IDACORP Plans to Wind Down Power Marketing
IDACORP Inc. (Boise, ID) announced plans to wind down its power marketing business and reaffirmed its commitment to maintain a strong investment credit rating. The company's energy marketing subsidiary, IDACORP Energy, will not seek new customers and will limit its maximum value at risk limits to less than $3.0 million. In addition to minimizing its risk tolerance, IDACORP Energy anticipates staff reductions of approximately 50 percent over the next 18 months, and has targeted a reduction of working capital requirements to less than $100.0 million.
"IDACORP Energy is committed to fulfilling its obligations under existing agreements," said President and CEO Jan Packwood. "In keeping with our decision to wind down this portion of our business, IDACORP Energy will limit transactions to those necessary to meet obligations with existing customers and ensure the orderly settlement of the existing book of business. IDACORP is committed to maintaining its credit quality and, consequently, we need to take steps to reduce the company's overall risk profile."