IDACORP Inc. (IDA, Financial) filed Quarterly Report for the period ended 2009-09-30.
Idacorp Inc. is an electric public utility company. The company is engaged in the generation purchase transmission distribution and sale of electric energy primarily in the areas including southern Idaho eastern Oregon and northern Nevada. The company relies heavily on hydroelectric power for its generating needs and is one of the nation's few investor-owned utilities with a predominantly hydro base. The company's principal commercial and industrial customers include lodges condominiums and ski lifts and related facilities. Idacorp Inc. has a market cap of $1.34 billion; its shares were traded at around $28.44 with a P/E ratio of 12.5 and P/S ratio of 1.4. The dividend yield of Idacorp Inc. stocks is 4.2%.
Gateway West transmission project: IPC and PacifiCorp are jointly exploring Gateway West, a project to build transmission lines between Windstar, a substation located near Douglas, Wyoming and Hemingway, a substation located in the vicinity of Melba and Murphy, Idaho near Boise. The estimated cost for IPCs share of the project is between $500 million and $600 million. The lines will provide transmission service for existing network and native load customers and their forecasted growth and provide for existing third-party transmission service requests. This project is intended to relieve existing congestion by increasing transmission capacity and to improve reliability to comply with reliability regulations. Initial phases of the project could be completed by 2014.
Pension Plan: Provisions of the Pension Protection Act (PPA), relief provisions of the Worker, Retiree, and Employer Recovery Act (WRERA), U.S. Treasury Department (Treasury) guidance, and IRS guidance require that if a company does not meet minimum funding levels, the company must make additional contributions to improve the funded status of the plan. The funded status of IPCs pension plan at January 1, 2009, was above the minimum required funding levels as revised by the PPA, WRERA, Treasury guidance and IRS guidance. Based on the assumptions allowed under the PPA, WRERA, Treasury guidance and IRS guidance, IDACORP and IPC have not contributed and are not required to contribute to the pension plan in 2009, and estimated minimum required contributions will be approximately $6 million in 2010, $46 million in both 2011 and 2012, and $41 million in 2013.
Oregon Excess Power Cost Deferrals May-December 2007 Excess Power Costs: On May 28, 2009, the OPUC adopted a stipulation allowing IPC to defer excess net power supply costs of $6.4 million (including interest through the date of the order) for the period May 1 through December 31, 2007. IPC recorded this deferral in the second quarter of 2009. The amount to be recovered was reduced by $0.9 million of emission allowance sales previously deferred, resulting in an approved deferral balance of $5.5 million.
Idaho OATT Shortfall Filing: On July 20, 2009, IPC filed a request with the IPUC for authorization to defer $8.1 million associated with shortfalls in the amount of OATT revenues that IPC will receive between March 2008 and May 2010. On September 29, 2009, the IPUC Staff filed comments. Both parties have agreed to reduce the calculation of the total deferral from $8.1 million to $4.7 million to reflect transmission rate increases that became effective after IPC filed its application.
OATT Amended Legacy Agreements: In April and June 2009 IPC submitted filings to the FERC to increase rates under agreements IPC has with PacifiCorp. The revised agreements would increase annual transmission revenues approximately $7.1 million. On August 18, 2009, the FERC accepted one of IPCs filings for a net transmission revenue increase of $3.2 million and suspended it, setting it for settlement judge procedures and hearing. A settlement conference was held on October 7, 2009 and another is scheduled for November 18, 2009 with settlement discussions ongoing. IPC is collecting the new rates subject to refund and has reserved the entire increase pending settlement.
Read the The complete ReportIDA is in the portfolios of Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, David Dreman of Dreman Value Management, Kenneth Fisher of Fisher Asset Management, LLC.
Idacorp Inc. is an electric public utility company. The company is engaged in the generation purchase transmission distribution and sale of electric energy primarily in the areas including southern Idaho eastern Oregon and northern Nevada. The company relies heavily on hydroelectric power for its generating needs and is one of the nation's few investor-owned utilities with a predominantly hydro base. The company's principal commercial and industrial customers include lodges condominiums and ski lifts and related facilities. Idacorp Inc. has a market cap of $1.34 billion; its shares were traded at around $28.44 with a P/E ratio of 12.5 and P/S ratio of 1.4. The dividend yield of Idacorp Inc. stocks is 4.2%.
Highlight of Business Operations:
Changes to the Idaho power cost adjustment (PCA) mechanism and changes to base rates positively impacted net income. These changes were partially offset by the increased depreciation expense related to the Advanced Metering Infrastructure (AMI) project and increased net power supply costs. Also offsetting the changes was the effect of Idaho Public Utilities Commission (IPUC) orders that revised the allocation method for base net power supply costs in the PCA calculation over the year. The allocation method did not affect the total amount of base net power supply costs used to calculate the PCA deferral, but did affect the quarters in which the costs were allocated. This change reduced earnings by approximately $4.2 million and $1.6 million (net of tax) for the quarter and year-to-date, respectively, compared to 2008.Gateway West transmission project: IPC and PacifiCorp are jointly exploring Gateway West, a project to build transmission lines between Windstar, a substation located near Douglas, Wyoming and Hemingway, a substation located in the vicinity of Melba and Murphy, Idaho near Boise. The estimated cost for IPCs share of the project is between $500 million and $600 million. The lines will provide transmission service for existing network and native load customers and their forecasted growth and provide for existing third-party transmission service requests. This project is intended to relieve existing congestion by increasing transmission capacity and to improve reliability to comply with reliability regulations. Initial phases of the project could be completed by 2014.
Pension Plan: Provisions of the Pension Protection Act (PPA), relief provisions of the Worker, Retiree, and Employer Recovery Act (WRERA), U.S. Treasury Department (Treasury) guidance, and IRS guidance require that if a company does not meet minimum funding levels, the company must make additional contributions to improve the funded status of the plan. The funded status of IPCs pension plan at January 1, 2009, was above the minimum required funding levels as revised by the PPA, WRERA, Treasury guidance and IRS guidance. Based on the assumptions allowed under the PPA, WRERA, Treasury guidance and IRS guidance, IDACORP and IPC have not contributed and are not required to contribute to the pension plan in 2009, and estimated minimum required contributions will be approximately $6 million in 2010, $46 million in both 2011 and 2012, and $41 million in 2013.
Oregon Excess Power Cost Deferrals May-December 2007 Excess Power Costs: On May 28, 2009, the OPUC adopted a stipulation allowing IPC to defer excess net power supply costs of $6.4 million (including interest through the date of the order) for the period May 1 through December 31, 2007. IPC recorded this deferral in the second quarter of 2009. The amount to be recovered was reduced by $0.9 million of emission allowance sales previously deferred, resulting in an approved deferral balance of $5.5 million.
Idaho OATT Shortfall Filing: On July 20, 2009, IPC filed a request with the IPUC for authorization to defer $8.1 million associated with shortfalls in the amount of OATT revenues that IPC will receive between March 2008 and May 2010. On September 29, 2009, the IPUC Staff filed comments. Both parties have agreed to reduce the calculation of the total deferral from $8.1 million to $4.7 million to reflect transmission rate increases that became effective after IPC filed its application.
OATT Amended Legacy Agreements: In April and June 2009 IPC submitted filings to the FERC to increase rates under agreements IPC has with PacifiCorp. The revised agreements would increase annual transmission revenues approximately $7.1 million. On August 18, 2009, the FERC accepted one of IPCs filings for a net transmission revenue increase of $3.2 million and suspended it, setting it for settlement judge procedures and hearing. A settlement conference was held on October 7, 2009 and another is scheduled for November 18, 2009 with settlement discussions ongoing. IPC is collecting the new rates subject to refund and has reserved the entire increase pending settlement.
Read the The complete ReportIDA is in the portfolios of Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, David Dreman of Dreman Value Management, Kenneth Fisher of Fisher Asset Management, LLC.
