August 25, 2008

Idacorp Earnings Fall

By Carlson, Brad

Idaho Power Co. parent Idacorp Inc. reported 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 a year earlier. Analysts on average expected Idacorp to earn 42 cents per share in the recent quarter.

The Idaho Power unit reported second quarter net income of $17.7 million compared to $16.2 million a year earlier.

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, Idacorp President and CEO J. LaMont Keen said in a release.

"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," he said. Idacorp's net income declined as a result of lower returns from Idacorp Financial along with intra-period tax allocations at the holding company.

"We remain focused on reducing the gap between our allowed and actual return," Keen said. "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."

Idaho Power net income totaled $17.7 million for the quarter, up $1.6 million. Key factors causing the change in net income included general business revenue increasing on higher retail base rates and power cost adjustment 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.

Idacorp reported second quarter total operating revenues of $230.23 million compared to $213.77 million a year earlier.

Analysts expected revenues of $256.18 million in the recent quarter.

Credit: Brad Carlson

(Copyright 2008 Dolan Media Newswires)

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