Idacorp Inc (IDA) 2003 Q4 法說會逐字稿

Good day, everyone, and welcome to the IDACORP fourth quarter 2003 earnings conference call. Today's conference is being recorded. At this time, for opening remarks, I'd like to turn the conference over to the Director of Investor Relations, Mr. Larry Spencer. Please go ahead, sir.

Good afternoon, everyone, and welcome to our fourth quarter earnings release conference call. We issued our earnings release before the market opened today and expect to file our form 10-K with the SEC on March 4th. With me today are Jan Packwood, IDACORP President and Chief Financial Officer, Lamont Keen, Idaho Power President and Chief Operating Officer, Darrel Anderson, IDACORP Vice President, Chief Financial Officer and Treasurer, and other officers who will also be available to help answer your questions during the Q&A period.

Our presentation today may contain forward-looking statements. It is important to note that the corporations future results could differ materially from those discussed. A full discussion of the factors that could cause future results to differ materially can be found in our filings with the Securities and Exchange Commission.

Now I'd like to turn the presentation to Mr. Jan Packwood to recap the 2003 and discuss the opportunities and challenges that lie ahead.

Thanks, Larry. Afternoon, everybody. As Larry said, we released earnings this morning announcing 2003 earnings of $1.22 a share and that was 10 cents per share for the fourth quarter. The performance for the year, marked the decline from the $1.63, posted in 2002, a year who's earnings were bolstered significantly by a tax method change. The recently quarterly result was an 18 cent per share improvement over fourth quarter of a year earlier. We knew going into 2003, it would be a challenging year. It was. We accomplished much of what we set out to do and we're glad to have it behind us. We're positioned to improve in 2004.

Let me quickly revisit some of the major events and issues that shaped our 2003 performance because an understanding of them is important to forming a perspective about what this year holds. Idaho Power continued to contend with abnormal weather and precipitation patterns. Our revenues and our expenses were both affected as unseasonable temperatures lowered revenues during the heating season and low river flows decreased the power supply cost.

We took a hard look at our non-utility businesses and made some tough decisions that resulted in some short-term pain, but left us better positioned for the long term. The wind down of IDACORP Energy moved another step closer to completion with our fourth quarter decision to accept a lump sum payment of a ten-year receivable from the Overton Power District. We received $45 million in cash, requiring a write-off of an additional $1.1 million, which we considered a reasonable discount to remove any uncertainty of collection.

Through the course of the year, we've been involved in number of legal and regulatory proceedings connected to the industry upheaval of 2000-2001. We've resolved a number of these matters to our satisfaction during the course of the year.

As we previously discussed, our intentions are to make no new investments in Ida-West Energy. Following a diligent review of prospects for that business we concluded, in the fourth quarter, that we would wind it down as well. The fourth quarter includes an $8.6 million impairment charge relating to the remaining site costs of the Garnet Energy Project, as well as other investments and joint ventures.

Perhaps the toughest decision of the year was made in September when the dividend on common shares was reduced by 35%. That difficult, but necessary action strengthened our balance sheet and our ability to fund a major three-year capital expenditure program estimated over $640 million dollars. Tough decisions, challenging conditions, and a lot of hard legal and regulatory work, marked our year. As I said earlier, we're glad to have 2003 behind us. That sense of accomplishment contributes to our guarded optimism that better times are ahead in 2004.

We are embarked on a strategy that we call electricity plus. It is a back to basic strategy that emphasizes Idaho Power as our core business. We continue to experience strong growth in our service area and we recognize that we must make substantial investments in infrastructure to ensure an adequate supply of electricity and reliable service. That entails prudently managing a whole host of issues that Lamont will discuss in a little more detail, later. The plus is our recognition that through modest investments in IdaTech and IDACOMM, we can preserve the potential for additional growth and shareholder value.

[inaudible]a couple of comments about each of those businesses. IdaTech has made good progress in the development and deployment of fuel cell solutions around the world. They've been bolstered by the receipt of important government contracts and developing partnerships, such as the one with RWE, announced earlier today. We are better positioned to ensure steady progress towards key developmental milestones and at a manageable level of investment by IDACORP.

IDACOMM is the business of providing high-speed, last mile, connections to the Internet through private fiber networks and emerging point of use technologies. That company consolidated its foot print in 2003, serving fewer markets, while expanding the suite of products and services it offers in them. We have market trials under way in Boise to test the viability of providing internet service over power line(s). We expect 2004 to be a watershed year in determining the future of broadband over power line technology.

With that, I'll let Lamont cover our primary business in more detail in his report on Idaho Power.

Thank you Jan, and good afternoon to all of you on the call. Our financial performance for the quarter and year are well-covered in the earnings release and will be further reviewed by Darrel Anderson, so my remarks will be limited to operating and other issues impacting Idaho Power Company. And from an operating perspective, the system performed well during the fourth quarter and for the year given the obvious impacts of another year of below normal stream flows, compounded by increased wholesale energy prices compared to last year.

Looking forward, the snow pack level for the Snake River basin was slightly above average at start of February. However, it will take accumulations well above average to provide normal spring runoff levels, primarily because upstream reservoirs have been depleted by years of drought and are only at 33% of capacity or 50% of average for this time of year. Further, a number of average or better water years will be required to fully restore in stream flows. We didn't get here in one year and full recovery will require multiple years as well.

With all this considered, the Northwest River Forecast Center is projecting inflows into Brownlee Reservoir during the runoff period to be about 68% of the historic average. Another major variable and, therefore, focus of considerable effort, is our general rate case filing before the Idaho Public Utility Commission. We included the time line of events in the earnings release, with the next important date a couple of weeks out when the staff and intervening groups file their direct case.

We will have the opportunity to review their comments and file rebuttal testimony on march 19th, ten days before the formal hearings are scheduled. And I really can't provide much of any other update at this time, except to say that we have a full slate of intervening groups and can expect divergent opinions with regard to our request. So do not be surprised when you hear there are some. That is simply how the process works and the Commission will make a determination following the formal hearings, and after reviewing post-hearing briefs filed by the parties. Also, at the IPUC the Commission approved our application for a Certificate of Public Convenience and Necessity for construction of the 160 megawatt Bennett Mountain natural gas-fired power plant to be built near Mountain Home Idaho.

In other regulatory related proceedings, the Company presented oral arguments before the Idaho Supreme Court, in December, on our request to collect $12 million in lost revenues that resulted from the 2001 irrigation load reduction program during the western energy crisis. As you recall, the IPUC denied our request to recover this money in 2002, and we appealed to the Idaho Supreme Court. The $12 million represents non energy, fixed costs, related to providing service to customers who took part in the program. There is no time frame in which the Supreme Court is required to issue its ruling, but we anticipate a ruling in the first half of the year.

And, also in December, the Federal Energy Regulatory Commission accepted our application to relicense the Hell's Canyon hydro-electric complex, which application we filed last summer. FERC will soon issue official responses to our filing, and to the comments of other agencies and interested parties. This will determine what additional information or studies, if any, we will be asked to provide before FERC proceeds with its environmental analysis. We are very proud of our employees who spent years preparing our application. because it is unusual for FERC to accept the initial filing of an application as complex as this one.

And meanwhile, under a licensing front, we are cautiously optimistic that 2004 will include the issuance of licenses for several of our mid-state projects.

And, with that, I will now turn it over to Darrel Anderson for a financial overview. Thanks Lamont, and good afternoon, everyone. I will start with a brief summary of our earnings per share contribution from each subsidiary.

Idaho Power's fourth quarter earnings, per share, were 38 cents and $1.44 for the year. As pointed out in the earnings release, issued earlier today, the results reflect the ongoing impact of increased power supply costs, impacts of unfavorable weather conditions, and increases in operating expenses; including pension, depreciation, wheeling, and maintenance expenses.

IDACORP Energy recorded a loss of 6 cents per share for the quarter and annual loss of 25 cents per share. These results reflect the settlement of various labor disputes, the sale of the forward contracts, continued expenses incurred as part of the wind down of the business.

IDACORP Financial contributed 7 cents per share to the fourth quarter and 27 cents per year -- per share for the year and another solid year for IDACORP Financial.

IdaTech reported a 2 cents per share loss for the quarter and a 4 cents per share loss on the year. Contract settlements helped improve IdaTech's performance, this year, over last year's 22 cent per share loss.

The combined operations of IDACOMM and Velocitus report a net loss of 2 cents per share for the fourth quarter and a 5 cent per share loss for 2003, an increase over last year's 1 cent per share loss.

an Ida-West Energy recorded a fourth quarter loss of 15 cents per share and annual net loss of 13 cents per share. This includes an $8.6 million impairment write down of various project assets, including the remaining project development costs associated with the Garnet site.

The balance of the earnings per share are attributable to the holding company, which amounted to a ten cent per share loss on the quarter and 2 cent per share loss for the year, compared to a loss for the year of 8 cents per share in 2002. The majority of the loss, recorded in the fourth quarter, is related to the impact of inter-period tax allocation amounts from earlier quarters during the year. For purposes of reporting earnings per share by subsidiary, each subsidiary's stand alone effective tax rate for the quarter, and for the year, has been used.

A couple of notes regarding income taxes. As we reported this morning, in the fourth quarter, IDACORP settled substantially all issues related to the IRS's examination of our Federal income tax returns for the years 1998-2000. The settlement resulted in the the benefit of $6 million or 16 cents per share at Idaho Power for the quarter as the deficiencies assessed were less than what we had previously accrued. For the year, the Idaho Power tax provision includes a total $8.9 million or 23 cents per share for settlements of all prior year returns, to date.

The Company's effective tax rate, as reported, is impacted by the settlements noted above, by recognition of affordable housing tax credits earned by IDACORP Financial, and the level of pretax earnings. We expect the effective tax rate for 2004 to be in the 20% range, assuming an increase in pre-tax earnings, and a similar level of affordable housing tax credits.

I will now turn a discussion on cash flow. Net cash provided by operating activities at IDACORP for 2003 was $311 million, a decrease from the $348 million reported for 2002. Operating cash flow in 2003, was positively impacted by the sale [to the forward book] of business at IDACORP Energy and the collection of the Overton receivable in December. These increases were offset by the timing of tax payments and reduced retail rates from the annual power cost adjustment.

At Idaho Power company, net operating cash was $105 million, a decrease from the $366 million reported for 2002, but in line with our previous estimate. The decline from 2002, was a result of reduced retail rates from the annual PCA, the timing of tax payments, and changes in other working capital accounts. Our consolidated capital program came in less than 2002, due to reduced investments at IDACORP Financial despite increased capital [and the needs of] Idaho Power company.

Total capital spending in Idaho Power company was $146 million in 2003, compared to $128 million in 2002. Our capital expenditures for Idaho Power over the 2004-2006 period are expected to be $643 million, down from the $675 million that we previously estimated. The change is due to our continued evaluation of the amount and timing of investment needs required for our relicensing program.

Of the total estimated capital requirements over the next three years, approximately 10% will be spent on general plants, 50% on transmission distribution, and the balance for power supply including relicensing and mitigation. Capital expenditures at the utility are expected to be $207 million in 2004, $219 million in 2005, and $217 million in 2006. The Company's ability to generate adequate ping cash flow to fund the capital requirements will be dependent on weather hydro-electric generating conditions and the results of our general rate case filings.

Turning to a short discussion on debt and liquidity. During the 2003, the Company was successful on reducing total debt over $50 million compared to 2002. At December 31, IDACORP had approximately $94 million in commercial paper outstanding and Idaho Power had none. The current balance of outstanding commercial paper at IDACORP today is approximately $48 million and Idaho Power company has, approximately, $2 million outstanding and $9 million invested in short-term instruments. The decline in the balance at IDACORP from the end of 2003 to today, is due to the receipt of $45 million from Overton Power District, on December 29th, that has been used to pay down short term borrowings as they matured subsequent to year-end.

During the fourth quarter, IDACORP infused $40 million of capital into Idaho Power company to support the capital structure at the utility company. IDACORP currently has a $315 million credit facility comprised of a $175 million, 364 day facility, that expires in March of this year, and a $140 million dollar, three year facility, which expires in 2005. Idaho Power company has a $200 million, 364 day facility, that will also expire in March this this year. We expect to renew the credit facilities before they expire. It is expected that the Company will seek a reduction in the size of the overall IDACORP facility and will seek multi year facilities at both Idaho Power and IDACORP.

On the financialing front, the Company expects to refinance $50 million of 8% first mortgage bonds that come due on March 15. We will assess the need for additional equities to support our increased capital program throughout the year, but at this time, we do not anticipate issuing new equity until 2005. We will continue to evaluate opportunities to strengthen our balance sheet throughout 2004, with an emphasis of reducing borrowings at the holding company.

Looking to 2004, we are reaffirming our earnings guidance in range of $1.60 to $2.22. Consolidated earnings will be dependent on the performance at Idaho Power company. Idaho Power's results will be dependent on various factor, including weather, water, the outcome of regulatory proceedings, and our capital spending program. Given the uncertainty and potential variations in some of these factors, the earnings guidance for 2004 remains purposely broad. As the water year progresses, and Idaho Power company completes its general rate case in Idaho, this guidance will be updated.

With that, that concludes our formal comments and would now like to respond to your questions

Thank you the question and answer will be conducted electronically. If you do wish to signal for a question, you may do so by pressing the star key followed by the digit 1 on your touchtone phone. Once again, that is star 1 on your touchtone phone to signal for questions. We will come to you in the order that you signal and we'll take as many questions as time permits. In you are using a speaker phone, please make sure that your mute function is disengaged to allow your signal to reach our equipment. Once again, that is star 1 on your touchtone phone to signal for questions. And we'll take the first question from Paul Ridzon, McDonald Investments.

Good afternoon, I was just wondering how we should think about Capex at IDACORP Financial over the next few years? Should we just think that Capex is gonna be mostly focused on the utility?

Paul, this is Darrel. It's fair to say that the significant portion of our capital spending program will be focused on the utility. Our investments into IDACORP Financial will be directly based on our continued tax appetite and the level of credit that we can continue to utilize. So, it is fair to say that and we don't expect significant new investments into IDACORP Financial as we go forward, but we'll continue to monitor as we go forward.

Should we be thinking that, absent new investment, that the earnings out of IDACORP Financial are sustainable or is there any sort of roll off effect?

IDACORP Financial does need to have continued investment as it goes forward, but for at least as we see on the next few years, that -- we don't see a significant drop off in their earnings contribution without new investment.

And do you have any sense of segment break up of the $1.60 to $2.20 guidance.

Paul, we're not gonna provide that today. We will provide that as the year progresses. As some of the uncertainties, that we talked about earlier kind of flush themselves out we will update the guidance.

Okay. Thank you very much.

Thanks, Paul

and our next question will come from David [Dickens], Deephaven Capital.

Good afternoon, gentlemen.

Hi, David.

A couple of questions. Given what we've heard about the snows out west and snow pack numbers which is, until last week, what I was -- had been tracking, was kind of surprised to see the very low inflow forecast for Brownlee. Certainly an uptick from last year, but, again, over 30% below normal. Is it safe to say that if the current forecast proved to be in the the ballpark, then we're not getting toward the high end of your range, absent some kind of fabulous outcome on the rate case?

David, this is Darrel. Let me -- we have factored in the estimates of the water forecast based on -- we use the River Forecast Center as a guide, but we also do our own internal estimates that is we don't provide publicly, but we do because the PCA is based on the River Forecast Center and that's what -- that's why that's publicly provided. It's probably -- our guidance is based on -- has taken into account the -- both the issues with respect to the rate case, but also as it relates to the inflows as we have disclosed them. So, we're within the range, I guess is the best thing I can tell you whether it's high end or low end.

Okay, but I mean, you establish the range and admittedly a broad range, really, before the Forecast Center -- before the snow season started. So, I mean, it's fair to say that when you built -- when you set that range up, you initially set it up taking into account the likely extremes, off of normal, but I'm assuming you were assuming something close to normal precipitation for the year --

Water.

-- or normal water for the year when you started started that fore -- when you initially put that forecast out, is that correct?

We make -- we do make an estimate, internally, based on water with respect to our forecast and it's probably fair to say that we're still comfortable with the range that the River Forecast has provided, based on using those numbers as part of our range of earnings estimates.

At what point through the -- as we get through the winter, does your confidence in the -- I realize it's still -- we're still only in the 5th inning of the ball game. There's still a fair amount of winter left and a good opportunity for significant snowfalls from here. I mean, , is it the late March, early April, time frame when we start, kind of, feeling like that forecast is firmed up?

We will. David, we would expect to update you on the water situation in our next call.

No, no, I know. I'm just trying to get sense of -- it's obviously obvious that by May we're not expecting any more snow.

We will -- the water year, basically, for us, for our estimation purposes ends on March 31.

Okay okay. That --

And so, from that standpoint that's when -- kind of when we're done estimating the water. Although, it always happens like last year, we had a late spring precip program that helped us tremendously. So, it really is very difficult to tell, as it sits today, as to what the impact of water is going to be because we still have 40% of the period left under that, as we see it, when we measure that against the calendar. So, there's still a a lot that still can happen and, as Lamont indicated, we are [certainly] currently, today, from a snow pack perspective, above average. And there's a lot of factors, the weather conditions, how it comes off, the timing in which it comes off, where it snows, all those things are contributing factors to determining what is the estimated inflows as to Brownlee.

All right. Thank you much.

Hey, David, this is Lamont Keen. I might be able to clarify a little bit, too. Not the earnings impact, but the operating. If you think back to the call for the third quarter, we indicated then that a normal snow pack did not get us normal stream flows.

Okay.

And that's because of the cumulative impact of the drought and the fact that the reservoirs are below normal, which is what I updated here. And so, we knew from the outset that it would take much above normal snow pack in order to get back to fully normal water conditions.

Okay.

And we'll take our next question from James Bellessa, D. A. Davidson & Company.

Good afternoon.

Hi, Jim.

I think I heard that the utility expended for capital budgeting, $146 million in 2003. What was the total company capital expenditure?

One second, Jim. If you take a look at our cash flow for 2000-- , as as what we briefed in the press release you see the total investment activities $154 million and, so that -- if you take that number and contrast it to the numbers that we shared with you, this -- just this afternoon, that kind of -- you can't tell where the rest of the capital of spending was. But, also included in the $154 million, though,-- that also includes some of our AFUDC and other things that are in there. So the actual cash expenditures are what we discussed. The $140 -- $146 million.

Now, you didn't want to give segment information, so much, but I would suspect that your assumption is that utility will be profitable and that the IDACORP Financial will be profitable. Would the rest of the segments be a drag, break even, or add for the year, likely?

Jim, we want -- we're not gonna go down that path today. We're gonna -- I mean, I think -- all of your statements [regarding] IDACORP Financial and Idaho Power, we believe, are good. But we're not gonna go down the path of trying to break the $1.6 to and $2.20 out between regulated and non regulated today.

Thank you very much.

Thanks, Jim

and our next question comes from Leo Harmon with Fiduciary Management.

Hi, good afternoon.

Good afternoon.

I'm relatively new to the story, so I apologize if these questions have been asked and answered. First of all, could you talk about the rate case coming up as it -- is it a return on capital case or is this -- is there price caps included in this rate case going forward?

[I] make sure I understand the question. This is Lamont. Is it return on capital or other price caps, is that what you said?

Right, or is the regulator gonna institute price caps on your business going forward and have you all operate under price caps once the rate case is in place, or are you -- are you submitting that you can do that going forward?

That's not included in our filing.

Okay.

And this is a case that is an accumulation of things, increases in rate base, operating expenses, power supply costs. We've not had a general rate case for an extended period. So, it's kind of a compilation of everything that has changed between -- really current rates are based on a 1993 test year and this case is based on 2003 test year.

Okay. Second question, could you talk about the net increase or decrease in the regulatory asset related to the PCA over 2003?

Yeah, just one second. [I'll] get that data for you. For 2003, let me just just, kind of walk you through some of the components that are in the 2003 PCA expense line. We have current amortization of our prior year balances of about $117 million. We have current power supply deferrals of $44 million dollars and those are the two primary components.

Okay.

But, you've got $117 million of expense offset by new deferrals of $44 million.

Okay. And, then, thirdly, and maybe this is a little bit forward-looking, as you all normalize net income, certainly above levels of 2003, is there a point where you would begin to reexamine your dividend policy, or at what point will you begin to reexamine your dividend policy?

We certainly look at the dividend policy every board meeting in which it's time to declare a dividend. And, so it gets quarterly attention.

Okay. Thank you very much.

Sure.

Thank you

[Andria Feinstein], Millennium Partners.

Hi, guys. Just a couple of quick questions for you. You mentioned the possibility of '05 equity. If you're successful in your rate case, if you achieve what you believe to be a reasonable outcome there, would the cash flow from ops under that scenario take care of the Capex end dividend, or even in that case, would you think you might need '05 equity?

Andria, this is Darrel. Our main focus with respect to issuing the proposal -- potential for [inaudible] equity in 2005 is really based on maintaining our capital structure. I mean, if, given the fact that we are embarking on a significant capital program, part of the equation is -- in this build-out phase that we may require some level of equity contribution in order to sustain that capital program, in order to keep our capital structure where we think it needs to be for credit purposes.

Where do you think it needs to be for credit purposes? What's that target?

We're targeting -- we'd like to try to get a 50/50 cap structure, from a standpoint of 50% debt, somewhere in the 45%+ or more on the equity side, and the balance coming out of preferred.

And where were you at year-end?

We were just slightly -- we were just a little bit north of the 50% on the debt side. We're about 52, 53%.

Great. And, just a quick follow-up on -- the 68%, expectation on Brownlee for '04, can you just remind me what the actual was for '03?

As a percent, it was about -- this is Lamont, about 57% for '03.

Okay that's what I needed. Thank you.

and we'll go now to John Hanson with Imperium Capital.

Good afternoon.

Good afternoon.

Lamont, I think you were talking about the ramp up to the rate case here, and the different interveners that you had, and all of the folks along those lines. Can you talk a little bit about how the preliminary ramp-up to the rate case is going in terms of news and different kind of -- and the different kind of constituencies that you have and are you -- have you been doing some kind of work to -- to -- to kind of work those in advance and kind of get a feel for what the different constituencies want?

The way the process works, and I will [Rick Gayle] here with us today, too, so he can fill in any blanks that I miss here. But, we really don't have much, if any, feel at this point on what positions the parties are gonna to take. The way the process works is, we file our case, they review it, they get an extended period to submit interrogatories to us, request for information. That's been an active process over the last several months. And, then, they file their cases, as I mentioned, on February 20. So, that's really gonna be the first time the door really opens for us as to what their positions are. And there is not a lot of contact that goes on between the Company and the parties, with regard to the positions they'll stake in the proceeding prior to that date.

Has there been any kind of -- you had public meetings. Could you give us a bit of a feel for how those turned out? Were they well attended or were they, kind of, a non event?

We'll have [Rick Gayle] handle that one.

The Commission staff conducted public meetings across the state of Idaho and the only purpose for this set of public meetings was to explain the regulatory process to the public and to present the Company's case at first blush. And they were attended by about a dozen-15 folks, at each meeting. I think there were four meetings.

Good. May be, hopefully, fairly quiet on that front. We'll wish you good luck on the rate case, then.

Thank you.

Once again, as a reminder to the audience, that is star 1 on your touchtone phone to signal for questions and we'll go to [Rick Shobin with Ducane Capital].

Good afternoon, everyone.

Hi, Rick.

I have just a really quick clarification question. I'm sorry if I missed this before. With the regards to the RFP and the plan for acquiring resources going forward, I believe you said you were looking at the build option. Is that correct?

We're actually doing what you consider a build and transfer, Rick. This is Darrel, by the way. We're doing what you consider a build and transfer, where a third party will build it for us and upon completion we will transfer it back to Idaho Power.

It's a turn key contract? And who's responsible for the -- if there's any sort of cost over runs or anything like that? Is that the utility's responsibility for payment or is that the responsibility of the builder?

This is [Rick Gayle]. What we've received from the Commission, thus far, is a Certificate of Public Convenience and Necessity. And the order, right now, is a typical order that we might get for a project like this. And what it does is, it specifies as we did in the application, a commitment estimate. And if dollars go past the commitment estimate, that will be on the Company. Dollars up to the commitment estimate, I think, if deemed prudent, should be recoverable.

And so, in this rate case, will they be addressing the cost that they -- that you guys will be incurring for building the plant? Will they be giving a return on the actual build of the plant or is that something that you have to file subsequently?

No. This is Rick, again. The way that the regulatory process works in Idaho, that plant needs to be up and running before we can file for rate recovery for that particular plant. So it will not be included in the current case.

Okay. And, just in terms of -- the amount of capacity that you'll be building, how does this meet your -- your requirements in terms of load? I mean, will you be long and how long will you be? And, then, do you anticipate building or buying or purchasing anymore capacity go -- into the future?

This is Lamont, again. This plan is a -- primarily a peaking facility to help us cover peak loads, in the summer, and for periods of time in the winter. And what it does -- it really is coming online just in time to meet perceived system peak load deficits under certain water conditions, by the summer of 2005. So it really doesn't make us excess, with the exception of it is a peaking plant that's available, should we have needs to use it at other times during the year due to unit outages or those kind of things. We will be filing this year, our 2004 integrated resource plan, which, every two years we file those. They give us -- or they provide a ten-year look at the Company's anticipated loads and resource options to meet it. That's a very public process. It's just under way and I think the expectation would be be, coming ut of that, it would have some additional resource requirements over the next ten years.

Okay, thank you very much.

Thanks, Rick

And we do have a follow-up question from David Dickens.

Hi. Actually, my question was just answered about whether or not the Bennett plant was part of the general rate case.

Thanks, David.

And, gentlemen, we have no further questions standing by. I'd like to turn the conference back to you for any additional or closing comments.

Okay. Well, this is Larry, again. And I would like to thank everyone for their interest in IDACORP and fourth quarter earnings release and we'll give you further updates as our situation progresses.

Thank you for your participation in today's conference. You may disconnect at this time.