSETS:
	Cash and cash equivalents		$	47	$	67
	Receivables:
		Customer		178		207
		Allowance for uncollectible accounts		(43)		(43)
		Employee notes		7		6
		Other		14		11
	Energy marketing assets			106		194
	Taxes receivable			-		51
	Accrued unbilled revenues			42		37
	Materials and supplies (at average cost)			25		26
	Fuel stock (at average cost)			9		9
	Prepayments			35		32
	Regulatory assets			15		56
		Total current assets		435		653

INVESTMENTS				212		159

PROPERTY, PLANT AND EQUIPMENT:
	Utility plant in service			3,020		2,990
	Accumulated provision for depreciation			(1,261)		(1,220)
		Utility plant in service - net		1,759		1,770
	Construction work in progress			112		96
	Utility plant held for future use			2		2
	Other property, net of accumulated depreciation			21		18
		Property, plant and equipment - net		1,894		1,886

OTHER ASSETS:
	American Falls and Milner water rights			31		31
	Company-owned life insurance			39		40
	Energy marketing assets - long-term			181		204
	Regulatory assets			461		544
	Long-term receivables			74		74
	Other			52		51
		Total other assets		838		944

		TOTAL	$	3,379	$	3,642

The accompanying notes are an integral part of these statements.

IDACORP, Inc.
Consolidated Balance Sheets
(unaudited)
Liabilities and Capitalization

				June 30,		December 31,
				2002		2001
				(millions of dollars)

CURRENT LIABILITIES:
	Current maturities of long-term debt			$	115	$	36
	Notes payable				410		363
	Accounts payable				126		248
	Energy marketing liabilities				105		125
	Derivative liabilities				-		41
	Taxes accrued				17		-
	Interest accrued				14		15
	Deferred income taxes				8		24
	Other				39		55
		Total current liabilities			834		907

OTHER LIABILITIES:
	Deferred income taxes				557		590
	Energy marketing liabilities - long-term				111		135
	Regulatory liabilities				117		114
	Derivative liabilities - long-term				-		7
	Other				80		71
		Total other liabilities			865		917

LONG-TERM DEBT					706		843

COMMITMENTS AND CONTINGENT LIABILITIES					-		-

PREFERRED STOCK OF IDAHO POWER COMPANY					104		104

SHAREHOLDERS' EQUITY:
	Common stock, no par value (shares authorized 120,000,000;
		37,837,252 and 37,628,919 shares issued, respectively)			462		454
	Retained earnings				417		424
	Accumulated other comprehensive income (loss)				(5)		(4)
	Treasury stock (138,408 and 66,188 shares at cost, respectively)				(4)		(3)
		Total shareholders' equity			870		871

			TOTAL	$	3,379	$	3,642

The accompanying notes are an integral part of these statements.

IDACORP, Inc.
Consolidated Statements of Cash Flows
(unaudited)

				Six Months Ended
				June 30,
				2002		2001
				(millions of dollars)

OPERATING ACTIVITIES:
	Net income			$	28	$	71
	Adjustments to reconcile net income to net cash provided by
		(used in) operating activities:
		Allowance for uncollectible accounts			-		20
		Unrealized (gains) losses from energy marketing activities			58		(101)
		Gain on sale of assets			-		(1)
		Depreciation and amortization			56		54
		Deferred taxes and investment tax credits			(44)		87
		Accrued PCA costs			72		(127)
		Change in:
			Receivables and prepayments		23		105
			Accrued unbilled revenues		(5)		(3)
			Materials and supplies and fuel stock		1		(4)