Item 8.01 Other Events.

As previously reported, on September 1, 2009, Idaho Power Company (Idaho Power) received pre-approval from the Idaho Public Utilities Commission (IPUC) to include up to $396.6 million of construction costs in Idaho Power's rate base when the Langley Gulch natural gas-fired power plant achieved commercial operation. On March 2, 2012, Idaho Power filed an application with the IPUC requesting an increase in annual Idaho-jurisdiction base rates of $59.9 million for recovery of and return on Idaho Power's investment in the Langley Gulch power plant. Idaho Power's application stated that its estimated investment in the plant through June 2012 would be approximately $398 million. On May 30, 2012, the IPUC Staff recommended to the IPUC that the $59.9 million increase in annual Idaho-jurisdiction base rates requested by Idaho Power be reduced to $58.1 million. The plant became commercially available on June 29, 2012. On that date, the IPUC issued an order consistent with the IPUC Staff's recommendation, approving a $58.1 million increase in annual Idaho-jurisdiction base rates, with new rates effective July 1, 2012.

In connection with the inclusion of the Langley Gulch power plant in rate base and the associated increase in base rates, the IPUC updated Idaho Power's load-change adjustment rate (LCAR) to $17.64 per MWh, effective July 1, 2012. The LCAR is intended to eliminate recovery of power supply expenses already collected in rates associated with load changes resulting from changing weather conditions, a growing customer base, or changing customer use patterns. The LCAR adjusts power supply cost recovery within the Idaho-jurisdiction power cost adjustment formula upwards or downwards for differences between actual load and the load used in calculating base rates.

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