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IDACORP Announces Second Quarter 2008 Results

August 7, 2008

BOISE, Idaho, Aug. 7 /PRNewswire-FirstCall/ — IDACORP, Inc. reported 2008 second quarter net income of $17.5 million or 39 cents per diluted share, compared to $18.5 million or 42 cents per diluted share in 2007. Idaho Power Company (IPC), IDACORP’s principal subsidiary, reported second quarter net income of $17.7 million compared to $16.2 million in 2007.

“More favorable operating conditions, the sale of a portion of the Southwest Intertie Project rights-of-way and cost containment efforts improved performance at Idaho Power Company,” said IDACORP President and Chief Executive Officer J. LaMont Keen. “Even with a decline in the amount of general business sales and a change in the allocation of base net power supply costs that reduced second quarter earnings, we were able to increase the contribution from utility operations. IDACORP’s net income declined as a result of lower returns from IDACORP Financial along with intra-period tax allocations at the holding company,” he said.

“We remain focused on reducing the gap between our allowed and actual return. To that end, we continue emphasizing timely regulatory filings, management of operating expenses in the face of significant upward pressure, and rigorous efforts to find efficiencies in all areas of our business,” Keen added.

Analysis of Earnings per Diluted Share

The following table presents diluted earnings (losses) per share from the holding company and each IDACORP subsidiary:

                                     Three months ended     Six months ended                                           June 30,             June 30,                                       2008      2007       2008       2007   Earnings (Losses) Per Share(1) From:      Idaho Power Company             $0.39     $0.37      $0.87      $0.90      IDACORP Financial Services       0.02      0.04       0.03       0.08      Ida-West Energy                  0.02      0.02       0.02       0.02      Holding Company                 (0.04)    (0.01)     (0.05)     (0.02)   Earnings Per Diluted Share-GAAP    $0.39     $0.42      $0.87      $0.98        (1) See "Use of Non-GAAP Financial Measures" below.      Performance Summary  

A summary of IDACORP’s net income and earnings per diluted share for the second quarter and year-to-date 2008 as compared to 2007 is as follows:

                                     Three months ended     Six months ended                                          June 30,               June 30,                                     2008         2007       2008       2007    Net income ($000's)             $17,515      $18,465    $39,231    $43,113   Average outstanding    shares-diluted (000s)           45,096       43,884     45,050     43,845   Earnings per diluted share        $0.39        $0.42      $0.87      $0.98     

The key factors affecting the change in IDACORP’s net income for the second quarter of 2008 include (amounts shown are net of income taxes):

— IPC’s net income, the primary component of IDACORP’s net income, was $17.7 million for the quarter, an increase of $1.6 million. The key factors causing the change in IPC’s net income include:

— General business revenue increased $16.2 million, due to an increase of $19.0 million from higher retail base rates and power cost adjustment (PCA) rates partially offset by a $2.8 million decrease from reduced sales. Sales were reduced due to weather variations, primarily affecting irrigation customers, partially offset by customer growth.

— Improved hydroelectric generating conditions decreased net power supply costs (fuel and purchased power less off-system sales) by $10.7 million.

— The PCA deferral decreased $25.2 million primarily due to improved hydroelectric generating conditions, increases in PCA rates, and an increase in the monthly allocation of base net power supply costs, which decreased earnings $5.6 million. It is expected that the third quarter results will reflect a decrease in the monthly allocation of base net power supply costs which will increase earnings approximately $10 million.

— Operations and maintenance expenses decreased $2.0 million primarily due to reduced maintenance costs at thermal facilities.

— The sale of a portion of the Southwest Intertie Project rights-of-way increased net income $1.8 million.

— Bridger Coal Company reduced net income $1.0 million due to increased costs to produce coal.

— Higher interest charges, due to increases in long-term debt balances and increased rates on variable rate instruments, reduced net income $1.4 million.

— Reduced IFS earnings decreased net income $1.1 million due to lower tax benefits from aging investments.

— Net loss at the holding company decreased net income $1.5 million. This loss was primarily due to intra-period tax allocations recorded at the holding company.

The key factors affecting the change in IDACORP’s net income for the six months ended June 30, 2008 include (amounts shown are net of income taxes):

— IPC’s net income, the primary component of IDACORP’s net income, was $39.0 million for year-to-date, a decrease of $0.5 million. The key factors causing the change in IPC’s net income include:

— General business revenue increased $34.5 million, due to an increase of $32.0 million from higher retail base rates and PCA rates and $2.5 million due to an increase in usage (weather-related and customer growth).

— Increased fuel expense primarily in the first quarter, due to an increase in contracted coal price and an increase in generation volume at thermal facilities, raised net power supply costs by $4.6 million.

— The PCA deferral decreased $27.5 million primarily due to the net effect of increases in PCA rates and a change to the monthly allocation of base net power supply costs, which decreased earnings $5.6 million, partially offset by increased fuel expenses in the first quarter.

— Operations and maintenance expenses decreased $1.3 million primarily due to reduced maintenance costs at thermal facilities.

— The sale of a portion of the Southwest Intertie Project rights-of-way increased net income $1.8 million.

— Bridger Coal Company reduced net income $2.4 million due to increased costs to produce coal.

— Higher interest charges, due to increases in long-term debt balances and increased rates on variable rate instruments, reduced net income $3.0 million.

— Reduced IFS earnings decreased net income $2.1 million due to lower tax benefits from aging investments.

— Net loss at the holding company decreased net income $1.2 million. These losses were primarily due to intra-period tax allocations recorded at the holding company.

2008 Outlook

IPC measured 4.4 million acre-feet (maf) of inflows into Brownlee Reservoir during the April-July 2008 period. The NWRFC’s 30-year average April-July inflows into Brownlee is 6.3 maf. In 2007, April-July inflows were 2.8 maf.

   The outlook for key operating and financial metrics is:                                                       2008 Estimates   Key Operating & Financial Metrics (1)          Current       Previous   Idaho Power Operation &     Maintenance Expense (Millions)              No change      $285-$295   Idaho Power Capital        Expenditures  (Millions) (2)             $255-$270      $270-$290   Idaho Power Hydroelectric   Generation (Million MWh) (3)                   6.5-7.5        6.0-8.0   Non-Regulated Subsidiary        Earnings Per Share (4)                   No change     $0.05-$0.10   Effective Tax Rates (5):     Idaho Power                                 No change       32%-36%     Consolidated -- IDACORP                      22%-26%        20%-24%      (1)  Key operating and financial metrics will be updated quarterly.   (2)  The decrease in capital expenditures is due to the estimated decline        in new customer connections and the deferral of certain capital        expenditures.   (3)  The range of estimated hydroelectric generation has been revised to        reflect refinements related to river flows.   (4)  Estimates include contributions from Ida-West Energy and IDACORP        Financial netted against holding company expenses.  See "Use of        Non-GAAP Financial Measures" below.   (5)  Increase is a result of greater estimated income before tax at IPC        for the year as compared to previous estimates.     Use of Non-GAAP Financial Measures  

IDACORP’s earnings per diluted share (EPS) is prepared in accordance with generally accepted accounting principles used in the United States (GAAP). EPS by subsidiary and for IDACORP unconsolidated (holding company) is considered “a non-GAAP financial measure.” The most directly comparable GAAP financial measure to EPS by subsidiary and for the holding company is IDACORP EPS.

EPS by subsidiary and for the holding company, including non-regulated subsidiary EPS in the 2008 outlook, is calculated by dividing the net income or loss of each company by IDACORP’s weighted average common shares outstanding (diluted) for the period. This presentation of EPS by subsidiary and for the holding company is intended to supplement the information available to investors for evaluating the financial performance of IDACORP and its subsidiaries. This non-GAAP financial measure is not intended to replace IDACORP EPS, or any other measure calculated in accordance with GAAP, as an indicator of financial performance.

IDACORP’s management uses EPS by subsidiary and for the holding company, in addition to GAAP measures, internally for financial planning and for analysis of performance. IDACORP’s management also uses EPS by subsidiary and for the holding company, including non-regulated subsidiary EPS in the 2008 outlook, as a performance measure when communicating with analysts and investors regarding earnings results and outlook. Management believes that the presentation of EPS by subsidiary and for the holding company provides additional useful information regarding each company’s relative financial performance and contribution to IDACORP EPS, which is presented in accordance with GAAP in IDACORP’s Consolidated Statements of Income. IDACORP does not provide EPS guidance for IDACORP or IPC, which comprise the greatest portion of IDACORP’s EPS.

Web Cast / Conference Call

The company will hold an analyst conference call today at 2:30 p.m. Mountain Time (4:30 p.m. Eastern Time). All parties interested in listening may do so through a live Web cast. Details of the conference call logistics are posted on the company’s Web site (http://www.idacorpinc.com/). A replay of the conference call will be available on the company’s Web site for a period of 12 months.

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.

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: changes in and compliance with governmental policies, including new interpretations of existing policies, and regulatory actions and regulatory audits, including those of 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 with respect to allowed rates of return, industry and rate structure, day-to-day business operations, acquisition and disposal of assets and facilities, operation and construction of plant facilities, provision of transmission services, including critical infrastructure protection and system reliability, relicensing of hydroelectric projects, recovery of power supply costs, recovery of capital investments, present or prospective wholesale and retail competition, including but not limited to retail wheeling and transmission costs, and other refund proceedings; changes arising from the Energy Policy Act of 2005; changes in tax laws or related regulations or new interpretations of applicable law by the Internal Revenue Service or other taxing jurisdiction; 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 or global climate change; global climate change and 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; impacts from the formation of a regional transmission organization or the development of another transmission group; population growth rates and other demographic patterns; market prices and demand for energy, including structural market changes; fluctuations in sources and uses of cash; results of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by factors such as credit ratings and general 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 and changes in interest rates, which affect the amount 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, 2007, and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2008, 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.

                               IDACORP, Inc.                Condensed Consolidated Statements of Income                  For Periods Ended June 30, 2008 and 2007                       Summary Financial Information                                (unaudited)              (Thousands of Dollars, except per share amounts)                                      Three Months Ended    Six Months Ended                                          June 30,              June 30,                                       2008      2007       2008      2007   Operating Revenues:    Electric Utility:       General business             $188,748  $162,212   $356,060  $299,463       Off-system sales               25,641    37,177     59,004    95,016       Other revenues                 14,556    13,137     26,676    23,976       Total electric utility        revenues                     228,945   212,526    441,740   418,455    Other                              1,281     1,246      1,925     2,029       Total Operating Revenues      230,226   213,772    443,665   420,484    Operating Expenses:     Electric Utility:       Purchased power                50,089    80,467     95,387   131,285       Fuel expense                   28,681    27,520     65,918    58,432       Power cost adjustment            (829)  (42,172)   (18,573)  (63,708)       Other operations & maintenance 75,617    78,888    144,543   146,715       Demand-side management          3,928     2,548      7,293     4,663       Gain on sale of emission        allowances                      (346)     (882)      (346)     (882)       Depreciation                   26,617    25,613     52,367    50,903       Taxes other than income taxes   4,800     4,636      9,603     9,554         Total electric utility          expenses                   188,557   176,618    356,192   336,962     Other                             1,140       582      2,187     3,170         Total Operating Expenses    189,697   177,200    358,379   340,132    Operating Income (Loss):     Electric Utility                 40,388    35,908     85,548    81,493     Other                               141       664       (262)   (1,141)       Total Operating Income         40,529    36,572     85,286    80,352    Other Income                        6,082     3,862     10,499     9,251    Losses of Unconsolidated    Equity-Method Investments         (3,278)   (1,551)    (7,314)   (2,877)    Other Expenses                      1,820     1,571      2,184     4,782    Interest Expense:     Interest on long-term debt       15,744    13,896     32,621    27,444     Other interest                    1,313     1,514      1,909     3,118       Total Interest expense         17,057    15,410     34,530    30,562   Income Before Income Taxes         24,456    21,902     51,757    51,382   Income Tax Expense                  6,941     3,437     12,526     8,336   Income from Continuing Operations  17,515    18,465     39,231    43,046   Income from Discontinued     Operations (net of tax)               -         -          -        67   Net Income                        $17,515   $18,465    $39,231   $43,113   Weighted Average Common Shares     Outstanding-Basic (000's)        44,924    43,751     44,886    43,709   Weighted Average Common Shares     Outstanding-Diluted (000's)      45,096    43,884     45,050    43,845   Earnings per Share of Common    Stock (diluted):     Earnings per Share from     Continuing Operations             $0.39     $0.42      $0.87     $0.98     Earnings per Share from     Discontinued Operations            0.00      0.00       0.00      0.00     Diluted Earnings per Share      of Common Stock                  $0.39     $0.42      $0.87     $0.98   Dividends Paid per Share of    Common Stock                       $0.30     $0.30      $0.60     $0.60                                  IDACORP, Inc.              Condensed Consolidated Statements of Cash Flows              For the Six Months Ended June 30, 2008 and 2007                       Summary Financial Information                                (unaudited)                           (Thousands of Dollars)                                                            Six Months Ended                                                               June 30,                                                           2008       2007   Operating Activities     Net Income                                          $39,231    $43,113     Adjustments to reconcile net income to      net cash provided by operating activities:          Depreciation and amortization                   63,255     60,397          Deferred income taxes and investment           tax credits                                    16,777     18,760          Changes in regulatory assets and liabilities   (24,824)   (65,257)          Undistributed losses (earnings) of subsidiaries  1,110     (2,922)          Gain on sales of assets                         (3,382)    (2,687)          Other non-cash adjustments to net income         2,022      4,564          Change in:               Accounts receivable and prepayments         1,967     (3,001)               Accounts payable and other accrued                liabilities                              (13,462)    (3,548)               Taxes accrued                              (5,255)   (12,582)               Other                                     (23,940)     4,626        Net cash provided by operating activities          53,499     41,463    Investing Activities     Additions to property, plant and equipment         (125,373)  (122,179)     Proceeds from the sale of IDACOMM                         -      7,283     Proceeds from the sale of non-utility assets          5,690          -     Proceeds from the sale of emissions allowances          833      2,685     Investments in affordable housing                    (8,486)       300     Investments in unconsolidated affiliates             (8,725)    (3,600)     Purchase of available-for-sale securities                 -    (24,349)     Proceeds from the sale of available-for-sale      securities                                               -     25,296     Purchase of held-to-maturity securities                (965)    (1,325)     Maturity of held-to-maturity securities               2,735      1,730     Tax deposit withdrawl                                20,000          -       Other assets                                       (1,524)     1,377           Net cash used in investing activities         (115,815)  (112,782)    Financing Activities     Increase in term loans                              170,000          -     Issuance of long-term debt                                -    140,000     Retirement of long-term debt                         (6,317)    (7,650)     Purchase of pollution control bonds                (166,100)         -     Dividends on common stock                           (26,985)   (26,286)     Net change in short-term borrowings                  89,076    (42,100)     Issuance of common stock                              4,295     12,451     Acquisition of treasury stock                          (281)      (346)     Other                                                  (414)    (2,178)        Net cash provided by financing activities          63,274     73,891      Net increase in cash and cash equivalents               958      2,572      Cash and cash equivalents at beginning of period      7,966      9,892      Cash and cash equivalents at end of period           $8,924    $12,464                                  IDACORP, Inc.                   Condensed Consolidated Balance Sheets                 As of June 30, 2008 and December 31, 2007                       Summary Financial Information                                (unaudited)                           (Thousands of Dollars)                                                     June 30,    December 31,                                                      2008         2007   Assets       Cash and cash equivalents                       $8,924        $7,966       Receivables, net of allowance                   97,339       118,695       Other current assets                           152,749       140,046           Total current assets                       259,012       266,707        Investments                                    207,277       201,085       Property, plant and equipment-net            2,687,826     2,616,552        Regulatory assets                              477,883       449,668       Employee notes - long-term                       2,537         2,325       Other assets                                   114,041       116,971           Total other assets                         594,461       568,964               Total Assets                         $3,748,576    $3,653,308     Liabilities and Shareholders' Equity       Current maturities of long-term debt            $8,643       $11,456       Notes payable                                  279,421       186,445       Accounts payable                                68,652        85,116       Other current liabilities                       95,244        92,298           Total current liabilities                  451,960       375,315        Deferred income taxes                          468,868       466,182       Regulatory liabilities                         279,423       274,204       Other liabilities                              170,223       173,412           Total other liabilities                    918,514       913,798        Long-term debt                               1,153,454     1,156,880       Shareholders' equity                         1,224,648     1,207,315            Total Liabilities &            Shareholders' Equity                   $3,748,576    $3,653,308              Idaho Power Company Supplemental Operating Statistics                                Three Months Ended       Six Months Ended                                     June 30,               June 30,                                2008        2007       2008         2007   Energy Use - MWh      Residential             1,097,026   1,066,889   2,685,937    2,531,165     Commercial                925,507     939,045   1,924,501    1,882,255     Industrial                826,693     835,446   1,677,532    1,706,661     Irrigation                686,344     814,609     697,405      819,835        Total General         Business            3,535,570   3,655,989   6,985,375    6,939,916     Off-System Sales          504,443     525,816   1,022,387    1,490,204        Total                4,040,013   4,181,805   8,007,762    8,430,120    Revenue ($000's)      Residential               $74,067     $62,886    $169,309     $141,468     Commercial                 47,333      39,983      92,008       76,191     Industrial                 29,280      23,294      55,937       45,393     Irrigation                 38,068      36,049      38,806       36,411     Total General     Business                  188,748     162,212     356,060      299,463     Off-System Sales           25,641      37,177      59,004       95,016       Total                  $214,389    $199,389    $415,064     $394,479    Weather Statistics      Heating Degree Days           821         573       3,501        2,909     Cooling Degree Days           213         288         213          288     Precipitation (inches)       1.44        2.24        4.14         4.02    Customers - Period End      Residential               402,320     397,083     Commercial                 63,427      61,476     Industrial                    122         127     Irrigation                 18,485      18,112       Total                   484,354     476,798  

IDACORP, Inc.

CONTACT: Lawrence F. Spencer, Director of Investor Relations of IDACORP,Inc., +1-208-388-2664, lspencer@idacorpinc.com

Web site: http://www.idahopower.com/




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