July 31, 2009

Company Files Oregon General Rate Case

BOISE, Idaho, Friday, July 31—Idaho Power today filed an application with the Public Utility Commission of Oregon (OPUC)  requesting to increase the base rates it charges Oregon customers. This is the first such base rate request in approximately five years, and the company is asking for an average 22.6 percent increase. This rate change will address a long-term, substantial imbalance between the cost of providing service in Oregon and Idaho Power’s ability to recover those costs under current rates.

“We understand challenging economic conditions make the timing of this particular rate request difficult,” said Vice President of Regulatory Affairs Ric Gale. “Under regulation, Idaho Power invests up front to serve customers and recovers the cost of the investment, along with a fair return, later. During the last five years, we invested hundreds of millions of dollars in infrastructure, ensuring reliable power on-demand as we serve our communities.”

From 2003 to 2008, exclusive of depreciation, Idaho Power’s electric plant investment increased approximately $800 million. Customers in Idaho experienced a number of base rate increases totaling 21.5 percent over the past five years while the base rates of Oregon customers remained unchanged.

“The company did not change its Oregon base rates to reflect all increases in expenses and investment over the last five years,” added Gale. “But after years of growing demand on our system, we are in the position of trying to catch up while building for the future.”

The OPUC has up to 10 months to consider Idaho Power’s request for the proposed rate change. It will begin a comprehensive review of the company’s application and will seek public input on the filing. Idaho Power supports this process, values customer opinion and encourages participation.

“Idaho Power has historically provided among the lowest—if not the lowest—electric rates in the nation, and even with this current request for rate recovery, we anticipate being able to maintain our low rate position,” said Gale.

Copies of the filing are available on Idaho Power’s Web site at www.idahopower.com/oregonratefiling, and also will be posted on the OPUC Web site, www.puc.state.or.us.

IDACORP, Inc. (NYSE:IDA), Boise, Idaho-based and formed in 1998, is a holding company comprised of Idaho Power Company, a regulated electric utility; IDACORP Financial, a holder of affordable housing projects and other real estate investments; and Ida-West Energy, an operator of small hydroelectric generation projects that satisfy the requirements of the Public Utility Regulatory Policies Act of 1978. IDACORP’s origins lie with Idaho Power and operations beginning in 1916. Today, Idaho Power employs 2,050 people to serve a 24,000 square-mile service area in southern Idaho and eastern Oregon. With 17 low-cost hydroelectric projects as the core of its generation portfolio, Idaho Power’s 487,000 residential, business and agricultural customers pay some of the nation’s lowest prices for electricity. To learn more about Idaho Power or IDACORP, visit www.idahopower.com or www.idacorpinc.com.