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, 2004

	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, address of principal	Identification
Number	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
	(208) 388-2200
	State of Incorporation: Idaho
	Web site: www.idacorpinc.com
www.idahopower.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 registrants were required to file such reports), and (2) have 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, 2004:

IDACORP, Inc.:	38,188,622
Idaho Power Company:	39,150,812, 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
AG	-	Attorney General
AIRs	-	Additional Information Requests
ALJ	-	Administrative Law Judge
ASRs	-	Additional Study Requests
Cal ISO	-	California Independent System Operator
CalPX	-	California Power Exchange
CPUC	-	California Public Utilities Commission
EPS	-	Earnings per share
ESA	-	Endangered Species Act
FERC	-	Federal Energy Regulatory Commission
FIN	-	Financial Accounting Standards Board 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, a subsidiary of IDACORP, Inc.
IPC	-	Idaho Power Company, a subsidiary of IDACORP, Inc.
IPUC	-	Idaho Public Utilities Commission
IRP	-	Integrated Resource Plan
maf	-	Million acre-feet
MD&A	-	Management's Discussion and Analysis of Financial Condition and
			Results of Operations
MMCP	-	Mitigated Market Clearing Price
Moody's	-	Moody's Investors Service
MW	-	Megawatt
MWh	-	Megawatt-hour
NMFS	-	National Marine Fisheries Service
NPC	-	Nevada Power Company
OPUC	-	Oregon Public Utility Commission
PCA	-	Power Cost Adjustment
PG&E	-	Pacific Gas and Electric Company
PM&E	-	Protection, Mitigation and Enhancement
PMC	-	Plaintiff's Master Complaint
REA	-	Rural Electrification Administration
RTOs	-	Regional Transmission Organizations
SCE	-	Southern California Edison
S&P	-	Standard & Poor's Ratings Services
SFAS	-	Statement of Financial Accounting Standards
VIEs	-	Variable Interest Entities
WSPP	-	Western Systems Power Pool

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	7-25
			Report of Independent Registered Public Accounting Firm	26
		Idaho Power Company:
			Consolidated Statements of Income	28-29
			Consolidated Balance Sheets	30-31
			Consolidated Statements of Capitalization	32
			Consolidated Statements of Cash Flows	33
			Consolidated Statements of Comprehensive Income	34
			Notes to Consolidated Financial Statements	35
			Report of Independent Registered Public Accounting Firm	36

	Item 2. Management's Discussion and Analysis of Financial
		Condition and Results of Operations		37-70

	Item 3. Quantitative and Qualitative Disclosures about Market Risk			70

	Item 4. Controls and Procedures			71

Part II. Other Information:

	Item 1. Legal Proceedings			72

	Item 2. Changes in Securities, Use of Proceeds and Issuer Purchases of Equity
		Securities		72

	Item 4. Submission of Matters to a Vote of Security Holders			73-74

	Item 5. Other Information			74-75

	Item 6. Exhibits and Reports on Form 8-K			75-81

Signatures				82-83

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,
				2004		2003
				(thousands of dollars except for per
				share amounts)
OPERATING REVENUES:
	Electric utility:
		General business		$	158,305	$	166,613
		Off-system sales			36,809		19,839
		Other revenues			11,795		11,176
			Total electric utility revenues		206,909		197,628
	Energy marketing				(9)		(1,053)
	Other				4,972		3,701
		Total operating revenues			211,872		200,276

OPERATING EXPENSES:
	Electric utility:
		Purchased power			64,766		32,019
		Fuel expense			21,569		23,908
		Power cost adjustment			(1,746)		25,383
		Other operations and maintenance			63,193		59,537
		Depreciation			25,271		24,279
		Taxes other than income taxes			5,378		5,251
		Impairment of assets			9,756		-
			Total electric utility expenses		188,187		170,377
	Energy marketing:
		Cost of revenues			-		(15)
		Selling, general and administrative			543		6,481
		Net gain on legal disputes			(1,648)		-
	Other				9,383		9,433
			Total operating expenses		196,465		186,276

OPERATING INCOME (LOSS):
	Electric utility				18,722		27,251
	Energy marketing				1,096		(7,519)
	Other				(4,411)		(5,732)
		Total operating income			15,407		14,000

OTHER INCOME					17,491		5,448

OTHER EXPENSES					7,632		4,075

INTEREST EXPENSE AND PREFERRED DIVIDENDS:
	Interest on long-term debt				13,215		14,449
	Other interest				1,585		937
	Preferred dividends of Idaho Power Company				853		866
		Total interest expense and preferred dividends			15,653		16,252

INCOME (LOSS) BEFORE INCOME TAXES					9,613		(879)

INCOME TAX BENEFIT					(3,379)		-

NET INCOME (LOSS)				$	12,992	$	(879)

AVERAGE COMMON SHARES OUTSTANDING (000's)					38,189		38,247
EARNINGS (LOSS) PER SHARE OF COMMON
	STOCK (basic and diluted)			$	0.34	$	(0.02)

The accompanying notes are an integral part of these statements.

IDACORP, Inc.
Consolidated Statements of Operations
(unaudited)

				Six Months Ended June 30,
				2004		2003
				(thousands of dollars except for per
				share amounts)
OPERATING REVENUES:
	Electric utility:
		General business		$	304,462	$	341,675
		Off-system sales			64,930		38,447
		Other revenues			21,120		20,928
			Total electric utility revenues		390,512		401,050
	Energy marketing				77		2,540
	Other				9,472		8,614
		Total operating revenues			400,061		412,204

OPERATING EXPENSES:
	Electric utility:
		Purchased power			83,270		45,625
		Fuel expense			49,073		49,446
		Power cost adjustment			10,818		77,230
		Other operations and maintenance			117,340		110,122
		Depreciation			50,161		48,413
		Taxes other than income taxes			10,943		10,408
		Impairment of assets			9,756		-
			Total electric utility expenses		331,361		341,244
	Energy marketing:
		Cost of revenues			(79)		3,705
		Selling, general and administrative			1,064		13,184
		Net (gain) loss on legal disputes			(1,649)		10,938
	Other				17,763		17,699
			Total operating expenses		348,460		386,770

OPERATING INCOME (LOSS):
	Electric utility				59,151		59,806
	Energy marketing				741		(25,287)
	Other				(8,291)		(9,085)
		Total operating income			51,601		25,434

OTHER INCOME					23,847		11,600

OTHER EXPENSES					11,179		7,598

INTEREST EXPENSE AND PREFERRED DIVIDENDS:
	Interest on long-term debt				26,568		29,642
	Other interest				2,037		2,012
	Preferred dividends of Idaho Power Company				1,707		1,734
		Total interest expense and preferred dividends			30,312		33,388

INCOME (LOSS) BEFORE INCOME TAXES					33,957		(3,952)

INCOME TAX EXPENSE					1,306		-

NET INCOME (LOSS)				$	32,651	$	(3,952)

AVERAGE COMMON SHARES OUTSTANDING (000's)					38,194		38,220
EARNINGS (LOSS) PER SHARE OF COMMON
	STOCK (basic and diluted)			$	0.85	$	(0.10)

The accompanying notes are an integral part of these statements.

IDACORP, Inc.
Consolidated Balance Sheets
(unaudited)

			June 30,		December 31,
			2004		2003
ASSETS			(thousands of dollars)

CURRENT ASSETS:
	Cash and cash equivalents		$	17,234	$	75,159
	Receivables:
		Customer		93,579		93,599
		Allowance for uncollectible accounts		(43,406)		(43,210)
		Employee notes		3,637		3,347
		Other		7,145		8,209
	Energy marketing assets			8,739		4,176
	Accrued unbilled revenues			40,492		30,869
	Materials and supplies (at average cost)			27,861		21,351
	Fuel stock (at average cost)			7,876		6,228
	Prepayments			30,945		27,779
	Regulatory assets			4,226		6,269
		Total current assets		198,328		233,776

INVESTMENTS				196,622		204,474

PROPERTY, PLANT AND EQUIPMENT:
	Utility plant in service			3,259,287		3,220,228
	Accumulated provision for depreciation			(1,289,868)		(1,239,604)
		Utility plant in service - net		1,969,419		1,980,624
	Construction work in progress			130,941		96,091
	Utility plant held for future use			2,468		2,438
	Other property, net of accumulated depreciation			43,829		9,166
		Property, plant and equipment - net		2,146,657		2,088,319

OTHER ASSETS:
	American Falls and Milner water rights			31,585		31,585
	Company-owned life insurance			35,676		35,624
	Energy marketing assets - long-term			17,907		14,358
	Regulatory assets			414,717		427,760
	Long-term receivables			3,106		3,106
	Employee notes			4,370		4,775
	Other			57,719		57,949
		Total other assets		565,080		575,157

		TOTAL	$	3,106,687	$	3,101,726

The accompanying notes are an integral part of these statements.

IDACORP, Inc.
Consolidated Balance Sheets
(unaudited)

				June 30,		December 31,
				2004		2003
LIABILITIES AND SHAREHOLDERS' EQUITY				(thousands of dollars)

CURRENT LIABILITIES:
	Current maturities of long-term debt			$	17,443	$	67,923
	Notes payable				77,895		93,650
	Accounts payable				51,297		60,916
	Energy marketing liabilities				8,411		4,317
	Taxes accrued				49,290		35,580
	Interest accrued				13,273		13,741
	Deferred income taxes				3,059		5,639
	Other				32,917		25,557
		Total current liabilities			253,585		307,323

OTHER LIABILITIES:
	Deferred income taxes				534,989		554,715
	Energy marketing liabilities - long-term				17,976		14,393
	Regulatory liabilities				261,788		258,524
	Other				117,869		104,290
		Total other liabilities			932,622		931,922

LONG-TERM DEBT					995,210		945,834

COMMITMENTS AND CONTINGENT LIABILITIES

PREFERRED STOCK OF IDAHO POWER COMPANY					52,299		52,366

SHAREHOLDERS' EQUITY:
	Common stock, no par value (shares authorized 120,000,000; 38,345,358
		and 38,341,358 shares issued, respectively)			474,424		472,902
	Retained earnings				406,894		397,167
	Accumulated other comprehensive loss				(2,753)		(2,630)
	Treasury stock (156,736 and 110,748 shares at cost, respectively)				(4,578)		(3,158)
	Unearned compensation				(1,016)		-
		Total shareholders' equity			872,971		864,281

			TOTAL	$	3,106,687	$	3,101,726

The accompanying notes are an integral part of these statements.

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

				Six Months Ended
				June 30,
				2004		2003
				(thousands of dollars)
OPERATING ACTIVITIES:
	Net income (loss)			$	32,651	$	(3,952)
	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			180		(263)
		Impairment of assets			9,756		-
		Unrealized losses from energy marketing activities			-		11,691
		Depreciation and amortization			61,861		65,744
		Deferred taxes and investment tax credits			(21,111)		(54,465)
		Accrued power cost adjustment costs			9,946		75,314
		Gain on sale of non-utility assets			(4,780)		-
		Gain on extinguishment of debt			(7,188)		-
		Change in:
			Receivables and prepayments		(2,208)		69,052
			Accrued unbilled revenues		(9,623)		309
			Materials and supplies and fuel stock		(2,882)		(1,990)
			Accounts payable and other accrued liabilities		(10,758)		(76,246)
			Taxes receivable/accrued		13,710		38,928
			Other current liabilities		5,391		(2,053)
		Other assets			(947)		3,264
		Other liabilities			16,257		1,332
			Net cash provided by operating activities		90,255		137,603

INVESTING ACTIVITIES:
	Additions to property, plant and equipment				(89,921)		(57,599)
	Sale of non-utility assets				5,387		-
	Other assets				(1,180)		(7,017)
	Other liabilities				(1,907)		190
		Net cash used in investing activities			(87,621)		(64,426)

FINANCING ACTIVITIES: