IDACORP, Inc. · NYSE:IDA
IDACORP — Investor Presentation (June 2012)
34 slides from IDACORP's investor presentation, Jun 11, 2012
Slide 1: Investor Presentation
Investor Presentation Boston, MA June 11-12, 2012
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 Investor Presentation Appendix Investment Highlights 1 Idaho Economic Brief A1 IDACORP Organization Structure 2 Credit Ratings A2 Idaho Power Service Area 3 General Business Energy Sales & Revenues A3 Idaho Power Core Business 4 Good Corporate Citizen A4 Productive Regulatory Strat
Slide 4: IDACORP Investment Highlights
IDACORP Investment Highlights Strong Foundation For Success • Nearly 100 Years as a Fully Integrated Electric Utility • Low Cost Hydroelectric Generating Resources • Productive Regulatory Strategy Proven Record of Achievement • Solid Financial Results • Good Corporate Citizen • Achieving Ongoing Reg
Slide 5: 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. 2
Slide 6: Idaho Power Service Area
Idaho Power Service Area Thermal Facilities And Capacities Coal A Jim Bridger 770.5 MW* Hydroelectric Facilities and A North Valmy 283.5 Mw Nameplate Capacities 4 Boardman 54.2 MW El Hells Canyon 391.5 MW Natural Gas . A Bennett Mountain 172.8 MW Bi Oxbow 190.0 MW A Evander Andrews 270.9 Mw** Ei Bro
Slide 7: Idaho Power Core Business
Idaho Power Core Business Fully Integrated Electric Utility 4
Slide 8: 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 $43 Oregon AMI June 1st 1 Oregon Power Cost Update June 1st $ 4 Idaho Settlement Agreement Ju
Slide 9: Productive Regulatory Strategy
Productive Regulatory Strategy Annualized Revenue Impact Regulatory Action Effective Date (Millions) Idaho Settlement Agreement January 1st $ 34.0 Oregon General Rate Case March 1st 1.8 Idaho - PCA June 1st 43.0 Oregon - APCU June 1st 1.6 2012 Depreciation Study – Idaho June 1st (1.3) $54.9 Deprecia
Slide 10: 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 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012 Idaho Power National Average* Idaho Power National Average * * Sou
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% May 3, 2012 Guidance $3.50 $3.00 - $3.15 10% $3.36 10.1% $3.00 9.7% 9.3% $2.95 8.9% 8% $2.50 $2.64 7.6% $2.00 $2.17 6% $1.50 4% $1.00 2% $0.50 $0.00 0% 2008 2009 2010 20
Slide 12: Summary of Cash Flows & Liquidity
Summary of Cash Flows ($ Million) IDACORP 2007 2008 2009 2010 2011 Net cash provided by operating activities $ 80.6 $ 136.5 $ 284.4 $ 305.4 $ 310.2 Liquidity As of March 31, 2012 Idaho ($ Million) IDACORP Power(1) 5-Year Line of Credit Facility – Expires October 2016 $ 125.0 $ 300.0 Plus: Cash 5.9 3
Slide 13: Strong Credit Profile
Strong Credit Profile ($ Millions) S&P Moody’s Idaho Power Senior Secured Debt Rating: A- A2 - Stable Outlook $240 $230 Manageable Debt Maturities Millions $130 $140 $105 $55 $120 $116 $100 $100 $100 $100 $100 $100 $70 $70 $60 $50 $50 $20 $4 * * $100M Refinanced and redeemed in 2012 10
Slide 14: IDACORP Common Stock Dividend
IDACORP Common Stock Dividend IDACORP has a dividend policy that provides $1.32 for a target long-term dividend payout ratio of between 50 and 60 percent of sustainable $1.20 IDACORP earnings, with the flexibility to achieve that payout ratio over time. $0.30 $0.33 Q4 Q1 2011 2012 Quarterly Rate Ann
Slide 15: Key Financial & Operating Metrics and 2012 Earnings Guidance
Key Financial & Operating Metrics and 2012 Earnings Guidance 2012 Estimates Current (1) Previous (2) Idaho Power Operations & Maintenance Expense (millions) No Change $325 - $335 Idaho Power Additional Amortization of ADITC No Change Less Than $5M Idaho Power Capital Expenditures (millions) No Chang
Slide 16: Good Corporate Citizen
Good Corporate Citizen IDACORP’s First Sustainability Report • Balanced and responsible management • Operational excellence • Environmental stewardship • Engaged, empowered employees • Strong community partnerships www.Idahopower.com/Sustainability Benchmarking Air Emissions of the 100 Largest Elect
Slide 17: ADITC Extension 2012-2014
ADITC Extension 2012-2014 Sharing Percentage Customer Benefit Earnings Deadband Company Benefit 2012 * Ability to use additional Return On Year-End Equity In Idaho Jurisdiction ADITC’s of up to $25 million in 2012 and $45 million over three year period 2012-2014 * At May 3, 2012, the company expects
Slide 18: Langley Gulch Power Plant
Langley Gulch Power Plant • Plant Statistics • Idaho Rate Recovery Request – 300-MW combined cycle natural gas – Total Estimated Plant Investment $398.1M power plant – Idaho Rate Base Request $336.7M – Expected in-service July 1, 2012 – Regulated Rate of Return 7.86% – Heat rate – approx. 6,750 Btu/
Slide 19: Boardman to Hemingway
Boardman to Hemingway 500kV Transmission Line Project • Joint funding agreement Jan. 12, 2012 – Idaho Power, BPA, PacifiCorp • 300 mile, 500-kV transmission line • 2011 IRP targets 2016 in-service date • Capacity: – 1,000 MW east to west – 1,050 MW west to east. 16 www. boardmantohemingway.com
Slide 20: Gateway West
Gateway West Transmission Line Project A joint proposal between Idaho Power Company and PacifiCorp 17 www. gatewaywestproject.com
Slide 21: Questions?
Questions? 18
Slide 22: Appendix
Appendix
Slide 23: Idaho Economic Brief
Idaho Economic Brief Unemployment Rate 10.0 8.0 6.0 4.0 2.0 0.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 Historic Forecast Idaho U.S. Top Employers • Idaho 7th in index of states economic recoveries last quarter — Bloomberg News, 3/30/12 • A Brookings Institution report named Boise as one of the
Slide 24: Credit Ratings
Credit Ratings As of May 3, 2012 Standard and Poor’s Moody’s Idaho Power IDACORP Idaho Power IDACORP Corporate Credit Rating / Long-Term Issuer Rating BBB BBB Baa1 Baa2 Senior Secured Debt A- None A2 None Senior Unsecured Debt BBB None Baa1 None Short-Term Tax-Exempt Debt BBB/A-2 None Baa1/VMIG-2 No
Slide 25: General Business Energy Sales & Revenues
General Business Energy Sales & Revenues By Customer Class General Business Energy Sales General Business Revenues (MWh’s - Thousands) ($millions) 16,000 $1,000 14,544 13,948 13,734 $ 883.8 $ 870.4* 14,000 13,513 13,671 $900 $ 834.5* $ 828.7* $ 784.3 $800 12,000 $700 10,000 $600 8,000 $500 6,000 $40
Slide 26: Good Corporate Citizen
Good Corporate Citizen • Idaho Power shares the highest rank in business customers’ satisfaction in the West Midsize Segment. – J.D. Power and Associates 2012 Electric Utility Business Customer Satisfaction Study • Idaho Power is the fourth highest ranking in the West Midsize segment in results of t
Slide 27: 2011 Integrated Resource Plan
2011 Integrated Resource Plan * Committed Resource A-5
Slide 28: Summer Peak Load and Resources
Summer Peak Load and Resources July 16, 2010 A-6
Slide 29: PURPA Projects Under Contract
PURPA Projects Under Contract A-7
Slide 30: Peak Wind
Peak Wind May 9, 2012 – May 10, 2012 448 MW Wind Generation Peak 500 450 2300 400 350 300 2100 Total System Load MW 250 Total Wind MW 200 1900 150 100 50 1700 0 System Load Total Wind A-8
Slide 31: 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% A-9 Source: Idaho Power 2011 Integrated Resource P
Slide 32: Summary of Pollution Controls
Summary of Pollution Controls Currently Installed Expected NOX SO2 Opacity and PM Mercury Low NOx Scrubber Scrubber Dry Sorbent Electro-Static Burners SCR Installation Upgrade Injection Precipitators Baghouse Sorbent Injection Jim Bridger Unit 1 2010 2022 1990 2010 n/a 1974 n/a 2015 Jim Bridger Unit
Slide 33: Summer Outlook
Summer Outlook June 2012 Through August 2012 Precipitation Temperature A-11 Source: NOAA, National Oceanic Atmospheric Administration, U.S. Dept of Commerce
Slide 34: For Additional Information
For Additional Information Steven R. Keen IDACORP, Inc. – Vice President, Finance & Treasurer Idaho Power Company – Senior Vice President, Finance and Treasurer Lawrence F. Spencer Director of Investor Relations (208) 388-2664 LSpencer@idacorpinc.com WWW.IDACORPINC.COM WWW.IDAHOPOWER.COM