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 March 31, 2005

	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, zip code 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
	Websites: 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 March 31, 2005:

IDACORP, Inc.:	42,195,500
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.

Idaho Power Company meets the conditions set forth in General Instructions H(1)(a) and (b) of Form 10-Q and is therefore filing this Form with the reduced disclosure format.

COMMONLY USED TERMS

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	-	Financial Accounting Standards Board Interpretation
FSP	-	Financial Accounting Standards Board Staff Position
IE	-	IDACORP Energy, a non-operating 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
Moody's	-	Moody's Investors Service
MW	-	Megawatt
MWh	-	Megawatt-hour
OPUC	-	Oregon Public Utility Commission
PCA	-	Power Cost Adjustment
PURPA	-	Public Utilities Regulatory Policy Act of 1978
RTO	-	Regional Transmission Organization
S&P	-	Standard & Poor's Ratings Services
SFAS	-	Statement of Financial Accounting Standards

INDEX

Page
Part I. Financial Information:
	Item 1. Financial Statements (unaudited)
		IDACORP, Inc.:
			Consolidated Statements of Income	1
			Consolidated Balance Sheets	2-3
			Consolidated Statements of Cash Flows	4
			Consolidated Statements of Comprehensive Income	5
		Idaho Power Company:
			Consolidated Statements of Income	7
			Consolidated Balance Sheets	8-9
			Consolidated Statements of Capitalization	10
			Consolidated Statements of Cash Flows	11
			Consolidated Statements of Comprehensive Income	12
		Notes to Consolidated Financial Statements		13-29
		Reports of Independent Registered Public Accounting Firm		30-31

	Item 2. Management's Discussion and Analysis of Financial
		Condition and Results of Operations		32-60

	Item 3. Quantitative and Qualitative Disclosures About Market Risk			61

	Item 4. Controls and Procedures			62

Part II. Other Information:

	Item 1. Legal Proceedings			62

	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			62-63

	Item 5. Other Information			63

	Item 6. Exhibits			63-68

Signatures				69

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.

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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
IDACORP, Inc.
Consolidated Statements of Income
(unaudited)

				Three Months Ended March 31,
				2005		2004
				(thousands of dollars except for per
				share amounts)
Operating Revenues:
	Electric utility:
		General business		$	146,370	$	146,157
		Off-system sales			32,212		28,121
		Other revenues			12,286		9,325
			Total electric utility revenues		190,868		183,603
	Other				5,314		4,586
		Total operating revenues			196,182		188,189

Operating Expenses:
	Electric utility:
		Purchased power			44,078		18,505
		Fuel expense			25,096		27,504
		Power cost adjustment			(4,417)		12,564
		Other operations and maintenance			55,098		54,146
		Depreciation			24,919		24,890
		Taxes other than income taxes			5,227		5,565
			Total electric utility expenses		150,001		143,174
	Other				11,284		8,821
			Total operating expenses		161,285		151,995

Operating Income (Loss):
	Electric utility				40,867		40,429
	Other				(5,970)		(4,235)
		Total operating income			34,897		36,194

Other Income					4,273		3,018

Earnings of Unconsolidated Equity-method Investments					663		614

Other Expenses					1,103		822

Interest Expense and Preferred Dividends:
	Interest on long-term debt				14,075		13,353
	Other interest				455		453
	Preferred dividends of Idaho Power Company				-		854
		Total interest expense and preferred dividends			14,530		14,660

Income Before Income Taxes					24,200		24,344

Income Tax Expense					1,134		4,685

Net Income				$	23,066	$	19,659

Weighted Average Common Shares Outstanding (000's)					42,210		38,200
Earnings Per Share of Common Stock (basic and diluted)				$	0.55	$	0.51
Dividends Paid Per Share of Common Stock				$	0.30	$	0.30

The accompanying notes are an integral part of these statements.

IDACORP, Inc.
Consolidated Balance Sheets
(unaudited)

			March 31,		December 31,
			2005		2004
Assets			(thousands of dollars)

Current Assets:
	Cash and cash equivalents		$	61,384	$	23,403
	Receivables:
		Customer		93,562		92,258
		Allowance for uncollectible accounts		(42,631)		(43,108)
		Employee notes		3,253		3,523
		Other		5,684		8,806
	Energy marketing assets			17,490		9,203
	Accrued unbilled revenues			24,908		33,832
	Materials and supplies (at average cost)			31,054		28,008
	Fuel stock (at average cost)			12,920		6,539
	Prepayments			20,901		30,035
	Deferred income taxes			25,192		23,407
	Regulatory assets			3,396		5,510
		Total current assets		257,113		221,416

Investments				188,018		223,061

Property, Plant and Equipment:
	Utility plant in service			3,400,764		3,324,816
	Accumulated provision for depreciation			(1,334,096)		(1,316,125)
		Utility plant in service - net		2,066,668		2,008,691
	Construction work in progress			110,387		152,427
	Utility plant held for future use			2,611		2,636
	Other property, net of accumulated depreciation			44,664		45,708
		Property, plant and equipment - net		2,224,330		2,209,462

Other Assets:
	American Falls and Milner water rights			31,585		31,585
	Company-owned life insurance			35,738		35,765
	Energy marketing assets - long-term			26,124		16,635
	Regulatory assets			437,882		433,271
	Long-term receivables (net of allowance of $2,578)			3,343		2,895
	Employee notes			3,490		3,746
	Goodwill			13,659		13,659
	Other			44,113		42,677
		Total other assets		595,934		580,233

		Total	$	3,265,395	$	3,234,172

The accompanying notes are an integral part of these statements.

IDACORP, Inc.
Consolidated Balance Sheets
(unaudited)

				March 31,		December 31,
				2005		2004
Liabilities and Shareholders' Equity				(thousands of dollars)

Current Liabilities:
	Current maturities of long-term debt			$	77,811	$	78,603
	Notes payable				53,700		36,270
	Accounts payable				52,574		79,156
	Energy marketing liabilities				17,986		9,420
	Taxes accrued				48,248		46,318
	Interest accrued				22,473		14,426
	Other				25,787		21,265
		Total current liabilities			298,579		285,458

Other Liabilities:
	Deferred income taxes				557,320		555,774
	Energy marketing liabilities - long-term				26,124		16,635
	Regulatory liabilities				277,168		275,854
	Other				110,667		112,616
		Total other liabilities			971,279		960,879

Long-Term Debt					977,563		979,549

Commitments and Contingencies

Shareholders' Equity:
	Common stock, no par value (shares authorized 120,000,000; 42,436,741
		and 42,373,758 shares issued, respectively)			592,422		589,440
	Retained earnings				434,713		424,312
	Accumulated other comprehensive loss				(1,776)		(888)
	Treasury stock (241,241 and 156,741 shares at cost, respectively)				(7,385)		(4,578)
		Total shareholders' equity			1,017,974		1,008,286

			Total	$	3,265,395	$	3,234,172

The accompanying notes are an integral part of these statements.

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

				Three Months Ended
				March 31,
				2005		2004
				(thousands of dollars)
Operating Activities:
	Net income			$	23,066	$	19,659
	Adjustments to reconcile net income to net cash provided by
		operating activities:
		Unrealized losses from energy marketing activities			279		-
		Depreciation and amortization			30,611		30,667
		Deferred taxes and investment tax credits			2,644		(1,498)
		Changes in regulatory assets and liabilities			(7,873)		12,488
		Change in:
			Accounts receivables and prepayments		10,316		(4,614)
			Accounts payable and other accrued liabilities		(26,586)		(27,077)
			Taxes receivable/accrued		1,930		10,303
			Other current assets		247		7,310
			Other current liabilities		11,824		7,319
		Other assets			(4,001)		361
		Other liabilities			1,140		2,996
			Net cash provided by operating activities		43,597		57,914

Investing Activities:
	Additions to property, plant and equipment				(40,725)		(38,023)
	Sale of non-utility assets				591		9
	Purchase of available-for-sale securities				(74,606)		(4,388)
	Sale of available-for-sale securities				106,915		5,111
	Purchase of held-to-maturity securities				(787)		-
	Maturity of held-to-maturity securities				1,153		701
	Other assets				2		95
	Other liabilities				-		(565)
		Net cash used in investing activities			(7,457)		(37,060)

Financing Activities:
	Issuance of long-term debt				-		50,000
	Retirement of long-term debt				(2,832)		(51,978)
	Dividends on common stock				(12,665)		(11,466)
	Change in short-term borrowings				17,430		(1,550)
	Acquisition of treasury shares				-		(1,420)
	Other assets				(92)		45
	Other liabilities				-		(7)
		Net cash provided by (used in) financing activities			1,841		(16,376)

Net increase in cash and cash equivalents					37,981		4,478

Cash and cash equivalents beginning of period					23,403		75,159

Cash and cash equivalents end of period				$	61,384	$	79,637

Supplemental Disclosure of Cash Flow Information:
	Cash paid during the period for:
		Income taxes		$	2	$	1
		Interest (net of amount capitalized)		$	5,859	$	4,738

The accompanying notes are an integral part of these statements.

IDACORP, Inc.
Consolidated Statements of Comprehensive Income
(unaudited)

				Three Months Ended
				March 31,
				2005		2004
				(thousands of dollars)

Net Income				$	23,066	$	19,659

Other Comprehensive Income (Loss):
	Unrealized gains (losses) on securities:
		Unrealized holding gains (losses) arising during the period,
			net of tax of ($274) and $349		(524)		615
		Reclassification adjustment for gains included
			in net income, net of tax of ($234) and ($164)		(364)		(255)
			Net unrealized gains (losses)		(888)		360

Total Comprehensive Income				$	22,178	$	20,019

The accompanying notes are an integral part of these statements.

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Idaho Power Company
Consolidated Statements of Income
(unaudited)

			Three Months Ended
			March 31,
			2005		2004
			(thousands of dollars)
Operating Revenues:
	General business		$	146,370	$	146,157
	Off-system sales			32,212		28,121
	Other revenues			11,878		9,048
		Total operating revenues		190,460		183,326

Operating Expenses:
	Operation:
		Purchased power		44,078		18,505
		Fuel expense		25,096		27,504
		Power cost adjustment		(4,417)		12,564
		Other		41,219		39,623
	Maintenance			13,441		13,821
	Depreciation			24,919		24,890
	Taxes other than income taxes			5,227		5,565
		Total operating expenses		149,563		142,472

Income from Operations				40,897		40,854

Other Income (Expense):
	Allowance for equity funds used during construction			1,455		1,002
	Earnings of unconsolidated equity-method investments			3,901		3,607
	Other income			2,705		2,135
	Other expense			(1,677)		(1,586)
		Total other income		6,384		5,158

Interest Charges:
	Interest on long-term debt			13,176		12,336
	Other interest			860		999
	Allowance for borrowed funds used during construction			(736)		(755)
		Total interest charges		13,300		12,580

Income Before Income Taxes				33,981		33,432

Income Tax Expense				12,472		13,169

Net Income				21,509		20,263

	Dividends on Preferred Stock			-		854

Earnings on Common Stock			$ <

Three Months Ended