UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 7, 2007
Exact name of registrants as specified in IRS Employer
Commission their charters, address of principal executive Identification
File Number offices and registrants' telephone number Number
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1-14465 IDACORP, Inc. 82-0505802
1-3198 Idaho Power Company 82-0130980
1221 W. Idaho Street
Boise, ID 83702-5627
(208) 388-2200
State or Other Jurisdiction of Incorporation: Idaho
None
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Former name or former address, if changed since last report.
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2.):
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
IDACORP, Inc.
Idaho Power Company
Form 8-K
ITEM 8.01 OTHER EVENTS
Idaho Water Management Issues
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As discussed in IDACORP, Inc.'s ("IDACORP") and Idaho Power Company's ("IPC")
Annual Report on Form 10-K for the year ended December 31, 2006, Quarterly
Report on Form 10-Q for the quarter ended March 31, 2007 and other reports filed
with the Securities and Exchange Commission, below normal precipitation and
stream flows have exacerbated a developing water shortage in the State of Idaho.
IPC is engaged in the Snake River Basin Adjudication (the "SRBA"), a general
stream adjudication commenced in 1987, to define the nature and extent of water
rights in the Snake River Basin in Idaho, including the water rights of IPC. The
initiation of the SRBA resulted from the Swan Falls Agreement, an agreement
entered into by IPC and the Governor and Attorney General of Idaho in October
1984 to resolve litigation relating to IPC's water rights at its Swan Falls
project. IPC has filed claims to its water rights for hydropower and other uses
in the SRBA. Other water users in the basin have also filed claims to water
rights. Parties to the SRBA may file objections to water right claims that
adversely affect or injure their claimed water rights and the SRBA court then
adjudicates the claims and objections and enters a decree defining a party's
water rights. IPC has filed claims for all of its hydropower water rights in the
SRBA, is actively protecting those water rights, and is objecting to claims that
may potentially injure or affect those water rights. One such claim involves a
notice of claim of ownership filed on December 22, 2006 by the State of Idaho
for a portion of the water rights held by IPC that are subject to the Swan Falls
Agreement.
The Swan Falls Agreement established minimum stream flows in the Snake River and
provided that IPC is entitled to an unsubordinated right to such minimum stream
flows but that IPC's right to flows above this minimum would be subordinate to
new upstream uses, upon approval of such uses by the State, unless the upstream
use violated the Swan Falls daily minimum flows. The minimum flows may be
violated as a result of drought or other natural conditions, or as a result of
depletions under water rights in the basin to which IPC has subordinated.
In 1984, the parties to the Swan Falls Agreement assumed that there was some
water in the Snake River Basin in excess of the Swan Falls daily minimum flows
that was available for new upstream uses. However, IPC now believes that at the
time the Swan Falls Agreement was signed, the Snake River Basin was
overappropriated and there was no excess water.
On May 10, 2007, in order to protect its claims and the availability of water
for power generation at its facilities, IPC filed a complaint and petition for
declaratory and injunctive relief regarding the status and nature of IPC's water
rights and the respective rights and responsibilities of the parties under the
Swan Falls Agreement. The complaint was filed in the Idaho District Court for
the Fifth Judicial District against the State of Idaho, the Governor, the
Attorney General, the Idaho Department of Water Resources (the "IDWR") and the
Director of the IDWR. The defendants have not yet responded to this complaint.
IPC alleged in the complaint, among other things, that there was not in 1984,
and there is not currently, unappropriated water in the Snake River Basin above
the minimum flows to which
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IPC is entitled; that because of this overappropriation, the Swan Falls
Agreement should be reformed; that the State's December 22, 2006 claims of
ownership to water rights should be denied; and that IPC's water rights should
not be subordinated to aquifer recharge.
IPC is unable to predict the outcome of this proceeding.
Memorandum of Understanding with PacifiCorp
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On May 7, 2007, Idaho Power Company and PacifiCorp entered into a Memorandum of
Understanding under which the companies will pursue possible development of new
500-kV transmission lines from western Wyoming across southern Idaho. It is
expected that portions of the project under consideration would be completed
between 2012 and 2014.
A copy of the press release dated May 18, 2007 is filed as Exhibit 99 hereto.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits
Number Description
99 Press Release dated May 18, 2007
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrants have duly caused this report to be signed on their behalf by the
undersigned hereunto duly authorized.
Dated: May 18, 2007
IDACORP, Inc.
By: /s/ Darrel T. Anderson
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Darrel T. Anderson
Senior Vice President -
Administrative Services and
Chief Financial Officer
Idaho Power Company
By: /s/ Darrel T. Anderson
----------------------
Darrel T. Anderson
Senior Vice President -
Administrative Services and
Chief Financial Officer
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INDEX TO EXHIBITS
Number Description
99 Press Release dated May 18, 2007
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