IDACORP, Inc. · NYSE:IDA
IDACORP — EEI Financial Conference 2011
35 slides from IDACORP's conference presentation, Nov 7, 2011
Slide 1: EEI Financial Conference Analyst Information
EEI Financial Conference Analyst Information Lake Buena Vista, Florida November 7, 2011
Slide 2: Forward-Looking Statements
Forward-Looking Statements In addition to the historical information contained in this presentation, this presentation contains (and oral communications made by IDACORP, Inc. and Idaho Power Company may contain) statements that relate to future events and expectations and, as such, constitute forwar
Slide 3: Table of Contents
Table of Contents Overview Operations IDACORP Organization Structure 1 General Business Energy Sales & Revenues 18 Idaho Power Service Area 2 2011 IRP Today & Tomorrow 19 Idaho Power Core Business 3 Corporate Citizenship 4 2011 Integrated Resource Plan 20 Idaho Economic Brief 5 Summer Peak Load & Re
Slide 4: Who We Are
Who We Are Our Vision: To be regarded as an exceptional utility. Our Mission: Prosper by providing reliable, responsible, fair-priced energy services, today and tomorrow. 1
Slide 5: Idaho Power Service Area
Idaho Power Service Area Hydroelectric Facilities and Nameplate Capacities 0 Hells Canyon 391.5 MW Bi oxbow 190.0 MW Brownlee 585.4 MW © cascade 12.4MW © swan Falls 27.2 MW i C.1. Strike 82.8 MW Bliss 75.0 MW © Lower Malad 13.5 MW © Upper Malad 8.3 MW (1) Lower Salmon 60.0 MW 2) Upper Salmon 34.5 MW
Slide 6: Idaho Power Core Business
Idaho Power Core Business Transmission 4,817 Miles of high-voltage transmission lines Distribution Lines 26,698 Miles of distribution lines Generation 1,709 MW Hydro 1,118 MW Coal 449 MW Other 3,276 Total MW . . Customers Step-Up Station Substation 492,073 General Business Customers 28 In service 22
Slide 7: Good Corporate Citizen
Good Corporate Citizen Low Carbon Footprint Idaho Power 4
Slide 8: Idaho Economic Brief
Idaho Economic Brief 5 Source: Moody’s Analytics, September 2011
Slide 9: IDACORP Attributes
IDACORP Attributes 95 Years of Tradition Strong Hydroelectric Base Productive Regulatory Strategy Growing Customer Base Culture of Integrity Future of Growth 6
Slide 10: Financial
Financial =SIDACORP
Slide 11: Earnings Per Diluted Share & Return on Year-End Equity
Earnings Per Diluted Share & Return on Year-End Equity (Period-End) Earnings Per Diluted Share Return on Year-End Equity $4.00 12% $3.50 $3.59 10.8% 10% $3.00 9.3% $2.95 8.9% 8% $2.50 $2.64 7.6% $2.00 $2.17 6% 6.8% $1.86 $1.50 4% $1.00 2% $0.50 $0.00 0% 2007 2008 2009 2010 2011 2007 2008 2009 2010 2
Slide 12: Liquidity
Liquidity As of September 30, 2011 ($ Million) IDACORP Idaho Power(1) 5-Year Line of Credit Facility – Expires April 2012 (2) $ 100 $ 300 Plus: Cash 6 25 Less: Commercial Paper (51) 0 Total $ 55 $ 325 (1) $24.2 million identified for Port of Morrow and American Falls bonds that holder may put to Ida
Slide 13: Estimated Capital Expenditures
Estimated Capital Expenditures 3rd Quarter 2011 (Millions of Dollars) 2011 2012 - 2013 Ongoing capital expenditures $ 187 – 189 $ 395 – 406 Langley Gulch 121 – 125 35 – 39 Other major projects 12 – 16 20 – 25 Total $ 320 – 330 $ 450 – 470 9
Slide 14: Credit Ratings
Credit Ratings As of November 3, 2011 Standard and Poor’s Moody’s Idaho Power IDACORP Idaho Power IDACORP Corporate Credit Rating / Long-Term Issuer Rating BBB BBB Baa1 Baa2 Senior Secured Debt A- None A2 None Senior Unsecured Debt BBB None Baa1 None Short-Term Tax-Exempt Debt BBB/A-2 None Baa1/VMIG
Slide 15: Key Financial & Operating Metrics and 2011 Earnings Guidance
Key Financial & Operating Metrics and 2011 Earnings Guidance 2011 Estimate (1) Previous (2) Idaho Power Operations & Maintenance Expense (millions) No Change $310 – $320 Idaho Power Capital Expenditures (millions) No Change $320 – $330 Idaho Power Hydroelectric Generation (million MWh) 11.0 – 11.5 9
Slide 16: Regulatory
Regulatory qe IDACORP
Slide 17: Productive Regulatory Strategy
Productive Regulatory Strategy Annualized Revenue Impact Regulatory Action Effective Date (Millions) Idaho General Rate Case February 1st $ 21 Idaho General Rate Case March 19th $6 2009 Idaho AMI June 1st $ 11 Oregon AMI June 1st $1 Oregon Power Cost Update June 1st $4 Idaho Settlement Agreement Jun
Slide 18: Idaho General Rate Case
Idaho General Rate Case Settlement Stipulation January 1, 2012 Non-NPSE NPSE Total As-Filed in General Rate Case $ 71.3 $ 11.3 $ 82.6 Adjustments in Settlement Stipulation (25.8) (22.8) (48.6) Settlement Stipulation Result $ 45.5 $ (11.5) $ 34.0 13
Slide 19: IPUC Application – ADITC Extension
IPUC Application – ADITC Extension November 2, 2011 • Available ADITC credits: $45 million – Maximum available in 2012: $25 million – Unused credits carried forward to 2013 • Period: 2012 – 2013 • Modified ROE: – 50/50 Sharing above 10% Return on Year-End Equity – ADITC Support below 9.5% Return on
Slide 20: Low Rates for Customers
Low Rates for Customers Residential and Industrial (cents / kilowatt-hour) Residential Industrial $0.14 $0.09 $0.12 $0.07 $0.10 $0.05 $0.08 $0.06 $0.03 $0.04 $0.01 2004 2005 2006 2007 2008 2009 2010 2004 2005 2006 2007 2008 2009 2010 Idaho Power National Average* Idaho Power National Average * * Sou
Slide 21: Residential Rates
Residential Rates 1,000 Kilowatt Hours 16 Source: EEI Residential, Commercial, Industrial Bills; Investor-Owned Utilities January 1, 2011
Slide 22: Small Industrial Rates
Small Industrial Rates 1,000 Kilowatts/400,000 Kilowatt Hours 17 Source: EEI Residential, Commercial, Industrial Bills; Investor-Owned Utilities January 1, 2011
Slide 23: Operations
Operations awe IDACORP
Slide 24: General Business Energy Sales & Revenues
General Business Energy Sales & Revenues By Customer Class General Business Energy Sales General Business Revenues (MWh’s - Thousands) ($millions) 16,000 $1,000 14,542 14,544 $ 883.8 $ 870.4 $ 845.9 13,948 13,513 13,723 $900 14,000 $ 784.3 $800 12,000 $ 668.3 $700 10,000 $600 8,000 $500 $400 6,000 $
Slide 25: Today and Tomorrow
Today and Tomorrow “Energy is a finite and valuable resource, and energy diversity is energy security.” Mark Stokes, Power Supply Planning Manager 19
Slide 26: 2011 Integrated Resource Plan
2011 Integrated Resource Plan * Committed Resource 20
Slide 27: Summer Peak Load and Resources
Summer Peak Load and Resources July 16, 2010 Peak Load 21
Slide 28: Peak Wind July 26, 2011
July 26, 2011 Peak Wind @ 2:00 A.M. 320 2700 316 MW 300 280 2500 260 Total System Load MW 240 2300 Total Wind MW 220 200 2100 180 160 1900 140 120 1700 0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 0:00 Total Win
Slide 29: Sources of Electricity
Sources of Electricity Total Source: 2010 Projected 2030 Supply-Side Resources Supply-Side Resources 3% 1% 5% 3% 7% 9% 26% 44% 49% 53% Company-Owned Generation: 2010 Projected 2030 Supply-Side Resources Supply-Side Resources 3% 3% 9% 32% 46% 51% 56% 23 Source: Idaho Power 2011 Integrated Resource Pl
Slide 30: Summary of Pollution Controls
Summary of Pollution Controls Current & Expected Hazardous Air Pollutants NOX SO2 Opacity and PM (HAPS MACT) Low NOx Scrubber Scrubber Dry Sorbent Electro-Static Burners SCR Installation Upgrade Injection Precipitators Baghouse Various Controls Expected Jim Bridger Unit 1 2010 2022 1990 2010 n/a 197
Slide 31: Langley Gulch
Langley Gulch 300 MW combined cycle natural gas power plant On schedule & within the budget of $427 million Expected in-service – June 2012 Heat rate – approximately 6,750 Btu/Kwh Gas burn rate – approximately 1,800 MMBtu/h 25
Slide 32: Boardman to Hemingway
Boardman to Hemingway 500kV Project • Estimated cost $820 million • 299 mile, 500-kV transmission line • Expected in service 2016 26
Slide 33: Gateway West
Gateway West Transmission Line Project A joint proposal between Idaho Power Company and PacifiCorp 27 www. gatewaywestproject.com
Slide 34: Winter Outlook
Winter Outlook November 2011 Through January 2012 Temperature Precipitation 28 Source: NOAA, National Oceanic Atmospheric Administration, U.S. Dept of Commerce
Slide 35: For Additional Information
For Additional Information Darrel T. Anderson Executive Vice President–Administrative Services and Chief Financial Officer (208) 388-2650 Steven R. Keen Vice President Finance and Treasurer (208) 388-2600 Lawrence F. Spencer Director of Investor Relations (208) 388-2664 LSpencer@idacorpinc.com WWW.I