IDAHO POWER CO
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<p class=MsoNormal align=right style='text-align:right'>Exhibit 10(h)(vii)</p>





<p class=MsoNormal align=center style='text-align:center'><b>IDACORP, INC.</b></p>

<p class=MsoNormal align=center style='text-align:center'><b>NON-EMPLOYEE DIRECTORS STOCK COMPENSATION PLAN</b></p>







<p class=MsoNormal style='margin-left:0in;text-indent:0in'>I.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Purpose</p>



<p class=MsoNormal style='text-indent:27.0pt'>The
purpose of the IDACORP, Inc. Non-Employee Directors Stock Compensation Plan is
to provide ownership of the Company's stock to non-employee members of the
Board of Directors and to strengthen the commonality of interest between
directors and shareholders.</p>



<p class=MsoNormal style='margin-left:0in;text-indent:0in'>II.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Definitions</p>
<p class=MsoNormal style='margin-left:0in;text-indent:0in'>&nbsp;&nbsp;&nbsp; When
used herein, the following terms shall have the respective meanings set forth
below:</p>



<p class=MsoNormal style='margin-left:13.5pt'><u>&quot;Annual
Retainer&quot;</u> means the annual
retainer payable by the Company to Non-Employee Directors and shall include,
for purposes of this Plan, meeting fees, cash retainers and any other cash
compensation payable to Non-Employee Directors by the Company for services as a
Director.</p>



<p class=MsoNormal style='margin-left:13.5pt'><u>&quot;Annual
Meeting of Shareholders&quot;</u> means
the annual meeting of shareholders of the Company at which directors of the
Company are elected.</p>



<p class=MsoNormal style='margin-left:13.5pt'><u>&quot;Board&quot;</u> or <u>&quot;Board of Directors&quot;</u> means the
Board of Directors of the Company.</p>



<p class=MsoNormal style='margin-left:13.5pt'>&quot;<u>Committee</u>&quot;
means a committee whose members meet the requirements of Section IV(A) hereof,
and who are appointed from time to time by the Board to administer the Plan.</p>



<p class=MsoNormal style='margin-left:13.5pt'><u>&quot;Common
Stock&quot;</u> means the common stock,
without par value, of the Company.</p>



<p class=MsoNormal style='margin-left:13.5pt'><u>&quot;Company&quot;</u> means IDACORP, Inc., an Idaho corporation, and any successor
corporation.</p>



<p class=MsoNormal style='margin-left:13.5pt'><u>&quot;Effective
Date&quot;</u> means May 17, 1999.</p>



<p class=MsoNormal style='margin-left:13.5pt'><u>&quot;Employee</u>&quot; means any officer or other common law employee
of the Company or of any Subsidiary.</p>



<p class=MsoNormal style='margin-left:13.5pt'><u>&quot;Exchange
Act&quot;</u> means the Securities
Exchange Act of 1934, as amended.</p>







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&nbsp;<p class=MsoNormal style='margin-left:13.5pt'><u>&quot;Non-Employee
Director&quot;</u> or <u>&quot;Participant&quot;</u>
means any person who is elected or appointed to the Board of Directors of the
Company and who is not an Employee.</p>



<p class=MsoNormal style='margin-left:13.5pt'><u>&quot;Plan&quot;</u> means the Company's Non-Employee Directors Stock
Compensation Plan, adopted by the Board on May 5, 1999, as it may be amended
from time to time.</p>

<p class=MsoNormal style='margin-left:13.5pt'><u>&quot;Plan
Year&quot;</u> means the period
commencing on January 1 and ending the next following December 31.</p>



<p class=MsoNormal style='margin-left:13.5pt'><u>&quot;Stock
Payment&quot;</u> means that portion of
the Annual Retainer to be paid to Non-Employee Directors in shares of Common
Stock rather than cash for services rendered as a director of the Company, as
provided in Section V hereof.</p>



<p class=MsoNormal style='margin-left:13.5pt'><u>&quot;Subsidiary&quot;</u> means any corporation that is a &quot;subsidiary
corporation&quot; of the Company, as that term is defined in Section 424(f) of
the Internal Revenue Code of 1986, as amended.</p>



<p class=MsoNormal style='margin-left:0in;text-indent:0in'>III.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Shares of Common Stock Subject
to the Plan</u></p>



<p class=MsoNormal style='text-indent:27.0pt'>Subject
to Section VI below, the maximum aggregate number of shares of Common Stock
that may be delivered under the Plan is 100,000 shares.&nbsp; The Common Stock to be
delivered under the Plan will be made available from treasury stock or shares
of Common Stock purchased on the open market.</p>



<p class=MsoNormal style='margin-left:0in;text-indent:0in'>IV.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Administration</u></p>



<p class=MsoNormal style='margin-left:.5in;text-indent:-.5in'>A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Plan will be administered by a
committee appointed by the Board, consisting of two or more persons.&nbsp; Members
of the Committee need not be members of the Board.&nbsp; The Company shall pay all
costs of administration of the Plan.</p>



<p class=MsoNormal style='margin-left:.5in;text-indent:-.5in'>B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subject to and not inconsistent
with the express provisions of the Plan, the Committee has and may exercise
such powers and authority of the Board as may be necessary or appropriate for
the Committee to carry out its functions under the Plan.&nbsp; Without limiting the
generality of the foregoing, the Committee shall have full power and authority
(i) to determine all questions of fact that may arise under the Plan, (ii) to
interpret the Plan and to make all other determinations necessary or advisable
for the administration of the Plan and (iii) to prescribe, amend and rescind
rules and regulations relating to the Plan, including, without limitation, any
rules which the Committee determines are necessary or appropriate to ensure
that the Company and the Plan will be able to comply with all applicable
provisions of any federal, state or local law.&nbsp; All interpretations,
determinations and actions by the Committee will be final and binding upon all
persons, including the Company and the Participants.</p>



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&nbsp;<p class=MsoNormal style='margin-left:0in;text-indent:0in'>V.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Determination of Annual
Retainer and Stock Payments</u></p>



<p class=MsoNormal style='margin-left:.5in;text-indent:-.5in'>A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board shall determine the
Annual Retainer payable to all Non-Employee Directors of the Company.</p>



<p class=MsoNormal style='margin-left:.5in;text-indent:-.5in'>B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each director who is a Non-Employee
Director on March 1 shall receive as a portion of the Annual Retainer, payable
to such director on March 1, or on the first business day thereafter, a Stock
Payment of $40,000 in value of Common Stock.&nbsp; The number of shares granted
shall be determined based on (i) for treasury stock, the closing price of the
Common Stock on the consolidated transaction reporting system on the business
day immediately preceding the date of payment, and (ii) for open market
purchases, the actual price paid to purchase the shares.&nbsp; Non-Employee
Directors who are elected to the Board after March 1 of the Plan Year shall
receive a prorated Stock Payment on the first business day of the month
following the effective date of their election to the Board, but in no event
later than March 15 of the year following the year in which they are elected to
the Board.&nbsp; The Stock Payment will be prorated by multiplying $40,000 by a
fraction, the numerator of which equals the number of months (with a partial
month counted as a full month) remaining in the Plan Year and the denominator
of which is twelve.&nbsp; An entry in the Participant's direct registration account
evidencing record ownership of the shares of Common Stock constituting the
Stock Payment shall be made and a direct registration statement with respect to
such uncertificated shares shall be issued to each Participant, unless the
Participant specifically requests a stock certificate, in which case, a
certificate evidencing the shares of Common Stock constituting the Stock
Payment shall be registered in the name of the Participant and issued to each
Participant.&nbsp; The cash portion of the Annual Retainer shall be paid to
Non-Employee Directors at such times and in such manner as may be determined by
the Board of Directors.</p>



<p class=MsoNormal style='margin-left:.5in;text-indent:-.5in'>C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Non-Employee Directors on April
1, 2007 and Thereafter</u></p>



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&nbsp;<p class=MsoNormal style='margin-left:.5in'>A
Non-Employee Director initially elected to the Board effective on or after
April 1, 2007 shall receive a prorated Stock Payment if the Board is aware on
March 1 of the Plan Year that the Non-Employee Director will not continue to
serve on the Board for the entire Plan Year.&nbsp; Such Non-Employee Directors shall
receive their prorated Stock Payment on March 1 of the Plan Year, or on the
first business day thereafter.&nbsp; The prorated Stock Payment shall be calculated
by multiplying $40,000 by a fraction, the numerator of which is the number of
actual or expected months (with a partial month counted as a full month) of
service on the Board during the Plan Year and the denominator of which is
twelve. If the Board is not aware on March 1 of the Plan Year that a
Non-Employee Director initially elected to the Board effective on or after
April 1, 2007 will not serve on the Board for the entire Plan Year, such
Non-Employee Director shall receive a full Stock Payment and shall not be
required to forfeit or otherwise return any shares of Common Stock issued as a
Stock Payment pursuant to the Plan notwithstanding any change in status of such
Non-Employee Director which renders him ineligible to continue as a Participant
in the Plan.</p>



<p class=MsoNormal style='margin-left:.5in;text-indent:-.5in'>D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Non-Employee Directors Prior to
April 1, 2007</u></p>



<p class=MsoNormal style='margin-left:.5in'>A
Non-Employee Director initially elected to the Board effective prior to April
1, 2007 will not receive a prorated Stock Payment as set forth in the
immediately preceding Section V(C), but rather will receive a full Stock
Payment on March 1 of the Plan Year notwithstanding the fact that the Board may
be aware that the Non-Employee Director will not continue to serve on the Board
for the entire Plan Year.&nbsp; No Non-Employee Director who was a member of the
Board effective prior to April 1, 2007 shall be required to forfeit or
otherwise return any shares of Common Stock issued as a Stock Payment pursuant
to the Plan notwithstanding any change in status of such Non-Employee Director
which renders him ineligible to continue as a Participant in the Plan.&nbsp; </p>



<p class=MsoNormal style='margin-left:0in;text-indent:0in'>VI.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Adjustments in Authorized
Shares and Awards</u></p>



<p class=MsoNormal style='text-indent:27.0pt'>In
the event of any equity restructuring (within the meaning of Financial
Accounting Standards No. 123R), such as a stock dividend, stock split, spinoff,
rights offering or recapitalization through a large, nonrecurring cash
dividend, the Committee shall cause an equitable adjustment to be made in the
number and kind of shares of Common Stock that may be delivered under the Plan
to prevent dilution or enlargement of rights. In the event of any other change
in corporate capitalization, such as a merger, consolidation or liquidation,
the Committee may, in its sole discretion, cause an equitable adjustment as
described in the foregoing sentence to be made, to prevent dilution or
enlargement of rights. &nbsp;Adjustments made by the Committee pursuant to this
Section VI shall be final, binding and conclusive.</p>



<p class=MsoNormal style='margin-left:0in;text-indent:0in'>VII.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Amendment and Termination of
Plan</u></p>

<p class=MsoNormal style='text-indent:27.0pt'>The
Board will have the power, in its discretion, to amend, suspend or terminate
the Plan at any time.</p>



<p class=MsoNormal style='margin-left:0in;text-indent:0in'>VIII.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Effective Date and Duration of
the Plan</u></p>



<p class=MsoNormal style='text-indent:27.0pt'>The
Plan will become effective upon the Effective Date and shall remain in effect,
subject to the right of the Board of Directors to terminate the Plan at any
time pursuant to Section VIII, until all shares subject to the Plan have been
purchased or acquired according to the Plan's provisions.</p>



<p class=MsoNormal style='margin-left:0in;text-indent:0in'>IX.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Miscellaneous Provisions</u></p>



<p class=MsoNormal style='margin-left:13.5pt;text-indent:0in'>A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Continuation of Directors in Same
Status</p>



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&nbsp;<p class=MsoNormal style='text-indent:27.0pt'>Nothing
in the Plan or any action taken pursuant to the Plan shall be construed as
creating or constituting evidence of any agreement or understanding, express or
implied, that the Company will retain a Non-Employee Director as a director or
in any other capacity for any period of time or at a particular retainer or
other rate of compensation, as conferring upon any Participant any legal or
other right to continue as a director or in any other capacity, or as limiting,
interfering with or otherwise affecting the right of the Company to terminate a
Participant in his capacity as a director or otherwise at any time for any
reason, with or without cause, and without regard to the effect that such
termination might have upon him as a Participant under the Plan.</p>



<p class=MsoNormal style='margin-left:13.5pt;text-indent:0in'>B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Compliance with Government
Regulations</p>



<p class=MsoNormal style='text-indent:27.0pt'>Neither
the Plan nor the Company shall be obligated to issue any shares of Common Stock
pursuant to the Plan at any time unless and until all applicable requirements
imposed by any federal and state securities and other laws, rules and
regulations, by any regulatory agencies or by any stock exchanges upon which
the Common Stock may be listed have been fully met.&nbsp; As a condition precedent
to any issuance of shares of Common Stock pursuant to the Plan, the Board or
the Committee may require a Participant to take any such action and to make any
such covenants, agreements and representations as the Board or the Committee,
as the case may be, in its discretion deems necessary or advisable to ensure
compliance with such requirements.&nbsp; The Company shall in no event be obligated
to register the shares of Common Stock deliverable under the Plan pursuant to
the Securities Act of 1933, as amended, or to qualify or register such shares
under any securities laws of any state upon their issuance under the Plan or at
any time thereafter, or to take any other action in order to cause the issuance
and delivery of such shares under the Plan or any subsequent offer, sale or
other transfer of such shares to comply with any such law, regulation or
requirement.&nbsp; Participants are responsible for complying with all applicable
federal and state securities and other laws, rules and regulations in
connection with any offer, sale or other transfer of the shares of Common Stock
issued under the Plan or any interest therein including, without limitation,
compliance with the registration requirements of the Securities Act of 1933, as
amended (unless an exemption therefrom is available), or with the provisions of
Rule 144 promulgated thereunder, if applicable, or any successor provisions.&nbsp;
Certificates for shares of Common Stock may be legended as the Committee shall
deem appropriate.</p>



<p class=MsoNormal style='margin-left:13.5pt;text-indent:0in'>C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nontransferability of Rights</p>



<p class=MsoNormal style='text-indent:27.0pt'>No
Participant shall have the right to assign the right to receive any Stock
Payment or any other right or interest under the Plan, contingent or otherwise,
or to cause or permit any encumbrance, pledge or charge of any nature to be
imposed on any such Stock Payment or any such right or interest, prior to the
recording of the shares in the Participant's direct registration account and
the issuance of a direct registration statement with respect to such shares, or
if the Participant requests a stock certificate, prior to the issuance of stock
certificates evidencing such Stock Payment.</p>











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&nbsp;<p class=MsoNormal style='margin-left:13.5pt;text-indent:0in'>D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Severability</p>



<p class=MsoNormal style='text-indent:27.0pt'>In
the event that any provision of the Plan is held invalid, void or
unenforceable, the same shall not affect, in any respect whatsoever, the
validity of any other provision of the Plan.</p>



<p class=MsoNormal style='margin-left:13.5pt;text-indent:0in'>E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Governing Law</p>



<p class=MsoNormal style='text-indent:27.0pt' align="left">To
the extent not preempted by Federal law, the Plan shall be governed by the laws
of the State of Idaho, without regard to the conflict of law provisions of any
state.</p>
<p class=MsoNormal align="left">Dated:&nbsp;&nbsp; September 20, 2007</p>



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