Idaho Power Files General Rate Increase Request in Oregon

BOISE, July 31 /PRNewswire-FirstCall/ -- IDACORP, Inc.'s (NYSE: IDA) principal subsidiary Idaho Power Company today filed an application with the Public Utility Commission of Oregon (OPUC) to increase the base rate it charges Oregon customers for electricity an average of 22.6 percent. If approved, Idaho Power revenues would increase $7.3 million annually. The OPUC now has 10 months to consider Idaho Power's request.

"Idaho Power is asking the OPUC for authorization to raise the base rates it charges Oregon retail customers for the first time in five years," said Director of State Regulation, Greg Said. "The company has increased rates related to power supply expenses during these years; however, over that period we made significant investments that are not reflected in rates. These infrastructure investments ensure we can provide reliable power on-demand to our current and future customers. This request seeks to recover those investments."

From 2003 to 2008, exclusive of depreciation, Idaho Power's electric plant investment increased approximately $800 million, including:

• Two simple-cycle gas-fired peaking plants;
• New construction at 21 substation sites;
• Addition of 1,975 pole-miles of distribution line; and
• Capacity expansion or new construction affecting 95 pole-miles of transmission line.
  

Summary of General Rate Case Components

                                                        2009 Test Year
          Rate Base (Oregon)                            $110.8 Million
          Capitalization - Percent Equity                 49.8%
          Return on Equity Requested                      11.25%
          Rate of Return                                   8.68%
          Revenue Requirement                             $7.3 Million
          Base Rates - Percent Increase                   22.6%
          Latest Effective Date                           May 31, 2010

Regulatory Review and Public Comment

Following today's filing of Idaho Power's proposed rate change, the OPUC will begin a comprehensive review of the application and will seek public input on the filing. The process ensures that customers and regulators have the opportunity to review Idaho Power's costs. Idaho Power is unable to predict what relief the OPUC will grant.

Copies of the filing are available on Idaho Power's Web site (www.idahopower.com/OregonRateFiling), and will be available on the OPUC Web site (www.puc.state.or.us).

Background Information / Safe Harbor Statement

Boise, Idaho-based IDACORP, formed in 1998, is a holding company comprised of Idaho Power Company, a regulated electric utility; IDACORP Financial, a holder of affordable housing projects and other real estate investments; and Ida-West Energy, an operator of small hydroelectric generation projects that satisfy the requirements of the Public Utility Regulatory Policies Act of 1978. To learn more about Idaho Power or IDACORP, visit www.idahopower.com or www.idacorpinc.com.

Certain statements contained in this news release, including statements with respect to future earnings, ongoing operations, and financial conditions, are "forward-looking statements" within the meaning of federal securities laws. Although IDACORP and Idaho Power believe that the expectations and assumptions reflected in these forward-looking statements are reasonable, these statements involve a number of risks and uncertainties, and actual results may differ materially from the results discussed in the statements. Factors that could cause actual results to differ materially from the forward-looking statements include: The effect of regulatory decisions by the Idaho Public Utilities Commission, the Oregon Public Utility Commission and the Federal Energy Regulatory Commission affecting our ability to recover costs and/or earn a reasonable rate of return including, but not limited to, the disallowance of costs that have been deferred; changes in and compliance with state and federal laws, policies and regulations, including new interpretations by oversight bodies, which include the Federal Energy Regulatory Commission, the North American Electric Reliability Corporation, the Western Electricity Coordinating Council, the Idaho Public Utilities Commission and the Oregon Public Utility Commission, of existing policies and regulations that affect the cost of compliance, investigations and audits, penalties and costs of remediation that may or may not be recoverable through rates; changes in tax laws or related regulations or new interpretations of applicable law by the Internal Revenue Service or other taxing jurisdictions; litigation and regulatory proceedings, including those resulting from the energy situation in the western United States, and penalties and settlements that influence business and profitability; changes in and compliance with laws, regulations, and policies including changes in law and compliance with environmental, natural resources, endangered species and safety laws, regulations and policies and the adoption of laws and regulations addressing greenhouse gas emissions, global climate change, and energy policies; global climate change and regional weather variations affecting customer demand and hydroelectric generation; over-appropriation of surface and groundwater in the Snake River Basin resulting in reduced generation at hydroelectric facilities; construction of power generation, transmission and distribution facilities, including an inability to obtain required governmental permits and approvals, rights-of-way and siting, and risks related to contracting, construction and start-up; operation of power generating facilities including performance below expected levels, breakdown or failure of equipment, availability of transmission and fuel supply; changes in operating expenses and capital expenditures, including costs and availability of materials, fuel and commodities; blackouts or other disruptions of Idaho Power Company's transmission system or the western interconnected transmission system; population growth rates and other demographic patterns; market prices and demand for energy, including structural market changes; increases in uncollectible customer receivables; fluctuations in sources and uses of cash; results of financing efforts, including the ability to obtain financing or refinance existing debt when necessary or on favorable terms, which can be affected by factors such as credit ratings, volatility in the financial markets and other economic conditions; actions by credit rating agencies, including changes in rating criteria and new interpretations of existing criteria; changes in interest rates or rates of inflation; performance of the stock market, interest rates, credit spreads and other financial market conditions, as well as changes in government regulations, which affect the amount and timing of required contributions to pension plans and the reported costs of providing pension and other postretirement benefits; increases in health care costs and the resulting effect on medical benefits paid for employees; increasing costs of insurance, changes in coverage terms and the ability to obtain insurance; homeland security, acts of war or terrorism; natural disasters and other natural risks, such as earthquake, flood, drought, lightning, wind and fire; adoption of or changes in critical accounting policies or estimates; and new accounting or Securities and Exchange Commission requirements, or new interpretation or application of existing requirements. Any such forward-looking statements should be considered in light of such factors and others noted in the companies' Annual Report on Form 10-K for the year ended December 31, 2008, and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2009, and other reports on file with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which such statement is made. New factors emerge from time to time and it is not possible for management to predict all such factors, nor can it assess the impact of any such factor on the business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement.

SOURCE IDACORP, Inc.