IDACORP, Inc. Announces Second Quarter 2024 Results, Increases Lower-End 2024 Earnings Guidance

Rhea-AI Summary

IDACORP (NYSE: IDA) reported Q2 2024 net income of $89.5 million, or $1.71 per diluted share, up from $68.6 million, or $1.35 per share, in Q2 2023. The company increased its 2024 earnings guidance to $5.30-$5.45 per diluted share. Key factors contributing to the strong results include:

1. Higher customer usage and continued customer growth
2. Rate changes implemented earlier in the year
3. Increased retail revenues per MWh
4. Customer base growth of 2.6% (16,200 new customers)
5. 17% increase in irrigation customer usage

However, these positives were partially offset by higher depreciation expenses and increased O&M costs, including pension-related expenses and wildfire mitigation program costs.

Positive

• Q2 2024 net income increased to $89.5 million from $68.6 million in Q2 2023
• Earnings per diluted share rose to $1.71 from $1.35 year-over-year
• 2024 earnings guidance increased to $5.30-$5.45 per diluted share
• Customer base grew by 2.6% (16,200 new customers) over 12 months
• Retail revenues per MWh increased, boosting operating income by $19.6 million
• Irrigation customer usage increased by 17%

Negative

• Depreciation expense increased by $7.6 million due to increased plant-in-service
• O&M expenses rose by $13.8 million, including $4 million in pension-related costs and $8 million in wildfire mitigation expenses
• Transmission wheeling-related revenues decreased by $2.5 million
• Non-operating expenses increased by $0.4 million due to higher interest on long-term debt

Financial Analyst

IDACORP's Q2 2024 results demonstrate solid financial performance, with net income increasing by $20.9 million to $89.5 million compared to Q2 2023. This 30.5% year-over-year growth is primarily attributed to higher retail revenues per MWh, customer growth and increased usage per customer.

Key financial highlights include:

• Earnings per diluted share rose to $1.71 from $1.35 in Q2 2023.
• Customer base grew by 2.6%, adding approximately 16,200 new customers.
• Retail revenues per MWh increased operating income by $19.6 million.
• Usage per retail customer contributed $6.2 million to operating income.

However, these positive factors were partially offset by increased O&M expenses ($13.8 million) and higher depreciation ($7.6 million). The company's guidance upgrade, raising the lower end of its 2024 EPS forecast to $5.30-$5.45, signals management's confidence in sustained performance.

From an investor's perspective, IDACORP's ability to grow earnings despite inflationary pressures and increased costs is commendable. The company's strategic investments in infrastructure and customer growth are paying off, while its regulatory mechanisms provide some stability to earnings. However, investors should monitor the impact of rising O&M costs, particularly related to pension expenses and wildfire mitigation, which could pressure margins if not fully recovered through rate adjustments.

Utility Industry Expert

IDACORP's Q2 results highlight several industry trends worth noting:

• Customer Growth: The 2.6% increase in customers underscores the robust population growth in IDACORP's service area, particularly in Boise. This trend is likely to continue, providing a stable base for future revenue growth.
• Weather Impact: The 17% increase in irrigation customer usage demonstrates the significant influence of weather on utility performance. Climate variability could lead to more pronounced fluctuations in future results.
• Clean Energy Transition: IDACORP's goal of 100% clean energy by 2045 aligns with industry trends. The company's reliance on hydropower provides a strong foundation, but future investments in other renewable sources and grid modernization will be crucial.
• Regulatory Environment: The 2023 Settlement Stipulation, which allowed for base rate increases and changes to regulatory mechanisms, demonstrates a constructive regulatory relationship. This is vital for utilities undertaking significant capital investments.
• Wildfire Mitigation: The $8 million increase in wildfire mitigation and related insurance expenses reflects a growing industry concern, particularly in western states. This trend is likely to continue, potentially pressuring costs across the sector.

While IDACORP's performance is solid, the utility sector faces challenges including rising interest rates, inflationary pressures and the need for substantial grid investments. IDACORP's strong hydropower base and growing service area position it well, but investors should watch for execution risks in its clean energy transition and the ongoing impact of O&M cost increases.

Market Research Analyst

IDACORP's Q2 results offer valuable insights into broader market trends:

• Regional Economic Growth: The 2.6% customer growth rate suggests robust economic activity in IDACORP's service area, particularly in Boise. This aligns with broader trends of population shifts to mid-sized cities in the western U.S.
• Energy Market Dynamics: The decrease in net power supply expenses due to more moderate wholesale natural gas and power market prices indicates a potential easing of energy market pressures that were prevalent in 2023.
• Infrastructure Investment: IDACORP's increased capital expenditures, reflected in higher depreciation expenses, align with a nationwide trend of utilities investing heavily in grid modernization and resilience.
• ESG Focus: The company's commitment to 100% clean energy by 2045 and increased spending on wildfire mitigation reflect growing investor and regulatory emphasis on environmental and risk management factors in the utility sector.
• Interest Rate Impact: Higher interest expenses on long-term debt highlight the broader market challenge of rising interest rates, which could impact capital-intensive industries like utilities.

For investors, IDACORP represents exposure to a growing regional economy with a utility that's navigating the clean energy transition from a position of strength (hydropower base). However, the company's performance also reflects sector-wide challenges such as rising costs and the need for significant capital investment. The stock's attractiveness may depend on an investor's view of the company's ability to manage these industry-wide pressures while capitalizing on its regional growth opportunities.

BOISE, Idaho--(BUSINESS WIRE)-- IDACORP, Inc. (NYSE: IDA) reported second quarter 2024 net income attributable to IDACORP of $89.5 million, or $1.71 per diluted share, compared with $68.6 million, or $1.35 per diluted share, in the second quarter of 2023.

“Higher than expected customer usage in the second quarter, continued customer growth, and rate changes earlier this year contributed to strong results in the second quarter," said IDACORP President and Chief Executive Officer Lisa Grow. "As expected, higher depreciation from our ongoing system investments to meet customer and load growth partially offset those factors.”

IDACORP is increasing the lower-end of its previously reported full-year 2024 earnings guidance to the range of $5.30 to $5.45 per diluted share, with the expectation that Idaho Power will use between $35 and $50 million of additional tax credits available under the Idaho earnings support regulatory mechanism in 2024. Approximately $25 million of those additional tax credits relate to expected amortization of incremental tax credits generated from Idaho Power's investment in 2023 battery storage projects, as contemplated in the settlement stipulation for Idaho Power's 2023 Idaho general rate case (2023 Settlement Stipulation) approved by the Idaho Public Utilities Commission in December 2023. The earnings guidance also assumes normal weather conditions and normal power supply expenses through the remainder of the year.

Summary of Financial Results

The following is a summary of net income attributable to IDACORP and IDACORP's earnings per diluted share for the three and six months ended June 30, 2024 and 2023 (in thousands, except earnings per share amounts):

		Three months ended June 30,						Six months ended June 30,
		2024			2023			2024			2023
Net income attributable to IDACORP, Inc.		$	89,520		$	68,574		$	137,693		$	124,672
Weighted average outstanding shares – diluted			52,236			50,758			51,519			50,741
IDACORP, Inc. earnings per diluted share		$	1.71		$	1.35		$	2.67		$	2.46

The table below provides a reconciliation of net income attributable to IDACORP for the three and six months ended June 30, 2024, from the same periods in 2023 (items are in millions and are before related income tax impact unless otherwise noted):

		Three months ended						Six months ended
Net income attributable to IDACORP, Inc. - June 30, 2023					$	68.6					$	124.7
Increase (decrease) in Idaho Power net income:
Retail revenues per megawatt-hour (MWh), net of associated power supply costs and power cost adjustment and Idaho Fixed Cost Adjustment (FCA) mechanisms		19.6						24.4
Customer growth, net of associated power supply costs and power cost adjustment mechanisms		5.1						9.8
Usage per retail customer, net of associated power supply costs and power cost adjustment mechanisms		6.2						(3.8	)
Transmission wheeling-related revenues		(2.5	)					(3.5	)
Other operations and maintenance (O&M) expenses		(13.8	)					(27.6	)
Depreciation expense		(7.6	)					(16.2	)
Other changes in operating revenues and expenses, net		13.9						18.6
Increase in Idaho Power operating income		20.9						1.7
Non-operating expense, net		(0.4	)					(2.3	)
Additional accumulated deferred investment tax credits (ADITC) amortization		3.8						12.5
Income tax expense, excluding additional ADITC amortization		(4.0	)					—
Total increase in Idaho Power net income						20.3						11.9
Other IDACORP changes (net of tax)						0.6						1.1
Net income attributable to IDACORP, Inc. - June 30, 2024					$	89.5					$	137.7

Net Income - Second Quarter 2024

IDACORP's net income increased $20.9 million for the second quarter of 2024 compared with the second quarter of 2023, due primarily to higher net income at Idaho Power.

The net increase in retail revenues per MWh, net of associated power supply costs and power cost adjustment and FCA mechanisms, increased operating income by $19.6 million in the second quarter of 2024 compared with the second quarter of 2023. This benefit was due primarily to an overall increase in Idaho base rates, effective January 1, 2024, per the terms of the 2023 Settlement Stipulation.

At Idaho Power, customer growth increased operating income by $5.1 million in the second quarter of 2024 compared with the second quarter of 2023, as the number of Idaho Power customers grew by approximately 16,200, or 2.6 percent, during the twelve months ended June 30, 2024. Usage per retail customer increased operating income by $6.2 million in the second quarter of 2024 compared with the second quarter of 2023. While there was an increase in usage per customer for all retail customer classes, usage per irrigation customer increased most significantly at 17 percent, as higher temperatures compared with last year's more moderate second quarter weather led irrigation customers to run irrigation pumps more frequently.

Transmission wheeling-related revenues, net of PCA impacts, decreased $2.5 million during the second quarter of 2024 compared with the second quarter of 2023. This decrease was due primarily to the inclusion of financial settlement of transmission line losses in the PCA mechanism, effective January 1, 2024, as approved in the 2023 Settlement Stipulation, resulting in a smaller contribution of those revenues to net income compared with the second quarter of 2023 when the financial settlement of transmission line losses was not subject to the PCA mechanism.

Total other O&M expenses in the second quarter of 2024 were $13.8 million higher than in the second quarter of 2023, primarily related to approximately $4 million of increased pension-related expenses and approximately $8 million of increase in wildfire mitigation program and related insurance expenses. Both of these increases in expenses were partially offset by increases in retail revenues, as more costs are now recovered in base rates pursuant to the 2023 Settlement Stipulation. However, revenues related to these increased costs are not collected at the same rate that the expenses are incurred in the interim periods throughout the year due to the impact of volume-based rates and associated revenues. Inflationary pressures on labor-related costs also contributed to the increase in other O&M expenses.

Depreciation expense increased $7.6 million in the second quarter of 2024 compared with the second quarter of 2023 due primarily to an increase in plant-in-service.

Other changes in operating revenues and expenses, net, increased operating income by $13.9 million in the second quarter of 2024 compared with the second quarter of 2023, due primarily to the timing of recording and adjusting regulatory accruals and deferrals. In addition, a decrease in net power supply expenses that were not deferred for future recovery in rates through Idaho Power's power cost adjustment mechanisms increased operating revenues and expenses, net, compared with the same period in 2023. More moderate wholesale natural gas and power market prices in the western United States and increased wholesale energy sales decreased Idaho Power's net power supply expenses in the second quarter of 2024 compared with the second quarter of 2023.

Non-operating expense, net, increased $0.4 million in the second quarter of 2024 compared with the second quarter of 2023. Interest expense on long-term debt was higher in the second quarter of 2024 compared with the second quarter of 2023, due primarily to an increase in long-term debt. This increase was partially offset by an increase in allowance for funds used during construction (AFUDC), as the average construction work in progress balance was higher. Also, interest income increased due to higher interest rates and higher average cash and cash equivalent balances.

The increase in income tax expense was principally the result of higher income before income taxes, partially offset by an increase in additional ADITC amortization. Based on Idaho Power's current expectations of full-year 2024 results, Idaho Power recorded $7.5 million of additional ADITC amortization under its Idaho regulatory settlement stipulation during the second quarter of 2024, but only recorded $3.75 million of additional ADITC amortization during the same period in 2023.

Net Income - Year-To-Date 2024

IDACORP's net income increased $13.0 million for the first six months of 2024 compared with the first six months of 2023, due primarily to higher net income at Idaho Power.

The net increase in retail revenues per MWh, net of associated power supply costs and power cost adjustment and FCA mechanisms, increased operating income by $24.4 million in the first six months of 2024 compared with the first six months of 2023. This benefit was due primarily to an overall increase in Idaho base rates, effective January 1, 2024, per the terms of the 2023 Settlement Stipulation.

At Idaho Power, customer growth increased operating income by $9.8 million in the first six months of 2024 compared with the first six months of 2023. The benefit from customer growth was partially offset by a decrease in usage per retail customer of $3.8 million in the first six months of 2024 compared with the first six months of 2023. While there was a reduction in usage per customer for most retail customer classes, usage per residential customer decreased most significantly, as more moderate temperatures from January through May 2024 led residential customers to use less energy for heating purposes. However, warmer weather in June 2024 led to an increase in energy usage per residential customer for cooling purposes, as well as an increase in energy usage per irrigation customer, which partially offset the decrease in usage per residential customer from January through May 2024.

Transmission wheeling-related revenues, net of PCA impacts, decreased $3.5 million during the first six months of 2024 compared with the first six months of 2023. Total wheeling revenues earned during the first six months of 2024 increased 21 percent compared with the same period of 2023 due primarily to an increase in wheeling volumes. However, effective January 1, 2024, financial settlement of transmission line losses are subject to the PCA mechanism, as approved in the 2023 Settlement Stipulation, resulting in a smaller contribution of those revenues to net income compared with the first six months of 2023 when the financial settlement of transmission line losses was not subject to the PCA mechanism.

Total other O&M expenses in the first six months of 2024 were $27.6 million higher than the first six months of 2023, primarily related to approximately $9 million of increased pension-related expenses and an approximately $16 million increase in wildfire mitigation program and related insurance expenses. Both of these increases in expenses are partially offset by increases in retail revenues, as more costs are now recovered in base rates pursuant to the 2023 Settlement Stipulation; however, revenues related to these increased costs are not collected at the same rate that the expenses are incurred in the interim periods throughout the year. On a full-year basis for 2024, Idaho Power expects other O&M expenses related to its employee pension plans and its wildfire mitigation program and related insurance to increase approximately $18 million and $30 million, respectively, compared with 2023, as more costs are now recovered in base rates pursuant to the 2023 Settlement Stipulation. Inflationary pressures on labor-related costs also contributed to the increase in other O&M expenses.

Depreciation expense increased $16.2 million for the first half of 2024 compared with the first half of 2023 due primarily to an increase in plant-in-service.

Other changes in operating revenues and expenses, net, increased operating income by $18.6 million in the first six months of 2024 compared with the first six months of 2023, due primarily to the timing of recording and adjusting of regulatory accruals and deferrals. In addition, a decrease in net power supply expenses that were not deferred for future recovery in rates through Idaho Power's power cost adjustment mechanisms increased operating revenues and expenses, net, compared to the same period in 2023. More moderate wholesale natural gas and power market prices in the western United States and increased wholesale energy sales decreased Idaho Power's net power supply expenses in the first six months of 2024 compared to the first six months of 2023.

Non-operating expense, net, increased $2.3 million in the first six months of 2024 compared with the first six months of 2023. Interest expense on long-term debt was higher in the first six months of 2024 compared with the first six months of 2023, due primarily to an increase in long-term debt. This increase was partially offset by an increase in AFUDC, as the average construction work in progress balance was higher. Also, interest income increased due to higher interest rates and higher average cash and cash equivalent balances.

Income tax expense in the first six months of 2024 was consistent with the first six months of 2023 as increased taxes from higher pre-tax income was offset by $20.0 million of additional ADITC amortization. Idaho Power recorded $7.5 million of additional ADITC amortization during the same period in 2023.

2024 Annual Earnings Guidance and Key Operating and Financial Metrics

IDACORP is increasing the lower-end of its earnings guidance estimate for 2024 and adjusting its expectation for the use of ADITCs. The 2024 guidance incorporates all of the key operating and financial assumptions listed in the table that follows (in millions, except per share amounts):

		Current(1)		Previous(2)
IDACORP Earnings Guidance (per diluted share)		$ 5.30 – $ 5.45		$ 5.25 – $ 5.45
Idaho Power Additional ADITCs(3)		$ 35 – $ 50		$ 35 – $ 60
Idaho Power O&M Expense(4)		No change		$ 440 – $ 450
Idaho Power Capital Expenditures, Excluding AFUDC		No change		$ 925 – $ 975
Idaho Power Hydropower Generation (MWh)		7.0 – 8.0		6.5 – 8.0

(1)		As of August 1, 2024. Assumes normal weather conditions and normal power supply expenses through the remainder of 2024.
(2)		As of May 2, 2024, the date of filing IDACORP's and Idaho Power's Quarterly Report on Form 10-Q for the quarter ended March 31, 2024.
(3)		Approximately $25 million of additional ADITCs relates to amortization of incremental tax credits generated from Idaho Power's investment in 2023 battery storage projects, as contemplated in the 2023 Settlement Stipulation, effective January 1, 2024. The 2023 Settlement Stipulation removed the existing $25 million annual cap on the amount of accelerated amortization of ADITCs.
(4)		Approximately $48 million of the expected increase in other O&M expense relates to pension and wildfire mitigation plan expenses, approved for recovery in the 2023 Settlement Stipulation effective January 1, 2024. The increased other O&M expense is expected to be offset by collection through tariff-based retail revenues.

More detailed financial and operational information is provided in IDACORP’s Quarterly Report on Form 10-Q filed today with the U.S. Securities and Exchange Commission, which is also available for review on IDACORP’s website at www.idacorpinc.com.

Web Cast / Conference Call

IDACORP will hold an analyst conference call today at 2:30 p.m. Mountain Time (4:30 p.m. Eastern Time). All parties interested in listening may do so through a live webcast on IDACORP's website (www.idacorpinc.com), or by calling (888) 596-4244 for listen-only mode. The passcode for the call is 2921833. The conference call logistics are also posted on IDACORP's website. Slides will be included during the conference call. To access the slide deck, please visit www.idacorpinc.com/investor-relations. A replay of the conference call will be available on the company's website for 12 months and will be available shortly after the call.

Background Information

IDACORP, Inc. (NYSE: IDA), Boise, Idaho-based and formed in 1998, is a holding company comprised of Idaho Power, a regulated electric utility; IDACORP Financial, an investor in affordable housing and other real estate tax credit investments; and Ida-West Energy, an operator of small hydroelectric generation projects that satisfy the requirements of the Public Utility Regulatory Policies Act of 1978. Idaho Power, headquartered in vibrant and fast-growing Boise, Idaho, has been a locally operated energy company since 1916. Today, it serves a 24,000-square-mile service area in Idaho and Oregon. Idaho Power’s goal to provide 100% clean energy by 2045 builds on its long history as a clean-energy leader that provides reliable service at affordable prices. With 17 low-cost hydropower projects at the core of its diverse energy mix, Idaho Power’s residential, business, and agricultural customers pay among the nation's lowest prices for electricity. Its 2,100 employees proudly serve more than 640,000 customers with a culture of safety first, integrity always, and respect for all. To learn more about IDACORP or Idaho Power, visit www.idacorpinc.com or www.idahopower.com.

Forward-Looking Statements

In addition to the historical information contained in this press release, this press release contains (and oral communications made by IDACORP, Inc. (IDACORP) and Idaho Power Company (Idaho Power) may contain) statements that relate to future events and expectations, such as statements regarding projected or future financial performance, power generation, cash flows, capital expenditures, regulatory filings, dividends, capital structure or ratios, load forecasts, strategic goals, challenges, objectives, and plans for future operations. Such statements constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, or future events or performance, often, but not always, through the use of words or phrases such as "anticipates," "believes," "could," "estimates," "expects," "intends," "potential," "plans," "predicts," "preliminary," "projects," "targets," "may," "may result," "may continue," or similar expressions, are not statements of historical facts and may be forward-looking. Forward-looking statements are not guarantees of future performance, involve estimates, assumptions, risks, and uncertainties, and may differ materially from actual results, performance, or outcomes. In addition to any assumptions and other factors and matters referred to specifically in connection with such forward-looking statements, factors that could cause actual results or outcomes to differ materially from those contained in forward-looking statements include those factors set forth in this press release, IDACORP's and Idaho Power's most recent Annual Report on Form 10-K, particularly Part I, Item 1A - "Risk Factors" and Part II, Item 7 - "Management’s Discussion and Analysis of Financial Condition and Results of Operations" of that report, subsequent reports filed by IDACORP and Idaho Power with the U.S. Securities and Exchange Commission (SEC), and the following important factors: (a) decisions by the Idaho and Oregon public utilities commissions and the Federal Energy Regulatory Commission that impact Idaho Power's ability to recover costs and earn a return on investment; (b) changes to or the elimination of Idaho Power's regulatory cost recovery mechanisms; (c) expenses and risks associated with capital expenditures for, and the permitting and construction of, utility infrastructure projects that Idaho Power may be unable to complete, are delayed, or that may not be deemed prudent by regulators for cost recovery or return on investment; (d) expenses and risks associated with supplier and contractor delays and failure to satisfy project quality and performance standards on utility infrastructure projects, and the potential impacts of those delays and failures on Idaho Power's ability to serve customers; (e) power demand exceeding supply, and the rapid addition of new industrial and commercial customer load and the volatility of such new load demand, resulting in increased risks and costs for purchasing energy and capacity in the market or acquiring or constructing additional capacity and energy resources; (f) impacts of economic conditions, including an inflationary or recessionary environment and increased interest rates, on items such as operations and capital investments, supply costs and delivery delays, supply scarcity and shortages, population growth or decline in Idaho Power's service area, changes in customer demand for electricity, revenue from sales of excess power, credit quality of counterparties and suppliers and their ability to meet financial and operational commitments, and collection of receivables; (g) changes in residential, commercial, and industrial growth and demographic patterns within Idaho Power's service area, and the associated impacts on loads and load growth; (h) employee workforce factors, including the operational and financial costs of unionization or the attempt to unionize all or part of the companies' workforce, the cost and ability to attract and retain skilled workers and third-party contractors and suppliers, the cost of living and the related impact on recruiting employees, and the ability to adjust to fluctuations in labor costs; (i) changes in, failure to comply with, and costs of compliance with laws, regulations, policies, orders, and licenses, which may result in penalties and fines, increase compliance and operational costs, and impact recovery associated with increased costs through rates; (j) abnormal or severe weather conditions (including conditions and events associated with climate change), wildfires, droughts, earthquakes, and other natural phenomena and natural disasters, which affect customer sales, hydropower generation, repair costs, service interruptions, liability for damage caused by utility property, and the availability and cost of fuel for generation plants or purchased power to serve customers; (k) advancement and adoption of self-generation, energy storage, energy efficiency, alternative energy sources, and other technologies that may reduce Idaho Power's sale or delivery of electric power or introduce operational vulnerabilities to the power grid; (l) variable hydrological conditions and over-appropriation of surface and groundwater in the Snake River Basin, which may impact the amount of power generated by Idaho Power's hydropower facilities and power supply costs; (m) ability to acquire equipment, materials, fuel, power, and transmission capacity on reasonable terms and prices, particularly in the event of unanticipated or abnormally high resource demands, price volatility, lack of physical availability, transportation constraints, outages due to maintenance or repairs to generation or transmission facilities, disruptions in the supply chain, or reduced credit quality or lack of counterparty and supplier credit; (n) disruptions or outages of Idaho Power's generation or transmission systems or of any interconnected transmission systems, which can result in liability for Idaho Power, increased power supply costs and repair expenses, and reduced revenues; (o) accidents, electrical contacts, fires (either affecting or caused by Idaho Power facilities or infrastructure), explosions, infrastructure failures, general system damage or dysfunction, and other unplanned events that may occur while operating and maintaining assets, which can cause unplanned outages; reduce generating output; damage company assets, operations, or reputation; subject Idaho Power to third-party claims for property damage, personal injury, or loss of life; or result in the imposition of fines and penalties; (p) acts or threats of terrorism, acts of war, social unrest, cyber or physical security attacks, and other malicious acts of individuals or groups seeking to disrupt Idaho Power's operations or the electric power grid or compromise data, or the disruption or damage to the companies’ business, operations, or reputation resulting from such events; (q) increased costs associated with purchases of power mandated by the Public Utility Regulatory Policies Act of 1978 from renewable energy sources; (r) Idaho Power's concentration in one industry and one region, and the resulting exposure to regional economic conditions and regional legislation and regulation; (s) unaligned goals and positions with co-owners of Idaho Power’s generation and transmission assets; (t) changes in tax laws or related regulations or interpretations of applicable laws or regulations by federal, state, or local taxing jurisdictions, and the availability of tax credits; (u) inability to timely obtain and the cost of obtaining and complying with required governmental permits and approvals, licenses, rights-of-way, and siting for transmission and generation projects and hydropower facilities; (v) ability to obtain debt and equity financing or refinance existing debt when necessary and on satisfactory terms, which can be affected by factors such as credit ratings, reputational harm, volatility or disruptions in the financial markets, interest rates, decisions by the Idaho, Oregon, or Wyoming public utility commissions, and the companies' past or projected financial performance; (w) ability to enter into financial and physical commodity hedges with creditworthy counterparties to manage price and commodity risk for fuel, power, and transmission, and the failure of any such risk management and hedging strategies to work as intended, and the potential losses the companies may incur on those hedges, which can be affected by factors such as the volume of hedging transactions and degree of price volatility; (x) changes in actuarial assumptions, changes in interest rates, increasing health care costs, and the actual and projected return on plan assets for pension and other postretirement plans, which can affect future pension and other postretirement plan funding obligations, costs, and liabilities and the companies' cash flows; (y) remediation costs associated with planned cessation of coal-fired operations at Idaho Power's co-owned coal plants and conversion of the plants to natural gas; (z) ability to continue to pay dividends and achieve target dividend payout ratios based on financial performance and capital requirements, and in light of credit rating considerations, contractual covenants and restrictions, and regulatory limitations; (aa) adoption of or changes in accounting policies and principles, changes in accounting estimates, and new SEC or New York Stock Exchange requirements or new interpretations of existing requirements; and (ab) changing market dynamics due to the emergence of day ahead or other energy and transmission markets in the western United States. Any forward-looking statement speaks only as of the date on which such statement is made. New factors emerge from time to time and it is not possible for the companies to predict all such factors, nor can they assess the impact of any such factor on the business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. IDACORP and Idaho Power disclaim any obligation to update publicly any forward-looking information, whether in response to new information, future events, or otherwise, except as required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240801198553/en/

Investor and Analyst Contact

Amy I. Shaw

VP of Finance, Compliance & Risk

Phone: (208) 388-5611

AShaw@idahopower.com

Media Contact

Jordan Rodriguez

Corporate Communications

Phone: (208) 388-2460

JRodriguez@idahopower.com

Source: IDACORP, Inc.

FAQ

What was IDACORP's Q2 2024 net income and how does it compare to Q2 2023?

IDACORP's Q2 2024 net income was $89.5 million ($1.71 per diluted share), compared to $68.6 million ($1.35 per diluted share) in Q2 2023, representing a significant increase.

Has IDACORP (IDA) updated its 2024 earnings guidance?

Yes, IDACORP has increased the lower end of its 2024 earnings guidance to a range of $5.30 to $5.45 per diluted share.

What factors contributed to IDACORP's (IDA) improved Q2 2024 performance?

Key factors included higher customer usage, continued customer growth, rate changes, increased retail revenues per MWh, and a 17% increase in irrigation customer usage.

How much did IDACORP's (IDA) customer base grow in the past year?

IDACORP's customer base grew by approximately 16,200 customers, or 2.6%, during the twelve months ended June 30, 2024.

What were the main challenges faced by IDACORP (IDA) in Q2 2024?

Main challenges included increased depreciation expenses, higher O&M costs (particularly pension-related and wildfire mitigation expenses), and decreased transmission wheeling-related revenues.