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IDACORP 8-K 2005 Exhibit 99 FOR
IMMEDIATE RELEASE IDACORP
Announces Fourth Quarter and 2004 Results Summary
of Earnings and Net Income BOISE - IDACORP,
Inc. (NYSE:IDA) today reported 2004 earnings of $1.90 per share, a $0.68
increase from last year's $1.22 per share. The company also
reported improved fourth quarter earnings of $0.37 per share compared to last
year's $0.10 per share. Net income for
the fourth quarter was $14.3 million, compared to net income of $3.8 million
for the same period a year earlier.
IDACORP's annual net income was $73.0 million for 2004 and $46.6 million
in 2003. "Our
improved results for 2004 reflect the resolution of a series of issues on the
regulatory front," said IDACORP Chief Executive Officer, Jan
Packwood. "We concluded our first
general rate case in Idaho in almost ten years, settled some outstanding
regulatory issues and managed through another year of drought. We also took a significant step to
strengthen the company's balance sheet by completing the Company's first major
equity issuance in over ten years." Fourth Quarter Performance Summary IDACORP's
earnings per share of $0.37 in the fourth quarter reflect the results of the
regulated utility, as all non-regulated business units combined broke
even. The fourth quarter 2003 earnings
of $0.10 include write-offs at both Ida-West Energy and IDACORP Energy. Idaho Power
contributed $0.37 per share to the fourth quarter, $0.01 less than last year's
fourth quarter. General business
revenues at the utility increased $3.6 million over last year's fourth quarter
mostly due to strong customer growth and increased usage mainly by residential
customers. Other revenues
for the quarter were up $16.2 million primarily due to the IPUC decision in
December 2004 authorizing Idaho Power to collect $13.5 million in revenues and
interest, resolving the irrigation load reduction program. Electric utility expenses increased $19.2
million partly because of increases in power supply expenses and the
recognition of payroll expenses associated with the company's employee
incentive program. The winter of
2004-2005 has been mild to date. Even
though the fourth quarter of 2004 was colder than last year's fourth quarter,
it was warmer than normal. As a result,
general business energy sales increased 3.4 percent quarter-over-quarter with
the increase in residential sales at 6.7 percent. 2004 Performance Summary IDACORP's basic
and diluted earnings per share for the year of $1.90 was a $0.68 per share
increase over 2003's results. The increase
is largely due to improved results at Idaho Power and gains at the
non-regulated business units, coupled with the negative impacts of exiting
energy trading at IDACORP Energy and asset impairments at Ida-West in 2003. For the year,
Idaho Power's earnings were $1.71 per share, up $0.27 per share from 2003. Increases in Idaho base rates implemented in
mid-2004 added $28.7 million to general business revenues. The increase in other income, reduction in
long-term debt interest and significant reduction in income tax expense also
contributed to Idaho Power's improved performance. The 2004 income tax expense was lower because of the IPUC general
rate case settlement. Partially
offsetting the results were weather and power cost adjustment (PCA) impacts. During 2004, heating degree-days were 7.0
percent greater than 2003 but cooling degree-days in the summer months were
23.5 percent less than 2003. The portion of
year-to-date net power supply costs (including power supply expenses net of
off-system sales) absorbed by the company and not recovered under the Idaho PCA
and Oregon Excess Power Cost mechanisms decreased by approximately $10 million
or $0.16 per share. The unrecovered net
power supply costs were $13.4 million in 2004 and $23.4 million in 2003. Other Operations
and Maintenance expenses increased $34.9 million mainly due to the $12.7
million increase in payroll expenses for the employee incentive program;
write-offs of $9.1 million related to disallowed items in the Idaho general
rate case; and increases in transmission expense of $4.3 million primarily due
to the increase in purchased power. Idaho Power set
a record for annual general business customer growth with a gain of 13,809
customers to 440,409. This represents a
3.2 percent increase year-over-year. Analysis of Earnings The following table summarizes
Earning Per Share (EPS) from each of our business units:
The following table summarizes
the effect of certain items on EPS:
2005 Forecast - Snow Pack / Water Conditions The February 14,
2005 hydrological survey shows Snake River Basin snow pack levels at 65 percent
of average. Due to such factors as
depleted reservoir levels upstream of the Idaho Power hydroelectric system, dry
soil conditions, and the expected timing of the spring runoff, the Northwest
River Forecast Center (NWRFC) currently projects 2.6 million acre-feet (maf) of
water will flow into Brownlee Reservoir during the April-through-July
period. Historically, the NWRFC's
average measured inflow into Brownlee is 6.3 maf during the period. In 2004, the inflows were 3.2 maf. 2005 Earnings Guidance IDACORP earnings
are heavily dependent on the results of Idaho Power Company. In lieu of providing specific earnings per
share guidance for IDACORP in the future, the company plans to provide certain
projected operating information on Idaho Power Company and specific guidance
for the non-regulated subsidiaries.
Idaho Power Company's current allowed return on equity is 10.25% in the
Idaho jurisdiction. Potential earnings
(the product of net equity or book value and the allowed rate of return) should
then be adjusted to reflect water conditions, deviations in the weather, the
outcome of federal and state regulatory proceedings, regulatory lag, capital expenditures,
litigation and other factors including those described below in the Safe Harbor
Statement. For 2005, Other Operations
and Maintenance expenses are expected to be $248 million, a decrease of
approximately $8 million from 2004.
Capital expenditures are estimated to be $202 million, an increase of
$12 million from 2004. Generation from
Idaho Power's hydroelectric facilities is expected to be 5.9 million
megawatt-hours (MWh) in 2005, compared to 6.0 million MWhs in 2004 and normal
generation of 9.2 million MWhs. IDACORP is
reaffirming its 2005 earnings per share guidance for the non-regulated business
units in the range of $0.05 to $0.10 per share. 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
website (http://www.idacorpinc.com). A
replay of the conference call will be available on the company's website for a
period of 12 months. IDACORP and Idaho
Power expect to file their combined 2004 SEC Form 10-K Annual Report on March
9. 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, an investment
company with its primary activities in affordable housing projects; IdaTech, a
developer and manufacturer of fuel cell systems, products and solutions;
IDACOMM, a provider of telecommunication services and owner of Velocitus, a
commercial and residential Internet service provider; Ida-West Energy, an
operator of independent power projects; and IDACORP Energy, a marketer of
electricity and natural gas that wound down its operations during 2003. 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 governmental policies and regulatory
actions, including those of the Federal Energy Regulatory Commission, the Idaho
Public Utilities Commission and the Oregon Public Utility Commission, with
respect to allowed rates of return, industry and rate structure, acquisition
and disposal of assets and facilities, operation and construction of plant
facilities, relicensing of hydroelectric projects, recovery of purchased power
expenses, recovery of other capital investments, present or prospective
wholesale and retail competition (including but not limited to retail wheeling
and transmission costs) and other refund proceedings; litigation and regulatory
proceedings, including those resulting from the energy situation in the western
United States, and settlements that influence business and profitability;
changes in and compliance with environmental, endangered species and safety
laws and policies; weather variations affecting hydroelectric generating
conditions and customer energy usage; over-appropriation of surface and
groundwater in the Snake River Basin resulting in reduced generation at
hydroelectric facilities; construction of power generating facilities including
inability to obtain required governmental permits and approvals, and risks
related to contracting, construction and start-up; operation of power
generating facilities including breakdown or failure of equipment, performance
below expected levels, competition, fuel supply, including availability,
transportation and prices, and transmission; impacts from the potential
formation of a regional transmission organization; population growth rates and
demographic patterns; market demand and prices for energy, including structural
market changes; changes in operating expenses and capital expenditures and
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
various factors, including credit ratings and general economic conditions;
homeland security, natural disasters, acts of war or terrorism; technological
developments that could affect the operations and prospects of IDACORP's
subsidiaries or their competitors; increasing health care costs and the
resulting effect on health insurance premiums paid for employees; performance
of the stock market and the changing interest rate environment, which affect
the amount of required contributions to pension plans, as well as the reported
costs of providing pension and other postretirement benefits; increasing costs
of insurance, changes in coverage terms and the ability to obtain insurance; changes
in tax rates or policies, interest rates or rates of inflation; 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' Form 10-K for the year 2003,
the Quarterly Reports on Forms 10-Q for the quarters ended March 31, June 30,
and September 30, 2004 and other reports on file with the Securities and
Exchange Commission.
IDACORP, Inc.
IDACORP, Inc.
IDACORP, Inc. (unaudited)
Idaho Power Company Supplemental Operating
Statistics
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