IDA

IDACORP, Inc. and Idaho Power Company - 10-Q Summary (Q3 2025)

Business Context and Reporting Period

This Form 10-Q covers the quarterly period ended September 30, 2025, for IDACORP, Inc. (the holding company) and its principal subsidiary, Idaho Power Company. Idaho Power is a regulated electric utility serving approximately 24,000 square miles in southern Idaho and eastern Oregon. The company operates under the jurisdiction of the Idaho Public Utilities Commission (IPUC), Oregon Public Utility Commission (OPUC), and the Federal Energy Regulatory Commission (FERC).

Key Financial Metrics (Nine Months Ended Sept 30, 2025)

Material Changes vs. Prior Period

• Revenue: Total operating revenues decreased slightly year-over-year for the nine-month period ($1,407.8M vs. $1,428.5M in 2024). This was driven by a decrease in wholesale energy sales revenues due to lower market prices, partially offset by higher retail revenues from rate increases and customer growth.
• Net Income: Net income attributable to IDACORP increased by $28.6 million (11.4%) compared to the same period in 2024. This increase was primarily driven by higher retail revenues per MWh (due to rate increases effective Jan 1, 2025) and customer growth (2.3% over the last 12 months).
• Expenses: Other Operations & Maintenance (O&M) expenses increased by $22.5 million, driven by inflationary pressures on labor, professional services, and increased wildfire mitigation costs. Depreciation and amortization increased by $20.3 million due to plant additions.
• Tax Benefit: Income tax expense decreased significantly due to income tax return adjustments and an increase in additional Accumulated Deferred Investment Tax Credits (ADITC) amortization ($39.0M in 2025 vs. $22.5M in 2024).

Guidance, Outlook, and Management Commentary

• Regulatory Settlement: In October 2025, Idaho Power reached a settlement stipulation for its 2025 Idaho general rate case. If approved, this will authorize a 7.48% increase in annual Idaho-jurisdictional retail revenue (approx. $110 million) effective January 1, 2026. The settlement includes a 9.6% return on equity.
• Dividend Increase: The Board of Directors approved an increase in the quarterly cash dividend from $0.86 to $0.88 per share.
• Capital Projects: Significant progress was made on infrastructure projects, including the commencement of construction on the Boardman-to-Hemingway (B2H) transmission line (expected in-service late 2027) and the operation of a 150 MW leased battery storage facility.
• Project Termination: Due to permitting delays and federal land use policy uncertainty, Idaho Power terminated agreements for the 600 MW Jackalope Wind Project in September 2025, reducing contractual obligations by approximately $2.5 billion. The company is pursuing alternative resources to meet the resulting capacity deficit.
• Outlook: Management expects continued customer growth and load increases, necessitating significant capital investment in generation, transmission, and storage resources through 2029. Capital expenditures are forecasted to range from $1.00-$1.10 billion in 2025 and $1.25-$1.35 billion in 2026.

Investor Verification Checklist

• Rate Case Approval: Verify the final IPUC order approving the 2025 Settlement Stipulation and the effective date of the rate increase (targeted Jan 1, 2026).
• Jackalope Replacement: Monitor the status of alternative resource procurement to replace the terminated 600 MW Jackalope Wind Project capacity.
• Hydropower Relicensing: Track the FERC supplemental Environmental Impact Statement (EIS) timeline for the Hells Canyon Complex (HCC), as costs and timing remain uncertain.
• Wildfire Mitigation Costs: Review the impact of the new Idaho Wildfire Standard of Care Act on future O&M expenses and regulatory deferrals.
• Debt Covenants: Confirm continued compliance with leverage ratios (currently 52% for IDACORP and 54% for Idaho Power) amidst high capital expenditure requirements.