"This is truly a win-win-win situation for our customers, our owners and for our company," said Ric Gale, Idaho Power Vice President of Regulatory Affairs. "The settlement is a creative and resourceful response to a complex set of issues. We appreciate the engagement and customer-focused advocacy of the IPUC Staff and customer groups throughout the process. The outcome is a testament to what can be accomplished when people come together and work collectively to find solutions."

Idaho Power President and CEO J. LaMont Keen pointed out another important factor in the settlement. "As a provider of an essential service, remaining financially healthy even during challenging economic times is critical to the communities we serve," said Keen. "Our need to make necessary investments for providing reliable service both today and tomorrow when the economy recovers is recognized by our customers and the Staff of the IPUC in this agreement. At the same time, all parties are cognizant of the need to mitigate rate impacts on customers during periods of financial stress for homes and businesses. This agreement provides required regulatory cost recovery and financial support to the company while establishing a period of relative rate stability for our customers."

In general terms, the settlement contains three important elements: (1) a general rate freeze until January 1, 2012; (2) a specified distribution of the expected 2010 PCA decrease to directly reduce customer rates, providing some general rate relief to the company and resetting base level power supply costs for the PCA going forward; and (3) an equal sharing of any Idaho earnings exceeding the authorized level.

The PCA is an annual filing that balances last year's forecasted costs of providing energy to customers to actual expenses, including anticipated fuel costs for generating electricity, power purchases and benefits of off-system sales for the coming year. During negotiations, Idaho Power estimated the expected 2010 PCA decrease to be approximately $160 million. The 2010 PCA is planned to be filed April 15 with an effective date of June 1.

The next step in this process is public comment on and consideration of the settlement stipulation by IPUC. The parties hope for a commission order in late December or early January.

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 approximately 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 489,000 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.

SOURCE IDACORP, Inc.

http://www.idacorpinc.com

    --  Grid reliability
    --  Involved and informed participation by consumers

    --  Sustainability through integration of renewable resources

"Selection of Idaho Power's Advanced Metering and Customer Systems projects for potential stimulus funding is an opportunity to provide direct benefits to our owners and our customers," said Dan Minor, executive vice president of operations for Idaho Power. "Pursuing funding options, such as the Department of Energy's Smart Grid Investment Grant Program, that further our company's ability to provide reliable, fair-priced electric service demonstrates our commitment to our customers and owners. It would have been a missed opportunity not to respond to the DOE's funding opportunity given the breadth of our existing work in Advanced Metering."

Colleen Ramsey, manager of delivery construction for Idaho Power, has been selected to lead the Smart Grid project. "Especially during these recessionary economic times when we are focusing on operational efficiencies and doing more with less, we look for creative solutions to fund new technologies and innovations that enable our business to operate more efficiently and offer our customers the ability to make smarter energy choices," said Ramsey. "With the support of our consultant SAIC, a leader in utility technology solutions, we were able to highlight the value our proposal brings to the advancement of the Smart Grid through the development of Advance Metering Infrastructure, customer systems and transmission and distribution. These projects are intended to assist us in managing peak energy use, increasing energy efficiency, improving grid reliability and integrating renewable resources."

"On behalf of our company and customers, I particularly want to thank the Governor, the Public Utilities Commission and our Idaho congressional delegation for their support of our application," said Idaho Power President and CEO J. LaMont Keen.

The Department of Energy used a competitive, merit-based process to select qualified projects to receive $3.4 billion in matching grants for smart grid technology deployments. For more information on the DOE's Smart Grid initiative, please visit: http://www.energy.gov/news2009/8216.htm.

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 approximately 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 489,000 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.

Project Overview:

Idaho Power's application for the Department of Energy's Stimulus Funding Opportunity Smart Grid Investment Grant (SGIG) program focused on the need to strengthen and modernize the nation's electricity delivery system. The proposal directly supported the core purposes of the stimulus funds: to accelerate the deployment of Smart Grid technologies and to stimulate the state, regional and national economy by quickly providing new and accelerated opportunities for businesses and significant new jobs for workers. The proposal also supported the program's environmental goals by empowering consumers, fostering behavior change, and supporting the integration of renewable resources thereby reducing energy use and greenhouse gas emissions. The application requested half of the $94 million project cost.

At the heart of our Smart Grid initiative is the ability to empower customers to proactively manage their energy usage and costs by providing them with time variant pricing options enabled through smart meters and other related technologies. Among other benefits, we believe that community participation through this Smart Grid initiative will help Idaho Power lead the way and achieve measureable results towards:

    --  Reduced electricity consumption
    --  Lower peak demand
    --  Continuation of some of the lowest electric rates in the nation
    --  Reduced costs of power interruptions
    --  More reliability and resiliency in operating the grid

    --  Reliable and efficient integration of renewable generation resources

Project scope:

    --  Implement smart meters
    --  Increase customer access to energy usage information
        --  provide customers' electrical energy use through smart meters and
            software systems
        --  allow customers to view energy use, enabling them to make informed
            choices regarding their energy use
        --  implement a Customer Information System (CIS) and enterprise meter
            data warehouse to provide territory wide time-variant-pricing
            options and customer relations management tools allowing our
            customer service representatives to help customers interpret their
            energy use and recommend programs and options to reduce use and cost
    --  Improve electrical infrastructure
        --  implement an outage management system that communicates with a
            customer's electric meter to determine the extent of outages and
            validate restoration of service
        --  add transmission system tools enhancing reliability and allowing the
            reliable and efficient integration of renewable generation

        --  install devices to minimize outage size and duration

Receipt of the grant will contribute to Idaho Power's continued strategy of responsible planning, protecting current resources and ensuring responsible energy usage.

SOURCE Idaho Power

http://www.idahopower.com

"New and upgraded infrastructure is needed before southern Idaho and eastern Oregon can take full advantage of opportunities when the economic climate rebounds. This means additional investments followed by timely recovery of those investments. It also means we continue to aggressively manage the business balancing the interests of our customers, employees and owners to ensure our communities prosper and IDACORP remains financially strong."

Performance Summary

A summary of IDACORP's and each IDACORP subsidiary's net income for the third quarter and year-to-date 2009 as compared to 2008 is as follows:

                                  Three months ended       Nine months ended
                                     September 30,           September 30,
                                     -------------           -------------
                                    2009        2008        2009        2008
                                    ----        ----        ----        ----
                               (in thousands except per diluted share amounts)

    Earnings From:
     Idaho Power Company (IPC)    $51,057     $47,405     $96,667     $86,404
     IDACORP Financial Services
      (IFS)                           245         710         574       2,212
     Ida-West Energy                1,208       1,208       2,780       2,171
     Holding Company and All
      Other                         1,968       2,416         816         182
    ------------------------        -----       -----         ---         ---
    Net income attributable to
     IDACORP, Inc.                $54,478     $51,739    $100,837     $90,969
    ==========================

    Weighted average outstanding
     shares-diluted                47,141      45,246      46,999      45,149
    Earnings per diluted share      $1.16       $1.14       $2.15       $2.02

The following table presents a reconciliation of net income attributable to IDACORP, Inc. for the three and nine months ended September 30, 2008 to September 30, 2009 (in millions):

                                             Three months     Nine months
                                                 ended           ended
                                                 -----           -----
    September 30, 2008                                   $51.7          $91.0
    Change in IPC net income before taxes:
      Rate and other regulatory changes, net
       of PCA                                    $4.3            $20.5
      Reduced sales volumes, net of FCA
       deferral                                  (5.5)           (20.7)
      Oregon 2007 excess power cost deferral in
       2009                                         -              6.4
      Decrease in transmission revenue           (1.3)            (4.2)
    Reduced effective income tax rate             3.8              7.3
    Other, including tax impacts of listed items  2.4              1.0
    --------------------------------------------  ---              ---
    Total increase in IPC net income                       3.7           10.3
    Other net decreases (net of tax)                      (0.9)          (0.5)
    -------------------------------                       -----          ----
    September 30, 2009                                   $54.5         $100.8
    ==================                                   =====         ======

    --  Changes to the Idaho power cost adjustment (PCA) mechanism and changes
        to base rates positively impacted net income.  These changes were
        partially offset by the increased depreciation related to the Advanced
        Metering Infrastructure project and increased net power supply costs.
        Also offsetting the changes was the effect of Idaho Public Utilities
        Commission orders that revised the allocation method for base net power
        supply costs in the PCA calculation over the year.  The allocation
        method did not affect the total amount of base net power supply costs
        used to calculate the PCA deferral, but did affect the quarters in which
        the costs were allocated.  This change reduced earnings by approximately
        $4.2 million and $1.6 million (net of tax) for the quarter and
        year-to-date, respectively, compared to 2008.
    --  IPC's retail customer sales volumes decreased four percent for the
        quarter and five percent year-to-date, due primarily to weather
        fluctuations.  To a lesser extent economic factors and energy efficiency
        contributed to the reduction in sales volume.  Partially offsetting the
        volume decreases is the Fixed Cost Adjustment Mechanism, which mitigates
        the impact of changes in sales volumes from levels included in base
        rates.
    --  Increasing the 2009 year-to-date earnings is a May 2009 Oregon Public
        Utility Commission stipulation allowing the deferral for future recovery
        of $6.4 million of excess power supply costs incurred in 2007, the
        effect of which was recorded in the second quarter of 2009.
    --  Transmission revenue decreased due to a decrease in the open access
        transmission tariff rates.

    --  IPC's 2009 effective income tax rate decreased primarily due to an
        examination settlement, state bonus depreciation and timing and amount
        of other regulatory flow-through tax adjustments.

2009 Outlook

The outlook for key operating and financial metrics is:

                                                    2009 Estimates
    Key Operating & Financial Metrics           Current          Previous
    Idaho Power Operation &
     Maintenance Expense (Millions)            No Change         $280-$290
    Idaho Power Capital
     Expenditures (Millions) (1)               $255-$270         $220-$230
    Idaho Power Hydroelectric
     Generation (Million MWh)(2)                8.0-8.5           7.5-8.5
    Non-Regulated Subsidiary Earnings
     and Holding Company Expenses (Millions)   No Change         $0.0-$3.0
    Effective Tax Rates:
      Idaho Power                              No Change          26%-31%
      Consolidated - IDACORP                   No Change          19%-24%


    (1)  The revised range of capital expenditures reflects the 2009 estimate
         for Langley Gulch Power Plant construction expenditures of $50
         million to $55 million offset by lower estimated ongoing capital
         expenditures.  For the three-year period, 2009-2011, IPC expects to
         spend approximately $975 million to $1 billion.  This amount includes
         Langley Gulch Power Plant and expenditures for the siting and
         permitting of major transmission expansions for Boardman to Hemingway
         transmission line, Gateway West transmission project, and the
         Hemingway-Bowmont transmission line and the Hemingway Station
    (2)  The range of estimated hydroelectric generation includes actual
         generation through September and estimated ranges of generation for
         the remainder of the year.  Year-to-date performance reflects the
         impact of above normal precipitation and higher reservoir storage
         releases.

More detailed financial information will be provided in IDACORP's Quarterly Report on Form 10-Q to be filed today with the Securities and Exchange Commission and posted to the IDACORP Web site at www.idacorpinc.com.

Web Cast / Conference Call

IDACORP will hold an analyst conference call today at 2:30 p.m. Mountain Time (4:30 p.m. Eastern Time). All parties interested in listening may do so through a live Web cast, or by calling (617) 614-3671 for listen-only mode. The passcode is "Idaho". Details of the conference call logistics are posted on the company's Web site (http://www.idacorpinc.com). A replay of the conference call will be available on the company's Web site for a period of 12 months.

Background Information / Safe Harbor Statement

Boise, Idaho-based IDACORP, 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. To learn more about Idaho Power or IDACORP, visit www.idahopower.com or www.idacorpinc.com.

Certain statements contained in this news release, including statements with respect to future earnings, ongoing operations, and financial conditions, are "forward-looking statements" within the meaning of federal securities laws. Although IDACORP and Idaho Power believe that the expectations and assumptions reflected in these forward-looking statements are reasonable, these statements involve a number of risks and uncertainties, and actual results may differ materially from the results discussed in the statements. Factors that could cause actual results to differ materially from the forward-looking statements include: The effect of regulatory decisions by the Idaho Public Utilities Commission, the Oregon Public Utility Commission and the Federal Energy Regulatory Commission affecting our ability to recover costs and/or earn a reasonable rate of return including, but not limited to, the disallowance of costs that have been deferred; changes in and compliance with state and federal laws, policies and regulations, including new interpretations by oversight bodies, which include the Federal Energy Regulatory Commission, the North American Electric Reliability Corporation, the Western Electricity Coordinating Council, the Idaho Public Utilities Commission and the Oregon Public Utility Commission, of existing policies and regulations that affect the cost of compliance, investigations and audits, penalties and costs of remediation that may or may not be recoverable through rates; changes in tax laws or related regulations or new interpretations of applicable law by the Internal Revenue Service or other taxing jurisdictions; litigation and regulatory proceedings, including those resulting from the energy situation in the western United States, and penalties and settlements that influence business 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 policies and the adoption of laws and regulations addressing greenhouse gas emissions, global climate change, and energy policies; global climate change and regional weather variations affecting customer demand and hydroelectric generation; over-appropriation of surface and groundwater in the Snake River Basin resulting in reduced generation at hydroelectric facilities; construction of power generation, transmission and distribution facilities, including an inability to obtain required governmental permits and approvals, rights-of-way and siting, and risks related to contracting, construction and start-up; operation of power generating facilities including performance below expected levels, breakdown or failure of equipment, availability of transmission and fuel supply; changes in operating expenses and capital expenditures, including costs and availability of materials, fuel and commodities; blackouts or other disruptions of Idaho Power Company's transmission system or the western interconnected transmission system; population growth rates and other demographic patterns; market prices and demand for energy, including structural market changes; increases in uncollectible customer receivables; fluctuations in sources and uses of cash; results of financing efforts, including the ability to obtain financing or refinance existing debt when necessary or on favorable terms, which can be affected by factors such as credit ratings, volatility in the financial markets and other economic conditions; actions by credit rating agencies, including changes in rating criteria and new interpretations of existing criteria; changes in interest rates or rates of inflation; performance of the stock market, interest rates, credit spreads and other financial market conditions, as well as changes in government regulations, which affect the amount and timing of required contributions to pension plans and the reported costs of providing pension and other postretirement benefits; increases in health care costs and the resulting effect on medical benefits paid for employees; increasing costs of insurance, changes in coverage terms and the ability to obtain insurance; homeland security, acts of war or terrorism; natural disasters and other natural risks, such as earthquake, flood, drought, lightning, wind and fire; adoption of or changes in critical accounting policies or estimates; and new accounting or Securities and Exchange Commission requirements, or new interpretation or application of existing requirements. Any such forward-looking statements should be 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 the Quarterly 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 and Exchange Commission. 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.

SOURCE IDACORP, Inc.

http://www.idacorpinc.com

Keen added, "We acknowledge the complexities associated with this filing, and we appreciate the IPUC's diligence and thoughtful consideration in reaching a conclusion in the best interest of Idaho Power customers, owners and the State of Idaho."

The need for a baseload resource has been identified since Idaho Power's 2004 Integrated Resource Plan (IRP). The company's collaborative integrated resource planning process identified an expanded need for a flexible, dispatchable resource. The resource planning process includes involvement by and input from government, customer, and environmental organizational stakeholders and remains the best forum for the company to responsibly plan for our energy future, balancing costs, reliability, environmental and other impacts.

IDACORP, Inc., 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 approximately 2,100 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 .

SOURCE IDACORP, Inc.

http://www.idacorpinc.com