IDAHO POWER CO - 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, 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 sites: 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 September 30, 2004:

IDACORP, Inc.:	38,192,022
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
FASB	-	Financial Accounting Standards Board
FERC	-	Federal Energy Regulatory Commission
FIN	-	Financial Accounting Standards Board Interpretation
FPA	-	Federal Power Act
FSP	-	Financial Accounting Standards Board Staff Position
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
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
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
RTO	-	Regional Transmission Organization
SCE	-	Southern California Edison
S&P	-	Standard & Poor's Ratings Services
SFAS	-	Statement of Financial Accounting Standards
VIEs	-	Variable Interest Entities

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	7-28
			Report of Independent Registered Public Accounting Firm	29
		Idaho Power Company:
			Consolidated Statements of Income	31-32
			Consolidated Balance Sheets	33-34
			Consolidated Statements of Capitalization	35
			Consolidated Statements of Cash Flows	36
			Consolidated Statements of Comprehensive Income	37
			Notes to Consolidated Financial Statements	38
			Report of Independent Registered Public Accounting Firm	39

	Item 2. Management's Discussion and Analysis of Financial
		Condition and Results of Operations		40-79

	Item 3. Quantitative and Qualitative Disclosures about Market Risk			79

	Item 4. Controls and Procedures			80-81

Part II. Other Information:

	Item 1. Legal Proceedings			81

	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			81

	Item 6. Exhibits			82-88

Signatures				89-90

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,
				2004		2003
				(thousands of dollars except for per
				share amounts)
OPERATING REVENUES:
	Electric utility:
		General business		$	186,687	$	188,247
		Off-system sales			34,969		16,442
		Other revenues			19,532		10,172
			Total electric utility revenues		241,188		214,861
	Energy marketing				(152)		17,193
	Other				5,641		7,174
		Total operating revenues			246,677		239,228

OPERATING EXPENSES:
	Electric utility:
		Purchased power			79,607		77,280
		Fuel expense			28,291		25,606
		Power cost adjustment			19,620		(9,787)
		Other operations and maintenance			63,243		54,276
		Depreciation			25,229		24,439
		Taxes other than income taxes			4,593		5,164
			Total electric utility expenses		220,583		176,978
	Energy marketing:
		Cost of revenues			(2)		(1,733)
		Selling, general and administrative			558		8,070
		Net gain on legal disputes			(3,150)		-
	Other				9,755		7,939
			Total operating expenses		227,744		191,254

OPERATING INCOME (LOSS):
	Electric utility				20,605		37,883
	Energy marketing				2,442		10,856
	Other				(4,114)		(765)
		Total operating income			18,933		47,974

OTHER INCOME					8,102		5,862

OTHER EXPENSES					4,075		3,731

INTEREST EXPENSE AND PREFERRED DIVIDENDS:
	Interest on long-term debt				14,061		14,571
	Other interest				602		407
	Preferred dividends of Idaho Power Company				3,116		847
		Total interest expense and preferred dividends			17,779		15,825

INCOME BEFORE INCOME TAXES					5,181		34,280

INCOME TAX BENEFIT					(20,886)		(12,495)

NET INCOME				$	26,067	$	46,775

AVERAGE COMMON SHARES OUTSTANDING (000's)					38,191		38,242
EARNINGS PER SHARE OF COMMON
	STOCK (basic and diluted)			$	0.68	$	1.22
DIVIDENDS PAID PER SHARE OF COMMON STOCK				$	0.30	$	0.46

The accompanying notes are an integral part of these statements.

IDACORP, Inc.
Consolidated Statements of Income
(unaudited)

				Nine Months Ended September 30,
				2004		2003
				(thousands of dollars except for per
				share amounts)
OPERATING REVENUES:
	Electric utility:
		General business		$	491,149	$	529,922
		Off-system sales			99,899		54,889
		Other revenues			40,653		31,100
			Total electric utility revenues		631,701		615,911
	Energy marketing				(76)		19,733
	Other				15,113		15,788
		Total operating revenues			646,738		651,432

OPERATING EXPENSES:
	Electric utility:
		Purchased power			162,877		122,904
		Fuel expense			77,364		75,052
		Power cost adjustment			30,438		67,443
		Other operations and maintenance			180,515		164,398
		Depreciation			75,459		72,853
		Taxes other than income taxes			15,536		15,572
		Impairment of assets			9,756		-
			Total electric utility expenses		551,945		518,222
	Energy marketing:
		Cost of revenues			(81)		1,972
		Selling, general and administrative			1,620		21,254
		Net (gain) loss on legal disputes			(4,798)		10,938
	Other				27,518		25,637
			Total operating expenses		576,204		578,023

OPERATING INCOME (LOSS):
	Electric utility				79,756		97,689
	Energy marketing				3,183		(14,431)
	Other				(12,405)		(9,849)
		Total operating income			70,534		73,409

OTHER INCOME					31,948		17,462

OTHER EXPENSES					15,253		11,330

INTEREST EXPENSE AND PREFERRED DIVIDENDS:
	Interest on long-term debt				40,628		44,213
	Other interest				2,641		2,418
	Preferred dividends of Idaho Power Company				4,823		2,581
		Total interest expense and preferred dividends			48,092		49,212

INCOME BEFORE INCOME TAXES					39,137		30,329

INCOME TAX BENEFIT					(19,580)		(12,495)

NET INCOME				$	58,717	$	42,824

AVERAGE COMMON SHARES OUTSTANDING (000's)					38,193		38,227
EARNINGS PER SHARE OF COMMON
	STOCK (basic and diluted)			$	1.54	$	1.12
DIVIDENDS PAID PER SHARE OF COMMON STOCK				$	0.90	$	1.39

The accompanying notes are an integral part of these statements.

IDACORP, Inc.
Consolidated Balance Sheets
(unaudited)

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

CURRENT ASSETS:
	Cash and cash equivalents		$	20,949	$	75,159
	Receivables:
		Customer		96,579		93,599
		Allowance for uncollectible accounts		(43,495)		(43,210)
		Employee notes		3,590		3,347
		Other		6,567		8,209
	Energy marketing assets			9,117		4,176
	Accrued unbilled revenues			31,269		30,869
	Materials and supplies (at average cost)			27,194		21,351
	Fuel stock (at average cost)			6,238		6,228
	Prepayments			27,753		27,779
	Regulatory assets			4,949		6,269
		Total current assets		190,710		233,776

INVESTMENTS				191,229		204,474

PROPERTY, PLANT AND EQUIPMENT:
	Utility plant in service			3,288,631		3,220,228
	Accumulated provision for depreciation			(1,310,332)		(1,239,604)
		Utility plant in service - net		1,978,299		1,980,624
	Construction work in progress			152,709		96,091
	Utility plant held for future use			2,540		2,438
	Other property, net of accumulated depreciation			44,016		9,166
		Property, plant and equipment - net		2,177,564		2,088,319

OTHER ASSETS:
	American Falls and Milner water rights			31,585		31,585
	Company-owned life insurance			36,003		35,624
	Energy marketing assets - long-term			17,123		14,358
	Regulatory assets			416,911		427,760
	Long-term receivables			3,106		3,106
	Employee notes			4,157		4,775
	Other			57,531		57,949
		Total other assets		566,416		575,157

		TOTAL	$	3,125,919	$	3,101,726

The accompanying notes are an integral part of these statements.

IDACORP, Inc.
Consolidated Balance Sheets
(unaudited)

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

CURRENT LIABILITIES:
	Current maturities of long-term debt			$	77,510	$	67,923
	Notes payable				82,135		93,650
	Accounts payable				56,121		60,916
	Energy marketing liabilities				9,278		4,317
	Taxes accrued				37,728		35,580
	Interest accrued				22,287		13,741
	Deferred income taxes				3,308		5,639
	Other				22,396		25,557
		Total current liabilities			310,763		307,323

OTHER LIABILITIES:
	Deferred income taxes				532,283		554,715
	Energy marketing liabilities - long-term				17,124		14,393
	Regulatory liabilities				279,894		258,524
	Other				113,226		104,290
		Total other liabilities			942,527		931,922

LONG-TERM DEBT					985,487		945,834

COMMITMENTS AND CONTINGENT LIABILITIES

PREFERRED STOCK OF IDAHO POWER COMPANY					-		52,366

SHAREHOLDERS' EQUITY:
	Common stock, no par value (shares authorized 120,000,000; 38,348,758
		and 38,341,358 shares issued, respectively)			474,666		472,902
	Retained earnings				421,504		397,167
	Accumulated other comprehensive loss				(3,525)		(2,630)
	Treasury stock (156,736 and 110,748 shares at cost, respectively)				(4,578)		(3,158)
	Unearned compensation				(925)		-
		Total shareholders' equity			887,142		864,281

			TOTAL	$	3,125,919	$	3,101,726

The accompanying notes are an integral part of these statements.

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

				Nine Months Ended
				September 30,
				2004		2003
				(thousands of dollars)
OPERATING ACTIVITIES:
	Net income			$	58,717	$	42,824
	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			262		(254)
		Impairment of assets			9,756		-
		Unrealized losses from energy marketing activities			-		42,517
		Depreciation and amortization			93,335		97,802
		Deferred taxes and investment tax credits			(25,918)		(71,466)
		Accrued power cost adjustment costs			29,100		65,446
		Gain on sale of non-utility assets			(4,557)		-
		Gain on extinguishment of debt			(7,188)		-
		Change in:
			Receivables and prepayments		(1,613)		71,248
			Accrued unbilled revenues		(401)		7,258
			Materials and supplies and fuel stock		(577)		3,773
			Accounts payable and other accrued liabilities		(6,800)		(71,355)
			Taxes receivable/accrued		2,148		49,453
			Other current liabilities		7,438		978
		Other assets			(9,283)		2,369
		Other liabilities			10,993		5,652
			Net cash provided by operating activities		155,412		257,183

INVESTING ACTIVITIES:
	Additions to property, plant and equipment				(145,061)		(97,567)
	Sale of non-utility assets				5,389		-
	Other assets				246		(3,198)
	Other liabilities				(1,552)		(581)
		Net cash used in investing activities			(140,978)		(101,346)

FINANCING ACTIVITIES:
	Issuance of first mortgage bonds