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, 2003

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

For the transition period from

	Exact name of registrants as specified	I.R.S. Employer
Commission File	in their charters, state of incorporation, address	Identification
Number	of principal executive offices, and telephone number	Number
1-14465	IDACORP, Inc.	82-0505802
1-3198	Idaho Power Company	82-0130980
	1221 W. Idaho Street
	Boise, ID 83702-5627

	Telephone: (208) 388-2200
	State of Incorporation: Idaho
	Web site: www.idacorpinc.com

None

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

Indicate by check mark whether the registrants (1) have 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 registrants are accelerated filers (as defined in Rule 12b-2 of the Exchange Act).

IDACORP, Inc.	Yes X No ___
Idaho Power Company	Yes No X

Number of shares of Common Stock outstanding as of June 30, 2003:

IDACORP, Inc.:	38,196,287
Idaho Power Company:	37,612,351 all held by IDACORP, Inc.

This combined Form 10-Q represents separate filings by IDACORP, Inc. and Idaho Power Company. Information contained herein relating to an individual registrant is filed by that registrant on its own behalf. Idaho Power Company makes no representations as to the information relating to IDACORP, Inc.'s other operations.

COMMONLY USED TERMS

AFDC	-	Allowance for Funds Used During Construction
ALJ	-	Administrative Law Judge
APB	-	Accounting Principles Board
Cal ISO	-	California Independent System Operator
CalPX	-	California Power Exchange
EPA	-	Environmental Protection Agency
EPS	-	Earnings per share
FASB	-	Financial Accounting Standards Board
FERC	-	Federal Energy Regulatory Commission
FPA	-	Federal Power Act
GAAP	-	Accounting Principles Generally Accepted in the United States of America
HCC	-	Hells Canyon Complex
Ida-West	-	Ida-West Energy, a subsidiary of IDACORP, Inc.
IE	-	IDACORP Energy, a subsidiary of IDACORP, Inc.
IFS	-	IDACORP Financial Services, Inc., a subsidiary of IDACORP, Inc.
IPC	-	Idaho Power Company, a subsidiary of IDACORP, Inc.
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
PCA	-	Power Cost Adjustment
PG&E	-	Pacific Gas and Electric Company
PM&E	-	Protection, Mitigation and Enhancement
PPA	-	Power Purchase Agreement
PPLM	-	PPL Montana, LLC
REA	-	Rural Electrification Administration
RMC	-	Risk Management Committee
RTOs	-	Regional Transmission Organizations
SCE	-	Southern California Edison
SFAS	-	Statement of Financial Accounting Standards
SPPCo	-	Sierra Pacific Power Company

INDEX

Page

Part I. Financial Information:
	Item 1. Financial Statements (unaudited)
		IDACORP, Inc.:
			Consolidated Statements of Operations	1-2
			Consolidated Balance Sheets	3-4
			Consolidated Statements of Cash Flows	5
			Consolidated Statements of Comprehensive Income (Loss)	6
			Notes to Consolidated Financial Statements	7-24
			Independent Accountants' Report	25
		Idaho Power Company:
			Consolidated Statements of Income	26-27
			Consolidated Balance Sheets	28-29
			Consolidated Statements of Capitalization	30
			Consolidated Statements of Cash Flows	31
			Consolidated Statements of Comprehensive Income	32
			Notes to Consolidated Financial Statements	33-34
			Independent Accountants' Report	35

	Item 2. Management's Discussion and Analysis of Financial
		Condition and Results of Operations		36-58

	Item 3. Quantitative and Qualitative Disclosures about Market Risk			58-60

	Item 4. Controls and Procedures			60

Part II. Other Information:

	Item 1. Legal Proceedings			61

	Item 2. Changes in Securities and Use of Proceeds			61

	Item 4. Submission of Matters to a Vote of Security Holders			61-62

	Item 5. Other Information			62

	Item 6. Exhibits and Reports on Form 8-K			63-68

Signatures				69-70

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 Operations
(unaudited)

				Three Months Ended June 30,
				2003		2002
				(thousands of dollars except for per
				share amounts)
OPERATING REVENUES:
	Electric utility:
		General business		$	166,613	$	187,564
		Off-system sales			19,839		10,976
		Other revenues			11,176		11,041
			Total electric utility revenues		197,628		209,581
	Energy marketing				(1,053)		(3,049)
	Other				3,701		3,300
		Total operating revenues			200,276		209,832

OPERATING EXPENSES:
	Electric utility:
		Purchased power			32,019		31,184
		Fuel expense			23,908		21,708
		Power cost adjustment			25,383		42,165
		Other operations and maintenance			59,537		53,351
		Depreciation			24,279		23,184
		Taxes other than income taxes			5,251		5,160
			Total electric utility expenses		170,377		176,752
	Energy marketing:
		Cost of revenues			(15)		13,005
		Selling, general and administrative			6,481		4,551
	Other				9,433		7,781
			Total operating expenses		186,276		202,089

OPERATING INCOME (LOSS):
	Electric utility				27,251		32,829
	Energy marketing				(7,519)		(20,605)
	Other				(5,732)		(4,481)
		Total operating income			14,000		7,743

OTHER INCOME					1,402		2,464

INTEREST EXPENSE AND OTHER:
	Interest on long-term debt				14,449		12,237
	Other interest				966		2,924
	Preferred dividends of Idaho Power Company				866		1,298
		Total interest expense and other			16,281		16,459

INCOME (LOSS) BEFORE INCOME TAXES					(879)		(6,252)

INCOME TAX EXPENSE (BENEFIT)					-		(9,329)

NET INCOME (LOSS)				$	(879)	$	3,077

AVERAGE COMMON SHARES
	OUTSTANDING (000's)				38,196		37,665

EARNINGS (LOSS) PER SHARE OF COMMON
	STOCK (basic and diluted)			$	(0.02)	$	0.08

The accompanying notes are an integral part of these statements.

IDACORP, Inc.
Consolidated Statements of Operations
(unaudited)

				Six Months Ended June 30,
				2003		2002
				(thousands of dollars except for per
				share amounts)
OPERATING REVENUES:
	Electric utility:
		General business		$	341,675	$	373,684
		Off-system sales			38,447		31,135
		Other revenues			20,928		19,862
			Total electric utility revenues		401,050		424,681
	Energy marketing				2,540		17,931
	Other				8,614		6,813
		Total operating revenues			412,204		449,425

OPERATING EXPENSES:
	Electric utility:
		Purchased power			45,625		61,374
		Fuel expense			49,446		49,636
		Power cost adjustment			77,230		76,225
		Other operations and maintenance			110,122		102,611
		Depreciation			48,413		46,355
		Taxes other than income taxes			10,408		10,346
			Total electric utility expenses		341,244		346,547
	Energy marketing:
		Cost of revenues			3,705		24,467
		Selling, general and administrative			13,184		10,583
		Net (gain) loss on legal disputes			10,938		(2,775)
	Other				17,699		15,603
			Total operating expenses		386,770		394,425

OPERATING INCOME (LOSS):
	Electric utility				59,806		78,134
	Energy marketing				(25,287)		(14,344)
	Other				(9,085)		(8,790)
		Total operating income			25,434		55,000

OTHER INCOME					4,002		7,558

INTEREST EXPENSE AND OTHER:
	Interest on long-term debt				29,642		25,554
	Other interest				2,012		6,572
	Preferred dividends of Idaho Power Company				1,734		2,660
		Total interest expense and other			33,388		34,786

INCOME (LOSS) BEFORE INCOME TAXES					(3,952)		27,772

INCOME TAX EXPENSE					-		-

NET INCOME (LOSS)				$	(3,952)	$	27,772

AVERAGE COMMON SHARES
	OUTSTANDING (000's)				38,169		37,613

EARNINGS (LOSS) PER SHARE OF COMMON
	STOCK (basic and diluted)			$	(0.10)	$	0.74

The accompanying notes are an integral part of these statements.

IDACORP, Inc.
Consolidated Balance Sheets
(unaudited)

			June 30,		December 31,
			2003		2002
ASSETS			(thousands of dollars)

CURRENT ASSETS:
	Cash and cash equivalents		$	20,125	$	42,736
	Receivables:
		Customer		113,272		176,846
		Allowance for uncollectible accounts		(43,048)		(43,311)
		Employee notes		7,849		7,646
		Other		18,969		15,025
	Energy marketing assets			68,006		85,138
	Accrued unbilled revenues			35,404		35,714
	Materials and supplies (at average cost)			22,126		22,812
	Fuel stock (at average cost)			9,619		6,943
	Prepayments			31,582		34,872
	Regulatory assets			15,413		17,147
		Total current assets		299,317		401,568

INVESTMENTS				208,437		206,348

PROPERTY, PLANT AND EQUIPMENT:
	Utility plant in service			3,134,019		3,086,965
	Accumulated provision for depreciation			(1,339,762)		(1,294,961)
		Utility plant in service - net		1,794,257		1,792,004
	Construction work in progress			101,945		96,209
	Utility plant held for future use			2,730		2,335
	Other property, net of accumulated depreciation			11,763		15,950
		Property, plant and equipment - net		1,910,695		1,906,498

OTHER ASSETS:
	American Falls and Milner water rights			31,585		31,585
	Company-owned life insurance			35,460		35,299
	Energy marketing assets - long-term			42,953		64,733
	Regulatory assets			409,452		482,159
	Long-term receivable			44,363		73,941
	Other			54,276		50,507
		Total other assets		618,089		738,224

		TOTAL	$	3,036,538	$	3,252,638

The accompanying notes are an integral part of these statements.

IDACORP, Inc.
Consolidated Balance Sheets
(unaudited)

				June 30,		December 31,
				2003		2002
LIABILITIES AND SHAREHOLDERS' EQUITY				(thousands of dollars)

CURRENT LIABILITIES:
	Current maturities of long-term debt			$	62,788	$	89,592
	Notes payable				119,050		176,200
	Accounts payable				51,539		130,930
	Energy marketing liabilities				30,726		59,917
	Taxes accrued				88,365		49,709
	Interest accrued				14,077		13,639
	Deferred income taxes				25,926		21,384
	Other				30,882		35,119
		Total current liabilities			423,353		576,490

OTHER LIABILITIES:
	Deferred income taxes				536,119		595,639
	Energy marketing liabilities - long-term				52,193		51,761
	Regulatory liabilities				114,663		114,247
	Other				93,402		87,605
		Total other liabilities			796,377		849,252

LONG-TERM DEBT					923,721		898,676

COMMITMENTS AND CONTINGENT LIABILITIES

PREFERRED STOCK OF IDAHO POWER COMPANY					52,562		53,393

SHAREHOLDERS' EQUITY:
	Common stock, no par value (shares authorized 120,000,000;
		38,341,362 and 38,152,436 shares issued, respectively)			474,271		470,361
	Retained earnings				375,875		415,315
	Accumulated other comprehensive income (loss)				(5,083)		(7,109)
	Treasury stock (145,075 and 134,667 shares at cost, respectively)				(4,538)		(3,740)
		Total shareholders' equity			840,525		874,827

			TOTAL	$	3,036,538	$	3,252,638

The accompanying notes are an integral part of these statements.

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

				Six Months Ended
				June 30,
				2003		2002
				(thousands of dollars)
OPERATING ACTIVITIES:
	Net income (loss)			$	(3,952)	$	27,772
	Adjustments to reconcile net income (loss) to net cash provided by
		operating activities:
		Net non-cash loss on legal disputes			10,938		-
		Allowance for uncollectible accounts			(263)		-
		Unrealized (gains) losses from energy marketing activities			11,691		58,165
		Depreciation and amortization			65,744		57,222
		Deferred taxes and investment tax credits			(54,465)		(45,137)
		Accrued PCA costs			75,314		71,892
		Change in:
			Receivables and prepayments		68,929		23,667
			Accrued unbilled revenues		309		(4,315)
			Materials and supplies and fuel stock		(1,990)		517
			Accounts payable and other accrued liabilities		(76,246)		(121,952)
			Taxes receivable/accrued		38,928		67,760
			Other current assets and liabilities		(2,053)		(10,007)
		Other - net			4,596		(1,680)
			Net cash provided by operating activities		137,480		123,904

INVESTING ACTIVITIES:
	Additions to property, plant and equipment				(57,599)		(56,259)
	Investments in low-income housing projects				-		(43,657)
	Other - net				(6,704)		(3,113)
		Net cash used in investing activities			(64,303)		(103,029)

FINANCING ACTIVITIES:
	Proceeds from issuance of first mortgage bonds				140,000		-
	Proceeds from issuance of other long-term debt				25,475		-
	Retirement of first mortgage bonds				(160,000)		(50,000)
	Retirement of other long-term debt				(7,329)		(7,521)
	Retirement of preferred stock of Idaho Power Company				(831)		(121)
	Dividends on common stock				(35,487)		(34,980)
	Change in short-term borrowings				(57,150)		47,650
	Common stock issued				4,123		7,715
	Acquisition of treasury shares				(798)		(826)
	Other - net				(3,791)		(2,374)
		Net cash used in financing activities			(95,788)		(40,457)

Net decrease in cash and cash equivalents					(22,611)		(19,582)

Cash and cash equivalents beginning of period