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, 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 September 30, 2003:

IDACORP, Inc.:	38,206,621
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

AG	-	California Attorney General
ALJ	-	Administrative Law Judge
ARO	-	Asset Retirement Obligation
BMPP	-	Bennett Mountain Power Plant
Cal ISO	-	California Independent System Operator
CalPX	-	California Power Exchange
EPS	-	Earnings per share
FASB	-	Financial Accounting Standards Board
FERC	-	Federal Energy Regulatory Commission
FIN	-	FASB Interpretation
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
MD&A	-	Management's Discussion and Analysis
MMbtu	-	Million British Thermal Units
MMCP	-	Mitigated Market Clearing Price
MW	-	Megawatt
MWh	-	Megawatt-hour
NPC	-	Nevada Power Company
OPUC	-	Oregon Public Utility Commission
PCA	-	Power Cost Adjustment
PM&E	-	Protection, Mitigation and Enhancement
PMC	-	Plaintiffs' Master Complaint
PPA	-	Power Purchase Agreement
PPLM	-	PPL Montana, LLC
REA	-	Rural Electrification Administration
RFP	-	Request for Proposal
RMC	-	Risk Management Committee
RTOs	-	Regional Transmission Organizations
S&P	-	Standard & Poor's
SCE	-	Southern California Edison
SET	-	Sempra Energy Trading
SFAS	-	Statement of Financial Accounting Standards
WSPP	-	Western Systems Power Pool

INDEX

Page

Part I. Financial Information:
	Item 1. Financial Statements (unaudited)
		IDACORP, Inc.:
			Consolidated Statements of Income	1-2
			Consolidated Balance Sheets	3-4
			Consolidated Statements of Cash Flows	5
			Consolidated Statements of Comprehensive Income	6
			Notes to Consolidated Financial Statements	7-24
			Independent Accountants' Report	25
		Idaho Power Company:
			Consolidated Statements of Income	27-28
			Consolidated Balance Sheets	29-30
			Consolidated Statements of Capitalization	31
			Consolidated Statements of Cash Flows	32
			Consolidated Statements of Comprehensive Income	33
			Notes to Consolidated Financial Statements	34-35
			Independent Accountants' Report	36

	Item 2. Management's Discussion and Analysis of Financial
		Condition and Results of Operations		37-62

	Item 3. Quantitative and Qualitative Disclosures about Market Risk			62-63

	Item 4. Controls and Procedures			63-64

Part II. Other Information:

	Item 1. Legal Proceedings			64

	Item 5. Other Information			64

	Item 6. Exhibits and Reports on Form 8-K			64-69

Signatures				70-71

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,
				2003		2002
				(thousands of dollars except for per
				share amounts)
OPERATING REVENUES:
	Electric utility:
		General business		$	188,247	$	216,452
		Off-system sales			16,442		10,859
		Other revenues			10,172		10,217
			Total electric utility revenues		214,861		237,528
	Energy marketing				17,193		18,917
	Other				7,174		3,131
		Total operating revenues			239,228		259,576

OPERATING EXPENSES:
	Electric utility:
		Purchased power			77,280		50,240
		Fuel expense			25,606		26,529
		Power cost adjustment			(9,787)		57,153
		Other operations and maintenance			54,276		53,139
		Depreciation			24,439		23,577
		Taxes other than income taxes			5,164		5,069
			Total electric utility expenses		176,978		215,707
	Energy marketing:
		Cost of revenues			(1,733)		12,335
		Selling, general and administrative			8,070		5,887
	Other				7,939		9,027
			Total operating expenses		191,254		242,956

OPERATING INCOME (LOSS):
	Electric utility				37,883		21,821
	Energy marketing				10,856		695
	Other				(765)		(5,896)
		Total operating income			47,974		16,620

OTHER INCOME (EXPENSE)					2,131		(1,373)

INTEREST EXPENSE AND OTHER:
	Interest on long-term debt				14,571		13,089
	Other interest				407		2,858
	Preferred dividends of Idaho Power Company				847		919
		Total interest expense and other			15,825		16,866

INCOME (LOSS) BEFORE INCOME TAXES					34,280		(1,619)

INCOME TAX EXPENSE (BENEFIT)					(12,495)		(38,527)

NET INCOME				$	46,775	$	36,908

AVERAGE COMMON SHARES
	OUTSTANDING (000's)				38,200		37,771

EARNINGS PER SHARE OF COMMON
	STOCK (basic and diluted)			$	1.22	$	0.98

The accompanying notes are an integral part of these statements.

IDACORP, Inc.
Consolidated Statements of Income
(unaudited)

				Nine Months Ended September 30,
				2003		2002
				(thousands of dollars except for per
				share amounts)
OPERATING REVENUES:
	Electric utility:
		General business		$	529,922	$	590,136
		Off-system sales			54,889		41,994
		Other revenues			31,100		30,079
			Total electric utility revenues		615,911		662,209
	Energy marketing				19,733		36,848
	Other				15,788		9,944
		Total operating revenues			651,432		709,001

OPERATING EXPENSES:
	Electric utility:
		Purchased power			122,904		111,614
		Fuel expense			75,052		76,165
		Power cost adjustment			67,443		133,378
		Other operations and maintenance			164,398		155,750
		Depreciation			72,853		69,932
		Taxes other than income taxes			15,572		15,415
			Total electric utility expenses		518,222		562,254
	Energy marketing:
		Cost of revenues			1,972		36,802
		Selling, general and administrative			21,254		16,470
		Net (gain) loss on legal disputes			10,938		(2,775)
	Other				25,637		24,630
			Total operating expenses		578,023		637,381

OPERATING INCOME (LOSS):
	Electric utility				97,689		99,955
	Energy marketing				(14,431)		(13,649)
	Other				(9,849)		(14,686)
		Total operating income			73,409		71,620

OTHER INCOME					6,132		6,348

INTEREST EXPENSE AND OTHER:
	Interest on long-term debt				44,213		40,170
	Other interest				2,418		8,065
	Preferred dividends of Idaho Power Company				2,581		3,579
		Total interest expense and other			49,212		51,814

INCOME BEFORE INCOME TAXES					30,329		26,154

INCOME TAX EXPENSE (BENEFIT)					(12,495)		(38,527)

NET INCOME				$	42,824	$	64,681

AVERAGE COMMON SHARES
	OUTSTANDING (000's)				38,179		37,665

EARNINGS PER SHARE OF COMMON
	STOCK (basic and diluted)			$	1.12	$	1.72

The accompanying notes are an integral part of these statements.

IDACORP, Inc.
Consolidated Balance Sheets
(unaudited)

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

CURRENT ASSETS:
	Cash and cash equivalents		$	26,194	$	42,736
	Receivables:
		Customer		115,572		176,846
		Allowance for uncollectible accounts		(43,057)		(43,311)
		Employee notes		8,113		7,646
		Other		12,877		11,881
	Energy marketing assets			1,775		85,138
	Accrued unbilled revenues			28,456		35,714
	Materials and supplies (at average cost)			21,595		22,812
	Fuel stock (at average cost)			4,387		6,943
	Prepayments			29,552		34,872
	Regulatory assets			7,017		17,147
		Total current assets		212,481		398,424

INVESTMENTS				203,755		206,348

PROPERTY, PLANT AND EQUIPMENT:
	Utility plant in service			3,164,212		3,086,965
	Accumulated provision for depreciation			(1,363,765)		(1,294,961)
		Utility plant in service - net		1,800,447		1,792,004
	Construction work in progress			110,552		96,209
	Utility plant held for future use			2,705		2,335
	Other property, net of accumulated depreciation			10,667		15,950
		Property, plant and equipment - net		1,924,371		1,906,498

OTHER ASSETS:
	American Falls and Milner water rights			31,585		31,585
	Company-owned life insurance			35,748		35,299
	Energy marketing assets - long-term			17,275		64,733
	Regulatory assets			424,961		482,159
	Long-term receivable			43,457		73,941
	Other			54,534		50,507
		Total other assets		607,560		738,224

		TOTAL	$	2,948,167	$	3,249,494

The accompanying notes are an integral part of these statements.

IDACORP, Inc.
Consolidated Balance Sheets
(unaudited)

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

CURRENT LIABILITIES:
	Current maturities of long-term debt			$	70,183	$	89,592
	Notes payable				25,044		176,200
	Accounts payable				54,305		130,930
	Energy marketing liabilities				4,861		59,917
	Taxes accrued				96,019		46,565
	Interest accrued				22,649		13,639
	Deferred income taxes				4,869		21,203
	Other				27,040		35,119
		Total current liabilities			304,970		573,165

OTHER LIABILITIES:
	Deferred income taxes				538,976		595,820
	Energy marketing liabilities - long-term				17,275		51,761
	Regulatory liabilities				114,126		114,247
	Other				98,891		87,605
		Total other liabilities			769,268		849,433

LONG-TERM DEBT					951,956		898,676

COMMITMENTS AND CONTINGENT LIABILITIES

PREFERRED STOCK OF IDAHO POWER COMPANY					52,484		53,393

SHAREHOLDERS' EQUITY:
	Common stock, no par value (shares authorized 120,000,000;
		38,341,358 and 38,152,436 shares issued, respectively)			473,884		470,361
	Retained earnings				404,877		415,315
	Accumulated other comprehensive income (loss)				(4,734)		(7,109)
	Treasury stock at cost (134,737 and 134,667 shares, respectively)				(4,538)		(3,740)
		Total shareholders' equity			869,489		874,827

			TOTAL	$	2,948,167	$	3,249,494

The accompanying notes are an integral part of these statements.

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

				Nine Months Ended
				September 30,
				2003		2002
				(thousands of dollars)
OPERATING ACTIVITIES:
	Net income			$	42,824	$	64,681
	Adjustments to reconcile net income to net cash provided by
		operating activities:
		Net non-cash loss on legal disputes			10,938		-
		Allowance for uncollectible accounts			(254)		17
		Unrealized losses from energy marketing activities			42,517		37,325
		Depreciation and amortization			97,802		91,193
		Deferred taxes and investment tax credits			(71,466)		(91,729)
		Accrued PCA costs			65,446		128,215
		Change in:
			Receivables and prepayments		71,248		42,914
			Accrued unbilled revenues		7,258		8,658
			Materials and supplies and fuel stock		3,773		(791)
			Accounts payable and other accrued liabilities		(71,355)		(148,962)
			Taxes receivable/accrued		49,453		79,958
			Other current assets and liabilities		978		26,723
		Other - net			8,021		4,597
			Net cash provided by operating activities		257,183		242,799

INVESTING ACTIVITIES:
	Additions to property, plant and equipment				(97,567)		(88,797)
	Investments in low-income housing projects				-		(43,843)
	Other - net				(3,779)		(3,565)
		Net cash used in investing activities			(101,346)		(136,205)

FINANCING ACTIVITIES:
	Proceeds from issuance of first mortgage bonds				140,000		-
	Proceeds from issuance of other long-term debt				65,492		-
	Retirement of first mortgage bonds				(160,000)		(50,000)
	Retirement of other long-term debt				(11,769)		(11,979)
	Retirement of preferred stock of Idaho Power Company				(909)		(50,402)
	Dividends on common stock				(53,260)		(52,545)
	Change in short-term borrowings				(151,175)		53,241
	Common stock issued				4,123		12,140
	Acquisition of treasury shares				(798)		(998)
	Other - net				(4,083)		(3,072)
		Net cash used in financing activities			(172,379)		(103,615)

Net increase (decrease) in cash and cash equivalents					(16,542)		2,979

Cash and cash equivalents beginning of period					42,736		66,688
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