Welcome to IDACORP's Second Quarter 2016 Conference Call. Today's call is being recorded and webcast live. A complete replay will be available from the end of the day for a period of 12 months on the company's website at www.idacorpinc.com. [Operator Instructions] At this time, I would like to turn the call over to Mr. Justin Forsberg, Director of Investor Relations. Please go ahead, sir.

Thanks, Kelly. We issued our earnings release and Form 10-Q before the markets opened today. Both are now posted to the IDACORP website. The slides we’ll be using to supplement today's call are also on our website. We'll refer to these slides as we present today's update. As shown on Slide 2, on today's call we have Darrel Anderson, President and Chief Executive Officer; and Steve Keen, Senior Vice President, Chief Financial Officer and Treasurer along with other individuals available to help answer your questions during the Q&A period. As noted on Slide 3, our presentation today will include forward-looking statements. While these forward-looking statements represent our current judgment or opinion of what the future holds, these statements are subject to risks and uncertainties that may cause actual results to differ materially from forward-looking statements made today. So, we caution you against placing undue reliance on any forward-looking statements. The forward-looking statements listed on Slide 3 are described in more detail in our filings with the Securities and Exchange Commission, which we encourage you to review. On Slide 4, we present our quarterly financial results. IDACORP's second quarter 2016 earnings per diluted share were $1.12, a decrease of $0.19 per share from last year's second quarter. For the first six months of 2016, earnings per diluted share were $1.63, $0.15 less than the same period in 2015. I will turn the presentation over to Steve to discuss the results in greater detail and to review our 2016 key operating metrics.

Thank you, Justin and I want to take just a moment and thank the long time voice that opened these calls, Larry Spencer, who is here with us today and who will be with us for a few more months. But Justin has now taken over as our lead introduction for this call and I just want to acknowledge and welcome him to this process and thank Larry for his many, many years that he took care of us. And with that, we had a good second quarter that exceeded our expectations, thanks in part to favorable weather during the last few days of June. Above normal temperatures in the last week of June drove irrigation and air conditioning loads higher than expected, but the second quarter financial results was still less than the prior year. As a reminder last year the company recorded the highest second quarter energy sales on record as an early start to the irrigation season combined with the June heat wave in our service area to dramatically benefit sales in 2015. Looking ahead our forward estimates includes only normal weather expectations. On Slide 5, you'll see a reconciliation of the change of net income from second quarter 2015 to second quarter 2016. Overall net income was $9.9 million less than in the same period last year. Customer growth in our service area increased operating income by $2.7 million in the second quarter. However, decreased usage per customer lowered operating income by $9 million compared with the second quarter of 2015. The application of the Idaho fixed cost adjustment mechanism, or FCA, decreased revenue by $5.9 million in the second quarter and needs more explanation. Last year the Idaho Public Utilities Commission modified the FCA mechanism to use actual sales rather weather normalized sales. According to…

Thanks Steve and good afternoon. As you have already heard and read this quarter’s results are fairly straightforward. We have continued to focus on Idaho Power’s core business are providing reliable, responsible fair price energy services. We continue to see customer growth in the second quarter. Based on this and recognition of our service area in several publications and reports such as the one shown on Slide 8, we continue our optimism of our customer and economic growth prospects. We are seeing companies enter into and expand in various locations throughout the service area. One recent example is Great Western Malting which is the oldest melting company in the Western United States. Located in Eastern Idaho, Great Western broke ground on a $75 million expansion to its existing malting plant last summer and is expected to be completed in 2017. Economic development officials in Pocatello, say this expansion will have more than a $300 million economic impact on the region. The organic nutrition company, [Nutrition Company] opened its 275,000 square foot bakery in Twin Falls in late May this year. Another production line at the plant is already in the works to go online in 2017. As we have highlighted previously, Southern Idaho has secured a record setting seven major agricultural related projects since 2012. According to a recent report by the Southern Idaho Economic Development Organization these project have generated 5,000 new direct and indirect jobs with a combined investment of over $770 million. It is not just the agricultural sector that is driving growth. Recently two California-based manufacturing companies elected to relocate two our service area bringing with them over 100 new jobs. For the 12 months ended June 30, 2016, Idaho Power’s growth rate -- customer growth rate was 1.8%. Employment statistics remain strong. Preliminary data from…

Thank you. Ladies and gentlemen, we're ready to begin the question-and-answer session. [Operator Instructions] Our first question comes from the line of Brian Russo with Ladenburg Thalmann. Your line is open.

Hi. Good afternoon.

Hi Brian.

Hi Brian.

Hey, I am trying to get an understanding of under what scenario would you consider filing a rate case in Idaho since you have a fairly unique rate structure, which has worked well for you guys the last few years?

Brian, this is Darrel. One of the things that we will continue to look at is balancing the -- how well we continue to manage our spend on the own insight. How we continue to see customer growth that continues to come along as we mentioned and I talked fair amount about, is we're seeing a fair amount of growth. And so basically balancing those items to determine whether or not when we learned the forecast whether it's deemed necessary that we need to go in and ask for a change in price. So we'll continue to look at that. We'll look at our level of capital spend also and so it's a lot of those factors that we will consider in trying to determine when that is. And as I noted, right now we're looking really into 2017 as at least the more likely period that we might consider filing, but remember our process takes seven months to happen. So it takes a little while to make anything happen. So we wanted something to go in as early as 2018 where we would have to file something by June 1 of 2017. And so you just think about that timeframe, but right now, we're just continuing to evaluate and look at where our numbers line up.

Got it. And do you have any idea of the scrubber-related dynamic expense and depreciation expense might be?

Brian. I don’t think we have a number that we publish on those, but it's clear that, that’s one of the items that Darrel mentioned that we have to manage through is that as we close more plant, we do pick up depreciation and so the challenge for us is that, the combination of what we get through the growth new sales and what we're able to manage just overall from the standpoint, those add up to offsetting the known cost increases because there are some that come.

Got it. And the company is starting to discuss pension expense in light of lower interest rates, any comment from you guys?

I guess the one thing I would add is I think we’re like many have thought eventually interest rates take some of that issue away and if you had asked me a week ago, I would have said gee, I think it’s straight back staying low for a long time and says what they said there so ago and who knows. But certainly there is an element of it that if interest rates raise even modestly, I am talking 100 basis points you see a lot of the problem change. From our standpoint, we have a mechanism in place where we fund basically by cash, we're collecting some dollars from both Idaho and Oregon, but we don’t have the income statement impact as much as we need to manage the cash impact. And so I think for us it's maybe less of an issue, but we certainly have our eye on being able to earn adequate returns to match up with the growing obligation of the pension plan. Certainly last year wasn’t a huge return year, but if you go back, I think over the last five years, we still are fairly close to the average earnings that have to have in order to match up. So it isn’t all doom and gloom it certainly have had a marginal return last year or two, but we’ll keep an eye on that. And we're putting money annually. If you notice our discussions on that, we actually don’t have our minimum refunding requirement would be zero, but we are funding beyond that partially to offset these kind of things and stay ahead of the game.

Got it. Thank you.

Thanks Brian.

Thank you. Our next question comes from the line of Paul Ridzon with Keybanc. Your line is open.

Hi, Paul

Hi, how are you?

Good Paul.

You said that weather was harder than normal, what was the impact of the FCA on the quarter?

So the FCA was 1.5 -- in my script if you listen to that when it comes back quarter-to-quarter SGA actually helped us slightly because remember its focused on certain parts of the equation and not all parts. So most of our lift I would say was irrigation related and irrigation doesn’t get moderated helped or moderated by the FCA. For the full month, I think our other revenues were actually down slightly. I think we did a $1.5 million benefits. So not a lot of impact truthfully, I would say the others were pretty close to normal.

When you bring -- put your FCR into service will that go into rates, or do you have to do that through GRC?

We have to go through our GRC on that Paul.

Okay. That’s all my questions. Thank you.

Thank you, Paul.

Thanks Paul.

Thank you. [Operator Instructions] That concludes the question-and-answer session for today. Mr. Anderson, I'll turn the conference back to you.

Thank you, Kelly, and thanks all of you for participating in our call this afternoon. We appreciate your continued interest in our company and hope you have a great rest of the day. Thank you.

That concludes today's conference. Thank you for your participation.