DUFF & PHELPS: IDAHO POWER COMPANY 250,000 SHARES SERIAL PREFERRED STOCK RATED 'A'
CHICAGO, June 23 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `A' (Single-A) to Idaho Power Company's (NYSE: IDA) proposed offering of 250,000 shares of serial preferred stock, without par value ($100 stated value). Proceeds will be used for construction and general corporate purposes. Idaho Power is a low cost energy producer and maintains a conservative capital structure. The service territory is stable. The Power Cost Adjustment Mechanism (PCA) recently approved by the Idaho Public Utilities Commission should provide an element of long-term stability to coverages and earnings. Downward pressure on interest coverages due to water scarcity will be relieved. In recent years, the absence of a PCA and extended drought conditions have somewhat weakened credit protection measures. When fully implemented the PCA will allow Idaho Power to recover 90 percent of power supply cost variations in retail rates. The PCA will be set each May based on federal government river flow forecasts and projected power supply costs. Until the company's next general rate case, the PCA will only be applied to 60 percent of the power cost deviations, with Idaho Power absorbing the 40 percent balance. Idaho Power is expected to file a rate case late in 1993 or early in 1994. Idaho Power is predominantly a hydroelectric utility, serving 80 cities and towns located mainly in the Snake River Valley. Revenues are derived principally from the Idaho jurisdiction, with remainder coming from Oregon and Nevada. -0- 6/23/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/ (IDA)
CO: Idaho Power Company ST: Idaho IN: UTI SU: RTG
TM -- NY077 -- 5217 06/23/93 17:53 EDT
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|Date:||Jun 23, 1993|
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