After chopping its power marketing staff in half this summer (see Power Market Today, June 24), Boise-based IDACORP Inc. on Tuesday decided to throw in the towel on natural gas marketing. The company also said it will terminate efforts to pursue a midstream natural gas development business. It will exit natural gas trading operations by the end of the first quarter of 2003, affecting a small Houston staff.

IDACORP said this summer it planned to buy some midstream gas assets, primarily gathering and processing, but the turmoil in the business and continuing credit pressures forced it to reconsider the plan.

“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 CEO 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.”

IDACORP’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, impacting six employees. 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, affecting about 60 employees.

IDACORP, formed in 1998, is a holding company for utility Idaho Power, independent power producer Ida-West Energy, marketing unit IDACORP Energy and financial and telecommunications businesses.

©Copyright 2002 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.