Idacorp earnings jump in quarter

Idaho Power parent Idacorp Inc. reported net income of $29.7 million or 60 cents per diluted share in the March 31 quarter, up from $16.1 million or 34 cents per share a year earlier.

Stronger demand for power in winter and a 2010 regulatory settlement boosted the company’s performance, officials said.

Total operating revenue dropped from $252.96 million to $251.49 million largely because Idaho Power’s annual Power Cost Adjustment rate was reduced June 1, the company said. The PCA covers changes in power costs from year to year and is one factor in what customers pay.  Idaho Power filed to reduce the rate again this year.

But the economic downturn continues to affect the Idaho Power service area, and make the company closely monitor capital expenditures, Idacorp President and CEO LaMont Keen said in a conference call with analysts.

Idacorp officials said the company benefited from a 2010 regulatory settlement with the Idaho Public Utilities Commission. The settlement limits changes to ongoing base rates but allows additional benefits from a tax credit as long as the company’s return on equity falls below a threshold.

The company recorded a $3.9 million benefit from this credit in the first quarter, but it could be erased if a congressional committee approves an April agreement with the Internal Revenue Service involving the 2009 tax year, said Jim Bellessa, analyst with Great Falls, Mont.-based D.A. Davidson & Co. Final approval would give Idacorp a $60 million tax benefit that pushes financial results well above expectations, he said.

Analysts expected Idacorp to earn 48 cents per share on average. Bellessa had expected earnings of 46 cents a share, he said. HIgher winter demand and better hydroelectric power generating conditions benefited Idaho Power, he said.

Idacorp stock traded above $38 late May 5, near a one-year high.