Summary of IDACORP Q3 2025 Earnings Call

1Key Financial Results and Metrics

Earnings Per Share (EPS): Q3 diluted EPS was $2.26, up from $2.12 in Q3 2024. Year-to-date EPS for the first three quarters rose to $5.13 from $4.82 in the prior year.

Tax Credit Amortization: Idaho Power recorded $2.5 million in tax credit amortization for Q3, consistent with the previous year. Total amortization for the first three quarters was $39 million, compared to $22.5 million in the same period last year.

Net Income: Increased by $10.8 million year-over-year, primarily due to higher retail revenues from a January rate change and customer growth.

Operating Cash Flow: Increased to $464 million, up $6 million from the previous year.

Capital Expenditures (CapEx): Expected to be between $1 billion and $1.1 billion for 2025.

2Strategic Updates and Business Highlights

Customer Growth: Customer base grew by 2.3% year-over-year, with a notable 2.5% increase in residential customers. Significant industrial projects, particularly from Micron, are driving growth.

Transmission Projects: Progress on the Boardman-to-Hemingway transmission line is underway, with several towers completed. Regulatory processes for Gateway West and Swift North transmission lines are ongoing.

New Projects: The Bennett Mountain gas-fired power plant is planned for a 167-megawatt expansion, with construction expected to begin in spring 2026.

Rate Case Settlement: A recent settlement aims to increase annual revenues by $110 million (7.48%) effective January 1, 2026, with a 9.6% return on equity (ROE).

3Forward Guidance and Outlook

Earnings Guidance: Full-year diluted EPS guidance raised to $5.80 to $5.90, reflecting strong operational performance despite a reduction in expected tax credit amortization.

O&M Expenses: Expected to be between $470 million and $480 million due to inflationary pressures and increased wildfire mitigation efforts.

Hydropower Generation: Forecasted to be between 6.5 million and 7.0 million megawatt hours for 2025.

4Bad News, Challenges, or Points of Concern

Wind Project Cancellation: The termination of the Jackalope Wind project, which was planned for 600 megawatts, poses a challenge in meeting future load growth. Alternatives are being explored, but a gap remains until new resources are secured.

Interest Expense: Increased interest expenses due to financing growth and higher costs associated with a new finance lease for an energy storage agreement.

Customer Growth Trends: A slight decline in residential customer growth was noted, raising concerns about potential economic softening and its impact on future growth.

5Notable Q&A Insights

Jackalope Wind Project: The project was a significant part of the capital plan, and its cancellation necessitates finding alternative solutions for capacity. The Bennett project is not sufficient to cover the load growth.

Customer Growth: The slight decrease in growth metrics was attributed to economic factors and seasonal trends, with expectations for substantial growth in manufacturing loads.

Regulatory Support: The company is assessing the timing and elements of its next rate case, with potential tracking mechanisms under consideration.

Equity Needs: The cancellation of the Jackalope project may reduce near-term equity needs due to changes in capital payment timing. Overall, IDACORP reported a strong quarter with positive earnings growth, but faces challenges in meeting future capacity needs and managing rising costs amidst economic uncertainties.