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 September 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 ___

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

Yes X No ___

Number of shares of Common Stock outstanding as of September 30, 2002: 37,853,573

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		10-27
		Independent Accountants' Report		28

	Item 2. Management's Discussion and Analysis of Financial
			Condition and Results of Operations	29-55

	Item 3. Quantitative and Qualitative Disclosures about Market Risk			55

	Item 4. Controls and Procedures			55

Part II. Other Information:

	Item 1. Legal Proceedings			56

	Item 6. Exhibits and Reports on Form 8-K			56-57

Signatures				58

Certifications				59-60

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
				September 30,
				2002		2001
				(millions of dollars except for per share amounts)
OPERATING REVENUES:
	Electric utility:
		General business		$	216	$	186
		Off-system sales			11		92
		Other revenues			10		9
			Total electric utility revenues		237		287
	Energy marketing commodities and services				19		105
	Other				3		3
		Total operating revenues			259		395

OPERATING EXPENSES:
	Electric utility:
		Purchased power			50		228
		Fuel expense			27		26
		Power cost adjustment			57		(58)
		Other operations and maintenance			52		51
		Depreciation			24		22
		Taxes other than income taxes			5		5
			Total electric utility expenses		215		274
	Energy marketing:
		Cost of energy commodities and services			12		36
		Selling, general and administrative			6		12
	Other				9		8
			Total operating expenses		242		330

OPERATING INCOME:
	Electric utility				22		13
	Energy marketing				1		57
	Other				(6)		(5)
		Total operating income			17		65

OTHER INCOME (EXPENSE)					(2)		5

INTEREST EXPENSE AND OTHER:
	Interest on long-term debt				12		14
	Other interest				4		4
	Preferred dividends of Idaho Power Company				1		1
		Total interest expense and other			17		19

INCOME (LOSS) BEFORE INCOME TAXES					(2)		51

INCOME TAXES					(39)		17

NET INCOME				$	37	$	34

AVERAGE COMMON SHARES
	OUTSTANDING (000'S)				37,771		37,354

EARNINGS PER SHARE OF COMMON
	STOCK (basic and diluted)			$	0.98	$	0.91

The accompanying notes are an integral part of these statements.

IDACORP, Inc.
Consolidated Statements of Income
(unaudited)

				Nine months ended
				September 30,
				2002		2001
				(millions of dollars except for per share amounts)
OPERATING REVENUES:
	Electric utility:
		General business		$	590	$	475
		Off-system sales			42		206
		Other revenues			28		34
			Total electric utility revenues		660		715
	Energy marketing commodities and services				37		307
	Other				12		9
		Total operating revenues			709		1,031

OPERATING EXPENSES:
	Electric utility:
		Purchased power			112		523
		Fuel expense			76		74
		Power cost adjustment			133		(184)
		Other operations and maintenance			155		149
		Depreciation			70		64
		Taxes other than income taxes			15		16
			Total electric utility expenses		561		642
	Energy marketing
		Cost of energy commodities and services			37		105
		Selling, general and administrative			14		55
	Other				25		23
			Total operating expenses		637		825

OPERATING INCOME:
	Electric utility				99		73
	Energy marketing				(14)		147
	Other				(13)		(14)
		Total operating income			72		206

OTHER INCOME					6		12

INTEREST EXPENSE AND OTHER:
	Interest on long-term debt				38		42
	Other interest				10		11
	Preferred dividends of Idaho Power Company				4		4
		Total interest expense and other			52		57

INCOME BEFORE INCOME TAXES					26		161

INCOME TAXES					(39)		56

NET INCOME				$	65	$	105

AVERAGE COMMON SHARES
	OUTSTANDING (000'S)				37,665		37,356

EARNINGS PER SHARE OF COMMON
	STOCK (basic and diluted)			$	1.72	$	2.80

The accompanying notes are an integral part of these statements.

IDACORP, Inc.
Consolidated Balance Sheets
(unaudited)
Assets

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

CURRENT ASSETS:
	Cash and cash equivalents		$	70	$	67
	Receivables:
		Customer		161		204
		Allowance for uncollectible accounts		(43)		(43)
		Employee notes		8		6
		Other		9		11
	Energy marketing assets			113		194
	Taxes receivable			-		51
	Accrued unbilled revenues			29		37
	Materials and supplies (at average cost)			25		26
	Fuel stock (at average cost)			11		9
	Prepayments			35		32
	Regulatory assets			15		56
		Total current assets		433		650

INVESTMENTS				204		159

PROPERTY, PLANT AND EQUIPMENT:
	Utility plant in service			3,044		2,990
	Accumulated provision for depreciation			(1,279)		(1,220)
		Utility plant in service - net		1,765		1,770
	Construction work in progress			109		96
	Utility plant held for future use			2		2
	Other property, net of accumulated depreciation			23		18
		Property, plant and equipment - net		1,899		1,886

OTHER ASSETS:
	American Falls and Milner water rights			32		31
	Company-owned life insurance			35		40
	Energy marketing assets - long-term			163		204
	Regulatory assets			522		544
	Long-term receivables			74		74
	Other			49		51
		Total other assets		875		944

		TOTAL	$	3,411	$	3,639

The accompanying notes are an integral part of these statements.

IDACORP, Inc.
Consolidated Balance Sheets
(unaudited)
Liabilities and Shareholders' Equity

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

CURRENT LIABILITIES:
	Current maturities of long-term debt			$	116	$	36
	Notes payable				416		363
	Accounts payable				136		248
	Energy marketing liabilities				89		125
	Derivative liabilities				-		41
	Taxes accrued				28		-
	Interest accrued				20		15
	Deferred income taxes				5		21
	Other				25		55
		Total current liabilities			835		904

OTHER LIABILITIES:
	Deferred income taxes				628		590
	Energy marketing liabilities - long-term				101		135
	Regulatory liabilities				117		114
	Derivative liabilities - long-term				-		7
	Other				82		71
		Total other liabilities			928		917

LONG-TERM DEBT					702		843

COMMITMENTS AND CONTINGENT LIABILITIES

PREFERRED STOCK OF IDAHO POWER COMPANY					54		104

SHAREHOLDERS' EQUITY:
	Common stock, no par value (shares authorized 120,000,000;
		37,991,981 and 37,628,919 shares issued, respectively)			466		454
	Retained earnings				436		424
	Accumulated other comprehensive income (loss)				(6)		(4)
	Treasury stock (138,408 and 66,188 shares at cost, respectively)				(4)		(3)
		Total shareholders' equity			892		871

			TOTAL	$	3,411	$	3,639

The accompanying notes are an integral part of these statements.

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

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

OPERATING ACTIVITIES:
	Net income			$	65	$	105
	Adjustments to reconcile net income to net cash provided by
		(used in) operating activities:
		Allowance for uncollectible accounts			-		19
		Unrealized (gains) losses from energy marketing activities			37		(96)
		Depreciation and amortization			91		82
		Deferred taxes and investment tax credits			(92)		115
		Accrued PCA costs			128		(188)
		Change in:
			Receivables and prepayments		43		(86)
			Accrued unbilled revenues		9		12
			Materials and supplies and fuel stock		(1)		(1)
			Accounts payable		(148)		65
			Taxes receivable/accrued		79		(35)
			Other current assets and liabilities		27		(16)
		Other - net			5		(5)
			Net cash provided by (used in) operating activities		243		(29)

INVESTING ACTIVITIES:
	Additions to property, plant and equipment				(89)		(138)
	Investments in affordable housing projects				(44)		-
&nb