Exhibit 99

**IDACORP**

 

February23, 2010

 

**FOR IMMEDIATE RELEASE**Lawrence F. SpencerDirector of Investor RelationsPhone:  (208) 388-2664lspencer@idacorpinc.com

 

 

 

 

**IDACORP, Inc. Announces Year-End and FourthQuarter 2009 Results**

 

 

 

BOISE—IDACORP, Inc. (NYSE:IDA) reported 2009net income attributable to IDACORP, Inc. of $124.4 million or $2.64 per dilutedshare, compared to $98.4 million or $2.17 per diluted share in 2008.  IDACORPreported fourth quarter 2009 net income attributable to IDACORP, Inc. of $23.5million or $0.49 per diluted share, compared to $7.4 million or $0.16 perdiluted share in the fourth quarter of 2008.   Idaho Power Company, IDACORP’sprincipal subsidiary, reported fourth quarter net income of $25.9 millioncompared to $7.7 million in 2008.

“We resourcefully managed our business andachieved increased returns for our owners while moving forward on capitalinvestments necessary to enable future economic development across thecommunities we serve,” said IDACORP, Inc. and Idaho Power Company CEO J. LaMontKeen.  “We remain focused on our core utility business guided by our vision tobe regarded as ‘an exceptional utility’ by our customers, our owners and byothers with whom we interact.”

“Our hard work is being recognized on manyfronts, and overall 2009 was a very successful year,” added Keen.  “Apurposeful regulatory strategy and diligence in preserving our financialstrength while remaining mindful of the adverse economic conditions around usproduced positive results.  We enter 2010 financially healthy with a two yearregulatory framework established in our Idaho retail jurisdiction and ourLangley Gulch Power Plant on schedule to come on line in 2012, positioning usto meet the customer needs we foresee coming out of the economic downturn.” 

 

 

 

 

 

 

 

 

 

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**PerformanceSummary**

A summary ofIDACORP’s and each IDACORP subsidiary’s net income for the three monthsand twelve months ended December 31, 2009 to 2008 is as follows:
|                                | **Three  months ended**                          | **Year ended**    |
|--------------------------------|--------------------------------------------------|-------------------|
|                           | **December  31,**                                | **December  31,** |
|                           | **2009**                                         | **2008**          | **2009** | **2008** |
|                                | (in  thousands except per diluted share amounts) |
|                                |                                                  |                   |  |  |  |  |  |  |
| **Earnings From:**             |                                                  |                   |  |  |  |  |  |  |
|                                | Idaho Power Company                              | $                 | 25,892  | $ | 7,711  | $ | 122,559  | $ | 94,115  |
|                                | IDACORP Financial Services (IFS)                 |                   | (53) |  | 1,214  |  | 521  |  | 3,426  |
|                                | Ida-West Energy (IWE)                            |                   | (52) |  | 182  |  | 2,727  |  | 2,353  |
|                                | Holding Company and All Other                    |                   | (2,274) |  | (1,663) |  | (1,457) |  | (1,480) |
| **Net income attributable to** |                                                  |                   |  |  |  |  |  |  |
|                                | **IDACORP, Inc.**                                | $                 | 23,513  | $ | 7,444  | $ | 124,350  | $ | 98,414  |
|                                |                                             |              |   |   |   |   |   |   |
| Weighted average outstanding   |                                                  |                   |  |  |  |  |  |  |
|                                | shares–diluted                              |                   | 47,724  |  | 46,064  |  | 47,182  |  | 45,379  |
| Earnings per diluted share     | $                                                | 0.49         | $ | 0.16  | $ | 2.64  | $ | 2.17  |

 

Thefollowing table presents a reconciliation of net income attributable toIDACORP, Inc. for the three and twelve months ended December 31, 2008 to December31, 2009 (in millions):
| ** **                                      | **Three months**                                                        | **Year**   |
|-------------------------------------------------|-------------------------------------------------------------------------|------------|
| ** **                                      | **ended**                                                               | **ended**  |
| **December  31, 2008**                          | ** **                                                              | ** ** | **$** | **7.4**  | ** ** | ** ** | **$** | **98.4**  |
| Change  in Idaho Power net income before taxes: |                                                                    |       |   |   |   |   |   |   |
|                                            | Rate  and other regulatory changes, net of PCA(1) and FCA(2) mechanisms | $          | 15.3  |   |   | $ | 48.8  |   |   |
|                                            | Reduced  sales volumes                                                  |       | 0.5  |   |   |   | (23.3) |   |   |
|                                            | Increase  in other O&M(3) expense, excluding FCA                    |       | (0.6) |   |   |   | (2.8) |   |   |
|                                            | Increase  in depreciation expense                                       |       | (5.0) |   |   |   | (8.5) |   |   |
|                                            | 2008  OATT(4) rate refund                                               |       | 8.4  |   |   |   | 5.0  |   |   |
|                                            | 2008  Investment impairment                                             |       | 6.8  |   |   |   | 6.8  |   |   |
|                                            | Other  net increases (decreases)                                        |       | (3.1) |   |   |   | 0.3  |   |   |
| (Increase)  Decrease in income tax expense      |                                                                    | (4.1)      |   |   |   | 2.1  |   |   |
| Total  increase in Idaho Power net income       |                                                                    |       |   | 18.2  |   |   |   | 28.4  |
| Changes  at holding company (net of tax)        |                                                                    |       |   | (0.1) |   |   |   | 0.7  |
| Decreased  net income at IFS (net of tax)       |                                                                    |       |   | (1.3) |   |   |   | (2.9) |
| Other  net decreases (net of tax)               |                                                                    |       |   | (0.7) |   |   |   | (0.2) |
| **December  31, 2009**                          | ** **                                                              | ** ** | **$** | **23.5**  | ** ** | ** ** | **$** | **124.4**  |
|                                            |                                                                    |       |   |   |   |   |   |   |

(1)PCA - Power CostAdjustment

(2)FCA - Fixed CostAdjustment

(3)O&M - Operationsand Maintenance

(4)OATT – Open AccessTransmission Tariff

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Changes to the Idaho PCA mechanism and baserate increases that both took effect in the first quarter of 2009, positivelyimpacted net income as did decreased net power supply costs.  Earnings in 2009also increased due to a May 2009 Oregon Public Utility Commission stipulationallowing the deferral for future recovery of $6.4 million of excess powersupply costs incurred in 2007.

Idaho Power’s retail customer sales volumesdecreased four percent in 2009 as compared to 2008.  Irrigation usage decreased14 percent primarily due to increased precipitation.  Economic factors andenergy conservation also contributed to the reduction in sales volume.

Other O&M expense increased due to anincrease in payroll related expenses and uncollectible accounts and waspartially offset by decreases in outside services and other office expenses. Depreciation expense increased mainly due to the accelerated depreciation of theexisting meter infrastructure.  Two items that positively impacted the comparisonof 2009 to 2008 results relate to 2008 activities that did not recur in 2009;  anOATT rate refund ordered by the Federal Energy Regulatory Commission that reducedtransmission revenue and an impairment of investments.

Idaho Power’s 2009 effective income tax ratedecreased primarily due to examination settlements and the timing and amount ofother regulatory flow-through tax adjustments, partially offset by the taxexpense on higher  pre-tax income.

There was no accelerated amortization ofdeferred investment tax credits during 2009 as the Idaho jurisdictionalearnings exceeded 9.5 percent of the Idaho retail common equity, as permittedby the Idaho 2009 settlement agreement.

 

**Key Operating andFinancial Metrics**
|                               | **2010**                                 | **2009**     |
|------------------------------------|------------------------------------------|--------------|
| ** **                         | **Estimate**                             | **Actual**   |
| Idaho Power Operation  &       |                                     |         |
|                               | Maintenance Expense  (Millions)          | $295-$305    | $293 |
| Idaho Power Capital                |                                     |         |
|                               | Expenditures (Millions) (1)              | $355-$365    | $273 |
| Idaho Power  Hydroelectric         |                                     |         |
|                               | Generation (Million MWh)(2)              | 6.5-8.5      | 8.1 |
| Non-Regulated Subsidiary  Earnings |                                     |         |
|                               | and Holding Company  Expenses (Millions) | $0-$3        | $1.8 |
| Effective Income Tax  Rates:(3)    |                                     |         |
| ** **                         | Idaho Power                              | 13%-17%      | 23% |
| ** **                         | Consolidated – IDACORP              |  6%-10% | 15% |
| ** **                         |                                     |         |   |
|                                    |                                          |              |  |  |

(1)    Therange includes amounts for Langley Gulch Power Plant, the Hemingway-Bowmonttransmission line, the Hemingway substation and expenditures for the siting andpermitting of major transmission expansions for Boardman to Hemingway and theGateway West transmission projects.

(2)    The projected rangefor annual hydroelectric generation is based on 2009-2010 Snake River Basinsnowpack at 60 percent of average on February 21, 2010, with reservoir storagelevels in selected federal reservoirs upstream of Brownlee at approximately 118percent of average as of February 21, 2010. 

(3)    The effective incometax rate ranges include the utilization of up to $25 million of additional deferredinvestment tax credit (ADITC) amortization at Idaho Power.  The rates do notreflect discrete events such as examination settlements or method changes.

 

 

 

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**Earnings Guidance**

Earnings guidance isbeing initiated for 2010 in the range of $2.65-$2.80 per diluted share.  Theguidance incorporates benefits assumed under the settlement agreement approvedby the Idaho Public Utilities Commission (IPUC) among Idaho Power Company,several of Idaho Power’s customers, the IPUC staff and others with respect torates for 2009-2011.  Key elements of the settlement that relate to theguidance provided are the use of investment tax credits to get to a 9.5% returnon equity in the Idaho jurisdiction and an equal sharing of any Idaho earningsexceeding the authorized level of 10.5%.  The guidance also incorporates theimpacts of the estimated key operating metrics noted above.

More detailedfinancial information will be provided in IDACORP’s Annual Report on Form 10-Kto be filed today with the Securities and Exchange Commission and posted to theIDACORP Web site at   www.idacorpinc.com.

** **

**Web Cast / Conference Call**

IDACORPwill hold an analyst conference call today at 2:30 p.m. Mountain Time (4:30p.m. Eastern Time).  All parties interested in listening may do so through alive Web cast, or by calling (617) 614-3472 for listen-only mode.  The passcodeis “Idaho”.  Details of the conference call logistics are posted on the company’sWeb site (http://www.idacorpinc.com).  A replay of the conference callwill be available on the company’s Web site for a period of 12 months.

**Background Information / Safe HarborStatement**

Boise,Idaho-based IDACORP, formed in 1998, is a holding company comprised of IdahoPower Company, a regulated electric utility; IDACORP Financial, a holder ofaffordable housing projects and other real estate investments; and Ida-WestEnergy, an operator of small hydroelectric generation projects that satisfy therequirements of the Public Utility Regulatory Policies Act of 1978.  To learnmore about Idaho Power or IDACORP, visit www.idahopower.comor www.idacorpinc.com.

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                    Certain statements contained in this news release,including statements with respect to future earnings, ongoing operations, andfinancial conditions, are “forward-looking statements” within the meaning offederal securities laws.  Although IDACORP and Idaho Power believe that theexpectations and assumptions reflected in these forward-looking statements arereasonable, these statements involve a number of risks and uncertainties, andactual results may differ materially from the results discussed in the statements. Factors that could cause actual results to differ materially from theforward-looking statements include:  The effect of regulatory decisions by theIdaho Public Utilities Commission, the Oregon Public Utility Commission and theFederal Energy Regulatory Commission affecting our ability to recover costsand/or earn a reasonable rate of return including, but not limited to, thedisallowance of costs that have been deferred; changes in and compliance withstate and federal laws, policies and regulations, including new interpretationsby oversight bodies, which include the Federal Energy Regulatory Commission,the North American Electric Reliability Corporation, the Western ElectricityCoordinating Council, the Idaho Public Utilities Commission and the OregonPublic Utility Commission, of existing policies and regulations that affect thecost of compliance, investigations and audits, penalties and costs ofremediation that may or may not be recoverable through rates; changes in taxlaws or related regulations or new interpretations of applicable law by theInternal Revenue Service or other taxing jurisdictions; litigation andregulatory proceedings, including those resulting from the energy situation inthe western United States, and penalties and settlements that influencebusiness and profitability; changes in and compliance with laws, regulations,and policies including changes in law and compliance with environmental,natural resources, endangered species and safety laws, regulations and policiesand the adoption of laws and regulations addressing greenhouse gas emissions,global climate change, and energy policies; global climate change and regionalweather variations affecting customer demand and hydroelectric generation;over-appropriation of surface and groundwater in the Snake River Basinresulting in reduced generation at hydroelectric facilities; construction ofpower generation, transmission and distribution facilities, including aninability to obtain required governmental permits and approvals, rights-of-wayand siting, and risks related to contracting, construction and start-up;operation of power generating facilities including performance below expectedlevels, breakdown or failure of equipment, availability of transmission andfuel supply; changes in operating expenses and capital expenditures, includingcosts and availability of materials, fuel and commodities; blackouts or otherdisruptions of Idaho Power Company’s transmission system or the westerninterconnected transmission system; population growth rates and otherdemographic patterns; market prices and demand for energy, including structuralmarket changes; increases in uncollectible customer receivables; fluctuationsin sources and uses of cash; results of financing efforts, including theability to obtain financing or refinance existing debt when necessary or onfavorable terms, which can be affected by factors such as credit ratings,volatility in the financial markets and other economic conditions; actions bycredit rating agencies, including changes in rating criteria and newinterpretations of existing criteria; changes in interest rates or rates ofinflation; performance of the stock market, interest rates, credit spreads andother financial market conditions, as well as changes in governmentregulations, which affect the amount and timing of required contributions topension plans and the reported costs of providing pension and otherpostretirement benefits; increases in health care costs and the resultingeffect on medical benefits paid for employees; increasing costs of insurance,changes in coverage terms and the ability to obtain insurance; homelandsecurity, acts of war or terrorism; natural disasters and other natural risks,such as earthquake, flood, drought, lightning, wind and fire; adoption of orchanges in critical accounting policies or estimates; and new accounting orSecurities and Exchange Commission requirements, or new interpretation orapplication of existing requirements.  Any such forward-looking statements shouldbe considered in light of such factors and others noted in the companies’Annual Report on Form 10-K for the year ended December 31, 2008, and theQuarterly Reports on Form 10-Q for the quarters ended March 31, 2009, June 30,2009, and September 30, 2009 and other reports on file with the Securities andExchange Commission.  Any forward-looking statement speaks only as of the dateon which such statement is made.  New factors emerge from time to time and itis not possible for management to predict all such factors, nor can it assessthe impact of any such factor on the business or the extent to which anyfactor, or combination of factors, may cause results to differ materially fromthose contained in any forward-looking statement.

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