Idaho Power - 2014 Sustainability Report

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ABOVE THE LINES

USTAINABILITY REPORT

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1 TABLE OF CONTENTS: 2 about this report 3 about us 6 our resource portfolio 7 a letter from our ceo 9 sustainability platform 10 2014 focus areas /progress 20 featured articles • financial stewardship • environmental stewardship • social stewardship 27 community contributions 29 charting our performance 38 sustainability projects 39 2015 focus areas 41 recognition 42 references

Swan Falls Power Plant, constructed in 1901

Idaho Power ~ Our employees hauled nearly a dumpster’s worth of trash out of the Swan Falls recreation areas earlier this week. We do three litter pick-ups per year and work alongside local nonprofit groups. Andrea Simmonsen ~ Thank you! Love running the trails down there.

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ABOUT THIS REPORT Welcome to IDACORP’s 2014 Sustainability Report, our platform for demonstrating how our operations foster strong and enduring financial, environmental and social stewardship. It is also our opportunity to illustrate how our day-to-day operations align with our customers’ needs, our shareholders’ interests and our employees’ well-being. In that vein, this year’s report will show how our company routinely does more than is asked by its various stakeholders, how we endeavor to go beyond expectations and work “above the lines” to ensure the company — and our communities — remain strong. We’ve also included posts from our Facebook page to show how we interact with our stakeholders through social media. Some of the posts directly relate to the content on the page, while others are simply illustrative of our various stakeholder interactions. We hope you enjoy them.

Key Features of This Report Include: • IDACORP’s five-pronged Sustainability Platform • A review of our 2014 Focus Areas and our progress • Featured articles highlighting our company’s strategic, sustainable initiatives • Our Focus Areas for 2015 This report is available in a variety of formats tailored to individual reading preferences. Printed copies are available by request, as is a short brochure which provides highlights from this year’s report. You may request these items via email at [email protected]. The full report also is available online at idahopower.com/sustainability. There, we hope you’ll also review our Supplemental Sustainability Reporting, which provides an in-depth overview of our company’s operations.

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ABOUT US IDACORP, Inc. is a holding company incorporated in 1998. Its principal operating subsidiary is Idaho Power Company, referred to in this report as Idaho Power. Idaho Power is engaged in the generation, transmission, distribution, sale and purchase of electric energy. With 17 low-cost hydroelectric projects at the core of its generation portfolio, Idaho Power is among the nation’s few investor-owned utilities with a significant hydroelectric generating base. IDACORP’s other subsidiaries include IDACORP Financial Services, Inc. (IFS), an investor in affordable housing and other real estate investments, and Ida-West Energy Company (Ida-West), an operator of small hydroelectric generation projects that satisfy the requirements of the Public Utility Regulatory Policies Act of 1978 (PURPA). Given that Idaho Power contributes the majority of IDACORP’s net income, this report will focus on the utility’s activity, performance and results. However, the philosophical approach to business, responsibility and stewardship is consistent across all IDACORP subsidiaries.

Customer Profile Idaho Power, headquartered in Boise, Idaho, and locally operated since 1916, provides reliable, low-cost energy to nearly 516,000 residential, irrigation, commercial, and industrial customers across 24,000 square miles in southern Idaho and eastern Oregon.

2014 General Business Customers Irrigation – 19,826 Commercial/Industrial – 67,643

Residential – 428,294

4 VISION



VALUES



MISSION

VISION

To be regarded as an exceptional, independent, integrated electric utility

VALUES

Integrity, safety and respect

MISSION Prosper by providing reliable, responsible, fair-priced energy services, today and tomorrow

Idaho Power corporate headquarters, Boise, Idaho

Idaho Power ~ A Chefs’ Affaire was a blast (as always) and helped raise a ton of money for our friends at The Idaho Foodbank. See you next year! Dana Lee Quinney ~ Proud that you are our utility company!

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Hells Canyon Dam Royce Nowlin ~ Yesterday I was able to take a first look at the Hells Canyon campgrounds and the dams that are taken care of by Idaho Power. They never fail to amaze me in how they blend and work with nature. Idaho Power ~ We take a lot of pride in our facilities and we always like to hear when people enjoy and appreciate them. Thanks for the nice words!

6 OUR RESOURCE PORTFOLIO With hydroelectric projects at the core of our generation portfolio, water is a key component in Idaho Power’s fuel mix. Year-to-year variability in snow pack and the resulting Snake River flows can significantly affect Idaho Power’s fuel mix and, therefore, the makeup of our resource portfolio may change from year to year. The following chart provides an estimate of the 2014 fuel mix for Idaho Power’s resource portfolio (including purchases) for company-owned resources and on-line PURPA contracts.*

2014 Resource Portfolio Mix Geothermal & Other – 3% Natural Gas – 8%

Wind – 11%

Coal – 35%

Hydroelectric – 43% *Because Idaho Power sells (or does not own) the renewable energy certificates (RECs) or “green tags” associated with certain projects in its resource portfolio, and uses the proceeds to benefit customers, we are not permitted to say that renewable energy from those projects is delivered to customers.

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A LETTER FROM OUR CEO Like any electric utility, our charter is to provide customers with reliable, responsible, fairpriced energy – every day, around the clock. It’s a heady responsibility for any company, but at Idaho Power, we’ve always pledged to do more. Our company was founded in Idaho, headquartered in Idaho and run by Idahoans. That means we’re driven to go further and look for innovative ways to better serve our communities. Let’s start with our core product and service. I’m proud to say that our generation portfolio is among the cleanest in the nation. In an average year, half the energy we generate comes from hydroelectricity – the original renewable. That said, our portfolio is changing, and getting even cleaner. Since 2010, we’ve seen a massive amount of new renewable resources come onto our system. We now have over three times as much wind energy on our system as we did in 2010. During that same time span, geothermal increased by a factor of three. And then there’s solar: We’re currently under contract for 320 megawatts (MW) of new solar development. Should all that come online as expected, we would have nearly 1,260 MW of non-company owned renewables on our system by the end of 2016. Combine that with over 1,700 MW of our existing hydro resources, and we’re positioned to provide or facilitate nearly 3,000 MW of renewable generation. That’s on a system where demand peaks at just over 3,400 MW. It’s a testament to the strength and diversity of our portfolio that we’re able to integrate these resources, and do so reliably. The chart on the following page provides further detail. One resource we haven’t discussed is coal. To the dismay of some, coal remains an

important resource for our company and will be with us for some years to come – some. We’ve said for several years now that Idaho Power is on a “glide path” away from coal. To that point, we’ve facilitated a 24-percent reduction in our coal-fired generation since 2000. This transition may not be fast enough for everyone, but it’s the responsible, practical way to protect the reliability of the grid and fulfill our charter to serve. Part of this glide path includes taking the Boardman, Oregon, coal plant offline in 2020, and with it our 10-percent stake. We’re moving further down the glide path as we continue talks with NV Energy on a retirement date for our jointly owned North Valmy plant in Nevada. For us, the question isn’t if we transition away from coal, but when. Another resource that needs to be discussed is energy efficiency, and our customers have done a remarkable job of leveraging the programs we’ve put in place. Since 2002, the cumulative annual savings of our efficiency programs has grown to over 165 average megawatts (aMW), with more than 100 aMW added between 2010 and 2014. That’s enough energy to power the city of Pocatello, population 54,255. While our good work is its own reward, it’s always a pleasure to see outside recognition. We’re pleased to report that, for the third year running, Idaho Power was named among the 40 “Best Energy Companies” by industry trade magazine Public Utilities Fortnightly. Our company first appeared on the “Fortnightly 40” in 2012 at no. 39, and in just three years we’ve climbed to no. 17. Author Michael Burr called this rise “remarkable,” and credited our company’s “strong, sustainable growth metrics.” Choosing the title for this year’s report – “Above the Lines” – was simple. In brain-

8 storming our theme, we quickly realized that our company is about more than our product, our dams, our transmission towers, and our thousands of miles of power lines. Our reach exceeds our footprint, and this year’s report will show you how. In our featured articles, you’ll learn how a simple turbine upgrade morphed into an opportunity to work with outside agencies to exceed current efficiency levels, extend the unit’s lifespan and provide exceptional value for the company and its customers. We’ll also discuss how a company safety mandate expanded far beyond our facilities’ walls and turned into a highly impactful regional initiative. And we’ll detail a bold plan to help revitalize the Snake River – the lifeblood of our hydroelectric system and for all of southern Idaho. In the end, it’s about people; our employees, our customers and our owners. Our employees donate their volunteer hours to make customers’ lives better. They provide financial contributions to further our customers’ good causes and initiatives. And we award economic development grants to agencies working to help stimulate and grow our local economies. We go above the lines because we know we’re making a difference. My hope is that after reading this report, you’ll feel the same.

Darrel Anderson, President and CEO

Idaho Power Enabled Renewable Generation 400

Average Megawatts 300

200

100

2004

2006

2008

2010

2012

2014

Our generation portfolio, combined with how those resources are operated, has enabled an increasing amount of renewable energy to be connected to the grid. In 2014, our system enabled over 300 average megawatts of renewable generation — nearly 18 percent of our average load. Add in our hydroelectric resources, and the total amount of renewable generation our company generates or enables climbs to nearly 60 percent of our average load. This is done in absence of a state mandated renewable-portfolio standard.

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9 SUSTAINABILITY PLATFORM Our Sustainability Platform is made up of five elements, outlined in the pages that follow. For each of the elements, we’ll provide our 2014 Focus Areas and our progress toward them. For Idaho Power, this platform serves as a natural extension of our vision, values and mission, and sets the tone for sustainable business strategies that create long-term value for our stakeholders.

balanced and responsible management

strong community partnerships

operational excellence

environmental stewardship

engaged, empowered workforce

Idaho Power ~ This online pop-up ad isn’t from us and it’s not legit. Don’t click it and don’t take the survey. They’ll ask for personal info and possibly infect your computer. Will Partridge ~ Dude, thanks for the FYI. Kudos to a utility leveraging social media.

10 2014 FOCUS AREAS/PROGRESS Balanced and Responsible Management: Our stakeholders’ trust is critical to our business success. OBJECTIVE KEY PRINCIPLES

Demonstrate integrity and transparency in the principled and profitable management of our business. disclosure • profitability • relationships communication • accountability transparency

Consistent with existing corporate objectives on Total Shareholder Return (TSR), provide shareholders with a TSR that outperforms IDACORP’s peer group. PROGRESS: achieved for three-year period PROGRESS: achieved for three-year

period ending ending12/31/2014 12/31/2014

• Our corporate objectives target a 55th percentile or better TSR over a three-year period compared to our peer group. For the three-year period beginning Jan. 1 of 2012 and ending Dec. 31, 2014, IDACORP’s annualized TSR ranking (relative to its peer group) was in the 79th percentile. Reduce CO2 emissions intensity for 2010–2015 time period to 10–15 percent below 2005 CO2 emissions intensity. PROGRESS: on track and ongoing PROGRESS: on track and ongoing

• As of December 2014, the average CO2 emissions intensity for Idaho Power’s owned generation resources for the 2010–2014 period was approximately 945 pounds CO2 / MWh, or about 21 percent below the 2005 level.

Continue to enhance our investor outreach and communications to differentiate our performance from utility peers. PROGRESS: on track and ongoing PROGRESS: on track and ongoing

• Our third sustainability report, Progress, was released at the Annual Shareholders Meeting in May 2014. The 2013 stock chart for IDACORP (NYSE:IDA) was prominently featured on the back cover of the report as well as in a condensed brochure version. • Sustainability-related information was included in analyst presentations and during our CEO’s annual address. • In-depth supplemental sustainability information relating to company operations and achievements was updated for 2014 and published to our websites.

11 Operational Excellence: Our customers depend on us to power their lives and businesses reliably and at a fair price. OBJECTIVE

Incorporate ingenuity, innovation and efficiency in our daily operations with exceptional results.

KEY PRINCIPLES

effective investment • efficiency performance • impact • engagement

Remain true to our mission and continue to prosper by providing reliable, responsible, fair-priced energy services today and tomorrow.

Consistent with our existing corporate objective of providing exemplary customer service, continue our efforts to maintain customer satisfaction rankings.

PROGRESS: on track ongoing PROGRESS: on track and and ongoing

PROGRESS: tracking, but not achieved PROGRESS: on track and ongoing

• Hydropower remains our company’s least-cost generation resource. With this in mind, work has progressed on upgrades at two of our hydroelectric plants. Last summer, crews worked on the intake structure at the Shoshone Falls Power Plant to enhance operating efficiency. Additionally, the Lower Malad Power Plant was refurbished and prepped for installation of a new runner. Commissioned in September, the new runner is expected to increase turbine efficiency by approximately 3–5 percent.

• A cross-functional team of senior managers is leading an effort to develop a comprehensive digital strategy for the company. The aim is to enhance our customers’ ability to interact with Idaho Power via existing (and emerging) digital platforms. The effort will investigate changes to our website, a move into mobile devices, refinements to our interactive voice-response unit, and continued efforts in social media.

• The company is consolidating the Continuous Emission Monitoring Systems platform across our three natural gasfired power plants. This will streamline compliance reporting and associated operations. • Both the System Average Interruption Frequency Index (SAIFI) and the System Average Interruption Duration Index (SAIDI) continued to decrease during 2014.

82.00

2014 CRI

%

• Based on the Burke customer survey (which evaluates and measures customer satisfaction), our Customer Relationship Index (CRI) for the fourth quarter rolling 12-month period was 82.00 percent. The company’s target goal is a CRI of 82.50 percent. Investigate methods to enhance the design and performance of utility infrastructure projects, and further differentiate our operational approach. PROGRESS: achieved PROGRESS: achieved

• Envision is a new sustainability rating system for infrastructure projects, including transmission lines and substations. With several substation design projects underway, our Customer Operations Engineering and Construction department planned a first quarter 2015 Envision workshop for Idaho Power employees and others outside our company to understand and promote this collaborative design process.

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The Snake River winds its way through Hells Canyon Idaho Power ~ Our 10th annual Hells Canyon River Cleanup Day is Saturday, 4/26. Wanna volunteer? Be at the Oxbow Schoolhouse at 9 a.m. Pacific Time. We’ll treat you to a BBQ lunch when the day is done. Michael Pope ~ Thank you Idaho Power for all you do for our community!! Good karma always comes back around. Hope to make it this Saturday.

13 Environmental Stewardship: Our business and our customers depend upon natural resources, to be shared and sustained for future generations. OBJECTIVE KEY PRINCIPLES

Reduce our overall environmental footprint and continue our tradition of environmental stewardship. water • conservation • longevity • leadership responsibility • shared resources

Support alternative transportation options to reduce the number of single-occupant vehicle trips. PROGRESS: on track and and ongoing PROGRESS: on track ongoing

• In 2014, Idaho Power purchased and installed a bus-stop/shelter at our Boise Center West campus. Valley Ride Transit now makes scheduled stops at the facility for Idaho Power employees and for commuters from surrounding offices. • In 2014, Idaho Power completed an agreement with Valley Ride Transit which provides company-funded bus passes allowing all Idaho Power employees to use the Treasure Valley bus system. • Idaho Power received a Gold Award at the 2014 Treasure Valley May in Motion Challenge. Over 160 employees participated in some form of alternative transportation going to and from work, including riding a bus, bicycling, or carpooling.

As we address relevant river- and watershed-related environmental issues, advocate for implementing cost-effective, sustainable solutions to preserve the long-term health of the Snake River and Eastern Snake River Plain Aquifer. PROGRESS: on track and and ongoing PROGRESS: on track ongoing

• Our staff presented at a multi-stakeholder meeting in July to discuss threats to the longevity and health of the Eastern Snake River Plain Aquifer. Attendees included the Freshwater Trust, the Nature Conservancy, General Mills and the Henry’s Fork Foundation. • A project was initiated to stop riverbank erosion upstream of the Pahsimeroi Fish Hatchery water intake. Crews used rock to armor the bank for added stability and longevity, while intermittent logs with root wads provided improved fish habitat. The bank was re-vegetated with native grasses and willows, and the area was fenced to prevent future degradation from cattle grazing.

Idaho Power ~ Have a look at our efforts to stop riverbank erosion near Pahsimeroi Fish Hatchery. Rocks now give the bank added stability, while logs with root wads help to improve fish habitat. We also re-vegetated the banks with native plants and grasses, and fenced off the area to prevent degradation from cattle grazing. Jim Miller ~ Well done, Idaho Power!

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Many employees take advantage of the company-funded bus passes Work to sustain current Snake River flows while pursuing cost-effective opportunities to increase flows and maximize hydroelectric generation. PROGRESS: on track and and ongoing PROGRESS: on track ongoing

• During the latest cloud-seeding season (Nov. 1, 2014 – April 30, 2015), Idaho Power continued to target the Payette, Wood, and Upper Snake basins, and expanded operations into the Boise Basin. Expansion efforts included additional ground generators in the Boise, Wood, and Upper Snake basins as well as an additional aircraft for the Boise and Wood basins. In addition to aircraft and ground generators that release icenucleating agents, Idaho Power leverages specialized instruments that tell our scientists when conditions are conducive to cloud seeding. Studies indicate that, on average, the additional snowpack created results in approximately 269,000 additional acre-feet of water in the Payette River and 250,000 additional acre-feet of water in the Upper Snake River, which then flows through our downstream hydroelectric plants. • The Idaho Water Resources Board voted in favor of a resolution supporting cloud seeding, and the allocation of approximately $500,000 over the next five years for expansion in the Boise, Wood and Upper Snake River basins.

Enhance employee awareness and support for conserving resources and promoting efficiency in company facilities and processes. PROGRESS: achieved PROGRESS: achieved

• Prompted by the company’s incubation funding for sustainability projects, a number of projects championed by employees were initiated, including the following:



As a result of several recommended upgrade projects identified in a 2013 assessment of the Boise Operations Center, the Facilities department installed variable frequency drives (VFDs) and upgraded controls to enhance air-handling efficiencies and promote employee comfort.





Employees in the Information Technology department identified several operating enhancements for the company’s data centers. These enhancements (comprising upgrades to the data center cooling equipment and installation of VFDs) restrict fan speeds to reduce overall energy usage.

15 Engaged, Empowered Workforce: Our employees are our greatest asset and sustain our business success. OBJECTIVE KEY PRINCIPLES

Provide a High Performance Culture that respects and empowers employees, encourages engagement, values safety and promotes our company as an employer of choice. safety • performance • well-being development • reward • engagement

Continue to integrate sustainability into our operations by utilizing our Sustainability Team for consulting assistance on process improvement and implementation of sustainable solutions. PROGRESS: on track ongoing PROGRESS: on track and and ongoing

• With guidance from officials at Boise State University, our Environmental department purchased an electric utility vehicle (fourwheeler) for use at our Woodhead Park campground in Hells Canyon. The new vehicle yields fuel savings, has no emissions and, as a benefit to campers, makes very little noise. The vehicle is yet another step toward implementing sustainability in our numerous parks; in 2012, we added recycling services and informational signage at all our Hells Canyon parks and recreational facilities. • We performed lighting assessments at several of our facilities to determine opportunities for enhanced energy efficiency and reduced operating costs. • Work continues at our Langley Gulch Power Plant to increase re-use of process water through treatment and recirculation.

Consistent with our critical success factors and existing corporate objectives, enhance our efforts to maintain an effective and motivated workforce. PROGRESS: on track and and ongoing PROGRESS: on track ongoing

• In the first half of 2014, company leaders led discussions with their employees concerning our four Safety4Life vital behaviors: Focus, Assess, Make the Safe Choice, and Speak Up.

• A formal Lineman Pre-Apprentice Program was implemented in Transmission & Distribution and Regional Operations to prepare future linemen to be more productive and successful in their role.

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Electric utility vehicle at Woodhead Park With safety as one of our corporate values, continually strive to outperform the industry average, and further reduce the frequency and severity of workplace injuries. PROGRESS: on track ongoing PROGRESS: on track and and ongoing

• Idaho Power’s 2014 OSHA recordable accident rate was 1.8. This is 56 percent lower than the national average rate of 4.1 for generation, transmission and distribution electric utilities.

Recognize and report on employee-driven initiatives in the annual Sustainability Report. PROGRESS: achieved PROGRESS: achieved

• Stories on the Zero RPM battery trials in company trucks and the landscape retrofit at our Mountain Home Operations Center were featured in the 2013 Sustainability Report.

• In 2014, we recorded 35 OSHA recordable injuries, 37.5 percent lower than our 2013 total of 56. • In 2014, the company unveiled a robust, multi-channel safety awareness campaign dubbed Safety4Life. In 2015, the company will continue the campaign, and add leader focus on setting clear safety expectations, holding self and others to account, and demonstrating a passion for safety. • To better recognize employees who demonstrate exceptional judgment, courage or bravery, in 2014 we established the President’s Safety Award. Last year two employees received the award, which includes a framed certificate and commemorative coin.

Hydro Maintenance Generation Specialist John Atnip working safely in the Oxbow Mechanical and Electrical Shop

17 Strong Community Partnerships: Our performance is measured not only in economic terms, but in terms of service to our customers and communities. OBJECTIVE KEY PRINCIPLES

practice intentional and responsive community involvement, support and educational outreach. commitment • quality of life • understanding partnership • prosperity

Leverage social media to strengthen community relationships, and promote company initiatives and endeavors. PROGRESS: on track and ongoing PROGRESS: on track and ongoing

• Year five of our Powering Tomorrow campaign began in September 2014. The campaign featured two professionally produced 60-second television commercials highlighting area nonprofits, and offered grants for qualifying organizations throughout our service area. As it has each year, the campaign played out on the company’s Facebook page via a voting campaign. • In 2014, the company leveraged social media to spread the word about planned outages. While only one of a number of avenues we use to warn of planned outages, our social media channels present the information in a highly visible and easily shareable environment, resulting in increased awareness and, we believe, a reduced impact on the affected communities. • Through customer surveys and focus groups, we’ve learned that reliability is the number-one concern among our customers. Throughout 2014, we posted pictures of crews hard at work throughout our service area, and stressed to customers that their efforts serve to enhance the reliability of our grid.

Track community involvement and employee volunteerism in 2013 and 2014, and investigate programs to increase the value of our contributions to our communities. PROGRESS: not not achieved PROGRESS: achieved

• Despite intermittent progress, we have yet to achieve this Focus Area. Efforts continue to track community involvement and employee volunteerism, however, a new approach must be identified and implemented. • We continue to look for ways to increase the value and visibility of contributions to our communities.

Senior Biologist Rick Wilkison gives a lesson in forestry

18 Senior Vice President of Customer Operations Vern Porter and Operations Hydrology Leader Kresta Davis-Butts raise money for public television

Explore methods of enhancing our company’s role in the economic development of the communities we serve. PROGRESS: on track and ongoing PROGRESS: on track and ongoing

• Building on the success of the 2013 program, the company continued to offer its economic-development grant programs. The 2014 programs resulted in 17 marketing and seven professional-development grants awarded to 20 qualified organizations. • Four regional Economic Development Forums brought together Idaho Power representatives, city and county officials, and state and regional partners for brainstorming and discussion sessions.

Investigate the feasibility of creating a Hells Canyon Cultural Center. PROGRESS: on track and ongoing PROGRESS: on track and ongoing

• Our staff investigated the design and construction of a dedicated cultural center, and a list of potential collaborators and funders has been compiled. • Staff also investigated expanding the proposed visitor’s center (a requirement for relicensing the Hells Canyon Complex), rather than build a separate facility. The ideal location was identified as Idaho Power property in Oxbow, Oregon.

• We collaborated with Idaho Department of Commerce and an outside consultant to initiate a site-evaluation pilot program to increase the success of economic development efforts already underway in our service area.

Nicole Griffin ~ I would like to THANK YOU for the generosity you have shown us by giving us a helping hand when we need it the most!!! Our family to all the families at Idaho Power we appreciate your generous donations to your Community Fund program!!!! God bless.

19 Idaho Power Biologist Barry Bean works with Julia Bond of The Freshwater Trust to help improve habitat and streamflow on the Snake River near Walter’s Ferry, Idaho

Idaho Power ~ Happy to report we counted more salmon nests (or redds) in 2013 than at any time since we began tracking them in 1991. Norma Rice Odiaga ~ I saw three of your steelhead/ salmon transport trucks just outside of Boise today. Kudos to you!

20 FEATURED ARTICLES

We define sustainability as “sound and enduring financial, environmental and social stewardship.” Building on this definition, we equate the relationship between business operations and sustainability to a three-legged stool. While each of the legs is equal in length, the financial leg is the key. Our commitment to financial stewardship, which manifests itself as fair prices for customers and a fair return for our shareholders, enables many of our environmental and social stewardship efforts. We hope the following articles will demonstrate our commitment to each of our sustainability “legs,” and our willingness to go “above the lines.”

social stewardship

financial stewardship

environmental stewardship

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FINANCIAL STEWARDSHIP Turbine Upgrade Maximizes Resources Take I-84 an hour and a half southeast of Boise, and you’ll arrive in Hagerman, population 872. Idaho Power employs dozens of workers in and around the city, and supports the community through volunteerism, grants and other donations. It’s the closest city to our Malad Hydroelectric Project, and home to the Hagerman Fossil Beds National Monument, which contains over 200 species of plant and animal fossils. The two powerhouses that make up the Project are named, simply, “Upper” and “Lower.” And after more than 60 years of continued operation, it was time to make a new investment in the Lower powerhouse. The original turbine, installed in the late 1940s, produced an estimated 8 million megawatt hours. “The original manufacturer had it figured out pretty well,” says Rob O’Neil, the Idaho Power engineer tasked with overseeing the turbineupgrade project. “The biggest downside of the original turbine was the material it was made of; mild or cast steel is not the best for hydropower turbines as it’s susceptible to erosion and cavitation.” The old unit also left little room for crews to get inside and perform maintenance, and its greased bushings required a good deal of attention. Over the years, crews worked with the runners – grinding, welding and resurfacing them to keep them in optimal condition. But in 2012 it came time to remove the entire unit and perform some serious maintenance. Decisions had to be made, costs balanced and efficiencies measured – over decades.

“The engineering group looked at the numbers,” O’Neil said, “and the cost to refurbish the existing runner versus a replacement was close to a wash.” However, an entirely new runner brought certain advantages. “We knew in the design alone we’d see a 3–5 percent increase in efficiency, plus the new runners’ all-stainless construction meant better resistance to erosion and cavitation.” Beyond better construction and added efficiency, a new unit could go twice as long between service intervals, and new greaseless bushings brought additional savings through labor and materials. A decision was made and, in early 2013, Idaho Power signed a contract with Voith, a German firm with a facility in York, Pa. Designed and built in the U.S., each unit is a custom job. “These guys are definitely craftsmen.” O’Neil said. “A lot of it’s done with computers, but there are machinists, assemblers, welders — lots of hands-on. The actual construction is still very labor intensive, very much like it was in the ‘40s.” Going with Voith brought another benefit: Over the years, the company had acquired several American manufacturers, including the maker of the original turbine. That gave O’Neil’s team access to updated blueprints. “We were working with copies of scans from the 1940s, and the drawings were somewhat degraded,” he said. “Now we have updated CAD files and PDFs. That will eliminate a lot of travel time. We’ll make fewer trips out to the plant and provide more engineering support from Boise.”

22 In addition to a modern design and materials, the new unit was built to get the most out of existing flows. O’Neil’s team looked back over the past 20 years and determined that flows into the spring-fed plant were less than what they used to be. While the original design factored in flows of 1,200 cubic-feet-per-second (CFS), the new one would be adjusted to 1,150 CFS for even greater efficiency. “This means we’re making the most power from the water we now have,” O’Neil said. “Voith was able to tweak the design to accommodate this.” With a new runner on the way, the Power Supply team looked to the rest of the unit and determined which components could be reused, and those were sent out to be refurbished, sandblasted and re-machined, if necessary. According to O’Neil, this yielded significant cost savings, and local machine shops were utilized whenever possible. Now in place, O’Neil firmly believes the new runner, like its predecessor, will outlive its design life and provide the company and its customers another 60 years of service and potentially 10–12 million megawatt hours of clean, renewable hydropower. Its all-stainless steel construction and greaseless bushings reduce maintenance needs, and the reconstructed head cover and associated mechanical linkage atop the runner means reliability will be of no concern for years to come. “The best part of the whole thing was when we fired it up, let a little water in, and it just started spinning perfectly,” O’Neil said. “We took it all apart and put it back together better than it was when we started. That’s the ultimate payoff.”

Lower Malad Power Plant

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ENVIRONMENTAL STEWARDSHIP

Snake River Stewardship Program Brings New Life to Working River The Snake River begins in western Wyoming, in the Yellowstone Plateau. From there it makes a gentle passage across the flatlands of southern Idaho before rushing through the rugged terrain of Hells Canyon. Finally, nearly 1,100 miles later, it empties into the mouth of the Columbia River near Washington’s Tri-Cities. Along the way it feeds our fields, sustains our burgeoning dairy industry and provides countless forms of recreation. It’s home to hundreds of species of fish and wildlife including salmon, steelhead and the prehistoric white sturgeon. As the backbone of our 17-dam hydroelectric system, the Snake is a “working river” — and it needs a hand. The Snake fuels the crown jewel of our hydroelectric system, the three-dam Hells Canyon Complex. First envisioned in the 1940s, the final dam came online in 1968 and the complex has since provided clean, reliable energy — over 1,160 megawatts — enough to power over 800,000 average Idaho homes. Together with Brownlee Reservoir, the dams allow Idaho Power to scale operations to follow customer demand, and better integrate intermittent resources such as wind and solar. It’s a critical piece of our infrastructure and the company is in the final stages of a lengthy relicensing process. “One of the last steps is to get a water-quality certification from Idaho and Oregon,” says Environmental Affairs Director Chris Randolph, who’s spent much of his 25-year career with the company working on relicensing. “The right thing to do is to mitigate and offset our impacts,” Randolph said, “and the standard we’ve struggled with is temperature. The water below

the Hells Canyon dam is in good shape other than it’s a few degrees warmer than the state standards for two weeks during the fall.” One possible way to address temperature is to simply pump cold water from the bottom of Brownlee and pass it through the dam. While effective in reducing temperature, that approach likely would only create new problems downstream. “As the Snake moves through the state and collects land-use runoff, it deposits the unwanted pollution into Brownlee,” Randolph said. “The things that have settled to the bottom of Brownlee likely ought to stay there. As we looked at the pumped-water approach, we determined it really did nothing for the river.” What Randolph and his team have come up with is much more complex. It’s called the “Snake River Stewardship Program” and, if successful, it will result in better water quality, improved habitat and a healthier river for all stakeholders. “With this solution, everyone benefits — really the entire state of Idaho,” said Randolph. “The people that live along the river, the people that go there to recreate, and all the natural resources that live in and along the river.” In a nutshell, this approach has three main components. It would:

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Enhance and restore the river’s habitat through carefully planned fill and dredging



Enhance the tributaries by adding trees for shade, and performing habitat restoration



Reduce sediment flowing into the river by changes to irrigation methods

24 Biologists pull sediment and aquatic macrophytes from the bottom of the Snake River

“What we’re trying to do here is provide a more holistic, sustainable approach,” says Environmental Supervisor Ralph Myers, one of the main architects behind the program. “With this approach, we can address temperature, create riparian areas, and improve a lot of fish habitat. It really is a way to address a lot of issues in one program.” Currently, portions of the Mid-Snake suffer from shallow, stagnant water, which provides a lot of surface area to collect heat from the sun. Our approach would create a faster-flowing, less-stagnant river, and help to reduce this “thermal loading.” To test this approach, Randolph and his team have looked to Bayha and Wright islands, small islands nestled in the Mid-Snake southwest of the tiny town of Melba. The idea is to bring in fill around Bayha. This would create more land, meaning less surface area of shallow water to heat, and reduced thermal load to the river. Making the islands bigger, coupled with dredging remaining slow-flowing areas means the water would now pass through narrower, faster channels. This prevents excessive weed growth and aids in habitat diversity by moving fine sediment out. Looking to the nearby tributaries, enhancing riparian vegetation would create shade, further reducing thermal load and cooling the water flowing into the Snake. The final component would address the fine sediment entering the river from agricultural operations. “We recognize that we can go in and change the characteristics of the river, but if you’re still contributing a bunch of sediment into the river, you’re just going to fill in

your dredged areas,” said Myers. By creating a program to encourage irrigators to convert from flood irrigation to pressurized sprinkler systems, much of this agricultural runoff could be eliminated. “I don’t think we’ve met anyone yet who thinks improving water quality and habitat is a bad idea,” Myers said. “There’s no question that people recognize the Snake needs help and that this would be a good thing to do.” The team hopes to show their program is viable within the next five years. And while more expensive than the pumped-water method, they also believe that — by taking a holistic view of the river — this is truly the more prudent, longterm solution. “What really excites me is that this is doing something that matters,” said Randolph. “We all signed up at Idaho Power to try and make a difference. If we can do some really good work restoring the Snake, I can certainly feel like I’ve met that objective.”

Mid-Snake River

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SOCIAL STEWARDSHIP ‘Just Drive’ Initiative Combats Distracted Driving At any given moment across the U.S., 660,000 drivers are using their cell phones or other electronic devices. Sadly, that number leads to other, more grim statistics. In 2012, over 3,300 people were killed and another 421,000 injured due to distracted driving. One quarter of teenage drivers say they text once or more every time they get behind the wheel. Another 20 percent of teens and 10 percent of adults say they have extended text conversations while driving. And in the five seconds it takes to send that text, a car going 55 miles per hour will travel the length of a football field. We eat snacks, adjust the stereo, juggle hot coffee and apply makeup, all while balancing a steering wheel. In the age of multitasking, driving is viewed as a chore, and time better spent doing other things. Except at Idaho Power. Safety is one of our company’s core values. At the end of the day, every employee should be able to return home from work in the same condition as they arrived. That’s why on Jan. 15, 2014, we prohibited the use of handheld devices while operating vehicles on company business, except to the extent such devices could be used hands free. This standard applies to any vehicle driven on company business – rental cars and personal vehicles included. “We recognize that for some employees, keeping communication going while mobile is one way we’ve been able to provide exceptional service,” said Idaho Power President and CEO Darrel Anderson. “However, we’re confident our customers don’t want us to risk harming

ourselves or others. They expect safety to be a priority.” To that end, we took our policy a step further. Corporate Communications Leader Lynette Standley conceived a broader campaign that looked outside our company and encouraged all the communities we serve to put down the phone and “Just Drive.” Thousands of window clings were created and given out to employees and customers to hang in their vehicles. An agreement with ValleyRide (which operates the Treasure Valley’s bus service) placed signs across the backs and sides of city buses. “Just Drive” clings were distributed at regional shopping malls and soon began to appear in cars across our service area. And that was just the start. Standley arranged a partnership with KTVB (southwest Idaho’s largest and most-popular TV news station), which adopted a similar hands-free policy. A Facebook campaign encouraged people to take the “Just Drive Pledge,” and commit to driving phone free. The Idaho Transportation Department (ITD) and Idaho State Police (ISP) joined in and promoted the campaign on their socialmedia channels. Finally, “Just Drive Challenge” events were organized in Boise and across the state in Twin Falls that leveraged these strategic partnerships. The events, co-hosted by Idaho Power, KTVB, ITD and the ISP, drew hundreds of children and adults who came to test their skills on the driving simulator, ride tricycles around an obstacle course while wearing special “drunk goggles,” and drive high-performance police cruisers. This last exercise proved to be a powerful, hands-on lesson in distracted driving.

26 Participants first got to ride with the pros – the troopers who train for months on how to operate the super-powered police interceptors. They navigated a course marked out with orange cones and peppered with mannequins representing hapless pedestrians. Participants got to see how the pros did it, then got their chance behind the wheel – with their phones. Predictably, the results weren’t pretty. “Without texting it was actually pretty easy,” said one teenage driver. “But once I had the phone in my hands, I’d say I took out at least half the course and hit two mannequins.” Another young driver was more succinct. “This just proves exactly how hard it is. I mean, it’s a calling card for death.” While hundreds came to the events, the partnership with KTVB helped spread the word to thousands across our service area. The station covered both events with multiple news stories and aired more than 1,000 publicservice announcements asking people to take the pledge. According to Nielsen figures, one

Idaho Power volunteers and an Idaho State Patrolman work a “Just Drive” community event

news segment alone reached over 61,000 viewers in our area. “Idaho Power has numerous ways to get the word out, but together with KTVB we expanded our reach tremendously,” Standley said. “Our service area and KTVB’s viewing area cover most of southern Idaho. Combine ‘Just Drive’ with other respected groups like law enforcement, high schools and transportation, and we’re really starting to see some influence.” The effort continues in 2015 with bigger events, more partners and more awareness. Anderson also has issued a challenge to other companies and CEOs in our area to go hands free and demonstrate a similar commitment to safety. “We’re showing this campaign isn’t just for us, it’s for everyone out on the road,” Anderson said. “This is a way for us to demonstrate our commitment to safety for the communities we serve.”

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COMMUNITY CONTRIBUTIONS

‘Powering Lives’ in the Communities We Serve At Idaho Power, giving back to our communities goes hand in hand with our mission to provide reliable, responsible, fair-priced energy services. For nearly 100 years, we’ve gone above the lines to create healthier, more vibrant communities. Our passion for empowering people starts with leadership and cascades to the employees who live and work in the communities they serve. For more than 45 years, our employees have contributed to charitable organizations, and helped coworkers and neighbors in times of crisis through the Employee Community Funds (ECF). The ECF is governed by employees and funded by donations from current and retired employees. These donations are matched up to $220,000 each year by our parent company, IDACORP. To enhance our local workforce, we fund a variety of programs that support science, technology, engineering, math and literacy. We also promote academic excellence by awarding college scholarships to local students.

Communications Specialist Kevin Winslow (right) discusses helmet safety with kids

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CONTRIBUTED TO: Education • Culture and Arts • Economic Development Crisis Assistance • Environmental Conservation

Our contributions also take the form of non-financial giving, such as donating retired company vehicles to emergency-response organizations. Together, we embrace programs that emphasize safety, health, arts and culture, an educated workforce, a healthy environment and a bright future for all. Through financial contributions and volunteerism, we enrich the lives of our neighbors and make a tangible, impactful difference in our own backyard.

Community Relations Rep. Bryan Wewers hands over the keys to a retired Idaho Power truck to volunteer firefighter Sid Brewer

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Each Christmas, Biologist Sonny Cabbage travels to local schools to sign to children who are deaf or hearing impaired

Joanne Packard-Snow ~ Sonny it’s awesome the service you are giving to these children. Great to learn what you are doing. Merry Christmas everybody, and more power to you. Idaho Power ~ Thank you for the lovely note, Joanne. Have a very merry Christmas!

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CHARTING OUR PERFORMANCE

The following metrics demonstrate our company’s performance and efficiencies, and our commitment to transparency. Additional reporting metrics can be viewed on our website, at idahopower.com. Idaho Power’s generation portfolio includes, among other resources, 17 hydroelectric plants along the Snake River and its tributaries, and partial ownership in three coal-fired plants: • North Valmy, Nev. (50-percent interest) • Jim Bridger, Wyo. (33-percent interest) • Boardman, Ore. (10-percent interest) scheduled to cease coal-fired operations in 2020

The Rapid River, just outside our Rapid River Hatchery near Riggins, Idaho

Idaho Power ~ If you like to fish, your day just got a little better. Fish and Game just released about 150 Chinook salmon into the Boise River, courtesy of our Rapid River Hatchery.

30 Idaho Power Coal-fired Generation 12

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Coal-fired generation is still an important part of our generation fleet, but its use is changing. As more resources are added to the company’s supply-side portfolio (including the Langley Gulch natural gas-fired combined cycle combustion turbine and numerous PURPA renewableenergy contracts), the overall trend is a reduction in coal-fired generation. Overall, coal-fired generation in 2014 was about 25 percent less than in 2000.

Idaho Power Hydro and Coal-fired Generation 12

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While hydro generation (in millions of megawatt hours) varies based on water availability, the company’s coal-fired generation tracks more steadily: Coal can be backed off during good water years and ramped up to meet customer demand during low-water years — illustrating one of the benefits of a combination hydro-thermal generating system, like ours.

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31 Estimated Idaho Power CO2 Emissions Intensity 1,500

CO2 Emissions Intensity – Lb/MWh 1,300 2005 LEVEL 1,100

21% 2010–2014 AVERAGE

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In 2009, Idaho Power set a CO2 emissions intensity reduction goal of 10-15 percent below our 2005 levels. As of December 2014, the average CO2 emissions intensity for company-owned generation resources for the 2010-2014 period was approximately 945 pounds CO2/MWh, or about 21 percent below the 2005 level. Contributing factors include: reductions in coal-fired generation, use of Langley Gulch Power Plant (a natural gas-fired combined cycle plant which produces significantly lower emissions per MWh than coal-fired plants), and efforts to maximize generation from our existing hydroelectric projects.

Gas and Coal Fleet Water Usage 800

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The consumptive use of water at our coal and natural-gas power plants has been relatively stable since 2008, with a variable decline in usage since 2012. This is attributable to greater operating efficiencies and the commissioning of Langley Gulch, a state-of-the-art combined cycle combustion turbine which consumes less water than our coal-fired plants on a per-MWh basis. As generation shifts from coal-fired plants to Langley Gulch, the number of gallons consumed per MWh will continue to decline.

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Idaho Power-approved contractors clear tree limbs from nearby lines

Vegetation Management — Line Miles Cleared 60,000

Cumulative Transmission and Distribution Line Miles Cleared 50,000

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Idaho Power takes a proactive approach to maintaining clearance for our transmission and distribution lines. This benefits the company and its customers by helping reduce outages caused by lines coming into contact with trees and other forms of vegetation. This work, in conjunction with other programs, has helped us achieve the reliability improvements reflected in the reliability charts on the following page.

33 System Average Interruption Frequency Index 4.00

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The System Average Interruption Frequency Index (SAIFI) and the System Average Interruption Duration Index (SAIDI) reflect the frequency and duration of power outages. Both indices show an overall decline, indicating an improvement in system reliability. This can be attributed to maintenance programs focused on replacing or repairing aging or failing assets, installing animal guarding, adding protective devices, and clearing vegetation around power lines.

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Transmission lines flow through Hells Canyon Richard March ~ I want to say a big thank you to the line workers that went out last night in the cold and wind and snow; those fine men and women that worked into the night on Christmas Eve, leaving their families, to bring power back to Mountain Home. Thank you, your sacrifice was not lost on our family. Idaho Power ~ Very nice of you to say, Richard, and much appreciated.

35 Idaho Power-Enabled Cumulative Energy Savings 200

Average Megawatts 175 150 125 100 75 50 25 0

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Since 2002, the cumulative annual savings of our energy-efficiency programs (including estimated losses) has grown to over 165 average megawatts (aMW), with more than 100 aMW added between 2010 and 2014 alone. That amount of energy is enough to power the city of Pocatello, Idaho, population 54,255.

Idaho Power Safety Performance 6

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The Occupational Safety and Health Administration (OSHA) tracks recordable injury rates for employers throughout the U.S. From 2000 through 2012, the OSHA recordable-injury rate for Idaho Power was consistently lower than the Bureau of Labor Statistics (BLS) national average over the same time period.

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Prior to heading out, a line crew gathers for a safety discussion

Idaho Power ~ Today’s high winds (up to 60 MPH in some places) kept our crews very busy. For those of you affected, thanks for your patience. Carrie Heitz ~ Hated the thought of anyone out there working yesterday, thanks for all of your hard work!

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Electric vehicle fleet

Idaho Power ~ Our new Nissan Leaf fleet cars: zero emissions and fueled by 100% Idaho power :)

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SUSTAINABILITY PROJECTS In 2014 – and what’s now an annual tradition at Idaho Power – our employees were asked to submit ideas for projects that promote sound and enduring financial, environmental and social stewardship throughout the company. The following are just two examples of projects that were funded and implemented in 2014:

Electric Vehicles for Treasure Valley Employees Two Nissan Leafs were purchased for use by employees traveling between our Treasure Valley properties. The vehicles yield substantial fuel savings, require little maintenance, divert emissions from the Treasure Valley airshed, and promote EV adoption and awareness. To ensure the vehicles remain properly “fueled,” five charging stations were installed throughout the Boise-area properties.

Data Center HVAC Upgrades Installing dry-cooler fan variable-frequency drives at our company’s data centers will result in substantial energy savings. This measure alone is estimated to yield savings of approximately 240,000 kWh per year. Further, we incorporated computer room “occupancy programming” into the Building Management System at our Boise Campus West facility. This allows one air-conditioning unit to be idled when the system detects the room is unoccupied, bringing an additional annual energy savings of over 33,000 kWh.

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2015 FOCUS AREAS

Balanced and Responsible Management • Consistent with existing corporate objectives on Total Shareholder Return (TSR), provide shareholders with a TSR that outperforms IDACORP’s peer group. • Reduce CO2 emissions intensity for the 2010-2015 time period to 10–15 percent below 2005 CO2 emissions intensity. • Continue to maintain a diverse portfolio of generating resources while working with NV Energy to develop alignment on potential retirement dates for the coal-fired North Valmy plant. • Continue to enhance our investor outreach and communications to differentiate our performance from utility peers.

North Valmy Power Plant, Nevada

Operational Excellence • Remain true to our mission and continue to prosper by providing reliable, responsible, fair-priced energy services today and tomorrow. • Consistent with our existing corporate objective of providing exemplary customer service, continue our efforts to improve customer satisfaction rankings. • Communicate the sustainability benefits of the Boardman to Hemingway transmission project, including integrating renewable resource energy generation and deferring the need for development of additional fossil-fueled generating resources. • In our ongoing business optimization efforts, demonstrate effective programs or initiatives that yield tangible, sustainable results.

Transmission structures rise over southwest Idaho

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Nissan Leaf fleet vehicles

Senior Safety Professional Joe Passalacqua leads a tower-rescue training exercise

Environmental Stewardship

Engaged, Empowered Workforce

• As we address relevant river- and watershed-related environmental issues, advocate for implementing cost-effective, sustainable solutions to preserve the long-term health of the Snake River and Eastern Snake River Plain Aquifer.

• Consistent with our critical success factors and existing corporate objectives, enhance our efforts to maintain an effective and motivated workforce.

• Work to sustain current Snake River flows while pursuing cost-effective opportunities to increase flows and maximize hydroelectric generation. • Enhance employee awareness and support for conserving resources and promoting efficiency in company facilities and processes. • Support sustainable transportation alternatives by committing 5 percent of Idaho Power’s annual fleet budget for purchasing electric vehicles (EVs), and by designing and implementing an EV adoption strategy in our service territory.

• Continually strive to improve our culture and core value of safety by integrating four vital behaviors throughout our organization: Focus, Assess, Make the Safe Choice, and Speak Up. Additionally, we will continue our work to further reduce the frequency and severity of workplace injuries, and outperform industry averages. • Recognize and report on employeedriven initiatives in the annual Sustainability Report.

Strong Community Partnerships • Leverage all available media channels to strengthen community relationships, and promote company initiatives and endeavors. • Explore methods of enhancing our company’s role in the economic development of the communities we serve. • Engage and inform the public in general safety-related issues pertinent to our communities and our region.

41

RECOGNITION For the third year in a row, Idaho Power was ranked among the 40 “Best Energy Companies” in the U.S. Listed under parent company IDACORP, Idaho Power first appeared on the “Fortnightly 40” in 2012, and has moved up the rankings every year since.

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“IDACORP continues a remarkable three-year climb to the 17th position, up from its 39thplace debut in 2012,” said Michael Burr, author of the Fortnightly 40. “Its rise has been fueled by…strong, sustainable growth metrics.”

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2014 ank F4 0 R 1 ny C o mp a 2 p u o r G 3 e The Fortnightly 40 is compiled each year ar ris Q ue s t En t e r p e ic v r 4 by Public Utilities Fortnightly, an industry Public Se 5 trade magazine. The rigorous grading Cleco 6 criteria measures utilities’ long-term E xelon er g y n E 7 in ns performance vs. their ability to adapt, Wisco y g r e n 8 ra E and ranks them according to operating NexRtTE LYlectBrESicT EANNEIERSGY 4 Year NsIGoHTE 4 Year FO erage 9 Av P 4 Year COM rgy 4 Year Average Free Cash efficiency, asset utilization and financial El P a Average Dividend ne 4 Year Flow E t nd Average nk ide Ra Div in ld o Yie 10 Average rp 7.53% Margin Yield 49 Profit C en t e leverage. Rank 4.75% 2014 3.17% rgin y Ma 23 g 4 11 ner 4.39% F40 Rank 4.40% 16.76 % 52 8 MG E E Company 4.95% 3.10% s12t 12.85% 3 e 3 W 3% 6.7 12 le 7% tar es 5.5 % c Qu na 17.72 se Group 60 26 3 ce Enterpri Pin 7.38% 2.90% Public Servi 9.70% 45 11 4 3% 6.3 0% 13 co 3.5 Cle 11.97% 66 9 5 4.56% PPExL 1.98% elon 12.83 % 28 17 ergy 6 0% En 9.1 in ns 7% 4.1 14 Wisco 10.84% 62 gy 39 7 4.62% Energy y 2.62% n EnNetxtEera r a 7.63% 14 p 13 m ic % 8 ctr 23 o -2. Ele 0% 4.7 El Paso 11.64% 15 6 er n C 9 12 th int Energy 9.30% nterpo 5.00% % s ie SoCeu 11.80 10 15 y 2.88% m10pan o 4.89% MGE Energ C 11.33 % 17 s 16 29 m 11 West -5.74% liclea 4.55% Pinna 9.34% 57 Wil 10 12 -28.75% s 2.92% PPL g 12.19 % 61 in 17 23 ld 13 -7.36 % Ho 2.71% Entergy 10.00 % 64 ITC 1 mpany 14 0.17% 2.47% % Southern Co .75 22 y 53 g 20 anieser 18 15 -9.71% ms Co Empn 3.07% 10.40 % 68 6 OGWiITClliaE 16 -7.50 % Holdings 1.05% 15.24% 65 5 4% 17 P y 6.8 18 erg 7% R En E 2.3 OG CO 16.39 % 12 7 DA 18 IID -1.94% 4.84% IDA 13.68 % 35 41 9% 18 0.5 en 7% 20 3.9 Energ en 7.31% 56 19 20 Fuel Gas 10.00 % EnNaetionarl g 3.00% 10.43 % Gas 42 l 43 e % y 21 22 u erg -5. F En 2% “IDACORP continues a remarkable 3.7 TECO 21 6.86% 39 nal 37 21 4.49% t Energy 3.89% NaAlltianio 7.95% 20 16 y 23 e Utilities -6.84% 4.45% Chesapeak Energ 11.08 % 21 three-year climb to the 17th position, 43 s 30 O 24 5.00% tural Ga lta Na 3.71% TEDeC 9.24% 24 27 sources y 25 4.43% g r 4.37% 6% Dominion Re e 9.5 n r 50 we 23 E Po 33 up from its 39th-place debut in 2012… ctric 26 n Elet -0.88 % erican 3.16% 3% s 8.4ie 47 A llAmia 66 tural Gas 27 tilit U -5.03 % 3.37% e 5% Piedmont Na k 3.9 16 a 24 isone 67 27 -2.50 % aEdp Its rise has been fueled by… dated nsolis 4.55% 3.88% 22 ChCoUGe 14 29 G a s % 5.43% l I 4.41% a 55 11. r 27 s 28 source at u 25 30 2.06% rsey ReN w Jea 4.25% strong sustainable growth metrics.” 9.37% s 41 40 DeNeWelt y 31 our ce -32.06 % star Energ 3.78% s 7.39% e 67 R 51 % n 32 .45 r 26 -10 A 0% io e AN in 1.3 6.25% 58 ow2 33 t r ic %P DoSCDTm 0.75% E Energy 2.91% c 22.65 30 le 18 E % 33 y 48 n -6. erg 3% En 27 4.1 CMS 10.63 % 51 s erica 35 4.87% Am 3.16% EQT ral8.15%Ga 3621 u 70 Industries t Nat 8% y 36 rse 4.4 Je 0.48% 27 South on 10.35% 15 dm rn Energy 37 3.73% on 5852 4.68% Pie Northweste 5.12% 18 d38Edis ergy e t 4.53% a 4% Sempra En 6.2 d 29 li o 24 39 S s CoAEn 9.74% 40 Vectren ic 30 Electr es UGEmIurcpiree:DisFortrictnigthtly 40 survey es o ur c R y So e s 31 er New J y g r e 32 r En West a 33 SC A N A y g r 33 ne DT E E y g 35 ner C MS E 3 s rie EQ T Indust y e s r e 3 J er g y S ou t h

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REFERENCES Dividend Payment Dates For IDACORP, Inc. Common Stock: quarterly on or about the 28th of February, and the 30th of May, August, and November. Transfer Agents/Registrar For IDACORP, Inc. Common Stock Wells Fargo Shareowner Services 1110 Centre Pointe Curve, Suite 101 Mendota Heights, MN 55120 1-800-565-7890 Common Stock Information Ticker symbol: IDA Listed: New York Stock Exchange 20 Broad St. New York, NY 10005 Contacts Broker/Analyst Contact: Lawrence F. Spencer Director of Investor Relations 208-388-2664 Fax: 208-388-6916 E-mail: [email protected] Shareowner Contact: Colette Shepard Shareowner Services 1-800-635-5406 Fax: 208-388-6955 E-mail: [email protected] Corporate Headquarters Mailing Address: P.O. Box 70, Boise, ID 83707-0070 Street Address: 1221 W. Idaho St., Boise, ID 83702-5627 Phone: 208-388-2200 Web sites idacorpinc.com idahopower.com

Printed on recycled paper. Printed with vegetable-based inks. © 2015 Idaho Power

SEC Form 10-K and Annual Report The IDACORP, Inc. and Idaho Power combined Annual Report on Form 10-K for 2014 has been filed with the Securities and Exchange Commission. The Annual Report on Form 10-K and the 2014 Annual Report to Shareholders also are available on our website at idacorpinc.com. The Annual Report on Form 10-K and 2014 Annual Report to Shareholders contain detailed descriptions of our business and financial performance. Internal Data Assurance IDACORP does not utilize a third party to provide assurance for this report. Instead, we rely on internal resources to ensure the report’s content and accuracy. Our review includes an analysis of specific statistics and metrics included in the 2014 Sustainability Report and, where applicable, the 2014 Annual Report on Form 10-K. The Form 10-K contains reports from Deloitte & Touche LLP (IDACORP’s independent auditors) regarding IDACORP’s consolidated financial statements and internal controls over financial reporting. Note About Forward-looking Statements in This Report This report contains “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Forwardlooking statements are all statements other than statements of historical fact, including, without limitation, those that are identified by the use of the words “anticipates,” “expects,” “believes,” or similar expressions. Forwardlooking statements should be read with the cautionary statements included in IDACORP’s Form 10-K for the year ended Dec. 31, 2014, including in Part 1, Item 1A – “Risk Factors” in that report, and in other reports filed by IDACORP and Idaho Power Company with the Securities and Exchange Commission.

USTAINABILITY REPORT

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