BOISE, Idaho, Dec. 12, 2011 /PRNewswire/ -- Today, Idaho Power Company (Idaho Power), a wholly owned subsidiary of IDACORP, Inc. (NYSE: IDA), filed a settlement stipulation with the Idaho Public Utilities Commission (IPUC). This filing related to the request included in its original Nov. 2, 2011 IPUC application, which sought to continue Idaho Power's ability to use deferred investment tax credits to help achieve a minimum return on year-end equity in the Idaho retail jurisdiction. The Dec. 12, 2011 settlement stipulation was executed by Idaho Power, the IPUC Staff, and one large industrial customer of Idaho Power and is subject to review and approval by the IPUC.
If the settlement stipulation is approved as filed, Idaho Power will be allowed to amortize additional deferred investment tax credits if the company's earnings fall below a 9.5 percent return on Idaho jurisdictional year-end equity for the years 2012, 2013 and 2014. Idaho jurisdictional earnings exceeding 10 percent and up to 10.5 percent will be shared equally between the Idaho customers and Idaho Power and earnings above 10.5 percent will be shared 75 percent to Idaho customers and 25 percent to Idaho Power. This settlement modifies the original filing by extending the agreement term from 2 to 3 years and increases the amount of potential benefit for Idaho customers.
The settlement stipulation provides that the requested return on year-end equity thresholds (9.5 percent, 10.0 percent, and 10.5 percent) will be automatically adjusted in the future in the event the IPUC approves a change to Idaho Power's authorized return on equity as part of a general rate case proceeding seeking a rate change, other than a single-issue rate case proceeding, such as one relating to Idaho Power's Langley Gulch power plant.
In consideration of these terms, the settlement stipulation provides that Idaho Power would allocate to customers 75 percent of Idaho Power's share of 2011 Idaho jurisdictional earnings over a 10.5 percent return on year-end equity. In its Quarterly Report on Form 10-Q for the quarter ended September 30, 2011, Idaho Power stated that if the November 2, 2011 settlement stipulation was approved as-filed, it expected that it would record a pre-tax charge of approximately $10 million in the fourth quarter of 2011. As a result of modifications to the terms of the November 2 application discussed above, Idaho Power now expects that the pre-tax charge would be approximately $15 million.
Additional details can be found in Idaho Power's Current Report on Form 8-K filed on Dec. 12, 2011 with the Securities and Exchange Commission and posted to the IDACORP Web site at www.idacorpinc.com.
IDACORP 2011 Annual Earnings Guidance Re-affirmed
Notwithstanding the anticipated increase in the estimated fourth quarter charge discussed above, IDACORP is re-affirming its earnings guidance estimate for full year 2011 in the range of $3.35 to $3.45 per diluted share.
Forward-Looking Statements
This news release contains statements that relate to future events and expectations and, as such, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that express, or involve discussions as to expectations, beliefs, plans, objectives, assumptions, or future events or performance, often, but not always, through the use of words or phrases such as "expects," "estimates," or similar expressions, are not statements of historical facts and may be forward-looking. Forward-looking statements are not guarantees of future performance and involve estimates, assumptions, risks, and uncertainties. Actual results, performance, or outcomes may differ materially from the results discussed in the statements. In addition to any assumptions and other factors and matters referred to specifically in connection with such forward-looking statements, factors that could cause actual results or outcomes to differ materially from those contained in forward-looking statements in this report include those factors discussed in IDACORP Inc.'s and Idaho Power Company's 2010 Annual Report on Form 10-K, particularly Item 1A - "Risk Factors"; Part II, Item 7 - "Management's Discussion and Analysis of Financial Condition and Results of Operations"; and Notes 2, 11, and 15 to the consolidated financial statements included in the Annual Report on Form 10-K; subsequent reports filed by IDACORP, Inc. and Idaho Power Company with the Securities and Exchange Commission; and the following important factors: (a) the effect of regulatory decisions by the Idaho Public Utilities Commission, the Oregon Public Utility Commission, and the Federal Energy Regulatory Commission affecting Idaho Power's ability to recover costs and/or earn a reasonable rate of return; (b) changes in and compliance with state and federal laws, policies, and regulations, including new interpretations and enforcement initiatives by federal and state regulatory and oversight bodies; (c) changes in tax laws or new interpretations of tax laws, and the availability, use, and regulatory treatment of tax credits; (d) litigation and regulatory proceedings, and penalties, settlements, or awards that influence business and profitability; and (e) new accounting or Securities and Exchange Commission or New York Stock Exchange requirements, or new interpretations or application of existing requirements. Any forward-looking statement speaks only as of the date on which such statement is made. New factors emerge from time to time and it is not possible for management to predict all such factors, nor can it assess the impact of any such factor on the business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. IDACORP, Inc. and Idaho Power Company disclaim any obligation to update publicly any forward-looking information, whether in response to new information, future events, or otherwise, except as required by applicable law.
SOURCE Idaho Power
