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BOISE, Idaho, Nov. 6, 2002 -- IDACORP Inc. will terminate efforts to pursue a midstream natural gas development business and will exit its natural gas trading operations by the end of the first quarter of 2003.
At the time of its second quarter earnings announcement, IDACORP officials informed the investment community of the company's intent to explore acquisition of non-regulated natural gas operations, primarily gathering and processing assets. Company subsidiary IDACORP Energy has been evaluating this strategy since that time, but acquired no assets.
"Although it has been only a few months since we announced that we would explore this business opportunity, the continuing turbulence in the economic climate surrounding our industry requires regular re-assessment of strategies," said IDACORP President and Chief Executive Officer Jan B. Packwood. "Our desire to improve our credit quality led us to conclude that now is not the time to undertake a new strategic initiative of this nature."
As result of the announcement, IDACORP Energy's Denver office, which was established to explore midstream opportunities, will be closed by year-end and will affect five employees. Additionally, the company will wind down its natural gas trading operations based in Houston, Texas, because the operation's long-term growth value was linked to a broadening of the company's natural gas platform beyond commodity trading.
The action will impact six employees and is scheduled to be complete by March 2003. Also, as the company continues to wind down its electricity trading operations, additional workforce reductions will be implemented at IDACORP Energy's operations in Boise by mid-2003.
Boise, Idaho-based IDACORP, formed in 1998, is a holding company comprised of: Idaho Power, a regulated electric utility; Ida-West Energy, an independent power project management and development arm; IDACORP Energy, a marketer of energy and energy-related products and services; IDACORP Financial, an investment vehicle which makes investments primarily in affordable housing projects; IdaTech, a developer and producer of fully integrated fuel cell systems; and IDACOMM, a telecommunications subsidiary providing high-speed Internet access technologies.
More information is available on the company's web site, www.idacorpinc.com.
Source: IDACORP, Inc.
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