IDACORP Q1 Earnings Call Highlights

Key Points

• IDACORP reported Q1 diluted EPS of $1.21 (up from $1.10) and reaffirmed full‑year 2026 guidance of $6.25–$6.45 per share, assuming normal weather/power costs and less than $30 million of additional tax‑credit amortization under Idaho’s Earnings Support Mechanism.
• Customer counts rose 2.3% year‑over‑year (residential +2.4%) and industrial energy sales increased 5.7%, driven by ramping load from large customers like Micron and Meta and an “incredible” pipeline of large‑load projects stretching into the 2030s with contracts structured so “growth pays for growth.”
• The company is executing major transmission and resource additions — multiple lines expected by 2028, a 167 MW gas plant (in‑service summer 2028) plus additional gas projects in 2029–2030, 250 MW of battery storage and 125 MW of solar — with 2026 capex of $1.3–$1.5 billion and targeted financing needs of about $2 billion equity and $2.9 billion debt.

IDACORP NYSE: IDA reported first-quarter 2026 diluted earnings of $1.21 per share, up from $1.10 in the prior-year quarter, as the utility benefited from rate increases and customer growth even as unusually mild weather weighed on usage in key classes.

Amy Shaw, vice president of finance, compliance, and risk, said the company is reaffirming full-year 2026 earnings guidance of $6.25 to $6.45 per diluted share. The outlook assumes historically normal weather and normal power supply expenses for the remainder of the year, and includes an expectation that Idaho Power will use less than $30 million of additional tax credit amortization under the Idaho Earnings Support Mechanism to support earnings.

Customer and load growth highlighted by large industrial ramp

President and CEO Lisa Grow said customer counts rose 2.3% year over year, including 2.4% growth in residential customers, while industrial energy sales increased 5.7%. Grow said the company is beginning to see load and revenue ramps from large industrial customers and expects that ramp to accelerate during the year, pointing to Micron and Meta as examples.

Grow said construction at Micron’s first fabrication facility continues and that Micron has started ground preparation for a second fab. She also said Meta’s data center has reached the testing and commissioning stage. Beyond these projects, Grow cited interest from “core industries of food processing, manufacturing, distribution, and warehousing,” along with inquiries from additional large customers.

Grow emphasized that Idaho Power’s approach to large load contracting is intended to ensure “growth pays for growth,” and said contract features used in some cases have included:

• Take-or-pay provisions
• Upfront payments
• Credit and security requirements
• Termination or exit payments
• Customized pricing terms and other contractual features

In response to analyst questions about the pace of inbound large load requests and the company’s ability to serve new demand, Grow said the pipeline remains “incredible” and extends into the 2030s, while also noting that between now and 2028 the company is “probably at what are just maximum capacity to actually get work done.” An executive identified in the transcript as “Adam” added that the pipeline is diverse, including data centers, dairy-related activity, biodigesters, manufacturing, and warehousing, and said the company believes it is staying ahead of needs, including by reserving turbines where needed and advancing resource procurement efforts.

Affordability, regulation, and rate case timing

Grow said the company remains focused on affordability and noted that Idaho Power’s rates are “20%–30% lower than the national average.” She said rates have increased 23% over the past decade compared to 41% nationally, adding that the Consumer Price Index increased 36% over the same period.

Grow also discussed recent Idaho legislation that “effectively codified” how the company develops large load contracts, with one change: it established a nine-month deadline for the Idaho Public Utilities Commission’s contract approval process, which Grow said had previously been more open-ended.

On rate case timing, Grow reiterated that Idaho Power is not planning to file a general rate case on June 1 and said it is “unlikely” the company will file one at all this year. In the question-and-answer session, Grow said a June 2027 rate case cadence has been a “traditional” approach but the company will evaluate timing based on how the year develops. CFO Brian Buckham added that factors include when construction work in progress converts to plant-in-service eligible for rate base treatment and the timing and magnitude of large load revenues, which can influence the need for rate cases.

Wildfire mitigation approval and infrastructure build-out

Grow said the Idaho Public Utilities Commission approved Idaho Power’s 2026 wildfire mitigation plan earlier in the month, noting that the commission-approved plan establishes the standard of care in Idaho under the Wildfire Standard of Care Act beginning this year.

On major infrastructure projects, Grow outlined progress on three transmission lines expected to add flexibility and reliability:

• B2H transmission project: expected in service in late 2027; nearly half of access roads and structure pads completed, along with about 200 structures (about 15% of total).
• SWIP-North: received a CPCN from the Idaho Commission; additional authorizations remain in progress, including final construction authorization from the Bureau of Land Management. The contractor plans to break ground in June in Nevada and in September in Idaho, with completion possible as early as 2028.
• Gateway West: Idaho Power and PacifiCorp filed a joint request for a CPCN with the Idaho Commission; a section between Hemingway and Midpoint substations could come online as early as 2028.

Grow said that if the projects remain on track, customers could be served by three new large transmission lines on the system by 2028, which she said would also bring transmission wheeling revenues and market access benefits.

Resource additions, capital outlook, and financing updates

Grow said Idaho Power received a CPCN for a 167 MW company-owned natural gas plant near the existing Bennett Mountain facility and has secured an EPC contractor, targeting an in-service date of summer 2028. She also said the company has filed four CPCNs for two additional natural gas plants: the 222 MW South Hills project (planned online in 2029) and the 430 MW Peregrine project (planned online in 2030). Grow described the gas projects as firm, dispatchable resources intended to address near-term capacity deficits.

Grow also said Idaho Power expects 250 MW of new company-owned battery storage to come online in the current quarter and expects to add 125 MW of third-party-owned solar generation later in the year. She said the company remains on track to complete the conversion of Valmy Unit Two from coal to natural gas before the summer peak this year.

Investor relations manager John Wonderlich reaffirmed key 2026 operating metrics, including full-year O&M expense of $525 million to $535 million and 2026 capital expenditures of $1.3 billion to $1.5 billion. He said hydropower generation guidance was adjusted, with the expected range now 5.5 million to 7.0 million MWh for the year after trimming the top end. Wonderlich said water storage is near or above average across the Snake River Basin, but low snowpack is expected to reduce spring snowmelt supplies; he added that record wet April conditions in the Boise area increased spring streamflows and hydropower production but will not fully offset the lack of winter snowpack.

Buckham said first-quarter net income increased by more than $8 million year over year. He attributed key drivers to higher retail revenues from January rate increases and customer growth (a $23 million benefit), offset in part by lower usage per customer that reduced operating income by $10.7 million due to mild weather. Buckham said industrial use per customer increased notably, partly due to a new large industrial customer ramping usage during the quarter.

Buckham also cited higher fixed cost adjustment revenues of more than $19 million versus the prior-year quarter, driven by updates to the FCA mechanism from the last general rate case combined with lower usage in residential and small commercial classes. He said O&M expenses increased $13.1 million year over year, primarily due to higher wildfire mitigation costs and amortization of previously deferred costs associated with the Jim Bridger plant, with a large portion recovered in rates. Depreciation and amortization rose about $6 million, while non-operating expense increased about $4 million, mainly due to higher interest expense, including interest on a battery tolling agreement finance lease, partially offset by increased AFUDC due to higher construction work in progress.

Buckham said Idaho Power amortized $6.3 million of additional tax credits under the Idaho Earnings Support Mechanism in the first quarter, $13 million less than the first quarter of 2025. He characterized the lower use as a sign the company expects to need less support from the mechanism to reach the floor return on equity level in Idaho, despite an expected higher year-end book equity balance.

On financing, Buckham said the company continues to target a 50/50 capital ratio over the 2026–2030 window and expects to need approximately $2 billion in equity and $2.9 billion in debt. He said in the first quarter the company executed $155 million of forward sales through its ATM program and settled nearly $52 million from prior forward sales. Buckham said that combined with a follow-on offering last year, the company has settled or executed forwards on more than $750 million of its estimated equity need, which he said extends equity needs into 2027. He added that the company has fully used its $300 million ATM and plans to establish a new ATM program in the near term.

Buckham also addressed credit considerations, discussing Moody’s actions referenced by an analyst. He said the company does not issue debt at the holding company level and described Moody’s peer benchmarking rationale, noting a stable outlook and referencing a new downgrade threshold at 12% for Moody’s. He said the company remains focused on maintaining a strong balance sheet and expects credit metrics to improve over time with large load revenues and future rate cases.

Separately, Grow said the company’s previously announced sale of its Oregon service area continues to progress and that the company plans to make filings in the next couple of months with the Oregon and Idaho commissions and FERC seeking approval of the sale.

About IDACORP NYSE: IDA

IDACORP, Inc is a diversified energy holding company headquartered in Boise, Idaho, whose primary subsidiary, Idaho Power Company, operates as a regulated electric utility. Through Idaho Power, the company provides generation, transmission and distribution services to residential, commercial and industrial customers. The company's service territory spans southern Idaho and eastern Oregon, where it serves over half a million customers with a mix of hydroelectric, natural gas, wind and solar generation assets.

Idaho Power's generation portfolio is anchored by a network of hydroelectric facilities along the Snake River system, complemented by natural-gas-fired plants and growing investments in renewable resources.

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