Company Reports

Idacorp reported second-quarter operating earnings per share of $1.79, up from $1.76 in the same year-ago period.

Idacorp is navigating a significant step-up in its growth outlook. Typically viewed as a predictable, slow-growing utility dependent on hydro power, Idacorp is now at the center of the hyperscale data center buildout.

We are initiating coverage of Idacorp, a vertically integrated utility that generates, transmits, and distributes electricity to 670,000 customers in southern Idaho and eastern Oregon.

With one of the largest hydroelectric fleets in the United States, Idacorp's profits are more closely tied to weather variations than most regulated utilities. In addition, regulation in Idaho and Oregon historically has left the company more exposed than most U.S. utilities to fuel costs, customer growth, and other uncontrollable variables.

With one of the largest hydroelectric fleets in the United States, Idacorp's profits are more closely tied to weather variations than most regulated utilities. In addition, regulation in Idaho and Oregon historically has left the company more exposed than most U.S. utilities to fuel costs, customer growth, and other uncontrollable variables.

With one of the largest hydroelectric fleets in the United States, Idacorp's profits are more closely tied to weather variations than most regulated utilities. In addition, regulation in Idaho and Oregon historically has left the company more exposed than most U.S. utilities to fuel costs, customer growth, and other uncontrollable variables.

With one of the largest hydroelectric fleets in the United States, Idacorp's profits are more closely tied to weather variations than most regulated utilities. In addition, regulation in Idaho and Oregon historically has left the company more exposed than most U.S. utilities to fuel costs, customer growth, and other uncontrollable variables.

With one of the largest hydroelectric power sources in the country, Idacorp's profits are more closely tied to weather variations than most regulated utilities.

We are cutting our fair value estimate for Idacorp IDA following 2007 announced earnings and a 2008 rate case settlement at the regulated utility, Idaho Power, that could result in $16 million less gross profit than we expected and $32 million less gross profit than the company requested. The utility will be able to raise customer rates 5%, generating $32 million of additional revenue. However, the shortfall between our expectation and the settlement translates into $4 of equity value on a tax-adjusted, discounted basis using our 7.4% cost of capital and 2% long-term growth assumptions. In addition, earnings results and rate case documents suggest operating and maintenance expenses are trending higher than our forecast. Some of that is because of the wildfires out West of which full cost recovery is uncertain at this time. The combination of lower-than-expected revenues and higher-than-expected costs leads us to cut our fair value estimate. Cash collected during 2007 added $1 to our fair value estimate, offsetting a portion of our fair value estimate reduction. We expect regulators to approve the settlement terms by the end of February. The settlement also left open the potential for future negotiations regarding the state's cost recovery mechanisms that have hurt Idacorp earnings recently. We will monitor any developments.

With one of the largest hydroelectric power sources in the country, Idacorp's profits are more closely tied to weather variations than most regulated utilities.

We are placing several regulated utilities under review as we implement lower assumed allowed returns on investments, an assumption consistent with trends among recent rate case outcomes and lower market interest rates. Allowed returns in general have been falling since 2002, and we believe that the recent defensive stance by the Federal Reserve will provide rate-deciding regulators with additional basis to allow lower returns going forward.

With one of the largest hydroelectric power sources in the country, Idacorp's profits are more closely tied to weather variations than most regulated utilities.

With one of the largest hydroelectric power sources in the country, Idacorp's profits are more closely tied to weather variations than most regulated utilities.