Idacorp, Inc. · NYSE:IDA
Idacorp — West Coast Seminar 2012
35 slides from Idacorp's conference presentation, Mar 22, 2012
Slide 1: West Coast Seminar
West Coast Seminar Las Vegas, Nevada March 22, 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 Overview Operations Investment Themes 1 General Business Energy Sales & Revenues 17 IDACORP Organization Structure 2 2011 IRP Today & Tomorrow 18 Idaho Power Service Area 3 2011 Integrated Resource Plan 19 Idaho Power Core Business 4 Summer Peak Load & Resources 20 Corporate Citize
Slide 4: IDACORP Investment Themes
IDACORP Investment Themes • Strong Base – Nearly 100 Years as an Operating Electric Utility – Low Cost Hydroelectric Generating Facilities – Productive Regulatory Strategy • Proven Record – Financial Results 2007 – 2011 – Good Corporate Citizen – Regulatory Achievements • Future Growth – Near-Term P
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 Hydroelectric Facilities and A Jim Bridger 770.5 MW* Nameplate Capacities A North Valmy 283.5 MW* Eh Hells Canyon 391.5 MW A Boardman 64.2 MW* Oxbow 190.0 MW NaturalGas EI Brownlee 585.4 MW WASHINGTON penne Mountain vvooenwe* El Cascade
Slide 7: Idaho Power Core Business
Idaho Power Core Business Generation 1,709 1.118 449 3,276 Transmission 4,828 Miles of high-voltage transmission lines Distribution Lines 26,714 Miles of distribution lines MW Hydro MW Coal MW Other Total MW . . Customers ; Step-Up Station Substation 495,570 General Business Customers 23 In service
Slide 8: Good Corporate Citizen
Good Corporate Citizen Benchmarking Air Emissions of the 100 Largest Electric Power Producers in the United States Idaho Power Prepared June 2010 by a collaborative effort among Ceres, the Natural Resources Defense Council (NRDC), Public Service Enterprise Group (PSEG), Constellation Energy and Ente
Slide 9: 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 10: 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 7 Source: Moody’s Analytics, January 2012
Slide 11: Financial
Financial
Slide 12: 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 10% $3.36 10.1% $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 $0.00 0% 2007 2008 2009 2010 2011 2007 2008 2009 2010 2
Slide 13: Estimated Capital Expenditures and Liquidity
Estimated Capital Expenditures ($ Million) 2012 2013 - 2014 Ongoing Capital Expenditures $ 200 – 205 $ 490 – 500 Langley Gulch 30 – 35 – Total $ 230 – 240 $ 490 – 500 Liquidity As of December 31, 2011 Idaho ($ Million) IDACORP Power(1) 5-Year Line of Credit Facility – Expires October 2016 $ 125 $ 30
Slide 14: Credit Ratings
Credit Ratings As of February 22, 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/VMI
Slide 15: Key Financial & Operating Metrics and 2012 Earnings Guidance
Key Financial & Operating Metrics and 2012 Earnings Guidance 2012 Estimate (1) 2011 Actual Idaho Power Operations & Maintenance Expense (millions) $325 – $335 $339 Idaho Power Capital Expenditures (millions) $230 – $240 $338 Idaho Power Hydroelectric Generation (million MWh) 7.5 – 9.5 10.9 Non-Regul
Slide 16: Regulatory
Regulatory
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: ADITC Extension 2012-2014
ADITC Extension 2012-2014 Sharing Percentage Customer Benefit Earnings Deadband Company Benefit Ability To Use Additional ADITC’s of up to $25 million in Return On Year-End Equity In Idaho Jurisdiction 2012 and $45 million over three year period 2012-2014 ADITC—Accumulated Deferred Investment Tax Cr
Slide 19: 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 $0.01 2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011 Idaho Power National Average* Idaho Power National Average * * Sou
Slide 20: Small Industrial Electric Rates
Small Industrial Electric Rates Monthly Cost for 1,000 kW and 400,000 kWh As of July 1, 2011 Source: EEI Residential, Commercial, Industrial bills; Investor-Owned Utilities 15
Slide 21: Residential Electric Rates
Residential Electric Rates Monthly Cost for 1,000 kWh As of July 1, 2011 Source: EEI Residential, Commercial, Industrial bills; Investor-Owned Utilities 16
Slide 22: Operations
Operations
Slide 23: General Business Energy Sales & Revenues
General Business Energy Sales & Revenues By Customer Class General Business Energy Sales General Business Revenues (MWh’s - Thousands) ($millions) 16,000 $1,000 14,542 14,544 $ 883.8 $ 870.4* 13,948 13,513 13,734 $900 14,000 $ 834.5* $ 784.3 $800 12,000 $ 668.3 $700 10,000 $600 8,000 $500 $400 6,000
Slide 24: 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 18
Slide 25: 2011 Integrated Resource Plan
2011 Integrated Resource Plan 19
Slide 26: Summer Peak Load and Resources
Summer Peak Load and Resources July 16, 2010 20
Slide 27: PURPA Projects Under Contract
PURPA Projects Under Contract 21
Slide 28: July 26, 2011 Total System Load and Wind
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 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 31: Langley Gulch
Langley Gulch • Plant Statistics • Rate Recovery – 300 MW combined cycle natural – Total Estimated Plant Investment $398.1M gas power plant – Idaho Rate Base $336.7M – On schedule & within the budget of – Regulated Rate of Return 7.86% $427 million – Revenue Deficiency $59.9M – Expected in-service –
Slide 32: Boardman to Hemingway 500kV Project
Boardman to Hemingway 500kV 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. 26 www. boardmantohemingway.com
Slide 33: Gateway West Transmission Line Project
Gateway West Transmission Line Project A joint proposal between Idaho Power Company and PacifiCorp 27 www. gatewaywestproject.com
Slide 34: Spring Outlook
Spring Outlook March 2012 Through May 2012 Precipitation Temperature 28 Source: NOAA, National Oceanic Atmospheric Administration, U.S. Dept of Commerce
Slide 35: For Additional Information
For Additional Information Steven R. Keen Vice President Finance and Treasurer (208) 388-2600 Lawrence F. Spencer Director of Investor Relations (208) 388-2664 [email protected] WWW.IDACORPINC.COM WWW.IDAHOPOWER.COM